Cost of Eskom project nearly triples

Business Day Live 14 September 2012.

HE cost of Eskom’s Ingula pumped storage scheme electricity project, one of its three biggest capital expenditure projects, had risen from R8.9bn to more than R23.8bn, the power utility said in a document sent to Business Day this week.

This represents a near tripling of the cost of the project from before it started. The Ingula project, started in mid-2006, was, according to information supplied to Business Day in that year, initially expected to be completed this year at a cost of R8.9bn.

Its first unit is now expected to be commissioned in the first quarter of 2014. Ingula, together with the construction of the new coal-fired power stations, Medupi in Limpopo and Kusile in Mpumalanga, ranks as one of biggest capital expenditure projects by one organisation in the world today…

(Editor’s note: Pumped storage uses simple and mature technology, imagine what will happen if we try to build a complex, trillion Rand nuclear power station. Yes I know that Minister Peters said the proposed 9 600 mW plant will cost about R300 bn, but who believes that?)