‘No conclusive data’ on feasibility of nuclear power

THERE are no conclusive figures to date on the financial affordability and social impact on procuring new nuclear plants for South Africa, according to Treasury.

In a response to a parliamentary question yesterday, Finance Minister Pravin Gordhan said studies released by the Department of Energy last week were based on limited infor mation and called for more research, seemingly contradicting energy deputy director- general Zizamele Mbambo’s claim that only an approach to the markets would be useful.

“These reports only contain preliminary observations, which were reached from limited infor mation. Extensive work is still required before substantive conclusions are reached,” Gordhan said in reply to a question from DA finance spokesperson David Maynier.

“A full cost-benefit analysis must be conducted which must include a comprehensive social and economic impact assessment before the feasibility, affordability and procurement strategy can be properly assessed by the Treasury.”

Gordhan said the Office of the Chief Procurement Offi- cer held discussions with the Department of Energy about the feasibility of the nuclear expansion programme last year. Following that, the finance ministry wrote to the department to convey its view, he said.

In September this year, the department sent Treasury a set of documents, including the reviews undertaken by its transaction advisers.

Ten days later, Treasury sent the department a letter “outlining Treasury’s assessment on the state of readiness of the procurement strategy”.

It planned to engage further with the department once it was able to submit more substantive documentation, he said.

Last week, the department briefed Parliament’s portfolio committee on energy on the preliminary studies, conceding it was doing so reluctantly because it believed releasing the information would skewer the tender process for a nuclear build.

The potential cost of nuclear has become a political battle point and Gordhan has maintained that he would not approve a nuclear build programme the country cannot afford. – ANA