5 February 2016

South Africa: Westinghouse Opposes Eskom, Areva Appeal to Constitutional Court, and Lodges Counter Appeal

analysis

In further developments in the ongoing dispute of a R5-billion contract award by Eskom to Areva, Westinghouse has opposed their applications to the Constitutional Court for leave to appeal a Supreme Court of Appeal (SCA) judgement on 9 December 2015. The SCA judgement had set aside the contract, declared it "unlawful", and ordered that it be remitted back to Eskom for reconsideration. By Chris Yelland and Aimee Clarke for EE PUBLISHERS

The contract award, said to be the biggest that has ever been disputed in a court of law in South Africa, includes the replacement of six steam generators at Eskom's Koeberg nuclear power station in the Western Cape. Eskom and Areva say that the steam generators are approaching their end-of-life, and that it is critical that they be replaced during the normal reactor refueling and maintenance outages in 2018 (known as the X23 outages).

The Koeberg power station, built in South Africa in the mid-1980s by French nuclear contractor Framatome - the predecessor of Areva - using nuclear reactor and steam generator designs licensed from Westinghouse. Indeed, Westinghouse was a founding shareholder of Framatome in 1958, before it disposed of its shareholder interest in Framatome in later years.

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