Nersa approval of Karpowership contracts lacks transparency: Outa

Nersa approval of Karpowership contracts lacks transparency: Outa

The Organisation Undoing Tax Abuse (Outa) says it's appalled by Nersa's decision to grant generation contracts to Turkey-based Karpowership - one of the world's largest floating power plant operators.

Karpowership SA to appeal decision to reject its power at ports project
Supplied: Karpowership SA

The licences are for three floating plants that would operate at the ports of Richards Bay, Saldanha Bay and Coega.


The company won a tender earlier this year to supplement the country's electricity supply with gas-to-power projects.


Outa's Chris Yelland says the process lacked transparency.


"The environmental authorisation for these projects have been denied by the environmental regulator, the Department of Forestry, Fisheries and Environment.


"There's no fuel supply agreement in place. There's no fuel pipeline license. There's no port authorisation and there's no Eskom power purchase agreement and finally, there's a significant legal challenge by DNG Energy underway and scheduled to be heard in court in early December."


Karpowership's spokesperson, Kay Sexwale says the move will help reduce load shedding.


"We look forward to the next steps in getting on with our work of providing reliable electricity to the country.”


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