29 July 2010
The Panel was given the green light today to conduct a full investigation into alleged policy violations in the World Bank's loan to South African power utility Eskom based on a complaint from local communities, who allege that the project will result in significant harms to their health, environment and livelihoods.
In April 2010, the World Bank approved the $3.75 billion loan to Eskom, primarily for the construction of the 4800 MW Medupi coal plant in South Africa's Limpopo Province. The loan attracted tremendous opposition from civil society in South Africa and abroad, which generated sufficient pressure to instigate one of the most contentious Board discussions in living memory.
Local opposition to the project culminated in a complaint to the Inspection Panel on April 6, submitted by South African NGOs Earthlife Africa and groundWork on behalf of Limpopo residents, citing fears over health impacts from air pollution, constrained access to water and livelihood impacts from land and water degradation. In addition, they argue, plans for several new coal mines and plants in the area will only compound the existing problems facing the communities; cumulative effects the World Bank failed to take into consideration in its assessment of the project.
The Panel is expected to produce a report on its findings in early 2011.
Official Documents
Request for Inspection, April 6, 2010
Management's Response to Request for Inspection, May 25, 2010
Inspection Panel Eligibility Report, June 28, 2010