INVITATION TO TENDER No. MPGXC FOR THE MANAGEMENT OF LANDFILL SITE FOR 12 MONTHS PERIOD FOR HENDRINA POWER STATION

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INVITATION TO TENDER TERM SERVICES INVITATION TO TENDER No. MPGXC003438 FOR THE MANAGEMENT OF LANDFILL SITE FOR 12 MONTHS PERIOD FOR HENDRINA POWER STATION Deadline for tender submission: 10:00 (SAST) hours on 19 January 2015 TENDERER S NAME: PRICE (IF APPLICABLE): Page 1 of 13

Date Ref MPGXC003438 Enquiries 05 January 2015 Ernest Shitlhangu 013 296 3631 INVITATION TO TENDER The goods are: THE MANAGEMENT OF LANDFILL SITE FOR 12 MONTHS PERIOD FOR HENDRINA POWER STATION We invite you to submit a tender to provide the goods identified above. The list of documents provided for the purpose of the tender is attached to this Letter of Invitation. Eskom Holdings Limited s Standard Conditions of Tender specifies the actions to be taken during the process of tendering. The section entitled Tender Data provides the details which make the standardised Conditions of Tender specific to this tender, including the criteria you are required to comply with in order to be able to submit a tender in response to this Invitation. We have delegated the responsibility for this tender to Eskom Holdings Limited s Representative whose name and contact details are given in the Tender Data. We deem that a submission of a tender by you in response to this invitation constitutes your acceptance of the Conditions of Tender. Please complete the attached Acknowledgement Form and return by Fax as indicated on the form within 5 days of receiving this Invitation. If you do not intend submitting a tender kindly return all the enclosed documentation together with the Acknowledgement Form, giving your reason for not wishing to participate. We look forward to receiving and evaluating your tender. Yours faithfully, Pieter Viljoen (Eskom Representative) Procurement Manager (Hendrina Power Station) Group Technology & Commercial Page 2 of 13

FAX TO: Attention ESKOM HOLDINGS LIMITED s Representative Hendrina Power Station Pullenshope 1096 Ernest Shitlhangu Fax No. 013 296 3507 FROM Sender Fax No. INVITATION TO TENDER NO. MPGXC003438 ACKNOWLEDGEMENT: THE MANAGEMENT OF LANDFILL SITE FOR 12 MONTHS PERIOD FOR HENDRINA POWER STATION We are in receipt of Eskom Holdings Limited s letter dated. We confirm that the documentation received by us is: (delete / complete as applicable) Either: Correct as stated in the attached list of Contents, and that each document is complete. (tick box if documentation complete) Or: Incorrect or incomplete for the following reasons: Please select either statement 1 or 2 below and delete the other: 2 We have noted the deadline for tender submission (given in the Tender Data) and will be submitting our tender before then and as instructed. We propose to submit a tender in the name of the organisation stated above. (delete if the following is not applicable) The organisation stated above is a joint venture between: 2 We do not intend to submit a tender for this service, and return all of the attached documentation herewith. Our reason for not wishing to submit a tender is as follows: Page 3 of 13

Yours faithfully for the tender Page 4 of 13

CONTENTS 1. INVITATION TO TENDER 1.1. Tender Data 1.2. Eskom Holdings Limited s Standard Conditions of Tender (Available at www.eskom.co.za under Tender Bulletin and from Eskom Holdings Limited s Representative). 2. TENDER RETURNABLES Cover sheet Form of offer and acceptance Original Valid Tax Certificate Detailed price list Letter of good standing from COID (compensation fund). Quality inspection plan. A valid B-BBEE verification certificate from a verification agency. Safety questionnaire & 37.2 safety agreement Eskom Hendrina s risk assessment (signed) Risk assessment for the proposed work from the company Environmental questionnaire Contractor s programme as per the NEC Company Profile with track records of similar work done previously (advantage) Supplier declaration of interest Authority to submit a tender/offer Two years Audited Financial Statements QM 58 Annexure A and B Proof of qualification for key personnel Declaration of fair bidding Declaration of shareholding Page 5 of 13

3. AGREEMENTS AND CONTRACT DATA 3.1. Form of Agreement and Purchaser s Acceptance (Contract award stage only,) 3.2. Contract Data Part 1: Data provided by the Purchaser 3.3. The Eskom Holdings Limited Supply Contract. January 2000 4. CONTRACT PRICES (Contract award stage only,) 5. PURCHASER S GOODS INFORMATION 5.1. See list of contents within the document itself. 6. SUPPLIER S GOOD S INFORMATION (Contract award stage only) Page 6 of 13

