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DBSA approves R205m for electrification programme

22nd November 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The Development Bank of Southern Africa (DBSA) announced last week that it would inject R205-million into a programme to fast-track the implementation of the electrification of 14 000 households in rural regions.

The Integrated National Electri- fication Programme (INEP) front- loading loan facility will enable low-capacity municipalities in the Matatiele, Mbizana, Thulamela and Umzimvubu regions to fast-track the supply of electricity to their communities.

The programme forms part of government’s plan to accelerate the eradication of electricity backlogs to meet the 2015 Millennium Development Goals (MDGs).

However, several municipalities continue to have backlogs and that fact means government will not meet the MDG deadline.

Often backlogs are the result of a lack of “backbone” network infrastructure, escalating costs and limited funding.

During the May Budget Vote, the then Energy Minister, Dipuo Peters, said KwaZulu-Natal and the Eastern Cape continued to have the highest backlogs at 24% and 20% respectively.

Gauteng had a 21% backlog that was largely attributable to informal settlements, many of which were across regions deemed to be uninhabitable by humans.

The Department of Energy (DoE) had allocated over R3-billion to projects under the INEP during the 2013/14 financial year. The Eastern Cape had been allocated the largest slice of the budget, at R1.1-billion, followed by KwaZulu-Natal and Limpopo, with allocations of R793-million and R480-million respectively.

Funding

The Free State received R198-million, while Gauteng attracted funding of R270-million. Mpumalanga, the Northern Cape, the North West and the Western Cape were allocated R283-million, R94-million, R413-million and R212-million respectively.

The INEP front-loading loan facility provided by the DBSA enabled the DoE to accelerate infrastructure delivery in municipalities where there were capacity constraints to deliver projects on time, DBSA GM for infrastructure finance and capacity support Chucheka Mhlongo said.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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