A Government Gazette notice published by the department of energy on 21 December has confirmed cabinet’s decision to move ahead with the 9,6GW nuclear procurement programme.
This means the department can now call for quotes for the tendering process to begin.
Russia, China, France, Korea, Canada and Japan are all vying to win the main nuclear contract, while there are also opportunities for local companies to win contracts for various infrastructure and construction tenders.
The above countries, excluding Japan and Canada, signed intergovernmental agreements this year ahead of the tender process. The two outstanding countries were planning on signing these agreements, too.
Until this point, there has been no official word from government that it had decided to move ahead with the programme.
Business Day reported on 14 December that cabinet approved the decision to go ahead just hours before Nhlanhla Nene was removed from his position as finance minister on 9 December.
Following the news report, acting cabinet spokesman Phumla Williams said she was not aware of this.
Analysts believe Nene was ousted for stalling the nuclear build programme, saying it was too expensive in the current economic climate.
He had allocated R200m in his mini budget this year for the departments of energy and finance to investigate the costing of the programme. There were no indications of this having produced any results.
Meanwhile, an environmental impact assessment (EIA) report by Eskom that has recommended Thyspunt as the preferred site to build a 4GW nuclear power station is almost complete and will be submitted to the department of environmental affairs in February 2016, said Deidre Herbst, Eskom’s environmental manager, on Thursday.
The Gazette notice released by energy minister Tina Joemat-Peterson, in consultation with the National Energy Regulator of South Africa, said her department would be the procurement agency. This was initially going to be Eskom’s responsibility, but was moved to the department earlier this year.
“The role of the procurement agency will be to conduct the procurement process, including preparing any requests for qualification, requests for proposals and/or all related and associated documentation, negotiating the power purchase agreements, facilitating the conclusion of the other project agreements, and facilitating the satisfaction of any conditions precedent to financial close which are within its control.”
The Gazette stated that the electricity must be purchased by Eskom “or by any successor entity to be designated by the Minister of Energy, as buyer (off-taker)”.
It says the electricity must be purchased from the “special purpose vehicle(s) set up for the purpose of developing the nuclear programme”. — Fin24
