As part of their effort to curb the unending the chronic electricity shortages, South Africa has resorted to building a coal-fired power plant and has therefore asked bidders to send their proposals. This is part of a string of initiatives launched this week aimed at ending electricity shortages.
According to the tender notice, bidders will need to pay a non-refundable 200,000 rand ($17,000) fee when they submit proposals to build, operate and maintain the new coal plants.
The winners of the bid will be given a power purchase agreement with struggling state utility Eskom.
South Africa has suffered its worst power shortages in six years this month due to creaking power plants and emergency maintenance. Eskom is facing a 20 billion US dollars funding shortfall over the next four years, forcing the government to consider selling state assets to bail out the utility.
The government announced on Thursday that it would launch a private sector-led coal-fired power plant programme by January 2015, which should add 2,500 megawatts of generation capacity to the grid.
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It also said it would increase diesel and gas imports to fuel under-supplied plants and sign deals next week for renewable energy projects that would add an additional 1,000 MW.
