Transmission Ten-Year Development Plan 2011-2020 - Eskom

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7. Capital Expenditure Plan
The total capital expenditure including expansion, refurbishment, facilities, production equipment, and land acquisition
project costs amount to R 204.2 billion. This summary is shown in Table 7.1 and Figure 7.1 below. It is clear that
the majority of the cost will be expansion related as this relates directly to the strengthening of the network to
accommodate new customers as well as new generation.
Table 7.1: Capital Expenditure per year for different categories of projects
Figure 7.1: Summary of Capital Expenditure in the Transmission Division
Refurbishment and land acquisition projects are the second and third-most expensive items in the capital expenditure,
respectively. Refurbishment is required to prolong the life of assets and land acquisition projects are required to
purchase the land in which to build the expansion assets.
The summary of expansion capital expenditure per project type required to realise this ten-year plan is shown in
Table 7.2. The total expenditure is expected to be approximately of R 166 billion, this is approximately R 21 billion
higher than the previous ten-year plan.
The main reasons for this variance are because:
• A provision was added covering the 2020 (a new year in the planning window) year list of projects.
• Of project cost escalations due to re-phasing.
• Of new projects added.
Transmission Ten-Year Plan 2011-2020