CLARIFICATION MEETING LONG TERM SUPPLY OF COAL DATE: 16 OCTOBER 2019 - PowerPoint PPT Presentation

CLARIFICATION MEETING LONG TERM SUPPLY OF COAL DATE: 16 OCTOBER 2019 VENUE: FRANKLIN AUDITORIUM

Agenda Time allocated Description Responsibility (minutes) 1. Emergency Evacuation Procedure 3 Safety Representative 2. Welcome, opening and apologies 3 Karabo Rakgolela 3. Introduction, Eskom Team and Agenda 10 Fulu Nematswerani 4. Commercial 20 Melody Mc Currach 5. Technical 20 Sunjay Andhee/Tony Cumming 6. Safety and Health 20 Pulane Raophala/Eric Mohlodine 7. Environmental 20 Shumani Mavhungu 8. Finance 20 Rehana Moola/Sagren Govender 9. Supplier Development, Localisation and 20 Phinda Ndabula/Martin Sabelo Industrialisation (SDL&I) Rakgomo Setshedi/Martin 10. E-auction 10 Nndwambi 11. Lessons learnt from previous RFP’s 15 Phiwa Makhoba 11. Questions and answer section 20 All participants 2 Sensitivity: Confidential

Objectives and introduction The objective of this session is to present and clarify the enquiry documents for the following RFP’s: GEN 3313 GEN 3314 Supply of an estimated 50 (fifty) Supply of an estimated 100 million tons of coal to Kriel Power (hundred) million tons of coal to Station for a period of 10 (ten) Tutuka Power Station for a period years of 20 (twenty) years GEN 3315 GEN 3316 Supply of an estimated 100 Supply of an estimated 13.6 (hundred) million tons of coal to (thirteen point six) million tons of Matla Power Station for a period of coal to Camden Power Station for 15 (fifteen) years a period of 5 (five) years 3 Sensitivity: Confidential

Eskom Representative and contact person: GEN 3313 Supply of an estimated 50 (fifty) million tons of coal to Kriel Power Station for a period of 10 (ten) years Eskom Representative: Name : Melody McCurrach E-mail : Mcurram@eskom.co.za Landline : +27 11 800 2660 Enquiry closing Date : 03 December 2019 Enquiry closing time : 10:00 am (SAST) Enquiry Price : Free of Charge All enquiries during and after the tendering process shall be directed to the above buyer as stipulated in the enquiry document GEN 3313 4 Sensitivity: Confidential

Eskom Representative and contact person: GEN 3314 Supply of an estimated 100 (hundred) million tons of coal to Tutuka Power Station for a period of 20 (twenty) years Eskom Representative: Name : Penny Shabangu E-mail : MlangeNP@eskom.co.za Landline : +27 11 800 2851 Enquiry closing Date : 26 November 2019 Enquiry closing time : 10:00 am (SAST) Enquiry Price : Free of Charge All enquiries during and after the tendering process shall be directed to the above buyer as stipulated in the enquiry document GEN 3314 5 Sensitivity: Confidential

Eskom Representative and contact person: GEN 3315 Supply of an estimated 100 (hundred) million tons of coal to Matla Power Station for a period of 15 (fifteen) years Eskom Representative: Name : Phumzile Malape E-mail : Nyalunpe@eskom.co.za Landline : +27 11 800 5395 Enquiry closing Date : 06 December 2019 Enquiry closing time : 10:00 am (SAST) Enquiry Price : Free of Charge All enquiries during and after the tendering process shall be directed to the above buyer as stipulated in the enquiry document GEN 3315 6 Sensitivity: Confidential

Eskom Representative and contact person: GEN 3316 Supply of an estimated 13.6 (thirteen point six) million tons of coal to Camden Power Station for a period of 5 (five) years Eskom Representative: Name : Fulu Nematswerani E-mail : Nematsf@eskom.co.za Landline : +27 11 800 3858 Enquiry closing Date : 29 November 2019 Enquiry closing time : 10:00 am (SAST) Enquiry Price : Free of Charge All enquiries during and after the tendering process shall be directed to the above buyer as stipulated in the enquiry document GEN 3316 7 Sensitivity: Confidential

COMMERCIAL

Conditions of tender The tender/proposal shall be submitted as follows:  one (1) complete original file;  one (1) complete hard copy of the original file; 1  An additional soft copy may be included in the submission. Hard copies take SD&L Mandate precedence over the soft copies Where a tenderer does not submit an original tender and one complete hard copy of the original tender at the tender deadline, the tenderer will be disqualified . The original and complete hard copy of the tender must be clearly divided into the following sections: • Commercial (As per Commercial Tender Returnable) • Technical (As per Technical Tender Returnable) • Finance (As per Finance Tender Returnable) • SDL&I (As per SDL&I Tender Returnable) • Safety & Health (As per Safety & Health Tender Returnable) • Environmental (As per Safety & Health Tender Returnable) Tenderers are advised to submit the tender in the above order 9 Sensitivity: Confidential

