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African National Congress calls for transparency on nuclear tender process

ANC calls for transparent nuclear tender process, Mail & Guardian, 18 AUG 2015 2FRANZ WILD, STAFF REPORTER
ANC calls for “full, transparent and thorough cost benefit analysis of nuclear power” as SA prepares for a bidding process for new nuclear plants. n a document that will be discussed at its policy review conference in October, the ANC said: “Government must also announce publicly that nuclear energy can only be procured in line with the legal prescripts and after a thoroughgoing affordability assessment.”

The document was released on Monday.

During his State of the Nation address in February, President Jacob Zuma said all countries that bid “will be engaged in a fair, transparent and competitive procurement process to select a strategic partner, or partners, to undertake the nuclear build programme”.

But the Mail & Guardian reported earlier this year that in a “top secret” presentation, the energy department proposed a closed government-to-government procurement of new nuclear power stations instead of a transparent and competitive tender.

The nuclear agreement with Russia, which amaBhungane revealed, states that the government is prepared to give Russia exclusive rights to its nuclear build programme for a minimum of 20 years. During that time, Russia could block South Africa from procuring nuclear technology from any other country.

The Russians would be indemnified from any liability arising from nuclear accidents during the reactors’ lifespan. Russia would be granted a host of regulatory concessions and favourable taxation and other financial treatment. The designated competent authorities are South Africa’s department of energy and Russia’s state-owned Rosatom State Atomic Energy.

With the Russian economy in turmoil and the subsequent high cost of borrowing, the country’s ability to raise the funding for its nuclear ambitions in many countries is being called into question – as is its ability to deliver on time.

For South Africa, it is even more of a mystery how the government will provide the loan guarantees that would be required, given that so many have been extended to ailing parastatals such as Eskom and SAA. The state may have hit its limit………http://mg.co.za/article/2015-08-18-anc-calls-for-transparent-nuclear-tender-process

August 19, 2015 - Posted by Christina Macpherson | politics, South Africa