Busa said that it had consistently emphasised the need for a new "mix" of tariff rises, borrowings and equity financing from government, the utility's sole shareholder, to ensure future security of electricity supply on an affordable basis.
"Failure to borrow sensibly for Eskom's needs will either mean yet higher electricity tariffs or the risk of load shedding if Medupi is not completed in time," the business body said in a statement.
Last week, the National Energy Regulator of South Africa (Nersa) approved average tariff increases of about 25% a year for the three-year period, starting April 1, 2010.
The approval, which was a full ten percentage points lower than that which was requested by the utility, would result in an increased borrowing requirement as Eskom moves ahead with a R400-biillion-plus build programme to add more than 10 000 MW of generation capacity by 2017/18.
"Accessing a World Bank loan is appropriate for a developing country like South Africa, which is both under-borrowed internationally and anxious to build necessary infrastructural capacity," Busa said.
However, several South African environmental groups are strongly campaigning against the proposed loan, which they argued would contravene the World Bank's assertion it was a climate-friendly financier.
Busa contends, though, that the Eskom project appeared to meet the World Bank's criteria for supporting coal power projects, in line with ‘Development and climate change: A Strategic Framework for the World Bank Group'.
"Busa is convinced that it is a necessary additional source of funding which South Africa cannot afford to forego."
Busa added that it was convinced that the concerns raised could be addressed through negotiations with the World Bank, as was the case with the R20,7-billion loan granted by the African Development Bank in November 2009.
The World Bank is expected to make an announcement on the Eskom loan decision during March.
