World Bank gives thumbs up for Eskom separation
The World Bank has given Eskom the nod to go ahead with separating its transmission division from the utility to form the National Transmission Company of South Africa.
The bank is one of Eskom’s creditors.
Acting Eskom CEO Calib Cassim said the World Bank’s consent marks a significant milestone.
"It is subject to certain conditions, including confirmation that all the necessary suspensive conditions required to operationalise NTCSA have been met.
“With the NTCSA having obtained licences for the operation of a transmission facility, as well as an electricity trading and an Import/export licence from the National Energy Regulator of South Africa (Nersa), obtaining the remaining financial creditor consents is one of the final outstanding conditions to the implementation of the legal separation of transmission.
“We are hopeful that the remaining consents will be granted as soon as possible so that we can finalise this process,” said Cassim.
Cassim said the legal separation of transmission is a key aspect of Eskom’s turnaround plan.
"Furthermore, it is essential to allow much-needed new grid access, to encourage investment in the generation sector, and through that help the country improve its security of supply."
Cassim said the World Bank recently approved a $1 billion Development Policy Loan for South Africa.
"This substantial financial support demonstrates the World Bank’s broader commitment to assisting the country and Eskom in promoting long-term energy security."
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