65986 ESKOM HOLDINGS LIMITED PROCUREMENT PLAN for Eskom Renewable Support Project (ERSP) As at 28 Oct 2011 Brief scope of projects: 1. SERE WIND 100MW Construction of a 100MW Sere Wind farm near Koekenaap, Western Cape province 1.1 Design, Manufacture, Supply, Transport, Erection and commissioning of Wind Turbine Generators (WTG) including WTG foundations, interlinking roads, crane pads design and construction; and collection system from WTG to Substation. 1.2 Civils package- supply & construction of main access road, substation building, other earthworks, visitors centre and O&M buildings 1.3 Supply & installation of substation (switchgear and switching yard), a 132kV distribution line to Juno Substation. Long lead items: temporary supply, transformer, 33kV circuit breaker, pylons, etc. 1.4 Consulting Services- (Architect consulting party/ Project Management) 1.5 Eskom’s own miscellaneous (fencing, security, canteen, accommodation, temp supply, furniture etc 2. SOLAR CSP Eskom will build a 100 MWe Central Receiver Concentrating Solar Power plant (with molten salt as storage and heat transfer medium) as a demonstration plant, with the intention of building a fleet of power stations based on the learning from the demonstration plant. Eskom considered three main strategies (Full turn-key; Limited Multiple Contracts approach [3 packages]; and Multi package [in excess of 5]), and concluded that it would be prudent to limit risk by appointing an owner’s engineer, and then executing the project on an EPC basis, since this is a first of a kind engineering project combining the technology and capacity. Eskom also believes that the integration risks between the Solar Island and the Power plant are high and preference is given to combining this into one contract. Learning for future plant should be maximised through commercial terms in the owner’s engineer and main contracts that allow for skills and technology transfer, and local manufacture of certain items of plant. The project will comprise four (4) packages as detailed below. 1.1 CSP Owner’s Engineer Package 1: Eskom will contract the Owner’s engineer in two phases. In the first phase, the owner’s engineer will assist Eskom with the Business case, basic engineering and with preparation of bidding documentation, while the second phase will have the owner’s engineer assist Eskom as an execution partner. The detailed scopes for each phase are included two documents called “Terms of Reference development phase�, and “Terms of Reference execution phase�. Eskom will follow the World Bank processes for the appointment of the owner’s engineer and will advertise the Expression of Interest and Request for Proposals for both phases. Evaluation will be based on the complete bids for both phases but the contract will be placed for the first phase only, with the option to extend to the second stage. The award of the second phase is subject to satisfactory completion of the fist phase. 1.2 CSP Solar and Power Plant Package 2: A contract for the design, supply and installation of a solar and power plant to Eskom specifications. The World Bank two stage bidding process will be followed under which first unpriced technical proposals on the basis of a conceptual design and performance specifications are invited subject to technical as well as commercial clarification and adjustment to be followed by amended bidding documents and the submission of final technical proposals and price bids in the second stage. It is expected that the plant to be built would operate at the desired output and capacity factor on commissioning, or within a reasonable time frame thereafter. In this regard, certain levels of performance guarantees are required from the successful bidder. Performance guarantees will be finalised after appointment of the owner’s engineer. Also it would be expected that the plant would be jointly operated by the Main contractor and Eskom for a period of eighteen months after acceptance of the plant to address guarantee issues and for effective transfer of skills. It would also be expected of the main contractor to indicate opportunities for localisation as this is one of the project objectives. 1.3 CSP Miscellaneous Plant Package 3: A multi-contract strategy for miscellaneous items of plant, including but not limited to: preparation of the servitude, fencing, roads, earthworks and erection of other miscellaneous infrastructure including but not limited to Workshop and store, Main office block, Site canteen, Medical station, Fire station, Visitor’s Centre, Ambulance garage, Compressor house buildings, Plant control room, Substations and switch houses, and Design and Construction of all infrastructure not covered by the main contract, package 2. The owner’s engineer would be responsible for scoping these sub packages. 