Eskom projects sabotaged

This is in reference to Phillip Taylor’s letter “Eskom’s Reckless Medupi Madness“, February 14.

Hitachi and Eskom project managers could have actually done better to manage the design changes. No mega-project is impeccable. Changes are going to occur, whether it is in design or the construction process. However, an argument can be made that Eskom and Hitachi personnel should have been more proactive, rather than reactive. If design changes and revisions from Hitachi designs were managed effectively that would have reduced the likelihood of disputes of design changes and ultimately the delays.

Notwithstanding the above, there is a strong argument that Eskom managers actually did sabotage the country by not discharging their duty to manage these contracts effectively.

For example Cenpower, the client that contracted Group Five for the Kpone gas and oilfired combined cycle power plant project in Ghana, exercised their rights as clients by making a demand on performance guarantees worth $62.7m and ultimately terminated the contract in December 2018. Why was this not the case for underperforming Medupi and Kusile contracts? Or rather, why were these contracts procured in this manner? Did Eskom project managers collude with contractors for leniency? Or maybe it was because of the 25% stake that Chancellor House had in Hitachi Power Africa.

If we truly want to know why these projects incurred such massive cost overruns and delays, Eskom should make public the construction contracts used for all service providers.

Ronnie Siphika CEO, Construction Management Foundation