Hon Chairperson, Minister and Deputy Minister of the Department of Public Enterprises, all Ministers present here, all august members and the chairperson of the portfolio committee, our Whip, and all members of this august House, I greet you this afternoon in the name of the ANC, the leader of South Africa.
Given South Africa's current challenges, the developmental state should maintain its strategic role in shaping the development of a number of key economic sectors, including through the continued ownership of state-owned enterprises. These sectors include the energy complex and the national transport and logistics system, where an ongoing role is envisaged for Eskom and Transnet. There must be consideration of the best means to enhance the strategic role of these and other public enterprises, utilities and agencies across all spheres of government.
Eskom is one of the top 20 utilities, by generation capacity, in the world. It generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used on the continent of Africa. Furthermore, Eskom's total procurement spend for the 2012-13 financial year was about R120 billion, and total expenditure on broad-based black economic empowerment-compliant companies is R103,4 billion. This is 86,3%, against the target of 70%. There is an intention to ensure that by 2018 Eskom will procure over 50% of its coal from emerging black coal miners, which would be a significant act of transformation. To date, significant work has been done to establish the fund, which will go into operation by the end of the 2013-14 financial year.
Eskom directly provides electricity to about 45% of all end users in South Africa. The other 55% is resold by redistributors, including municipalities. Additional power stations and major power lines are being built to meet the rising electricity demand in South Africa. By December 2011, the Eskom Kusile Project had already employed 6 718 people and by 2019, the number will have increased to 22 150.
Eskom has committed to training 2 017 employees, and already 798 have completed their training. Training of 341 people is still in progress. Eskom has planned for a new intake of 1 465 for training in various fields, such as artisans, engineers and technicians.
In 2012, Eskom topped the list for contributions to social initiatives, contributing R87,9 million to various projects. These included business incubators, an energy and environmental programme, enterprise development initiatives and projects in infrastructure development and education support.
During 2011-12, Eskom invested over R76 billion in infrastructure. Its rolling capital investment programme increased from R92 billion in 2005 to R549 billion in 2011. Through its medium-term power purchase programme, Eskom signed contracts with five independent power producers, totalling some 373 MW of capacity. It also signed up about 200 MW of municipal generation for the 2011 winter.
The African Development Bank approved a US$365 million loan to Eskom for the 100 MW concentrated solar power plant and the 100 MW wind power plant. Eskom submitted a US$250 million loan application to the World Bank for funding from the Clean Technology Fund.
In 2011, Eskom, once again, provided apprenticeships to 10 000 young people - up from 4 500 - and implemented a youth programme to support about 5 000 young people - up from 200 - to find their way into employment by 2015.
I want to clarify certain issues regarding Broadband Infraco here. People daydream if one leaves them unchallenged. The 53rd ANC national conference resolved that to maximise the value of the scarce or high-demand spectrum, government must set aside spectrum for the provision of wholesale services or an open-access network by the merged entity between Sentech and Infraco.
This infrastructure must prioritise government services and provide modern communication services to government departments, municipalities, schools, hospitals, clinics, police stations, multipurpose community centres and courts to ensure that they are connected and can provide e-services to the people. Excess capacity should be geared to further connect rural areas to help achieve full access to high-speed Internet networks by 2030.
As a Schedule 2 company, Broadband Infraco was awarded an individual electronic communications network services licence in October 2009. This allowed it to sell high-capacity, long-distance transmission services to licensed, fixed and mobile network operators, Internet service providers and other value-added network service providers. Broadband Infraco is a state-owned company that operates in specific focus areas of the country's telecommunications sector. In addition, it provides strategic international connectivity to operators in the SADC region and on the west coast of Africa.
Broadband Infraco also operates in specific focus areas of the telecommunications sector in South Africa. The National Development Plan states that information and communications technology, ICT, must perform a developmental function, must have an adequate range of infrastructure and must be available at the lowest cost and the highest quality to the wider community.
In 2011, the Department of Public Enterprises explored strategic synergies between Broadband Infraco and Sentech to optimise capacity. The network established 13 600 km of long-distance fibre, as well as five open-access points of presence in key metropolitan areas. A further seven open-access points to roll out broadband access in remote rural areas and to facilities such as hospitals, clinics and schools were also established.
Wholesale long-distance connectivity prices have come down by more than 75% over the past two years. This is partly as a consequence of the establishment of Broadband Infraco, thus further reducing the cost of connectivity.
In conclusion, in May 2012, the West Africa Cable System international connectivity became operational. This increased bandwidth capacity, providing for the improved integration of the 10 African countries that are customers of the West Africa Cable System and enabling the further reduction of the cost to communicate.
The state-owned enterprise, which has a budget of R3,1 billion over three years, is in the process of strengthening its cable system to ensure its carrier-grade status, so that it is able to provide broadband services. It has completed the building of installation sites for the northern ring of state-owned Broadband Infraco's new national network. Broadband Infraco is in the process of refurbishing 13 125 km of fibre optic cable. I thank you. [Time expired.]