Eskom Capacity Expansion

Roman Crookes, 2 December 2008 Medupi Project Manager

Medupi Power Station will have a significant impact on SA Inc.

– Funding required: R78 bn (local & offshore)

– Capacity as % of Eskom’s installed base: 11% (4,800 MW)

– Will be the 22nd largest power plant, 4th largest coal plant in the world

– Direct construction employment: 8,000 (at peak)

– Current construction employment: 2,000 (Sept ‘08)

– Indirect employment: ~1,500

– Ongoing direct employment: 750

– People directly impacted by Medupi ~80,000……plus keeping the lights on for all of South Africa!

Medupi Power Station’s potential impact on SA Inc. - supporting infrastructure

MEDUPI

National Infrastructure

Main components (expanded on following pages)

Roads

Freight forwarding

Ongoing roads maintenance

Richards Bay to Lephalale roadLephalale bypassR1bn, 500 jobs

R50-100m

Richards Bay facilityR90m, 150 jobs

Hotels

Local transport

Local business

Catering and workforce supply

Vehicle maintenance

Hotels to expand 100%-150%

30-35 buses at peakIncreased taxis~100 jobs

Food, laundry, maintenance, security supplied to workforceR1bn, 500 jobs

500+ extra vehicles maintained locally20 jobs

Skills (current & legacy)

Artisans

Engineers

Semi-skilled

Unskilled

R&D

Proj Mgt, Admin

Transmission

Lines

Substations

2500 km lines built~R5bn2200 jobs

1 large substationsUpgrade to 1 other substation~R1bn450 jobs

Gypsum

Coal, Water, Limestone

Waste (Ash, Gypsum, General)

Ash

General

Coal

Limestone

Water

300kt/yrR60m / yr

15Mt / yr~R1.8bn / yr2000 jobs for mine expansion

Needs 14Mm3/yr vs current allocation of 2.9Mm3/yr. Crocodile River diversionR50m / yr

3Mt / yr20 jobs

Potential to sell to cement manufacturersLow environmental impact

Setting up local waste dumpUp to 50 jobsR100m

ALL NUMBERS ARE DRAFT

Trains

38 wagon train per day for limestone12 tank carriers per year of oil Maintenance of rail lines50 jobs

Local Infrastructure

Housing

Water

Sanitation

Social facilities

1850 houses (320 being purchased and 900 being built)R2.0bn

Sewerage plant upgradeR50m

2x schools, increased policing, recruitment centre, fire, social club, ICT centreR50m planned spend

Benefit from Crocodile River diversion

• Training to upskill local workforce (eg MPS-JV local training facility targeting 3000 in multiple skills categories)

• Training to reskill/upskill Eskom employees with on-the-job training for 500 people

Ongoing operations and maintenance

Plant permanent

T&D

FundingR78bn funding required from multiple sources:•Government•Local banks•Foreign banks

All numbers are estimates

Sod Turning – 14 August 2007

Eskom CFL roll out

Objectives of CFL roll out• Door to door exchange of 4.2 million energy

saving CFL’s for incandescent bulbs to reach a saving of approx 130MW

• Areas covered include: Polokwane, Molemole, Greater Tzaneen, and Greater Letaba, Thulamela, Makhado, Mogalakwena, Aganang, Lepele-Nkumpi, Fetakgomo, Makhuduthamaga

Strategy to roll out CFL’s

• Inform residents that CFL's will be distributed FREE OF CHARGE to their households• Communicate the rollout plan as well the requirements to participate• Market the advantages of CFL’s to improve acceptance rate• Encourage residents to allow installation contractors to enter their homes in order to exchange • Alert residents to security and identity aspects of roll out• Stress participation is voluntary. • Support ESCos(energy services companies), pre, during and after areas have been targeted.

Thank You