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Eskom terminates Alstom contract

Tiisetso Motsoeneng|Published

This 2013 file photo shows the Kusile Power Station in Mpumalanga under construction. Photo: Supplied. This 2013 file photo shows the Kusile Power Station in Mpumalanga under construction. Photo: Supplied.

Johannesburg - Eskom has agreed with Alstom to terminate the French firm's control and instrumentation (C&I) contract for the Kusile power station, which is under construction.

The cancellation, which is effective April 17th, would not delay the completion of the power plant, an Eskom spokesman said on Friday. The first unit of Kusile is due to come on line in the first half of 2017.

Kusile is one of three large-scale power plants Eskom is building to reduce chronic electricity shortages, but has been frequently delayed due to labour unrest and technical glitches.

Eskom's new Medupi power station produced electricity earlier this month for the first time but its first unit will take three months before it cranks up to its installed capacity of 794 megawatts.

Reuters