as you may be aware, Cabinet approved a package to support a strong and
sustainable Eskom to ensure that the energy security of the country is
maintained, as well as supporting GDP growth. This package was based on
recommendations from an Inter-Ministerial Committee (IMC) comprising of the
Ministers of Finance, Energy, Cooperative Governance and Traditional Affairs
and myself, which reviewed an extensive set of options available to ensure
energy security. The package is a combination of tariff adjustment which the
Regulator will consider through its regulatory process, cost containment by
Eskom and an equity injection which the Minister of Finance will give more
detail in his Medium-Term Budget Policy Statement in October. It is also clear
that a discussion on the long-term structure of the energy industry and the
role of Eskom is now more pronounced.
Chairperson, It is the IMC’s view that this package should also assist Eskom to
continue and complete the construction of the new power plants.
this regard chairperson, in 99 days from today, Eskom will synchronise the
first of Medupi’s six units on 24 December. I was able to witness myself the
progress that has been made in the construction of that power plant when I
visited the site this past weekend. I must say that I was amazed at the work that
has gone into the project and that South Africa is constructing what would be
one of the largest power plants in the world.
at the vast area the project covers and at structures as tall as the Carlton
Centre in Johannesburg, it is clear that there is a giant in the making,
whereas seven years ago there was nothing. That’s exciting.
is exciting because Medupi and indeed Eskom’s bigger electricity capacity
expansion programme will restore South Africa to a situation of secure
electricity supply within the next few years. And it is exciting because these
projects are bringing significant economic and socio-economic benefits to our
country at a time when we need it dearly.
is estimated that Medupi alone will grow South Africa’s gross domestic product
by about 0.35% per year.
creation and skills development have occurred on an enormous scale in this
area: close to 14 000 people are coming through the gates to work at the
construction site every day. Jobs have also been created in the development of
supporting infrastructure, including the large new Grootegeluk coal mine, as
well as roads, housing and sewage works construction.
is expected to boost Lephalale’s economy by about 95% a year. Just looking at
the period from April 2013 to date, local suppliers to the Lephalale area have
benefited substantially, having won 12 out of 22 contracts and 100 out of 167
there has been a significant effort by Eskom and its contractors through the
Medupi Legacy Programme to address the surrounding community’s immediate
socio-economic needs including health, education, skills and enterprise
opportunities and general infrastructure development.
am aware that Medupi has had challenges and I’ve been told that there is a long
way to go before the whole power station is completed. My Department will
follow the progress keenly and I
expect that Eskom would have learnt invaluable lessons in tackling future mega
will be some time before South Africa’s energy shortages are a thing of the
past. Until then and even after that, we should all be aware of our shared
responsibility in ensuring not only sustainable energy supply but also
sustainable energy consumption
conclusion, I would like to say Eskom has turned the corner with Medupi and I
can confidently say that the countdown has officially started.
For all media
enquiries contact Mr Colin Cruywagen on 082 377 9916 or email@example.com