Nuclear deal costs to be revealed at bidding phase

THE government is steaming ahead with the country’s multibillion-rand nuclear build programme as it has undertaken sufficient technical evaluation to support its case that it is a sound investment for South Africa‚ says Department of Energy deputy director-general Zizamele Mbambo.

However‚ the cost of the programme remained under wraps and would only be known in two weeks‚ when the bidding stage gets under way.

Although the cost of the nuclear build was a closely guarded secret‚ Mbambo insisted on Wednesday bidding would be “open‚ transparent and competitive”.

He was speaking on the sidelines of a parliamentary portfolio committee visit to the Pelindaba facility of the Nuclear Energy Corporation of South Africa.

Studies into‚ among others‚ funding models and localisation across the procurement chain would form the basis of negotiations with bidders.

The procurement process and selection of one or more strategic partners are expected to be completed this year‚ for a programme whose price estimate has been pegged at up to $100-billion.

Six to eight reactors are expected to be procured‚ with a collective 9.6GW generating capacity.

Bids are due to start this quarter and Rosatom‚ Areva‚ Électricité de France‚ Westinghouse Electric‚ China Guangdong Nuclear Power Holding and Korea Electric Power have shown interest.

Critics have flagged cost over-runs and have torn into the government for the secrecy around the programme and lack of information on how it will be financed.

The parliamentary committee is in Gauteng to visit energy institutions and facilities this week as part of its oversight function.

Wednesday’s visit was intended to gauge the corporat preparedness.

Committee chairman Fikile Majola said MPs would push for maximum transparency when it came to the nuclear deal.

“There may be issues of confidentiality; where they exist they must be explained. But I think we must have an open discussion within society over the necessity of nuclear energy‚” Majola said.

But‚ once built‚ nuclear energy would be safer and costeffective.

“From the side of the portfolio committee we want to speak openly with regard to the nuclear deal so it is not a secret deal. The people of SA have got to deal with the pros and cons of such a big deal‚” said Majola.

DA MP Gordon Mackay questioned the corporation’s financial preparedness to assume new roles‚ and whether there was a conflict of interest in the corporation advising the state on the deal. — BDlive