SA deal with Moscow almost a certainty

Russian leader Vladimir Putin (left) meets with South African President Jacob Zuma in Ufa, Russia, on July 8, 2015. File photo: Ivan Sekretarev

Russian leader Vladimir Putin (left) meets with South African President Jacob Zuma in Ufa, Russia, on July 8, 2015. File photo: Ivan Sekretarev

Published Jul 13, 2015

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Johannesburg - South Africa has given its clearest indication yet of a possible nuclear energy deal with Moscow, with the signing of the memorandum of understanding (MOU) between the two countries that would see 200 locals going to Russia for training.

The Department of Energy last week revealed that a deal with Russia was signed on the sidelines of the Brics summit in Russia, where Moscow would provide training for South African nuclear power plan personnel, engineers and construction workers in preparation for the launch of South Africa’s nuclear power plants.

The deal that is expected to cost South Africa more than R1.2 trillion will see Russia build South African nuclear power plants to alleviate the electricity crisis in the country.

South Africa put a six-month deadline to award the contracts.

But the DA last week lashed out at the deal, describing it as nothing short of gross impropriety while the competitive bid process was still under way.

DA spokesman on energy Gordon Mackay said the deal was a crude attempt by the government to bolster Rosatom’s bid over potential rivals.

“That these MOUs reportedly speak of co-operation in order to provide training for five categories of specialists for the South African nuclear industry is the clearest indication yet that Rosatom is the preferred bidder,” said Mackay.

“Russia currently produces Water-Water Energetic Reactors – while SA uses Pressurised Water Reactors. An expedited training programme on the use of Russian technology, which does not exist in South Africa, can only mean that government anticipates that Russian technology will at some future date be used in South Africa.”

The department said the second memorandum stipulated joint efforts of the parties to promote nuclear power in the country and to stipulate the development of educational materials and scientific literature on nuclear power, student exchange programmes for students of various levels of training, organisation of internships and summer courses, student competitions and teacher training.

“The memoranda signed in Ufa (a Russian city) represent another stage in the co-operation between the two countries aimed at strengthening joint efforts between Russia and South Africa in the field of nuclear energy,” the department said.

“The documents signed are the development of co-operation based on the Intergovernmental Agreement on Strategic Partnership and Co-operation in Nuclear Energy and Industry at the 58th International Atomic Energy Agency general conference in Vienna. Prior to that, on November 20, 2004, the parties concluded an Intergovernmental Agreement on Co-operation in the Peaceful Use of Nuclear Energy.”

The Coega Development Corporation welcomed the deal, describing it as a boost for the energy sector and an important catalyst for South Africa’s economic growth.

Coega’s business development manager for energy, Sandisiwe Ncemane, said the corporation was already involved in training and development for mega projects such as nuclear preparation. “The nuclear build programme is identified by the Industrial Policy Action Plan as a significant opportunity for new investment which will drive economic development,” said Ncemane.

“A strategic development of human capacity is required to enable the localisation strategy.”

Business Report

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