What’s happening with the Powership Deal?

An Update from our Weekly Energy, Mining and Engineering Law Alerts (6 May 2021)

Government named eight preferred bidders in March this year for a government tender to produce 2 000 megawatts of emergency power. Three of Turkey’s Karpowership floating gas powers stations were among the eight projects chosen. If the deal goes through, five floating powerships will be moored at Saldanha Bay, Richards Bay and Port of Ngqura.

Several issues have been raised since the announcement such as concerns regarding costs, environmental matters, the lengthy contract lock-in and the permission required from Transnet to occupy harbour space. The emergency power tender is now also being challenged in court.

Here is some of the information that we recently shared with subscribers of our weekly Energy, Mining and Engineering Law Alerts on this topic.

Cronje, Jan. Govt now has eight weeks to decide on powership project after it clears environmental hurdle.

2021 Apr 29 Fin24

This article deals with:

· The environmental impact assessments completed by Karpowership SA’s environmental impact practitioners. The assessments indicate that the deal could go ahead and have been submitted to the Department of Forestry, Fisheries and the Environment for approval.

· The 20-year power purchase agreement that the Department of Energy intends to sign should the necessary authorisations be obtained.

Cronje, Jan. Transnet still assessing bid by Karpowership SA to moor floating powerships at three ports.

2021 Apr Fin24

Cronje, Jan. SA fishing communities fear floating powerships will scare fish away.

2021 May 3 News24

Haffajee, Ferial. Mahlobo and Bongo’s former state security adviser a major shareholder in R218-billion powership deal.

2021 Apr 23 Daily Maverick

Kahn, Tamar. DA calls for probe into emergency power tender amid court challenge.

2021 May 2 Business Day

Liedtke, Simone. Questions, concerns remain about Karpowership bids.

2021 May 3 Engineering News

Lekabe, Thapelo. DA calls on Ramaphosa to approve SIU probe into powerships deal.

2021 May 2 Citizen

Powerships: Losing bidder claims 'blatant corruption', fingers Mantashe 'associate'.

2021 Apr 29 News

South African emergency power tender challenged in court.

2021 Apr 30 Reuters

Steyn, Lisa. Karpowership drops anchor in SA.

2021 Apr 29 Business Day

View more information on our weekly Energy, Mining and Engineering Law Alert https://www.lexinfo.co.za/energy-law-alert or contact us for a free evaluation copy at alert@lexinfo.co.za.

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