Energy

Eskom lost R910 million building 366 flats that are now empty and abandoned

Shaun Jacobs • 6 September 2026

Eskom’s Ogies Housing Project cost the utility R910 million, with the 366 flats now standing empty.

This development was one of the largest project management failures associated with the construction of Kusile Power Station.

Located near Witbank, Kusile is one of the world’s largest coal-fired power stations, with its six units capable of generating 4,800 MW of electricity.

The construction of Kusile and Medupi was intended to stabilise South Africa’s electricity grid after load-shedding was first implemented in 2007.

However, both have been beset by severe design flaws, poor workmanship, delays, and corruption.

Kusile was meant to be finished in 2017 at a cost of R121 billion. In its 2026 annual report, Eskom said it now expects the station to be completed in 2028 at a cost of R233.4 billion.

Apart from the construction of the power station, numerous failures in Eskom’s surrounding projects contributed to budget inflation.

One of these was the Ogies Housing Project, which was one of the largest write-offs associated with the Kusile project.

Unlike the design flaws and failures, this project saw Eskom lose every cent it invested, and the flats built have never been used.

Located in Ogies, Mpumalanga, the project was launched to build a residential development of 366 flats for workers at Kusile.

The flats were built to accommodate the artisans, builders, and technical contractors working at Kusile during its construction.

The project was estimated to save Eskom millions of rands in transport costs by eliminating the need to bus workers in and out of the area.

However, the project was never completed due to extreme project mismanagement and poor contract performance, Eskom said in its annual reports.

Construction on the development was halted midway, leaving the entire site and its structures unfinished to the present day.

In its 2020 annual report, Eskom revealed a R918 million impairment write-down related to the Ogies project. The original budget was R160 million.

In 2021, Parliament estimated that Eskom was forced to spend billions of rands on rental accommodation and transportation for its employees.

Since the development is incomplete and Eskom has no use for it, the utility has put the property up for sale in its abandoned state.

Eskom was unable to sell the property, and discussions with the Department of Human Settlements are ongoing regarding the development of social housing.