Business Day (Johannesburg)
South Africa: World Bank Probe of Eskom's Loan
Siseko Njobeni
4 August 2010
Johannesburg � THE World Bank has started an investigation into its
$3,75bn loan to Eskom after a complaint by two local environmental
groups on behalf of the Lephalale community, where the Medupi power
station is to be built.
Although the investigation is not expected to affect the granting of
the loan, it could influence the way some of the money is spent.
Roberto Lenton, chairman of the World Bank's inspection panel - the
body leading the probe - yesterday said the investigation related to
allegations of violations of the bank's operational policies and
procedures.
The inspection panel is an independent body that monitors the bank's
accountability and compliance with its social and environmental
policies. It is a forum for parties aggrieved by bank policies and
procedures.
Tristen Taylor, Earthlife Africa energy policy officer, yesterday said
the Lephalale community was concerned about carbon and sulphur
emissions from the 4800MW Medupi power station which the loan will fund.
Mr Lenton recently led a team on an "eligibility" visit to SA to
investigate the Lephalale community's concerns. In a statement to the
bank's board, Mr Lenton said he was "struck" by the level of concern
about the project.
Eskom
Kendal power station, Eskom South Africa.
The panel decided on an investigation because the complaint by
Earthlife Africa and Groundwork "raises issues of compliance and harm
that can be addressed in the context of an investigation".
Mr Lenton said his panel did not have the mandate to question board
decisions, indicating that the loan would not be affected.
He said the panel would also not investigate SA and Eskom as the
borrower. The panel could, however, make recommendations to the World
Bank board "about project implementation, including the disbursement
of funds for the project".
In a statement yesterday, the World Bank office in Pretoria said that
previous findings of the inspection panel had been taken into account
in improving the design and implementation of projects.
However, the bank's local officials declined to comment on the
investigation. "The inspection panel is beginning its investigation
and World Bank staff cannot comment on the specifics of ongoing
investigations," it said.
In its current form, the bulk of the loan - more than 3bn - would be
used to build the power station, while $485m would go towards
investment in low-carbon efficiency components and $260m has been
earmarked for investment in renewable energy. Eskom wants to build a
100MW wind power project and a 100MW solar power plant in the Northern
Cape. The low-carbon energy efficiency portion of the loan will be
used to fund, among other things, the construction of a rail and
transmission line in Mpumalanga.
Eskom yesterday said it was aware of the request for an investigation
into alleged policy violations. It said it was also aware of Mr
Lenton's statement to the bank's board. "However, since this is an
internal World Bank matter, it will be inappropriate for Eskom to make
any comments on the investigation by the inspection panel," it said.
Mr Taylor said the two organisations were helping the community of
Lephalale "because they have legitimate concerns".
Lephalale is in the coal-rich Waterberg area and he said the community
was concerned about big coal-based projects. Petrochemicals group
Sasol is investigating the development of an 80 000-barrel-a-day coal-
to-liquids facility. The planned power station is 5km from Eskom's
Matimba power station.
"This whole area is being sacrificed environmentally. Our action is
about protecting the constitution," Mr Taylor said.
________________________________________________
You received this message as a subscriber on the list: africa@list.internationalrivers.org
To be removed from the list, please visit:
http://salsa.democracyinaction.org/o/2486/unsubscribe.jsp
No comments:
Post a Comment