Paul O`Flaherty, Eskom`s Chief Financial Officer and Group Capital Director, said: “Eskom is playing a much more active role in labour relations at the project sites, and we are working with employers and workers to ensure that workers are treated fairly and that we can improve productivity and focus on making them available.” The agreement was signed by Eskom, contractors and organized labour – only contractors and workers were signatories to the previous PLA. New location-specific agreements are being developed in accordance with agreed principles, including: Update Report on the issues of the medupi power plant: Eskom Project Update Mr Dan Marokane, Executive Group, Eskom, thanked the Committee for inviting the Committee to inform the Committee of the progress made in Medupi after the Committee`s visit on the spot last year. Since then, there has been a lot of progress in construction and it will provide an updated overview and describe what is still needed. It will also provide information on the partnership agreement, the latest work activities, technical issues and some challenges with contractors. Eskom built 12 units of 800 MW each, although the focus was on Block 6. Once the first unit is complete, an update on progress would also be made available for the following units. Some of Medupi`s successes have begun to bring Unit 6 to life. He listed some of these successes as follows: `Back energizing – 400kV of power for installation providing power – blowing auxiliary boilers – from steam to commissioning – Water treatment facility – to make sure the water storage was ready He said the most important step was synchronization. He explained that the date of the first synchronization was extended from December 2013 to mid-2014. This extended period of six months allowed the cleaning of efficient electricity generation.

However, a number of outages resulted in a possible delay, currently managed by the Medupi project team. He attributed this situation to continued strikes on the ground, the need for extensive work to redirect the fraudulent activities of contractors, insufficient on-site construction work for wiring and poor productivity. He explained that the six-month delay in synchronizing Unit 6 could affect three areas; Control and instrumentation, boiler welding and boiler welding process Qualification protocol. Mr. Marokane explained that welds for the boiler were made with unqualified welding processes, which resulted in an exchange and therefore a re-examination was required. He added that with the Weld Procedure Qualification Record (WPQR), a Hitachi supplier had manufactured some high-pressure devices, but some of the equipment had been improperly manufactured due to deficiencies in quality control. In addition, fraudulent activities were also recorded with post-Weld Heat (PWHT) treatment, and a Hitachi subcontractor had been reported to the South African police (SAPS) and an investigation was under way. Mr.

Marokane went further to talk about control and instrumentation (C-I) and said that the entire Medupi would be controlled by a distributed control system, a complex computer and instrumentation system that allowed operators to safely monitor and monitor what happened with the installation, both internal and external. The Eskom team therefore helped Alstom with a team of engineers in France to ensure the success of factory acceptance tests. Eskom would therefore implement a C-I mitigation strategy for blocks 6 and 5, blocks 4 to 1 and the boiler protection system. Contractor management has been improved by the Chief Executive Officer (CEO) Forum. Fourteen-day meetings were held on site in front of THE CEOs and executives of the contractors.