Questions & Replies: Energy

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2010-07-07

THIS FILE CONTAINS 25 REPLIES.

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QUESTION 3357

QUESTION FOR WRITTEN REPLY

3357. Mr M E George (Cope) to ask the Minister of Energy:

Whether, with reference to the 2009-10 annual report of the Department of International Relations and Cooperation (details furnished), her department has set out a plan with regard to all areas that can potentially benefit from an agreement with the Republic of Korea to share clean coal technology; if not, why not; if so, what are the relevant details? NW4187E

REPLY

The Department of Energy has no agreement or a specific set out a plan with the Republic of Korea on Clean Coal Technologies. The Republic of South Africa is working with the European Union countries, United Kingdom and Norway, and also participates in multilateral organisations such as the Carbon Sequestration Leadership Forum (CSLF), Clean Energy Ministerial (CEM), International Energy Agency Clean Coal Centre (IEA CCC) on issues of clean coal technologies, including carbon capture and storage (CCS). The Republic of Korea is a CSLF member like South Africa and we share information pertaining clean coal technologies in such forums.

The Department of Energy has identified the Republic of Korea as a strategic partner in the nuclear energy field and has signed a cooperation agreement in this regard.

QUESTION 3224

QUESTION FOR WRITTEN REPLY

3224. Mr S C Motau (DA) to ask the Minister of Energy:

What is the (a) total cost and (b) number of copies of each (i) annual report and (ii) report on strategic plans that was produced by (aa) her department and (bb) any of its entities in the 2009-10 financial year? NW4038E

Entity

(i) Annual Report

(ii) Strategic plan

(a) Total cost

(b)Number of copies

(a) Total cost

(b) Number of copies

(aa) Department of Energy

R252,141.67

700

R219,837.26

1000

(bb) CEF (Pty) Ltd

R185,745.00

500

No costs reported for strategic plans.

PetroSA

R383,435.91

1500

No costs reported for strategic plans

Saneri

R218,502.34

750

No costs reported for strategic plans

CEF Group

R231,270.00

500

No costs reported for strategic plans

South African Nuclear Energy Corporation (NECSA)

R430,037.05

2500

No costs incurred

Electricity Distribution Industry Holdings (EDIH)

R131,749.00

2015

15 digital copies

No costs reported for the strategic plan

National Nuclear Regulator (NNR)

R250,000.00

750

Not applicable to NNR

National Energy Regulator of South Africa (NERSA)

R294,914.42

2000 Hard copies

1000 CDs

Not applicable to NERSA

QUESTION 3000

QUESTION FOR WRITTEN REPLY

3000. Mr L W Greyling (ID) to ask the Minister of Energy:

(1) (a) How much money was spent by the Petroleum, Oil and Gas Corporation of South Africa (Pty) Limited (PetroSA) or its subsidiaries in prospecting for oil and gas in areas outside our borders in the past 10 years and (b) what amount of oil and gas were found in these prospecting activities;

(2) Whether any national development objectives are being pursued through these prospecting activities; if not, why not; if so, what are the relevant details?

REPLY

(1) (a) An amount of R3.25 billion was spent by the company on exploration for oil and gas outside South Africa during the past 10 years. This figure should be viewed in the context of the high risk, highly capital intensive nature of upstream oil exploration and production business. It also reflects PetroSA's continuous endeavours to secure feedstock for its gas to liquid facility in Mossel Bay, to improve the country's security of fuel supply situation and in pursuance of its vision of becoming an integrated energy company.

(b) PetroSA's efforts to expand its oil and gas reserves have been done through both exploration and acquisition. On the acquisition front the Abana field, offshore Nigeria, has yielded about 36 million barrels of oil.

(2) The national development objectives to be achieved include helping ensure Security of Fuels Supply for South Africa, as well as providing financial resources to the economy. The strategic importance of transport fuels to our economy cannot be overemphasised.

It should also be noted that, since its formation, PetroSA has paid about R4.24 billion as dividends, and has funded all exploration expenditures from its own (internally) generated resources.

QUESTION 2890

QUESTION FOR WRITTEN REPLY

2890. Mr S C Motau (ANC) to ask the Minister of Energy:

Whether a tender was put out by her department or any of its entities for the supply, installation and commissioning of a 400kW solar power plant for Robben Island; if not, what is the position in this regard; if so, (a) which companies tendered, (b) what are the details of each tender received, (c) to which company was the tender awarded and (d) why was the tender awarded to the company? NW3578E

Reply

Yes, a tender was put out in the national newspapers. The greening of the Robben Island project is a joint project between the Working for Energy Programme which is managed by the South African National Energy Research Institute and the Energy Development Corporation, which is a division of the CEF Group of Companies (Pty) Limited.

a) Approximately, 28 companies have committed themselves to tender for the project. Approximately, 42 company representatives attended a site meeting on 18 October 2010.

b) At this stage, no formal tenders have been received as yet as the closing date for the tende is 15 November 2010.

c) The closing date for the tender is 15 November 2010, therefore no tender has been awarded yet.

d) The tender document stipulates the adjudication guidelines therefore the tender will be awarded based on those guidelines.

