Eskom ordered to cough up R1 billion in costs after cancelled Koeberg project

ESKOM loses court bid to fend off R1bn payment after cancelling a contract. | SUPPLIED

- NICOLA MAWSON

ESKOM has been ordered to pay close to R1 billion to French nuclear contractor Framatome, after the Western Cape High Court found the utility refused to pay damages after it cancelled a contract to install steam generators at Koeberg nuclear power station.

The ruling stems from a 2014 agreement Eskom originally concluded with Areva, which was later ceded to Framatome. The deal covered the design, manufacture and installation of six replacement steam generators ~ three for each unit at Koeberg.

Framatome, which has been in operation for 60 years, was contracted to supply and install two sets of three replacement steam generators, one set to be installed in each of the reactor buildings at units 1 and 2 at Koeberg during separate planned outages of these units.