http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.12Change: -0.08
R/$ = 11.72Change: -0.04
Au 1209.60 $/ozChange: 0.25
Pt 1186.50 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 31, 2008

Areva, Westinghouse submit bids for Eskom's big nuclear expansion

Back
Construction|Engineering|Expertise|Africa|CoAL|Eskom|Exploration|Industrial|Mining|Nuclear|PROJECT|System|Water|Africa|Energy|Manufacturing|Nuclear|Service|Services|Environmental|Power|Water
Construction|Engineering|Expertise|Africa|CoAL|Eskom|Exploration|Industrial|Mining|Nuclear|PROJECT|System|Water|Africa|Energy|Manufacturing|Nuclear|Service|Services|Environmental|Power|Water
construction|engineering|expertise|africa-company|coal|eskom|exploration|industrial|mining|nuclear-company|project|system|water-company|africa|energy|manufacturing|nuclear-industry-term|service|services|environmental|power|water
© Reuse this Rival nuclear vendors Areva of France and Toshiba's Westinghouse, of the US, confirmed on Thursday that they had submitted bids to South African power utility Eskom, which initiated an "invitation to negotiate" with the two companies in November last year.



In a statement, Areva said it had formed a consortium comprising South African engineering and construction group Aveng, French contractor Bouygues and the world's leading nuclear-energy utility EDF, also of France.

Areva South Africa chairperson Dr Serge Lafont told Engineering News that its submission related to the so-called ‘Nuclear-1' programme, which could involve the construction of a two-unit nuclear power plant, with a capacity of between 3 000 MW and 3 500 MW.

The project's capital cost is estimated to be between R100-billion and R120-billion, but this figure could not be confirmed.

Lafont said it also planned to submit a second bid later this year for the possible ‘fleet' strategy by Eskom, which might result in the construction of 20 000 MW of nuclear capacity by 2025.

Meanwhile, Westinghouse CEO Rita Bowser confirmed with Engineering News that it too had submitted a bid on Wednesday, a day ahead of the January 31 deadline, and that Eskom had confirmed acceptance of the bid on Thursday.

She said that its consortium comprised Westinghouse, South African engineering contractor Murray & Roberts and US construction group Shaw.

Bowser indicated that it had decided to make a combined bid, covering both Nuclear-1 and the larger fleet strategy, but that it refrained from making a formal statement given nondisclosure stipulations.

Areva would offer its so-called third-generation EPR technology, which is currently under construction in Finland and France, while Westinghouse will be offering its latest-generation AP1000 pressure water reactor, which is likely to be built in the US and China.

In its statement, Areva says it is proposing a "global partnership" between South Africa, Eskom and its French-heavy consortium covering the construction of EPR reactors and the joint development of a South African nuclear industry.

"The second element of the partnership relates to the long-term development of South Africa's nuclear industry. Areva plans to invest alongside national players. In addition, the group offers its expertise in all aspects of the nuclear fuel cycle," the company said.

Meanwhile, Engineering News has reported previously that Westinghouse also planned to make material "localisation" commitments.

In fact, Bowser said that exploration of domestic manufacturing opportunities was a key focus, given that these are likely to be a critical adjudication factor in any upcoming Eskom tender.

Eskom itself has a stated ambition of maximising the local content of its capital programme, and has incentivised its management in a way that embeds local content as a key performance indicator.

The utility has also applied to participate under the so-called Competitive Supplier Development Programme, which will allow it to pursue local content opportunities without the constraints associated with the National Industrial Participation Programme, or NIPP.

Both companies have already moved to deepen their domestic footprints, with Areva having already taken a 51% stake in Lesedi, a black economic-empowered energy services company, while sustaining key skills in the country to service Koeberg, South Africa's only nuclear facility at present. The French group also has uranium exploration and development interests the country through a mining enterprise known as Uramin.

Westinghouse, meanwhile, recently acquired South Africa's IST Nuclear (ISTN) in a bid to materially increase its domestic presence. The company has since been rebranded as the Westinghouse Electric Company South Africa.

Bowser insists that similar localisation programmes have been pursued in China, Korea and Spain, where local manufacturers have actively participated in domestic build programmes, and have been integrated into the larger Westinghouse supply chain.

Eskom and government have committed to adding a significant level of nuclear capacity to its power system in a bid to sustain low operating costs, while reducing its carbon footprint.

Five sites are being considered, including Oyster Bay, Peraly Beach, Bantamsklip, the current Koeberg site, and Kleinzee, and environmental-approval processes are under way.

There is likely to be stiff opposition from some antinuclear and environmental groups, which believe the technology to be fundamentally flawed and dangerous. Others have argued that Eskom has simply not given the same level of attention to other carbon-free alternatives, such as large-scale wind and solar power before embarking on an atomic-energy course.

However, Eskom argues that, while nuclear is expensive to build, it is vastly cheaper to operate, and, at this stage, provides the only true low-carbon alternative to coal.

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Economic Development Minister Ebrahim Patel
The Department of Economic Development, together with Spanish solar company Abengoa and the Industrial Development Corporation on Monday launched a 100 MW concentrated solar power (CSP) park, about 60 km outside Pofadder, in the Northern Cape. Speaking to journalists...
A feasibility study and financial model of Edenville Energy’s proposed Rukwa coal-to-power project, in Western Tanzania, have suggested a two-phase construction period that could see the development of an integrated coal mine and power plant boasting generating...
More
 
 
Latest News
Economic Development Minister Ebrahim Patel
The Department of Economic Development, together with Spanish solar company Abengoa and the Industrial Development Corporation on Monday launched a 100 MW concentrated solar power (CSP) park, about 60 km outside Pofadder, in the Northern Cape. Speaking to journalists...
South Africa could face another delay in its already years-delayed digital migration project if government adopted the much-disputed conditional access (CA) for the set-top boxes (STBs) required to intercept digital broadcasting frequencies. Emerging black-owned...
JSE-listed real estate investment trust Dipula Income Fund has entered into agreements to acquire the Umzimkhulu Shopping Centre, in KwaZulu-Natal, as well as the Corporate Industrial Park, in Polokwane, from two different vendors for R336-million. The industrial...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
Subscribe to Engineering News and Mining Weekly for two years, but only pay for the first year.  The weekly editions of Engineering News and Mining Weekly will be posted to your preferred postal address and also gain access to:
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96