Lack of trans­for­ma­tion in power trade de­cried

Pretoria News Weekend - - NEWS -

POWER util­ity Eskom must en­sure that all out­stand­ing con­tracts for in­de­pen­dent power pro­duc­ers (IPPs), un­der the Bid Win­dow 3. 5 and 4 must be ready be­fore end of next month, En­ergy Min­is­ter Mmamoloko Kubayi said yes­ter­day.

“A f t e r lengthy de­lib­er­a­tions, we came to a con­clu­sion on the fol­low­ing ac­tions: that the PPA ( Power Pur­chase Agree­ment) for Bid Win­dow 3. 5 and Bid Win­dow 4 will be signed by the end of Oc­to­ber 2017; the Depart­ment of En­ergy through the IPP of­fice to en­gage with all af­fected par­ties for Bid Win­dow 3. 5 and Bid Win­dow 4 to re-ne­go­ti­ate not above 77c per kilo­watt hour,” Kubayi told a me­dia brief­ing in Pre­to­ria.

She said this ar­range­ment would as­sist in re­duc­ing the re­quire­ments for ad­di­tional gov­ern­ment guar­an­tees which would have a neg­a­tive im­pact given the cur­rent eco­nomic cli­mate and con­straints in the fis­cus.

“(We came to the con­clu­sion that) Eskom should en­sure that all con­tracts are in place for sign­ing on Oc­to­ber 28, 2017, and that I, as the min­is­ter of en­ergy, will meet with all IPPs par­tic­i­pants in all bid win­dows to dis­cuss is­sues of con­cern from IPP and for gov­ern­ment to give feed­back on con­cerns be­fore the date of the sign­ing.”

Kubayi s aid t here have been is­sues raised with gov­ern­ment re­gard­ing the IPPs, and those mat­ters will need to be re­solved.

“O f i mpo r t a n c e ( among the is­sues raised) is the lack of t r a ns f o r ma­tion, par­tic­u­larly re­gard­ing lo­cal own­er­ship of some of these projects.

“This has to be re­con­sid­ered and ad­e­quately ad­dressed. Al­lo­ca­tion of projects and the own­er­ship struc­ture must be in line with South African trans­for­ma­tion poli­cies,” said Kubayi.

She said there was also need to “re­view” the is­sue of loan con­di­tions given to black South African par­tic­i­pants.

“Lastly, there is need to re­struc­ture the com­mu­nity trust div­i­dends,” said Kubayi. – ANA

Of im­por­tance is the lack of trans­for­ma­tion, par­tic­u­larly re­gard­ing lo­cal own­er­ship of some of these projects

Kubayi Mmamoloko

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