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Expert calls on govt ‘to come clean’ on controversial Karpowership deal

The government’s unwavering support of the controversial Karpowership South Africa deal – following concerns over its costs and environmental danger – is, according to an expert, a sign of short-term political fix rather than a long- or medium-term viable solution.

Given both the environmental questions and the financial burden this deal will place on the taxpayer, political economy analyst Daniel Silke said the deal would always get substantial criticism “not only from an economic perspective, but clearly also from an environmental perspective”.

Environmental authorisation

Despite a crescendo of calls for the government to avoid the deal, the department of forestry, fisheries and the environment (DFFE) yesterday granted the Turkish company an environmental authorisation for its Richards Bay Environmental Impact Assessment (EIA) application.

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Karpowership SA said the decision not only vindicated its thorough “EIA methodology and process that included comprehensive and inclusive public participation processes in Richards Bay, but also demonstrates the department’s willingness to objectively evaluate the information at hand”.

“This decision is further justification that our Powerships exceed both international and South African environmental standards, and we are pleased that this has been recognised,” it noted.

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“The outcome represents a meaningful turning point in this extensive process as all parties involved including our stakeholders and various other interested and affected parties (IAPs) have worked cohesively and supported Karpowership SA to showcase that our LNG to Power projects will make an important contribution to combatting SA’s energy crisis, through a stable, cleaner and reliable electricity supply to the businesses and communities that so urgently need it.”

Karpowership ‘a political fix’

However, Silke said South Africans were owed a full disclosure as to the long term financial implications of the Karpowership deal, and what it would entail over the period of time that the ships themselves have been contracted to provide energy into the grid.

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“The question is, is this a short term fix to our energy crisis with a view to a better election campaign for the ANC, or is this a viable medium term solution?

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“Secondly, there is a lack of clarity whether the additional energy from the Karpowership will actually be needed, given the advanced stage of renewables filtering into our grid, and the repair jobs being done on Medupi and Kusile and other power stations operating within South Africa.

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“Thirdly, I think the issue is a political issue to me. The switching on of the Karpowership will be attempted well before our election in order to provide uninterrupted power for a period of time before the 2024 election.

“This obviously will be of benefit to the ANC as the issue of load shedding is one of the most powerful political detractions from the ANC at the moment,” said Silke.

He said: “This would seem to me as though it has a political motivation, perhaps rather than a financial motivation, given the potentially onerous conditions and financial conditions and liabilities that this set in place for the South African taxpayer”.

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“And so I think government needs to come clean on these various issues,” he noted.

Meanwhile, a recent joint appeal lodged by top civil society organisations, including the South Durban Community Environmental Alliance, groundWork, The Green Connection, Natural Justice, and the Centre for Environmental Rights, vowed to hold Karpowerships and the government accountable for what they claim were questionable actions.

– reitumetsem@citizen.co.za

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By Reitumetse Makwea
Read more on these topics: Karpowership