Minister of Finance Trevor Manuel has allocated R580-million for the development of the pebble-bed modular reactor (PBMR) for the 2006/07 financial year.
In the Budget review released on Wednesday, the minister said that the allocation will be made to the Department of Public Enterprises.
I-Net Bridge earlier quoted Congress of South African Trade Unions economist Neva Makgetla as saying that the modular reactor project is not only “a hi-tech fancy toy”, but it goes against the spirit of job creation because it is not labour intensive. She suggested that its returns on investment are therefore uncertain.
The South African government recently announced pebble-bed deals worth R17,5-million and R312-million with United States group Westinghouse and Equipos Nucleares of Spain ahead of the proposed construction of the PBMR’s demonstration power plant at Koeberg, Western Cape.
Last week, Minister of Minerals and Energy Lindiwe Hendricks said the success of the pebble bed pilot project will determine what investment is made in the building of conventional nuclear plants in the future.
The review noted that the pebble bed is a high-temperature closed cycle gas turbine power conversion system that promises to provide “an efficient and safe nuclear generation alternative”.
The government will own 51% of the total equity in the project, including shares held by the Industrial Development Corporation and Eskom, with the balance held by both local and international investment partners.
During the initial feasibility stage up to June 2004, R1,45-billion was spent on the development of the pebble-bed technology and the design of the demonstration power plant and pilot fuel plant.
Allocations of R600-million and R580-million were made in 2004/05 and 2005/06. — I-Net Bridge