Koeberg generators are valid one other Eskom scam – Chris Yelland

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Koeberg generators are valid one other Eskom scam – Chris Yelland

Koeberg generators are valid one other Eskom scam – Chris Yelland

Eskom has been in the highlight, all once more, because the Zondo Commission continued its bid purchase inquiry into its board and the dismissal of three senior contributors. Lots of whistle blowers enjoy stepped ahead to shine a steady on instances of corruption. Genuinely, passe Eskom head of though-provoking and compliance Suzanne Daniels stated gentle manipulation to award contracts to folks pleasant to ANC contributors used to be the norm, and orders from the ministry of public enterprises on how Eskom exchange ought to serene be conducted passed off on a day-to-day basis. Energy knowledgeable Chris Yelland delves into the unlit waters surrounding the Koeberg nuclear vitality web page online, and the contract awarded to French contractor, Areva, below fishy phrases. – Claire Badenhorst

Steam generators for Koeberg: basically the most expensive transport of scrap metal in the history of humankind

By Chris Yelland*

The provision of the major of six new steam generators by Areva closing week to increase the lifetime of Eskom’s Koeberg nuclear vitality web page online finds but one other scam at Eskom, perpetrated in the heart of the incorrect management of Brian Molefe, Matshela Koko and the dodgy Eskom board on the time.

Chris Yelland

On the basis of a 3-month shorter supply time, the R5bn steam generator alternative contract used to be eventually awarded to French bid-owned nuclear contractor, Areva, who after running into monetary difficulties, are now controlled by French nationwide electrical energy utility, Electricite dé France (EDF).

This followed an extended High Court, Charm Court and Constitutional Court war in South Africa, wherein Westinghouse (sooner or later unsuccessfully) tried to direct the irregular contract award to Areva on the basis that the claimed urgency of the lifestyles-extension used to be intentionally contrived by Eskom in enlighten to wrongfully award the contract to Areva.

On the time when Koeberg used to be constructed between 1976 and 1985, Framatome (the predecessor to Areva) manufactured the 2 900 MW nuclear reactors and the six associated steam generators at Koeberg, the use of designs licenced from Westinghouse.

Both Eskom and Areva claimed that it used to be fully serious for safe operation of the vitality plant and for security of electrical energy provide in South Africa that the steam generators ought to serene be eventually replaced in the heart of the so-called “X23” outage at Koeberg in 2018.

Be taught moreover:  Chris Yelland: More finger-pointing at Eskom – COO cleared of costs

This used to be cited by Eskom because the clarification for awarding the contract to Areva, the place an allegedly contrived three-month “drift” in Areva’s venture arrangement used to be indicated because the deciding part. This despite Westinghouse having met the total technical and commercial requirements, with a lower contract mark, and a announce to meet the 2018 completion date on anguish of great penalties.

Then again, all has not gone properly for Areva in executing the venture.

Areva is declared to enjoy experienced serious manufacturing quality concerns with the steam generator forgings in France. In look of the claimed time criticality of the venture, to resolve these points Eskom and Areva agreed that the uncompleted forgings would be air-freighted to China the place an Areva “partner” would complete the blueprint.

It appears, every of the six steam generator forgings required the hiring of a Russian Antonov freighter plane (six flights in total) to hover the forgings from France to China. Then again, basically basically based totally on an impeccable supply, after taking a more in-depth uncover on the forgings, Areva’s Chinese partner made up our minds to scrap them and commence again from scratch.

One can handiest speculate as to why it used to be not arrangement to be extra economical for Areva to hover engineers from the Chinese producer to France to look on the steam generator forgings, versus flying all six steam generators to China for the inspection, sooner than them being scrapped in China.

A passe senior nuclear executive at Eskom commented to this creator on the time that: “This used to be basically the most expensive transport of scrap metal in the history of humankind”.

Eskom has since confirmed to EE Industry Intelligence closing week that: “The forgings didn’t meet the expected quality standards and can impartial not be current, and ensuing from this truth they were scrapped by the contractor at their have price”.

In conserving with Eskom, the contractual supply date of all six steam generators used to be February 2018, with the contractual completion date for the alternative of all six steam generators being the end of 2019.

Then again, with the total delays in the venture, including restarting blueprint of the steam generators from scratch in China, supply of the major three steam generators for Unit 1 at Koeberg is handiest initiating now in September 2020, with these for Unit 2 handiest scheduled for supply in the third quarter of 2021.

Be taught moreover:  Chris Yelland: Musical chairs at bid nuclear company – ought to serene axed Necsa CEO be re-hired?

Referring to the precise alternative of the steam generators, Eskom now says that: “Installation is aligned with the outages scheduled for 2021 and 2022 respectively for the 2 Koeberg reactor units (Unit 1 and Unit 2)”. No point out is now made by Eskom of the criticality for completion in 2018 cited by Eskom on the time because the clarification for inserting a extra expensive contract with Areva.

Whereas not answering inform questions about the price overruns coming up for the venture, Eskom insists that: “The estimated price-to-completion for the venture is interior the fashioned charge range current in 2014”. For optimistic, here’s not very vital, since the fashioned charge range current in 2014 isn’t disclosed, and can impartial were seriously elevated that the contract mark.

Then again, it appears obvious that Eskom has of direction paid a top charge for the alternative by Areva of the steam generators at Koeberg on the basis of a claimed three-month shorter completion time, when of direction completion shall be some three years longer.

It’s an feeble trick, nonetheless it clearly serene works.

  • Chris Yelland, managing director, EE Industry Intelligence. 

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