Mabuza defends 20-year contracts for emergency power with independent producers
Deputy President Deputy David Mabuza said that the proposed 20-year agreements would go a long way in making electricity tariffs cheaper and addressing power constraints.
JOHANNESBURG - Deputy President Deputy David Mabuza has defended the signing of lengthy and costly 20-year contracts for emergency power from independent power producers.
He said that the proposed 20-year agreements would go a long way in making electricity tariffs cheaper and addressing power constraints.
Mabuza was answering oral questions in the National Assembly on Wednesday.
The deputy president responded to a question from the Democratic Alliance (DA)’s Kevin Mileham about the bidders for the Risk Mitigation IPP Power Procurement Programme and the 20-year agreements.
The bidders included Karpowership, which owned a fleet of power supply ships.
Mabuza said that the lengthy contracts were necessary.
"Basing the Risk Mitigation Independent Power Producers Procurement on a 20-year power purchase agreement will ensure that the projects around this additional capacity remains sustainable. This means that costs are covered whilst guaranteeing capacity that is available."
On corruption allegations against some of the bidders, Mabuza said that these must be reported to law enforcement agencies.
"To the honourable member in question, I'd suggest that we approach the law enforcement institutions with these allegations so that it can be probed."