Clarification Meeting for GEN3277 (Supply of coal to Kusile Power - - PowerPoint PPT Presentation

18 May 2017

Clarification Meeting for GEN3277 (Supply of coal to Kusile Power Station)

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Agenda

No. Topic 1 Welcome 2 Evacuation Procedure 3 Important dates 4 Mandatory Commercial Returnables for Evaluation of RFP 5 Commercial Returnables - From Shortlisted Respondents 6 Scope of Work 7 Mandatory Technical Returnables for Evaluation of RFP 8 Functionality Criteria for Technical Scoring 9 Technical Returnables – From Shortlisted Respondents 10 SD&L Returnables – From Shortlisted Respondents 11 Environmental Returnables – From Shortlisted Respondents 12 SHEQ Returnables – From Shortlisted Respondents 13 Questions

Important Dates

Closing date and time for RFP GEN3277:

• 30 June 2017 at 10h00 (South African Standard Time)

Tender Advice Centre Opposite Main Reception (NOT Retail Centre as per RFP document) Megawatt Park

Clarification on enquiry documents

• Five (05) working days before the deadline for tender submission –

23 June 2017

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Commercial Requirements

Commercial Mandatory Returnables – For Evaluation of Submitted RFP

Description Annexure Acknowledgement form Annexure A Tenderer’s particulars Annexure B Integrity Declaration Form Annexure C CPA Requirements for Local Goods and Services (South African) Annexure D Addenda acknowledgement form Annexure E Status of Tenderer – Mining Right Holder or Value Adder Annexure J Cover sheet for RFP GEN3277 Annexure K Price Schedule Annexure L Additional Documents required in event of JV:

• Valid joint venture agreement
• Written confirmation that the joint venture will operate as a single business

entity for the duration of the contract

• A valid *B-BBEE Verification Certificate

Valid Offtake Agreement(s) if the tenderer is a Value Adding Supplier *B-BBEE Certificates /Preference points claim form Life Saving Rules Acknowledgement Form Annexure H

* Not mandatory at tender returnable stage, and will not result in disqualification but will impact the scoring, and a zero will be allocated, if not submitted by tender deadline

Commercial Returnables – From Shortlisted Respondents

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Description Annexure Joint Ventures - Details and confirmation of a single designated bank account in the name of the JV Acknowledgement form SHE Rules and other Requirements Annexure I Tax Clearance certificate Compliance with Employment Equity Act Audited Financial Statements of the tenderer for the previous two financial years Shareholding organogram /breakdown (for each individual company/JV member)

Technical Requirements

Scope of Work

Quantities

• Up to 17 Million tons per year
• Period of approximately 60 years

Parameter Unit Basis Power Station Acceptable Coal Quality Specification Total Moisture % As Received 7 ≤8.0 Inherent Moisture % As Received 3.1 N/A Ash % Air Dried 34.2 ≤36.0 Calorific Value MJ/kg Air Dried 18.8 ≥18.1 Volatiles % Air Dried 19.4 ≥18.5 Sulphur % Air Dried <1.1 ≤1.1 Abrasive Index mg Fe/4kg As Received <450 ≤450 AFT (Ash fusion temp-initial def.)

• C

As Received >1230 ≥1230 Sizing: As Received +60mm % <0 +50mm % <5 ≤5

• 3mm (cumulative)

% <25 ≤25

• 1mm

% <15 ≤15

Coal Qualities Specification:

Technical Mandatory Returnables

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Functionality Criteria for Technical Scoring – Threshold is 60%

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KPA 1: RETURNABLES

• Presentations will not be considered as Competent Persons Report (CPR)/ Technical

Report

FUNCTIONALITY CRITERIA FOR TECHNICAL SCORING Tenderers who do not meet the threshold for technical scoring will be disqualified. Criteria that will be used to score each tender: Weight KPA 1: Returnables 10% KPA 2: CPR/Completed Technical Report information 40% KPA 3: Process flow 50% Threshold 60%

Functionality Criteria for Technical Scoring – Threshold is 60%

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KPA 2: COMPETENT PERSONS REPORT (CPR) / COMPLETED TECHNICAL REPORT INFORMATION

• If the complete CPR/ Technical Report are not updated (before 30th January 2015) for operational mines an addendum

must accompany the complete CPR / Technical Report with new tons and coal qualities and reason must be given for the

• adjustment. This need to be signed off by the competent person. (See Annexure Q).
• For greenfield and brown field projects, if no additional work was done since the report was compiled; please state so in

an addendum to the report. If this is the case, the information in the Technical report / CPR will be used in the evaluation. If additional work was done and affects the tonnage and qualities in the report, please add addendum with the new

• figures. This will have to be signed off by a competent person. (See Annexure Q).
• If the tonnage does not make sense, GTIS to TTIS to MTIS to ROM to Sales Tons and for e.g. ROM is more than GTIS,

this will be clarified with the respondent and if still does not make sense, the evaluation team will use their own discretion in the evaluation.

