Name and Location
Medupi power station project, Lephalale, Limpopo, South Africa.

Client
Eskom.

Project Description
Medupi, which means ‘a rain that soaks parched lands, giving economic relief’, will be a dry-cooled coal-fired, baseload power generating plant, comprising six 800 MW units, with a 4 800 MW installed capacity – the biggest of its kind with dry cooling in the world. It will be located on a 883 ha site (formerly a farm named Naauw Ontkomen), previously used for game and cattle grazing.

The planned operational life of the station is 50 years.

The power station will use high-tech supercritical boilers, which will operate at higher temperatures and pressures than older boilers, providing greater efficiency.

It is the first baseload coal-fired station to be built in South Africa in more than 20 years and its delivery on schedule is viewed as critical.

The project will form part of the utility's integrated strategic electricity plan.

Value
R91.2-billion, with Eskom having spent R55.2-billion as at March 31, 2012.

Duration
The plant will be ramped up to full capacity by 2017.

Latest Developments

State-owned power utility Eskom insists that it remains committed to ensuring that first power flows from the first Medupi unit in December 2013. However, it has become increasingly forthright about the risks posed to the schedule and has also shared these risks with the National Energy Regulator of South Africa (Nersa).

In a written response to a Nersa question posed during the recent public hearings into Eskom’s third multiyear price determination application, Eskom indicated that the commercial operation of Medupi Unit 6, the first unit, might only start on February 28, 2014. However, it stressed that it was still targeting December 2013 for first power.

The note indicated that commercial operations might be affected by the emergence of quality assurance issues that had been discovered, relating to boiler welds. Output from the second unit, Unit 5, should begin in July 2014, the response added.

Nevertheless, Eskom has indicated that it will need to assess whether commitments it has received from its key contractors, Hitachi Power Africa and Alstom, can in fact be met.

Speaking on Radio 702 on March19, CEO Brian Dames indicated that, despite assurances from leading officials at the two companies, there was a risk that the commitments would not be fulfilled.

However, spokesperson Hilary Joffe has stressed that Eskom has not revised the timelines at this stage, having received assurances from Hitachi and Alstom that the latest problems will not hold up the schedule. She has also reiterated Eskom’s commitment that there will be “first power to the grid, from the first unit of Medupi, by the end of 2013”.

Besides a protracted strike and site closure, reports in the Business Day newspaper have suggested that there are also boiler-weld problems and that a key control software contract is running well behind schedule.

Alstom has confirmed with Engineering News Online that one of the information technology subsystems, namely the boiler protection system, has suffered some delays.

The company has also confirmed that it has requested an extension of time under the contract provision to cater for delays in site access.

Meanwhile, Hitachi Power Africa told Engineering News Online that there were two welding-related issues with which it was currently dealing: a site weld problem and a manufacturing workshop weld problem.

Spokesperson Pamella Radebe explained that a problem was identified with the post-weld heat treatment being carried out by an on-site subcontractor. The problem came to light during a routine Hitachi auditing process and was “immediately brought to Eskom’s attention”.

On Unit 6, about 9 000 suspicious welds were identified and were being subjected to hardness testing and verification.

“Based on preliminary results to date we anticipate that the repair rate for these welds will be less than 10%,” Radebe said.

Remedial action will involve reheat treatment and replacement where necessary, and the repair process will be conducted in parallel with the daily work programme to ensure it is “accommodated within the overall project time schedule”.

Hitachi also discovered that one of its manufacturing subcontractors had failed to adhere to the code processes stipulated by the Welding Procedure Qualification Records codes and standards for the production of boiler pressure parts.

“A requalification process, which is now in its final stages, is being successfully carried out,” she explained, adding that some welds would be replaced.

Repairs will comprise less than 1% of all welds and Hitachi will conduct quality assurance tests to ensure compliance with the codes.

Business Day has also reported that outgoing Eskom finance director Paul O’Flaherty will move on to the Medupi site in the coming days to “unlock” any remaining issues with the contracts. He will do so with the support of Balfour Beatty, a leading infrastructure services company from the UK.

Key Contracts and Suppliers
Parsons Brinckenhoff (contracts manager); Exxaro Resources (coal agreement); Roshcon (enabling civils); BKS Group (audit and design of concrete steel structures); Murray & Roberts, or M&R (structural steel fabrication and erection, mechanical installation works, boiler construction and civil works contract); Energy Fabrication (supply of 30 000 t of fabrication platework for the boiler ducting and coal bunkers); HPA and Hitachi Power Europe, or HPE (engineering, supply, manufacturing, construction and commissioning of utility steam generators, as well as related components, such as regenerative steam air heaters, coal mills and feeders, sootblowers, fans, de-ashers and high- and low-pressure pipework); Alstom (turbine-generator protection equipment); SPX Corporation (pulse-jet fabric filters and air preheaters, as well as the manufacture of pressure parts); GEA (design, manufacture, supply and erection of the air-cooled condensers); Hansen Transmissions South Africa (condenser gearboxes); Afrimat, in partnership with local suppliers Chobe Crushers (supply of aggregate); BroKrew Industrial (fabrication, corrosion protection and delivery of ducting for six air-cooled condenser sections); Genrec Engineering (awarded several projects by M&R, which is contracted to HPA (connection design, as well as detail, fabricate and supply structural steel for the boiler island, auxiliary bay structures, ash transverse conveyors, coal incline conveyors, and the primary and secondary coal conveyors); SSI (engineering services); Cosira (turbine hall); Kwikspace (modular accommodation units); Sarens (mobile crane hire); Voith Turbo (Vorecon drives); Concrete Finishing Equipment (dust filters and silo and environmental safety); Areva's transmission and distribution (T&D) division (switchgear cubicles); Mikropul (axial-flow fans and auxiliary equipment for the turbine halls' ventilation); General Electric, or GE (low-voltage switchgear system); Siemens (generator transformers); Clyde Bergemann Power Group, subcontracted by HPA (supplier of sootblowers for boilers); Clyde Bergemann Africa (fly-ash handling and conditioning systems); DSE Structural Engineers & Contractors, subcontracted by Genrec Engineering (air preheater structure); 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 (fabrication of 48 pumps for boiler feed, booster and condensate extraction duties); Steloy Castings, subcontracted by Sulzer Pumps South Africa (supply of chrome steel components for the pumps); ThyssenKrupp Materials Handling, or TKMH (coal stockyard equipment); a.b.e. Construction Chemicals (supply of waterproofing, flooring and sealant products, as well as other general construction products); LP Services consortium (engineering, procurement and construction contract for the low-pressure services); Lighting Structures (design, manufacture, supply and installation of Hi Masts); Basil Read (ash-dump infrastructure); ELB Engineering Services (terrace coal and ash); Actom (electrical power installation, chimney and silos) Aqua Engineering (water treatment);  and Konecranes (heavy-duty cranes).

