Eishkom strikes again

Eskom turns down power request
28/03/2008 08:32 - (SA)

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Johannesburg - An Eskom appeal board has rejected an application for bulk electricity to a new mixed housing development on the West Rand, Business Report wrote on Friday.

It said the flagship public-private partnership near Kagiso in Mogale City was to provide 9 315 residential units.

Eskom's appeal board turned down the application because it viewed it as a private development.

It said if this request was allowed to continue, the same ruling would have to apply to all other private developments.

The principle applied by Eskom this case had the potential to derail many other similar public-private partnerships, said Business Report.

This could thwart the government's drive to eradicate informal settlements.

The Kagiso Azaadville development is a joint initiative between the Mogale City local municipality, the Gauteng Department of Housing and Absa.

Sipho Mashini, the managing executive of Absa Development Company, confirmed the appeal had failed.

But he was confident that, together with the Gauteng Housing Department, the problem would be sorted out because it was one of the department's flagship projects.

"It will become one of those political decisions that need to be taken at a senior level. You can't stop housing delivery because of electricity-related issues," Mashini said.

"We had a commitment from them (Eskom) before we started and now they have suddenly decided they can't supply. It's a typical Eskom attitude. They say they 'can't, can't, can't', but when they get pushed, they do provide."