Spokesperson for Eskom Fani Zulu, said Matimba B Power station would be the biggest project the company had embarked on in recent years.

"The construction of the station will require well-trained people with technical skills to ensure that they do proper work. Unskilled local people will also get an opportunity to acquire skills," said Mr Zulu.

The new "base load coal" power station will carry more than 250 000 megawatts of energy.

"Undoubtedly, the project will create permanent and temporary jobs for unemployed people in the province," Mr Zulu said of the project which is set to create 120 000 jobs.

Municipal Manager of Lephalale, Mike Moutse, concurred with Mr Zulu, adding that the area had an unemployment rate of 40 percent.

Mr Zulu said the parastatal had already conducted the environmental assessment impact report and found there would be no negative effects on the local community.

"The project will kick-start in January 2007 and will be completed in 2010.

"In terms of our plan, by 2010 the local communities will be receiving electricity from the Matimba B Power station," Mr Zulu said.

This is just one of a number of projects Eskom has planned to improve power supply in areas where power stations were not meeting demands.

Mr Zulu said Eskom had set aside R97 billion over the next five years in its capital investment programme, to improve its power stations and the supply of electricity.

Eskom's annual report for the 2005/2006 financial year indicated that project planning for new power plants was at an advanced stage.

The projects included the Limpopo power station, as well as a 765 kilo volt transmission line running from Standerton to Cape Town; open cycle gas turbines at Atlantis and Mossel Bay and a pumped storage station in the Drakensberg escarpment.

Further coal, gas, and nuclear options are being evaluated for Board decision in the 2007 financial year.

"Our immediate challenge is to balance electricity demand with the available supply until the capacity improvement programme gains critical mass," Eskom's Chief Executive Thulani Gcabashe said at the release of the annual report in March.

"We will have to pay special attention to operational performance, infrastructural investment, pricing structures, and customer service. We are up to the challenge."

Mr Gcabashe said the company had an experienced and committed workforce which, together with a strong financial position, instilled confidence that they could play their role in powering South Africa's development.

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