Kusile plant sets Eskom back a whopping R36 billion for construction

Kusile plant sets Eskom back a whopping R36 billion for construction

- Eskom is feeling shaky after being sent a R36 billion bill for construction work on Kusile power plant

- The reason that the bill is so high has been put down to “unforeseen costs”

- Earlier this year, it was announced that Eskom would be receiving an almost R70 billion bailout from the government

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State-owned power utility, Eskom, has recently been floored by a massive bill for the Kusile power plant.

Construction on the power unit will set Eskom back at least R36 billion.

Despite Kusile being one of the most modern plants in South Africa, the unit has continuously presented problems for Eskom.

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According to The South African, the bloated bill for Kusile is due to “unforeseen costs” that were racked up during construction.

While the R36 billion to be paid by the power utility is not an unusual amount for work on this kind of scale, the bill is bad news for Eskom’s dire financial status.

It also hasn’t been ruled out that some of this money may have found its way into the back pockets of corrupt officials.

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On top of this, construction of the plant has come under scrutiny for shoddy engineering.

Briefly.co.za reported earlier this year that the National Treasury has allocated funds to help Eskom stay afloat financially.

This amount is meant to be used over a period of 3 years, but the recent bill for the Kusile power plant could decimate half of this emergency funding, even before 2019 is over, Briefly.co.za reported.

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Source: Briefly.co.za

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