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French Finance Minister calls for 'fully transparent' nuclear procurement process

Michel Sapin

Michel Sapin

Photo by Duane Daws

3rd February 2017

By: Terence Creamer

Creamer Media Editor

     

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French Minister of Finance and Economy Michel Sapin has urged the South African authorities to adopt a “fully transparent” approach to the procurement of new nuclear capacity, arguing that France is not afraid of transparency, or competition.

Speaking through a translator in Pretoria on Friday at the conclusion of a working visit to South Africa, Sapin expressed optimism that the process would be fair, despite ongoing reports Russia’s Rosatom had already been selected by the South African authorities.

He stressed that the process was still at its “beginning stages” and that France was currently satisfied that it remained “open and competitive”. “Otherwise it would be useless for us to respond,” he quipped.

Eskom released a request for information (RFI) for the ‘Nuclear New Build Programme’ on December 20 and, by January 31, had received indications from 27 entities – including a French consortium led by EDF – that they would be responding by the April 28 deadline set for the RFI.

EDF has also confirmed its response would also deal with the nuclear fuel cycle and the commercial production reactor, which could be procured by the South African Nuclear Energy Corporation, or Necsa.

The RFI was issued instead of the request for proposals (RFP) initially anticipated and Eskom stressed that the process did not amount to a competitive tender and would not create any financial commitments or obligations on it or government. Eskom also pointed out that the intention to submit a response to the RFI did not commit a company to submit a response to a potential future RFP.

Sapin confirmed that the issue of nuclear financing and affordability had been among the topics he had discussed with his counterpart, Finance Minister Pravin Gordhan, during the visit, which also included a meeting with Small Business Development Minister Lindiwe Zulu.

It was natural for South Africa to be “preoccupied” with the issue of affordability, and Sapin had sought to offer Gordhan insight into what “financing and guarantees” France could offer should its nuclear bid prevail. He also offered an exposition of France’s technical prowess in this area, while expressing the country’s willingness to use the programme to meet South Africa’s socioeconomic aspirations in the areas of skills development and localisation.

In return he urged Gordhan and the South African government to run a fully transparent process. “France is not afraid of competition and is not afraid of transparency. Whichever bid is best for South Africa should win,” the Minster said.

However, he also stressed that the bilateral business relationship between France and South Africa extended well beyond nuclear, with 360 French companies active in South Africa in sectors as diverse as transport and aerospace, to chemicals and consumer goods.

The working visit had been designed to consolidate the “strategic relationship” between the two countries, which Sapin assured would transcend any administration in France, left or right.

Africa as a whole, and not only francophone Africa, was a priority for France and the attention being given to the continent would not, thus, depend on the outcome of elections.

“All I know is that there will be someone that will not win and who will never win. In France, we have a strong majority that will block the extreme right, and I don’t confuse the extreme right with populism.”

Edited by Creamer Media Reporter

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