1. Renewable Energy IPP Procurement Programme: Summary of Evaluation Findings 07 December 2011 1

2. Agenda  Overview of Evaluation Process.  Overall Evaluation Recommendation.  Preferred Bidder technology allocation.  Preferred Bidder Project Name and MW allocation.  Findings of Independent Review Team. 2

3. OVERVIEW OF EVALUATION PROCESS. 3

4. Introduction The Minister has determined, in consultation with NERSA, that New Generation Capacity is required in accordance with the IRP2010. The determination provides for procurement of 3725MW across different technologies (inclusive of 100 MW Small Projects). Procurement documents were prepared and approved by the DG to procure power from the private sector. (safe for the 100 MW Small Projects) The procurement documents were released on the 03 of August and compulsory bidders conference for the first and second window, was on the 14 of September. 53 Bids were received by the 4 th of November and evaluation was conducted in a secure environment at Gallagher Convention Centre between the 4 th November and 28 th November 2011. All evaluation rooms were under 24 hours voice and visual recordings, all the records are with DoE security for future reference. DoE supply chain was represented throughout the evaluation.

5. Procurement documents Part A: General Requirements and Rules Part B: Qualification Criteria Part C: Economic Development Request for Proposals Wind PPA Solar PPA CSP PPA Power Purchase Agreement Contract between the IPP and the Department Obligation for IPP to deliver as per their commitment In buyer default – Department to pay the IPP Implementation Agreement Procurement Process Background To be concluded in Phase 1

6. Request for Proposal (RFP) Requirements Rules RFP Part A Environment Land Economic Develop Finance Technical Price Capacity RFP Part B Qualification Price Job creation Local content Ownership Management Control Preferential Procurement Enterprise Development Socio-economic development RFP Part C Comparative Evaluation Procurement Process Background

7. General Evaluation Observations Comprehensive evaluation template developed in accordance with the RFP prior to accessing the evaluation venue. Comprehensive training of all evaluators in all different disciplines the use of the template. Moderation of all evaluators work by independent evaluators. Cross moderation in respect of finance.

8. Evaluation team: International reviewers Legal review – Linklaters (UK) Technical review – Tony Wheeler Consulting (UK) Financial review – cross-moderation between the two Financial Advisor firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan, Edward Nathan Sonnebergs, Ledwaba Mazwai Webber Wentzel Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC International reviewers Legal review – Linklaters (UK) Technical review – Tony Wheeler Consulting (UK) Financial review – cross-moderation between the two Financial Advisor firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan, Edward Nathan Sonnebergs, Ledwaba Mazwai Webber Wentzel Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC Evaluation Streams: Environment Land right Application for land use Municipal land – rights Own Build – right over land Land Notarial lease registration Proof of land use application Commercial legal Acceptance of the PPA Project structure Economic Development Contributor status level Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Environment Land right Application for land use Municipal land – rights Own Build – right over land Land Notarial lease registration Proof of land use application Commercial legal Acceptance of the PPA Project structure Economic Development Contributor status level Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Evaluation Composition

9. OVERALL RECOMMENDATIONS (PHASE 1) 9

10. Recommended Preferred Bidders (Technology allocations) 10 Allocation to Preferred Bidders: Window 1 Allocation per Determination Still Available MW allocation per Determination MWPercentageMWPercentage Solar PV631.5343.6%818.4756.4%1450.00 Solar CSP150.0075.0%50.0025.0%200.00 Wind633.9934.3%1216.0165.7%1850.00 Biomass0.000.0%12.50100.0%12.50 Biogas0.000.0%12.50100.0%12.50 Landfill gas0.000.0%25.00100.0%25.00 Small Hydro0.000.0%75.00100.0%75.00 Total MW1415.5239.0%2209.4861.0%3625.00 Total Capacity - Bids Received2127.66 Percentage Preferred Bidders66.5% Number of Passing Bids28

11. Recommended Preferred Bidders – Solar PV 11 Project_NameCapacity (MW) 1 SlimSun Swartland Solar Park5.00 2 RustMo1 Solar Farm6.76 3 Mulilo Renewable Energy Solar PV De Aar9.65 4 Konkoonsies Solar9.65 5 Aries Solar9.65 6 Greefspan PV Power Plant10.00 7 Herbert PV Power Plant19.90 8 Mulilo Renewable Energy Solar PV Prieska19.93 9 Soutpan Solar Park28.00 10 Witkop Solar Park30.00 11 Touwsrivier Project36.00 12 De Aar Solar PV48.25 13 SA Mainstream Renewable Power Droogfontein48.25 14 Letsatsi Power Company64.00 15 Lesedi Power Company64.00 16 Kalkbult72.50 17 Kathu Solar Energy Facility75.00 18 Solar Capital De Aar (Pty) Ltd75.00 No. of Preferred Bidders for Solar Photovoltaic: 18631.53

12. 12 Project_NameCapacity (MW) 1 Dassiesklip Wind Energy Facility26.19 2 MetroWind Van Stadens Wind Farm26.19 3 Hopefield Wind Farm65.40 4 Noblesfontein72.75 5 Red Cap Kouga Wind Farm - Oyster Bay77.60 6 Dorper Wind Farm97.00 7 Jeffreys Bay133.86 8 Cookhouse Wind Farm135.00 No. of Preferred Bidders for Wind: 8633.99 Recommended Preferred Bidders – Wind

13. 13 Project_NameCapacity (MW) 1Khi Solar One50.00 2KaXu Solar One100.00 No. of Preferred Bidders for Solar CSP: 2150.00 Recommended Preferred Bidders – Solar CSP

14. Findings of independent review teams Independent legal review “appropriate process was undertaken to ensure a consistent approach” Independent technical review “TWC is also satisfied that the technical evaluation has been undertaken in accordance with the agreed methodology” Financial cross-moderation The final results from the financial team reflects the cross-moderation between financial firms. Governance review “we did not observe evidence of breaches in governance with impact on the validity of the overall process recommendations”

15. Thank You 15