Transnet pipeline cost overruns to be investigated - DPE

Malusi Gigaba appoints task team to probe troubled project (Jan 31)

Minister announces panel of experts to probe New Multi-Product Pipeline (NMPP) cost overruns

31 Jan 2011

The Minister of Public Enterprises, Mr Malusi Gigaba, has today appointed a panel of experts to probe the cost overruns and time delays associated with Transnet's New Multi-Product Pipeline (NMPP).

The Minister has previously raised his concern at the rise in the costs of the project, which will have implications for its expected date of completion, and consequently, for security of fuel supply. The minister expects the construction of the pipeline to be completed by December 2011, as per the construction licence awarded by National Energy Regulator of South Africa (Nersa).

The team consists of:

  • a pipeline specialist, Mr Ian Thompson
  • a project management and construction specialist, Prof. Raymond Nkado
  • a legal specialist, Advocate Kevin Trisk (SC)
  • a regulatory and compliance specialist, Ms Inba Thumbiran
  • the Department of Public Enterprise (DPE) Project Manager, Mr Adam Seedat, a financial analyst.

The project deliverables are three independent reports on the governance, engineering and project management aspects, as well as independent legal opinion. These should recommend the appropriate course of action to be taken by the shareholder.

The team will be provided full access to Transnet personnel and information relating to the management of the NMPP project. Transnet have indicated their willingness to work with the team, and the Minister welcomes this.

The panel is expected to provide a comprehensive report of its findings, to the minister, by the end of April 2011.

Statement issued by the Department of Public Enterprises, January 31 2011

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