Eskom wants Karpowership to sign an indemnity clause to protect the power utility from the outcomes of corruption allegations surrounding the deal.
South Africa’s bid to secure 2,000 megawatts of so-called emergency electricity has hit an obstacle, with the state power utility asking the biggest winner of the tender to indemnify it against any adverse outcomes from corruption allegations, two people familiar with the situation said.
While DNG, which demanded that it replace Karpowership, lost the High Court case in January, and it has been allowed to appeal. The government and Karpowership have denied wrongdoing. Eskom Holdings SOC Ltd., South Africa’s national power utility, and Karpowership declined to comment.
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