Eskom names firms overpaid in Kusile construction

The Kusile power station has been beset with cost overruns and delays
PROBLEM CHILD: The Kusile power station has been beset with cost overruns and delays

Eskom has named the contractors responsible for almost R4bn in cost overruns at the utility’s troubled Kusile power station.

As requested by the parliamentary standing committee on appropriations, Eskom has provided a progress report on continuing investigations into the contractors who have been overpaid during the construction of the Kusile power station.

The Eskom report indicates the overpayments totalled R4bn with R1bn each were ascribed to Stefanutti Stocks Basil Read JV, ABB SA, and Tubular Construction Projects.

A further R735m in overpayments was attributed to Tenova Mining and Minerals SA while a further R180m was overpaid to “various site service contracts”.

Kusile is yet to be completed and is one of Eskom’s two major coal-fired power stations which have run hopelessly overtime and over budget, miring the utility in a R450bn mountain of debt.

The report was annexed to a letter about the overpayments which public enterprises minister   Pravin Gordhan submitted to the chief whip of the ANC on Monday.

The letter sought to clear up a “misunderstanding” that the overpayments amounted to R5bn and related to Gupta’s Optimum coal mine.

Eskom noted the state’s Special Investigating Unit (SIU), Bowmans and Eskom’s investigation into these overpayments to the contractors involved was continuing and was not complete at this stage. — BusinessLIVE

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