PRETORIA - The Department of Mineral Resources and Energy (DMRE) on Monday said it “welcomes” the high court’s decision to dismiss with costs DNG Power Holdings (Pty) Ltd’s application to set aside a deal it claimed was corrupt.
The application by DNG Power Holdings sought to stop the controversial Karpowership emergency programme to supply 2 000 megawatts of power to South Africa’s grid.
DNG Power Holdings had challenged bidding processes in court, alleging that there was corruption involving government officials which led to Turkey’s Karpowership, which supplies electricity from gas-fired plants on ships, winning the bulk of the emergency power contract.
The government has denied corruption claims and says DNG lost its bid because it didn’t meet requirements.
The DMRE said the high court ruling confirms that the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) was conducted under applicable legislation, including section 217 of the Constitution, and was based on a fair, equitable, transparent, competitive, and cost-effective process.
The DMRE said the court decision enables the government and Eskom to finalise governance and regulatory approval processes to conclude financial close with RMIPPPP preferred bidders by end of March 2022.
“It is expected that these projects will be operational and ready to deliver much-needed generation capacity to the national grid starting 12 months from financial close,” said the department.
According to eNCA, DNG said it will be appealing the judgment.
IOL