The National Transmission Company of SA (NTCSA), which has been established as part of the unbundling of Eskom’s generation, distribution and transmission businesses, has appointed 19 local contractors to assist in expanding SA’s grid capacity.
The contractors will provide engineering, procurement and construction (EPC), procurement and construction (PC) and construction services. Five companies were signed on for EPC, nine companies for PC and a total of seventeen companies for construction,” the company said in a statement.
“The process to be appointed to the EPC panel will be opened to the market annually on the anniversary of the panel, which is around July each year, to enable other companies to participate,” the companies said.
“The suppliers will compete for various tenders over the coming years, and the contracts are expected to be worth in the region of R32bn over eight years.”
The 19 local companies were identified as Ady Em Technical, the Bona-GPWG JV, Imbawula Technical Services and Suppliers Group, KRM Global Works, Letacla, Melees Electrical Lines, Mico Construction, Mkhulu Electro Distribution Projects, Murray and Roberts, NYC Water and Mining, Olot Engineering, Power Line Africa, Rethuseng Live Line and Services, Siya and Aya Engineering, Siyavuya Power Projects, SKM, Take Five To Make Ten General Trading, Thenga Holdings, and Tractionel Enterprise.
SA needs an estimated R390bn to strengthen its transmission capacity and connect new energy projects to the grid. This is required to fund Eskom’s current transmission development plan which outlines the need for the installation of more than 14,000km of new high-voltage power lines by 2032.
Over the past 10 years, Eskom has built a mere 4,300km of transmission lines but it plans to build 1,400km over the next three years at a cost of about R70bn.
The Treasury announced in the 2024 budget that it would launch a pilot project that would enable private investment in electricity grid infrastructure in July as part of wide-ranging reforms.
With Denene Erasmus
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