Eskom Saves R105m in Kusile Power Station Contractor Settlement

In a significant move that draws a line under a costly and complex legacy issue, Eskom has resolved a major commercial dispute with the Stefanutti Stocks Basil Read (SSBR) joint venture, related to construction work at the critical Kusile Power Station.

The state-owned utility confirmed a final settlement of R580 million, a figure that brings closure to all outstanding claims and represents a substantial saving for the public purse. The agreement sees Eskom paying R105 million less than the R685 million initially decided by a formal Dispute Adjudication Board (DAB). This is a far cry from the joint venture’s original claim of R1.6 billion.

A Strategic Resolution, Not an Admission of Fault

The resolution follows a constructive engagement process between the two parties and is being framed by Eskom as a strategic decision to avoid a lengthy and expensive legal war. Such settlements are common in massive, multi-year infrastructure projects worldwide and do not represent an admission of fault or mismanagement by the utility.

Dan Marokane, Eskom’s Group Chief Executive, pointed to the outcome as evidence of the utility’s tougher stance on defending its balance sheet. “As Eskom drives multiple initiatives to increase efficiencies… the results demonstrate the extremely robust measures that have been implemented to defend Eskom and its balance sheet against contractor claims,” he stated.

Protecting the Public from the Bill

Crucially, Eskom has assured the public that the R580 million payout will not be recouped through electricity tariffs. This ensures that the financial burden of settling this legacy contract dispute does not get passed on to already strained consumers.

The settlement marks a pivotal step in tidying up the contractual loose ends of the Kusile project, which is now fully operational. With the final unit scheduled to reach commercial operation by the end of September 2025, this agreement allows Eskom’s management to focus firmly on the future: optimising the power station’s performance and delivering more reliable energy to the national grid. For a utility on a path to recovery, closing costly chapters like this one is essential for responsible stewardship and building a more stable financial foundation.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com