Eskom has resolved a long-running commercial dispute with the Stefanutti Stocks Basil Read Joint Venture (SSBR) related to the buildings contract at the Kusile Power Station, closing one of the last major legacy issues linked to the project. The settlement reduces SSBR’s initial R1.6 billion claim to R580 million, saving Eskom just over R1 billion.
The dispute dates back to 2022 and centred on SSBR’s “claim 5,” one of several contractual claims tied to the multi-year construction of Kusile. The matter proceeded through the standard Dispute Adjudication Board (DAB) process, an industry mechanism used on large infrastructure projects to resolve complex, contested claims before they escalate into litigation.
The DAB determined Eskom owed R685 million on claim 5. Following further settlement negotiations, Eskom and SSBR agreed on a final combined payment of R580 million. The amount covers claim 5, claim 6, and Eskom’s counterclaim, consolidating all outstanding issues between the parties.
Eskom notes that the R580 million payment is R105 million below the adjudicated amount and over R1 billion lower than the original R1.6 billion claim SSBR submitted before the dispute resolution process began.
The utility said the outcome demonstrates stricter internal controls around contract management and efforts to limit financial exposure on legacy construction matters.
According to Group Chief Executive Dan Marokane, Eskom has strengthened its ability to test, defend, and verify contractor claims as part of its broader efficiency drive.
The company added that the settlement is structured to avoid lengthy legal action, balancing cost, risk, and time. Importantly, Eskom said the payment will not be recovered from the electricity tariff, meaning the cost will not be passed on to consumers.
Eskom emphasised that the agreement does not imply wrongdoing or mismanagement by either party. Such negotiated outcomes, the utility said, are standard in large, multi-year infrastructure developments where scope changes, delays, and cost disputes accumulate over time.
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With Unit 6 entering commercial operation on 29 September 2025, Kusile Power Station is now fully operational. The settlement allows Eskom to close one of the few remaining contractual matters tied to the build and turn attention fully toward:
- final contract close-outs,
- operational optimisation of the plant, and
- improving system-wide reliability.
The Kusile project, one of South Africa’s largest power infrastructure undertakings, has carried numerous contractual and financial complexities over its development. Resolving this dispute clears a significant item from Eskom’s legacy backlog as the utility focuses on stabilising operations and tightening governance across its generation fleet.
Eskom stated it remains committed to disciplined contract management and maintaining strong oversight of large-scale projects. The utility says this approach is central to safeguarding public funds, limiting financial leakage, and ensuring accountability as it continues efforts to restore operational credibility.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
