Adjudication board rules Stefanutti entitled to R685m additional payment for work at Kusile
The Dispute Adjudication Board (DAB) has issued its decision with respect to a dispute between JSE-listed Stefanutti Stocks and State-owned utility Eskom over the Kusile power station, finding that Stefanutti is entitled to additional payment of R685-million, excluding value-added tax.
Both parties have the right to refer the decision to arbitration, however, in terms of the contract, the decision is binding and must be given effect to, unless and until it is revised by amicable settlement or an arbitral award.
Once Eskom has made payment, Stefanutti Stocks says it will use the funds received to settle costs associated with its claim and make a capital repayment towards the loan.
As previously reported by Engineering News, the claim stems from a dispute between the parties, with Eskom saying Stefanutti was overpaid by R1-billion for its work at the Kusile power station, but the construction group saying the power utility owes it money.
In 2022, Stefanutti advised its shareholders that it had submitted an overarching preliminary and general cost claim, as well as a subcontractor overarching preliminary and general cost claim, of R337-million and R193-million, respectively, in relation to the Kusile power project.
In addition to a construction cost claim of R438-million and a finance cost claim of R171-million, the total of all provisional claims submitted to the experts is R1.14-billion, the publication reported at the time.
Since August 2021, the group has secured payment of a combined total value of R119-million for measured work through DAB rulings.
Decisions on further claims by Stefanutti against Eskom remain outstanding.
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