Oct 23, 2012
Simpler bid documents, dialogue sessions could streamline REIPPPBack
Cape Town|Globeleq SA|Projects|Renewable Energy|Renewable-Energy|Energy|Energy Industry Moves|Mark Pickering|Power
© Reuse this
Speaking at the conference Mark Pickering, adviser to Globeleq SA, which is involved in the development of four first-round REIPPP projects, said a number of potential areas of improvement in the process were now apparent. Firstly, simplification of the bid documentation should be undertaken, which could include combining the economic development matrix, economic development scorecard and quarterly obligations into a single document.
Aligning the definitions used in the request for proposal with the implementation agreement was also a key improvement that was needed, as well as the clarification and removal of extraneous information in the implementation agreement.
“It took us teams of legal advisers to get our heads around these things and finally understand that the implementation agreement trumps everything else and that’s what counts. But even in the implementation agreement there are definitions that are just too loose.”
Offering open dialogue sessions between preferred bidders and the Department of Energy’s Independent Power Producer (IPP) unit could also assist in resolving issues, rather than relying on written communication which amounted to “hundreds” of letters in the first bid rounds, said Pickering. “Dialogue is a much more effective way of cutting through misunderstandings. When we have had those meetings they’ve really helped a lot.”
“Obviously a new development is the draft amendments to the [broad-based black economic-empowerment] codes – that needs to be incorporated into all of these and made clear for round one and round two bidders who will have to adapt to the new codes,” he said.
Along with a closer look at how the socioeconomic development obligations were structured and how economic development efforts should be reported on, another practical issue that needed to be clarified in the process was the job creation obligations, as the definition provided was too vague.
“Where do you stop counting jobs? Every party we meet has a different view on the boundary – is it at the edge of the site, is it at the edge of the primary contractors, do you go down to subcontractors? The comment that the job numbers look low is probably accurate because the way the jobs are being counted is probably conservative. In fact, a lot more jobs are being created, they are just not being recognised.”
In Pickering’s view, the success of the REIPPP had been as a result of the broad political consensus that renewable energy would be the centrepiece of a green economy. Thus, going forward, the sustainability of the programme would rely on continuing political consensus and so projects must, therefore, deliver tangible social and economic benefits in order to sustain that political support.
“Let’s keep working together to get the balance right. Let’s have as much engagement between all parts of industry and government as possible,” he concluded.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Renewable Energy News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse. Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm Fischer Consortium the contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...