Johannesburg — Eskom needs about R80bn as a funding shortfall worsens, and reports from the Treasury say the World Bank may agree to lend the state utility about $3.75 billion by early next year.

Eskom spokesman Thoraya Pandy told Business Day Online that talks with the World Bank are still underway and are progressing well.

"We anticipate that the proposal for funding will go to the World Bank board by early next year. The comment I gave last year was an estimate and the figure was not confirmed in anyway. The negotiated amount with the World Bank is 3.75 billion dollars."

Reuters reports the figure could reach $5bn in total but Eskom officials and the Treasury denied the amount was more than $3,75 bn.

Earlier this month the World Bank said on its website that Eskom had applied for the initial 3 tranches of the loan, amounting to $3,75 billion, to fund projects at its Medupi power station as well as renewable energy and low-carbon energy efficiency programmes.

National Treasury spokesperson Thuraya Panydy has confirmed the details of the talks, calling them advanced.

If Eskom can't secure funding, a 300 billion rand expansion program may be frozen.

Eskom wants to triple tariffs over the next 36 months, but business, manufacturing companies and mining houses have all warned that will lead to accelerated job loss.

Unions have also slammed the increase, as it's former CEO Jacob Maroga left the utility after Eskom reported a poor 2008/9 financial year.

Eskom says some of the cash would be used to finance alternative energy projects including wind and solar power, while around half of the $3,75 could go towards improving coal transportation.

A lack of coal deliveries was one of the main causes of the power outtages suffered across South African in early 2008.