DNG loses bid to halt Karpowership emergency power programme
Updated | By Nokukhanya N Mntambo
DNG Energy has lost its legal bid to halt an emergency power programme that would see its rivals generate close to 2000 megawatts of power for the South African national grid.
The Pretoria High Court ruled against the liquefied natural gas supplier on Sunday.
Last year, the National Energy Regulator of South Africa (Nersa) approved three generation licences for Karpowership SA, giving way for the company to provide floating gas-fired power ships at three of the country's ports.
The 20-year-long deal would see Karpowership set up shop at ports at Saldanha Bay, Coega and Richards Bay.
Government's Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) was designed to enable independent power producers to increase the country's electricity capacity.
By government's estimates, this would help cut down no load shedding.
DNG challenged the bidding process, alleging the process was marred by corruption.
DNG wanted to replace Karpowership's bid.
But the court ruled otherwise.
"Karpowership SA and the RMIPPPP process has been convincingly vindicated by the ruling of the independent Court," said a Karpowership SA spokesperson.
"We have always maintained that allegations made by DNG were a matter for the Courts and we have unwaveringly expressed our confidence in the Legal System of the Republic of South Africa to come to a fair and just ruling.
"Today, we are one very significant step closer to commercial close and the implementation of our 3 projects."
Karpowership is yet to get environmental authorisation to produce electricity.
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