Johannesburg - National Treasury – and therefore the South African taxpayer – will carry the full risk of the $3.75bn (about R28.6bn) loan granted by the World Bank to Eskom in April.
This emerges from a written parliamentary response by Finance Minister Pravin Gordhan.
Dr Dion George (DA), who submitted the written question in parliament, said on enquiry that it was a mistake for National Treasury to carry the full guarantee without having imposed any conditions on Eskom.
The fact that government has to guarantee the entire loan shows that the World Bank has more confidence in the South African taxpayer than it has in Eskom, he said.
In terms of Treasury's conditions Eskom has to submit capital expenditure and management reports to Treasury every quarter. George believes this to be inadequate.
In his response Gordhan mentioned that the World Bank loan could be applied retrospectively for parts already purchased for Medupi, Eskom’s new coal-fired power station.
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