“By making this decision, the World Bank has shown, quite clearly, that it has no regard for the state of the world’s climate and environment, the future of South Africa, and economic principles of transparency and corruption” state the organizations in a communiqué issued Thursday. “The World Bank is not a responsible lender”, they add.

Eskom generates approximately 95 per cent of electricity used in South Africa and around 45 per cent of the energy available in the continent, according to the company´s website. Eskom generates, transfers and distributes electricity to industrial, mining, commercial, agricultural and residential customers.

Medupi power plant in Lephalale will have an installed capacity of 4.788 megawatts. The first of its six units will be ready in 2012 and the last one in 2015.

According to Earthlife Africa Johanneburg and Groundwork Friends of the Earth South Africa, the coal power station will put out about 30 million tons of CO2 per annum, at a time when the world desperately needs to reduce global greenhouse gas emissions, the cause of climate change. This loan shows that the World Bank continues worsening the climate crisis instead of helping developing economies to use clean and ultimately cheaper alternatives, such as wind and solar.

Local and international research found that Southern Africa will be one of the hardest hit areas of the world, with droughts, extinction of species, food shortage and spreading of diseases such as malaria.

Tristen Taylor, Project Coordinator of Earthlife Africa Jhb, said, "Twenty years from now, people will look back and see this loan as a missed opportunity to change the world for the better. Eskom and the World Bank have made a monumental failure to appreciate not only the dire circumstances that humanity finds itself in but also the possibility of alternative, cleaner, and more efficient development. Today’s children will judge them harshly in the years to come."

Meanwhile, Bobby Peek, director of GroundWork, Friends of the Earth South Africa warned that “the environmental and social cost of this development will impact on all South Africans as three major water catchments, the Limpopo, Vaal and Senque Rivers are all going to have their water diverted for Medupi and future power stations. (….)Not only is this area going to be a sacrifice zone, the entire country will, and the World Bank knows this but chooses to ignore it. They will be held accountable.”

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