Eskom has rejected proposals by national treasury that it sell some plants to reduce its debt mountain, a lawmaker said.

Eskom has turned to the government for bailouts to remain solvent as it confronts massive cost overruns at two partially completed coal-fired plants — Medupi and Kusile — and its other ageing plants struggle to produce enough power to meet demand.

The sale of the generating facilities could raise R450-billion, treasury said in a policy paper published on 27 August. That’s R10-billion more than the utility owes.

“We have posed a question to Eskom on the sale of Kusile,” Mkhuleko Hlengwa, the chairman of parliament’s public accounts committee, told reporters in Johannesburg on Thursday after the panel visited the two plants. “The responses that we have received is that they don’t believe, on the basis of the work that they have done, that the sale of Kusile or any of their assets would be the way to go.”

Kusile is expected to be completed by 2023 at a cost of R161-billion, and Medupi next year or in 2021 at a cost of R146-billion. When the projects were first announced in 2007, it was projected that Medupi would be finished in 2012 and Kusile two years later and the combined cost would be about R150-billion.

“The project from inception was not conceptualised properly,” Hlengwa said. “It is evident that corruption has taken place. There’s no running away from that if you look at the cost escalations, the contract management.” — Reported by Prinesha Naidoo, (c) 2019 Bloomberg LP