QUESTION 2888

QUESTION FOR WRITTEN REPLY

2888. Mr D C Ross (DA) to ask the Minister of Energy:

Whether any progress has been made to provide free electricity in accordance with measures stipulated in the Integrated Resource Plan; if not, why not; if so, what are the relevant details in this regard? NW3575E

Reply

The IRP is a supply-demand planning document and does not address any utilisation aspects like Free Basic Electricity. The demand projection for electricity, which is used in the formulation of the IRP, considers the utilisation of electricity for Free Basic Electricity delivery.

QUESTION 2752

QUESTION FOR WRITTEN REPLY

2752. Mr D C Ross (DA) to ask the Minister of Energy

Whether she will make provision for the roll-out of free basic electricity in the Integrated Resource Plan (IRP); if not, why not; if so, how? NW3424E

Reply

No, IRP is a supply-demand planning document and does not address any utilisation aspects like Free Basic Electricity. The demand projection for electricity that is used in the formulation of the IRP, considers the utilisation of electricity for Free Basic Electricity delivery.

QUESTION: 2652

2652. Mr P VAN DALEN (DA) asked the Minister of Energy: (Interdepartmental transfer on 21 September 2010)

Whether she intends introducing legislation to criminalise the act of unauthorised electrical connections to electrical power lines; if not, why not; if so, what are the relevant details? NW3309E

The MINISTER OF ENERGY:

No, the Minister of Energy does not have the intention to introduce legislation to criminalise the act of unauthorised electrical connections, because according to the Criminal Procedure Act 51 of 1977, theft of electricity is already considered as criminal. The jurisdiction and prosecution of any act of theft lies with the SA Police Service and the Department of Justice and Constitutional Development.

QUESTION 2566

QUESTION FOR WRITTEN REPLY

2566. Mr S Motau (DA) to ask the Minister of Energy:

With reference to the forensic audit report on irregularities at PetroSA by a certain company (Gobodo Forensic & Investigative Accounting), (a) what process was followed regarding the appointment of the auditors, (b) why was the office of the Auditor-General not requested to conduct the forensic audit, (c) what terms of reference were given to the company, (d) what were the costs associated with the forensic audit of PetroSA and (e) what were the findings of the forensic auditing company? NW3207E

REPLY

(a) The company, Gobodo Forensic & Investigative Accounting was appointed by the Board of Directors.

(b) The Board having considered various options opted for a company that specialises in forensic audits.

(c) The company was requested to investigate the allegations of misconduct in PetroSA that had been reported in the media, specifically, the Financial Mail.

(d) The cost associated with the forensic audit of PetroSA was R1.5 million.

(e) The findings of the forensic audit was that whilst some of the allegations were baseless and could not be sustained, the rest of allegations required closer attention and they presented prima facie evidence that some Executives within PetroSA may have contravened the policies of PetroSA.

QUESTION: 2565

2565. Mr S C MOTAU (DA) asked the Minister of Energy:

(1) On what basis was a certain person (CEO of PetroSA Mr Sipho Mkhize) dismissed;

(2) whether a disciplinary process was followed prior to the dismissal; if not, why not; if so, (a) what was the total cost of the disciplinary proceedings and (b) what are the further relevant details;

(3) whether the person was suspended prior to his dismissal; if so, (a) what amount in remuneration was paid to him during the period of his suspension and (b) what are the further relevant details? NW3206E

The MINISTER OF ENERGY:

(1) Mr Mkhize was dismissed following the finalization of the findings resulting from a forensic audit report. The investigations were commissioned after allegations were raised about improper business conduct of PetroSA executives.

(2) (a) Yes. An internal disciplinary process was followed prior the dismissal of Mr Sipho Mkhize. The total cost of the disciplinary proceedings was approximately R 300 000.00.

(b) There are no further relevant details.

(3) No. Mr Sipho Mkhize was not suspended prior to his dismissal.

QUESTION 2495

QUESTION FOR WRITTEN REPLY

2495. Mr D C Ross (DA) to ask the Minister of Energy

(1) Whether all municipalities have implemented the guidelines concerning the apportionment of tariffs for electricity which are intended to protect the poor; if not, why not, if so, what are the relevant details;

(2) Whether the National Energy Regulator SA (Nersa) will oversee the process by which municipalities levy a surcharge upon the sale of electricity; if not, why not; if so, what are the relevant details? NW3068E

Reply

(1) Not all municipalities have been able to implement the tariff guideline apportionment as per NERSA decision. There are two main reasons for this are:

(i) Some municipalities still need to update vending software for the pre payment systems that they currently use to dispense tokens; and

(ii) In general the billing systems of most municipalities are not compatible with the NERSA's Inclining Block Tariff structure.

(2) NERSA has no mandate to oversee to surcharges upon the sale of electricity that mandate is with National Treasury through legislation including Municipal Fiscal Powers and Functions Act of 2007.

