Name and Location
Kusile power plant project, Mpumalanga, South Africa.

Client
Eskom.

Project Description
Kusile will be a six-unit, greenfield, mine-mouth, supercritical coal-fired power plant, with about 4 800 MW of gross output. It will be built adjacent to the existing Kendal power station, in the eMalahleni municipal area.

Kusile is, after the Medupi power station, Eskom's second most advanced coal project.

The project will include a power station precinct, power station buildings, administrative buildings (control buildings, medical and security), roads and a high-voltage yard.

The associated infrastructure will include a coal stockyard, coal and ash conveyors, water-supply pipelines (temporary and permanent), temporary electricity supply during construction, water and wastewater treatment facilities, ash disposal systems, a railway line, limestone offloading facilities, access roads (including haul roads), dams for water storage, as well as a railway siding and/or a line for the sorbent (limestone) supply.

The unit will be the first power station in South Africa to have flue gas desulphurisation (FGD) installed. FGD is a state-of-the-art technology, used to remove oxides of sulphur, such as sulphur dioxide, from exhaust flue gases in power plants that burn coal or oil.

Kusile is also designed to be carbon-capture and sequestration ready, meaning that it is configured to facilitate the necessary installation of equipment that will capture and transport carbon dioxide emissions to a permanent storage location.

To help conserve water, the plant will use an air cooling system.

The bulk of the coal for the power plant will be sourced from Anglo American Inyosi Coal's New Largo mine (mine mouth) and supporting coal will be sourced from the Zondagsfontein East No 2 seam – a middlings product – the Zondagsfontein East No 4 seam and the Zondagsfontein West resource, where further exploration is ongoing.

Value
The project is being developed at a cost of R118.5-billion and as at March 31, 2012, Eskom had spent R39.3-billion on the project.

Duration
The first generating unit is scheduled to enter commercial operation by late 2014, with the subsequent five units being commissioned at eight-month intervals thereafter. The last unit is expected to be in commercial operation by 2018.

Eskom's decision to delay the awarding of some of the project's contracts will subsequently delay the overall delivery schedule, possibly by 18 to 36 months.

Latest Developments
Siemens is on track with its work for State-owned power utility Eskom’s Kusile power station and the Medupi power station project in Limpopo, but is facing challenges, owing to delays in the civil works at both project sites.

To mitigate the impact of the civil works delays, Siemens is in constant engagement with Eskom to monitor the progress of the civil works contractors, as Siemens cannot begin its work on site until the civil works are 100% complete for the specific section in which it will be working.

Eskom and Siemens have also engaged with Siemen’s factory to delay the manufacturing of the remaining transformers, particularly for Kusile, to prevent the transformers piling up while the company waits for the civil works to be completed.

The company’s scope of work involves the design, manufacture, shipping, installation and commissioning of seven 910 MVA generator transformers at Kusile.

The manufacturing of the transformers for Kusile is 40% complete. The first three are being stored on site.

