- DMRE further extends the deadline for financial closure
- Sets January 30th as the new closure date
- Critics frustrated at latest developments
Once again, South Africa’s Department of Mineral Resources and Energy (DMRE) has extended the deadline for Financial Closures on the emergency power projects under the Risk Mitigation Independent Power Producer Programme [RMIPPP). The DMRE has been accused of giving special treatment to the Turkish firm, Karpowership following its emergence as the successful bidder for the project.
In a statement by Nathi Shabangu, the Ministerial Liaison Officer to the Minister of Mineral Resources and Energy, Gwedebe Mantashe, clarified that the deadline has been extended for all bidders on the project. “I just want to correct you: No extension has been extended to Karpowership [only]. It is for all of the bidders,” Shabangu said. The initial deadline for financial closure was July 31st 2021, which was then extended by the DMRE to September 31st 2021. However, the deadline has now been extended to January 30th 2022.
Critics have expressed dismay at the recent developments, alleging back door dealings. The spokesperson for the Green Connection and the Organisation Undoing Tax Abuse (OUTA), Liz McDaid called for the scrapping of the RMIPPP while calling the extension of the deadline unnecessary since “… it has become fairly evident that Karpowership are nowhere near ready – with all the legal requirements in place – to reach financial closure.”
“This all still smells very fishy. To us, this suggests that the DMRE is stalling and seems that it will not be satisfied with any other ’emergency’ energy options and will essentially keep extending the deadline until this deal with Karpowership is complete. South Africa has now spent more than a year, trying to procure emergency power, with no result. The DMRE issued a request for proposals [RFP] for the RMIPPP in August 2020, and there is still no end in sight,” McDaid added.
She further stated that the latest extension confirms “… just how ridiculous it is that the National Energy Regulator of South Africa [Nersa] – the body tasked with making decisions on electricity generation licences – has already approved Karpowership’s electricity generation licences, without some critical authorisations in place, such as the pending approvals from the [environment department]. The truth is, we are not convinced it will ever fully meet all the requirements.”