Request for proposal for the renewable energy Independent Power Producers procurement programme

South African Government Information 29 OCtober 2012.

Minister, Ms Dipuo Peters
Acting Director-General, Mr George Mnguni
Deputy Directors-General, Mr Ompi Aphane and Dr Barnard Wolsey
Acting CEO of the GCIS, Ms Phumla Williams
Members of the media
Ladies and gentlemen
Programme Director

Good afternoon everyone.

As we have all heard from the Minister’s announcement, the bidders have made commitments which with an investment potential of R47 million. This is indeed a great day for all South Africans because based on our requirements for Community Trusts to be set up in all areas of operations by all bidders their investments will uplift at least one community within a 50km radius of each project.

It goes without saying that this investment will bring sorely needed improvements to the conditions of those in need especially rural communities, and women and children who bear the largest share of the of the poverty that burdens so many in our country.

Most of these deep rural communities are in desperate need of help in order to
overcome the consequences of their undeveloped areas. Thus, the department looks
forward to the realisation of the benefits to be reaped by these communities through the commencement of the Independent Power Producers (IPP) projects across the country. Financial Close comes at a time when concerns over the economy are great as stated in last week’s mid-term budget statement delivered by Minister Gordhan, alongside by the labour strife at the mines – where the work force comes from some of the most economically deprived areas of our country.

The potential of the IPPs to stimulate local economic development is to be lauded by all. So allow me to echo the Ministers heartfelt request for bidders to be true to the commitments made in the agreements signed with government. May I also say
bidders should not just limit themselves to the least requirements as stated in the
Implementation Agreements – why not do more if you can?

I hope that subsequent bidding rounds will continue to emphasise the role of the community upliftment programme, and that bidders will commit above the minimum requirement as provided for in the Request for Proposals. It is my view that this programme will play a significant role in development of opportunities for both women and the youth – especially in rural areas. I would like to congratulate all the preferred bidders who will be signing their agreements with the department on 5 November 2012, and repeat, do honour your obligations as stated in the agreements and avoid the penalties that Minister Peters spoke of.

I thank you all for joining us at this special occasion and I invite you to join us on 5 November to witness the signing of the renewable energy contracts for Window 1. In addition to the Window 1 preferred bidders, we are also inviting the lenders who are making it possible for our bidders to finance their projects.

I thank you – ngibonga kakhulu ukuba khona kwenu namhlanje! I wish you well as you finalise all your arrangements relating to the signing of the contracts on 5 November 2012!

Issued by: Department of Energy
29 Oct 2012

 

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