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US reviewing Eskom proposal

Mar 12 2010 15:25

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Johannesburg - The United States government's review of Eskom's proposal for a loan from the World Bank was "in process", the US Embassy in Pretoria said on Friday.

Earlier, at a media briefing, South Africa's Public Enterprises Minister Barbara Hogan indicated that the US would abstain from voting on the $3.75bn loan.

If awarded, most of the loan will go towards funding the coal-fired Medupi power station in Limpopo.

It has been opposed by environmental rights groups, who favour low-carbon economies.

"The Americans are under more pressure and they have indicated to us they're not going to vote against, but they'll abstain from voting.

"They're under particular pressures from their own lobbies," Hogan said.

In a terse statement, the US Embassy said the US Treasury was leading the US government's review of the Eskom proposal currently before the World Bank "and the development of a position that is consistent with administration policy and with the facts surrounding the project".

It said the US government had heard from several civil society groups, in both South Africa and Washington, which had raised concerns about the project.

It had also heard from Eskom and South African government representatives, who had argued its merits.

"The Eskom loan proposal will go before the World Bank's board of executive directors - where the US is one of 24 members," the embassy said.

- Sapa

 
 
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