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Coega gearing up for projects worth R110bn - published 1 Dec 2009
The construction of an R80- billion refinery for PetroSA and a combined cycle gas turbine, for which expressions of interest have been called, could mean two projects worth R110-billion will be under way in the Coega industrial development zone (IDZ) within the next four years in addition to other investments currently being finalised.
The Coega Development Corporation (CDC) has called for expressions of interest for the construction and operation of a combined cycle gas turbine (CCGT) power plant, a project that will cost in the region of R30-billion.
This is the sum that will be invested by the selected bidder.
The CCGT will produce 2400MW of power for the national electricity grid – three times the current demand in Nelson Mandela Bay – and will, after the refinery, be the largest project the CDC has “enabled” to date.
CDC business development executive manager Khwezi Tiya says expressions of interest will be received until February 1, after which a short-list of companies and consortiums will be complied of those pre-qualified who will be asked to respond to a detailed request for proposals.
That process will last until September, after which the preferred bidder will be selected.
From the end of next year, negotiations with the preferred bidder will be under way along with other issues such as licensing, power purchase agreements and environmental impact assessments. “We should see something starting on the ground by the beginning of 2013,” Tiya said.
He said projects of this scale and complexity required “high levels of co-ordination and planning, which for the CDC is something that we do every day”.
He says the levels of interest in the project have been “very high” from Africa, Japan and China as well as Western Europe, adding that interest in investment in energy is considerable.
“The most significant thing for us is that we said we would do it, and the fact that we have now called for expressions of interest that will be published internationally today shows the commitment we have to ensuring the success of this strategic project, as well as ensuring that we get the best solutions based on global best practice.”
The CDC, he said, had been working closely on the project with the Mandela Bay Municipality, the Energy Department and I-Gas while working on the pre-feasibility study.
Tiya says it will be “one of the most complex projects the CDC has worked on” and will involve receiving, storing and re-gasifying liquid natural gas (LNG) and delivering it to a modular CCGT power plant.
It includes the design, procurement, construction and operation of the power plant, power transmission to the main IDZ sub-station and the option of sourcing and transporting the LNG.
The Herald
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