- South Africa’s Portfolio Committee on Mineral Resources and Energy has withdrawn their decision to conduct an enquiry into the controversial 2000MW Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) where Turkish independent power producer, Karpowership won preferred bidder status for three gas to power projects totalling 1220MW.
- The remaining 800MW is made up of renewable energy hybrid projects with energy storage systems. Read more
- The enquiry was set to investigate allegations of tender rigging and corruption.
DNG Power, a losing bidder in the (RMIPPPP), recently lost their court bid to halt the tender process with costs. DNG Power requested the high court in South Africa to overturn the government’s appointment of preferred bidders claiming the tender process was “grossly and blatantly flawed, corrupt and procedurally unfair”.
The explosive allegations were made in an affidavit by Aldworth Mbalati, the founder and chief executive of DNG Power Holdings. His company had hoped to win a substantial part of the RMIPPPP tender.
The Portfolio Committee announced its decision after seeking a legal opinion from the Parliament Legal Service Division, which referred to a High Court judgment. “Parliament’s legal services division interpreted the court judgment to mean that the DMRE’s decision to appoint preferred bidders was above board, thereby making an inquiry a futile exercise. It is on this basis that the committee has rescinded its decision to conduct an inquiry,” the committee said yesterday.
Meanwhile, the National Energy Regulator of South Africa (NERSA) has confirmed the approval of generation license applications for all seven of the preferred bidders in the country’s RMIPPPP. This includes the three controversial Karpowership applications which failed their evironmental impact assessment application with South Africa’s Department of Forestry, Fisheries and the Environment.
Related news: The Karpowership SA bid in South Africa’s Risk Mitigation IPP Programme has been riddled with controversy plus allegations of tender rigging. Read more
Link to the RMIPPPP preferred bidders project profiles HERE .
Projects in the programme where sheduled to be fully commisioned by June 2022. The DMRE, headed by Mr Gwede Mantashe, has announced that it will conclude financial close with Risk Mitigation IPP Preferred Bidders by end March 2022. They added that the projects totalling 2000MW will be operational and ready to deliver much needed generation capacity to the national grid starting 12 months from Financial Close. Read more
Author: Bryan Groenendaal