PHUTI MOSOMANE
GAUTENG MEC for Finance Jacob Mamabolo says although the energy supply challenge facing the country has become the single biggest threat to economic recovery and future growth, the province will be extremely careful in funding solutions meant to mitigate against the energy challenges.
Mamabolo said this is not only because of its effects on the supply of electricity, but also on water and sewerage reticulation.
“That is why there is heightened activity in finding solutions to mitigate the effects of load-shedding. Despite the haste to find solutions, it will be prudent to resource only those proposals that are sound and credible from a technical perspective, as well as affordable,” Mamabolo said delivering his 2023 Gauteng Budget Speech.
The Office of the Premier, working together with the Corporative Governance and Traditional Affairs (CoGTA), Gauteng Provincial Treasury and Gauteng Infrastructure Financing Agency (GIFA), are building in-house energy capacity to support efforts that the province and municipalities are making in finding lasting solutions to the current energy crisis, he said.
Statistics South Africa’s economic data released on Tuesday revealed that real growth GDP contracted by 1.3% quarter to quarter in Q4, from a revised upwards growth of 1.8% quarter to quarter in Q3 because of the adverse effects of loadshedding.
Mamabolo said an amount of R1.2 billion in seed capital will be set aside by the Gauteng Provincial Treasury as announced by Premier Lesufi during the State of the Provincial Address, to fund projects based on assessment of readiness to implement and value for money.
GIFA, together with its partners within Bokamoso Ba Rona Initiative (a Non-profit Company), are facilitating the creation of a sustainable post-mining economy in the West Rand region of Gauteng.
“Through this Initiative, Sibanye Stillwater and Far West Rand Dolomitic Water Association donated 30 000 hectares of land to the NPC for development of agro-industrial projects and commercial catalytic projects,” he added.
In 2022 GIFA, issued a Request for Proposal (RFP) to the market for the development of a Merafong Solar Farm Cluster.
The solar farm cluster will be located on the land donated to the NPC.
So far, Mamabolo said, GIFA has identified six Independent Power Producers to develop 1 500 hectares of this allocated land, and this has a potential of generating 800MW.
He told members of the provincial legislature that the process of allocating land parcels to the IPPs is underway and will be completed in March 2023 when lease agreements are signed.
GIFA is also concluding negotiations with a private party on Phase 1 of the Rooftop Solar PV project to generate close to 8MW from selected hospitals.
“As part of addressing the energy crisis we are going ahead with Phase 2 of the Rooftop Solar PV project in government owned-properties especially education and health institutions. We will invite the developers as part of Gauteng’s response to the energy crisis, he added.
He said unlike other provinces where there is just talk, Gauteng is already steps ahead in working to urgently resolve the energy crisis.
Mamabolo said Gauteng welcomed the Minister of Finance Enoch Godongwana’s announcement of tax rebates to encourage both businesses and individuals to invest in Renewable Energy.
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