South African Presidency denies reports about signing off power purchase agreements

The South African Presidency on Monday denied media reports that President Jacob Zuma has tasked two ministers to convince electricity utility Eskom CEO Mr Brian Molefe to sign off on the power purchase agreements (PPAs) with Independent Power Producers.

Such reports "are incorrect", the Presidency said in a statement in a bid to alleviate jitters in the energy field about a policy change.

Media reports quoted Silas Zimu, special advisor on energy to Zuma as having told a renewable energy conference in Cape Town last week that Zuma has appointed the Minister of Environmental Affairs Edna Molewa and Minister of Science and Technology Naledi Pandor to persuade Eskom to sign off on the agreements.

"The Presidency wishes to state that no such decision has been taken by either the President or Cabinet, and wishes to indicate as well that Mr Zimu spoke in his personal capacity. His remarks at the conference were not mandated by the Presidency or government," presidential spokesperson Bongani Ngqulunga said.

Ngqulunga said Minister in the Presidency Jeff Radebe has publicly expressed the support of cabinet and government to the implementation of the Independent Power Producers Procurement Programme (IPPPP).

All concerns that have been raised with regards to the IPPPP are currently being attended to, the spokesperson said.

The South African government introduced the IPPPP years ago to make up for the shortfall of energy.

The program showcases the private sector's willingness to invest in the power sector, where there is a transparent and well-designed procurement process, transactions provide reasonable levels of returns and key project risks are mitigated by the government.

The move is seen as critical to overcome the barriers that have constrained the country's power sector, which ultimately will constrain its economic growth and development. Endit