Eskom's mega projects showed us mega red flags - here's what we can learn from them | Fin24
Kusile and Medupi power stations continue to come under fire as poorly managed and ill-designed, remaining years behind completion dates amid drastically rising costs that now stand at R300bn, by conservative estimates. Despite being the most expensive projects in the world, these stations are reportedly failing in reliability, achieving a 40% rate at best.
Yet as delays began to creep into Kusile, the sequence of work backed up and a number of contractors found themselves unable to access the site on their contractually agreed start dates. Insufficient stakeholder management eventually led to labour unrest; yet another project shortcoming that had expensive and time-consuming consequences.My view is that one of the main problems with mega projects such as Kusile, is that Eskom issued numerous tenders and had to manage diverse contractors. Instead, one tender should have been issued for an Engineering, Procurement and Construction contract.
If an expensive international executing partner is going to be used, a rigorous due diligence is essential and should include lengthy discussions with previous clients and other industry stakeholders.
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