Reuters quoted Mr Pravin Gordhan finance minister of South Africa as saying that the government has extended guarantees to state power utility Eskom to help finance its electricity generation program.

Eskom is on a massive capacity building program to bulk up its power grid and prevent future blacks, after a 2008 power crisis shut down mines and other industries, costing billions of dollars.

Mr Gordhan said that "We have extended guarantees to Eskom by ZAR 174 billion. Eskom will now have ZAR 350 billion from government to enable it to continue with its build program through 2017."

Eskom has been struggling to find all the money it needs to pay for two new 4,800 MW coal fired power plants. The utility has said it will tap the US bond market in early 2011 for cash to pay for new power stations and other infrastructure desperately needed to avoid a power crunch.

(Sourced from www.reuters.com)