QUESTION 2494

QUESTION FOR WRITTEN REPLY

2494. Mr D C Ross (DA) to ask the Minister of Energy:

(1) Whether she will make any funds available to improve the maintenance of the networks that supply the public with electricity in order to increase public access for all to electricity; if not, why not; if so, what are the relevant details? NW3067E

Reply

(1) The Department of Energy's (DOE) Integrated National Electrification Program (INEP) is aimed at providing access to electricity for all South Africans and thus support economic growth. The maintenance of the distribution networks that supply electricity to the consumers is the responsibility of the Licensed Distributors that include Eskom Distribution and Municipalities.

Underinvestment in the past years has resulted in maintenance, upgrading and refurbishment backlogs that are growing annually.

The DOE has undertaken a study to determine the extent of the challenges and has developed a project plan to assist the licensed distributors to address these challenges. This plan (Approach to Distribution Asset Management) (ADAM) is based on a comprehensive programme including funding and skills development.

Liaison with Local Government and other stakeholders will commence once approval has been granted from Cabinet for rolling out the programme.

QUESTION 2399

QUESTION FOR WRITTEN REPLY

2399. Mr S C Motau (DA) to ask the Minister of Energy:

Whether (a) her department or (b) any of its entities has signed any contractual agreements with a certain company (name furnished) or any of its affiliates (i) in the (aa) 2006-07, (bb) 2007-08, (cc) 2008-09 and (dd) 2009-10 financial years and (ii) during the period 1 April 2010 up to the latest specified date for which information is available; if so, (aaa) what is the nature of each contract, (bbb) what is the monetary value of each contract, (ccc) what is the (aaaa) start and (bbbb) end date of each contract, (ddd) what are the details of the process that was followed for the signing of each contract, (eee) who else tendered for each contract that was awarded and (fff) what amount did each tenderer quote in each case? NW2968E

Reply

Since its inception, the Department of Energy never entered into any agreement with the entity in question.

QUESTION 2385

QUESTION FOR WRITTEN REPLY

2385. Mr M J Ellis (DA) to ask the Minister of Energy:

(1) (a) What is the nature of the work which certain companies (Zanusi Brand Solution & JGR Marketing Solutions) has done for the National Nuclear Regulator (NNR), (b) when was these service providers appointed and (c) what is the value of the contracts;

(2) Whether any reports compiled by the said service providers for the NNR will be made public; if not, why not; if so, when;

(3) during the period 1 April 2010 up to the latest specified date for which information is available, (a) how much money has the NNR spent on (i) entertainment and (ii) conferences and (b) in each case, (i) what was the nature of the event and (ii) what amount was spent? NW2954E

ANSWERS

(1) (a)

· Zanusi Brand Solutions was retained to conduct a corporate identity and brand audit review on behalf of the NNR in order to inform the NNR of its brand positioning and institute mechanisms for ensuring that the NNR has a positive corporate brand image that reflects its approach, philosophy and mandate.

· JGR Marketing Solutions was retained to conduct a stakeholder satisfaction and tracking survey on behalf of the NNR in order to identify gaps in the NNR outreach and interaction strategy with its stakeholders as well as provide interventions to bridge those gaps.

(b)

· Zanusi Brand Solutions was appointed on 15 March 2010.

· JGR Marketing Solutions was appointed on 31 March 2010

(c)

· Zanusi Brand Solutions: R78 300.00

· JGR Marketing Solutions: R226,940.35

(2) The reports will not be made public due to their internal investigative nature which seeks to inform the NNR of the gaps in its processes and systems in order to enable the NNR position itself effectively. Should there be any gaps identified in relation to the stakeholder perceptions, remedial action will be undertaken and to the extent necessary, such gaps and interventions will be shared with the relevant stakeholders. The reports are due in September and October 2010, respectively.

(3) (a) (i) entertainment: The NNR does not have a budget cost code called entertainment and has, from the date specified to date, not spent any amount on entertainment.

(ii) conferences: As of 1 April 2010 the NNR did not host any conferences however an amount of R136,713.29 was allocated for travel and subsistence costs for attending IAEA conferences in Vienna, Austria.

(b) (i) nature of event : The NNR is mandated as the national competent authority for regulating nuclear safety in South Africa and is required by legislation to fulfil its national obligations in respect of international legal instruments concerning nuclear safety. To this end the NNR attends relevant international conferences on nuclear safety.

The conferences for the period in question are;

· IAEA Operational Safety of Nuclear Power Plants and Fuel Cycle Facilities (21-25 June 2010);

· IAEA General Conference (20-24 September 2010): and

· IAEA International project on Safety Assessment Driven Radioactive Waste Management Solutions (12-16 April 2010).

