Medupi Power Plant Drives Limpopo's Long-Term Socio-Economic Advancement

28 May 2019
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African Development Bank (Abidjan)

Medupi is the largest dry-cooled coal-fired plant in Africa, with six boilers that will produce 4,764MW of power, at peak operation. The African Development Bank Group signed a loan agreement with Eskom in 2009, with the overall intent to not only increase the country's power generation, but also increase the socio-economic positioning of the entire Limpopo Province in South Africa.

The anticipated outcomes included gross domestic product (GDP) growth, creation of new industries, more employment opportunities that reduce poverty levels, and regional integration. So far, this reach has been tremendous, traversing each of the anticipated growth areas. This impact is evident in the local transformation.

In a mission by the Bank's staff earlier this year, Eskom - the local energy utility - demonstrated the socio-economic development gains made during the implementation of the project. Specifically, Eskom has managed to achieve local industrialization by awarding local contracts worth ZAR 83.7 billion representing 96% of the actual expenditure so far; develop a wide range of infrastructure including roads, houses, sewer plants and schools; imparting skills and knowledge to more than 4,500 South African workers, about 60% who are from the province and a total that surpassed the targeted 3,000; and enhancing local enterprises through entrepreneurship trainings that have led to more than a hundred local businesses empowered to work with large corporations such as Eskom.

Thirty-two year-old Thomas Chuene, a Supplier Development and Localisation Advisor at Eskom, embodies the socio-economic development of the entity. A Bachelor of Commerce (Accounting) graduate, he joined the Eskom Academy of Learning (EAL) in 2010/2011, under the Graduate-in-Training programme. On completion, he joined the entity's work force at basic entry level, then pursued engineering studies and was promoted to his current position, six years ago.

As the best in his EAL class, Chuene has received skills, lifetime experience and a job opportunity that he uses at the plant, and which can propel him forward for future career ambitions and a sustainable livelihood.

Thomas is radiant about the knowledge the EAL programme has provided him with, and what this may lead to. "I have learnt so much through the programme, not just in skills, but also career development," he said.

Medupi's non-technical reach ascribes to the potential envisioned, and will continue to reflect on Lephalale, Limpopo Province, for decades to come. The plant is expected to be fully operational by 2020, maintaining a significant operating capacity to attract even more socio-economic growth in the region. Moreover, the plant's impact serves as a demonstrable project of the potential that development projects have, over and above their anticipated technical and direct impact, to local communities and countries.

"Eskom and EAL have provided me with knowledge and opportunities that have enabled me pursue a course in project management and supply chain management. This can lead to me becoming an entrepreneur or senior manager in the organization, within no time," Thomas said, beaming with optimism.

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