Siseko Njobeni
14 November 2008
Johannesburg — THE ripple effect of the global financial crisis could force a review of several key projects in the country, including the electricity generation programme, according to a senior minerals and energy department official.
The government, through state-owned enterprises, is driving an ambitious infrastructure expenditure programme, including Eskom's multibillion-rand programme to increase electricity capacity. Up to R150bn of Eskom's R343bn programme would have to be raised in local and international markets.
Because of the global credit crisis, the minerals and energy department has mooted a review of major projects. Speaking after delivering a paper at an energy conference yesterday, Tseliso Maqubela, an acting deputy director-general at the department, said top projects would have to be reviewed.
He said approved projects should go ahead, "but for those that still need to be approved, we may have to pause and ask what this financial crisis means".
Maqubela said that a "re-look" at the projects did not necessarily entail their cancellation. "It may be a postponement," he said.
Commenting on the effect of the crisis on Eskom, Maqubela said a concern was whether Eskom would get a good rate when it raised money .
Eskom spokesman Fani Zulu said yesterday that unfavourable conditions in global markets would slow down growth in several countries and lead to falling energy demand.
"In that environment, several countries, including SA, will step back and reflect how they will proceed with the planned investments. Some countries will say they will accelerate with investments. These countries will say investment in infrastructure is a defence mechanism (during the crisis). Others will say they will slow down," Zulu said.
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