Infrastructure & Utilities News South Africa

Eskom in negotiations for renewal of boiler-serve contracts

PRETORIA: Eskom on Tuesday, 14 July 2015, said the equity share by boiler-serve contractors has been tabled for discussion as part of the negotiations for the renewal of the boiler-serve contracts.
Eskom in negotiations for renewal of boiler-serve contracts
© gui junpeng – 123RF.com

The renewed contracts will be for the period 1 April 2016 to 31 March 2026.

This follows a media report claiming that the power utility wanted companies that do business with it to issue a 30% equity stake to it at no cost.

The utility said it 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 approximately R30bn.

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

The company 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 skill transfer.

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

"It is unfortunate that the information was perceived as a non-negotiable and shut condition, which is in clear contradiction to the way Eskom conducts its business," it said.

Source: SAnews.gov.za

SAnews.gov.za is a South African government news service, published by the Government Communication and Information System (GCIS). SAnews.gov.za (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.

Go to: http://www.sanews.gov.za
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