Legal battle looms for Eskom - report

2013-07-14 10:05
Public Enterprises Minister Malusi Gigaba inspecting the Medupi Power Station near Lephalale in Limpopo. (Werner Beukes, Sapa)

Public Enterprises Minister Malusi Gigaba inspecting the Medupi Power Station near Lephalale in Limpopo. (Werner Beukes, Sapa) ((Picture: Werner Beukes/Sapa) )

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Video

Numsa calls for Medupi investigation

2013-07-11 15:05

Numsa called for an independent investigation into alleged collusion by construction workers at Eskom's Medupi power station in Limpopo. Watch.WATCH

Cape Town - Eskom is preparing for years of legal wrangling to recover costs incurred by the delays from key suppliers at Medupi which have seen the power suppliers costs rise from R87bn to an estimated R105bn, excluding interest.

The utility awarded a R20bn contract for boilers to Hitachi Power Africa and R13bn for steam turbines and control and instrumentation software to Alstom in 2007. Eskom has now called performance bonds on both contracts after the suppliers failed to meet crucial deadlines, reported the Sunday Times.

According to the report, a standard feature in construction contracts, a performance bond is typically 10% to 15% of the contract price, placed by the contractor with a bank a guarantee. Eskom has called performance bonds from both suppliers but warned that refunds might be difficult to obtain.

Refunds from contractors would take a "long time" because Eskom would have to deal with massive legal contractual issues, said Eskom CEO Brian Dames.

Hitachi has already challenged Eskom in court. They said this week they had completed 97% of the work on Medupi’s unit 6 boiler and was on track to meet Eskom’s original December 2013 deadline.
 
Read more on:    eskom

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Who will lead the ANC?

2017-01-22 00:07

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
18 comments
Comments have been closed for this article.

Inside News24

 
PARTNER CONTENT
How much food do you need to concentrate?

We have been taught that we need three meals a day in order to make it through the day and while most of us indulge in more than our fair share there is a large portion of South Africans who are living off barely enough to sustain them.

/World

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.