Eskom may need more bailouts by end-March – Treasury

The South African government may be forced to inject more money into state power firm Eskom by the end of March next year, should the struggling utility fail to meet its borrowing plan, a National Treasury presentation to parliament said on Wednesday.

Read: Eskom could sell some coal-powered plants to raise R450bn

Treasury has already earmarked R59 billion ($3.9 billion) to Eskom over the next two financial years as part of a special appropriation bill, with R26 billion allocated until the end of March 2020.

“Failure to execute its funding plan may result in Eskom experiencing liquidity shortfalls at March 31 2020 and require additional funding in addition to funding provided through the Special Appropriation Bill,” National Treasury’s director general, Dondo Mogajane, told lawmakers.