World Bank offers $3.75 bn loan to South Africa

PRETORIA - The World Bank has sanctioned $3.75 billion loan to South Africa for the development of wind and solar power plants to meet the country’s energy requirements.

The bank’s board of executive directors approved the loan that will go towards energy supply and financing of solar and wind power plants.

“Without an increased energy supply, South Africans will face hardship for the poor and limited economic growth,” said Obiageli K. Ezekwesili, World Bank vice president for the Africa Region.

South African firm Eskom approached the bank for funds to build its coal-fired 4,800 MW Medupi power plant in Limpopo, BuaNews reported.

“Access to energy is essential for fighting poverty and catalysing growth, both in South Africa and the wider sub-region.

“Our support to Eskom combines much-needed investments to boost generation capacity for growing small and large businesses, creating jobs, and helping lay the foundations for a clean energy future through investments in solar and wind power,” she added.

The bank said $260 million will be used for a 100 MW wind power project in Sere and a 100 MW concentrated solar power project with storage in Upington, while $485 million will be used for low-carbon energy efficiency components to transport coal with fewer greenhouse gas emissions.

The project offers a unique opportunity for the World Bank group to “help South Africa chart a path toward meeting its commitment on climate change while meeting people’s urgent energy needs”, said Ruth Kagia, World Bank country director for South Africa.