French power systems group inked the €1,36-billion (around R14-billion) contract to supply South African power utility Eskom with six turbines, six turbo-generators, and six air-cooled condensers for its second new 4 750 MW coal-fired power station, dubbed Project Bravo.

In September, Eskom and Alstom signed an identical deal for the Medupi power station, being built in the Limpopo Province, with the boiler contracts going the way of Hitachi. It is understood that Hitachi has also secured the boiler contracts for Project Bravo, which will be built in Mpumalanga.

Reuters reported that France's President Nicolas Sarkozy witnessed the signing of the agreement on Thursday, during a two-day visit that was expected to focus on seizing business opportunities in Africa's biggest economy.

Sarkozy was accompanied by 40 French company bosses, including the CEOs of power giant EDF, Alstom and nuclear firm Areva.

Together with the €1,36-billion contract to supply generating equipment to the Medupi power station, which Alstom was awarded in September 2007, the two projects signified a sizeable chunk of the global group's fast-expanding order book.

"I don't think we have signed bigger projects in the world before," Alstom Power Systems president Phillippe Joubert said of the Eskom contracts at an earlier media function in Sandton.

Although China and India perhaps ordered bigger volumes, growth in the South African market, and the size of the new stations was considerable, he said.

Joubert lauded his company's strong position in South Africa, and explained that Alstom's major generating equipment supplied 80% of South Africa's electricity. "We feel involved and responsible in this market and are very committed to South Africa. We want to reinforce our structure here," he added.

"We are confident in our commitment with Eskom, and we will supply on time," stated Joubert, and added that the company did not foresee any delays or constraints in delivery, despite the strong demand for power generation equipment worldwide.

The company was awarded a contract worth €1,36-billion to supply Eskom's new-build coal fired Medupi plant in Limpopo, with generating equipment in September 2007. The 4 750 MW Medupi station would comprise six 790-MW units, which also mean six turbines, six turbo-generators, and six air-cooled condensers to be supplied by Alstom.

Medupi was expected to come on line in 2014, and Bravo, in the Limpopo province, was expected to be complete by 2015.

Joubert also reiterated that Alstom South Africa, which had about 5 500 employees, would use the opportunity from these contracts to develop local sub-suppliers, and over 50% of project content would be localised.

It was also noted that, historically, between 30% and 40% of the company's turnover generated in South Africa was exported, whereas now, this figure stood at only 8%.