Pretoria - The Department of Energy (DoE) on Monday said South Africa’s Nuclear New Build programme, which is yet to commence, will contribute to government’s socio-economic development and transformation agenda.
“The South African Nuclear Energy Policy of 2008 provides the framework within which South Africa will achieve its goal of being self-sufficient in all aspects of the Nuclear New Build Programme for peaceful uses of nuclear energy.
“The nuclear programme shall contribute to government’s socio-economic development and transformation agenda,” said the department’s Deputy Director General for Nuclear Energy, Zizamele Mbambo.
Mbambo was commenting following media reports around the nuclear deal.
Cabinet approved the Integrated Resource Plan 2010 – 2030 and the plan provides for the roll-out of the Nuclear New Build Programme for 9 600MW of nuclear power, which will be deployed by 2030.
The National Development Plan (NDP) instructs government to conduct thorough investigations on different aspects of the nuclear new build programme before a procurement decision is taken.
The National Development Plan states that South Africa needs a thorough investigation on the implications of nuclear energy, including its costs, financing options, institutional arrangements, safety, environmental costs and benefits, localisation and employment opportunities, and uranium enrichment and fuel fabrication possibilities.
The Department of Energy, with other organs of State (within the Energy Security Cabinet Sub-Structures), has in the last five years developed various strategies and policies.
The department has commissioned independent studies to create a framework for the procurement decision and the preparation for the procurement of the nuclear new build programme.
Independent transactional and expert advisors and other resources have been sourced by the department over the five-year period. Among others, the following have been sourced and/or procured:
- Ingerop: Cost of Nuclear Power
- KPMG: Procurement Framework
- Ingerop: Owner-Operator and Financing Structures
- Deloitte: Finance Options Models Solutions
- Deloitte: Deferred Return On Government Investor Approach
- Ingerop: Economic Impact of Localisation of Nuclear New Build Programme
- Nathan Gift Nhlapho Incorporated: Feasibility Study on Effective Independence of the National Nuclear Regulator.
- Nathan Gift Nhlapho Incorporated: Requirements, Considerations and Necessary Arrangements by the Government in Order for South Africa to Accede to One of the IAEA Nuclear Liability Conventions.
- Zimkile Consulting: The Development of Training Programme of First Responders for Nuclear and Radiological Emergencies
- University of Pretoria: A Detailed Financing Model for the Radioactive Waste Management Fund
- Mzansi Energy Solutions and Innovations Pty: Feasibility Study on the withdrawal of Safeguards Function from NECSA
- Mahlako-A-Phahla Investments (with sub-contracting to Ledwaba Mazwai Attorneys and WorleyParsons): Pre-Procurement Readiness Assessment.
- Empire Technology: Programme Management System
Cabinet has designated the Department of Energy as the procuring agency for the programme.
“The department has procured services and resources from all the above-mentioned transactional advisors and service providers to ensure that a framework which potentially addresses the needs of the Nuclear New Build Programme and requirements of the NDP.
“The procurement of all the transactional advisors and services providers has been conducted in a manner that is compliant and consistent with all applicable procurement prescripts. The suggestion that there has been any bias or irregularity in the procurement of any of the services and resources is rejected,” said Mbambo.
He reiterated that the South African government has not entered into any deal or signed any contract for the procurement of the 9 600MW of nuclear power.
Request for Proposals issued to the market
As part of preparations for the implementation of the nuclear programme, the DoE is establishing a Programme Management Office (PMO), with the necessary resources including human resources, information technology and other resources.
Cabinet approved that the department must issue the Request for Proposals (RFP) to the market and determine the final funding model as part of this process. The financial implications for the programme will be determined as the outcome of the Request for Proposals and resubmitted to Cabinet for consideration.
“The department reiterates that the procurement process for the nuclear new build programme of 9 600MW nuclear power has not commenced, but will only commence upon the issuance of the RFP for the 9 600MW nuclear power, as directed by Cabinet,” said Mbambo.
He said government remains committed to ensuring energy security for the country through the roll-out of the nuclear new build programme as an integral part of the energy mix. – SAnews.gov.za
