Eskom Subordinated Loan Special Appropriation Act (2008/09 - 2010/11 Financial Years)
REPUBLIC OF SOUTH AFRICA
Vol. 521 Cape Town 27 November 2008 No. 31653
THE PRESIDENCY No. 1288 27 November 2008
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 41 of 2008: Eskom Subordinated Loan Special Appropriation Act (2008/ 09-2010/11 Financial Years), 2008.
ACT To appropriate additional money for the requirements of the National Treasury to provide a subordinated loan to Eskom in support of its investment in enhanced electricity generation capacity and security of supply; and to provide for matters connected therewith.
BE IT E N A C T E D by the Par l iament of the Republ ic of South Africa, as fo l lows:— Appropriation of additional money for requirements of National Treasury
1 .(1) Subject to the Public Finance M a n a g e m e n t Act, 1999 (Act No . l of 1999), an amount of R 6 0 billion is hereby appropriated out of the Nat ional Revenue Fund for the requirements of the National Treasury for the following financial years:
(a) 2008/09 financial year: R 10 bill ion: (b) 2009/10 financial year: R 30 bil l ion; and (c) 2010/11 financial year: R 20 billion.
(2) The money contemplated in subsection (1) must be transferred to Eskom in each financial year in support of its investment in enhanced electricity generat ion capacity and security of supply, subject to a loan agreement being entered into between the Minister of Finance and Eskom.
(3) The loan agreement must provide for— (a) the loan to be subordinate to other debts of Eskom; (b) payment terms tha t—
(i) provide for the repayment of the loan over a 30-year period at a market- related interest charge: and
(ii) take into account the medium- te rm impact of E s k o m ' s capital investment plan on E s k o m ' s balance sheet: and
(c) such regular report ing by Eskom on its financial status and on the implementat ion of its investment plan as required by the National Treasury.
2. This Act is called the Eskom Subordinated Loan Special Appropria t ion Act (2008/09-2010/11 Financial Years), 2008 .