Johannesburg Mayor Dada Morero says the City will pay Eskom about R1.4 billion next week as part of efforts to settle its outstanding debt with the power utility.
Morero made the announcement during a media briefing in Braamfontein on Wednesday on the City’s financial management and plans to address its debt obligations.
He said the payment would be made once the City receives the necessary funds and would allow it to meet commitments under its debt repayment agreement with Eskom.
“We will be paying Eskom just around R1.4 billion as soon as we receive the cash. This will then set us free from the debt process that we have agreed with Eskom,” Morero said.
The City will also pay Rand Water about R960 million, either next week or by the end of the month.
Morero said the municipality had a stable relationship with Rand Water and remained one of the utility’s biggest customers.
“We really don’t have issues with Rand Water. Everything has been fine between the City and Rand Water, and we are one of their biggest customers,” he said.
“We will be paying them an amount of about R960 million next week or by the end of the month, but we are convinced that by mid-July all these payments will be effected.”
The City of Johannesburg owes Eskom and Rand Water a combined total of more than R8 billion.