(ii) Amount spent: Not Applicable (refer to 3(a)(i) above

QUESTION 2366

QUESTION FOR WRITTEN REPLY

2366. Mr E J Marais (DA) to ask the Minister of Energy:

(1) (a) How much copper cable has been stolen in the past five years, (b) what is the monetary value of the cable that was stolen, (c) where was the most cable stolen, (d) how regularly is stolen cable in these high-risk areas replaced and (e) what measures are in place to accommodate the areas where cable was not replaced;

(2) Whether all the stolen cable has been recovered; if not, why not; if so, what are the relevant details? NW2935E

Reply

(1) (a)

INCIDENTS & LENGTHS

VALUE

2005/06

449 (143 537 meters)

R 1 578 305

2006/07

1042 (228 714 meters)

R 8 560 386

2007/08

1680 (284 997 meters)

R 8 589 020

2008/09

2179 (277 088 meters)

R 11 281 345

2009/10

1919 (199 876 meters)

R 11 872 859

Note that the values above are only material values, inclusive of inflation and differs extensively depending on the specification of the stolen cable.

(b) See schedule above

(c) Gauteng

(d) Immediately after the incident

(e) Not applicable

(2) ±30% stolen cable recovered. The rest is processed through recycling industry.

QUESTION 2320

QUESTION FOR WRITTEN REPLY

2320. Mr M Johnson (ANC) to ask the Minister of Energy:

Whether any steps are being followed with the implementation of a certain project (Mthombo Oil Refinery Project); if not, why not; if so, what steps? NW2855E

Reply

Project Mthombo

Background

Project Mthombo encompasses the planning, construction, commissioning of a new 360, 000 barrels per day capacity crude oil refinery in Coega near Port Elizabeth. Project Mthombo primary objective is to address South Africa's liquid fuels supply challenges. The refinery, scheduled to be operational in 2016, will produce diesel and petrol to the highest global product specifications and will meet the increasing domestic and regional supply shortfall for liquid fuels, significantly reducing the country's dependency on imported fuel products. The refinery location in Coega could provide much needed growth opportunities in the Eastern Cape Province.

Progress on the implementation of the Project

There are essentially three basic phases for any mega project such as Mthombo before final investment decision can be made. The three phases are Pre-feasibility, Feasibility and First End Engineering Design (FEED).

The Pre-Feasibility and Feasibility stages of Project Mthombo have been completed and the Project is ready for the FEED phase. The results of the Pre-Feasibility study and associated studies indicated that the project was technically feasible and commercially viable. The Feasibility studies indicate that the project is strategically important, adds shareholder value and is technically feasible.

The Department is currently considering PetroSA's submission on request for approval to proceed to FEED. Consultations with other relevant Departments have been undertaken. I intend tabling the matter before Cabinet in the near future.

QUESTION 2287

QUESTION FOR WRITTEN REPLY

2287. Mr M A Nhanha (Cope) to ask the Minister of Energy:

Whether the Government had requested several scientific evaluations from local scientists as well as from abroad to determine the viability of the pebble-bed modular nuclear reactor (PBMR) before proceeding with the project; if not, why not; if so, what are the relevant details? NW2799E

Answer

The Minister of Minerals and Energy requested the International Atomic Energy Agency to perform a Technical and Economic Feasibility and a Safety Review of the PBMR project in 1998. The objective of the evaluation was for the IAEA "to provide an independent, objective and critical review of the technological, economic and safety aspects of the Eskom proposed PBMR in order to conclude and provide recommendations on its feasibility to the South African Government via the Department of Minerals and Energy".

The IAEA divided the project into two and started with the Feasibility Study for completion in 1999. One of the recommendations of the feasibility study was that the basic and detailed design phases should proceed but that before the construction starts, another peer review by IAEA or other experts be performed as one of the elements in the decision to proceed with the construction of the PBMR. This review found that the conservative approach adopted by the Regulator which called for extensive safety evaluations and demonstrations was justified due to the nature of the project and also the fact that the safety work was performed by outside consultants with no continuous or effective interaction with the design developers.

The Safety Review followed in February 2000 following the submission of the first draft of the Safety Analysis Report (SAR) by Eskom. The objective of the Safety Review was to assess the safety and radiological impact of the PBMR design. The safety review was performed on a design not yet finalised and based on preliminary information. The Safety Review made 26 general comments and recommendations.

In August 2001 the then Minister of Minerals and Energy appointed an Independent Review Panel to undertake a technical, engineering, economic and macro-socio economic feasibility study of the PBMR to be based on a Detailed Feasibility Report (DFR) from the PBMR Project.

The feasibility and safety review by the IAEA and the Independent Review Panel are the two evaluations undertaken on the PBMR while it reported to the DME.

QUESTION 2257

QUESTION FOR WRITTEN REPLY

2257 Mr S C Motau (DA) to ask the Minister of Energy:

Whether her department and/or any of its entities has purchased any 2010 Fifa World Cup Soccer tournament (a) clothing or (b) other specified paraphernalia; if not, what is the position in each case; if so, in each case, (i) what are (aa) the details and (bb) the total cost of the items purchased, (ii)(aa) how many items have been purchased and (bb) why, (iii)(aa) to whom has each of these items been allocated and (bb) why have these items been allocated to these persons and (iv)(aa) on what basis was the decision taken to purchase each of these items and (bb) on whose authority was the decision taken to make these purchases? NW2765E

Answer

The department did not procure tickets, clothing or any paraphernalia for the 2010 Fifa World Cup Soccer tournament.

