nuclear-news

South Africa’s Finance Minister under pressure about govt plans for unaffordable nuclear power

Nuclear must be affordable, says Nene, Business Day, BY CAROL PATON, 24 AUGUST 2015, FINANCE MINISTER NHLANHLA NENE SAYS HE WILL HOLD THE LINE ON THE PROCUREMENT OF NUCLEAR ENERGY IF IT IS UNAFFORDABLE, AND WILL REDUCE THE HEAD COUNT OF THE PUBLIC SERVICE TO ENSURE SPENDING STAYS IN LINE WITH FISCAL TARGETS.

Mr Nene is under enormous political pressure to accede to a presidency-backed plan to procure 9,600MW of nuclear energy capacity at a time when public finances are at their weakest since the mid 1990s.

Underlining this pressure was the appearance of a fake intelligence dossier last week, smearing top Treasury officials as apartheid agents and alleging that they and Mr Nene are part of a conspiracy by the old white establishment to control the Treasury.

The document aroused grave concern among the public, and in political and investor circles, as it is feared it may signal a political attack on the Treasury, which until now has been a strong source of confidence given its ability to exercise tight control over government finances.

The Treasury and Mr Nene say that the document is baseless but appears to be a worrying attempt “to undermine and destablise the institution”.

Mr Nene’s comments, in an exclusive interview with Business Day on Friday, come at a time of keen interest from ratings agencies and the investor community regarding whether the government will stick to self-imposed spending ceilings designed to cut debt in this challenging political context.

Of the challenges, top of the list is whether Mr Nene will be able to hold the line on the nuclear procurement.

Treasury and Department of Energy officials spent most of last week locked in an intense engagement in Cape Town over the financing options for the project.

Mr Nene said that since the Treasury had only just been invited into the process, it was too early to make pronouncements.

However, if it was unaffordable to the country and to consumers, who would have to pay for the energy generated, it could not be done, he said….. the Department of Energy’s discussions with vendors have all assumed the full 9,600MW would be commissioned. The department also envisages using the programme for industrialisation and job creation, and aims to create a nuclear export industry.

It has to date refused to make public its studies or provide evidence that a nuclear procurement of 9,600MW is affordable.

Mr Nene said that as with any project that involved the allocation of resources, the Treasury would have to account to the nation.

“That is why following process is critical…. My job is spelt out in legislation and my role is to uphold and stay within the confines of the Constitution and the Public Finance Management Act.”…..http://www.bdlive.co.za/business/energy/2015/08/24/nuclear-must-be-affordable-says-nene

August 24, 2015 - Posted by Christina Macpherson | politics, South Africa