Key Contracts and Suppliers
Ninham Shand Consulting Services (environmental-impact assessment, geotechnical investigation and traffic impact); AirShed Planning Professionals (air-quality impact); Jongens Keet Associates (noise impact); Strategic Environmental Focus, or SEF (visual impacts); Makecha Development Association (impacts on terrestrial fauna and flora); Golder Associates, through Ecosun (aquatic-ecosystem impact); Groundwater Consulting Services (groundwater impact); Ilitha Riscom (risk assessment); Northern Flagship Institution (archaeological impact); University of the Free State (impacts on agricultural potential); Urban-Econ, or UE (socioeconomic impacts); Seaton Thomson & Associates (planning implications); Mark Wood Environmental Consultants (process review); Eskom; in partnership with Black & Veatch International (project management and engineering services); Hitachi Power Africa, or HPA, a subsidiary of Hitachi Power Europe, or HPE (boiler contract); Actom, formerly Alstom S&E Africa (main turbine area); Alstom (turbine contract and distributed control system, or DCS); Mikropul, subcontracted by Alstom (axial-flow fans and auxiliary equipment for the turbine halls' ventilation); Murray & Roberts, or M&R (boiler construction contract); Roshcon, a subsidiary of Eskom (enabling civils, terracing construction and site services); Concrete Finishing Equipment (dust filters and silo and environmental safety); the Kusile Civil Works, or KCW Joint Venture (JV), comprising Stefanutti Stocks, Basil Read, Group Five and Wilson Bayly Holmes-Ovcon (WBHO) Construction (main civil works); BHR Piping Systems (bending machine); Siemens (generator transformers and electrical and auxilary power); EsorFranki Geotechnical, formerly Franki Africa and Stefanutti Stocks Geotechnical (SSG JV), under a subcontract to the KCW JV (piling works for the turbine, boiler and air-cooled condensers, or ACC); Concor Karrena JV (construction of chimney shells/structures); Alstom, in consortium with Cosira (engineering, supply and installation of FGD system); DSE Structural Engineers & Contractors, subcontracted by Genrec Engineering (fabrication of steel columns for boilers 1 to 3); Steel Services Direct, or SSD (steel, pipes and wax plants); GB Bearings (supplier of HSR horizontal bearing assemblies and profile bore bearings); Sulzer Pumps South Africa, subcontracted by Actom (supply of booster and boiler feed pumps); Steloy Castings, subcontracted by Sulzer Pumps South Africa (supply of chrome steel components for the pumps); Clyde Bergemann Power Group subcontracted by HPA (supplier of sootblowers for boilers); Clyde Bergemann Africa (fly ash handling system); ABB (supplier of medium-voltage switchgear and associated equipment); PD Naidoo & Associates (PDNA) Industrial Projects (main water and wastewater treatment contractor); GE Water Engineered Systems, subcontracted by PDNA Industrial Projects (advanced water and wastewater treatment equipment); Bateman Africa (coal stockyard and terrace material materials handling systems); Lesedi Nuclear Services (procurement and supply of the balance of plant equipment); Grinaker-LTA Metals and Minerals (supply and erection of piping, steelwork and free-issue chemicals); US Export-Import Bank, or Ex-Im Bank (loan finance); TBD (railroad construction) and combustion water terrace construction – (Phase 1 and 2); and Konecranes (heavy-duty cranes).

On Budget and on Time?
The estimated cost of the Kusile project has increased from an initial R80-billion to R142-billion. In 2009/10 the capital budget was reduced from R87-billion to R70-billion.

Eskom has proposed that the project be introduced in June 2014, rather than in June 2013, to help accommodate the utility's proposed lower tariff increases. However, the Department of Energy’s Integrated Resource Plan has kept to the initial plan for 2013.

