South African energy ministry says nuclear process remains on track

7th April 2016

By: Reuters

  

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South Africa's energy ministry rejected an opposition party claim on Wednesday that the process to procure six new nuclear power plants to help overcome chronic electricity shortages had been put on hold. Africa's most industrialised economy was expected to finalise some requirements for its nuclear expansion by April, with Russia and China the front-runners to build the new power stations, Reuters reported in February.

Pretoria has earmarked billions of rand for increases in power generation but the price tag of up to R1-trillion ($66-billion) for 9.6 GW of nuclear power by 2030 has raised concerns over whether the plan is affordable.

"The status quo remains. South Africa still has a nuclear procurement process," energy ministry spokesman Thabo Mothibi told Reuters.

The opposition Democratic Alliance earlier said that Energy Minister Tina Joemat-Pettersson informed a parliamentary committee that an April 1 deadline in the procurement process had not been met, and that no new date had been set.

The Democratic Alliance said that meant "the procurement process is now in limbo".

"The minister did not give that indication," ministry spokesman Mothibi said, adding that it would probably issue a statement on Wednesday to clarify what the minister had relayed to the parliamentary committee.

He said the minister had assured the committee that "the process will be subjected to the strictest scrutiny possible".

Fears the nuclear project could be the most expensive procurement in South Africa's history, and that decisions could be made behind closed doors without the necessary public scrutiny, have been raised by the opposition.

The government has said the procurement process would be conducted in a transparent manner.

South Africa's cash-strapped power utility Eskom, which relies heavily on coal for electricity generation, is scrambling to keep the lights on and raise the capital needed to build new coal-fired units and maintain its existing fleet of plants.

Edited by Reuters

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