Question NW1180 to the Minister of Mineral Resources and Energy
13 May 2021 - NW1180
Lorimer, Mr JR to ask the Minister of Mineral Resources and Energy
Whether, with regard to bids accepted for the Risk Mitigation Independent Power Procurement Programme, his department has calculated the estimated additional costs that will be incurred in respect of each of the projects as a result of the adherence to (a) Broad-Based Black Economic Empowerment legislation and regulations and (b) local content legislation and/or regulations; if not, why not; if so, what are the further relevant details? NW1370E
Reply:
a) No, the Department has not calculated the estimated additional costs due to B-BBEE legislation and/or regulations. Compliance with B-BBBEE and/or regulations is a legal requirement under the PPPFA.
b) No, compliance with local content requirements are a legal requirement under the PPPFA.
By complying with B-BBBEE and local contents requirements, the Government promote and drives economic transformation, which in turn contribute to economic growth. B-BBEE and localisation add value to our society through its commitment to skills development together with the contribution to social development and transformation.
The Department through the IPP Office publishes quarterly reports for IPP projects connected to the grid. These reports include economic development achievements in line with commitments made by IPPs. The reports can be accessed here: https://www.ipp-projects.co.za/Publications