DOCUMENTS

M&R, Steinmüller subcontracting on Hitachi boiler contract

Minister says 62% of procurement sourced locally, 38% overseas

DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY
QUESTION NO.:1326
DATE OF PUBLICATION: 14 May 2010

1326. Mrs C Dudley (ACDP) to ask the Minister of Public Enterprises:

(1)(a) How many boilers will be manufactured in terms of the contract with a certain company (name furnished), (b) what is the (i) capacity and (ii) specification of the boilers for the new Medupi power station and (c) where will these boilers be manufactured;

(2) whether any local engineering firms were invited to tender for the manufacturing of the boilers; if not, why not; if so, what are the relevant details?      NW1562E

REPLY

(1) (a) A total of 12 boilers will be manufactured: 6 for the Medupi Power Station and 6 for the Kusile Power Station.

(b) (i-ii) The planned output per unit is 794 MWe.The specification of the Medupi Power Station Boilers comprise of a complete supercritical boiler, with headers, water walls, integral pipe work, isolating valves, insulation, cladding, super-heaters, re-heaters and economiser. It was further specified that the boiler supply should include a complete air system, gas system, low pressure services system, high pressure piping, feed water system, control, instrumentation and an electrical system with an oil fired boiler for auxiliary systems.

(c) The majority of the fabrication work on the boiler will be done in South Africa with a local content of 62% of the contract value. The remaining 38% will comprise of parts and materials sourced all over the world including Canada, Germany, China, Japan and Thailand.

(2) Capability is not locally available. However, local engineering firms do constitute the majority of the sub-contractors, e.g. Murray & Roberts, Steinmüller and others.

Issued by Parliament, May 25 2010

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