THE City of Johannesburg will sign an agreement on Friday to finalise direct foreign investment in the city. The signing would conclude the sale and purchase agreement, shareholders agreement and the City Support arrangements. The agreement will conclude the sale of a 50% stake in the city-owned Kelvin Power Station (KPS) to the consortium of AES-Sirocco/Global African Power (AES/GAP). KPS is a 600mW coal-fired power station, which has been operating at about half its capacity due to the lack of funds spent on essential maintenance. KPS would be expected to supply electricity to the city over a 20-year period at a discounted tariff to the proposed Eskom market tariff. It was anticipated that once the privately owned and operated KPS had been refurbished by its new shareholders, it would supply approximately 25% of the city’s peak electricity demand. – Sapa
Wednesday, August 23, 2001