Cape Town – The R171m tender the Department of Energy (DoE) awarded to the son of President Jacob Zuma’s friend makes up 80% of the department’s tender costs for nuclear-related contracts, it revealed on Tuesday.
Addressing Parliament’s Portfolio Committee on Energy, Zizamele Mbambo, deputy director general and head of nuclear energy, tabled 16 service contracts the DoE entered into from 2013 to 2016 in the run-up to the nuclear new build programme.
Of the 16 contracts, which totalled R212.87m, the tender by Central Lake Trading (or Empire Technology) was the biggest at R171m.
READ: Red flags raised over pre-nuclear tenders worth R173m
The company is owned by Shantan Reddy, the son of Zuma’s friend Vivian Reddy.
“The intended outcome of this service is to provide the department with the ability to effectively and efficiently administer programme management,” said Mbambo.
“(This includes) procurement, project tracking, governance, compliance and information management for the nuclear new build programme (NNBD).
“The system will also provide the department with a secured environment for the NNBD information management,” he said.
The date of completion is set for December 9 2017, he said.
The other big tender was Mahlako A Phahla’s R20.17m contract for a pre-procurement readiness assessment. This was almost 10% of the total spend on service contracts.
KPMG, Deloitte, Ingerop, Nathan Gift Nhlapo, The African Radiation Consultations, Zimkile Consulting, the University of Pretoria and Mzansi Energy Solutions were other companies who were awarded tenders in the run-up to the new build programme.
The nuclear new build programme has hit a possible delay after the DoE tabled the draft Integrated Resource Plan (IRP) last week, which recommended delaying the first reactor going live in 2037. The current plan is to have about eight new reactors (9.6 GW) going live by 2030.
Eskom, which was recently made the owner, procurer and builder of the 9.6 GW nuclear procurement programme, was adamant the original plan should go ahead and has vowed to release the request for proposals by the end of 2016.
Below is the full list of service providers from 2013-2016:
Year | Company | Study | Cost |
---|---|---|---|
2012 | KPMG | Study on comparative analysis of shale gas to power versus nuclear power in South Africa | R 341 002 |
2013 | KPMG | Benchmark of Procurement Framework | R 907 708 |
2013 | Ingerop | Cost of nuclear power | R 1 005 460 |
2013 | Ingerop | Owner operators and financing structure | R 3 601 933 |
2013 | Nathan Gift Nhlapo | Feasibility study on effective independence of the NNR | R 496 960 |
2014 | Deloitte | Finance options models solutions | R 4 250 000 |
2015 | Deloitte | Deferred return on government investor approach | R 995 334 |
2015 | Ingerop | Economic impact of localisation of nuclear new build programme | R 6 137 820 |
2015 | Nathan Gift Nhlapo | Acceession to one of the IAEA liability conventions | R 496 960 |
2015 | The African Radiation Consultations | Development of Training Programme of 1st responders | R 700 416 |
2016 | Zimkile Consulting | Development of training material of 1st responders for nuclear & radiological emergencies | R 469 114 |
2016 | Nathan Gift Nhlapo | Mechanism to enforce implementation of corrective actions by municipalities on nuclear emergency | R 469 752 |
2016 | University of Pretoria | A detailed financing model for the radioactive waste management fund bill | R 1 324 680 |
2016 | Mzansi Energy Solutions | Feasibility on the withdrawal of safeguards function from Necsa | R 499 780 |
2016 | Mahlako A Phahla | Pre-procurement readiness assessment | R 20 174 424 |
2016 | Central Lake Trading TA / Empire Technology | Programme management system | R 171 000 000 |
Total | R 212 871 343 |
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