1. 23 Sept 2014 The supply of spare parts and special tools for five (5) peaking generation Open Cycle Gas Turbines (OCGT) units at Gourikwa Power Station. Tender no: Gourikwa Provision of capital spares refurbishment, resources, training, and transfer of know-how for the maintenance of the five (5) peaking generation Open Cycle Gas Turbines (OCGT) units at Gourikwa Power Station. Tender No: Gourikwa Tender Clarification Meeting: Gourikwa

2. 2 AGENDA TimeItemThandi Mathye 10:00Welcome & Safety EvacuationMWP Safety Rep 10:05Project Background & Technical Requirements  Scope of work Sebastian Pasquallie 10:15Commercial and SDL RequirementsThandi Mathye 11:00Health & Safety RequirementsLouis Jacobs 11:30Quality RequirementsRastus Ferreira 11:45Financial RequirementsBrian Murimwa 12:15Questions & AnswersAll 13:00Project Background & Technical Requirements  Key deliverable  Technical evaluations Sebastian Pasquallie

3. Project Background and Technical Requirements (URS)

4. Commercial & SDL Requirements

5. Commercial Requirements  General Information Information sharing is non-compulsory Tender No. Gourikwa Enquiry Issue date 03 Sept 2014 and closing date 24 October 2014 at 10H00 Acknowledgement form Eskom Holdings SOC Limited Eskom Representative details (Commercial, Technical, Financial, SD&L): +27 11 800 5508 or email: thandi.mathye@eskom.co.za

6. Commercial Requirements  Guidelines Deadline of clarification of queries; 17 October 2014 The tender shall be submitted as an original hard copy, plus 1 copy (identical to the original), and x1 soft copy in CD / USB The soft copy is not a substitute for hardcopy which must still be provided. Failure to adhere to this requirements will render tenderer non-responsive and the tender that does not meet the requirements will be disqualified. The proposal must be indexed and structured into 3 sections: o Section 1 – Commercial Proposal (Commercial returnable including Prices/Financial information) o Section 2 – Technical Proposal (Separate subfolders, into; Technical, Safety,Quality and environmental(SHEQ)) o Section 3 – Supplier Development and Localisation NB: Prices on hard copies must be identical to the ones on the CD /USB.

7. Commercial Requirements  Guidelines cont… o Proposals marked ‘Confidential’ and displaying the Tender description and the tenderer’s name should be deposited to the Eskom Tender Box located at : Tender Office (Opposite Main Reception) Eskom Holdings SOC Limited Megawatt Park Office 1 Maxwell Drive Sunninghill Ext. 3Sandton Johannesburg South Africa The tender offer validity period is twelve (12) weeks 7

8. Commercial Requirements  Evaluation Criteria  Four steps (4) evaluation Steps: Basic commercial compliance i.e. tender returnable and compliance to the tender submission Functionality(Technical and SHEQ)-80% threshold SD&L Financial evaluation(BOQ) 8 Functionality ScoreWeighted Threshold Technical 60% 80% Safety and Health 5% Environmental 5% Quality 30% Total 100%

9. SD&L 9  The objective criterion for this transaction is to transfer gas turbine maintenance expertise to Eskom employees within the contract period so that Eskom will be able to execute similar maintenance independently i.e. Eskom Rotek employees will be trained as part of the contract agreement.  Eskom strategic objective of transformation, reduce unemployment, skills development and equity.  Partner with willing and able supplier in executing the objective.  A tenderer cannot subcontracting more than 25% of the contract value to any other enterprise that does not qualify for at least the same number of BEE points, unless the intended sub-contractor is an EME that has the capability and ability to execute the sub-contract work.

10. Skills Development 10 Tenderers are encouraged to participate in creating experiential training for unemployed learners in the following areas: Type of Skill Number Two (2) unemployed graduate technician and Four (4) unemployed artisan candidates will be trained outside Eskom premises as part of skills training & development and the SD&L initiatives OCGT Gourikwa

11. SD&L Background 11

12. Health and Safety Requirements

13. SAFETY REQUIREMENTS 23 Sept 2014 Louis Jacobs

14. INTRODUCTION 1.COID Act 2.General Safety Requirements 3.Health and safety plan 4.Risk Assessments for work to be performed 5.Returnable documents for tender evaluation 14

