GAST withdraws from Medupi contract

Today, engineering solutions provider, GAST, announced that Basil Read terminated their contract, despite having already completed more than 95% of a R83 million contract. Simultaneously Basil Read called upon GAST’s R8,2 million performance bond.

Eskom awarded the R516 million Medupi infrastructure project to Basil Read. The scope of work included the construction of permanent access and service roads to the ash dump area, dump earthworks, the initial-platform and wearing course for stacking, the bulk earthworks and geosynthetics for the various coal stock yards, ash dump and dams.

Eskom logo

Basil Read subsequently approached GAST to assist in the supply and installation of one the largest Geosythetic projects in the Southern Hemisphere, which included:

  • 472 500m² of 1,5mm HDPE Dual Textured geomembranes,
  • 78 400m² of 1,5mm HDPE Smooth geomembranes,
  • 358 761m² of 2,0mm HDPE Smooth geomembranes,
  • 325 861m² of geosynthetic clay liners,
  • 598 400m² of class 2 separation geotextiles,
  • 67 360m² of 1000g protection geotextiles,
  • 62 000m² of geocells,
  • 34 850m²of geogrids,
  • 32 200m² of cuspated sheets, and
  • 358 761m² of 350g geotextiles.

With over 50 years’ experience and more than 12,000 projects completed with various clients, GAST’s management has taken the decision to withdraw from the Medupi project due to a variety of difficulties experienced with Basil Read, which have impacted GAST’s ability to deliver.  This decision was taken due to serious constraints and other extenuating circumstances experienced with construction group Basil Read.

“It is unfortunate that GAST has had to withdraw from the project, considering the large amount of financial input and hours already spent working on site by GAST.  However, with 6 months unpaid certificates with as little as R300,000 remaining of our contract, our client, Basil Read, has subsequently drawn our R8.2 million Performance Bond, which left us with no alternative but to walk away. Despite this, we feel confident that our losses and damages can be recovered through the judicial system. We remain proud to have been involved with the Medupi Power Station project, providing some of the highest quality work and logistical success ever seen in the Geosynthetics industry in Africa,” concludes Mrs. Jean Gonsalves spokesperson for GAST.

GAST continues to work with Eskom on various other projects, such as the Kusile and Hendrina Power Stations and is committed to continue providing the renowned dedication to excellent service and high quality products that the company is known for.

Editors Notes:

Gast:

GAST provides a complete spectrum of services from design and supply to installation in both the civil and construction industries. The Group’s philosophy is based on the principle of single point responsibility.

Having successfully completed more than 12 000 projects during the last millennium, GAST boast accreditation from United Nations and World Bank, giving credit to GAST’s quality and performance on all dynamics.

The Medupi Power Station

Formerly known as Project Alpha, the Medupi Power Station is a new dry-cooled coal fired power station which is being built by Eskom near Lephalale in Limpopo province, South Africa. When completed, the power station will have six boilers each powering an 800 MW turbine, producing 4 800 MW of power and will the largest dry-cooled coal fired power station in the world.

Released by:
Madelain Roscher
PR Worx
011 896 1818 / 083 468 6819
madelain@prworx.co.za

On behalf of:
Mrs. Jean Gonsalves
The GAST Group

Author: Press Release

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