October 15, 2013.
From Creamer Media in Johannesburg, I’m Motshabi Hoaeane.
Making headlines:
 

Standard & Poor's says Eskom will need another R50-billion injection to close its funding gap.

The City of Johannesburg launches the second phase of the R1.7-billion Rea Vaya BRT system.

And, the World Energy Council’s latest energy report reveals that Africa struggles to keep up with global electricity access.

Ratings agency Standard & Poor's (or S&P’s) has downgraded Eskom’s standalone credit profile to ‘b-' from 'b'. It has also indicated that it believes the utility will require additional funding of about R50-billion to close a gap that arose as a result of the National Energy Regulator of South Africa’s latest tariff determination.

However, it also stressed that the additional R50-billion assumed the successful completion by Eskom of a wide-ranging cost-cutting programme and that the utility recovered prudently incurred costs through a regulatory clearing account (or RCA).

Eskom itself had calculated the five-year financial gap to be R225-billion and had indicated on several occasions that the hole couldn’t be closed by efficiencies alone. The utility was, therefore, undertaking a “systematic” review to deal with the shortfall, while implementing a R30-billion cost-savings plan to which it had committed in its third multiyear price determination (or MYPD3) application.

Eskom would also seek to use the RCA to “claw back” some of the revenue lost through the determination. The RCA is a risk management device used to reconcile differences between actual and approved revenue during the MYPD3 period.

The City of Johannesburg has rolled out the second phase of the Rea Vaya bus rapid transit (or BRT) system, in Johannesburg, following protracted negotiations between city officials and taxi association leaders.

The launch of the R1.7-billion Phase 1b, which would operate on a dedicated lane between Noordgesig station, in Soweto, and Ellis Park station, in Doornfontein, came shortly after the conclusion of an “equitable deal” that would see public transport operators affected by the introduction of an alternative public transport system, being remunerated.

While city officials wouldn’t elaborate on the nature or extent of this remuneration, City of Johannesburg executive mayor Parks Tau said at the launch that the in-principle agreement, which was concluded last week, had outlined a business model that allowed former bus and taxi operators to be redeployed within the Rea Vaya system.

The World Energy Council’s (or WEC’s) latest report showed on Monday that while access to electricity has improved across the world, sub-Saharan Africa will continue its struggle to light up the continent by 2050.

The report revealed that Africa remained behind the rest of the world and would, in the next 30 years, continue to have the most people without access to electricity.

The WEC based its research on two possible scenarios until 2050. These  include Jazz, which examined a potential world where there was a consumer focus on achieving energy access, affordability, and quality of supply with the use of best available energy source, and Symphony, which focused on driving environmental sustainability and energy security through corresponding international practices and policies.

Also making headlines:
 

South African companies will be granted a one-year transitional period to align with and prepare for the implementation of the revised broad-based black economic empowerment Codes of Good conduct.

The Passenger Rail Agency of South Africa and Gibela Rail Transportation have signed a R51-billion contract for the supply of 600 passenger trains, made up of 3 600 coaches, to be delivered between 2015 and 2025.

And, the National Empowerment Fund has urged French companies to invest in strategic South Africa-based projects valued at more than R33-billion.
 

That's a roundup of news making headlines today.