Nuclear power is coming and it will cost R1 trillion – Report

South Africa’s new nuclear programme will start in June, according to a report by the City Press.

A confidential document reveals that a formal request for proposals from companies will be issued, with the total contract worth an estimated R1 trillion.

The nuclear deal going forward is directly related to President Jacob Zuma firing finance minister Pravin Gordhan, as Gordhan was against the project, stated the report.

The Sunday Times also reported that Eskom tabled a presentation to the National Treasury indicating it was ready to buy nuclear power two days before Zuma fired Gordhan.

The successful bidder will be appointed in March 2018.

“Ratings agencies Fitch and S&P Global Ratings have cited the nuclear project as one of the reasons for South Africa’s downgrade,” stated the report.

A concern from Treasury officials is that the nuclear plan allows for “turnkey procurement”, which “is often used to hide corruption”.

This allows the management company to appoint all contractors and service providers.

National Treasury recently denied allegations that a nuclear deal was signed by new finance minister Malusi Gigaba, following a post on Facebook by an ANC member.

The member also alleged that Zuma’s nephew Khulubuse Zuma would benefit from nuclear plants being built.

Now read: Nuclear deal not signed by new finance minister – Treasury

Latest news

Partner Content

Show comments

Recommended

Share this article
Nuclear power is coming and it will cost R1 trillion – Report