NNEECC and Eskom must brief Parliament on planned nuclear expansion 

The Democratic Alliance (DA) notes Cabinet's approval of the National Nuclear Energy Executive Co-ordination Committee (NNEECC).

This high-level committee is tasked with monitoring the planned nuclear expansion programme.

It is essential that government is completely transparent in its procurement of these power stations. This process, if it goes ahead, would be the single largest procurement of goods in South Africa's history.

It must therefore be subjected to rigorous oversight.

No deal should be signed with regard to the nuclear expansion programme without the full terms of reference and any contracts coming before parliament. 

I will today be writing to the Chairperson of the Public Enterprises Portfolio Committee to ask that both Eskom and the members of the NNEECC brief the committee on the proposed expansion programme. These representatives should present the work that has been completed on the programme thus far, provide full information on the bidding process and allow the committee to review any contracts or draft contracts as and when they may arise.

The nuclear industry is shrouded in secrecy. If South Africa is to do business with nuclear service providers, it must be made clear by government that these deals will be conducted under the full glare of parliament and public scrutiny.

In its Integrated Resource Plan (IRP2010), government indicated that it intended to increase South Africa's nuclear generating capacity, and that the planned nuclear power stations would start coming online in approximately 12 years.

As yet there is no clarity on the cost of the procurement, and the number of power stations government intends procuring. The bill for the planned nuclear expansion is rumoured to be between R400 billion and R1 trillion. Even by the most conservative estimates, the cost of the expansion will be ten times bigger than the costs associated with the arms deal. There should be nothing inevitable about the proposed build programme. If we cannot afford it, then no deal should be signed.

The upfront price of nuclear expansion is always outweighed by the actual costs incurred. In particular, building delays and price escalations have a habit of dramatically increasing the final bill. 

In addition, the initial price predictions for nuclear projects never include related but important costs such as decommissioning of nuclear facilities and the disposal of hazardous material. Opportunity costs also need to be factored into decision making. Depending on how the proposed nuclear build is financed, money spent on nuclear expansion could lock South Africa into a particular development path for more than 40 years and could crowd out investment in other energy sources and infrastructure. 

If government is intent on pursuing an expansion of nuclear capacity, it should do so with its eyes wide open.

It needs to provide Parliament and the South African people with clear evidence that it has weighed up all factors.

The shadow of the arms deal still looms large over South Africa, and we need to know that this is the best possible way for state resources to be put to use, and that all the necessary safeguards are in place to ensure that there is no corruption, or wasteful expenditure.

Statement issued by Pieter van Dalen MP, DA Shadow Deputy Minister of Public Enterprises, November 14 2011

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