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South Africa’s govt quietly confirms nuclear power deal

Cabinet quietly endorses nuclear deal http://www.bdlive.co.za/business/energy/2015/12/15/cabinet-quietly-endorses-nuclear-deal  BY NATASHA MARRIAN, 15 DECEMBER 2015, FINANCE MINISTER PRAVIN GORDHAN CONFIRMED ON MONDAY THAT A DECISION WAS TAKEN BY THE CABINET IN ITS MEETING LAST WEEK TO START THE NUCLEAR PROCUREMENT PROGRAMME.

This opens the path for the Department of Energy to call for proposals to provide 9.6GW of nuclear power without first doing a cost-benefit analysis.  But Mr Gordhan was adamant on Monday the procurement would go head only if it was “affordable”. Mr Gordhan confirmed that the decision had been made, yet in a post-Cabinet statement and a media briefing last week, no mention was made of the procurement decision.

On Monday, Business Day reported on the decision and that was the first time it was mentioned in public.

Acting Cabinet spokeswoman Nebo Legoabe said on Monday she did not know why the information was not contained in the Cabinet statement. She had not been in the Cabinet meeting and was unaware of what was discussed.

Mr Gordhan said he was not in the Cabinet meeting either last week as he had been unwell, but confirmed the decision.

“There is, I think, a decision on Wednesday that we are going to move in that direction. Part of that decision … is that there will be a formal procurement process in accordance with South African law.’’

He reiterated that the Treasury would only proceed with plans that were affordable. We can’t spend money that we don’t have and we can’t make commitments when we know we are not going to get the money that is required to be spent in this particular regard,” the minister said.

Mr Gordhan added, however, that this did not mean it would never happen, just that it may have to wait.

Former finance minister Nhlanhla Nene has said repeatedly that nuclear energy would not be procured if SA could not afford it. The African National Congress has also expressed caution, passing a resolution at its national general council in October, calling for ‘‘a full, transparent and thorough cost-benefit analysis of nuclear power’’.

With Carol Paton

December 18, 2015 - Posted by Christina Macpherson | politics, South Africa