OUTA concerned about the R220 bln costing for Turkish Karpowerships

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The Organisation Undoing Tax Abuse (OUTA), says it is concerned about the estimated R220 billion costing for the Turkish Karpowerships that could be used to generate electricity at a number of South African ports.

It says the costing was done before the rand’s decline, and an increase in gas prices due to Russia’s invasion of Ukraine, among other things.

The concern comes after a revelation by the transport department that in February it granted Karpowership permission to moor the ship-mounted power plants at three harbours.

OUTA’s Wayne Duvenhage says he’s also concerned about possible corruption in the deal.

“The biggest issue and concern that we have is that this R220 billion estimate was pre-Ukraine war, the rand has tanked by 35% since then, since the 2021 decision. The price of liquid natural gas has gone up nearly three-fold, and we’re at the mercy of the fluctuating rand, as well as liquid natural gas prices. So, it will definitely be the most expensive by far, source of energy, if it ever goes ahead.”

Discussion on the Karpowership access to three ports: