SA to favour energy infrastructure projects in 2010

5 January 2010

South Africa is expected to invest heavily in energy and utilities infrastructure projects in 2010 - but questions as to the ability of the sector forerunners to make good on their plans have been highlighted in a recent report.

London-based analyst Companies and Markets have called attention to how Eskom needs the 45 per cent, three-year tariff hike proposed last quarter to follow through on investments.

The report noted this reform had not been well received and commented: "With the company relying on the tariff to meet the majority of the funding shortfall for its capex plans, its ability to invest hinges on the outcome of the tariff."

Business Day relayed today (January 5th) a decision announced by the National Energy Regulator of South Africa (Nersa) that public hearings on this levy will be held from January 11th to January 21st and the ruling made next month.

The transport infrastructure sector was also stated to be in good health, with several investment plans by Sanral and Transnet in projects unrelated to the World Cup moving ahead with funding.

Category: General