Eskom is in need of a financial infusion and the World Bank may be the donor. Reports from the treasury say that the financial institution may give the South African utility $3.75 billion as soon as Q1 2010.
“We anticipate that the proposal for funding will go to the World Bank board by early next year. The comment I gave last year was an estimate and the figure was not confirmed in anyway. The negotiated amount with the World Bank is 3.75 billion dollars,” Eskom spokesman Thoraya Pandy told the press.
Some reports have the figure at around $5 billion, but Eskom has denied the amount was more than $3.75 billion. However, if Eskom fails to receive funding, a R300 billion expansion program may be halted – in addition to the several projects already forced to be abandoned or delayed.
Eskom says some of the cash would be used to finance alternative energy projects including wind and solar power, while around half of the infusion could go towards improving coal transportation.