Johannesburg - The government must make public all conditions of the R27.3bn loan made to Eskom by the World Bank, the Congress of SA Trade Unions (Cosatu) said on Friday.
Cosatu would not oppose loans in principle, as they were a legitimate source of revenue, and an alternative to tariff hikes which were crippling to poor households.
"We agree, however, with the National Union of Mineworkers' (NUM) call on both the government and Eskom to make public all the conditions attached to this World Bank loan".
This kind of loan often came with stringent conditions, Cosatu said.
"Indeed, the World Bank has a notorious record of using conditional loans, particularly to developing countries, to impose their neoliberal agenda and demand privatisation and opening up of markets to big, multi-national companies".
Cosatu shared NUM's concern that the conditions attached to the loan should not open up South Africa's energy sector to global competitors and stifle the country's desire to electrify all households in South Africa.
No strings attached
"The federation needs to be certain that there are no conditions which could lead to any form of privatisation, including the introduction of independent power producers into the industry and ending Eskom's monopoly in electricity generation".
Should there prove to be any such strings, Cosatu would oppose the loan.
"We remain opposed to privatisation of the country's basic infrastructure.
"In Eskom's case it will inevitably lead to even higher tariffs, retrenchments and worse service, as the new owners are driven only by the need to maximise their profits".
Late on Thursday night, the World Bank said in a statement its board of executive directors had approved the loan "to help South Africa achieve a reliable electricity supply while also financing some of the biggest solar and wind power plants in the developing world".
The loan was the bank's first major lending engagement with South Africa since the fall of apartheid 16 years ago.
- SAPA
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