South African power utility Eskom has received R17.7 billion ($1.3 billion) of planned financial support from the country’s National Treasury, according to public enterprises minister Pravin Gordhan.
The transfer, which is part of a R23 billion of support pledged by the government for its current fiscal year, was approved by finance minister Tito Mboweni on April 2, Gordhan said in a text message.
Eskom is saddled with R419 billion of debt and isn’t selling enough power to cover its interest payments and operating costs, a legacy of years of mismanagement and cost overruns on new plants. The government said in February that it will support the state-owned utility with a R69 billion cash injection over the next three years.
Johannesburg-based Eskom needed the funds to be transferred as quickly as possible to ensure its financial stability, Public Enterprises spokesman Adrian Lackay said by phone from the city.