Finance and Economic Opportunities

1. [a] What were the terms of reference for the appointment of these service providers

Refer to Annex A - MER Strategic Advisory Support TOR and Annex B - MER Project Development Services TOR

[b] what was the project scope

 Refer to Section 3 ‘Nature and Scope of Services’ to be rendered in Annexures A and B

[c] can copies of the relevant documentation be provided

As above

2. whether the service providers have been appointed; if so, [a] what are the names of the companies, [b] what is the contract value and [c] what progress with the work has been made by these service providers to date

Yes, the service providers have been appointed.

MER: Project Development Services:

Service Provider: J Maynard South Africa [PTY] LTD

Contract Value: R9 437 212.52

Progress:

Submitted defined, structured and finalised business cases by project component [i.e. covering each of utility scale energy [>10MW], distributed energy [1-10MW], small scale embedded generation [SSEG] and large scale battery storage] The business cases explored multiple technologies, scales, risks, legal requirements, costs, and financial mechanisms amongst others. The business case report also provided guidance on how all these measures would be structured to undertake pre-feasibility assessments on potential pioneering projects to enable the selection of pioneering projects to be implemented in the candidate municipalities. An in-depth document that will further guide the legislative and regulatory aspects of the MER initiative was also drafted.

MER: Strategic Advisory Services:

Service Provider: Vally Padayachee & Associates [PTY] LTD

Contract Value: R18 423 000.00

Progress:

• Monthly strategic consulting services report [incl stakeholder meetings, advisory opinions, advice, guidance etc incl energy legislation and regulations]
• Draft review report on business case development
• Progress report on project development and project management
• Initial report detailing transaction and procurement mechanisms suitable for different scales and types of projects

3. [a][i] how much was the budget

Total budget available was: R20,000,000 [FY2020/21] and R20,000,000 [FY 2021/22]:

Cost estimates were:

Project Development Services: R13 200 000

Strategic Advisory Services: R17 600 000

[ii] from which programmes were the funds to cover the costs of these contracts drawn

The funds were held in and managed by DEDAT: Programme 5: Economic Planning, but the funding was earmarked funding.

 [b] how much has been paid out to date

Project Development Services: R4 716 266

Strategic Advisory Services: R2 162 200

4. [a] what are the details of the [i] name or names and [ii] designations of the Bid Specification Committee [BSC]

MER Strategic Advisory Support BSC:

• Ajay Trikam – Director: Energy [Chair]
• Helen Davies - Chief Director: Green Economy
• Heini Nel – Deputy Director: Energy
• Alexei Allie – Deputy Director: Strategic Initiatives
• Lee-Ann Benjamin – Procurement Practitioner
• Nomphelo Mayongo – Procurement Clerk

MER Project Development Services BSC:

• Ajay Trikam – Director: Energy [Chair]
• Helen Davies - Chief Director: Green Economy
• Heini Nel– Deputy Director: Energy
• Fernel Abrahams – Deputy Director: Catalytic Infrastructure
• Lee-Ann Benjamin – Procurement Practitioner
• Nomphelo Mayongo – Procurement Clerk

[b] what are the details of the bid specifications for this bid

Bid specifications are provided in the project TORs: see Annexure A and Annexure B referred to in questions 4[1][a]

5. [a] what are the details of the [i] name or names and [ii] designations of the Bid Evaluation Committee [BEC]

MER Strategic Advisory Support BEC:

• Ajay Trikam – Director: Energy [Chair]
• Olivia Dyers – Director: Digital Economy
• Heini Nel – Deputy Director: Energy
• Leila Mahomed Weideman - Director: Sustainable Energy Markets [City of Cape Town]
• Mark Sullivan – Procurement Practitioner

MER Project Development Services BEC:

• Ajay Trikam – Director: Energy [Chair]
• Heini Nel – Deputy Director: Energy
• Shane Marcelo Prins – Manager: Sustainable Energy Markets [City of Cape Town]
• Lee-Ann Benjamin – Procurement Practitioner
• Mark Sullivan – Procurement Practitioner
• Nomanda Zabaya – SCM Compliance
• Zimkhita Matshebelele – SCM Compliance
• Siyavuya P Maputi – SCM Compliance

[b] what are the details of the report and recommendation of the BEC for this tender to the Bid Adjudication Committee [BAC] and [c] can a detailed list of those that tendered versus those that were finally shortlisted or recommended be provided

MER Strategic Advisory Support Project
Nr	Service Providers	Status of Tender
1	Africa International Advisors	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet
2	J Maynard [South Africa] [Pty] Ltd	Bidder’s total points scored was below that of the recommended bidder
3	SAIYL	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet
4	Tishbi Energy [Pty] Ltd	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet
5	Vally Padayachee and Associates [Pty] Ltd	Recommended as successful bidder
6	Price Waterhouse Coopers	Bidder deemed non-responsive because a WCBD 4 was not submitted for each of the companies forming the consortium

 

MER Project Development Services
Nr	Service Providers	Status of Bid
1	Top Quartile [Project Services Africa]	Bidder deemed non-responsive because signature page of WCBD 6.1 was not submitted
2	J Maynard [South Africa] [Pty] Ltd	Recommended as successful bidder
3	TOMA Tomorrow Matters Now [Pty] Ltd	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet
4	Africa International Advisors	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet
5	Promethium Carbon [Pty] Ltd	The bidder failed to meet the minimum functionality threshold of 70% as per criterion in the functionality award sheet

 

6. [a][i] what are the details of the [ii] name or names of the members of the BAC

• Rashid Toefy: Chairperson
• Ilse Van Schalkwyk: Deputy Chairperson
• Mymoena Abrahams
• Joshua Wolmarens
• Nezaam Joseph

[b] what are the details of the final adjudication report for this bid, including the score sheets of those that were recommended for the award

Refer to the attached adjudication sheets.

MER: Strategic Advisory Services: Recommended that the contract be awarded to Vally Padayachee and Associates [Pty] Ltd

MER Project Development Services: Recommended that the contract be awarded to J Maynard [South Africa] [Pty] Ltd

7. whether there was any deviation that had to be applied for in the case of this tender

No deviation needed to be applied for in the case of either the MER: Strategic Advisory Services or the MER Project Development Services tenders.

1. what are the relevant details and [b] what was the deviation approved by the Accounting Officer

Not applicable

8. [a] how were the seven municipalities announced in the budget speech selected for the MER

Please refer to the reply to PQ1 of QP 7 of 2021

9. whether these municipalities qualify as “municipalities in good financial health” in accordance with the Minister’s previous public statements; if so, [a] what are the details of that qualification

The overall financial standing/credit rating of each municipality was assessed in terms of: Auditor General audit outcome, cash balance, cash coverage, spend of capital budget, liquidity ratio, current debtors' collection rate and income.

[b] what is the status of each of these selected municipalities on each element of such a qualification?

(see attachment)