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Created before Nov 2016
Last update: 2016-07-04 21:26:55
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Eskom is the world's eleventh-largest power utility in terms of generating capacity and ranks ninth in terms of sales. In 2011 it had an installed generating capacity of 44,145 MW, of which 85% was from coal fuelled power plants and 4% from its nuclear plant. Founded in 1923, Eskom generates, transports and distributes approximately 95% of South Africa's electricity and approximately 45% of the electricity consumed in the whole African continent.
The Information Officer Eskom
PO Box 1091 Johannesburg 2001
Michael Godsell |
Eskom is wholly owned by the South African government.
Incidents at Koeberg Like all nuclear power plants, Koeberg has seen its share of incidents. In December 2005 a foreign object caused damage to one of the reactors' generators. It had been left inside by poorly trained and inadequately supervised workers. A similar incident happened in February 2006 when one of the reactors was forced to shut down causing blackouts on the Western Cape. The then Minister of Trade and Industry blamed an organisation called the Imam Haroon Brigade. The Brigade claimed responsibility for the sabotage. Both the minister and the Brigade were guilty of storytelling: there was no sabotage and the shutdown had been caused by human error.
Likely conflict of interest behind coal contracts and projects in South Africa The 355-page State of Capture report from South Africa’s Public Protector reveals details of favorable decisions by state utility Eskom to award huge coal supply contracts to Tegeta Exploration and Resources, a company co-owned by South African President Jacob Zuma’s son, Duduzane, and the Gupta family, close friends of President Zuma. The revelations add new fuel to longstanding suspicion about the role of government leaders and relatives of President Zuma with ties to the coal industry in paving the way for new coal mining and new coal-fired power plants in the face of serious water use, pollution and economic concerns. According to a Circle of Blue investigative report, “the ANC operates an investment arm, called Chancellor House, that owned an investment stake in Hitachi, which won the multi-billion dollar contracts to build the boilers for the two giant and unfinished Medupi and Kusile coal-fired power plants. Chancellor House also has a financial stake in the proposed 1,050-megawatt coal-fired Colenso power plant.” (source corruptionincoal.org).
multilateral development banks
In the annual report from 2014 Eskom mentions the financing sources that it is planning to use in the coming period. Most of these financing sources are similar to the financing sources previously used by Eskom. The expectation is therefore that the financial institutions, credit agencies and multilaterals mentioned on this profile will be involved in providing new loans or assisting with new bond issuances.
Furthermore, Eskom explores new opportunities from alternative funding sources and products, such as Islamic (Sukuk) funding, preference shares, syndicated loans and project based funding. These options are considered to complement the current funding sources. Also for these options, the financial institutions, credit agencies and multilaterals mentioned above are the most obvious funding partners.