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In the dusk of COP17, a leaked World Bank Inspection Panel (IP) report has pointed to a number of issues of concern around environmental impacts, either directly or indirectly associated with the building of Medupi power station in Limpopo province. The report suggests that the World Bank failed to fully consider all the environmental impacts of Medupi when deciding to provide the controversial $3.75 billion loan to Eskom for the building of the 4800MW power station. Among other things, it raises issues about the compliance capacity of the Departments of Mineral Resources and Water Affairs, and threats to security of water supply to water users. In light of this report, the DA calls on the Minister of Water and Environmental Affairs to lead a major compliance audit of the building of Medupi power station, and its associated impacts.

I will today write to the Minister asking her to coordinate actions by the compliance officers of the two Departments that report to her: the Department of Environmental Affairs and the Department of Water Affairs. These Departments need to investigate the issues raised in the World Bank’s report, to determine whether any rectifications can be made and whether any directives should be issued. In addition, I will ask that the Minister make a public statement on the findings of her Departments’ compliance action.

It is acknowledged that the World Bank report in question is an internal report for that organisation. The Minister should not ignore it though. A report from an international institution of the standing of the World Bank, whether internal or not, that casts doubt on aspects of environmental governance in South Africa, should be treated by the Minister as a threat to the reputation of her Departments.

Among other things the WB internal report says the following:

• It suggests that for the building of Medupi there are a number of shortcomings in the EIA and the Record of Decision.
• “The sequencing of the EIA process raises a number of questions with regards to the adequacy of the assessment, evaluation and mitigation phase.”
• With regards to the environmental management plan for the construction and operation of Medupi it says the scope of the plan is vague. “Actions are generalized and performance targets are absent in many cases.”

The World Bank report also places a high emphasis on the need to consider associated impacts of the building of Medupi. It considers the expansion of the Grootgeluk mine to supply Medupi with coal, additional river based sand excavation from the Mokolo river for Medupi construction, and phase 1 and 2 of the Mokolo-Crocodile (west) Water Augmentation Scheme as associated impacts. All these projects are governed by their own environmental authorization processes, but almost certainly would not have happened if the construction of Medupi had not been approved.

Experts contributing to the WB report made the following remarks:

• “Insufficient attention appears to have been given in the Project’s analyses of water supply to the unpredictability and variations in flow in the Mokolo river and to the existing rights and level of water use.”
• “The Panel observes that plans for Medupi make inadequate provision to minimize and remedy adverse impacts on water resources in the Mokolo river basin.

The Minister needs to do a compliance audit of Medupi, and all these associated impacts, particularly the impacts on water.

As an aside, it is worth pointing out that it is the loan that is the subject of this internal World Bank report that the DA lobbied the World Bank about in March 2010, arguing that the loan should not be provided unless the ANC and its front companies divest themselves entirely of any stake in Hitachi Africa. Hitachi Africa, which is a significant contractor in the building of Medupi, is 25% owned by the ANC’s investment arm, Chancellor House. We trust that the Minister of Water and Environmental Affairs will show no fear or favour in conducting the requested compliance actions on the project.