The preferred bidder to build and operate South Africa’s first private sector-owned power generation plants was announced by Minister of Minerals and Energy Buyelwa Sonjica on Monday.
The AES Consortium — led by AES Pacific Ocean Holdings and several local companies — has been selected to build and operate the gas-turbine plants in Durban and Port Elizabeth.
Pending the finalisation of the contracts with AES, building was expected to start at the end of November.
Construction of the plants was expected to cost more than R5-billion.
Once completed, the two plants would have a combined capacity of about 1 000MW, which would be sold to Eskom.
”The power plants will contribute to meeting the country’s security of supply challenges,” Sonjica said.
The two power plants were expected to enter commercial operation towards the end of 2009.
The project is seen as a pioneering project to start private-sector electricity generation.
The aim is to have 30% of the country’s power generated by the private sector while Eskom would generate the remaining 70%. — Sapa