Scopa: Pay-as-you-go approach to Medupi, Kusile
Updated | By Gaopalelwe Phalaetsile
The Standing Committee on Public Accounts (Scopa) says it is clear that the building of the Medupi and Kusile power stations was flawed from inception.
The committee briefed the media on Thursday following oversight visits to the power stations in Limpopo and Mpumalanga this week.
"There is an admission on the part of Eskom, which we confirmed from our observation, that the project from its conception was not conceptualised correctly and there is almost pay-as-you go correction approach. Material deficiencies and defects are identified as and when things happen," said Scopa chairperson Mkuleko Hlengwa.
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Hlengwa said the committee will soon sit down and appoint members who will be in charge of ensuring that the power utility turns its finances around.
"We are concerned with getting the projects fixed, so the deadlines are 2020 and 2023 for Medupi and Kusile respectively. The cost escalations for each project, as things stand now, is that Medupi, which was initially budgeted for at R79 billion, will be completed at R146 billion. And Kusile, which was initially budgeted for R81 billion, will be completed at R161 billion."
Hlengwa vowed the committee will not tolerate further escalation in costs.
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