Alstom signs €1.3bn contract with Eskom for coal-fired power plant in South Africa

Alstom has signed a contract worth more than 1.3 billion euros with state-owned utility Eskom to provide key equipments for a 4,740 MW coal-fired power station located in Mpumalanga province, east of Johannesburg, South Africa. This is the second major agreement within a few months between the two companies after Alstom was awarded a similar contract for the Medupi coal-fired power station, located in the north-eastern province of Limpopo, in November 2007.

Under the terms of this contract, Alstom will provide six 790 MW steam turbine and turbogenerator packages for the supercritical pulverized coal-fired Bravo power plant The contract comprises 6 steam turbines with 6 turbogenerators, 6 air-cooled condensers and the related auxiliary equipment, as well as all associated erection and commissioning services. The contract will be booked in the first half of the fiscal year 2008/2009.

“Thanks to this contract, Alstom will again be able to make an important contribution to Eskom’s capital expansion programme to increase generation capacity”” said Philippe Joubert, Executive Vice-President of Alstom and President of Alstom Power Systems. “Our equipment is being used in about 80% of existing power stations in South Africa, providing us with crucial local experience.”

Since the end of the 1990s, South Africa has experienced rapid economic growth reflected in growing power demand. In response, Eskom has started a programme to increase the country’s installed capacity and Alstom has been selected as the supplier of choice.

In October 2006, Alstom had won a contract to refurbish the 2,100 MW Arnot coal-fired power plant, adding an extra 300 MW to its power output by December 2010. Alstom is also returning to service two mothballed plants, Grootvlei and Komati, which together will add an additional 2,161 MW to the grid by 2010.

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