Eskom Medupi power station.
Eskom Medupi power station.

SA WILL hand over R5bn to Eskom as the final payment of a capital injection into the state-owned power utility, the Treasury said on Friday.

"Treasury is working on a process to have the R5bn transferred next week," Phumza Macanda, a Treasury spokeswoman, said in a text message.

Mr Gordhan said on Wednesday that the government would postpone the last payment of a R23bn bail-out for Eskom until the utility implemented further cost cuts, improved maintenance and executed its capital expenditure programme.

The funding was promised in 2014 as a rescue package for the utility, which has been struggling to fund new plants while suffering breakdowns at its aging operations, prompting frequent power cuts in 2015.

Bloomberg