The World Bank has approved the granting of a R27 billion loan that will help the state power utility Eskom to build its Medupi Power Station in Limpopo.
In a press statement, the World Bank says its board of executive directors had approved the loan ‘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’.
The bank further says that the loan is its first major lending engagement with South Africa since the fall of apartheid 16 years ago.
"The loan is provided to South Africa's power utility, Eskom, and is brought about by unique circumstances including South Africa's energy crisis of 2007 and early 2008, and the global financial crisis that exposed the country's vulnerability to an energy shock and severe economic consequences," it explains.
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