(MENAFN- Nam News Network)
CAPE TOWN, Sept 2 (NNN-SANEWS) - Deputy President Paul Mashatile has expressed his gratitude to the BRICS New Development Bank for its backing of South African infrastructure investment.
“I want to express my gratitude once again for the bank's pledge, and specifically for the promises made regarding the bank's assistance for South African infrastructure investment. In this regard, we take note of the US$5.6 billion in loans extended to our country over the last eight years,” the Deputy President said.
He was addressing the Energy Seminar convened by the BRICS New Development Bank at the Cape Town International Convention Centre on Saturday.
The NDB has approved $2.3 billion for 10 renewable energy projects, including solar PV, wind, hydropower, biomass, and hybrid systems with storage. These projects aim to install a 2.8GW generation capacity, reducing over 4 million tonnes of CO2 emissions annually.
“We also appreciate the bank's plans to assist Transnet in resolving the deficiencies in freight rail infrastructure. The Transnet project in particular is of utmost importance in guaranteeing a goods system that is internationally competitive, allowing for the continuous expansion and diversification of the country's economy,” Mashatile said.
He highlighted that during their discussions they had agreed that a challenge was the sluggish payment of authorised projects in South Africa. He discussed the matter with the Minister of Finance Enoch Godongwana and his team at National Treasury, who have promised to attend to it.
“We are also impressed that the bank has appointed former National Treasury official Mr Monale Ratsoma as its Chief Financial Officer and Vice-President. We will work with you to ensure that the pledge that the bank made of US$3 billion at the BRICS Summit comes to reality because it is focused on supporting our energy strategy,” he said.
Mahsatile told the NDP President that the government is especially eager to learn from China's experience in rapidly scaling up renewable energy capacity and modernising its grid infrastructure; India's successes in promoting rural electrification and integrating large-scale renewable energy projects; Brazil's expertise in hydroelectric power and bioenergy and Russia's strategies for managing a vast transmission network and its progress in nuclear energy.
“We hope to gain insights into effective models for private sector participation in transmission infrastructure development; strategies for balancing grid stability with the integration of variable renewable energy sources; innovative financing mechanisms for large-scale energy projects and best practices in managing the socio-economic aspects of energy transitions.
“Specifically, one of the lessons we are learning from one of the BRICS Member Nations is that they have invested in the creation of new cities as a method to eradicate poverty. We are of the same opinion that it is imperative to allocate resources towards the construction of new cities in Africa in order to alter the spatial perspective of our cities,” he said.
“As we collaborate with the NDB, we will invest in new cities in response to today's realities, which are growing urbanisation, migration, climate change, poverty, unemployment, and pandemic management. The future is in the cities.”
The Deputy President told delegates that if South Africa accelerates the construction of these cities, it will address the large influx of people from rural areas moving to urban areas, which has put tremendous strain on cities, causing traffic congestion, housing infrastructure backlogs, and, to some extent, an increase in crime rates.
“However, as we develop these cities, we must remember that sustainable cities require dependable, inexpensive, and renewable energy to operate. High-energy consumption patterns, rising energy costs, and environmental deterioration caused by the use of fossil fuels render cities vulnerable and inefficient,” he said.
The Deputy President spoke about the process of unbundling Eskom into three separate entities: generation, transmission, and distribution. This separation will enhance efficiency, improve accountability, and open up the sector to much-needed competition and investment.
“We have also implemented a debt relief programme for Eskom, allocating R254 billion over the next three years. This financial support is crucial for Eskom's operational stability and will enable the utility to invest in critical maintenance and upgrades of existing infrastructure,” he said.
The country is expanding generation capacity where several steps have been taken already.
“To this end, we are implementing an ambitious transmission expansion plan, including piloting Independent Power Transmission (IPT) projects and streamlining regulations to accelerate the development of transmission infrastructure.
“This initiative aims to unlock renewable energy potential in the Northern, Eastern, and Western Cape provinces. The aim is to connect new generation capacity to the grid.
“As we pursue these reforms, we remain steadfast in our commitment to a just energy transition. We have, however, decided not to transition into the dark. We are a coal-endowed country,” he said.
The Deputy President said the reforms and initiatives were just the beginning as the country is open to learning, adapting, and collaborating. - NNN- SANEWS
MENAFN02092024000200011047ID1108625100
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.