Eskom terminates Alstom’s Kusile C&I contract, appoints ABB
State-owned electricity utility Eskom reported on Friday that the control and instrumentation (C&I) works contract with Alstom at the Kusile power station project would be “consensually terminated” as from April 17, 2015.
ABB South Africa had been selected to complete the execution of the C&I contract at the 4 800 MW Kusile coal-fired power station project site, situated in eMalahleni, Mpumalanga. No value was given for either the terminated contract or the new contract.
The utility said in a statement that the termination had been reached on a “cooperative walk-away basis” and would not affect the C&I works contract at the Medupi project, in Limpopo, which Alstom would continue to execute.
“The terms of the consensual termination and settlement agreement are confidential as between Eskom and Alstom.”
ABB, Eskom indicated, had been selected from two suppliers that were evaluated as part of a procurement process pursued in parallel with the negotiation and subsequent consensual termination of the C&I contract.
Acting executive for group capital Abram Masango, who described the C&I as the “brain of a power plant”, insisted that at the procurement process would ensure a “seamless transition” from Alstom to ABB.
The process included an early design process and was focused on “ensuring schedule security and the seamless introduction of an alternative contractor for Kusile”.
Earlier this year, the utility revealed that Kusile Unit 1 was scheduled for synchronisation only in the first half of 2017 and that it would enter commercial operations during the second half of 2017. This represented a major schedule slippage from earlier indications that synchronisation could be achieved in the first half of 2016.
The cancellation of the C&I follows on from Eskom having “exercised its contractual rights” in 2014 to appoint Siemens to replace Alstom as the supplier of the boiler protection system (BPS) at Medupi power station project. The BPS formed part of the larger Medupi C&I package for which Alstom remained responsible.
The French multinational is also installing the turbines and generators at both Medupi and Kusile.
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