SOUTH AFRICA: Karpowership Hopeful on July 31st Deadline for Financial Closure

  • Karpowership hopeful on meeting deadline
  • The deadline for financial close is set for July 31st
  • DFFE refused Karpowership approval for an environmental permit

Karpowership firm is hopeful to meet the deadline for financial close for all projects under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). The deadline is set for July 31st, and as the Department of Mineral Resources and Energy (DMRE) has confirmed. ”all preferred bidders are [still] expected to meet the deadline”, the DMRE said.

Karpowership emerged as the preferred bidder for the South Africa emergency power intervention. The firm is expected to provide 1,220MW over 20 years using gas-fired power ships berthed at Richards Bay in Kwazulu-Natal, Coega in Eastern Cape and Saldanha in Western Cape. However, the Department of Forestry, Fisheries and the Environment (DFFE), last month, denied the firm the necessary environmental permit; subsequently, Karpowership lodged an appeal against the DFFE’s decision based on multiple grounds.

Despite the challenges, Karpowership is still hopeful it can meet the deadline. ”We have confidence in South Africa’s institutions, look forward to the next steps, and are eager to get to work generating cleaner, reliable electricity for South Africa,” the firm said.

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