Background The Department has adopted an IRP with 42% target of electricity generation from renewable energy sources 03 rd August 2011 the Department released an RFP with an intention to procure 3725MW Interested parties were required to register and pay in order to be access the RFP documents The RFP requires bidders to make commitments in terms of local economic development (job creation, local content, black ownership and socio- economic development) The RFP was issued together with other documents such as the PPA, Implementation agreement and Connection agreement These documents were non-negotiable

Background Economic Development ElementsWeighting Job Creation25% Local Content25% Ownership15% Management Control5% Preferential Procurement10% Development5% Socio-Economic Development15% Total100% Total points30 points The RFP provides for 70/30 splits as per the exemption from the PPFA The table below gives detail breakdown of the 30% weighting on economic development

Status of the RE IPP Programme The Department released the RFP on the 3 rd of August and interested bidders were requested to register to access the RFP and related documents Once prospective bidders were registered on the database they were able to receive notification about any changes to the RFP The Department hosted a successful Bidders Conference on 14 September and it was attended by over 1000 people The conference was used as a platform to respond to most of the questions sent to the department about the programme All presentations made at the conference were made available to the bidder through the IPP website The Department also requested that parties intending to submit their bids in this phase (1) inform the Department so that it would make preparations in terms of logistics and evaluators to be ready and able

Status of the RE IPP Programme The bids were received from the 03 rd of November and at 12:00pm of the 04 th November receipt of proposals was closed as per the RFP 53 bids have been received across the different technologies and majority of the bidders were well prepared The submitted bids cut-across different provinces with larger portion located on the Northern Cape, Western Cape and the Eastern Cape The evaluation team is divided into legal, financial, technical, environmental and economic development It is too early to announce the outcome of the evaluation The department will announce the outcome of the evaluation, late this month or early December 2011