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US firm back in court over R5bln Eskom tender

Westinghouse is appealing a ruling which supports Eskom’s decision to award a tender to a French company.

Eskom's Koeberg power station

JOHANNESBURG - The Supreme Court of Appeal in Bloemfontein is hearing argument today about a R5 billion Eskom tender to replace generators at the Koeberg power station.

US company Westinghouse is appealing a high court's ruling which supported the utility's decision to award the tender to French company Areva.

Westinghouse has argued that its bid was cheaper, but the utility awarded the tender to Areva due to "strategic considerations".

Eskom's Khulu Phasiwe said, "Westinghouse felt that we didn't follow certain procedures, so that maybe this process can now be reviewed. It has to be added that initially, Westinghouse had withdrawn its case, but now they have taken us to court after the high court had dismissed with cost their initial application."

Eskom took four years to award the billion rand tender, which retains the French multinational for the maintenance and construction of components needed to keep the turbines running.

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