South Africa said a legal challenge to its award of a power supply contract worth an estimated R218-billion by DNG Energy was “without merit” and “self-serving”.
Absa, Investec and the Development Bank of Southern Africa indicated they could support a bid by a Turkish company to supply emergency power to South Africa, sources said.
A legal wrangle over a power supply contract worth an estimated R218-billion could derail the South African government’s attempts to ease electricity shortages.
A flurry of social media activity by online influencers appears to be an attempt to minimise the impact of negative media coverage of the Karpowership gas-to-electricity consortium.
Eskom doesn’t want to buy electricity from the company that won most of a government emergency power tender because it’s concerned about the cost and length of the contract, sources said.
DNG Energy, a South African gas company, has sued to halt the government’s award of emergency power supply contracts, alleging that the process was tainted by corruption.
Government’s proposed deal with Karpowership to buy electricity generated on its three floating power stations over a period of 20 years will expose consumers to considerable risk.
Karpowership, a unit of the Turkish Karadeniz Energy Group, is on track for its longest contract to date to supply power from vessels to South Africa in a deal worth as much as R218-billion.
South Africa has announced eight preferred bidders to provide emergency power as the state-run electricity monopoly continues to implement rolling blackouts that are weighing on the economy.
Government has issued a request for proposals to procure 2GW of emergency power, a step needed to help plug a severe energy shortage, the department of energy said on Saturday.