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Some
of the language here sounds vaguely familiar..... (...expecting
to see more similarity soon, as a result of CANDU new-build cancellations in
Ontario, New Brunswick, Alberta....) http://www.timeslive.co.za/business/article555632.ece/Government-pulls-plug-on-PBMR
Government pulls plug on PBMR R9bn taxpayer-funded nuclear energy plan finally grinds to halt Jul
18, 2010 12:00 AM | By PREGA GOVENDER The
Pebble Bed Modular Reactor Company (PBMR), which was established in 1999 to
build small nuclear power reactors, faces imminent closure. In
a letter dated July 5, Public Enterprises Minister Barbara Hogan told the
National Union of Mineworkers (NUM): "The minister of finance has clearly
stated that there will be no further funding for the company, and I would like
to reiterate that this position has not changed. "It
is clear that the remainder of the cash on hand is to be utilised solely for the
winding down of the company as well as the preservation of the intellectual property." One
objective was to design, license and build a prototype nuclear reactor plant,
which, if successful, would have paved the way for building small power plants
to help meet SA's needs. The
company operates as an independent entity governed by an agreement between
founding investors Eskom, the Industrial Development Corporation (IDC) and US
nuclear giant Westinghouse. It
has spent R5-billion on projects since 1994, including R2.7-billion on a
demonstration power plant, which was to have been built at the Western Cape's
Koeberg nuclear power station, but was later scrapped. In the process, the
company wasted R268-million on the manufacture of a major component of the
demonstration power plant, a 2000-ton reactor pressure vessel. The
vessel, which is due to leave the Spanish port of Santander next Sunday, will
be stored at Saldanha Bay for R10000 a month as the company can no longer
afford the R1.4-million it will cost to transport it to Pretoria. Business
Times was told that the company decided to have the component shipped to SA as
it would have been liable for R34-million in VAT had it remained in Spain.
Nuclear experts were unanimous this week that the vessel would have to be
scrapped as the PBMR company changed the original design of the demonstration
power plant last year to 200MW from 400MW. The vessel can function in a 400MW
power plant only. Although
the part is unfinished, as the contract for its construction was cancelled last
year, PBMR was forced to pay the Spanish builder R268-million for the
incomplete product. The original contract price was R317-million. Payments
to companies that made parts for the demonstration power plant include: •R503.2-million
to Japan's Mitsubishi Heavy Industries for a helium turbine for the power
plant; •R256.8-million
to German company SGL Carbon for manufacturing carbon reflector blocks; and •R256-million
for graphite for the demonstration power plant. The
company also spent millions of rands manufacturing coated uranium oxide
particles encapsulated in graphite fuel spheres, which were sent to Russia for
testing. However,
staff say the financial cut-off did not stop the company recently giving golden
handshakes of R1.8-million each to some of its general managers. Last
year, the company's 11 executives were paid a combined R18-million in salaries
and other benefits. Other big payments since 1994 include: •R2-billion
to mostly overseas consultants; •R115.9-million
for building rental; •R707.9-million
for the construction of a pilot fuel plant; and •R172-million
for overheads. Hogan
recently turned down a rescue plan proposed by the NUM that included a request
for a R262-million government bail-out until March next year. In a detailed
submission to Hogan, the union called on the auditor-general's office to
conduct a forensic investigation into the company's financial affairs. The
union also called on the government to suspend the company's board and executive
officers. It said some engineers and scientists were "inappropriately
qualified" for nuclear reactor engineering applications. "The
actions of certain individuals can be treated as sabotage for changing the
design almost every second year. It seemed as if they did not want to see the
reactor built." Union
general secretary Frans Baleni deplored the company's "wasteful
expenditure. The closure is marked by serious allegations of corruption and
unethical conduct. We would be pleased if it can be investigated
thoroughly," he said. A
nuclear expert employed at PBMR blamed the board and executives for the
company's failure. "The technology in terms of electricity production was
good, but the only problem was that it was not well managed. Nothing was ever
achieved by the company. It was a waste of taxpayers' money." Eskom
said in a short statement that it was a minority investor, and referred queries
to PBMR. PBMR's
acting chief executive Alex Tsela declined to comment, referring all questions
to the company's corporate communications department, which could not be
reached for comment. The
chairman, Alistair Ruiters, could not be reached for comment either. |