Clarification Meeting for GEN3277 (Supply of coal to Kusile Power Station) 18 May 2017
Agenda No. Topic 1 Welcome 2 Evacuation Procedure 3 Important dates 4 Mandatory Commercial Returnables for Evaluation of RFP 5 Commercial Returnables - From Shortlisted Respondents 6 Scope of Work 7 Mandatory Technical Returnables for Evaluation of RFP 8 Functionality Criteria for Technical Scoring Technical Returnables – From Shortlisted Respondents 9 SD&L Returnables – From Shortlisted Respondents 10 Environmental Returnables – From Shortlisted Respondents 11 SHEQ Returnables – From Shortlisted Respondents 12 13 Questions 2
Important Dates Closing date and time for RFP GEN3277: 30 June 2017 at 10h00 (South African Standard Time) Tender Advice Centre Opposite Main Reception (NOT Retail Centre as per RFP document) Megawatt Park Clarification on enquiry documents Five (05) working days before the deadline for tender submission – 23 June 2017 3
Commercial Requirements
Commercial Mandatory Returnables – For Evaluation of Submitted RFP Description Annexure Acknowledgement form Annexure A Tenderer’s particulars Annexure B Integrity Declaration Form Annexure C CPA Requirements for Local Goods and Services (South African) Annexure D Addenda acknowledgement form Annexure E Status of Tenderer – Mining Right Holder or Value Adder Annexure J Cover sheet for RFP GEN3277 Annexure K Annexure L Price Schedule Additional Documents required in event of JV: • Valid joint venture agreement • Written confirmation that the joint venture will operate as a single business entity for the duration of the contract • A valid *B-BBEE Verification Certificate Valid Offtake Agreement(s) if the tenderer is a Value Adding Supplier *B-BBEE Certificates /Preference points claim form Life Saving Rules Acknowledgement Form Annexure H * N ot mandatory at tender returnable stage, and will not result in disqualification but will impact the scoring, and a zero will be allocated, if not submitted by tender deadline
Commercial Returnables – From Shortlisted Respondents Description Annexure Joint Ventures - Details and confirmation of a single designated bank account in the name of the JV Acknowledgement form SHE Rules and other Requirements Annexure I Tax Clearance certificate Compliance with Employment Equity Act Audited Financial Statements of the tenderer for the previous two financial years Shareholding organogram /breakdown (for each individual company/JV member) 6
Technical Requirements
Scope of Work Up to 17 Million tons per year Quantities Period of approximately 60 years Coal Qualities Specification: Power Station Coal Quality Parameter Unit Basis Acceptable Specification ≤8.0 Total Moisture % As Received 7 Inherent Moisture % As Received 3.1 N/A ≤36.0 Ash % Air Dried 34.2 ≥18.1 Calorific Value MJ/kg Air Dried 18.8 ≥18.5 Volatiles % Air Dried 19.4 ≤1.1 Sulphur % Air Dried <1.1 ≤450 Abrasive Index mg Fe/4kg As Received <450 o C ≥1230 AFT (Ash fusion temp-initial def.) As Received >1230 Sizing: +60mm % <0 0 ≤5 +50mm % <5 As Received ≤25 -3mm (cumulative) % <25 ≤15 -1mm % <15
Technical Mandatory Returnables 9
Functionality Criteria for Technical Scoring – Threshold is 60% FUNCTIONALITY CRITERIA FOR TECHNICAL SCORING Tenderers who do not meet the threshold for technical scoring will be disqualified. Criteria that will be used to score each tender: Weight KPA 1: Returnables 10% KPA 2: CPR/Completed Technical Report information 40% KPA 3: Process flow 50% Threshold 60% KPA 1: RETURNABLES • Presentations will not be considered as Competent Persons Report (CPR)/ Technical Report 10
Functionality Criteria for Technical Scoring – Threshold is 60% KPA 2: COMPETENT PERSONS REPORT (CPR) / COMPLETED TECHNICAL REPORT INFORMATION • If the complete CPR/ Technical Report are not updated (before 30th January 2015) for operational mines an addendum must accompany the complete CPR / Technical Report with new tons and coal qualities and reason must be given for the adjustment. This need to be signed off by the competent person. (See Annexure Q). • For greenfield and brown field projects, if no additional work was done since the report was compiled; please state so in an addendum to the report. If this is the case, the information in the Technical report / CPR will be used in the evaluation. If additional work was done and affects the tonnage and qualities in the report, please add addendum with the new figures. This will have to be signed off by a competent person. (See Annexure Q). • If the tonnage does not make sense, GTIS to TTIS to MTIS to ROM to Sales Tons and for e.g. ROM is more than GTIS, this will be clarified with the respondent and if still does not make sense, the evaluation team will use their own discretion in the evaluation. 11
