Pressure on to keep Medupi on track

Wednesday, October 12, 2011

Pretoria - Eskom has set up an expert review team to determine whether the first unit of the Medupi power station it is on track to come on line in 2012.

Eskom said it has initiated a detailed assessment of the timelines for the first unit of the coal power station - which is expected to generate approximately 4 800MW of power - to determine whether the project is on track to deliver its first power to the country's national grid as planned in late 2012.

"We are closely monitoring the performance of the contractors to see whether they will meet the timelines.

"With a year to go, we are concerned that the performance of some contractors could put the schedule at risk. We will take whatever action is required to mitigate the risk and ensure delivery," Eskom Chief Executive Brian Dames told Parliament's Portfolio Committee on Public Enterprises during a briefing on Eskom's 2011 annual results on Tuesday.

Unit 6 is the first unit of the power station located near Lephalale in Limpopo, which is due to be commissioned. Eskom had indicated its concerns about the critical path of the unit's boiler. The boiler contracts were awarded to a consortium comprising Hitachi Power Africa and Hitachi Power Europe.

"Eskom has initiated a detailed assessment of the timelines for the first unit of the coal-fired power station project to determine whether the project is on track to deliver its first power to the national grid as planned in late 2012."

The details of the update of the Medupi timelines will be made available when the power parastatal releases its interim financial results on 23 November.

"Eskom is working closely with the parent company in Japan, and Hitachi has put in place remedial measures to mitigate delays. Eskom has received confirmation from the parent company that it should meet its commitments under the contract."

The parastatal is putting plans in place to manage any additional risks.

"We are resolved to keep the lights on, but we will need the help of all our stakeholders to do that in the next two to five years, and we urge all South Africans to use energy wisely," said Dames.