Jun 01, 2007
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Breakdown of main contracts
Eskom CEO Jacob Maroga has stated that the group's in-house civil engineering unit, will now move on to the property to begin site preparation for the R66-billion project, which will begin delivering its first power in 2011. Maroga has indicated, however, that the project's value might swell to beyond R80-billion should Eskom be required to install stringent air-quality systems, but he has said that this decision will be made following air-quality monitoring and a public process led by the Department of Environmental Affairs and Tourism.
Eskom has not yet finalised key contracts and is still mulling over various unit configurations, ranging from 700-MW units through to 900-MW versions.
The names of those short-listed to supply the core plant have yet to be released. The boiler and turbine contracts for Medupi will be two of the largest contracts that Eskom has signed in its 83-year history - tenders for the long-lead boiler and turbine packages are lodged and the evaluation process is now said to be complete. The Medupi project will include supercritical boilers, able to operate at higher temperatures and pressures than the older-generation boilers. It will also employ direct dry cooling, making it Eskom's fourth dry-cooled base-load station after Kendal, Majuba and Matimba power stations.
In a bid to make the Eskom build more attractive in the current ‘suppliers' market', the company is offering its coal-fired projects on a fleet model rather than on a project-by-project, or piecemeal, basis. The idea is to offer a larger market to suppliers that are at full stretch, given the demand for power-generation plant across the globe, but particularly in Asia.
Further, Exxaro Resources and Eskom have reached an agreement on the price and terms of the long-awaited coal-supply agreement for Medupi.
Exxaro's Grootegeluk mine will, over the next 40 years, supply 7,3-million tons a year of power-station coal to the first three units (2 250 MW) of the new base-load power station.
Delivery to the first unit will be determined by Eskom's construction programme for the power station.
On budget and on time?
Contact details for project information
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