US Abstains From Vote On World Bank's Eskom Project
- By Meena Thiruvengadam Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- The U.S. has chosen not to participate in a World Bank vote on whether to provide the South Africa public utility company Eskom with a $3.75 billion loan, the bulk of which would be used to construct a new coal-fired power plant by the utility Eskom. The Treasury Department said the U.S. abstained from Thursday's vote because of concerns about how the planned Medupi power plant, which would produce "significant" greenhouse gas emissions, could impact the environment. "Without actions to offset the carbon emissions of the Medupi plant, the project is incompatible with the World Bank's strategy to help countries pursue economic growth and poverty reduction in ways that are environmentally sustainable," Treasury said in a statement released Thursday. The U.S. also expressed concerns about Eskom's procurement process and pollution mitigation efforts. It noted that the planned project isn't in line with the Obama administration's new coal-lending guidelines. Still, Treasury said, "We recognize that South Africa faces limited options that could provide the required energy base for South Africa and the region in lieu of the project, and that there is a lack of alternative private financing options in the wake of the financial crisis." The U.S. is pushing the World Bank to consider not lending funds middle-income countries for coal projects that would result in carbon emissions increases. -By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629; meena.thiruvengadam@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=0YjWTigZyL%2FVf6eKmTKSxA%3D%3D. You can use this link on the day this article is published and the following day.
