Business Report reported that Eskom has defended its decision to import ZAR 200 million worth of steel and laborers from China for its Ingula underground pump storage facility, which is being constructed on the boundary of KwaZulu Natal and the Free State.
The project is being carried out by Eskom and its JV partner CMI, which is made up of local firm PG Mavundla and Italian company CMC di Ravenna & Impregilo.
Last week Sapa reported that the DA in KwaZulu Natal had criticized PG Mavundla for using unskilled Chinese laborers and of procuring steel overseas after promising that it would source this from a South African company.
Eskom said that it was fully committed to the accelerated and shared growth initiative for South Africa, local content and employment of locals at the Ingula project. It added that "CMI currently has a workforce that exceeds 2600 at the Ingula project. In terms of percentages, 86% of the workforce is South Africans, 1.4% is Italians and 10.7% are other nationalities, including Chinese."
It added that "The Chinese employees make up 3% of the CMI joint venture workforce employed because of their previous working experience with the company and their in depth skills in large projects and this type of construction. In an effort to ensure skills transfer to the locals, Eskom has established a skills development centre within the project vicinity where competence and experience is transferred to the local laborers."
The DA said Mr Philani Mavundla of PG Mavundla had initially approached Murray & Roberts to supply 17,000 tonnes of steel worth about ZAR 200 million.
Eskom said the complex nature of steel supply contracts for a specialised high feasible steel plate required a holistic consideration of various factors prior to awarding a contract. It added that "Price was one of many determining factors considered prior to the awarding of the steel supply contract; technical factors were also considered. For example the thickness of the steel, chemical content of the steel, size of the plates, product uniformity, availability, quality procedures and experience of potential suppliers. CMI joint venture, after considering these commercial and technical factors, had no choice but to award the contract to an international supplier."
Meanwhile Eskom has developed a coal stockpile build up plan to reach a system stock level of 42 days by the end of next month. As of this week, system stock levels are at 37.4 days. The utility said the plan was to ensure that the stock level of 42 days was reached before the World Cup and to maintain it at this level.
(Sourced from www.busrep.co.za)
