Electricity producer Eskom has revealed that it has received cumulative contractor claims at Medupi and Kusile worth R50-billion. But group executive for the capital division Dan Marokane stresses that many of the claims are “concurrent”.

He also suggests that global settlement rates are typically between 7% and 9% of the original value claimed.

“What’s important for us is that, as we enter this phase of claims picking up, we build the capacity within the organisation to handle those and that, on a day-to-day basis, contracts are run in a manner that creates clear boundaries of what is due and what is not.”

Eskom is “comfortable” with the rate at which claims are being resolved and has “beefed up” its capacity to participate in dispute arbitration boards.

The utility is also pursuing its own claims against contractors and Marokane reports that a commercial strategy is in place to deal with claims management.

He refuses to be drawn on the nature of the strategy and has also not disclosed the value of its claims against contractors.

Eskom says Medupi Unit 6 remains on schedule to deliver first electricity during December 2014, while Kusile Unit 1 is scheduled for synchronisation by the end of 2015.

Medupi is a coal-fired project comprising of six 794 MW units, while the Kusile project consists of six units rated at about 800 MW each.