South African government under is reportedly pushing ahead with the ‘Nuclear Deal’ in the background dispite the recent “Downgrades” which might force the Country to cut expenditure and Friday mass mobilization against the status co.
According to a confidential document to which the City Press based their story this morning, in June this year the power utility Eskom will issue a formal request for proposals for the R1 trillion contract for the nuclear build programme.
The winning bidder will be confirmed in March next year and the contract signed and sealed between December 2018 and March 2019.
The controversial nuclear deal is believed to be one of the reasons behind President Zuma’s recent cabinet reshuffle.
Fitch in their statement following the downgrade stated in no uncertain terms that a key driver behind the decision was that “Eskom, has already issued a request for information for nuclear suppliers and is expected to issue a request for proposals for nuclear power stations later this year.
The treasury under its previous leadership had said that Eskom could not absorb the nuclear programme with its current approved guarantees, so the treasury will likely have to substantially increase guarantees to Eskom”.
If the government pushes ahead with the nuclear developments it might spark more protests for Zuma to step down