Kusile Power Station Project Enquiry clarification meeting Kusile Power Station Project Provision of two (02) independent environmental control officers to Kusile Power Station Project. MPPSC001014(R) Enquiry clarification meeting 13 April 2015

Agenda NO`2DCAGENDA ITEMRESPONSIBLE PERSONTIME 1WELCOME AND ATTENDANCE REGISTERBongumusa Shabalala2 MIN08:30 – 08:32 2EVACUATION PROCEDUREMushayi Mudzielwana5 MIN 08:32 – 08:37 3ATTENDANCE REGISTERBongumusa Shabalala3 MIN08:37 – 08:40 4COMMERCIAL/ LEGAL PRESENTATIONBongumusa Shabalala20 MIN08:40 – 09:00 5TECHNICAL REQUIREMENTS PRESENTATIONMushayi Mudzielwana20 MIN09:00– 09H20 6SHEMushayi Mudzielwana20 MIN09:20 – 09:40 7QUALITYRajesh5min09:40 – 09:45 8OPEN DISCUSSIONAll2min09:45 – 09:47 2

Structure of Enquiry 1.Invitation to TenderInvitation to Tender 2. NEC3 TSC Contract Data Part 1 & 2NEC3 TSC Contract Data Part 1 & 2 3.Works Information(Part of the Contract Data) 4.SHE & Quality 5.Bill of quantitiesBill of quantities 3

Enquiry: MPPSC001014(R) The tender shall be submitted as an original hard copy, plus 1 copy and 1 soft copy as follows: Two (2) envelope system will be used File 1 – Commercial and financial returnables (Original hard copy + 1 copy & 1 soft copy) File 2 – Technical returnables (Original hard copy + 1 copies & 1 soft copy) 4

Evaluation criteria Evaluation Method Mandatory Requirements None. A 4 step evaluation will be conducted (e.g. 1. Functionality, 2. Local Production and Content, 3. Financial Analysis & 4. Price & preference 90/10) 5

Evaluation criteria Basic compliance Tender reviewed for compliance to all submission requirements Step 1 – Functionality A weighted score-card approach is used to evaluate the functionality compliance of the tenders against the specifications. Tenders need to have a weighted score of 70% or more for functionality to qualify for further evaluation. The functionality weighting will include technical, safety, health and environment (SHE) and quality. Tenders which do not meet Eskom’s technical requirements will not be evaluated further. (Refer to the evaluation score sheets attached on the enquiry) 6 Technical Functionality Criteria Maximum number of points percentage Tenderers will be expected to score at least the minimum threshold per functional area to proceed to the next phase Technical 100%70% Safety and Health & Environment 20% Quality 10%

Evaluation criteria Step 2 – Local Production and Content Local content (not a designated sector) 7 CriteriaTarget (%)Proposed Target (%) Local content to South Africa100%

Evaluation criteria Skills Development (not a weighted criterion) Not applicable 8

Evaluation criteria Step 3 – Financial Analysis An analysis of the tenderers financial statements will be conducted for the purposes of establishing the tenderers financial viability and ability to meet all of its contractual obligations for the duration of the contract, should the tenderer be awarded the contract. Where applicable a financial evaluation will be conducted by Eskom to further evaluate the financial viability of the tenderer. (incl. formal treasury evaluation) Financial analysis will be conducted on all responsive and compliant tenders prior to the price and preference scoring Eliminate tenders that do not meet Eskom’s financial requirements 9

Evaluation criteria Step 4 – Price and Preference Price Evaluation (90 points) 10 Adjudication CriteriaPoints Price Evaluation Ps = 90 (1 – Pt – Pmin ) Pmin 90 B-BBEE Evaluation (10 points) Tenders which don’t submit and/or submit an invalid B-BBEE certificate will score zero on B-BBEE Add price points and preference points Select tender with highest points (Price Points + Preference Points)

Commercial Evaluation Commercial evaluation criteria do not carry a weighting in the tender evaluation however it evaluates compliance to the following: Submission of tender returnables (Check for completeness) and an assessment by Eskom that it is satisfied that the tender meets the criteria for responsiveness. Acceptance of Term Services Contract (NEC3) (Assess deviation risks - qualifications must be acceptable to Eskom). Any statutory requirement not adequately provided for at tender stage must be adhered to prior to contract award e.g. valid South African Revenue Services (SARS) certificate. 11

Commercial Returnables Declaration of Authority Completed Declaration of Fair Tendering Practices Confirmation of Receipt of Addenda to Tender Documents Contract Conditions Qualification Schedule Confirmation of Vendor Registration with Eskom Valid IRP 30 SARS Certificate SARS Tax Clearance Certificate (IRP20) 12