Functionality Criteria for Technical Scoring – Threshold is 60%

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KPA 3: PROCESS FLOW

• The process flow must show the ROM qualities and tons for each seam, processing qualities and tons

and the final Eskom quality and tons (Annexure T is an example of the process flow diagram). This will be validated against Eskom coal requirement. If qualities and tons are not given for each stage of the process, the respondent will score 0%.

Technical Mandatory Returnables – For Evaluation of Submitted RFP

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Technical Mandatory Returnables – For Evaluation of Submitted RFP

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Technical Mandatory Returnables – For Evaluation of Submitted RFP

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Technical Mandatory Returnables – For Evaluation of Submitted RFP (4/4)

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Description

Coal Process Flow Diagram showing the tonnage and qualities for each stage of the process to arrive at the Eskom product

EXAMPLE OF A COAL PROCESS FLOW

FOR THE TOTAL RESERVE/ RESOURCES

ROM FOR TOTAL RESERVE / RESOURCES Mine 1 2 3 Total Mt 20 22% % 60% 60% 60% 60% Ash 33.0 Mt 12 24 18 54 CV 18.0 Ash 28.0 29.5 27.4 28.5 Vol 21.0 CV 18.7 21.7 22.1 21.1 S 1.0 Vol 21.0 22.0 22.0 21.8 S 1.0 0.8 1.2 1.0 Precertified stock Mt 40 Manual sampling Ash 30.0 44% Screen

• 32mm

Product conveyor CV 21.0 X X Vol 22.0 +32mm 2 Hourly sampling X 2 Hourly sampling S 0.8 Mine 1 2 3 Total Mt 30 % 40% 40% 40% 40% Ash 28.0 33% Mt 8 16 12 36 CV 22.0 Ash% 33.0 31.0 29.0 30.8 Vol 22.0 CV 17.0 20.0 21.9 20.0 Mine Total S 1.2 Vol 21.0 22.0 21.8 21.7 % 84% S 1.0 0.8 1.2 1.0 Mt 76 Ash% 25.7 Mt 90 100% Mine 1 2 1 Total CV 22.5 Ash 30.0 % 60% 60% 60% 60% TM% 9.0 CV 20.7 Mt 5 10 7 22 IM 2.3 Vol 21.8 Ash% 18.4 19.5 18.4 18.9 Vol 21.8 S 1.0 CV 27.0 25.5 26.0 26.0 AFT 1383 Vol 21.0 22.0 21.8 21.7 S 0.9 NOTE S 0.8 0.8 1.0 0.9 AI 300

`

Tonnage on As received Basis S - Sulphur (%) +60mm Qualities on Air dried basis Ash -% +50mm 2 CV - Calorific Value (MJ/Kg) Mt - Million Tons

0-3.0mm (cum)

20 Vol - Volatile content (%) ROM - Run of Mine 0-1mm 5 Screened undersize( ad) Mine 1 - 4 seam Mine 2- 2 seam Feed to Wash (DMS) ad Mine 2- 4 seam Product TOTAL ROM Product from Washing (ad) 12kt kton silo DMS Crusher (Roller) 4 1 2 3

Technical Report/ CPR Guideline

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NOTE: Critical information for scoring

• Seams present /Stratigraphy
• Coal reserves /resources and qualities with related cut-off parameters / discount factors.

Technical Returnables – From Shortlisted Respondents (1/3)

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Data for each seam to to supplied individually GTIS - Gross tons in-situ TTIS - Total tons insitu MTIS - Mineable tons insitu ROM - Run of Mine

To be complete for each reserve category i.e. Measured, Indicated, Inferred, Resources. Supplier to sign off each category

Technical Returnables – From Shortlisted Respondents (1/3 cont)

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Data for each seam to to supplied individually GTIS - Gross tons in-situ TTIS - Total tons insitu MTIS - Mineable tons insitu ROM - Run of Mine

To be complete for each reserve category i.e. Measured, Indicated, Inferred, Resources. Supplier to sign off each category

IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S IM Ash CV Vol S

Probable

Seam Seam Seam

Proved

Seam Seam Seam

Total

Measured

Seam Seam Seam

Total Indicated

Seam Seam Seam

Total Inferred

Seam Seam Seam

Total Grand Total

Reserve/ Resource Category COAL QUALITY(air dried basis) Reserves Resources ROM(contaminated) SALES GTIS TTIS MTIS ROM (uncontaminated)

Technical Returnables – From Shortlisted Respondents (2/3)

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Technical Returnables – From Shortlisted Respondents (3/3)

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Description Annexure

Mine Plan and Schedule

• First 24 months on a monthly basis
• Thereafter annually for the duration of supply

Description Annexure

Bulk sample for combustion test where applicable to determine Power Station suitability

• Minimum bulk sample of 3 tons
• Collection of sample to be arranged between shortlisted respondent and Eskom

Supplier Development & Localisation Requirements

SD&L Returnables – From Shortlisted Respondents

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Description Annexure SD&L matrix/requirements as per proposal Annexure M 30% of spend will have to be subcontracted to black designated groups a requirement in terms of the PPPFA.

