Eskom, South Africa’s state-owned power utility, has sold assets worth R463 million over the past five years, which is 72% higher than their book value.
The assets sold include 494 buildings and facilities, 1,903 units of laboratory, transport, and workshop equipment, and 380 pieces of land.
Moody’s Investors Service believes that South Africa’s plan to provide debt relief to struggling power utility Eskom and potentially write off municipalities’ arrears to the company will improve liquidity and reduce funding risks for the government.
The Eskom Debt Relief Bill, aimed at providing debt relief to South African power utility Eskom, is set to be considered by the National Council of Provinces (NCOP) and may become law soon.