IPP Office commits to swift implementation of its procurement programme

On 19 August 2019, acting head of the IPP Office, Sandra Coetzee (who stepped into the role in July 2019 following the departure of Karen Breytenbach), confirmed in media reports there would be “no surprises” in the biding documentation once procurement activities resume for Bid Window Round 5. Although not at liberty to disclose the changes being considered, Coetzee noted that the changes would be influenced by “greater inclusivity, transformation and affordability”. Coetzee confirmed that the IPP office and its procurement design teams have done a considerable amount of work to place the office in a position to act swiftly once the draft IRP 2019 is promulgated. Her immediate priority was to ensure that her office was ready to implement its procurement programme once the IRP 2019 was approved by Cabinet.

In his Budget Vote address in July 2019, the Minister of Mineral Resources and Energy, Minster Gwede Mantashe, announced that the IRP would be served before Cabinet in September 2019. It is the intention of the IPP Office to then conduct a series of “extensive” stakeholder engagements once the IRP is published. At this rate, it is unlikely that Round 5 will kick off this year – all indicators point to the first quarter of 2020. The coal IPP programme through which the Thabametsi and Khanyisa projects were named preferred bidders also remain uncertain. The IPP Office have sought guidance from the DMRE and National Treasury on this. Whether or not this is still a viable option depends on market conditions – which has seen some resistance from financial institutions.

For more information on the draft IRP 2019 or Bid Window Round 5, contact:

· Nikita Lalla
· Ricardo Pillay
· Zama Ngcobo