Moving ahead in extending its infrastructure, the National Transmission Company of South Africa (NTCSA) on 20 August 2024 announced that long-term agreements have been signed with 19 local companies in the various categories of overhead line construction, that is, in Engineering, Procurement and Construction (EPC), Procurement and Construction (PC), and Construction. Five companies have been signed on for EPC, nine for PC, and a total of seventeen companies for Construction.
The NTCSA has appointed 19 local EPC suppliers to begin work on the rollout of its transmission build programme.
This marks a pivotal moment in the country’s commitment to improving its transmission grid capacity. It follows the issuing of an open tender enquiry in May 2023 by the Eskom Transmission Division, the predecessor to the NTCSA.
The process to be appointed to the EPC panels will be opened to the market annually on the anniversary date, which is around July each year, to enable other companies to participate. The suppliers will compete for various tenders over the coming years, and the contracts are expected to be worth in the region of R32 billion over eight years.
Interim Chief Executive Officer of the NTCSA, Segomoco Scheppers commented: “The NTCSA’s strategic move to accelerate the development of the transmission infrastructure through partnerships is a significant step towards enhancing South Africa's power network and underscores the importance of strategic planning and efficient execution.
“It demonstrates collaboration between the public and private sectors and is expected to support economic growth by creating sustainable and skilled job opportunities,” he said.
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 efficiently on the Transmission Development Plan (TDP) requirements and at the same time promote localisation, in line with legislation.
The scope for line construction has been divided into three different transmission lines panels:
- Engineering, Procurement and Construction (EPC)
- Procurement and Construction (PC)
- Construction.
This approach is to allow for a specialised focus on each aspect of the infrastructure development, with the aim of optimising the overall process.
Working with three panels of suppliers provides flexibility in the procurement strategy and supports inclusivity of all contractor capabilities. The services to be provided will encompass engineering, detailed designs, procurement, construction, testing, commissioning, and handover of assets to the NTCSA.
The process adopted demonstrates a commitment to continuity and stability in the energy sector, providing companies with a platform to compete for various tenders. This competitive context is intended to drive innovation and efficiency and so benefit the rollout of the NTCSA’s infrastructure development plan.
The NTCSA will provide regular updates on the TDP projects and related initiatives as they progress.
For more information visit: www.ntcsa.co.za