Eskom Could Sell Stake in Kusile Power Plant

12 May 2010 (Last Updated May 12th, 2010 18:30)

South African state utility Eskom could sell a majority stake in its largest power project and issue international bonds by August as it seeks funding for expansion to avoid blackouts. Eskom finance director Paul O’Flaherty told Bloomberg the South African utility could give up control

South African state utility Eskom could sell a majority stake in its largest power project and issue international bonds by August as it seeks funding for expansion to avoid blackouts.

Eskom finance director Paul O’Flaherty told Bloomberg the South African utility could give up control of its planned ZAR142bn ($19bn) Kusile coal-fired plant, if a majority stake is necessary to attract investors.

The state utility may also offer bonds to foreign investors to fund a portion worth ZAR90bn ($12bn) to cover committed capital expenditure, O’Flaherty said.

The firm said it requires permission from its board to sell a controlling stake as it currently only has approval to offer a minority holding.

At present, Eskom supplies 95% of South Africa’s power and faces a ZAR190bn ($25bn) shortfall over the next seven years for developing power plants.