**The World Bank is expected to announce later whether it will grant South Africa’s utility firm a $3.75bn (£2.45bn) loan for a huge power plant.**Eskom says the plant is need to help South Africa end power cuts.
But environmentalists and campaign groups say the World Bank should not finance Eskom’s plans.
The US, the largest lender to the World Bank, also wants assurances that the plant meets strict “no or low carbon” gas guidelines.
South Africa has been rationing power since last year because it is unable to cope with increasing energy demand.
Eskom said the new plant would go a long way in boosting energy supply not only to South Africa, but also other neighbouring countries.
This would be the second major loan for the construction of the plant.
Last year, the African Development Bank $ 2.77bn (£1.81 bn) to the company to build the Medupi power plant.
A group of 125 campaign organisations has sent a letter to the World Bank, arguing that the project would not bring electricity to the poor but would benefit large mining houses and smelters, reports say.
A complaint submitted this week to the World Bank’s independent complaint body, on behalf of residents living near Medupi power plant, claims the project violates World Bank policies, reports Talk Radio 702.
The plant is expected to be commissioned by February 2012.This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.