UPDATE 2-SAfrica to re-examine nuclear plant plan -official
* SAfrica to revisit nuclear proposal owing to credit crisis
* Eskom to make decision on nuclear power plant
* Eskom asks govt to get involved in funding nuclear plant
(Adds quotes, details, background)
JOHANNESBURG, Nov 13 (Reuters) - South Africa's plan to build a nuclear plant to tackle its energy shortages has to be revisited in light of the economic climate and the project may be postponed, an energy ministry official said on Thursday.
The country plans to build its second nuclear power plant, estimated to cost billions of dollars and meant to provide 20,000 megawatts of power to help meet fast-rising demand that the country has not been able to keep up with.
France's Areva (CEPFi.PA) and U.S.-based Westinghouse Electric (6501.T) have bid for the contract. South Africa's state-owned utility Eskom [ESCJ.UL] has said it plans to choose by the end of the year which company will get the contract.
Tseliso Maqubela, acting deputy director general at the Department of Minerals and Energy, said the large scale of the investment made the decision difficult, especially in the context of the global economic downturn.
"To say that we can proceed with the nuclear build the way we had envisioned would be misleading. All our plans will have to be re-looked at and we will have to come to a happy medium … we will have to prioritise," he told an energy conference.
Maqubela said that re-prioritisation did not mean a change of policy, but that it would be difficult to see how South Africa could afford the nuclear plant now.
A decision either to give the contract to build the plant to one of the two bidders, or to delay the plant altogether was envisaged by the end of this year, he added.
The credit crisis and downgrading of Eskom's credit rating was likely to increase costs of borrowing, Maqubela said.
He said the government was waiting for Eskom to decide before acting further, but declined to elaborate on the timing.
"The decision still has to be made by the Eskom board and Eskom has to advise the government. We need advice on how to proceed," he said. Continued...
