Question n352
Mr D B Feldman (COPE-Gauteng) to ask the Minister of Public Enterprises:
Whether the government and Eskom have disclosed to the public all the relevant information regarding certain onerous conditions in securing the World Bank loan for the completion of the Kusile and Medupi power plants; if not, why has the government been so secretive regarding the conditions; if so, what are the relevant details?
Reply:
All relevant information has been disclosed at various forums. The World Bank Project Appraisal Document is also available on the Bank’s website, as well as on Eskom’s website. There are no onerous conditions contained in the World Bank loan. On the contrary the World Bank is effectively concessionary in terms of tenor (final maturity 28½ years) and pricing (Libor, plus 0.5% and a variable spread).
As with all responsible lenders, the World Bank conditions require Eskom to comply with good corporate governance and live within international norms of best practice and hence require information to be provided regularly.
Eskom has to comply with the International Accounting Standards in its annual financial statements wherein Eskom has to disclose all relevant information (especially onerous conditions, if any exist) on this and all its other borrowings.
Source: Department: Public Enterprises
