- South Africa’s Portfolio Committee on Mineral Resources and Energy has withdrawn their decision to conduct an enquiry into the controversial 2000MW Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) where Turkish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 It is on this basis that the committee has rescinded its decision to conduct an inquiry,” the committee said yesterday.
Related news: Has South Africa’s REIPPPP Bid Window 6 Been Delayed by Controversial Bid Window 5 Outcome?
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 .
South Africa’s Minister of Mineral Resources and Energy, Mr Gwede Mantashe. Image credit: Siphiwe Sibeko – Reuters
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
South Africa is in much need of new generation capacity. The country is plagued by regular bouts of loadshedding. Read more
Author: Bryan Groenendaal
4 Comments
What a shame that South Africa continues to persue the path of planet destroying energy. With a goverment who’s reputation is in tattters how can we trust the decisions they make. The public will continue to pay the price for goverment incompetence.
The goverment is meant to serve the people not rob and disrespect them.
The corruption and ineptitude runs so deep in this government that I have stopped expecting any level of competence or integrity at all. They are a disgrace and have no idea what service means either.
The court ruled. Why do some people continue to mention corruption etc etc? I support the Minister to implement means to give us more electricity.
It is only in South Africa that when the government does anything to grow the economy you will have some who are hell bend on obstructing the efforts. Not long it was the issue of exploration for gas.