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.
Background to the REIPPPP Bid Window 6
The sixth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP Bid Window 6) is the second bid window to be procured in response to the Second Ministerial Determination. The Bid Window called for new generation capacity of 4 200MW, made up of 3200 MW wind energy resources and 1000 MW Solar Photovoltaic energy resources.
Key milestones achieved in respect of the procurement process are as follows:
- Ministerial Determination Gazetted on 25th September 2021;
- Request for Proposals (RFP) released to market on 6th April 2022;
- Bidders’ Conference was held on 7 July 2022;
- Updated Request for Proposals (RFP) advertisement to increase MW and extend timetable on 8th September 2022
- Bid Submission Date on 3rd October 2022;
- Bid Evaluation commenced on 5th October 2022;
- 5 Preferred Bidders announced on 8th December 2022;
Distributed by APO Group on behalf of Department of Mineral Resources and Energy: Republic of South Africa.