"SA Keeps the Lights On!"
The World Bank has approved the granting of a $3.75bn loan to electricity parastatal Eskom in a bid to help South Africa achieve a reliable electricity supply while also financing some of the biggest solar and wind power plants in the developing world. Brian A Statham, Chairman of the South African National Energy Association (SANEA) in his response to the announcement said, "We are very pleased that the loan has been approved. It is an essential component of plans to return South Africa to having energy security which is, of course, essential for both social and economic development".
"Energy security will underpin economic growth. This in turn will provide jobs which will help the poor. Economic development will also provide the resources necessary for much-needed developments in housing, health and education. Thus this loan should not be seen simply as a loan to Eskom, but as a catalyst for alleviation of poverty in the sub-continent," Statham added.
While $3bn of the loan would fund the bulk of the construction of Medupi, the remainder of the funds would go towards renewable energy and energy efficiency programmes. Although the loan proposal raised objections from opposition political parties and environmental groups, both government and the power utility stressed that there was no alternative but to develop Medupi to "keep the lights on".
Statham concluded: "This is a time for pragmatic and constructive change towards sustainable social, economic and environmental systems. It is unrealistic to focus on the environmental issue to the detriment of the other dimensions. South Africa's energy crisis of 2007 and early 2008 clearly demonstrated the country's energy vulnerabilities and the economic consequences".
ISSUED ON BEHALF OF THE CHAIRMAN OF SANEA
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