Gigaba calls meeting to discuss nuclear programme

Finance Minister Malusi Gigaba announced on Thursday that he has called a meeting with Eskom and the energy and public enterprises departments to discuss the state’s nuclear build programme.

Gigaba revealed this following a meeting with asset managers, bondholders as well as investors ahead of a crucial International Monetary Fund meeting taking place in the US next week.

The newly appointed finance minister used the meeting with investors to assure them that National Treasury was still on track and that there was “for alarm”.

According to EWN, Gigaba, responding to questions from reporters, said he will meet with the minister of energy as well as the minister of public enterprise to discuss the controversial programme and map a way forward. 

Gigaba explained that the decision to call the meeting was his and that he was aware that Treasury, together with the Energy Department, had conducted extensive work on “the feasibility of the project”.

He added that he now has to be briefed by the department ahead of the meeting with his colleagues.

Eskom is yet to brief Gigaba on its nuclear plans.

It was earlier reported that the nuclear build programme was expected to kick-off in June once Eskom issued a formal request for proposals from companies to bid for the estimated R1 trillion contract.

According to a City Press report, a confidential Eskom document dated three days before Gordhan and Jonas were fired revealed a tight timeline for the programme that would see four plants built to provide 9600 megawatts of electricity to the country.

The document also revealed that most of the major nuclear contracts would be implemented through “turnkey” procurement, which was a source of concern to Treasury officials.

Turnkey procurement refer to projects whereby a single company is appointed to solely manage and deliver an entire project.

The company managing the project is also allowed to select their own contractors and service providers.

According to the report, such projects were often used to hide corruption.

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