Westinghouse challenges South Africa nuclear contract awarded to Areva

Electricity pylons carry power from Cape Town's Koeberg nuclear power plant July 17, 2009. REUTERS/Mike Hutchings·Reuters· (Reuters)

JOHANNESBURG (Reuters) - Westinghouse Electric Company said on Thursday it had filed an interdict in a South African court to reopen the bidding process for a contract awarded to French rival Areva to replace six steam generators at a nuclear power plant. But South Africa's power utility Eskom said the matter was a done deal and Areva had won the contract to provide the generators to the Koeberg nuclear power plant. The refit is part of a programme to install up to 9,600 megawatts of new nuclear power by 2030 to help Africa’s most advanced economy ease chronic electricity shortages. Westinghouse, the world's largest nuclear fuel producer and part of Japan's Toshiba group, said in a statement it had gone to the Johannesburg High Court about the matter. "It will be clear that a continuation of the current process is necessary and a reversal of the announced initial preferred candidate decision is appropriate,” a Westinghouse spokesman said. Eskom said it would provide Westinghouse with the documents it was requesting through the courts. "Eskom’s internal approval processes for the replacement of the Koeberg steam generators have been completed," the utility said in a statement. Projects of this nature can be worth hundreds of millions of dollars but Eskom did not put a figure to it. The vast majority of South Africa’s electricity is generated from coal and the government is struggling to ensure that supply stays a step ahead of growing demand. The nuclear generators are expected to be installed by 2018 in Koeberg, the country's only nuclear power plant, which is close to Cape Town.

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