QUESTION 2225

QUESTION FOR WRITTEN REPLY

2225. Mr S C Motau (DA) to ask the Minister of Energy:

(1) Whether her department or any of its entities has (a) purchased or (b) leased any buildings for administration (i) in the (aa) 2008-09 and (bb) 2009-10 and (ii) for the 2010-11 financial years; if not, why not; if so, in each case, (aaa) what is the cost of the building, (bbb) what is the size of the building, (ccc) why was it bought or leased, (ddd) what will be its use, (eee) who will occupy it and (fff) approximately how many persons will occupy the total space of each building;

(2) whether her department and any of its entities intends purchasing or leasing any buildings for administration for the (a) 2011-12, (b) 2012-13 and (c) 2013-14 financial years; if not, why not; if so, in each case, (i) what is the cost of each building, (ii) what is the size of each building, (iii) why will it be bought or leased, (iv) for what will it be used, (v) who will occupy it and (vi) approximately how many persons will occupy the total space of each building? NW2733E

REPLY

1. (a) No

(b)Yes (i)(aa)No (bb)No

(ii)Yes

(aaa) No, it is a leased building.

(bbb) 9120m2

(ccc) Leased for administration.

(ddd) Office space.

(eee) Staff members and Ministry.

(fff) 350

2. (a) Yes

(b) Yes

(c) Yes

(i) Head Office: 2011/2012=R16, 960,930.20, 2012/2013=R18, 317,804.62 ,2013/2014=R 19,766,228.99.

Reginal Office-Cost cannot be determined for now, awaiting DPW Option analysis unit to provide costing.

(ii)Head Office=18052.50m2, Regional Office=350m2.

(ii) For administration.

(iv) Office space.

(v) Staff members and Ministry.

(vi) Head Office=700 Regional Office=20

NNR

1. The NNR has an existing lease, which is expiring at the end of October 2010. The new lease agreement has been signed for new office accommodation, starting 1 November 2010. The NNR intends to purchase the property in the current financial year.

(aaa) The rental cost is R110.00 per square meter and the estimated cost of purchase is R89m.

(bbb) The size of office space is 5,020 square meters;

(ccc) The reasons for leasing the new building are as follows:

Security: Due to grossly inadequate security structures and arrangements, the current offices that are utilized by the NNR have been broken into a number of times in the past few years. Computers, servers, fax machines and other NNR assets were stolen. Concerns were raised and suggestions provided to the Landlord to no avail. These concerns highlight a significant risk to the security of state in terms of information and data at the disposal of the NNR on regulatory aspects of various nuclear installations and other facilities

Subsequent to the security breach in 2007, the NNR received a report from the South African Police Services in 2007, highlighting security gaps and recommendations to correct the issues. The implementation of these recommendations presented some challenges due to the following factors:

The architectural structure of the building is such that the implementation of the recommendations to enhance security measures and arrangements would require extensive capital investment on the part of the Landlord and in turn, demand a huge financial outlay by the NNR towards a building that the NNR would never own. The structure of the building would actually demand the demolition of certain portions of the building and thus affect business continuity of the NNR, if the security recommendations were to be implemented.

In addition to the NNR, the building has other tenants with their own special requirements which complicate the security arrangements that could be implemented in order to satisfy the NNR requirements. Due to the multi-tenanted nature of the building, the NNR has to share a number of common areas with other tenants such as the basement parking, common passages, and entry points etc, which create practical difficulties for security monitoring.

The cost of implementing the measures in the current location will be very high due to many entry points to the building. There are approximately eight (8) entry and exit points which make the monitoring of movements in and out of the building almost impossible.

The current building is partitioned using dry walls and the location of the NNR server room and document control does not meet the security requirements of a solid brick wall. This makes the NNR information vulnerable to external malicious forces which would threaten not only the NNR safety aspects but also the security of the State, particularly in view of the renewed focus on Nuclear Security.

Health and Safety: The NNR must comply with the Occupational Health and Safety Act (OHSA). The NNR has been occupying the building for more than 2 decades and the condition has deteriorated significantly as maintenance of the building was not effectively managed. There is no regular maintenance of the building from the Landlord and this affects the safety of staff.

The NNR currently does not fully comply with the OHSA. The entity is in a position to comply as far as office space is concerned but will not achieve this for the common areas which are used by multiple tenants. The cost of ensuring compliance at the currently leased offices of the NNR will be too high and a fruitless expenditure may occur considering that the NNR will still not own the building.

Multi-tenant building: The NNR is renting in a multi-tenant building and this poses a number of challenges. These include unrestricted access to the building as other tenants deal directly with the public. There is free flow of traffic during and after hours and this further exposes the NNR.

Integration of divisions: The architeectural design of the office does not promote integration and good working relations within divisions. Relocation to a new building will address this challenge as the design would allow for an open plan that would provide necessary flexibility in integrating divisions.

