Jun 29, 2012
Eskom says first Medupi unit on trackBack
Construction|Engineering|Africa|CoAL|Environment|Eskom|PROJECT|Project Management|Projects|Road|Transformer|Water|Africa|South Africa|Kusile Power Station|MW Medupi Power Plant|Gross Domestic Product|Power Infrastructure|Service|Brian Dames|Eskom|Infrastructure|Jacob Zuma|Power|Water|Transformer
© Reuse this
Speaking at the utility’s 2011/12 results presentation, he stated that Eskom was taking strict measures to ensure that the construction phase stayed within budget.
The hydrostatic pressure test of the first boiler at Medupi was also completed earlier this month, with President Jacob Zuma initiating the final phase of the test on June 8.
“I am delighted with the progress made with this project and the impact it is having on the community,” Zuma said.
Eskom reported that there were more than 17 000 workers on site, of which 95% were South African and of those 47% were from the Lephalale area.
The project has also expanded Lephalale’s gross domestic product (GDP) by about 95%. About R2.3-billion has also been invested in upgrading road, power, sewage, water and power infrastructure, as well as on the establishment of new schools and clinics, the utility added.
The boiler is at the heart of the power plant and the hydrostatic pressure test is an essential step in the commissioning of each unit once construction of the boiler has been completed.
“This was an exciting milestone for Medupi and for Eskom and an important step on the way to getting our new power stations on line and generating power for all South Africans in the next few years,” Eskom CEO Brian Dames commented.
Construction of the power plant, at a cost of about R91-billion, started in 2007. When complete, it will be the fourth-largest coal-fired power station in the world, as well as the world’s largest dry-cooled power station. It will have a life span of about 50 years.
The first unit, Unit 6, is expected to operate with greater efficiency than the older genera- tion coal-fired power stations, reducing its adverse impact on the environment. “We are excited about this project given its potential. Once all its units are completed, Medupi will be able generate enough elec- tricity to power almost the whole of Gauteng,” said Zuma.
During the results presentation, Eskom stated that 78% of its R300-billion funding plan was in place to finance its capacity expansion programme to 2019.
The utility’s total borrowings stood at R182.6-billion at the end of March, up from R160.3-billion at the end of the previous financial year.
The total is expected to grow to over R300-billion over the next three years as Eskom draws down on the loan agreements it has in place to complete the capacity expansion programme, it noted.
Earlier this month, Engineering News reported that the utility was in a position to invest at a yearly tempo of R65-billion for the remainder of the current build phase.
During its previous two financial years, the utility had failed to meet its capital expenditure (capex) targets, under investing against the budget by a massive R25.1-billion in 2010/11.
The group spent capex of R44.3-billion last year, short on its capex budget of nearly R70-billion.
“Eskom has installed a total of 5.8 GW of new generating capacity, 3 899 km of high-voltage transmission lines and 20 195 MVA of new transformer capacity since the start of the capacity expansion programme in 2005.
“The programme, which includes two new coal-fired stations, Medupi and Kusile, a pumped storage scheme, Ingula, and new transmission infrastructure, will add a total of 17.1 GW to the grid by the time it is completed in 2019,” the utility stated.
On June 8, Zuma said that the Kusile power station was about 17% complete, with R39-billion having been spent to date. The project is expected to cost about R121-billion. “The project has an estimated 25% impact on the Delmas town’s GDP,” he noted.
“Lessons learned at Medupi will be implemented at Kusile. We have a better idea of where we are regarding the construction of the Medupi site and we know what to expect in the future,” said O’Flaherty.
Further, Zuma said that the R23- billion Ingula pumped storage scheme was more than 42% complete, with R11- billion having been spent to date.
“[Ingula] is expected to have a 7% impact on the Ladysmith’s local GDP. These new power stations will provide the electricity capacity needed to grow the economy, attract investment and create jobs,” he said.
The Medupi, Kusile and Ingula projects will create about 40 000 job opportunities – 35 500 direct jobs during construction and operation, and about 4 500 indirect jobs supporting the programme.
“Medupi is expected to absorb a number of relevant university graduates as well as artisans. In that way, it will contribute to growing South Africa’s supply of engineers, artisans and project management experts,” he stated.
Further, Eskom spent R1.4-billion on training during the past financial year, up from R1-billion in the previous year. The company now employs 43 473 people directly and a total of 130 000 within its full scope of activities.
Other than the three new power stations, Eskom had, by March, commissioned two of its three return-to-service (RTS) power stations – Camden and Grootvlei. The third RTS power station, Komati, is two-thirds complete.
Meanwhile, the utility revealed that 155 213 households had been electrified during the financial year.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Electrical Power Generation and Transmission News
Updated 2 minutes ago Public Works Minister Thulas Nxesi has established a task team comprising construction and property industry stakeholders to develop concrete, workable plans to accelerate transformation in the built environment and establish processes to monitor and evaluate its...
Updated 14 minutes ago Trade and Industry Deputy Minister Mzwandile Masina says the department has so far registered 18 qualifying black industrialists in a range of sectors to grow the South African economy. “We will continue to accept applications from industrialists, as we have set a...
Updated 43 minutes ago The small business development department stood by the national government's position on e-tolls, while the e-toll advisory panel continued its work, Minister Lindiwe Zulu said on Tuesday. "We've got a national government position on that [e-tolls] but there is a...
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
Next ArticleMedupi, Kusile steel fabrication on schedule