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SA reportedly considers special purpose vehicle for Eskom

As part of utility’s restructuring.

South Africa is considering the creation of a special-purpose vehicle as part of a restructuring of the country’s embattled state-owned power utility, which has almost R500 billion of debt, Business Day reported.

The vehicle would take over a large portion of Eskom’s debt and raise concessional financing on the back of accelerated climate-change commitments, the Johannesburg-based newspaper said, without saying where it got the information.

The proposed special-purpose vehicle would be owned by South Africa’s National Treasury and would have the advantage of being able to raise blended finance, which could include concessional climate change financing from global development financing agencies, Business Day said.

Eskom has been described as the biggest threat to South Africa’s economy by Goldman Sachs Group.

Read: Goldman says Eskom’s crisis leaves no time for unbundling plan

© 2019 Bloomberg L.P

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We need to know where the rescue package is coming from before commenting.
Where is the Chinese bailout?? Interesting that this loan or even talks about it seems to have gone away…
and what’s happening to those that robbed this SOE into a position of insolvency?
More info and action needed before confidence can be restored. In my opinion.

This is classic ANC. Avoid the problem by deflecting and setting up a new mechanism,thus blowing more billions.

If Koeberg goes into nuclear meltdown they would rather rename it than deal with it.

The current Eskom executive and board are not up to the task so introduce a new vehicle (consultants) which in six months will need its own consultants.

End of comments.


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