Commercial Returnables (Continued) Certified Copy of the VAT Registration Certificate (VAT 103) if the tenderer qualifies as a VAT vendor. Proof of compliance with the Employment Equity Act, including proof of submission of the Employment Equity report to the Department of Labour. Original certificate of good standing or proof of application issued by the Compensation Fund (COID) or a licensed compensation insurer. B-BBEE (Broad-Based Black Economic Empowerment) certificate by an accredited Verification Agency. Audited Financial Statements of the tenderer for the previous two (2) financial years, or to the extent that such statements are not available, for the last year. Certified copy of ISO 9001:2000 accreditation certificate, or proof of compliance If two or more tenderers form a joint venture, consortium or other unincorporated grouping of two or more persons (“joint venture”), a copy of the joint venture agreement entered into between the partners List of directors/ shareholders and percentage ownership 13

Communication During Tender Period Contact Person: Bongumusa Shabalala Tel:+27 (0) Address: Web Details: tender bulletin, what’s out to tender. Eskom tender bulletins, general search, Searchwww.eskom.co.za- Enquiry closing date: 23 April 2015 at 10:00 sharp Closing date for clarifications is 5 days before the tender close (16 April 2015) No late tenders will be accepted For more information and any clarifications will be posted on this website 14

TENDER BOX ADDRESS 24 HOUR TENDER BOX, Eskom Tender Box, Ground Floor No; 10 smuts Avenue Witbank/ Emahlaleni Mpumalanga Map link &scr_z=0&lon= &label=10+Smuts+Avenue%2C+Witbank%2C+South+Africa&ad dress=10+Smuts+Avenue&city=Witbank&region=Mpumalanga&country=South+Africa&z=0 Latitude: S Longitude: E NB: NO LATE TENDERS WILL BE ACCEPTED 15

Questions? 16

PROCUREMENT QUALITY ASSURANCE TENDER CLARIFICATION PRESENTATION SERVICES ESKOM CONTRACT QUALITY REQUIREMENTS STANDARD QM58 Presenter: Rajesh

Eskom Contract Quality Requirements Eskom Contract Quality Requirements Standard QM58 All suppliers shall adhere to the requirements as set out in the Eskom Contract Quality Requirements Standard QM58. These requirements include, but are not limited to the following:- 1. Quality Management System Requirements (Ref: Eskom Standard QM58, Section 3.1) The contractor shall implement and maintain a Quality Management System which, as a minimum, meets the requirements of ISO 9001:2008 Quality Management System Requirements. Compliance to ISO requirements shall be verified by a full quality compliance assessment performed by Eskom prior to award of contract. Note: Eskom shall specify within the scope the applicable areas of ISO 9001 and the application of this standard in the enquiry/contract/order quality requirements forms (Annexure A and B). 2016/06/3018

2. Quality Documents to be submitted with the Tender (Ref: Eskom Standard QM58, Section 3.2) Signed enquiry/contract/order quality requirements forms (A&B) A CV of the consultant’s quality management representative One provisional copy of the contract quality plan (including a signed quality policy) ISO certificate or objective evidence of an ISO compliant quality management system. Latest structure/organogram of the quality function/department, resources, and number of employees employed in the quality department, including an abridged indication of qualifications (the quality structure to show who the quality departmental leader reports to within the tenderer’s organisation) 2016/06/3019 Eskom Contract Quality Requirements (cont.)

Historical information on similar work performed recently ( within the last two years): o Sample contract quality plan (including a quality control plan) from a similar project executed by the tenderer less than two years ago (the quality control plan is sometimes referred to as the inspection and test plan or quality inspection plan) o Sample report reflecting quality performance and measures (report to reflect statistics of at least six months) o Sample of non-conformance report o Sample of Corrective and Preventive Action reports Management of suppliers / sub-contractors to the tenderer o A copy of the process/procedure regarding the assessment, selection, management and auditing of sub-contractors/suppliers o Copy of supplier/subcontractor assessment and audit reports. Eskom reserve the right to contact some of the contractor’s current and former customers, to evaluate the contractor’s quality systems, capability, capacity, client satisfaction and other related aspects. Note!!! Access to the contractors and sub-contractor’s premises and facilities. Eskom or its inspection authority/agency, where appropriate, shall be afforded access to the contractor’s and sub-contractor’s premises and facilities at reasonable times to conduct quality audits, surveillance or inspections to verify compliance with the contract/order. 2016/06/3020 Eskom Contract Quality Requirements (cont.)

2016/06/3021 Eskom or its inspection authority/agency, where appropriate, shall be afforded access to the consultant’s and sub-contractor’s premises and facilities at reasonable times to conduct quality audits, surveillance or inspections to verify compliance with the contract/order. Access to the Consultant’s premises and facilities

Questions 22

Thank you