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- China has promised extensive cooperation in the energy sector.
- SA was advised to streamline its tender processes.
- Relaxing BEE policies could make cooperation easier, a Chinese official said.
- For more financial news, go to the News24 Business front page.
The chairperson of the China Africa Development Fund, Song Lei, who signed a memorandum of cooperation with SA on energy issues on Wednesday, also had some advice: SA should streamline tendering and relax BEE rules to be more efficient.
Song was part of a phalanx of Chinese officials who briefed the media on Chinese-SA cooperation in the energy sector on the sidelines of the 15th BRICS summit in Johannesburg. The Chinese delegation included the heads of China's grid company, nuclear power company, and renewable energy sectors.
China was committed to assisting SA to solve its energy crisis, but to do so more speedily, SA should consider innovation of its tendering and contracting framework.
"If you stick to the current bidding and tendering framework, it might be difficult to be very efficient. I suggest streamlining the bidding and tender processes, especially for emergency and major power projects. Consider allowing the direct participation of Chinese power companies through integrated investment and construction and operation models.
"Also, relaxing BEE policies in transmission and distribution sectors can lead to stringent cooperation."
Minister of Electricity Kgosietsho Ramokgopa also briefed the media on cooperation planned with China. The R500 million of equipment donated by China, announced by Chinese President Xi Jinping on Tuesday, would provide 500 public institutions with backup power during load shedding, Ramokgopa said on Wednesday.
Ramokgopa said the 552 units would include petrol generators, diesel generators and batteries, with 450 units already on their way to SA.
Ramokgopa said the Chinese government was already supporting SA and had provided technical reports advising on improvements to the performance of Eskom's coal plants, grid expansion and electricity distribution.
China had the "cutting-edge technology" to improve power station performance, reduce emissions from coal power plants, roll out renewable energy, and modernise transmission and distribution infrastructure. It also had the liquidity to provide funding to SA power sector, which would be "cheaper than any other", he said.
"For us to expand transmission, we need to build 14 000km of new lines over the next decade. Over the past decade, we built 4 300km. We need technical know-how, but most importantly, we need money to roll out transmission. We need money that is cheap, that is concessional, and that has a component of a grant," he said.
