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Under fire Turkish energy company Karpowership has committed to inject R1.7 billion in various corporate social investment (CSI) projects in the Eastern Cape, KwaZulu-Natal and the Western Cape, where it aims to generate electricity from offshore liquefied natural gas over 20 years.
However, even though the tender was awarded two years ago Karpowership has been unable to moor the vessels to source LNG in South Africa. The company operates the world’s largest and only floating power plant fleet of 36 powerships, providing more than 5000 megawatts of power across Latin America, the Pacific, Africa and Europe.
Karpowership’s main impediment in South Africa has been litigious environmental organisations concerned about more carbon emissions and endangerment of maritime flora and fauna, which would deprive fishermen of their livelihoods. The green lobby groups have been opposing Karpower’s authorisations and licences through courts or the department of fisheries, forestry and environment.
The critics have also claimed that the project would bankrupt the country and even collapse because financial institutions have changed their minds on funding the three projects in Coega, Richard’s Bay and Saldanah Bay at a cost of about R3.5 billion each.
READ: 'SA critics of Karpowership are concerned about something they don't understand'
In other countries such as Brazil, Karpowership has been operating without any hassles. It operates at Sepetiba Bay, 60km south of Rio de Jainero. The company has ploughed back by capacitating about 200 fishermen, spending hundreds of dollars on CSI and green energy projects, such as establishing a solar plant in Rio de Jainero province.
According to the company’s 20-year plan in the three provinces, it will spend in primary and secondary education, bursaries and scholarships; solar water geysers and photovoltaic systems; environmental sustainability projects; support to vulnerable communities; and sport and recreation.
Karpowership said it would also fund enterprise, supplier and skills development projects. Karpowership’s business development director, Mehmet Katmer, said:
READ: Karpowership attacks De Ruyter over “unfounded” corruption allegations
The Coega Bay area in the Eastern Cape will, if the company eventually starts operating, benefit from an investment of R567.9 million in 20 years or R28.4 million per year and R2.37 million per month. In Richard’s Bay in KwaZulu-Natal, the company will spend R586.8 million over 20 years or R29.3 million per annum. Saldannah Bay communities in the Western Cape will benefit from a R498.8 million investment over two decades.
Karpower’s three vessels are expected to generate 1220MW, split into 450MW in Coega, 450MW in Richards Bay, and 320MW in Saldanha. This will all be fed into the power grid to ease the pressure on Eskom.
The company indicated it was willing to reduce the 20-year contract term if it was undesirable but would not give up on its contract as it had already spent about about R500 million in litigation, applications and research.
- City Press journalist Sizwe Sama Yende was invited to Rio De Janeiro by Karpowership.
