Argus Media Limited

03/08/2023 | News release | Distributed by Public on 03/08/2023 15:04

Karpowership’s S African projects hit new hurdle

Turkish firm Karpowership's application for authorisation of its proposed emergency power project using a gas-fired power ship at Saldanha Bay in South Africa's Western Cape province has been temporarily suspended.

The Department of Forestry, Fisheries and the Environment (DFFE) halted the application after receiving a complaint from non-governmental organisation The Green Connection that Karpowership's environmental consultant Triplo4 fraudulently presented other persons' comments and views as those of small-scale fishers.

As a result, Triplo4's environmental impact assessment (EIA) that was submitted to support Karpowership's application did not comply with regulations, the NGO says.

Green Connection contends that Triplo4 failed to undertake the necessary work in relation to the application in an objective manner and failed to disclose all material information. It also did not meet "the minimum requirements, specifically with regard to public participation."

In a letter to Karpowership seen by Argus, the DFFE says that based on Green Connection's allegations, it appears that Triplo4 tried to mislead the department.

The EIA report claims that the potential impact on small-scale fishers of Karpowership's proposed project was thoroughly investigated when in fact there never was a focus group meeting with small-scale fishers, the DFFE says.

Triplo4 not only failed to engage those stakeholders who are opposed to the project "but have produced a report, which purports to represent small-scale fishers' views when in fact it does not contain the views of any fishers." Instead it relies on meeting participants' views to support a conclusion that the project should be authorised, the DFFE says.

The DFFE will now launch an investigation into the allegations of non-compliance. It has given Triplo4 until 17 March to respond to the allegations in writing.

Last year, Karpowership lost its appeal against the DFFE's refusal to grant environmental permission to permanently berth three gas-fired vessels at the ports of Saldanha Bay, Coega and Richards Bay.

The DFFE found information gaps and procedural defects in the public participation process, prompting it to reject the application. But it said the application could be reconsidered - if the flaws identified were addressed.

The Turkish firm was selected in March 2021 as one of 11 preferred bidders to provide 1.22GW - nearly two-thirds of the overall tender - under an emergency power programme aimed at alleviating the regular rolling blackouts that are crippling South Africa's economy.

However, the controversial multi-billion-rand contract award was beset from the start by allegations of corruption, government interference and claims that the bid process was rigged in favour of the Karpowership.

At the time, the deal - including the projected cost of supplying LNG to Karpowership's projects over the 20-year contract period - was valued at more than 200bn rand ($12.5bn). Global LNG prices spiked significantly in the interim during a global energy crisis triggered by the Russia-Ukraine war.

By Elaine Mills