Eskom previously announced that the negotiation of the contract for the rebuilding of the Duvha Unit 3 boiler was expected to be concluded by the end of June 2016. The contract negotiations for the rebuild portion of the scope have been terminated as of 27 June 2016.

Negotiations were terminated during the final stages as the supplier was unable to meet the conditions precedent to enable agreement on the contract.

Despite the termination of negotiations for the demolition, engineering, procurement and construction scope, Eskom has appointed suppliers who will commence with the structural assessments and repairs scope of work. Based on the current works schedule no additional delay is foreseen as the structural assessments and repairs scope is on the critical path. The works are expected to continue for the remainder of 2016.

Whilst the structural assessments and repairs of the boiler structures are underway, Eskom will commence in a new commercial process. Management is yet to approve initiation of the new commercial process.

Issued by Eskom