Medupi will cost R105bn to complete – for now

2015-07-03 19:30
Medupi power station. Picture: Lucky Nxumalo/City Press

Medupi power station. Picture: Lucky Nxumalo/City Press

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Video

Eskom has still not communicated when Kusile and Medupi will be online - expert

2015-06-30 16:39

One of the reasons cited for Nersa's refusal of Eskom's proposed 25% tariff hike was the unclear timeline for the completion of Kusile and Medupi. Watch.WATCH

Cape Town - It’s going to cost at least R105 billion, probably more, to complete Medupi Power Station. 

This amount is constantly reviewed, according to a response from Minister of Public Enterprises Lynne Brown to a parliamentary question asked by Cope leader Mosiuoa Lekota. 

Lekota asked whether the government’s financial analysis agreed with that of independent analysts, who have determined that Medupi would come with a R300 billion price tag – 10 times as much as the original amount when the contract for the power station was signed. 

“The board of Eskom has not approved any further revision to the R105 billion. The most recent review of the costs is currently undergoing internal governance scrutiny. Should an increase to the current cost of completion be required, the board will seek the necessary shareholder approval through the Public Finance Management Act process,” said Brown. 

“Eskom is not familiar with the details, assumptions or factors that have been considered in the independent estimate of R300 billion, hence Eskom is not in a position to comment on the credibility of the estimate. The current approved project cost to completion on the Medupi project is R105 billion.” 

Brown said that the government was aware that the costs of the Medupi project could increase due to “various factors” and Eskom would prove the details of these increased costs to the government when all the processes had been completed. 

“Eskom is consistently incorporating techniques to improve performance and manage costs,” said Brown.

Read more on:    eskom  |  medupi power station

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
104 comments
Comments have been closed for this article.

Inside News24

 
ADVERTORIAL
Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

/News
 

Man scores date with tennis superstar after Twitter bet

It’s a modern day Cinderella story, but one American man took ‘shoot your shot’ seriously in 2017.

 
 

You won't want to miss...

6 myths about male cancer
Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
5 top leg exercises for men
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.