Eight solar PV projects, with a combined contracted capacity of some 1,760 MW, have been appointed as preferred bidders under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 7.
A further eight projects have also been appointed through the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 2.
REIPPPP Bid Window 7
The Department of Electricity and Energy said on Monday the eight solar projects were appointed from a pool of some 48 bid responses.
“Total investments from the eight solar PV preferred bidders in this bid window are R31.4 billion. South African equity participation of 49% across all the preferred bidders and average BEE participation of 46% have been committed in this bid window,” the department said.
Some 6,971 job opportunities—measured in job years—are expected to be created through the projects.
“These projects will allocate 38.8% of their total project costs to local content. This is equating to R7.8 billion during construction and R2.4 billion during the operation and maintenance phases.
“The preferred bidders have also undertaken to invest R3 billion in Black Enterprise procurement. They will invest R2 billion in B-BBEE procurement for qualifying small enterprises (QSEs). And Exempt Micro Enterprises (EMEs). They will also invest an additional R333 million in B-BBEE procurement, specifically for black women.
“Furthermore, the preferred bidders have undertaken to spend a total of R73 million in enterprise development. They will invest R129 million in socio-economic development and R138 million in skills development initiatives. This will be over the lifetime of the projects,” the department said.
BESIPPPP Bid Window 2
The department said it received 31 bid responses for BESIPPPP Bid Window 2. The eight chosen bidders come with a combined total investment of some R12.8 billion, it said.
“The eight preferred bidders have committed to 41% black shareholding in the IPP Project companies. And up to 27% shareholding by construction contractors, and up to 36% in operations contractors.
“The preferred bidders have committed to creating a total of 1,570 job opportunities for SA citizens. This is measured in job years—during construction and operations.
“These projects will allocate 31% of their total project costs to local content, equating to R2.6 billion. This will be during construction, and R2.5 billion during the operation and maintenance phases,” the department said.
A further R1.8 billion will be invested in Black Enterprise procurement. R1.4 billion will be invested in B-BBEE procurement on qualifying small enterprises and exempt microenterprises. And an additional R659 million will be invested in B-BBEE procurement, specifically for black women.
“The preferred bidders have also committed to spend R316 million. This will be spent on supplier development, skills development, and bursaries for black students. Also on skills development for black disabled people and socio-economic development initiatives over the lifetime of the projects,” the department concluded.
- SAnews.gov.za