TENDER DATA 1 General [1.1] Eskom Holdings Limited's Representative is Name Ernest Shitlhangu Address Hendrina Power Station Tel No. 013 296 3631 Fax No. 013 296 3507 E mail Shitlhe@eskom.co.za [1.1] A tenderer is a person, partnership, firm or company eligible to submit a tender in response to this invitation only if it is (complete / delete / add as applicable): Registered (country) Included on (tender list) 2 Tenderer's obligations [2.3] The tender documents are listed in the Invitation to Tender, and Page 7 of 13 [2.8] A site visit and / or clarification meeting has been arranged for tenderers as follows: Commence at 10:00 On 12 January 2015 The venue is Materials Management Boardroom The meeting arrangements are COMPULSORY CLARIFICATION MEETING (NB IF YOU DO DON T ATTEND THE CLARIFICATION MEETING YOU ARE NOT ALLOWED TO TENDER AND PLEASE BE EARLY TO ATTEND INDUCTION WHICH MIGHT YOU) DOWNLOAD YOUR OWN DOCUMENTS Tenderers shall confirm their intention to attend by Fax to; Name Fax No. stating the name, position and contact details of each proposed attendee. [2.9] The closing time for clarification of queries is 05 days before the deadline for tender submission.

[2.13] The conditions of contract, available separately, are stated in the Contract Data. [2.16] Alternative tender(s) will not be accepted. [2.19] tender returnables are generally in the document called Tender Returnables, but may also be in other tender documents where the tenderer is requested to return something as part of his tender. [2.20] The tender shall be submitted as an original and a copy. [2.22] The invitation to tender number is: MPGXC003438 [2.23] The tender shall be addressed to Eskom Holdings Limited as follows: Hendrina Power Station Impala Street, Pullenshope Private Bag x 1003 [2.25] The place for delivery of the tender is Eskom Holdings Limited's Tender Box located at : Tender Box 10 Smuts Avenue Witbank GPRS Coordinated for Tender Box, 10 Smuts Avenue, and Witbank Latitude: 25.87723S Longitude: 25.87723S [2.25] The deadline for tender submission is 10:00 hours on 19 January 2015 [2.27] The validity period is 90 Days weeks 3 Eskom Holdings Limited's Undertakings Eskom Holdings Limited's Representative will determine the evaluated tender price by adjusting the total of the Prices (if any) as follows: Making the specified correction for arithmetical errors [3.12]. 4 Additional conditions of tender The additional conditions of tender are: Page 8 of 13

5. EVALUATION PROCESS Eskom is reserves the right not to accept the lowest quote, as information outlined in the scope of work as well as elements listed in the evaluation matrix will play a major role when evaluating the requested proposals. Similarly, Eskom is not bound to select any of the suppliers or individuals submitting tenders All tenders will be evaluated on the criteria provided in the table below. The tenders of all suppliers will be rated as follows: Evaluation process comprises the following stages: STAGE 1: GATEKEEPERS All tender documents will be reviewed to determine compliance of submissions at closing date of the tender: Valid Original Tax Clearance Certificate submitted with the tender documents. Tenderers must have attended the compulsory site meeting and signed the attendance register thereof. NOTE: FAILURE TO COMPLY WITH THE REQUIREMENTS OF THE STIPULATED GATEKEEPERS WILL RENDER THE TENDER AS NON-RESPONSIVE. STAGE 2: FUNCTIONALITY EVALUATION Tenders will be evaluated strictly according to the bid evaluation criteria. During this stage tenderer s responses will be evaluated for functionality based on achieving a minimum score of per functional area to proceed to the next step. Technical Functionality Criteria Maximum number of points % Minimum number of points Safety and Health 100% 100% Quality 100% 60% Environment 100% 60% Engineering 100% 60% Page 9 of 13

