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Cape Town - Responding to a parliamentary question from Phillip Dexter of the Congress of the People, Public Enterprises Minister Barbara Hogan has given more details of the World Bank "specific investment loan" which will be used to finance the Medupi power station.
Dexter was asking about the transparency of the project.
In a written reply given on Wednesday, Hogan explained that she, with the concurrence of Finance Minister Pravin Gordhan, has guaranteed the loan which will be disbursed against expenditures incurred in the project, or components of them.
"The World Bank will therefore only effect payments over a period of time as the project milestones are met," she said.
"Eskom will be required to submit regular reports to both the World Bank and the department of public enterprises. In addition, Eskom must also submit its annual audited report which is compiled by its external auditors."
She added that in the interest of transparency, a detailed and comprehensive project appraisal document on the Medupi plant is available on the World Bank website. The information can be accessed at www.worldbank.org by searching under the Project Document portal (Power).
The website also contains information on the World Bank's lending policies. In addition, the department of public enterprises has provided further information on the loan and this can be accessed at www.dpe.gov.za.
Hogan said that Eskom has secured funding from other development funding institutions, such as the African Development Bank. The terms and conditions stipulated in the signed loan agreements indicating eligible expenditure and disbursement profile will be monitored and implemented in accordance with the agreements.
- I-Net Bridge
Dexter was asking about the transparency of the project.
In a written reply given on Wednesday, Hogan explained that she, with the concurrence of Finance Minister Pravin Gordhan, has guaranteed the loan which will be disbursed against expenditures incurred in the project, or components of them.
"The World Bank will therefore only effect payments over a period of time as the project milestones are met," she said.
"Eskom will be required to submit regular reports to both the World Bank and the department of public enterprises. In addition, Eskom must also submit its annual audited report which is compiled by its external auditors."
She added that in the interest of transparency, a detailed and comprehensive project appraisal document on the Medupi plant is available on the World Bank website. The information can be accessed at www.worldbank.org by searching under the Project Document portal (Power).
The website also contains information on the World Bank's lending policies. In addition, the department of public enterprises has provided further information on the loan and this can be accessed at www.dpe.gov.za.
Hogan said that Eskom has secured funding from other development funding institutions, such as the African Development Bank. The terms and conditions stipulated in the signed loan agreements indicating eligible expenditure and disbursement profile will be monitored and implemented in accordance with the agreements.
- I-Net Bridge
