South Africa

South Africa: Mineral Resources and Energy On Appointment of Additional Preferred Bidder Under the Renewable Energy Independent Power Producer Procurement Programme Bid Window 6

2 years ago
BusinessL

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Renewable Energy IPPP programme (REIPPPP) bid window 6: Appointment of Additional Preferred Bidder

The Department of Mineral Resources and Energy (DMRE) has noted with concern the continued inaccurate reporting by on-line platform Green Building Africa in relation to the appointment of an additional Preferred Bidder under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 6.

In an article published on 3 April 2023, the author Mr Bryan Groenendaal makes an incorrect reference that the Minister of Mineral Resources and Energy quietly appointed an additional Preferred Bidder under this last REIPPPP Bid Window, insinuating that this appointment is not above board.

The Department wishes to correct sensationalised reporting by Mr Groenendaal in this regard. In fact, the Director General appointed the 6th Preferred Bidder, the Ngonyama Solar PV project on 23rd March 2023, and confirmation of this appointment was published on all platforms as required in the PFMA procurement regulations. The Minister and Ministry is not involved in any decisions regarding the appointment of Preferred Bidders.

The appointment was confirmed after the Minister initially announced 5 Preferred Bidders on 8 December 2023, amounting to 860 MW. The Minister informed the public at that time that an eligible 6th bidder had been identified, and that the Department was in discussion with the potential bidder on conditions for appointment in order to fill the remaining gap up to 1000MW Solar PV capacity, as required by the Request for Proposal (RFP). Following further evaluation of the supplementary information provided by the potential bidder, the IPP Office and Department’s Bid Adjudication Committee recommended to the Director General the appointment of the Ngonyama Solar PV Project as the 6th Preferred Bidder under this bid window, which increased the procured MW to the maximum 1000MW Solar PV. The evaluation was conducted by the same Independent Evaluation Committee that recommended the initial 5 Preferred Bidders, and was therefore entirely within the prescripts of both the RFP and the public procurement legislation.

The Department continues to assure the public that the IPP procurement process is concluded independently and strictly in line with the Constitutional principles applicable to public procurement, being Fairness, Equitability, Transparency, Competitiveness and Cost-Effectiveness, and that no individual in either the Ministry or the Department has any role in the evaluation of bids.