General Electric South Africa (GE SA) announced today that it has been awarded a R500-million contract to supply switchgear critical to the development of Eskom's new generation Medupi thermal power station in Limpopo.
The awarding of the contract reaffirmed the supplier relationship between GE and Eskom, said Ross Boyd, General Manager of GE Industrial Solutions in South Africa, a solutions platform of GE Energy. "As GE we are geared to help in countering South Africa's energy shortage," he said. "We'll do so by providing effective solutions with our products and our focus will be on our strengths, namely innovation, performance, safety and reliability."
The switchgear would be built in the GE facility at Midrand which reflects GE's commitment to the policy of investing in local manufacturing capacity and resources.
"We are proud of the fact that the construction of the modular low-voltage electrical distribution system is being undertaken by dedicated teams provided through broad-based black economic empowerment (BBBEE) partners who are working in tandem with experienced GE technical staff," Boyd said.
"They are key to the operation and are undertaking critical tasks in the assembly of the electrical equipment required, the process of building the intricate wiring and the testing of the equipment before it is delivered on site."
GE Southern Africa President Thami Mbele welcomed the opportunity to work with Eskom. "We're focusing on public private partnerships, especially in the power generation sector. We believe GE's proven and innovative turnkey solutions for energy and water utilities make us a good partner in this project -- a project that is crucial in helping our country to meet its energy needs."
Boyd added that GE has the capacity to deliver Medupi whilst still focusing on increasing market penetration in other segments. "Medupi is one of the projects the plant will be delivering and GE will continue to add capacity to deliver other projects."
The equipment is critical to the development of Medupi, a six unit coal-fired power station which is the first of its kind to be built in South Africa for more than 20 years. Part of Eskom's commitment to the construction of new power stations to meet the growing power needs of the country, Medupi will cost approximately R125-billion to construct.
Being built on an 883 hectare site in Lephalale (formerly Ellisras); the new station will have a generation capacity of about 4800 Megawatts and a projected lifespan of 50 years.
"The contract for the supply of the SEK/SEV low-voltage switchgear system was awarded to GE recognising the strengths of our arc proof switchgear required by Eskom," said Boyd.
The GE switchgear is made to tested International Electrotechnical Commission (IEC) global specifications meeting local requirements and is in wide use in power plants, the petro-chemical industry, steel industry, paper mills, water treatment plants and other industrial and commercial applications around the world. GE is renowned for its product performance, safety and reliability.
The SEV technology is arc proof, with protection being supplied through insulated coated busbars and connections. Compartmentalisation of the functional areas and other unique constructional features which limit arc faults to the point of origin. It is also modular, interchangeable and features air circuit breakers alongside the withdrawable technology to provide high accessibility and easy maintenance by the user. Up to 32 drawout units can be inserted per cubicle to suit specific requirements.
"The delivery of the first units to the Medupi site is scheduled towards the end of 2010 and will continue into 2011 as the units are required by Eskom," said Boyd, adding that the size of the contract made it one of the most significant to take place in the local market for some time. "It provides GE with a major opportunity to demonstrate their commitment to participating in the growth of South Africa's infrastructure."
"This contract was awarded to GE based on its capacity to produce switchgear within Eskom standards and requirements and their ability to deliver and provide the essential back up service and maintenance," said Kobus Steyn, Acting MD of Eskom Enterprises Division. "We look forward to a successful completion of Medupi with the support of GE," Steyn said.
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About GE:
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Thuli Phiri
GE Global Growth Organization
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