“Eskom previously announced that the negotiation of the contract for the rebuilding of the Unit 3 boiler was expected to be concluded by the end of June 2016. The contract negotiations for the rebuild portion of the scope have been terminated as of 27 June 2016,” said the power entity on Thursday, 30 June.
Unit 3 of the base-load power station with six units each capable of providing 575MW to the grid, was damaged on 30 March 2014 as a result of over pressurisation of the boiler furnace.
The furnace pressure had increased beyond the tolerance limit, resulting in an explosion which led to the loss of a 600MW unit.
At the time, given the potentially large insurance claim, a loss adjuster was appointed to act on behalf of the insured and the re-insurers for the purpose of leading a process to determine the extent of the damage to the boiler and collaborate with Eskom engineers to reinstate the damaged property.
In August 2015, the insurance process which included solicitation, review and costing of various solutions to recover the loss was completed in August 2015, and subsequently Eskom entered into a settlement agreement with its insurers. The settlement agreement provided for the replacement of the damaged property within a given period of time.
On Thursday, Eskom said negotiations were terminated in the final stages as the supplier was unable to meet the conditions precedent to enable agreement on the contract.
“Despite the termination of negotiations for the demolition, engineering, procurement and construction scope, Eskom has appointed suppliers who will commence with the structural assessments and repairs scope of work.
“Based on the current works schedule no additional delay is foreseen as the structural assessments and repairs scope is on the critical path. The works are expected to continue for the remainder of 2016,” explained Eskom.
While structural assessments and repairs of the boiler continue, the power utility will commence in a new commercial process.
“Management is yet to approve initiation of the new commercial process,” said Eskom.
Duvha is located in Mpumalanga.
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