Swiss company scoops R1.9 billion Eskom contract
Switzerland based power and automation technology group, ABB has officially announced that it has won a contract from South African power utility, Eskom, worth over $160 million (R1.9 billion).
ABB will supply control systems, software and instrumentation for the 4,800 megawatt (MW) Kusile coal-fired power station currently under construction in Mpumalanga.
It follows Eskom’s termination of its contract for control and instrumentation works with Alstom S&E Africa on Friday (23 March).
The much-delayed Kusile power station was due to come online in 2014, but its 6 x 800MW units are now only expected to come online in 2020.
“With the support of both organisations, a consensual termination has been reached on a co-operative walk-away basis,” Eskom said in a statement.
Alstom C&I still has a contract in place for Eskom’s Medupi power station, which came online earlier in March, following similar delays to Kusile.
“ABB 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 on Friday.
Kusile will be the fourth largest coal-fired power station in the world and is among a new generation of high-pressure, high-temperature power installations, also known as supercritical, whose efficiency surpasses that of conventional coal-fired power plants, producing lower emissions and reducing fuel costs, ABB said.
ABB is supplying a complete control and instrumentation solution for the entire plant, including boiler protection and plant simulator, engineering, installation, commissioning, optimization and training.
Eskom recently suspended its chief executive Tshediso Matona, finance director Tsholofelo Molefe, group capital executive Dan Morokane, and commercial and technology executive Matshela Koko as the power utility embarks on a fact-finding inquiry.
In recent months, Eskom has battled to keep the lights on following the collapse of one of its coal storage silos, diesel shortages, and maintenance issues.
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