Tender Submission Address The place for delivery of the tenders is the Eskom Tender Box, situated at the following delivery address: 1 Tender Office SD&L Mandate Retail Centre Megawatt Park 1 Maxwell Drive Sunninghill Sandton 10 Sensitivity: Confidential

Tender closing dates GEN 3313 GEN 3314 3 December 2019 26 November 2019 10:00 (SAST) 10:00 am (SAST) GEN 3315 GEN 3316 6 December 2019 29 November 2019 10:00 (SAST) 10:00 am (SAST) Closing date of clarification on enquiry documents: 5 (five) working days before the deadline for tender submission) 11 Sensitivity: Confidential

Evaluation Criteria Eskom will utilise the following evaluation method in selecting preferred Service Provider(s), if so required. A responsive tender will be evaluated on the following criteria: 1. Basic Compliance 2. Commercial Evaluations 3. Functionality (Technical Evaluation) 4. Price Evaluation 5. SDL & I (Contractual Requirements) 6. Safety & Health (Contractual Requirements) 7. Environmental (Contractual Requirements) 12 Sensitivity: Confidential

Evaluation Criteria BASIC COMPLIANCE Failure to submit a complete original tender and a copy of the original tender, meet eligibility criteria and to submit mandatory tender returnables for evaluation will render the submission as “non - responsive” and will be disqualified from further evaluations. FUNCTIONALITY Criteria: Weightings Technical (Refer to the Functionality Evaluation Criteria) 100% Overall minimum threshold for qualification 60% NB: Tenderers who do not meet the above functionality threshold of 60% will not be evaluated furthervehresholof30% will not be evaluated further 13 Sensitivity: Confidential

Evaluation Criteria PRICE EVALUATION Calculate price points out of 90 (Price = Tendered or evaluated price). This evaluation will be based on item pricing; Adjudication Criteria Points    min Pt P     Ps 90 1 90   min P Where: Ps = Points scored for price of the tender Pt = Rand value of tender Pmin = Rand value of lowest acceptable tender 14 Sensitivity: Confidential

Evaluation Criteria (PPPFA, 2000, PPR, 2017) The tenderers will be evaluated in accordance to PPPFA regulation of 2017. 7 (2) where the tenderers will be allocated points as per B-BBEE scorecard below: B-BBBE Number of points 90/10 system 1 10 2 9 3 8 4 5 5 4 6 3 7 2 8 1 0 No-one compliant contributor 15 Sensitivity: Confidential

Contractual Requirements • Contractual Requirements will be applied after evaluation and will be linked to contract award • Contractual Requirements may not necessarily be linked to the allocation of points for further scoring • The following will form part of the Contractual Requirements:  Financial Analysis  Safety and Health  Environmental  SDL&I NB: The above are pre-requisites for contract award 16 Sensitivity: Confidential

Tender Returnables • TENDER/PROPOSAL must be submitted as per below:  one (1) complete original file;  one (1) complete hard copy of the original file  An additional soft copy maybe included in the submission. Hard copies take precedence over the soft copies • All MANDATORY TENDER RETURNABLES must be submitted with the tender document in order to be responsive. Please ensure that the returnables are complete before submission • Tenderers who do not submit MANDATORY TENDER RETURNABLES as at the stipulated submission deadlines will be disqualified • Tender returnables required for both mandatory tender returnables for evaluation and for contract award: 17 Sensitivity: Confidential

TECHNICAL

Functionality Criteria for Technical Scoring and Mandatory Returnables 19 Sensitivity: Confidential

Functionality Criteria for Technical Scoring – Threshold is 60% FUNCTIONALITY CRITERIA FOR TECHNICAL SCORING 1. Tenderers who do not meet the threshold of 60% for technical scoring will be disqualified. 2. The criteria for scoring is as shown in the following slides Criteria: Weight KPA 1: Returnables 5% KPA 2: CPR/Completed Technical Report information 45% KPA 3: Quality Specification Offered 50% Threshold 60% 20 Sensitivity: Confidential

Mandatory Returnables – Technical Evaluation Report / Competent Person’s Report (CPR) – Required for KPA 1 and KPA 2 Scoring  75% and above scores 5% under KPA1 – Returnables  Less than 75% scores 2.5% under KPA1 – Returnables 21