http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.02
R/$ = 10.94Change: 0.03
Au 1235.52 $/ozChange: -1.40
Pt 1365.00 $/ozChange: -3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 06, 2012

Construction group homes in on SA’s renewables prospects

Back
Construction|Engineering|Nelson Mandela Bay|Africa|Basil Read|First Solar|MetroWind|Old Mutual|PROJECT|Projects|Renewable Energy|Renewable-Energy|TWP|Water|Africa|South Africa|Construction|Energy|Mining|Power Producers|Renewable-energy Capacity|Services|Transport|Eastern Cape|Mandela Bay|Digby Glover|Ian Curry|Infrastructure|Marius Heyns|Power|Water|Eastern Cape
Construction|Engineering||Africa|PROJECT|Projects|Renewable Energy|Renewable-Energy|TWP|Water|Africa||Energy|Mining|Services|Transport||Infrastructure|Power|Water|
construction|engineering|nelson-mandela-bay-city|africa-company|basil-read-company|first-solar|metrowind|old-mutual|project|projects|renewable-energy|renewable-energy-company|twp|water-company|africa|south-africa|construction-industry-term|energy|mining|power-producers|renewable-energy-capacity-industry-term|services|transport-industry-term|eastern-cape|mandela-bay|digby-glover|ian-curry|infrastructure|marius-heyns|power|water|eastern-cape-province-or-state
More Insight
© Reuse this



Construction group Basil Read has confirmed that, together with partners, it had submitted a solar photovoltaic (PV) bid under the Department of Energy’s second bidding round for the procurement of renewable-energy capacity from independent power producers (IPPs).

The South African government is in the process of procuring 3 725 MW of renew- ables capacity from IPPs, with some 2 309 MW still available for allocation after 28 preferred bidders, collectively representing 1 416 MW of potential capacity, were named in December.

A Basil Read-linked consortium, known as Metrowind, was included among the initial preferred bidders and the project had partici- pated in the National Energy Regulator of South Africa’s recent licensing hearings.

Basil Read had also acquired a 35% interest in Metrowind for R10-million and would be an equity participant in the project.

CEO Marius Heyns said work was well advanced to ensure that the 26 MW project, which was being supported by Old Mutual, reached financial closure by June, which would enable construction to begin during the second half of 2012. The wind farm would be developed in the Nelson Mandela Bay metropolitan area, of the Eastern Cape.

But he also confirmed that the group’s nascent energy unit had submitted a second bid, in conjunction with the BW Energy Corpo- ration, for a 60 MW solar PV development in Beaufort West.

Should the bid prevail, some 760 000 panels, supplied by First Solar, would be installed. Here too, the company had taken a 26% equity stake.

Basil Read Energy’s Ian Curry told Engin- eering News the company had decided to concentrate on a single bid during each round to raise the group’s prospects of success.

However, Basil Read might become even more “adventurous” during the third round, when the price and localisation thresholds were also likely to be increased.

Curry confirmed that the consortium had sharpened its pencil during the second round in order to improve on the price caps set for bidders. Tariffs for wind projects had been capped at below 115c/kWh and at 285c/kWh for solar PV and concentrating solar power. A cap of 107c/kWh had been set for biomass, 80c/kWh for biogas, 60c/kWh for landfill gas and 103c/kWh for mini hydro.

The focus currently was to move the Metrowind project to financial closure so that construction could start from July.

The wind development should result in engineering, procurement and construction workflow of R450-million for the group, while the solar PV projects could yield a R1.5-billion construction contract.

Heyns said that renewable energy was already featuring in the group’s R14-billion order book and was also a key feature in a project pipeline involving projects worth R18-billion.

Energy was also a key pillar in the diversification of Basil Read’s professional services unit, TWP, which had hitherto concentrated primarily on mining.

TWP CEO Digby Glover said energy had been integrated into Basil Read Matomo and was expected to be a material contributor to the unit’s revenue and earnings growth in the coming years.

Besides energy, Heyns expected the group would eventually benefit from South Africa’s R845-billion infrastructure programme. However, he stressed that the group was only expecting a construction sector recovery from 2013.

“There has been a slowdown in infrastructure projects. But, I must say, I feel very positive . . . and it’s clear that a lot of work is going to come out,” Heyns said, indicating that the potential projects spanned the water, transport, energy and town planning milieus.

Nevertheless, the immediate horizon remained challenging, as had been the case during 2011, when operating profit decreased by 24% to R280.9-million, margins fell from 6.9% to 4.5% and headline earnings declined 33.3% to R172.9-million.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
More
 
 
Latest News
Thembani Bukula
Updated 45 minutes ago National Energy Regulator of South Africa (Nersa) full-time member for electricity Thembani Bukula says the regulator is not anticipating an approach by Eskom for a “re-opener” of the current tariff determination, notwithstanding National Treasury’s indication that...
Updated 1 hour 47 minutes ago Leading South African aerospace company Aerosud Holdings announced on Wednesday that it had formed a strategic alliance with the Industrial Development Corporation (IDC). As a consequence, the IDC has taken a 26% shareholding in Aerosud Holdings. Aerosud Holdings has...
Updated 2 hours ago Eskom had failed to comply with a High Court order that it hand over documents related to the awarding of a R4 billion tender to Areva NP Proprietary, Westinghouse Electric Company said on Tuesday. "It is Westinghouse's view that Eskom has failed to comply with this...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks