Koeberg generators are correct every other Eskom scam – Chris Yelland
Eskom has been within the highlight, but again, because the Zondo Commission continued its deliver plot discontinuance inquiry into its board and the dismissal of three senior members. Several whistle blowers accumulate stepped ahead to shine a lightweight on cases of corruption. In fact, faded Eskom head of well suited and compliance Suzanne Daniels talked about tender manipulation to award contracts to of us friendly to ANC members used to be the norm, and orders from the ministry of public enterprises on how Eskom enterprise needs to be accomplished took build of abode daily. Energy knowledgeable Chris Yelland delves into the dark waters surrounding the Koeberg nuclear energy station, and the contract awarded to French contractor, Areva, below fishy terms. – Claire Badenhorst
Steam generators for Koeberg: essentially the most costly transport of scrap metal within the history of humankind
By Chris Yelland*
The availability of the vital of six new steam generators by Areva closing week to elongate the lifetime of Eskom’s Koeberg nuclear energy station unearths but every other scam at Eskom, perpetrated for the length of the flawed management of Brian Molefe, Matshela Koko and the dodgy Eskom board on the time.
On the root of a 3-month shorter provide time, the R5bn steam generator substitute contract used to be sooner or later awarded to French deliver-owned nuclear contractor, Areva, who after running into financial difficulties, are now controlled by French nationwide electrical energy utility, Electricite dé France (EDF).
This adopted a protracted Excessive Court, Enchantment Court and Constitutional Court fight in South Africa, by which Westinghouse (finally unsuccessfully) tried to area the irregular contract award to Areva on the root that the claimed urgency of the life-extension used to be deliberately contrived by Eskom in disclose to wrongfully award the contract to Areva.
At the time when Koeberg used to be constructed between 1976 and 1985, Framatome (the predecessor to Areva) manufactured the two 900 MW nuclear reactors and the six associated steam generators at Koeberg, utilizing designs licenced from Westinghouse.
Both Eskom and Areva claimed that it used to be fully serious for right operation of the energy plant and for safety of electrical energy present in South Africa that the steam generators needs to be sooner or later changed for the length of the so-called “X23” outage at Koeberg in 2018.
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This used to be cited by Eskom because the motive within the serve of awarding the contract to Areva, where an allegedly contrived three-month “float” in Areva’s challenge plan used to be indicated because the deciding ingredient. This in spite of Westinghouse having met your complete technical and business necessities, with a lower contract brand, and a guarantee to meet the 2018 completion date on anguish of enormous penalties.
On the opposite hand, all has no longer gone effectively for Areva in executing the challenge.
Areva is asserted to accumulate skilled severe manufacturing quality complications with the steam generator forgings in France. In peep of the claimed time criticality of the challenge, to solve these concerns Eskom and Areva agreed that the uncompleted forgings could well be air-freighted to China where an Areva “accomplice” would complete the fabricate.
It sounds as if, every of the six steam generator forgings required the hiring of a Russian Antonov freighter airplane (six flights in total) to fly the forgings from France to China. On the opposite hand, based mostly fully on an impeccable source, after taking a more in-depth watch on the forgings, Areva’s Chinese accomplice made up our minds to scrap them and birth again from scratch.
One can handiest speculate as to why it used to be no longer regarded as much less costly for Areva to fly engineers from the Chinese producer to France to peep the steam generator forgings, versus flying all six steam generators to China for the inspection, sooner than them being scrapped in China.
A faded senior nuclear govt at Eskom commented to this author on the time that: “This used to be essentially the most costly transport of scrap metal within the history of humankind”.
Eskom has since confirmed to EE Commerce Intelligence closing week that: “The forgings did no longer meet the anticipated quality requirements and is presumably no longer permitted, and therefore they accumulate been scrapped by the contractor at their very personal brand”.
Fixed with Eskom, the contractual provide date of all six steam generators used to be February 2018, with the contractual completion date for the factitious of all six steam generators being the terminate of 2019.
On the opposite hand, with your complete delays within the challenge, collectively with restarting fabricate of the steam generators from scratch in China, provide of the vital three steam generators for Unit 1 at Koeberg is handiest initiating now in September 2020, with these for Unit 2 handiest scheduled for provide within the third quarter of 2021.
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Referring to the particular substitute of the steam generators, Eskom now says that: “Installation is aligned with the outages scheduled for 2021 and 2022 respectively for the two Koeberg reactor units (Unit 1 and Unit 2)”. No mention is now made by Eskom of the criticality for completion in 2018 cited by Eskom on the time because the motive within the serve of inserting a extra costly contract with Areva.
While no longer answering particular questions on the price overruns rising for the challenge, Eskom insists that: “The estimated brand-to-completion for the challenge is for the length of the present funds accredited in 2014”. Of course, here’s no longer very lifelike, since the present funds accredited in 2014 is rarely any longer disclosed, and could accumulate been considerably bigger that the contract brand.
On the opposite hand, it appears to be like particular that Eskom has in spite of everything paid a top rate for the factitious by Areva of the steam generators at Koeberg on the root of a claimed three-month shorter completion time, when in spite of everything completion will be some three years longer.
It’s an damaged-down trick, but it clearly soundless works.
- Chris Yelland, managing director, EE Commerce Intelligence.
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