(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.