While Finance Minister Enoch Godongwana did not make his Budget speech as scheduled on February 19, a copy of the address shared with the media under an embargo that has since been lifted states that a request for proposals (RFP) will be released in November for the private sector to participate in investments to expand the country’s transmission infrastructure.

The Budget is now scheduled to be tabled on March 12 and details could, thus, change.

However, the undelivered speech says that a request for information for a multi-line package will be issued by the Independent Power Producer Office (IPPO) in July this year, followed by an RFP in November.

The Budget Review, meanwhile, describes the RFP as a pilot independent transmission project (ITP) that “will invite the private sector to assist the National Transmission Company South Africa (NTCSA) in expanding transmission lines”.

Regulations for ITPs are being prepared for release for public comment, alongside a Ministerial determination that will be required to trigger the inaugural procurement programme.

It was confirmed last year that the IPPO would oversee that initial bidding round.

The ITPs would be aligned with the project portfolio in the NTCSA’s Transmission Development Plan, which envisages the construction of 14 500 km of new powerlines and 133 000 MVA of additional transformers by 2034.

In addition, the National Treasury and the World Bank have been working on a credit-guarantee framework to facilitate ITP investments, without increasing the level of contingent liabilities on the national accounts.

During a recent debate on President Cyril Ramaphosa’s State of the Nation Address, Electricity and Energy Minister Dr Kgosientsho Ramokgopa said an instrument had been designed to facilitate ITPs, and that it could be rolled out to other sectors.

He said ITPs made sense in light of the prevailing weaknesses of the State’s and Eskom’s balance sheets and the need to accelerate grid investment.

“We need to modernise and grow the transmission grid by over 14 000 km in the next ten years [and] we need about R450-billion,” Ramokgopa said.

Meanwhile, the IPPO has again urged stakeholders to respond to an ITP market sounding exercise that was launched on December 12.

The deadline for submitting responses was Friday, February 28, 2025 at 17:00, with details available at https://www.ipp-projects.co.za/.