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World Bank decides on power loan for SA

Published:Thursday | April 8, 2010 | 1:37 PM

The World Bank is expected to announce later whether it will grant South Africa\'s utility firm, Eskom a $3.75 billion loan for a huge power plant.



Eskom says the plant is needed to help South Africa end power cuts.



However, environmentalists and campaign groups say the World Bank should not finance Eskom\'s plans.



The US, the largest lender to the World Bank, also wants assurances that the plant meets strict no or low carbon gas guidelines.



South Africa has been rationing power since last year because it is unable to cope with increasing energy demand.



Eskom says the new plant will go a long way in boosting energy supplies not only to South Africa, but also other neighbouring countries.