According to Deputy Finance Minister David Masondo, the measure will facilitate a rapid expansion of new high-voltage lines, supporting the transmission development plan that envisages building more than 14,000 kilometers of power lines over the next decade.

The program is part of Phase II of Operation Vulindlela which seeks to drive a comprehensive reform of the energy system towards a competitive electricity market.

“The reform process is moving forward with determination and we will not allow vested interests, not even (state-owned power utility) Eskom, to hinder this transformation,” Masondo said during the presentation of the initiative, referring to the recent publication of the request for prequalification of independent transmission projects.

The deputy minister highlighted that the National Treasury supported the plan through the design of a Credit Guarantee Vehicle, an innovative tool to attract private capital complementary to public financing, while minimizing contingent risks for the State.

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