Eskom Ordered to Scrap R16 Billion Maintenance Tender it Awarded Illegally

News Flash

  • The high court in South Africa has ordered South Africa’s state owned energy utility, Eskom, to scrap a R16 billion tender awarded for the maintenance of high-pressure boilers and pipes at its 15 coal-fired power stations.
  • Babcock Ntuthuko Engineering (Babcock) brought the application after it was unfairly disqualified as one of the bidders.

The tender must be re-advertised within two months of the court order, and bidders will have two months to prepare their bids.

Related news: Eskom contractor arrested and charged with sabotage

Babcock was disqualified from the tender awarded in October 2021 because it did not furnish an ISO3484 welding certificate. Babcock argued that this certificate was already in Eskom’s possession when the bid was adjudicated as it provided it for earlier contracts.

The split tender was awarded to Actom and Steinmuller Africa. Between 2016 and 2021, the three firms had jointly serviced the 15 power stations, with Babcock responsible for four. These contracts were repeatedly renewed until they were re-advertised in 2019 and awarded in October 2021.

Judge Anthony Millar ruled that Eskom should have allowed Babcock to submit its ISO3484 welding certificate after the tender closed.

Link to the full judgement HERE: Judgment-Babcock-vs.-Eskom

Author: Bryan Groenendaal

1 Comment

  1. Frank Taggart on

    I was one of the 3 Babcock Commissioning Engineers at Hendrina PS. Babcock installed the first boilers and Steinmuller got the contract or the second phase boilers . I recall that Mr. Carlin was extremely annoyed considering that work had gone to plan.
    Just thought that I’d mention these facts

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