26/12/2015 – ACDP concerned re Cabinet decision to go ahead with nuclear procurement programme

January 2, 2016

Statements

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ACDP concerned re Cabinet decision to go ahead with nuclear procurement programme

* says building of more nuclear power stations will not only be financially disastrous but potentially disastrous ito environment aswell.

* decision goes against global trends and not based on available information.

ACDP MP Cheryllyn Dudley said today that “The ACDP does not support the building of more nuclear power stations which we believe will not only be financially disastrous but potentially disastrous in terms of the environment as well. We believe this decision which goes against global trends is not based on available information.”

A Government Gazette notice released by the Department of Energy on December 21 has confirmed Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme.  This means the department can now call for quotes for the tendering process to begin.

Russia, China, France and South Korea, Canada and Japan are all vying to win the main nuclear contract, while there are also opportunities for local companies to win contracts for various infrastructure and construction tenders.

Dudley said “The ACDP had welcomed Finance Minister Pravin Gordhan’s opening address as minister, indicating that government would proceed with a formal procurement process, only if it was affordable – this is a seriously contentious issue!”

An environmental impact assessment (EIA) report by Eskom that has recommended Thyspunt as the preferred site to build a 4 000 MW nuclear power station is almost complete and will be submitted to the Department of Environmental Affairs in February 2016.

The procurement agency was initially going to be Eskom’s responsibility, but was moved to the Energy department earlier this year. The role of the procurement agency will be to conduct the procurement process, including preparing any requests for qualification, requests for proposals and/or all related and associated documentation, negotiating the power purchase agreements, facilitating the conclusion of the other project agreements, and facilitating the satisfaction of any conditions precedent to financial close which are within its control.

The Gazette states that the electricity must be purchased by Eskom “or by any successor entity to be designated by the Minister of Energy, as buyer (off-taker)”.

It says the electricity must be purchased from the “special purpose vehicle(s) set up

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