Public concerned by R15 billion investment project

While the department boasted and handed over the project as a major win for Klerksdorp residents, both MEC Bitsa Lenkopane’s administration and Urban Blue International explicitly stated that there was no contract or agreement in place, but merely an intent to invest. 
Department Spokesperson Jerry Matebesi said in response to media reports released after the hand-over, that the department wished to place it on record that Urban Blue International was one of the participants who attended the Provincial Investors Conference. 
“Urban Blue International was among the private sector companies that expressed the desire to make investments in the province and the Gas to Power project is an investment proposal by Urban Blue International. The province has been working on this project for over a year to ensure that it complies with all legislative requirements - up to the current point in which it has been taken to the local municipality where it is to be implemented. 
“It can be confirmed that at this point , all necessary processes are underway, including consultation with communities, national departments and any other relevant stakeholders. It is only when all of these processes have been completed, that the project will be able to get off the ground. 
“The project was driven by a Provincial Technical Task Team that is yet to hand over all the technical work undertaken to the municipality. Thereafter, the Matlosana Municipality is to also ensure that relevant processes and procedures are followed, and the project is successfully implemented. Now that the municipality has accepted to drive the project, future media enquiries can be directed to the municipality,” said Matebesi. 
However, public commentators this week demanded to know how a government department confidently announce a multi-billion rand investment project without any concrete agreements or contracts in place? Doesn’t this lack of formalisation pose a significant risk to the department’s credibility and the region’s economic stability? Furthermore, what exactly does “intent to invest” mean in this context? Is it merely a letter of interest, or is there some other form of commitment that hasn’t been made public? Was there a council resolution for the land use? 
According to Urban Blue International CFO, Chantel Bothma, “it is important to state that at this stage no final contract or project agreement has been signed between Urban Blue International and the City of Matlosana or any government entity.”
“While announcements may have been made regarding intentions and initiatives, the process is still subject to the conclusion of formal agreements, legal processes, and statutory compliance. No land has been acquired by Urban Blue International at this time. No formal agreement regarding land use has been concluded.
“Licensing and compliance processes in large-scale energy projects follow a structured regulatory path that involves multiple phases and approval stages. As no final agreement has yet been signed, the licensing and compliance applications will proceed once all required project approvals, including land use and procurement steps, are formally concluded. Certain licenses are issued to the project company and others are facilitated by, or issued to, the relevant municipality or provincial/national departments,” said Bothma.
In a media briefing and launch of this supposed investment bonanza, MEC Lenkopane together with the Mayor, signed handover certificate for the project.
When seeking further clarity from The Minister of Electricity’s office, Ramontsho Ramokgobo, Spokesperson said, “The project has not been registered or approved by NECSA or the Department. It would be best to ask the municipality for approved documents.”
At the time of going to press, questions had been sent to City of Matlosana’s communication Unit and the Mayor’s spokesperson for a formal response to the matter. However no response had been received by yesterday (Wednesday) at the Mahikeng Mail offices.