PRE-BID MEETING CONSTRUCTION OF THE MEDUPI-BORUTHO TRANSMISSION LINE PRE-BID MEETING WORLD BANK GUIDELINES Presented by: Brendah Shange

2016/06/132 Funding Eskom has received a loan from the International Bank for Reconstruction and Development (IBRD) towards the cost of the Construction of the following 400kV Transmission Lines which forms part of the Medupi Power Station Integration Scheme, Phase 2: Package 2:  Medupi-Borutho (Section A and B) 400kV Transmission Lines.

2016/06/133 Objectives of International Bidding To provide : all eligible prospective bidders with timely and adequate notification of Eskom’s requirements Equal opportunity to all eligible bidders Achieve Economic efficiency in the implementation of the projects Transparency in the procurement process ( advertise requirements, publish results & award) Encouraging competition

2016/06/134 Who is Eligible Eligible Bidders: √ Bidders who are a single company and JV’s. √ Only one bid per bidder √ May not be partner in more than one JV √ Can be sub-contractor to more than one Bidder √ Has no conflict of interest with Eskom and the project.

Who is not Eligible? Ineligible bidders : Government-owned enterprises in RSA, may participate only if they can establish that they (i) are legally and financially independent, (ii) operate under commercial law, and (iii) are not agencies of Eskom or its Subsidiary. A firm sanctioned by the Bank in accordance with the World Bank Group Anti- Corruption policies and sanction procedures A country prohibited to have commercial relations with RSA as a matter of law or regulation A firm which has been engaged by Eskom to provide consulting services for the preparation or implementation of this project, and any of its affiliates, shall be disqualified HOWEVER!!! This provision does not apply to the various firms (consultants, contractors, or suppliers) which together are performing the contractor's obligations under a turnkey or design and build contract. 2016/06/135

6 General Information – Differences  World Bank’s (WB) guidelines, procedures and documentation will be applicable  Language: WB: Instruction to Bidders Eskom: Tender Conditions WB: Bid Data SheetEskom: Tender Data WB: Harmonised FIDIC Eskom: FIDIC and NEC WB: Bidders, BidEskom: Tenderers, tenders, Lowest evaluated bid – Price adjustment. completeness, responsiveness, minor/major deviations, disqualification (no scorin Evaluate on BBBEE and Price (90/10 of 80/20) PPPFA principles ( RSA)

2016/06/137 Important Conditions  Contract condition or this contract: Procurement of Plant Design, Supply & Installation (Harmonised FIDIC)  Bid security.The Bidder shall furnish as part of its bid, either a Bid-Security/ Declaration The bid security shall be valid for twenty-eight days (28) beyond the original validity period of the bid, or beyond any period of extension if requested any bid not accompanied by a substantially responsive bid security or Bid-Securing Declaration shall be rejected by the Employer as non responsive.  SD&L PARTICIPATION is OPTIONAL but bidders are encouraged to participate will not be used in the evaluation( No disqualification of non participants) will not be a condition of contract award. What’s in it for you? Financial Benefit

2016/06/138 Important Conditions  NO Negotiations allowed- but clarifications is permitted during bidding stage  NO Alternative Bids permitted  WB’s Debarment List: contractors and sub-contractors (please check before approaching them). WB’s website:

2016/06/139 Important – Fraud and Corruption Clause (F&C)  Whenever Eskom makes use of Funding from the WB, the provision of the F&C clause WILL apply. Clause 42  “If the Employer determines that the Contractor and/or any of its personnel, or its agents, or its Subcontractors, subconsultants, services providers, suppliers or their employees has engaged in corrupt, fraudulent, collusive coercive, or obstructive practices, in competing for or in executing the Contract, then the Employer may, after giving 14 days notice to the Contractor, terminate the Contractor's employment & expel him from the Site”,  will reject a proposal for award if the bidder recommended has engaged in any of the practices  will cancel the portion of the loan allocated to a contract if at any time that of Employers representatives have engaged in any of the practices during the procurement or the execution of that contract, Eskom will have to take appropriate action, satisfactory to the Bank to address such practices when they occur;

2016/06/1310 F&C….  The Bank will sanction a firm or individual, at any time, in accordance with the sanctions procedures, including by publicly declaring such firm or individual ineligible, either indefinitely or for a stated period of time: (i) to be awarded a Bank-financed contract; and (ii) to be a nominated as a sub-contractor, consultant, manufacturer or supplier, or service provider FINALLY  The Bank has the right to (a) Inspect the Project Site, accounts and records of the Contractor and his Subcontractor(s) (b) to have such accounts/records audited by auditors appointed by the Bank.”.

2016/06/1311 HELP!!!  Contact point is the BUYER (identified in the Bidding document)  General WB for general issues.WB  Specific address in the documents for bid  Website of the World Bank

Thank you