30 November 2009 - The African Development Bank (AfDB) has loaned South African state utility Eskom EUR1.86bn euros ($2.81bn) to finance the construction of the Medupi coal fired power project.

The bank said the 4800 MW Medupi power plant, which would be Eskom's first new baseload power plant in more than two decades, would significantly boost the energy capacity of South Africa and the southern African region.

"South Africa's energy problem has been a major impediment to Africa's leading economy. This operation should be seen in the context of the bank's ongoing efforts to help Africa bridge the infrastructure gap," AfDB president Donald Kaberuka said.

Medupi is in South Africa's northern Limpopo Province, and is expected to be commissioned by February 2012.