U.S. Lawmakers Raise Concern About World Bank Loan to Eskom

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April 6 (Bloomberg) -- Three U.S. lawmakers whose committees oversee World Bank policy and funding asked the institution for more environmental and social commitments from Eskom Holdings Ltd. before lending the South African utility $3.75 billion to build one of the world’s largest coal-fired power plants.

In a letter to World Bank President Robert Zoellick, Representative Barney Frank and Senators John Kerry and Patrick Leahy sought assurances that electricity to the poor will be extended, that the use of renewable energy will increase and that state-owned Eskom will retrofit its facilities with more environmental protections.

The bank’s board is scheduled to vote on the Eskom deal April 8. The Washington-based poverty lender is seeking the backing of its shareholders for the loan, which environmental and civil rights groups oppose for pollution and distribution concerns.

“When the World Bank becomes engaged so prominently in a project of this nature, we believe issues of public policy that are within the bank’s development mandate should be specifically addressed,” the Democrats wrote in the March 26 letter obtained by Bloomberg News.

http://www.bloomberg.com/apps/news?pid=20601072&sid=aHZ_izvakz68