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Eskom South Africa Power Plant Delayed to 2014 as Costs Rise

Eskom Holdings SOC Ltd., the South African power producer seeking to boost capacity 25 percent, said its Medupi plant will be delayed to 2014 as contractors’ “underperformance” and labor disruptions drive up costs.

“The delay is expected to increase the cost to completion of Medupi, but some of this must be recouped from contractors,” Eskom Chief Executive Officer Brian Dames told reporters today at the Johannesburg-based company’s headquarters. Eskom is considering supply options as it faces a gap of about 700 megawatts next year, he said.