28.07.2009
COEGA SEEKS PREFERRED BIDDER FOR POWER PLANT
The Coega Development Corporation (CDC) on 13 July said it wanted to find a preferred bidder for a $4bn gas- turbine power-generating plant within a year to augment the security of SA’s electricity supply.
Khwezi Tiya, Executive Manager of business development at the CDC, said the corporation had finished its pre-feasibility study of the new power plant, which would produce up to 3200MW once completed. The plant promises to add to the growing list of projects making their way to the Coega Industrial Development Zone near Port Elizabeth. It underscores the need for secured electricity supply and diversity of energy sources at a time when electricity prices are rising.
Mr Tiya said the Government had always explored different sources of energy besides traditional options such as coal, and gas was one of those alternative sources. He said a preferred bidder, a private power producer, would build and operate the plant. The first 500MW would be available 18 months after the start of construction, which was due to commence by July 2012.
Meanwhile, speaking ahead of the construction of general Motors SA’s (GMSA’s) R250m pan-African parts distribution centre, Pepi Silinga, CEO of the CDC, conceded that the economic downturn posed a challenge to the export processing zone.
Mr Silinga lauded GMSA’s investment in the Coega zone. In the turbulent economic climate, GMSA’s investment sent out a “brilliant signal”.
“Not only are we open for business, (but) our value proposition remains a compelling one even in these tough economic circumstances,” he said, adding that GMSA was the first original equipment manufacturer to invest in the industrial zone.
For the 2008-09 financial year, six companies had committed a total of R3,9bn to investment in the Coega zone.
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