ESB will need private funding to expand

THE ESB will require outside investment if the State-owned electricity company is to continue with expansion plans.

Chief executive Padraig McManus says the company cannot continue to fund its expansion abroad and upgrade the Irish electricity network indefinitely by borrowing from banks.

With €2.3 billion in debt on its books and a further €2bn committed to upgrade the electricity grid, Mr McManus says some new mechanism of funding is required. As the Government has ruled out full privatisation - to keep the electricity grid in State control - a new model to inject capital was needed.