Functionality Criteria for Technical Scoring – Threshold is 60% KPA 3: PROCESS FLOW • The process flow must show the ROM qualities and tons for each seam, processing qualities and tons and the final Eskom quality and tons (Annexure T is an example of the process flow diagram). This will be validated against Eskom coal requirement. If qualities and tons are not given for each stage of the process, the respondent will score 0%. 12
Technical Mandatory Returnables – For Evaluation of Submitted RFP 13
Technical Mandatory Returnables – For Evaluation of Submitted RFP 14
Technical Mandatory Returnables – For Evaluation of Submitted RFP 15
Technical Mandatory Returnables – For Evaluation of Submitted RFP (4/4) Description Coal Process Flow Diagram showing the tonnage and qualities for each stage of the process to arrive at the Eskom product EXAMPLE OF A COAL PROCESS FLOW FOR THE TOTAL RESERVE/ RESOURCES ROM FOR TOTAL RESERVE / RESOURCES Screened undersize( ad) Mine 1 - 4 seam Mine 1 2 3 Total Mt 20 22% % 60% 60% 60% 60% Ash 33.0 Mt 12 24 18 54 1 CV 18.0 Ash 28.0 29.5 27.4 28.5 Vol 21.0 CV 18.7 21.7 22.1 21.1 S 1.0 Vol 21.0 22.0 22.0 21.8 S 1.0 0.8 1.2 1.0 4 Mine 2- 2 seam Precertified stock 12kt Mt 40 Manual sampling 2 kton silo Ash 30.0 44% Screen -32mm Product conveyor CV 21.0 X X Vol 22.0 +32mm 2 Hourly sampling X 2 Hourly sampling S 0.8 Crusher Feed to Wash (DMS) ad (Roller) Mine 2- 4 seam Mine 1 2 3 Total Mt 30 % 40% 40% 40% 40% 3 Ash 28.0 33% Mt 8 16 12 36 CV 22.0 Ash% 33.0 31.0 29.0 30.8 Product DMS Vol 22.0 CV 17.0 20.0 21.9 20.0 Mine Total S 1.2 Vol 21.0 22.0 21.8 21.7 % 84% S 1.0 0.8 1.2 1.0 Mt 76 TOTAL ROM Product from Washing (ad) Ash% 25.7 Mt 90 100% Mine 1 2 1 Total CV 22.5 Ash 30.0 % 60% 60% 60% 60% TM% 9.0 CV 20.7 Mt 5 10 7 22 IM 2.3 Vol 21.8 Ash% 18.4 19.5 18.4 18.9 Vol 21.8 S 1.0 CV 27.0 25.5 26.0 26.0 AFT 1383 Vol 21.0 22.0 21.8 21.7 S 0.9 NOTE S 0.8 0.8 1.0 0.9 AI 300 Tonnage on As received Basis S - Sulphur (%) +60mm 0 ` Qualities on Air dried basis Ash -% +50mm 2 0-3.0mm CV - Calorific Value (MJ/Kg) Mt - Million Tons 20 (cum) Vol - Volatile content (%) ROM - Run of Mine 0-1mm 5 16
Technical Report/ CPR Guideline NOTE: Critical information for scoring o Seams present /Stratigraphy o Coal reserves /resources and qualities with related cut-off parameters / discount factors. 17
Technical Returnables – From Shortlisted Respondents (1/3) To be complete for each reserve category i.e. Data for each seam to to supplied individually Measured, Indicated, Inferred, Resources. GTIS - Gross tons in-situ TTIS - Total tons insitu Supplier to sign off each category MTIS - Mineable tons insitu 18 ROM - Run of Mine
Technical Returnables – From Shortlisted Respondents (1/3 cont) Reserve/ Category COAL QUALITY(air dried basis) Resource GTIS TTIS MTIS ROM (uncontaminated) ROM(contaminated) SALES IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S Probable Seam Seam Seam Proved Reserves Seam Seam Seam Total Measured Seam Seam Seam Total Indicated Seam Resources Seam Seam Total Inferred Seam Seam Seam Total Grand Total To be complete for each reserve category i.e. Data for each seam to to supplied individually Measured, Indicated, Inferred, Resources. GTIS - Gross tons in-situ TTIS - Total tons insitu Supplier to sign off each category MTIS - Mineable tons insitu 19 ROM - Run of Mine
Technical Returnables – From Shortlisted Respondents (2/3) 20
Technical Returnables – From Shortlisted Respondents (3/3) Description Annexure Mine Plan and Schedule o First 24 months on a monthly basis o Thereafter annually for the duration of supply Description Annexure Bulk sample for combustion test where applicable to determine Power Station suitability o Minimum bulk sample of 3 tons o Collection of sample to be arranged between shortlisted respondent and Eskom 21
Supplier Development & Localisation Requirements
SD&L Returnables – From Shortlisted Respondents Description Annexure SD&L matrix/requirements as per proposal Annexure M 30% of spend will have to be subcontracted to black designated groups a requirement in terms of the PPPFA. 23
Environmental Requirements
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