Nuke plants a step closer

10 March 2016 - 02:32 By BDLive, Reuters, Bloomberg

Zulu said there was a difference between a request for proposals and a tender - though tenders might not be necessary if proposals meet the government's requirements.The timing of the request would depend on the outcome of discussions among the department, the Treasury and independent power producers on procurement strategy for the project."We want to make sure that the process plan is thorough, effective and properly implemented," said Zulu after a meeting of parliament's public enterprises committee had been briefed by Eskom CEO Brian Molefe.He said the request for proposals was based on the cabinet's December decision to go ahead with the nuclear programme and was aimed at testing the market in terms of state of readiness and the best funding model. Suppliers would submit technology and funding proposals.This process would reveal the best and most cost-effective method for the programme.President Jacob Zuma first announced plans in February 2014 to add 9600MW of nuclear power to the national grid.The government has declined to reveal the expected cost, but estimates for six nuclear stations by 2030 range between R400-billion and more than R1-trillion.South Africa has signed nuclear framework agreements with the US, China, Russia, Japan, South Korea and France.Eskom said at the briefing it would increase capital expenditure by 44% to R324-billion over the next five years to build new power stations.It already had R85-billion of funding - nearly all of the capital needed for 2016 and 2017.Eskom cut spend on diesel to R40-million in February from R854-million in October, CEO Brian Molefe said.The company also saved R9-billion and increased net profit 22% to R11.3-billion at the end of September and was not in danger financially, he said.In support of nuclear power, Molefe said Koeberg provided the country's cheapest energy. ..

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