Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Amazon ups the ante in SA video streaming - Robert Koen

      Amazon ups the ante in SA video streaming

      3 June 2026
      Canal+ lists on the JSE in first for a French company - Maxime Saada

      Canal+ lists on the JSE in first for a French company

      3 June 2026
      Microsoft moves to remake computing around AI - Jensen Huang and Satya Nadella

      Microsoft moves to remake computing around AI

      3 June 2026
      Amazon's long game in South Africa

      Amazon’s long game in South Africa

      3 June 2026
      Amazon Prime launched in South Africa

      Amazon Prime launched in South Africa

      3 June 2026
    • World
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Luce lit: Ferrari unveils its first electric car

      Luce lit: Ferrari unveils its first electric car

      26 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » R218-billion Karpowership deal faces further scrutiny

    R218-billion Karpowership deal faces further scrutiny

    By Agency Staff2 June 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa’s plans to tap emergency power from vessel-based plants faces another potential snag, with business groups questioning whether proper processes are being followed to establish the necessary infrastructure.

    The government in March selected Turkey’s Karpowership as a preferred bidder to supply about 1.2GW of electricity, a contract worth an estimated R218-billion over two decades. It will require floating storage and re-gasification units to be moored in the Richards Bay, Ngqura and Saldanha Bay ports and the construction of pipelines and terminal facilities to bring the gas ashore.

    Legal firm Bowmans, which was contracted by lobby group Business Leadership South Africa to evaluate whether approval from the Transnet National Ports Authority would be compliant with the law, identified possible shortcomings in the process.

    One possible solution would be to change the law to permit the port authority to act on a ministerial directive…

    Licensing legislation requires the authority to follow a “fair, equitable, competitive and cost-effective” procedure when establishing any port infrastructure, which would normally be accompanied by a full tender process, Bowmans said in a copy of its legal opinion. While the legal firm was informed that the port authority plans to obtain a directive from the transport minister enabling it to bypass the requirement, it said neither the harbour authority nor the minister had the requisite powers to do that.

    High risk

    One possible solution would be to change the law to permit the port authority to act on a ministerial directive, but doing so could attract a constitutional challenge, according to Bowmans. Allowing the Karpowership projects to proceed and defending them in court based on an interpretation of the existing rules was considered “a high-risk strategy, which would stand a good chance of failing”, it said.

    Busi Mavuso, BLSA’s CEO, confirmed that her organisation had sought Bowmans’s opinion but declined to comment on the details. Ayanda Mantshongo, the port authority’s manager of corporate affairs, didn’t answer calls to her mobile phone.

    Karpowership said while it was unaware of the legal opinion, it had engaged with the port authorities after its selection as a preferred bidder and it was working through the technical specifications. Clarity was being awaited from the transport ministry on securing a determination that will allow the work to proceed, it said in a written response to questions.

    South Africa’s economy has been hobbled by electricity shortages for more than a decade, and any delays to the government’s emergency procurement programme would exacerbate the problem. Its choice of Karpowership as a preferred bidder has already been challenged in court by DNG Energy, which says the selection process was unlawful and it should get the contract instead.

    Karpowership, a unit of the Karadeniz Energy Group, maintained that it won the contract fairly. The state also rejected DNG’s allegations in court papers it filed in response to the case.

    Business Unity South Africa, another business lobby group, said it was aware that the approach followed in approving the liquefied natural gas infrastructure in the ports posed a legal risk.

    “Busa remains concerned that this will again cause a delay in finalising these contracts and prevent this much-needed power from coming online,” Cas Coovadia, the group’s CEO, said in a 19 May letter to Thabo Mokoena, the director-general of the department of mineral resources & energy.

    “This will have dire consequences on the confidence levels of international investors and foreign direct investment with the concomitant impacts on South Africa’s already strained economy and development,” Coovadia said.  — Reported by Antony Sguazzin and Mike Cohen, (c) 2021 Bloomberg LP

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Bowmans DNG Energy Karpowership top Transnet
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleThe long arm of Sars will reach crypto investors
    Next Article Huawei launches HarmonyOS for smartphones

    Related Posts

    South Africa cuts red tape for dealmakers

    South Africa cuts red tape for dealmakers

    10 May 2026
    Green shoots are breaking through South Africa's economic static

    Green shoots are breaking through South Africa’s economic static

    8 December 2025
    Court torpedoes R200-billion Karpowership plan

    Court torpedoes R200-billion Karpowership plan for good

    31 July 2025
    Company News
    Finding the next Sandton - AfriGIS

    Finding the next Sandton

    3 June 2026
    Data centre summit returns to Sandton this June

    Data centre summit returns to Sandton this June

    3 June 2026
    How telematics keeps fleets safe, efficient and compliant - Tracker

    How telematics keeps fleets safe, efficient and compliant

    3 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Finding the next Sandton - AfriGIS

    Finding the next Sandton

    3 June 2026
    Amazon ups the ante in SA video streaming - Robert Koen

    Amazon ups the ante in SA video streaming

    3 June 2026
    Data centre summit returns to Sandton this June

    Data centre summit returns to Sandton this June

    3 June 2026
    How telematics keeps fleets safe, efficient and compliant - Tracker

    How telematics keeps fleets safe, efficient and compliant

    3 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}