Environmental Requirements

Environmental Returnables – From Shortlisted Respondents (Existing mining operations)

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Description

Valid Mining Authorisation (Mining Right/Permit) in terms of the Mineral and Petroleum Resources Development Act, (Act 28 or 2002), “ the MPDRA”. Valid Water Use License in terms of the National Water Act, (Act 36 of 1998). Environmental Management Programme (EMP) approval letter. Latest Closure Cost Assessment, which should indicate the following:

• Approved mining area/s as per the submitted mining authorization.
• The financial breakdown of items to be covered for premature closure.
• Latest Closure Cost Assessment report should reflect the overall financial provision for

rehabilitation for the either the past or current financial year or not older than 2 years.

Environmental Returnables – From Shortlisted Respondents (Value Adders with operations outside mining area)

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Description

Valid Mining Authorisation (Mining Right/Permit) in terms of the Mineral and Petroleum Resources Development Act, (Act 28 or 2002), “ the MPDRA” of where coal will be purchased or mined from. Valid Water Use License in terms of the National Water Act, (Act 36 of 1998) of where coal will be mined and beneficiation activities will take place. Environmental Management Programme (EMP) approval letter for the mining authorization where coal will be purchased or mined from. Latest Closure Cost Assessment, which should indicate the following:

• Approved mining area/s as per the submitted mining authorization.
• The financial breakdown of items to be covered for premature closure.
• Latest Closure Cost Assessment report should reflect the overall financial provision for

rehabilitation for the either the past or current financial year or not older than 2 years. An Air Emission Licence in terms of the National Environmental Management: Air Quality for sites with a carrying capacity of 100kt or more. If the Air Emission Licence is none applicable, a letter from a qualified Quantity Surveyor or Bulk Material Handler must be submitted supporting such.

Environmental Returnables – From Shortlisted Respondents (Value Adders with Operations within mining area)

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Description

Valid Mining Authorisation (Mining Right/Permit) in terms of the Mineral and Petroleum Resources Development Act, (Act 28 or 2002), “the MPDRA” of where coal will be mined and beneficiation activities will take place. Valid Water Use License in terms of the National Water Act, (Act 36 of 1998) of where coal will be mined and beneficiation activities will take place. Environmental Management Programme (EMP) approval letter of where coal will be mined and beneficiation activities will take place. Latest Closure Cost Assessment, which should indicate the following:

• Approved mining area/s as per the submitted mining authorization.
• The financial breakdown of items to be covered for premature closure.
• Latest Closure Cost Assessment report should reflect the overall financial provision for

rehabilitation for the either the past or current financial year or not older than 2 years.

Environmental Returnables – From Shortlisted Respondents (Historic Mine Dumps)

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Description

In the event that the coal will be sourced from a historic mine dumps created prior to MPDRA, a letter from DMR must be submitted indicating that the mine was unable to convert the old older mining licence to the new requirements of the MPDRA mining right due to unavailability of in-situ commodities / depleted reserves. Valid Water Use License in terms of the National Water Act, (Act 36 of 1998) Environmental Management Plan to manage any latent liability on site. The latest audit or compliance report as required by Water Use Licence.

SHEQ Requirements

SHEQ Returnables – From Shortlisted Respondents

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Description

COIDA – Valid letter of good standing or proof of application issued by the Compensation Fund (COID) or a licensed compensation insurer (South African tenderers only) Company’s SHE policy, signed by CEO or the most senior person in the company Health and Safety Plan based on the scope/proposal, Baseline Risk Assessment of activities based on the scope/proposal Medical Fitness Certificate Signed Health and Safety costing Legally required appointments and supporting competency certificates. SHE Competency (Consider scope

• f work, risks, SHE plan and applicability) CV’s and qualifications / certificates e.g.
• First aiders
• Safety officer
• Environmental officer
• SHE Representative
• HCS Controller
• Incident investigator

Eskom representatives

Name: Penny Shabangu Tel: (011) 800 2851 E-mail: MlangeNP@eskom.co.za

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Name: Bonani Malgas Tel: (011) 800 4329 E-mail: MalgasB@eskom.co.za

QUESTIONS?

Questions and responses at the clarification meeting have been loaded as a separate document on the Eskom TenderBulletin and government e-Tender Publication

Thank you