SCA says Eskom’s Koeberg steam generator award unlawful
The Supreme Court of Appeal has found in favour of Westinghouse Electric Company, which alleged that Eskom's board tender committee (BTC) had acted unlawfully in its award of a R4.3-billion Koeberg contract to Areva, in September 2014.
The judgment found that the BTC was wrong to take account of considerations not included as adjudication criteria in the original tender.
However, the court refrained from substituting Westinghouse for Areva, instead referring the tender for six new steam generators at the Koeberg nuclear power plant back to Eskom for reconsideration.
“Eskom should accordingly start the tender process again and if it still considers that the criteria it wrongly took into account, or to which it attributed double weighting, are vital, it should include these amongst the bid evaluation criteria.”
Westinghouse welcomed the finding that Eskom's BTC had acted unlawfully by taking ‘strategic considerations’ into account when awarding the contract to Areva.
However, it said it was still reviewing the December 9 judgment and did not give any immediate indication that it was considering further action.
Eskom said it was studying the judgment and its implications, and had not ruled out the option of taking the matter to the Constitutional Court.
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