Failure by the current landlord to improve the condition of the building: The NNR has over the years reported leaks in the roof that have damaged the NNR assets, the employees' vehicles and caused injuries to staff due to slippery floors after the rain. Minor repairs were done over the years.

(ddd) Office space and Emergency Control Centre for responding to nuclear related emergencies.

(eee) The staff of the National Nuclear Regulator.

(fff) 82 employees with the planned growth to 120 staff members.

The NNR intends purchasing a building during the 2010/11 financial year to provide for office space and Emergency Control Centre so as to respond to nuclear related emergencies or incidents. The purchase price has been quoted at R89million which will be cost-effective over time as the NNR will own the building and not have to pay rentals indefinitely. The staff of the NNR will occupy the building. The building is 5020 square metres. The rental option over a ten year period will be 29% more expensive than the amount which could be well invested in procuring own property. The NNR has been renting the same property for over 20 years. To date it has nothing to show for the cash outflow that took place over two decades.

NERSA

(1) (a) No (b) No

(i) NERSA owns the building; (aa) and (bb) – Not applicable

(ii) Not Applicable

(aaa) – (fff) Not Applicable

(2) No

(a) - (c) Not Applicable

(i) – (vi) Not Applicable

PetroSA

PetroSA entered into lease agreements with:

1. Plasto Properties 18 (Pty) Ltd to lease office space (1422.46m² @ R138 689.85p.m.), Balconies (147m² @ R5 145.00p.m.) storage space (26m² @ R910.00p.m.) and 56 parking bays @ R33 600.00p.m. at Tyger Valley Chambers, block 5 from 1 June 2008 to 31 May 2011 excluding value added tax and 8% annual escalation.

TBA Genomineerdes (Pty) Ltd to lease 19 parking bays @ R11 400.00p.m. and storage space (33m² @ R 1650.00p.m.) from 1 June 2008 – 31 May 2011 at Tyger Valley Chambers, excluding value added tax and 8 % annual escalation.

The space was lease for PetroSA's New Ventures Midstream Division working on Project Mthombo. The space can house 75 employees.

The EXCO of PetroSA to decide whether the Tyger Valley Chambers lease should be extended beyond May 2011 or whether adequate space is available at PetroSA's premises to house the New Ventures Midstream Department from 1 June 2011.

2. PetroSA also entered into a lease agreement with Coega Development Corporation (Pty) Ltd to lease office space (220m² @ R26 400 p.m.) in the CDC office building in the Coega IDZ, for 2 years expiring end of January 2011. The space was leased for PetroSA's New Ventures Midstream Division working on Project Mthombo.

The Executive Committee of PetroSA has to decide whether the CDC lease should be extended beyond January 2011.

3. Additionally, PetroSA has carried out substantial renovations to its current Head Office buildings and the following details are relevant:

aaa) the renovations amounted to R58 570 969 in 2008/9 and R98 934 682 in 2009/10, making a total of R157 505 651.

bbb) The size of the renovations is 4 706 square metres.

ccc) The renovations were incurred to accommodate additional employees due to the company's current and envisaged growth.

ddd) The building will be used for office accommodation.

eee) The building will be occupied by the company's employees.

fff) Approximately 252 employees will occupy the additional space as created.

4. PetroSA does not intend to purchase or lease any buildings for administration in the 2011/12, 2012/13 and 2013/14 financial years. This is because there is / will be sufficient office accommodation.

CEF

1. (a) Yes

(b) Yes

(i) (aa) Yes.

(bb) No. Building was purchased in the prior financial year.

(ii) No further agreements.

(aaa) R102 207 268.00.

(bbb) 4030 square meters.

(ccc) Prior lease ended.

(ddd) Office accommodation and core/data storage.

(eee) CEF staff, African Exploration staff, iGas staff, SANERI staff, SASDA staff.

(fff) 180 people.

2. (a) No additional agreements. Have a building now, purchased in 2008/09.

(b) No additional agreements. Have a building now, purchased in 2008/09.

(c) No additional requirements foreseen. Have a building now, purchased in 2008/09.

(i) N/A

(ii) N/A

(iii) N/A

(iv) N/A

(v) N/A

(vi) N/A

PASA

1. (a) No

(b) Yes

(i) (aa) No

(bb) Yes, for a period of five years commencing 1 October 2009.

(ii) No further agreements.

(aaa) Lease payments of R360 765 per month excluding VAT commencing from 01 October 2009 and escalating at 8% per annum for five years.

(bbb) 4008.5 square meters.

(ccc) Prior lease ended.

(ddd) Office accommodation and core/data storage.

(eee) Petroleum Agency SA staff.

(fff) 80 people.

2. (a) No additional agreements.

(b) Yes - Exercise option to buy in lease agreement.

(c) No additional requirements foreseen.

(i) R54 000 000 (fifty-four million).

(ii) 4 300 square meters.

(iii) Long-term cost saving. Option to buy included in lease agreement.

(iv) Office accommodation and core/data storage.

(v) Petroleum Agency SA staff.

(vi) 80 people.