1.4 CSP Integration Scheme Package 4- The Construction and erection of the transmission or distribution lines and substations as required for grid connection. 1 General 1.1 Project information Country Republic of South Africa Borrower Eskom Holdings Limited Eskom Energy Renewable Support Project Project Name (ERSP) Project Implementation Agency (PIA) Eskom Holdings Limited 1.2 Funder’s approval date of the ERSP Procurement Plan 21 March 2011 1.3 Date of General Procurement Notice for EISP (ERSP was included) 8 July 2010 1.4 Period covered by this Procurement Plan Up to Feb 2013 – 18 Months 2. Goods and Works and non-consulting services 2.1 Prior review threshold Procurement Method Prior review threshold Comments Contracts estimated to cost 1 ICB (Works) US$10 million or more US$ 500,000 2 ICB (Goods) US$ 3 million 3 Non-Consulting Services 2.2 Prequalification All bidders shall be prequalified in accordance with the provisions of paragraphs 2.9 and 2.10 of the World Bank Guidelines. If the value is below USD$10m, prequalification will not be followed. 3 Proposed procedure for CDD components Not applicable 4. Reference to Project Operational and/or Procurement manual Eskom issued the instructions on the use of the World Bank Procurement Guidelines on 18 March 2010. 5. Any other special procurement arrangements None 6. Procurement packages with methods and time schedule Pre- Domestic Review by Expected Expected Ref. Procurement qualification preference Bank Bid Contract Contract Comments Method Opening (Yes/No) (Yes/No) (Prior/Post) Date Award date WINDFAR M 1 Design, Manufacture, Supply, International Yes No Prior Jan 2012 May 2012 Transport, Erection and Competitive commissioning of Wind Bidding(ICB) Turbine Generators including -Supply and WTG foundations, interlinking Install (S&I) roads, crane pads design and construction. 33kV Collection system from the WTG to Substation. 2 Civils package- supply & ICB - Works No No Prior March May 2012 construction of main access 2012 road, substation building, other earthworks, visitors centre and O&M buildings 3 Substation (Switchgear and ICB-S&I No No Prior March May switching yard) Supply & 2012 installation of a 132kV 2012 distribution line to Juno S/S. Long Lead items (temporary supply, TRFS , 33kV breakers, pylons) SOLAR CSP : Procurement packages with methods and time schedule Domesti Expecte Expected Pre- c Review by d contract Ref. Procurement qualifica Contract preferen Bank Bid award date Comments Method tion ce Opening (Prior/Post) (Yes/No) Date (Yes/No) CSP S&PP CSP solar and Plant and No No Prior May Aug 2013 2 power plant Installation Contract 2013 Package 2 - two stage bidding CSP MP 3 CSP Works Contract - Yes No Prior Apr 2013 July 2013 miscellaneous single stage bidding Package 3 CSP Tx Int CSP Integration Plant and Yes No Prior Apr 2013 July 2013 4 Scheme Package 4 Installation - single stage bidding 7. Time to complete Projects WINDFARM 30 months to completion SOLAR CSDP: Project total duration will be 84 months including 18 months joint plant operation 8.Selection of consultants WINDFARM Consultant for Engineering and Project management services 1 2 3 4 5 6 7 Review by Expected Expected ctr Ref. Description of Selection Bank proposals Award date Comments No. assignment method (Prior/Post) submission date 4 Consulting QCBS- Yes Prior March 2011 Nov 2011 Services- Consulting (Architect consulting party/ Project Management) SOLAR CSP: Owner’s Engineer: The technology assessment study, to review the CSP market and the new developments in the various technology options, was completed in December 2010. Eskom has finalised the plant performance specifications and will appoint an owners engineer as the first step in the commercial process to support Eskom in the development and execution of the project. Eskom thereafter proposes to begin the procurement process for the project. 1 2 4 5 6 7 7 Review by Expected Expected ctr Ref. Description of Selection award date. Bank proposals Comments No. assignment method (Prior/Post) submission date CSP CSP Owner’s QCBS Yes OE 1 Nov 2011 March 2012 Engineer Consulting Package 1 Contract - single stage bidding 9.Implementation agency capacity building activities with time schedule None