Power giant Alstom terminates its contract with Eskom

Alstom has been involved in the control and instrumentation at the Kusile Power Station.

FILE. Eskom appointed ABB South Africa to continue with the contract, which was selected from two suppliers. Picture: Reinart Toerien/EWN

JOHANNESBURG - Following a turbulent two weeks for Eskom, it's now been announced that a contract with major power giant Alstom has been terminated.

Alstom has been involved in the control and instrumentation at the Kusile Power Station.

Eskom on Friday said the contract was consensually cancelled, effective as of 17 April but further details would remain confidential.

In the meantime, Eskom appointed ABB South Africa to continue with the contract, which was selected from two suppliers.

ABB in Europe has been instrumental in connecting grids in Norway and Germany.

The Kusile Power Station in Mpumalanga, which is at the heart of a power solution for this country, has faced numerous delays, resulting in South Africans being kept in the dark.

At the same time, business leaders in the country have expressed their willingness to help government restore public and business confidence in Eskom.

In the past week, Eskom has suspended four executives, including the CEO, launched an independent inquiry into the status of the business and has been given a junk credit rating by Standard & Poor's.

Deputy President Cyril Ramaphosa, meanwhile, has chosen an advisory panel, including former Eskom chairman Robert Godsell, to help him implement a turnaround strategy for the ailing utility.

Today, he met with business leaders who have committed themselves to helping government address the power problems.

It's also been reported that Eskom wants to increase tariffs by 25 percent in July, due to ongoing cash flow issues and delays with its build program.