On Budget and on Time?
Eskom continues to forecast output from the first unit at the R91-billion, six-unit project towards the end of 2013.

Contact Details for Project Information
a.b.e. Construction Chemicals, Elrene Smuts, tel +27 11 306 9000.
Actom, Mark Dixon, tel +27 11 820 5111, fax +27 11 820 5100 or email mark.dixon@actom.co.za.
Afrimat investor and corporate relations, tel +27 11 325 5944 or fax +27 11 325 5942.
Areva T&D, Mark Dixon, tel +27 11 820 5037; or James Mulholland, tel +33 1 34 96 31 82 or email james.mulholland@areva.td.com.
BKS Group, tel +27 12 421 3500, fax +27 12 421 3501 or email group@bks.co.za.
BroKrew, tel +27 11 668 6300 or fax +27 11 955 1958.
Chobe Crushers, tel +27 14 763 5130.
Clyde Bergemann Africa, tel +2 7 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.
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 MD Kobus Marais, cell +27 82 904 4657 or email kmarais@grinaker-lta.co.za.
Energy Fabrication, tel +27 11 456 1000, fax +27 86 637 1756 or email info@energyfabrication.co.za.
Eskom Enterprise Medupi project senior communications adviser Mashudu Ramulifho, tel +27 14 762 2148, fax +27 86 607 6080, cell +27 82 901 7184 or email Mashudu.Ramulifho@eskom.co.za.
Eskom media desk, tel +27 800 3304/3309/3343/3378, fax +27 11 800 3805 or email mediadesk@eskom.co.za.
Eskom national call centre, tel 0860 037 566.
Exxaro Resources investor relations Adriaan de Beer, tel +27 12 307 4189 or email adriaan.debeer@exxaro.com.
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.
GEA Aircooled Systems engineering and contract manager Albert Zapke, tel +27 11 861 1521 or email Albert.Zapke@geagroup.com.
GE corporate investor communications, Elizabeth Seibert, tel +1 203 373 2460 or email ir.contacts@corporate.ge.com; or corporate investor communications director JoAnna Morris, tel +1 203 373 2472 or email ir.contacts@corporate.ge.com.
Genrec Engineering, tel +27 11 876 2300, fax +27 11 827 1733 or email sales@genreceng.co.za.
Hansen Transmissions project manager Ludwig Maier, tel +27 11 571 9611, cell +27 82 213 2218 or email lmaier@hansentransmissions.com.
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.
HPE, tel +49 203 80 38 0 or fax +49 203 80 38 1809.
Kwikspace, tel +27 11 903 8993 or email barney@kwikspace.co.za.
IWC, tel +27 11 466 0699, fax +27 11 466 8180 or email mail@iwc.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, tel +27 11 723 2080; or group communications executive Ed Jardim, tel +27 11 456 6200, fax +27 11 455 1322, cell +27 83 357 6282 or email eduard.jardim@murrob.com.
Parsons Brinckenhoff, tel +27 11 787 4141, fax +27 11 886 0359 or email project@pbworld.com.
Roshcon, tel +27 11 629 8000 or fax +27 11 626 3460.
Sarens, tel +27 11 861 3800, fax +27 11 861 3899 or email info@sarenssa.co.za.
SSD, tel +27 11 828 0439 or fax +27 11 828 2810; or director Theo van Schie, email theo@steelservicesdirect.co.za.
SSI CEO Naren Bhojaram, tel +27 11 798 6000, fax +27 11 798 6005 or email corporate@ssi.co.za.
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.
TKMH, tel +27 11 236 1000 or fax +27 11 236 1235; or marketing manager Willie Agenbag, email Willie.agenbag@thyssenkrupp.com.
Voith Turbo operations manager Izak van der Walt, tel +27 11 418 4076, fax +27 11 418 4059 or email vanderwalt@voith.com.
Wetback Contracts, tel +27 11 392 8000, fax +27 11 392 5856 or email info@wetback.co.za.
Lighting Structures, Pieter Jooste, tel +27 87 310 1000, fax +27 86 699 6999 or email p.jooste@leblancgroup.com.
Konecranes, tel +27 11 864 2800.