Page 10 - AfrElec Week 39 2022

AfrElec COAL GENERATION AfrElec

ABB allocates $325mn

to cover cost of probe

into Kusile plant

ZIMBABWE SWISS engineering group ABB has reached an authorities regarding the remaining matters
agreement to sell back to Hitachi its remaining related to the legacy Kusile project in South
19.9% stake, worth $1.679bn, in the Hitachi Africa awarded in 2015,” said the statement.
Energy joint venture. Hitachi exercised its option “Based on these discussions, ABB does not
to buy the stake in the venture formed from believe that it will need to take any material
ABB’s Power Grids business in 2020, Reuters additional provisions relating to these matters.
reports. The company continues to cooperate fully with
Separately, in a statement on September the respective authorities and hopes to reach a
30, ABB said it was setting aside a provision of final settlement with them in the near term,” it
around $325mn to cover costs related to inves- concluded.
tigations surrounding the Kusile power plant in As for the Hitachi deal, ABB said it does not
South Africa. expect to record any significant gain or loss as a
According to Reuters, ABB agreed in 2020 to result of the sale. “ABB expects net positive cash
pay ZAR 1.56bn (then worth $104mn) to South inflows of approximately $1.425bn upon closing
African state power utility Eskom to settle an of the sale,” the company said in a statement,
investigation into improper payments and com- adding that the transaction is expected to close
pliance issues related to the project. before the end of 2022.™
“ABB is progressing discussions with relevant

P10 www. NEWSBASE .com Week 39 29•September•2022