Friday, 01 June 2012 - World Bank agrees: MEDUPI poses social and environmental risk
groundWork, Friends of the Earth, South Africa
Earthlife Africa Johannesburg

Pietermaritzburg and Johannesburg, South Africa, 1 June 2012 – The World Bank Board has agreed that the development of the Medupi Power Station entails substantial environmental and social risks that have to be considered.  This was in response to the Inspection Panel's 2010 investigation called for by local residents and supported by Earthlife Africa (Jhb) [1] and groundWork, Friends of the Earth, South Africa [2].  This is a vindication of local people's concerns about the ongoing challengers with the development of Eskom's coal fired power station.

It was accepted by the Board that the South African governance systems – supposedly acting as a safeguard to protect peoples' environment and health - did not fully meet and comply with the Bank's policy.  This is specifically related to non-compliance and inconsistency in the following areas:
"(a) assessment of equivalence and acceptability, in particular on issues relating to assessment of cumulative impacts, independent expert oversight and capacity constraints; (b) impacts on air quality and health; (c) impacts on water resources; (d) impacts on public infrastructure and services, and (e) inadequate consideration and economic analysis of alternatives and risks, particularly with regard to water and air externalities."

Of concern however, is the fact that the Bank does not see it critical to call for immediate action when evidence of damage is already visible, but rather depends on future monitoring of the situation, such as air emissions and water transfer proposals. 

Bobby Peek, Director of groundWork: "Having visited the area in May, and witnessed for myself the sand erosion along the Mokolo River, it is clear that there is already damage to the environment which is impacting on people's livelihoods. Thus delaying action and waiting for monitoring which will result in irreversible damage."

Illegal sand mining along the river is taking place, and as recent as September 2011, in a meeting discussing a basic environmental assessment and National Environmental Management Act Section 24 G application, it is widely discussed.  Ms Malungani, of the Department of Economic Development, Environment and Tourism (LEDET) indicated in the meeting that: "The only thing that makes this thing (illegal sand mining) to be in the spotlight is the applicant's link with the construction of the Medupi Power Station."

The Bank's support of the project and the development of Medupi have opened the area up to become another Vaal Triangle, Highveld and south Durban.  Despite this reality, the Bank recognises that there are no provisions in South Africa law – or its own policies – that would require Eskom to manage the impacts created by its suppliers, particularly sand mining.

Makoma Lekalakala of Earthlife Africa (Jhb) warns that: "This loan and Medupi is the final wedge that is going to result in this place being the next sacrifice zone for elite development in South Africa.  If the existing Matimba Power Station is not providing regular electrification to the neighbouring community of Maropong, the added power of Medupi is not going to power homes but rather will power the expansion of the dirty industry in the area". 

Resource Generation SA, a subsidiary of Resource Generation Australia has already been granted permission to mine coal on farms near the Limpopo River, Sasol has a plan to build a coal to liquid plant near Medupi and the CIC Energy's Mmamabula Energy Project in neighbouring Botswana will result in another coal mine and 1200 megawatt power station used to power South Africa.

groundWork and Earthlife Africa (Jhb) will be visiting the area in June to meet with local people to discuss a plan of action for the way forward.


Bobby Peek, Director of groundWork at 033 342 5662 / 082 464 1383 or

Siziwe Khanyile, Air Quality and Climate Justice and Energy Campaign Manager of groundWork at 033 342 5662 / 073 830 8173 or

Makoma Lekalakala, Programme Officer of Earthlife Africa (Jhb) at 011 339 3662 / 082 682 9177 or

Tristen Taylor, Project Coordinator of Earthlife Africa (Jhb) at 011 339 3662 / 084 250 2434 or


[1] groundWork is an environmental justice organization working with community people from around South Africa and increasingly in Southern Africa on environmental justice and human rights issue focusing on Air Pollution, Waste and Environmental Health. groundWork is a member of Friends of the Earth International.

[2] Earthlife Africa Johannesburg seeks a better life for all people without exploiting other people or degrading their environment. We want to encourage and support individuals, businesses and industries to reduce pollution, minimise waste and protect our natural resources.