South Africa needs $3.75 billion for thermal power station project
6 April 2010
South Africa is scheduled to sign a loan agreement this week with the World Bank for a sum of 3.75 billion Dollars.
The funds will be used to finance a thermal power station project in the Province of Limpopo (North) for the account of Eskom Holding.
The World Bank will announce whether it will agree to the loan or not on 8 April next.
“In 16 years of democracy, South Africa has never borrowed from the World Bank. If we do not come to an agreement, we shall have to finance the project ourselves”, Finance Minister Pravin Gordhan declared at a press conference.
As well as this, Minister of Economic Development Ebrahim Patel stated at a seminar held at the end of March 2010 that the South African government will be investing about 136 billion Dollars in developing its infrastructure over the next five years, Reuters press agency reports.
The government is thereby hoping to create jobs and reduce poverty.