Eskom reaches R580m settlement with Stefanutti Stocks

Eskom and JSE-listed construction group Stefanutti Stocks have resolved a longstanding multibillion-rand commercial dispute concerning building contracts at the Kusile power station.

The settlement, amounting to R580m, relates to outstanding claims linked to a building contract at Kusile and closes one of the remaining legacy contract matters on the project. The contracts, concluded during the early construction phase, can carry unresolved financial or legal obligations years after work is completed.

The dispute, which began in 2022, was handled through a dispute adjudication board (DAB), the standard mechanism for resolving contractual claims on major infrastructure projects.

Stefanutti Stocks’ original claim amounted to R1.6bn, mainly for additional costs arising from delays, design changes and variations in the Kusile contract. A DAB later ruled that R685m, excluding VAT, was due.

Following the ruling, Eskom issued a notice of dissatisfaction and signalled its intention to approach the high court to have the award set aside. Had this been successful, the dispute would have proceeded to arbitration.

In line with contractual provisions requiring parties to first pursue an amicable settlement, negotiations were undertaken to resolve this claim and another related to further cost adjustments on the construction work, and Eskom’s counterclaim for delay damages linked to late completion.

A full and final settlement agreement was signed on November 24, covering all actual or potential claims arising from the contract. Payment is due by December 12.

Eskom confirmed that the settlement will not be passed on to electricity tariffs and does not constitute an admission of fault, liability or mismanagement.

Group CEO Dan Marokane said the outcome reflected Eskom’s approach to safeguarding its financial position while avoiding prolonged legal proceedings.

The resolution comes as Kusile reaches an operational milestone. Eskom said Unit 6, the final unit at the station, achieved commercial operation on September 29, making the plant fully operational.

Stefanutti Stocks had previously indicated that the outcome of the Kusile claims process was material to its broader funding position, including its banking facility with Standard Bank.

Correction: November 27 2025

A previous headline incorrectly stated the disputed amount as R580m. The original claim was R1.6bn, which was settled for R580m.