EE-News
News and announcements from EE Publishers  Issue 339, May 2016
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Analysis
Eskom - awaiting the ConCourt decision on a R5bn nuclear contract 
  
by Aimee Clarke, assistant editor, EE Publishers
 
For the third time since awarding a R5-billion tender for the replacement of six steam generators at its Koeberg nuclear power station to Areva in 12 August 2014, Eskom found itself defending its award decision - this time in the highest court of the land.
 
On 9 December 2015, a Supreme Court of Appeal (SCA) judgement had ruled that Eskom's procurement process and contract award was unlawful and in breach of the Promotion of Administrative Justice Act (PAJA), which requires that the procurement processes of organs of state (such as Eskom) must be fair, open, transparent and competitive.
 
According to Westinghouse, and accepted by the SCA, Eskom had changed the rules of the game at half-time. In making its decision to award the tender to Areva, Eskom had taken into account various additional so-called "strategic considerations", which were not explicitly stated in the original bid award criteria.
 
Initially, Eskom had deemed both Westinghouse's technical and commercial offerings to be on a par with that of Areva, but with Westinghouse's offering having a lower cost. However, after taking into account the new "strategic considerations" not stated in the tender documents, Eskom subsequently deemed Areva to have a superior quality offering, with a three-month safety margin (or "float") in its construction schedule.
 
Eskom told the ConCourt on 18 May 2016 that with the weakening South African rand against the US dollar, Westinghouse's price would now be over R1-billion more expensive than it was when it tendered in 2014", and that the cost of a substitution of Westinghouse in place of Arava in its entirety would be around R3,2-billion.
 
Chris Yelland, EE Publisher's investigative editor, believes that the ConCourt is unlikely to interfere with the major decision of the SCA, and will uphold the SCA judgement declaring the contract award unfair, procedurally irregular and therefor invalid and unlawful.
 
However, Chris Yelland also feels that the ConCourt will be reluctant to impose the contract award to Westinghouse over the heads of Eskom for a contract of such technical and commercial complexity and risk.
 
Furthermore, Eskom has already made it clear that if the tender process is restarted from scratch again, it would simply award the tender to Areva again, and the only difference in the result would be a delay in the project execution, with additional costs and nuclear safety risks to both Eskom and the public resulting from the delay.
 
Considering these points, it is perhaps most likely that despite the irregularities in the tender process, the ConCourt will rule that the contract with Areva be allowed to proceed... (more)
 
Click here to read the full article
 
 
Invitation to submit nominations
SANEA/SANEDI Energy Awards 2016
 
On behalf of the South African National Energy Association (SANEA) you are invited to submit your nowminations now for the:
 
SANEA/SANEDI Energy Awards 2016
 
DEADLINE: 31 May 2016
 
The SANEA/SANEDI Awards recognise individuals, companies and projects making noteworthy contributions in the Energy, Research and Innovation Sectors in South Africa.
  
Please submit your nominations now!
 
SANEA/SANEDI Awards and Banquet  
Submit nominations 
Award categories and criteria  
 
We look forward to receiving your nomination!
 
SANEA - Energy People Working Together
  
 
Invitation to a debate
What Next for Environmentalism?
 
On behalf of WWF South Africa, you are cordially invited to attend an open public debate entitled:
 
What Next for Environmentalism?
 
DATE: Thursday 2 June 2016
TIME: 15h30 for 16h00 to 18h00
VENUE: CSIR Convention Centre, 1 Meiring Naude Rd, Pretoria.
 
Is environmentalism stuck in a narrative no longer applicable to a broader audience? Is it losing relevance? What role does the environmental movement play in achieving an equitable future?
 
Debating these and other questions, including the role of ecomodernism in forging a new narrative for environmental sustainability, is crucial if we are to ensure a more integrated and relevant view of the environment in economic development.
 
To register to join the debate, please email:
Nazirah Davids [email protected]
 
In this issue...
Analysis: Eskom - awaiting the ConCourt decision on a R5bn nuclear contract
Invitation to submit nominations: SANEA/SANEDI Energy Awards 2016
Invitation to a debate: What Next for Environmentalism?
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