NECSA

(1) (a) No (b) No

(i) NERSA owns the building; (aa) and (bb) – Not applicable

(ii) Not Applicable

(aaa) – (fff) Not Applicable

(2) No

(a) - (c) Not Applicable

(i) – (vi) Not Applicable

EDI Holdings (PTY) LTD

See attached Annexure A

QUESTION 2132

QUESTION FOR WRITTEN REPLY

2132. Mr G R Morgan (DA) to ask the Minister of Energy:

(1) Whether the National Nuclear Regulator (NNR) has any ongoing programmes in place to monitor radioactive exposure to communities in the (a) West and (b) far West Rand areas from (i) surface water, (ii) groundwater, (iii) wind blown dust, (iv) radon in the air and (v) acid mine drainage; if not, why not; if so, what are the relevant details;

(2) Whether there has been any epidemiological study in the Wonderfonteinspruit area to assess the risks of radiation transmitted by all pathogens on human health; if not, why not; if so, what are the relevant details;

(3) whether the NNR has any plans in place to prevent radioactive exposure to communities who use contaminated materials and mine residue as construction materials; if not, why not; if so, what are the relevant details? NW2572E

Answer

(1) (a) & (b) (i-iv) The NNR undertakes ongoing independent monitoring and compliance assurance activities in the West and Far West Rand area. This is as a result of the Certificates of Authorisation (COR) issued to various mining companies that handle radioactive materials who operate in the West and Far West Rand. All COR holders are required to undertake environmental monitoring as their condition of authorization. The NNR has also undertaken independent verification of these monitoring programmes.

(v) The process of Acid Mine Drainage is primarily chemical in nature. The Department of Water Affairs is the lead regulator on this matter and brings in other relevant entities of government. The NNR participates in a joint task team, to monitor potential radiological impacts on the environmental in the West and Far West Rand resulting from acid mine drainage.

(2) The NNR has not conducted an epidemiological study of the Wondersfonteinspruit area as a narrowly defined study focusing on only radiation, excluding chemical contamination and other possible contaminants might not lead to representative result. A proper study, if and when undertaken must include several institutions and possibly be lead by the Department of Health.

(3) The use of contaminated materials and mine residue as construction materials where there is a risk of potential radon build-up is prohibited by the NNR requirements. The authorization holders apply to the NNR when they have a desire to release these materials but the NNR does not approve the release of these materials if the reason for release is for the construction of roads and other constructions which can result in the build-up of radon such as, but not limited to, residential dwellings, offices, etc. . The NNR approves release of such materials, e.g. Waste rock only for use as aggregate in the construction of roads. The release of the waste rock is further subject to the establishment of a system of control to be approved by the NNR, to ensure that the waste rock which is released is below the regulatory limit of 0.5Bq/g.

QUESTION 1960

QUESTION FOR WRITTEN REPLY

1960. Mr L W Greyling (ID) to ask the Minister of Energy:

(1) Whether an audit on the feasibility of Eskom's proposed concentrated solar power project is currently being done; if so, (a) who is doing the audit and (b) when (i) will the audit be completed and (ii) will the final decision be taken on when the project will commence; if not,

(2) whether an audit will be done; if so, when? NW2348E

REPLY

(1) The term audit is not exactly correct since an audit implies an assessment of an existing product or process but yes, a technology assessment process has been initiated. A global review of Concentrated Solar Technologies will be conducted by a suitably qualified entity. This review and all subsequent work on this project will be executed in a manner that will:

· Align its development with the Government's sustainable climate change initiatives.

· Consider the future development of the local solar energy industry as part of a long term sustainable programme

· Be designed to include a solution that provides for storage to enhance solar energy's potential as a sustainable substitute for coal

(a) The request for an Expression of Interest (EOI) to procure this entity has been circulated in the international arena and the EOI closed on 6th August. The EOI can be viewed on www.devex.com/projects/assessment-of-technology-options-for-development-of concentrating-solar-thermal-power-plants-cst-in-south-africa The cost of the study will be funded by the World Bank. The entity that will carry out the review will be chosen on the basis of their experience. The assessment of technology options targets the implementation of the following tasks:

· Identification of technology options based on specified requirements for a prospective CST plant(s);

· Preparation of a bench marking evaluation of various technology options;

· Prepare a techno-economic evaluation matrix for each technology option;

· Prepare a risk assessment matrix for each technology option, and across all technologies.

(b) (i) The review is expected to be completed by the end of December 2010 and after consultations with Government stakeholders a feasibility study on the most appropriate technology will follow.

(ii) The final decision on the structure of the project is expected in the 2nd half of 2011 and will factor all the market and technical intelligence in its design.

