zAlstom Out, ABB in – Eskom Switches Massive Kusile Automation Contract [analysis] | Lao Tribune

zAlstom Out, ABB in – Eskom Switches Massive Kusile Automation Contract [analysis]

Late last week, Eskom announced the termination, with effect from 17 April 2015, of the approximately approximately R1-billion control and instrumentation (CampI) works contract placed with Alstom in 2011 for its 4,800 MW Kusile power station, which is currently under construction near eMalahleni, Mpumalanga. Shortly thereafter, Eskom announced that it had appointed ABB South Africa instead.

The ABB contract is valued at about US $160 million (approx. R1,5 billion), and it is understood that ABB will essentially be starting the CampI Works at Kusile from scratch.

In addition to payment for work already completed, Eskom had to pay a cancellation fee of some R40 million to Alstom to achieve a consensual termination agreement on a “co-operative walk-away basis”. The cancellation has delayed the Kusile project by about a year.

Alstom will continue with the CampI Works contract at Eskom’s 4,800 MW Medupi site near Lephalale in Limpopo Province, excluding the boiler protection system on Units 5 and 6 which was removed from Alstom’s scope and given to Siemens in 2014.

A preliminary engineering and design process in anticipation of a possible cancellation of the Alstom CampI contract was conducted by Eskom with both ABB and Siemens during …

Source : Daily Maverick