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Eskom and Coega Development Corporation (CDC) sign a collaborative agreement on South Africa’s nuclear new build programme
Tuesday 14 March 2017: Eskom and the Coega Development Corporation (CDC) today signed a memorandum of understanding to cooperate in the development of South Africa’s nuclear new build programme (NNBP). The two state-owned companies (SOCs) will work together in support of government’s plans to build local capacity through supplier development and localisation around the unfolding infrastructure for the nuclear programme.
Eskom’s Group Executive for Group Capital, Abram Masango, said: “We are gearing ourselves up in preparation for the nuclear new build programme in order to deliver the project within the set timelines and budget. We want to ensure that South Africans get reliable, decarbonised baseload power that will bring sustainable economic growth. In addition, it is critical to lay the foundation for local people to participate meaningfully during the various stages of the project by skilling them for jobs as well as business opportunities. We look forward to a productive working relationship under this memorandum with our counterparts, the CDC.”
The areas of cooperation covered in the MOU will include, but will not be limited to, the following:
       Project management and implementation services for infrastructure development
       Skills development and localisation (SD&L)
       Provision of the requisite skills training for different stages of the project
       Socio-economic development (SED) studies in relation to the impact of the NNBP
       Fitness for duty (FFD) centre processes
       Stakeholder engagement and communications
The CDC’s Executive Manager of Business Development, Christopher Mashigo said: “The collaboration with Eskom is aligned with the mandate of the CDC, which is to drive the creation of an industrial complex to promote integration with industry and increase value-added production, while creating employment and the associated socio-economic benefits in the region in which it is located. An integrated energy plan carries with it the potential to catalyse the (re-)industrialisation of the East Coast Corridor manufacturing economy – translating to a higher and inclusive growth path and job creation.”
Eskom has applied for the environmental authorisation for the first nuclear power reactors. The environmental assessment practitioners (EAPs) recommended Thyspunt site, which is located in Jeffrey’s Bay, in the Eastern Cape, as the preferred site. The success of the NNBP rests on the participation of various government departments and state-owned enterprises. The memorandum of understanding (MoU) between Coega (whose shareholders are the Department of Trade and Industry and the Eastern Cape Provincial Government) and Eskom (whose shareholder is the Department of Public Enterprises) enhances the bond between these state entities.
Eskom is the designated procurer for the nuclear new build programme in terms of the amended section 34 determination as gazetted in December 2016. The CDC is mandated to develop, grow, and attract manufacturing capabilities in the Coega Industrial Development Zone in the Eastern Cape and has extensive strategies that both parties can leverage for the NNBP.