Eskom power grid/Bloomberg

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Eskom's crisis leaves no time for unbundling plan, says Goldman

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South Africa’s Eskom Holdings is focusing on trying to avoid implementing power cuts through the year, as it attempts to fix ageing power plants and defective new units.

Sunday 14, April 2019

Bloomberg) --South African President Cyril Ramaphosa’s plan to split the state-owned power utility into generation, distribution and transmission divisions will take longer than the government has to revive the business, according to Goldman Sachs Group.

Ramaphosa has rolled out a ZAR 69 billion ($5 billion) bailout for Eskom over the next three years and a plan to split the business into three.

Colin Coleman, the CEO for Goldman’s sub-Saharan Africa, said, “We have a crisis that cannot wait three or four years of market restructuring, as we’ve seen from overseas markets, you need real transactional capabilities to unbundle even less complicated structures than Eskom successfully.”

Goldman in 2015 informally advised South Africa’s National Treasury on the sale of state assets to raise money for Eskom when its debt, which has grown to more than ZAR 419 billion, was only about half that amount, a person with knowledge of the matter said at the time.

 

TAGS : Eskom, Goldman Sachs Group, President Cyril Ramaphosa

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