More work before SA goes nuclear, says Gordhan
THE NEW nuclear build programme is still in doubt as questions on funding remain unresolved by the government.
National Treasury does not have the funds for the project despite Eskom pushing ahead with plans to publish the Request for Proposals this month to begin with the implementation of the project in 2025.
It was reported that the Treasury told Eskom that its R350 billion guarantee for its build programme would not cover nuclear.
The portfolio committee on energy in the National Assembly said this week it would appoint a panel of experts to investigate costs and other implications.
The committee said the panel would conduct public hearings early next year. It would include experts who support nuclear and those opposed to it, as well as conduct public hearings.
President Jacob Zuma has said South Africa would undertake the nuclear programme if the scale and scope was affordable.
Finance Minister Pravin Gordhan said the department of energy had undertaken a feasibility study to determine the cost.
Eskom has been appointed by the cabinet to be the implementing agent.
Recently, Eskom acting chief executive Matshela Koko told journalists the programme would be implemented by 2025.
This flies in the face of the review by the Department of Energy that postponed the implementation of the programme to 2037.
In its initial plans the department anticipated that the first nuclear power plant would come on stream in 2022 and the last one in 2029.
But Gordhan said it shared its findings on the cost implications for nuclear with officials from the department of energy.
It said the department had not yet completed a cost-benefit analysis.
“As a result, a detailed assessment of the feasibility and the affordability of the nuclear new build programme cannot be undertaken at this stage,” said Gordhan.
This was his written reply to a question from David Maynier of the DA in Parliament this week. Gordhan said there were several reports that had been produced by the Treasury following studies. He said more work still needed to be done.
“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,” he said.
Chairman of the portfolio committee in Parliament Fikile Majola said an important project like nuclear needed to be investigated.
He said the committee agreed that there must be an open and transparent process on nuclear.