DNG Energy, a South African company that’s aiming to develop liquefied natural gas facilities, said it has taken legal action to have the government’s award of emergency power generation contracts halted.
Last month, the government awarded the right to develop 1 845 mw of generation capacity to eight companies at a cost of R45-billion by August next year to alleviate intermittent power shortages. The award attracted criticism mainly because Turkey’s Karpowership won the bulk of the contracts and the right to produce electricity from power ships moored off the South African coast for 20 years.
DNG is seeking the “interdicting, review and setting aside of the decision of 18 March,” the company said in a response to queries Thursday, declining to comment further. DNG was an unsuccessful bidder in the round, having backed three gas projects itself.
The award of the contracts was designed as a stop gap as the country plans to launch a number of tenders for the right to develop renewable, gas, coal and battery power projects to solve its power woes. Eskom Holdings, the State power company, is unable to meet national demand.
News24, a South African news website, earlier reported that the company made allegations of corruption in the award of the contracts and said they involved a businessman linked to South Africa’s Energy Minister Gwede Mantashe.
“People who go to court are answered in court,” Mantashe said when spoken to by Bloomberg. “Editors are not judges.”