(2) N/A

QUESTION 1934

QUESTION FOR WRITTEN REPLY

1934. Mr S C Motau (DA) to ask the Minister of Energy:

(1) Whether her department has subsidised any projects of renewable energy producers in terms of the renewable energy policy framework to facilitate their entry into the power generation arena; if not, why not; if so, (a) how many projects have been subsidised, (b) what total amount has been provided in subsidies, (c) how are these subsidies accessed, (d) what qualifying criteria must be met to receive such a subsidy and (e) what are the minimum and maximum amounts that can be accessed;

(2) what are the details of the potential hydro power that has been factored into the calculation of the set target of 10 000 GWh renewable energy contribution to the national grid by 2014;

(3) whether there is any potential to source hydro power from Muelle Hydro Scheme in Butha Buthe; if so, how will this impact the contribution of hydro power to the grid; if not,

(4) whether the department will consider the factor of hydro power from Muelle Hydro Scheme; if not, why not; if so, what are the relevant details? NW2322E

REPLY

(1) No, no projects have been subsidised under the Renewable Energy Policy Framework. This Framework was aimed at providing guidance on how the target of 10 000GWh by 2013 could be met. It was not a funding scheme. However, the Department has subsidised some renewable energy producers through the Renewable Energy Finance and Subsidy Scheme established in 2005.

(a) Six projects have been subsidised so far.

(b). The total amount is R 14.950, 000.00

(c) The Department advertises the subsidy once in a year in the national newspapers to promote the subsidy. This is in addition to awareness campaigns and workshops run by the Renewable Energy and Clean Development Mechanisms (CDM) which also target potential developers and provide an explanation on how the subsidy can be accessed. The subsidy information including procedures on how to access funds and contact details of responsible officials are also placed on the Departmental DOE website for the developers to contact the Department seeking further information.

(d) The criteria are under review but were based on the following:

i. The project must have undergone a feasibility study;

ii. Process of obtaining environmental and planning permits must be far advanced. A positive record of decision on the Environmental Impact Assessment process will be considered sufficient;

iii. The project must have reached financial closure (or financial closure must be subject only to the subsidy award). This means the lead financial institution (i.e. bank) should be ready to release the project's funds;

iv. Evidence that off-take agreements with customers are in place (e.g. Power Purchase Agreement );

v. Developers must also indicate if they have obtained required licences and permits (e.g. generation or fuel manufacturing licenses) where applicable;

vi. High probability that the project will commence with construction in the next 12 months;

vii. At least 25% black economic empowerment ownership that is in line with the objectives of the Broad-based Black Economic Empowerment Act (2003) or the Liquid Fuels Charter; and

viii. The project must have an installed capacity of at least 1 MW (electricity), 914 kl/year (bio-diesel) or 1495 kl/year (bio-ethanol).

(e) The minimum amount is R1 million per 1 megawatt and the maximum is R20 million

(2)(a) The department undertook the macroeconomic study in 2004 to find out how best, can the target be achieved, and the analysis looked at both least cost and technical feasibility. It was established that hydro power is technically feasible and estimated to contribute 10% at least cost.

(b) Currently, hydro is contributing less than 10% to the grid.

(3) The Department of Energy is not aware of the potential of this particular scheme because it is located in Lesotho, outside the borders of South Africa. Therefore any potential, and the extent to which it can be shared with South Africa, may be subject to negotiations with the Lesotho Government.

(4) Yes. Since the Muelle Hydro Scheme is outside the borders of South Africa, it can only be factored in subject to its potential and Agreements being concluded between the two governments. The Integrated Resource Plan (IRP) which provides details on electricity generation sources and quantum over a long period will identify different types of power generation, including hydro power. However, the IRP will not explicitly identify projects by their names but rather group them per technology.

QUESTION 1933

QUESTION FOR WRITTEN REPLY

1933. Mr S C Motau (DA) to ask the Minister of Energy:

(1) Whether she has been informed of allegations of profiteering by fuel outlets in and around the Kruger National Park and on routes to the park through huge retail price mark-ups on diesel; if so, what steps will be taken in this regard; if not,

(2) whether she will investigate the allegations and prosecute any transgressors to stop the malpractice; if not, why not; if so, what are the relevant details;

(3) whether she has been informed of the backyard sellers of diesel around Komatipoort and near Kimberley who allegedly procure diesel from fences and re-sell the product very cheaply; if so, what steps has she taken in this regard; if not,

(4) whether she will investigate the matter; if not, why not; if so, what are the relevant details? NW2321E

REPLY

(1) No, I have not been informed of these allegations. In terms of price mark ups, it has to be borne in mind that the retail price of diesel is not regulated and as such retailers have the liberty to charge whatever price they deem suitable.

(2) Please refer to reply (1)

(3) No, I have not been informed of backyard sellers of diesel around Komatipoort or near Kimberley. However, my department is stepping up its enforcement activities across the country in collaboration with other government agencies and this will include Kimberley and Komatipoort.

(4) Yes this matter will be investigated and special attention will be given to those areas that have been flagged.

QUESTION 1857

QUESTION FOR WRITTEN REPLY

1857. Mr M Swart (DA) to ask the Minister of Energy:

(1) Whether her department received an application for the establishment of a solar power project on the grounds of the Oudtshoorn Golf Club; if so, (a) who is the developer and (b) what are the relevant details;

(2) whether the developer applied for carbon funding under the clean development mechanism; if so, what are the relevant details? NW2141E

Reply:

(1) No.

(2) No.