Eskom resolves Kusile Power Station Stefanutti Stocks Basil Read Joint Venture contract dispute, saving just over R1 billion – reducing claim from R1.6 billion to R580 million

Tuesday, 25 November 2025: Eskom Holdings SOC Ltd confirms the successful resolution of a long-standing commercial dispute that commenced in 2022, with the Stefanutti Stocks Basil Read Joint Venture (SSBR) relating to the buildings contract at Kusile Power Station.

The resolution follows the completion of the formal Dispute Adjudication Board (DAB) process for claim 5; a standard mechanism used on large infrastructure projects to resolve complex contractual claims. The settlement process enabled both parties to clarify their positions and identify the most appropriate contractual route to close all outstanding SSBR claims alongside Eskom’s counterclaims.

Through constructive engagement, Eskom has reached the full and final settlement of R580 million in regard to claim 5 that is R105 million below the DAB’s decision of R685 million. This settlement of R580 million includes claim 5, claim 6 and Eskom’s counter claim.

Prior to the DAB process commencing, SSBR’s original claim amount for claim 5 was R1.6 billion

“As Eskom drives multiple initiatives to increase efficiencies across the utility, the results demonstrate the extremely robust measures that have been put in place to defend Eskom and its balance sheet against contractor claims,” said Dan Marokane, Group Chief Executive of Eskom.

This outcome reflects Eskom’s approach to balancing cost, risk and time, avoiding prolonged legal proceedings while safeguarding public funds. Eskom’s payment to SSBR will not be recovered from the tariff.

Eskom notes that settlements of this nature are common in large, multi-year infrastructure projects worldwide. The agreement does not constitute any admission of fault, liability or mismanagement.

With Kusile Power Station now fully operational and Unit 6 being the last unit to reach commercial operation on 29 September 2025, this settlement brings closure to one of the remaining legacy contract matters. It allows Eskom to focus on contract close-out, operational optimisation and delivering reliable energy to South Africa.

Eskom remains committed to strong governance, disciplined contract management, and responsible stewardship of public funds, ensuring value for money in managing legacy contract matters.

ENDS