SA’s Finance minister, Godongwana says the government’s Eskom debt takeover will include conditions (like gas and nuclear).
Recently, news broke that the country’s treasury had agreed to take over some of Eskom’s debts. According to recent reports, Finance minister, Godongwana has announced that the debt takeover will come with some conditions.
News24 reports that the Minister shared that the government’s “commitment to take on between a third and two-thirds of Eskom’s R400 billion debt will come with conditions.” This includes that utility will invest in gas and nuclear power. Godongwana addressed the South African Chamber of Commerce and Industry (Sacci) on Monday and stated that the country needs more reliable power sources, including gas and nuclear.
He shared that the conditions will include bringing back “old reliable technologies” to the country’s energy mix. He said, “When I’m saying I’m going to take the debt, I’m going to have conditions precedent, which will make sure that Eskom makes certain undertakings before I take the debt,”
News 24 reports that the SA government said in the medium-term budget policy statement that it planned to take over up to two-thirds of the utility’s R400 billion debt. They are still deliberating with Eskom’s lenders on how to make the debt transfer. The finance minister has shared that the government has no choice but to take over Eskom’s debts. He said, “I don’t have a choice. I’m between a rock and a hard place. If Eskom defaults, I’ve provided guarantees to Eskom of almost R350 billion,”
