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
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      South Africa is behind its neighbours on the plumbing of digital IDs

      South Africa is behind its neighbours on the plumbing of digital IDs

      11 September 2026
      South Africa to extradite US cyberfraud-gang suspects to US

      South Africa to extradite cyberfraud-gang suspects to US

      11 September 2026
      Newspaper group Caxton deploys AI editors

      Newspaper group Caxton deploys AI copy editors

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 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.com
      • 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
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    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

    Load shedding is over - and that's exposing a new energy crisis

    Load shedding is over – and that’s exposing a new energy crisis

    23 July 2026
    Morocco overtakes South Africa as Africa's top industrial power

    Morocco overtakes South Africa as Africa’s top industrial power

    29 June 2026
    South Africa cuts red tape for dealmakers

    South Africa cuts red tape for dealmakers

    10 May 2026
    Company News
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    So, who exactly will buy Apple's R50 000 iPhone Duo

    Why Apple can’t tell you who its R50 000 iPhone is for

    11 September 2026
    South Africa is behind its neighbours on the plumbing of digital IDs

    South Africa is behind its neighbours on the plumbing of digital IDs

    11 September 2026
    South Africa to extradite US cyberfraud-gang suspects to US

    South Africa to extradite cyberfraud-gang suspects to US

    11 September 2026
    Newspaper group Caxton deploys AI editors

    Newspaper group Caxton deploys AI copy editors

    11 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}