EPCM Bonisana (Pty) Ltd was appointed by the National Energy Regulator of South Africa (NERSA) in August 2019 to perform a review over the prudency of expenditure incurred by Transnet SOC Limited and it’s relevant subsidiaries on its New Multi Product Petroleum Pipeline (NMPP) project.
Conducting analysis, investigations, asessments, reviews and verifications to produce reports on:
- preliminary findings made by Cresco Project Finance (Pty) Ltd and other reports or supporting documents availed by NERSA;
- findings on the processes followed by Transnet in the procurement of the NMPP construction services and assets;
- findings on the prudency of the costs of the NMPP project which shall be supported by excel spreadsheets quantifying the impact of Bonisana’s findings and conclusions;
- the adequacy of contract(s) in terms of dealing with cost escalations due to unforeseen occurrences such as terrain obstacles, geotechnical challenges and other unforeseen costs;
- the adequacy of contract(s) with regard to dealing with risk allocation between Transnet and the contractor employed by Transnet and whether or not any risk allocations were normal and prudent in accordance with the industry norms and standards;
- an expert opinion report on the implementation of the Prudency Guidelines and other related documents and the adequacy thereof;
- a recommendations on amounts which should be deducte from the regulatory asset base and amounts which should be clawed back from or paid back to Transnet in respect of instances where applicable requirements were not met.