South Africa Seeks Cash Loan to Boost Power Capacity

7 March 2010 (Last Updated March 7th, 2010 18:30)

South Africa is seeking support from the UK for a potential $3.75bn World Bank loan to help boost power projects in the country. State utility Eskom needs $3.1bn of the funds to build a 4,800MW power plant in Medupi that will meet the power needs of the country, according to the Fina

South Africa is seeking support from the UK for a potential $3.75bn World Bank loan to help boost power projects in the country.

State utility Eskom needs $3.1bn of the funds to build a 4,800MW power plant in Medupi that will meet the power needs of the country, according to the Financial Times.

South Africa will seek support from the UK and other powerful World Bank members such as the US, France and Germany at a board meeting due early next month.

The Medupi project faces opposition from environmental groups that argue that the project will contribute to emissions, while a World Bank document indicates the project is equipped with clean coal and carbon capture technology according to the newspaper report.

The remaining amount from the fund is expected to be used by Eskom on its renewables and energy efficiency projects.