Request for Proposal (RFP) to open for the Integrated Renewable Energy and Resource Efficiency Programme (iREREP) to generate revenue and savings across the Department of Public Works and Infrastructure (DPWI) property portfolio.

Following the announcement by President Cyril Ramaphosa on Monday evening on actions to address the electricity crisis, I am pleased to announce that The Department of Public Works and Infrastructure (DPWI), supported by National Treasury’s Government Technical Advisory Centre’s (GTAC) transactional advisor is today announcing its intention to publish the Request for Proposals (RFP) for the commencement of the Integrated Renewable Energy and Resource Efficiency Programme (iREREP).

I am delighted to announce the release of the RFP in the next week for the procurement of the Programme, which will be the largest programme for the procurement of renewable energy and resource efficiency for public facilities.

The DPWI as the largest landlord and facilities manager in the country, has a responsibility to not only deliver and manage quality infrastructure but to combat climate change and enhance sustainable development through its mandate – such as providing buildings for government service delivery.

We have a duty to implement programmes to reduce electricity demand and encourage energy efficient use by consumers as articulated by President Ramaphosa on Monday.

This programme is a Strategic Integrated Project (SIP), Number 28, known as the Photovoltaic (PV) and Water Savings on Government Buildings Programme. The project was gazetted as a SIP on the 24th of July 2020 as part of a credible pipeline of projects in the Infrastructure Investment Plan which was approved by Cabinet in May 2020.

The Programme will thrust South Africa along an environmentally sustainable path, while contributing significantly to social and economic development; energy and water security of supply; budget sustainability; and improved governance of utilities.

Considering the challenges to our economy, the persistent energy crisis, water shortages and effects of climate change, our aim must be to ensure that our investment achieves economic growth and transformation to improve the lives of citizens and fast-track development.

Prior to the RFP, the Department undertook and issued a Request for Information (RFI) on the 20th of September 2021 with the submission date for responses on the 20th of October 2021 which subsequently informed the drafting of the RFP. The RFI allowed the Department to gain additional market insights that will drive the implementation of the Programme, as well as provided an understanding of the appetite and readiness of the market to participate in this Programme.

Fifty-eight (58) submissions were received through the RFI process of which 19% were international respondents and 81% were local respondents. Accordingly, this has enhanced our understanding as well as assisted us to embed a better regulatory and eligibility criterion.

In recognising that this is the first of its kind, we have taken time to collate and prepare the necessary information to address the critical areas and questions raised through the RFI.  In addition, we have taken the necessary steps to ensure that we adhere to the relevant approval processes. These steps include:

• Hosting workshops with participating stakeholders to enable the successful roll-out across provincial and national government, including the DPWI and its regions.
• Undertaking Resource Audits which serve as inputs for the current RFP process. The current procurement round will see the Department release a bundle of projects into the market.

Additional resource audits have commenced in preparation for the next round of projects that will see the Department releasing additional projects within the next 6 to 24 months to market in various batches. This programmatic approach to procurement will ensure that we create the necessary momentum and certainty that will allow for the development of a vibrant resource services company market, development of skills, job creation and the achievement of a number of other programme objectives.

• Engaging with various stakeholders to obtain the approvals required to create an enabling environment and ensure proper governance structures and ensuring that the procurement processes are in place and adhered to. In this regard, consensus exists within Government and we are entering into the necessary agreements with our User Departments for their participation.

The Programme has conceptualised a dedicated funding mechanism to support local participation and SMME involvement, including women and youth. Furthermore, key institutions have expressed their interest in becoming finance partners to the project, both locally and internationally in the development financing market, as well as the commercial market.

RFP information requested 

The RFP will be open to the public with information requested from the respondents focussing on four key areas, namely: Legal, Technical, Finance and Economic Development. The information requested in respect of each of these key areas is detailed in the RFP.

To facilitate the preparation and submission of the Responses, the Department through GTAC will be releasing the RFP, in the coming week, on the following websites: www.etenders.gov.za and the  www.irerep.co.za(link is external) website. Interested parties may download the RFP (and related documents) and obtain information pertaining to the Programme.

We encourage all private sector participants across renewable energy, energy and water efficiency, alternative waste management sectors and through their various roles including prospective Bidders, prospective sponsors, lenders, local manufacturers, prospective suppliers, prospective advisors and other interested parties to participate in the RFP as we further cement partnerships between Government and the Private Sector.

We want to champion innovation and be an anchor for new smart technologies, expanding our mix and solutions beyond the proven technologies. We have therefore developed a section on the website where bidders will be able to upload their project videos and images to showcase their technologies. This Programme bears testimony to our commitment of putting the Infrastructure Investment Plan in action and contributes to our goals of achieving the Economic Reconstruction and Recovery Plan.

On Thursday, I will also be hosting a conference with all the private landlords which DPWI rents office space from to engage them on the need to reduce energy demands. Our appeal will be for all landlords to make their buildings more energy and water efficient in line with the President’s call and to assist in cost and energy efficiencies that will help our economy for many years to come.

We are excited to accelerate this journey of bringing greater innovation and resource efficiency into our government buildings that not only seeks to mitigate against climate change but achieve significant financial savings that can be diverted to other government priorities. We firmly believe that this will go a long way in contributing towards the strategies of demand management in the energy consumption.

Source: Government of South Africa