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Eskom appoints new SA contractor for Kusile

Cape Town – Eskom on Friday announced it appointed a new South African contractor to replace Alstom to execute the control and instrumentation (C&I) for the Kusile power station.

Kusile is situated at eMalahleni in Mpumalanga.

The local contractor, ABB South Africa, was selected from two suppliers which were evaluated as part of an extensive procurement process executed in parallel with the negotiation and subsequent consensual termination of the C&I contract, Eskom said in a statement.

Earlier on Friday, Eskom said it and Alstom Save had consensually agreed to terminate the C&I works contract for Kusile, effective as of 17 April 2015.

Eskom has been battling to bring its three new coal stations online, due to massive delays in construction and testing.

Out of Kusile, Medupi and the Ingula pumped-storage facility, only unit 6 at Medupi is adding power (794MW in total) to the grid.

Alstom has been operating in South African for over 100 years and employs 600 permanent staff. It has provided major equipment to 12 out of the 13 coal-fired power plants in the country as well as Koeberg Nuclear power station. 80% of South Africa’s electricity is generated from Alstom turbines.

“With the support of both organisations, a consensual termination has been reached on a co-operative walk-away basis,” the utility said regarding Alstom.

Brain of a power plant

Eskom said of ABB the procurement process, which has now been finalised, included an early design process and was focused on ensuring schedule security and the seamless introduction of an alternative contractor for Kusile.

Acting Group Executive for Group Capital, Abram Masango, welcomed the ABB appointment. He said Eskom was looking forward to working with ABB in the “execution of the control and instrumentation works, which is the brain of a power plant, at one of South Africa’s important projects, Kusile”.

“We believe that the procurement process that we followed will ensure a seamless transition and that it formed a strong basis for a competent supplier to deliver a quality product within agreed timelines,” he said.

No impact on Medupi

Eskom said the termination of the Alstom contract for Kusile would not affect the C&I works contract for the Medupi Power Station. Alstom would continue to execute in accordance with the terms of that contract, according to Eskom.

The terms of the consensual termination and settlement agreement are confidential as between Eskom and Alstom.

On its website, Alstom said it would “supply, install and commission the full turbine island, plant control system and Wet FGD Plant for the Kusile Power Station, located close to Emalahleni”.

“The Kusile power station will provide 4790 MW representing approximately 12% of South Africa’s future generating capacity.

“The Kusile plant incorporates Alstom advanced Wet Flue Gas Desulphurisation technology to reduce NOx and SOx emissions.

Source – Fin24