15. Letter of Good Standing Required 1.COID Act:  An employer carrying on business in the Republic shall within the prescribed period and in the prescribed manner register with the commissioner. 2. Construction Regulations:  The client shall ensure that the contractor is registered and in Good Standing with the Compensation Fund or with a licensed compensation insurer prior to work commencing on site. 15

16. Risk Assessments for work to be performed The tendering contractor shall submit a risk assessment as part of the health and safety plan which must include:  the identification of the risks and hazards to which persons may be exposed to,  An analysis and evaluation of the risks and hazards identified based on a documented method;  A documented plan and applicable safe work procedures to mitigate, reduce or control the risks and hazards that has been identified;  A monitoring plan; and  A review plan 16

17. Required documents to form part of you Health and safety plan A SHE Policy signed by the CEO; Management structure and legal appointments (company organogram). Resources, Roles, Responsibility and Authority; Competency, training and awareness program Hazard Identification, Risk Assessment and controls & SHE Method Statements. Sub-contractor and Supplier management program( Process applied to select, qualify and monitoring SHE compliance of sub-contractor during work execution.) Letter of Good Standing with The Compensation Commissioner (licensed insurer or equivalent) 2016/06/1417

18. Required documents to form part of Health and safety plan Incident management program (Corrective and preventive action management from incidents including lessons learned, communication) Medical surveillance program ( certificate of medical fitness and Man-job specifications-( risk based)) Emergency preparedness and response procedures 18

19. Quality Requirements

20. 13/05/201420 QM 58 – Supplier Contract Requirements Purpose - Define the quality requirements/returnable documents which shall be submitted with a tender. Quality requirements are based on ISO 9001:2008. The required Quality requirements/returnable are as follows: o Quality Management System (QMS) Requirements. o Evidence of QMS in operations. o Additional/Customized Requirements (form A and B)  Note: QM – 58 defines the above mentioned requirements (read para 3.2 –and 3.3).  All returnable documents should be in English.

21. 13/05/2014 21 Quality Documentation with Tender The supplier shall submit the following quality documentation with the tender: o Quality Management System (QMS) Requirements.  Submit a copy of valid ISO 9001:2008 certification.  OR  Submit an objective evidence of a QMS, consisting of the following: Quality Manual. Document Control Procedure (Clause 4.2.3), Record Control Procedure (Clause 4.2.4), Internal Audit Control Procedure (Clause 8.2.2), Control of nonconforming product (Clause 8.3), Corrective Action Procedure (Clause 8.5.2), Preventative Action Procedure (Clause 8.5.3). Procedure for control of suppliers (i.e. additional procedure).

22. 13/05/2014 22 Quality Documentation with Tender Evidence of QMS in operations. Copy of closed out and completed product / process NCR. Copy of closed out and completed product / process CAR. Copy of closed out and completed product / process PAR. Detailed CV of the supplier QMR. Copy of organisational structure indicating QMR position. Historical information register on similar work carried out. Copy of customer satisfaction survey. Additional/Customized Requirements. Form A – Tender & Contract Quality Requirements (App A – QM 58). Form B – Quality Management System Requirements (App B – QM 58).

23. 23 Evaluation Criteria & Weights Ref Clause (QM 58) Supplier Tender Submissions (Checklist) Weights (%) Item No. Quality evaluation criteriaWeighted (%) 1. ISO 9001:2008 certification covering the intended scope of supply or objective evidence of a Quality Management System. (copy of the QMS manual including the six mandatory procedures). 30% 2. The Tenderer to complete and sign form A & B Risk assessment. 10% 3. A sample of a completed Non-conformance report (NCR), corrective action (CA), Preventative action (PA). A sample of an audit report on a sub-Contractor/Supplier. A sample of an Audit Schedule on a Sub-Contractor/Supplier. The Supplier shall attach a copy of their procedure/Process for the selection and control of sub-contractors. A Copy of the organizations procedure for reviewing Supplier Non-conformities. 20% 4.Attach a draft Programme Statement covering QM58 and ISO10005 requirements for Quality Plans (refer sheet 2 CQP guide). 25% 5.QCP/ITP’s (Inspection Test Plan) from a similar project or a draft for the scope of supply that covers Witness and Hold Points to "Customer" (Refer sheet3 ITP guide). 15%

24. Financial Requirements Pricing schedule(BOQ)

25. QUESTIONS & ANSWERS?. 25

26. Thank you