Funder says Eskom’s $8.7bn power plant won’t make money

An $8.7-billion power plant in South Africa won’t ever make a profit because of delays, design defects and increasing opposition to coal-fired electricity generation, one of its funders said. Cost overruns at the 4 764 MW Medupi coal-fired plant, owned by Eskom Holdings, along with the even larger Kusile facility are seen as key reasons for the State utility’s R396-billion debt burden. The project will not meet anticipated returns over its life and is unlikely to stay open that long as pressure grows to reduce greenhouse gas emissions, said the African Development Bank (AfDB), which approved a €930-million loan for its construction in 2009.