NATIONAL ASSEMBLY QUESTION 2655
Mr P D Dexter (Cope) to ask the Minister of Energy:
How did her department calculate the R15 000 non-refundable fee payable by
the independent power producers (IPPs) to access application documents for
the procurement programme to supply the national grid with renewable
energy?      NW3108E
REPLY
The R15 000 non-refundable fee payable for the RE IPP Bid documentation is
based on standard practice for large project finance deals of this nature.
The rationale is that only serious players who can raise the finance for
such deals are meant to collect the documents. Apart from the R15 000, a
bid bond of R100 000/MW is payable, for the same reason. If bidders are
unable to afford these payments, it is unlikely that they will be able to
raise the project financing required for the project.
To address concerns about small and emerging companies, the department has
also designed a âsmall projectsâ bidding programme, with relaxed conditions
relating to the bidding requirements. The documents will be available for
a nominal fee, the bid bond will be smaller, and the bid rules will be less
onerous in respect of the requirements. This will accommodate those that
are not able to participate in the larger programme.
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