R200bn power ship deal looms, but Outa says the fight is not over

Following President Cyril Ramaphosa’s tacit approval this week of the Karpowership deal, and the department of transport’s announcement it had given the company leases at three ports, minister Barbara Creecy is one of the last obstacles to the deal about to sink the country into a quagmire of debt for the next 20 years.

Democratic Alliance Shadow Minister of Mineral Resources and Energy Kevin Mileham said “independent estimates have shown that a 20-year Karpowership contract will cost South Africa in excess of R200 billion”.

“This is enough to build two new Medupi and Kusile power stations, based on their initial budget of R79 billion and R81 billion respectively,” Mileham said.

“At best, the Karpowership contracts should only be five years and only renewed depending on need.”

Between the three powerships, one stage (around 1 000MW) of load shedding will be lifted where Eskom has said it needs 6 000MW.

ALSO READ: Eskom latest: R400bn debt relief and Mantashe on taking Karpowership ‘seriously’

Much like the failed Gauteng Freeway Improvement Project that went ahead with minimal public participation and ultimately failed – thanks to citizen activism and the Organisation Undoing Tax Abuse (Outa) – South Africans face having yet another albatross around their necks.

On 26 February, Transport Minister Sindisiwe Chikunga approved the application to grant Karpowership access to the three ports on the coast of South Africa.

Creecy aware?

It is unknown if Forestry, Fisheries and Environment Minister Creecy was aware of the decision, following her department’s statement around the issue on 10 March, saying it had “issued a record of refusal on one of the applications for Environmental Authorisation for the proposed three Karpowership-SA projects”.

ALSO READ: No ways to a corrupt Karpowership deal

“The application for the second project has been withdrawn by the Environmental Assessment Practitioner (EAP) and the third application has been suspended pending the outcome of an investigation into the environmental processes,” department spokesperson Albi Modise said.

Details of the three applications for Environmental Assessment are as follows:

• Port of Richard’s Bay: The EAP submitted a letter to the department on 2 March to withdraw the final Environmental Impact Assessment (EIA) report dated 6 January. The withdrawal was based on an urgent application by the EAP for condonation to comply with regulatory timeframes in terms of Section 47C of the National Environmental Management Act, submitted to Creecy on 24 February. This is currently under consideration.
• Port of Saldanha: On 6 March, the Competent Authority received correspondence from “The Green Connection” alleging suspected non-compliance with regulation 13 of the EIA Regulations by the appointed EAP. As a result, the application has been suspended. Letters have been issued to the EAP for Karpowership-SA and to The Green Connection. The decision on this application will be based on the outcome of the investigation.
• Port of Ngqura: The application for an environmental authorisation was refused on 7 March. Despite all the issues, the approval from Chikunga includes the ports of Ngqura, Durban and Saldanha Bay, “subject to all other government approvals”.

Speaking in parliament yesterday, Creecy said government would not compromise on the quality of environmental assessments for power projects, with 2 899MW for solar PV and 6 890MW of wind energy in the pipeline. Time frames for EIA’s have been cut down from 107 to 57 days.

ALSO READ: Karpowership’s application to keep its ship in Saldanha Bay suspended

When queried if she was under pressure from other ministers to let the deal go through, Creecy said the department of mineral resources and energy (DMRE) was the authority to grant environmental authorisation. When its decision was challenged, the appeal landed with her department.

“I do not want to compromise my role in that regard,” Creecy said.

Karpowership SA

Karpowership SA, a 49% black-owned South African company, yesterday welcomed its appointment “as a preferred bidder for projects in the ports of Coega, Saldanha and Richards Bay, to provide power to South Africa’s national electricity grid”.

On Thursday, Electricity Minister Kgosientsho Ramokgopa told the Enlit Africa Energy Conference in Cape Town the use of power ships by South Africa were “inevitable”.

Except, cautioned Outa on Twitter, there was still another roadblock ahead for Karpowership.

ALSO READ: R200bn Karpowership deal facing dual court challenges from Outa, fishing communities

“[Minister of Minerals and Energy] Gwede [Mantashe], Cyril Ramaphosa and co must remember Outa’s court case against the National Energy Regulator of South Africa about the granting of the generation licences continues. And KPS still has to get environmental approvals. The fight is not over.”

– amandaw@citizen.co.za