DNG Seeks to Interdict Winners of South African Power Tender

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(Bloomberg) — A losing bidder in a South African tender for the provision of 2,000 megawatts of power is seeking to interdict the winners from completing their agreements.

The application to South Africa’s High Court by DNG Energy Ltd. threatens to halt the provision of electricity needed to ease recurrent outages in Africa’s most industrialized economy and imperils investment estimated by the government at at least 45 billion rand ($3.3 billion).

The request for the interdict came in the form of an amendment to relief sought in an earlier application by DNG to have its losing bids substituted for those of Karpowership, a Turkish company that was awarded preferred bidder status for the provision of 1,220 megawatts of energy. DNG has also proposed that it could replace bidders other than Karpowership.

The South African company had initially sought to have the entire bid process halted, but then agreed to seek to replace Karpowership to allow the court case to be resolved more urgently. Most of the winning bidders have until the end of July to reach financial close on their agreements.

DNG has alleged that the bidding process was tainted by corruption. That allegation has been rejected by the government and the winning bidders.

“Due to confidentiality, which seeks to protect all parties involved, DNG believes that the information, which is currently available, does not give a full picture up until such time the court allows us air the issues,” said Nto Rikhotso, a spokeswoman for DNG.

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