Murray & Roberts (M&R) has confirmed that it is a co-applicant with GE in a court bid to prevent Eskom from implementing a contract with Dongfang Electric Corporation for the Duvha Unit 3 boiler recovery project.
The 600 MW boiler was damaged catastrophically in March 2014 as a result of over pressurisation of the boiler furnace, which triggered an explosion that resulted in the entire unit being shut down.
Business Day reported on Wednesday that GE had approached the High Court in Johannesburg to interdict Eskom from implementing Dongfang’s contract until it had been reviewed and adjudicated again.
In an affidavit deposed by GE head of sub-Saharan Africa George Njenga, the US multinational alleged that Eskom had violated the terms of its own request for proposal (RFP), which outlined a two-stage adjudication involving a desktop evaluation to arrive at the “top two suppliers”, followed by direct negotiations with the suppliers for final selection.
Njenga said GE and M&R were the only shortlisted suppliers when final offers were submitted on March 3 and Dongfang was not on the shortlist. Eskom nevertheless awarded the tender “unlawfully” to the Chinese firm.
M&R also confirmed with Engineering News Online that it was applying to have Dongfang interdicted from taking any steps towards the execution of any contract.
“Finally, we are asking that Eskom be called upon to show cause why the decision was made to award the tender to Dongfang,” investor and media executive Ed Jardim said.
In its affidavit GE also alleges that Eskom’s departure from the requirements of the RFP resulted in an award that was more expensive to the utility.
Business Day reports that the GE bid was for R3-billion, comprising a 25% fixed-price element and a 75% variable component. M&R’s bid was reportedly for R3.3-billion, with 10% fixed. Dongfang’s bid price was fixed at R4-billion, which Eskom contends carries a lower risk.
The State-owned utility is opposing the application.