Eskom May Need More Bailouts by End-March, says South African Treasury

CAPE TOWN – The South African government may be forced to inject more money into state power firm Eskom by the end of March next year, should the struggling utility fail to meet its borrowing plan, a National Treasury presentation to parliament said on Wednesday.

Electricity pylons carrying power from Koeberg nuclear power plant are seen in Cape Town, South Africa July 11, 2018. Picture taken July 11, 2018. REUTERS/Sumaya Hisham

Treasury has already earmarked 59 billion rand ($3.9 billion) to Eskom over the next two financial years as part of a special appropriation bill, with 26 billion rand allocated until the end of March 2020.

“Failure to execute its funding plan may result in Eskom experiencing liquidity shortfalls at 31 March 2020 and require additional funding in addition to funding provided through the Special Appropriation Bill,” National Treasury’s director general, Dondo Mogajane, told lawmakers.

(Reporting by Wendell Roelf; Editing by Alexander Winning)