DEPARTMENT: PUBLIC ENTERPRISES

REPUBLIC OF SOUTH AFRICA

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.: PQ 2700

DATE OF PUBLICATION: 2 DECEMBER 2016

Ms N W A Mazzone (DA) to ask the Minister of Public Enterprises:

What (a) steps are Eskom and her department taking to ensure that the financial guarantees from the Republic of Zimbabwe’s government regarding a R150 million debt owed by the Zimbabwe Electricity Supply Authority (ZESA) to Eskom is paid and (b) arrangements have been made by ZESA to pay the specified debt?NW3191E

REPLY:

(a)

The debt owed by ZESA to Eskom is R443 million as at 2 December 2016.

The financial guarantee issued by ZESA in favour of Eskom amounts to R500 million.

Consequently, there is no current financial exposure to Eskom.

Eskom is currently looking at increasing the financial guarantee to cover future power purchases.

(b)

Additional arrangements are as follows:

There is ongoing contact between Eskom and ZESA leadership to monitor the payments

There is a guarantee in place to cover the amount owed.

ZESA is putting in place mechanisms to address the foreign currency reserves challenge of the central bank so that they are able to meet their ongoing payment obligation.

ZESA has recently made a number of substantial payments for example during November up to 1 December they have paid R198.2 million.

Issued by Parliament, 15 December 2016