Zuma supports R28bn Eskom loan

24 November 2009

"The president wrote the letter to emphasise how important Eskom's development programme is for South Africa," National Treasury head Thoraya Pandy told Sake24.

The government has also given guarantees for the loan. It could be approved early next year. The money would be used to finance, among other things, the construction of a solar-power installation at Upington, a railway line in Mpumalanga and the Medupi coal-fired power station near Lephalale in Limpopo.

The electricity utility has been negotiating with the World Bank for four years and initially asked for US5 billion.

Eskom is under severe financial pressure to expand its capacity and has applied for permission to hike its tariffs by 45 percent per year for three consecutive years, much to the ire of consumer groups.

Original Article Link:

http://www.timeslive.co.za/news/world/article206472.ece