STAGE 3: PRICE / FINANCIAL STAGE Evaluation Criteria In terms of regulation 5 of the Preferential Procurement Regulations pertaining to the Preferential Procurement Policy Framework Act. 2000 (Act 5 of 2000) responsive tenders will be adjudicated by the State on the 90/10 preference point for Broad-Based Black economic empowerment in terms of which points are awarded to tenderers on the basis of: The tendered price (maximum 90 points) Broad-Based black Economic Empowerment as well as specific goals (maximum 10 points) The following formula will be used to calculate the points for price in respect of tenders with a Rand value above R1 000 000. Pt P min Ps = 90 1 P min Where: Ps = Points scored for price of Bid under consideration Pt = Rand value of Bid under consideration Pmin = Rand value of lowest acceptable Bid A maximum of 10 points may be awarded to a tenderer for being a Broad-Based Black Economic Empowerment and or subcontracting with a Broad-Based Black Economic Empowerment stipulated in the Preferential Procurement regulations. For this tender the maximum number of Broad-Based Black Economic Empowerment status that could be allocated to a tenderer is indicated hereunder. Eskom reserves the right to arrange orders with more than one supplier It is the Government s intention to promote the following Broad-Based Black Economic Empowerment with this tender, and the points to be allocated against each level of contributor: Points The Preferential Procurement Policy Framework Act 2000 (PPPFA) Regulations were gazetted on 8 June 2011 (No 34350) and effective from 7 December 2011. These regulations requires tenderers to submit valid original or certified copies of their B-BBEE Status Level Certificates from a SANAS accredited verification agency and accredited Auditing firm, the 90/10 preference points systems will be applied in accordance with the formula and applicable points provided for in the respective status level contributor tables in the Regulations. Page 10 of 13

B-BBEE Status Level of Contributor 1 2 3 4 5 6 7 8 Non-compliant contributor Number of Points 10 9 8 5 4 3 2 1 0 Failure to capture the required status level and to submit the required B-BBEE status level certificates will lead to a zero (0) status level for non-compliant service providers. NOTE: The tender shall be submitted as 1 original documents and 1 copy. Note: Failure to make copies as requested will disqualify your Tender. The points scored by a tenderer in respect of the points indicated above will be added to the points scored for price. Page 11 of 13

6. SCOPE OF WORK 1. Description of the service THE MANAGEMENT OF LANDFILL SITE FOR 12 MONTHS PERIOD FOR HENDRINA POWER STATION The Hendrina Power Station General waste Landfill site is managed in accordance to the permit operating conditions. The copy of the permit No. B33/2/210/141 for the operation of the Landfill site is available upon contract award. The Power Station provides the TLB for the compaction of the general waste and for the use of the loading of the top soil at the quarry area. The contractor provides the vehicle for the trucking of top soil from the quarry area that is located 6Km return trip to the Landfill site or at another area as instructed by the project manager. The contractor ensures the minimum of 60 cubic meter of top soil is stock piled at the Landfill site at all the time. Key consideration on the Landfill site operation conditions Permissible Waste No hazardous or medical waste is permitted on site- In the event this is found they are removed and drummed in the 210LT drums and taken for registration at the Power Station. Access control - Ensure that entrance gates are managed during the hours of operation and locked outside the hours of operation Ensures that the visitors to the site sign the visitor s register. - Maintain service roads in a condition which ensures unimpeded access to the site for vehicles transporting waste and keep the roads free of waste. - Take all reasonable steps to prevent the disposal of waste on the Site for which the Site has not been approved Construction The slope of the sides of the Site shall not be steeper than a gradient of one in three (1:3) and shall be constructed in such a manner that little or no erosion occurs Page 12 of 13

Operation - Waste disposed on the Site shall be compacted and covered on daily basis with a minimum of 150mm of soil. - All reasonable steps are taken to ensure that the Site is operated in manner that shall prevent the creation of nuisance conditions or health hazard by rodents, odour, burning and air pollution. - Keep record of volume and nature of waste reclaimed and report to the employer monthly. Inspection, monitoring and reporting The contractor site inspections for the status of Site SHEQ compliance and monitors the operations to ensure compliance to the Site permit conditions- The report is submitted to the Employer every month or earlier if the situation warrants an urgent attention. Description of the service The Contractor attends all site meetings as called for by the Employers representative. The Contractor to keep a daily diary of equipment, labour and waste quantities reports on a daily basis which are kept for inspection. This daily diary includes access control format to the site in the way of signatures, reasons for entering, name and waste disposed off. The of all reports is to be agreed with the Employers Representative prior to submission. The Contractor produces a report with waste quantities, and any other relevant information within 7 days after the end of every month. The report to be e-mailed or hand delivered to the Employers Representative Page 13 of 13