Question NW85 to the Minister of Energy

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09 April 2018 - NW85

Profile picture: Davids, Ms S

Davids, Ms S to ask the Minister of Energy

What are the details of the (a) binding commercial and financial information secured to assist Cabinet to evaluate fully the arrangement that is best when implementing Government’s new nuclear build programme and (b) (i) price, (ii) affordability, (iii) pace and (iv) scale that was clearly indicated by the request for proposal phase in this regard, as indicated on page 14 of the 2016-17 annual report of his department?

Reply:

a) There is no binding commercial and financial information secured yet to assist with the nuclear expansion programme. When Cabinet approved in December 2015 that the Request for Proposal be issued, the main intention was to test the market, a process which would allow the determination of the pace and scale that the country can afford. Cabinet had also resolved that the Department should report back to Cabinet before a final decision is made. Subsequently, a decision was taken by Cabinet on 02 November 2016 that:

  • the Ministers of Finance, Energy and Public Enterprises collaborate on ensuring that the scaling and phasing of the nuclear programme is in the interests of the country;
  • Eskom be the Owner Operator and Procurer for the Nuclear Plant as per Nuclear Energy policy of 2008;
  • NECSA be the Owner Operator for the Nuclear Fuel Cycle and Multi-Purpose Reactor respectively.

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