Eskom negotiating boiler-serve contracts

Johannesburg - Eskom confirmed on Tuesday that the equity share by boiler-serve contractors has been tabled for discussion as part of negotiations for the renewal of the boiler-serve contracts for the period April 1 2016 to March 31 2026.

Eskom was granted a mandate to negotiate a 30% shareholding from boiler-serve contractors Steinmuller, Actom and Babcock in return for a portion of the order book, which is currently valued at about R30bn.

The three contractors are responsible for outage and maintenance repair services for boiler pressure parts for 15 Eskom power stations.

Eskom said in a statement it is currently looking at various options for constructive partnerships with the boiler-serve suppliers, to drive Eskom’s strategic procurement approach.

These include improving plant and safety performance, providing greater insight in addressing the high level of unplanned boiler maintenance and enhancing skills transfer.

"It is not Eskom’s intention to compromise its own plant performance and integrity and Eskom has, therefore, maintained a healthy working relationship with the three boiler-serve suppliers Steinmuller, Actom and Babcock for over 15 years," said Eskom.