Westinghouse Pursues Challenge Of Koeberg Contract

29th September 2014

Company Announcement - Westinghouse Electric Company intends to continue pursuing its challenge of Eskom’s decision to award a tender for the replacement of steam generators at the Koeberg Nuclear Power Plant by launching an expedited review application in the South Gauteng High Court.Until then, Westinghouse will continue to pursue its legal rights in an attempt to secure key outstanding documents from Eskom, which it has failed to provide following the court order on 5 September 2014, which ordered Eskom to provide all relevant documentation that was used to form the basis of Eskom’s decision to award the tender to Areva.

Based on documentation which Eskom has provided to date, Westinghouse maintains its stance that Eskom's decision was flawed on various levels and should be set aside by the court.  Westinghouse’s appreciation is that there have been fundamental breaches of Eskom's obligations to administer a fair and transparent tender process and, while Eskom has in place well-documented procurement processes, these processes were departed from to take into account certain "strategic issues", which allegedly favoured Areva – but were never part of the evaluation criteria – and on which Westinghouse was never given the opportunity to comment in line with a fair and transparent tender process.

Westinghouse Electric Company is the world's pioneering nuclear energy company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world. Westinghouse supplied the world's first pressurized water reactor in 1957 in Shippingport, Pa., U.S. Today, Westinghouse technology is the basis for approximately one-half of the world's operating nuclear plants, including more than 50 percent of those in Europe.