The South African government has released its cabinet approved Medium Term Strategic Framework 2014 – 2019 for implementing the National Development Plan (NDP), a programme devised in 2012.
The MTSF defines the strategic objectives and targets of government during the next five years and is structured around 14 priority outcomes, including developing the skills and infrastructure required by the economy. Among the targets are plans to add 10,000 MW of electricity.
As part of the country’s development plans the Treasury has approved additional support for national utility company Eskom. The company will receive at least R20 billion (EUR1.4 billion), raised through the sale of non-core state assets it will also raise additional debt in the region of R50 billion (EUR3.6 billion) , over and above its original plan of R200 billion during the third Multi Year Determination Period (MYPD 3).
The funding will be used to support the expansion of the independent power producer programme to complement Eskom’s build programme. Projects include procuring 2.5 GW of privately supplied coal-fired electricity and cogeneration agreements for more than 800 MW of capacity under the independent power producer programme.