No deal signed on procurement of nuclear power

The South African government has not entered into any deal or signed any contract for the procurement of the 9,600MW nuclear power, a senior government official said Monday.

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“The department reiterates that the procurement process … will only commence upon the issuance of the RFP for the 9,600MW nuclear power, as directed by Cabinet,” said Zizamele Mbambo, Deputy Director General for Nuclear Energy of the Department of Energy.

Mbambo issued the statement following media reports that the nuclear procurement program will officially begin on Sept. 30.

The Mail & Guardian reported last week that Shantan Reddy, son of businessman Vivan Reddy, was the recipient of a 171-million-rand (about 12-million-U.S.-dollar) contract by the Department of Energy. The contract appears to be the first transaction in the multi-billion-rand nuclear deal, despite earlier assertions by Energy Minister Tina Joemat-Pettersson that South Africa has not yet entered into any such a deal.

The procurement of all the transactional advisors and services providers has been conducted in a manner that is compliant and consistent with all applicable procurement prescripts, he said.

The SA cabinet has approved the Integrated Resource Plan 2010-2030, a plan that provides for the roll-out of the Nuclear New Build Program for 9,600MW nuclear power, which will be deployed by 2030.

The National Development Plan (NDP) instructs government to conduct thorough investigations on different aspects of the nuclear new build program before a procurement decision is taken, Mbambo said.

The NDP states that South Africa needs a thorough investigation into the implications of nuclear energy, including its costs, financing options, institutional arrangements, safety, environmental costs and job opportunities.

Mbambo said the government remains committed to ensuring energy security for the country through the roll-out of the nuclear new build program as an integral part of the energy mix. Enditem

Source: Xinhua/News Ghana

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