DA will contest any plan to tie South Africa to a R200 billion, 20 year Karpowerships contract
15 May 2023
Three days after President Cyril Ramaphosa suggested to Parliament that "power ships" were an immediate priority to alleviate the energy shortage, it now appears that he may have known that plans were already under way to force through the 20 year Karpowership contracts at all costs and to shield the details thereof from public scrutiny.
It has now emerged that a Section 79 directive was clandestinely issued from the Ministry of Transport, either by Fikile Mbalula before he left or by the new Minister, Sindiswe Chikunga, to force the Transnet National Ports Authority to find harbour space for three Turkish gas-to-power ships for the next 20 years. This is in addition to the media blackout that the Minister of Environment, Barbara Creecy, has placed on the Karpowership environmental clearance applications that are currently under consideration in her office.
Of particular concern is that the Karpowership company failed to reach financial close within the specified deadline but this was now being deliberately overlooked to ensure that their 3 power ships are moored in South Africa's harbours at any cost. Their failure to reach financial close on time raises questions about how the rules have been bent to accommodate Karpowerships - to the detriment of any other potential bidders who were excluded initially.
The ANC government appears to have made up its mind to use the electricity crisis as an excuse to impose an outrageously expensive 20 year Karpowerships contract on the South African people. The DA rejects this outright and we remain clear any decision to burden the fiscus with such a contract will be contested immediately.