EPC suppliers appointed for transmission infrastructure build

Following a strategic review of its corporate plan, which includes accelerating delivery on the Transmission Development Plan (TDP), the National Transmission Company South Africa (NTCSA) has signed long-term agreements with 28 local companies to provide the NTCSA with services for the construction of substations.

The NTCSA has appointed 28 contractors to provide engineering, and/or procurement and construction of substations in the rollout of new transmission infrastructure. [Photo credit: Eskom] 

Over the past few months, the NTCSA has signed agreements with now more than 60 suppliers: they are approved to respond to tenders and supply services relating to transformers, engineering services, overhead lines and substations.

The NTCSA is expanding its infrastructure delivery capabilities and forging strategic partnerships to expedite the development of transmission infrastructure.

Interim Chief Executive Officer of NTCSA, Segomoco Scheppers said: “The NTCSA leadership has identified two priority programmes, the Additional Transformation Programme providing 13 GW and the Expedited Projects Programme, supplying 24 GW in new transmission infrastructure. These projects are at various stages of implementation in terms of design, procurement, and construction.

“The substation panel contracts signed today mark one of the critical milestones to enable the delivery of the priority programmes. This collaboration between the public and private sectors will act as a catalyst for economic growth, supporting innovation and enhancing the competitiveness of local industries on a global scale,” Scheppers added.

The substation services 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 signed on respectively. Some of the EPC contractors are also providing PC services.

The contracts were signed following an open tender process to source capable service providers and contractors to partner with the NTCSA to deliver on its mandated objectives. The next phase of the two priority programmes will entail the panellists competing for various projects.

The process to grow the panels of both EPC and PC substation contractors will be opened every year around August/September to enable other companies in this field of the industry to participate and so increase capacity to deliver on the NTCSA’s infrastructure programme.

Localisation strategy

The contracting strategy has been designed to allow for efficient procurement processes, to maintain and strengthen governance and reduce lead times, to deliver on the TDP requirements, and at the same time, to promote localisation in line with legislation.

The scope for substation construction is divided between the EPC and PC panels. This approach allows for a specialised focus on each aspect of the infrastructure development, with the aim of optimising the overall process. The two panels also provide flexibility in the procurement strategy and promote inclusivity of contractors with different capabilities.

The long-term agreements set with the substation panel contractors demonstrate a commitment to continuity and stability in the energy sector, providing these companies with a platform to compete for various tenders.

The synergy of EPC capacity, along with internal efficiency improvements, as well as various government-led initiatives on private sector participation in transmission, will enable the NTCSA to deliver the required transmission infrastructure at an accelerated pace.

The NTCSA will continue to provide regular updates on the TDP projects and related initiatives.

For more information on the 28 companies with which the NTCSA has signed agreements for the construction of substations, visit: www.ntcsa.co.za