Contact Details for Project Information
ABB media relations, Wolfram Eberhardt or Thomas Schmidt, tel +41 43 317 6568 or email media.relations@ch.abb.com.
Actom, Mark Dixon, tel +27 11 820 5111 or fax +27 11 820 5100.
AirShed Planning Professionals, tel +27 11 805 1940, fax +27 11 805 7010 or email mail@airshed.co.za.
Alstom press, Philippe Kasse, tel +33 1 41 49 2982/3308 or email philippe.kasse@chq.alstom.com; or investor relations Emmanuelle Châtelain, tel + 33 1 41 49 3738/2136 or email emmanuelle.chatelain@chq.alstom.com.
Basil Read investor relations, Enna Kruger, tel +27 11 418 6375, fax +27 11 418 6334 or email ekruger@basilread.co.za.
Bateman Africa, tel +27 11 899 9000, fax +27 11 899 4903 or email enquiries-africa@batemanengineering.com.
Bateman Engineered Technologies general manager Braam Strauss, tel +27 11 201 2300 or email enquiries@bateman-bet.com.
Black & Veatch media relations and communications director George Minter, tel +1 913 458 8001 or email Mediainfo@bv.com.
Clyde Bergemann Africa, tel +27 11 704 0580, fax +27 11 704 0597 or email enquiry@cbz.co.za.
Clyde Bergemann Power Group, tel +49 281 815 101, fax +49 281 815 184 or email info@clydebergemannpowergroup.com.
Concrete Finishing Equipment, tel +27 82 788 8265.
Cosira group senior project manager Jerry Methi, tel +27 11 817 6600, cell +27 86 537 1730 or email jerrymethi@cosiragroup.com.
DSE Structural Engineers & Contractors, tel +27 11 871 4111, fax +27 11 871 4141 or email dse@grinaker-lta.co.za; or managing director Kobus Marais, cell +27 82 904 4657 or email kmarais@grinaker-lta.co.za.
Eskom media desk, tel +27 11 800 3304/3309/3343/3378, fax +27 86 664 7699 or email mediadesk@eskom.co.za; or project managers Frenchie Collet-Serret, email ColletF@eskom.co.za; and Abram Masango, email Abram.masango@eskom.co.za.
Eskom national call centre, tel 0860 037 566.
EsorFranki CEO Bernie Krone, tel +27 11 771 3906 or email bkrone@esor.co.za.
Ex-Im Bank, Phil Cogan and Maura Policelli, tel +1 202 565 3200.
GB Bearings, tel +27 11 974 1291 or fax +27 11 974 1468; or sales and marketing manager Alan Parkinson, email alan.parkinson@gbbearings.co.za.
GE global communications, Kimberly Ramalho, tel +1 215 942 3409 or email kimberly.ramalho@ge.com; or public relations, Howard Masto, tel +1 518 786 6488 or email howard.masto@ge.com.
Golder Associates, Chris van Renssen, tel +27 12 366 0100, fax +27 12 366 0111 or email cvanrenssen@golder.co.za.
Grinaker-LTA Metals and Minerals GM Bob D’Arcy, tel +27 11 681 2200, fax +27 11 681 1810 or email bdarcy@grinaker-lta.co.za.
Group Five, tel +27 11 806 0111.
HPA, tel +27 11 260 4300, fax +27 11 656 3609 or email info@hitachi-power.co.za; or media liaison Pamella Radebe, tel +27 11 260 4300 or email pradebe@hitachi-power.co.za.
Jongens Keet Associates, fax +27 21 794 5643, or email jongens@yebo.co.za.
Lesedi Nuclear Services marketing manager Shane Pereira, tel +27 21 525 1300, fax +27 21 525 1333 or email shane.pereira@lesedins.co.za.
Mikropul, tel +27 478 0456, fax +27 478 0371 or email sales@mikropul.co.za.
M&R group communications executive Ed Jardim, tel +27 11 456 6200, fax +27 11 455 1322 or email eduard.jardim@murrob.com.
Ninham Shand Consulting Services, tel +27 21 481 2400 or fax +27 21 424 5588.
Northern Flagship Institution, tel +27 12 322 7632, fax +27 12 322 5560 or email poppie@nfi.org.za.
PDNA head office, tel +27 11 566 8300, fax +27 11 566 8600 or email johannesburg@pdna.co.za.
Roshcon, tel +27 11 629 8000 or fax +27 11 626 3460.
Seaton Thomson & Associates, tel +27 12 667 2107, cell +27 82 920 6115, fax +27 12 667 2109 or email seaton@yebo.co.za.
SEF, tel +27 12 349 1307 or fax +27 12 349 1229.
SSD, tel +27 11 828 0439 or fax +27 11 828 2810; or director Theo van Schie, email theo@steelservicesdirect.co.za.
Stefanutti Stocks Civils contracts director Mark Stannard, tel +27 11 571 4300.
Stefanutti Stocks Geotechnical, tel +27 11 571 4300, fax +27 11 393 3150 or email geotech@stefstocks.com.
Steloy Castings, tel +27 13 933 3331, fax +27 13 933 3653 or email info@steloy.com.
Sulzer Pumps South Africa, tel +27 11 820 6252 or fax +27 11 820 6205; or Gavin Doran, email gavin.doran@sulzer.com.
UE, tel +27 13 752 4932, fax +27 13 752 4952 or email nelspruit@urban-econ.com.
University of the Free State strategic communication chief officer Leonie Bolleurs, tel +27 51 401 2707.
WBHO Construction, tel +27 11 321 7200, fax +27 11 887 4364 or email wbhoho@wbho.co.za.
Konecranes, tel +27 11 864 2800.