Following a strategic review of the National Transmission Company of South Africa (NTCSA)’s corporate plans, including a focus on accelerating the delivery of the Transmission Development Plan (TDP), long-term contracts have been signed with 28 local companies to provide NTCSA with services for the construction of substations.
To date, NTCSA has signed contracts with more than 60 suppliers in the past few months, enabling them to provide services in response to tenders in the areas of transformers, engineering services, overhead lines and substations. read more
NTCSA is focused on strengthening its infrastructure delivery capabilities and is building strategic partnerships to not only expand infrastructure delivery capabilities but also accelerate the development of transmission infrastructure.
Mr. Segomo Scheppers, Interim Chief Executive Officer of NTCSA; Image credit: NTCSA
“NTCSA leadership has identified two priority programs: the Additional Transformation Program, which will deliver 13 GW, and the Rapid Projects Program, which will deliver 24 GW, which will accelerate the delivery of transmission infrastructure. These projects are in various stages of implementation in terms of design, procurement and construction,” said NTCSA Interim Chief Executive Officer Segomoko Scheppers.
“The substation panel agreement signed today is one of the important milestones that will enable the implementation of priority programs. This collaboration between the public and private sectors will act as a catalyst for economic growth, foster innovation and strengthen the competitiveness of local industry on a global scale,” continued Mr. Scheppers.
Substation service companies form part of two panel categories, Panel A – Engineering, Procurement and Construction (EPC) and Panel B – Procurement and Construction (PC), with 18 and 20 companies contracted respectively. Some EPC contractors also offer PC services.
The panel agreement was signed and established pursuant to an open bidding process to procure capable service providers and contractors to partner with NTCSA to achieve NTCSA’s mandated objectives. The next phase of the two priority programs will see panelists compete across the panel for a variety of projects.
Additionally, the process of ramping up the panels of both EPC and PC substation contractors begins around August-September each year, allowing other companies in this sector of the industry to participate to increase capacity and implement NTCSA’s infrastructure program.
localization strategy
The contracting strategy is designed to enable an efficient procurement process to maintain and strengthen governance, shortening lead times and properly meeting Transmission Development Plan (TDP) requirements while facilitating localization in accordance with legislation.
The scope of substation construction is divided into two different panels: A and B. This approach allows us to focus specifically on each aspect of infrastructure development, thereby optimizing the entire process. Having two panels provides flexibility in the procurement strategy approach and ensures comprehensiveness of all contractor capabilities.
Long-term contracts with substation panel contractors demonstrate our commitment to continuity and stability in the energy sector and provide these companies with a platform to compete in various tenders.
The synergy of various government-led initiatives on improving EPC capacity and internal efficiency and private sector participation in electricity transmission will enable NTCSA to deliver the necessary electricity transmission infrastructure at an accelerated pace.
NTCSA will continue to provide regular updates on the TDP project and related initiatives.
The local companies in Panel A and Panel B that have signed agreements are:
ACTOM (Pty) Ltd Adenco Construction (Pty) Ltd Amulet Group (Pty) Ltd Beacon Technologies (Pty) Ltd Coeng Consulting and Construction Engineers (Pty) Ltd CIS-G-LTA JV Eskom Rotek Industries SOC LTD Gridbow Engineers and Technical Services (Pty) Ltd Nkhalaba Trading CC ISF/Striving Mind JV SPM-RT Tshabalala JV Lenado Projects (Pty) Ltd Leswao Facilities Management (Pty) Ltd Larsen & Toubro Limited – Larsen & Toubro T&D SA (Pty) Ltd Consortium Lubocon Civils CC Makite Engineering CC Mkhulu Electro Distribution Projects (Pty) Ltd Murray and Roberts Holding Limited and subsidiaries Olot Engineering (Pty) Ltd Shonisani Rambau Construction (Pty) Ltd Semilson Group (Pty) Ltd Sivtek Hamsa Geda JV Siyavuya Power Projects (Pty) Ltd thenga Holdings (Pty) Ltd Tractional Enterprise (Pty)Ltd Tushcor Holdings (Pty) Ltd VE Reticulation (PTY)Ltd YNF Engineering CC
Author: Brian Groenendaal
Source: NTCSA
