Eskom has announced the termination and new agreement for the control and instrumentation contract (C&I) at the Kusile power station.
The South African state-owned utility, Eskom, and Alstom S&E Africa have consensually terminated the Control & Instrumentation Works Contract for the Kusile Power Station, effective as of 17 April 2015.
With the support of both organisations, a consensual termination has been reached on a co-operative walk-away basis.
The termination of the C&I contract for the Kusile Power Station will not affect the C&I Works Contract for the Medupi Power Station, which Alstom will continue to execute in accordance with the terms of that contract. It was stated that the terms of the consensual termination and settlement agreement are confidential.
Taking over the C&I contract
ABB South Africa has been appointed to execute the Control and Instrumentation contract for the Kusile Power Station, situated at eMalahleni in Mpumalanga.
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. This 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.
The Acting Group Executive for Group Capital, Mr Abram Masango welcomed the appointment saying, “Eskom is 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”.