DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NCOP
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 352
DATE OF PUBLICATION: 17 September 2010
352. Mr D B Feldman (COPE-Gauteng) to ask the Minister of Public
Enterprises:
Whether the Government and Eskom have disclosed to the public all the
relevant information regarding certain onerous conditions in securing the
World Bank loan for the completion of the Kusile and Medupi power plants;
if not, why has the Government been so secretive regarding the conditions;
if so, what are the relevant details? CW448E
REPLY
All relevant information has been disclosed at various forums. The World
Bank Project Appraisal Document is also available on the Bankâs website, as
well as on Eskomâs website. There are no onerous conditions contained in
the World Bank loan. On the contrary the World Bank is effectively
concessionary in terms of tenor (final maturity 28½ years) and pricing
(Libor, plus 0.5% and a variable spread).
As with all responsible lenders, the World Bank conditions require Eskom to
comply with good corporate governance and live within international norms
of best practice and hence require information to be provided regularly.
Eskom has to comply with the International Accounting Standards in its
annual financial statements wherein Eskom has to disclose all relevant
information (especially onerous conditions, if any exist) on this and all
its other borrowings.