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Kusile, Medupi set to provide power in 2014

Johannesburg - Power utility Eskom said on Wednesday the first electricity from its coal-fired Kusile power plant would hit the grid in December next year.

Eskom also said another huge coal-fired plant, Medupi, was on track to deliver its first power in the second half of next year.

The rest of the units in both power stations would go online in eight-month intervals until completion in 2018.

 Medupi has been delayed for at least six months due to labour unrest and "underperformance" by contractors.   

Factory welds

"[We] earlier communicated that critical technical challenges need to be resolved in order for unit six to begin producing power. These technical challenges relate to the welding on the boilers, and the control and instrumentation systems for the units. In addition are the ongoing labour challenges," Eskom said at the time.

This was not the first delay because of welding problems. Previously, faults in factory welds had been discovered.

In May, Public Enterprises Minister Malusi Gigaba said strong measures were taken against Hitachi for its sub-standard work on the Limpopo power station.

Construction at Medupi was delayed due to failures by Hitachi to deliver top quality boilers at the plant.

Cancel contracts

Earlier this year, Eskom chief executive Brian Dames was quoted as saying that Eskom was considering cancelling two key contracts with Hitachi --in which the ANC's investment arm Chancellor House had a 25 percent stake --and Alstom.

But later, the utility's spokeswoman Hilary Joffe said there were no immediate plans to cancel the contracts, and that Hitachi was still in charge of building the boilers.

In January, Eskom temporarily closed the power station when contract workers went on strike. Construction was also interrupted in September when workers downed tools.

Collapse

Workers belonging to the National Union of Metalworkers of SA had questioned the way their year-end bonuses were calculated, and complained that employees who lived in the area were paid less than workers who came in from Johannesburg.

Gigaba said in March the construction deadline would not change. He said strict penalties would be imposed on contractors should they fail to meet their obligations

Eskom, which provides 95% of the power to the economy, has been walking a tightrope for five years as it tries to bring long-overdue power plants online after the grid came close to collapse in 2008.

The power crisis forced factories, mines and smelters to shut down for days, costing the economy billions of dollars in lost output.



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