Washington — The World Bank Board supports the Government of South Africa's efforts to promote long-term energy security and a low carbon transition with a $1 billion Development Policy Loan . The loan endorses a significant and strategic response to South Africa's ongoing energy crisis, and the country's goal of transitioning to a just and low carbon economy.
The operation supports reforms in two critical areas. First, it facilitates restructuring of the power sector through the unbundling of South Africa's power utility, Eskom. It supports the opening of the power market and aims at improving Eskom's efficiency by redirecting its resources toward investments in transmission and maintenance of existing power plants.
"We are pleased to support South Africa's government, which has taken decisive reforms to address the challenges posed by the energy crisis. These reforms will benefit the people of South Africa—particularly the most vulnerable households,—the economy, the environment, and advance the energy transition," says Marie Francoise Marie-Nelly, World Bank Country Director for South Africa.
The operation will also contribute to gradual reductions in water and air pollution, as a result of reduced reliance on coal for power generation. This is anticipated to lead to substantial improvements in the quality of life of South African households in the long term. South African authorities will also receive technical assistance to identify future reforms necessary to manage the social costs associated with the decommissioning of coal-fired power.
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Source: ReutersAfrica - 🏆 31. / 53 Read more »