Stefanutti Stocks’ R1.6bn claim against Eskom expected to be resolved in Q3

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The group is also involved in a dispute with Eskom related to another Kusile Power Station project, Package 28.

Crawford said the group has short-term potential awards to the value of R7 billion and future opportunities of R98 billion.Stefanutti Stocks expects a binding, final decision on its R1.614 billion claim against Eskom related to a Kusile building project to be published by the Dispute Adjudication Board during the third quarter of 2024.

“The quantum experts and DAB are continuing to meet on various matters related to quantum principles and good progress has been made,” he said.Some backgroundBasil Read, which is in business rescue, sold its 50% stake in the JV effective from 1 September 2017. In regard to the measurement of work done on the project, he said the only items remaining to be concluded in the final measure are:A large variation related to transport, which remains unresolved between Stefanutti Stocks and Eskom, and will either be agreed upon or referred to the DAB as a separate dispute.

Crawford said there is an element of overlap between certain Claim 5 events, the effects of which have an impact on the critical path with respect to Claim 6’s period.Another dispute Stefanutti Stocks is still involved in litigation related to its successful arbitration award announced in November 2022 related to the Kalabo-Sikongo-Angola border gate road in the Western Province of Zambia.The group formed an equal JV with Consolidated Contractors Company from Kuwait in December 2016 for this public road project, but the JV terminated the contract in August 2019 due to the client’s failure to pay the interim payment certificates.

Crawford said Stefanutti Stocks and its JV partner successfully filed a summons opposing the stay of further proceedings and have commenced discussions with the client with respect to a settlement.His comments were made following the release of Stefanutti Stocks’s financial results for the year to end-February 2024.Contract revenue rose 17% to R7.1 billion from R6.1 billion.Operating profit from continuing operations increased by 107% to R210 million from R101 million.

 

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