HomeIndustry SectorsGenerationUp to 4 500MW to be generated by private sector

Up to 4 500MW to be generated by private sector


19 August 2008 – Eskom has issued a request for qualification, from local and international companies, for the development of a multi-site base load independent power producer (IPP) programme.

Eskom is seeking to secure up to 4 500MW from private producers and have put minimum plant development capacity at 200MW.

In April, Eskom called for an expression of interest for a new base load IPP and received responses from some 76 companies.  According to Paul Eardley-Taylor, HSBC Africa debt and infrastructure senior vice president, many of “the usual suspects” showed interest, including some companies that would more than likely not make it past the next level of the process.

Based on a build/own/operate basis, with a 25 year contract, the developers would be required to enter into an equivalent-term agreement with a fuel supplier to procure fuel supply.  In addition, interested parties are to identify possible sites for the new development, as well as determine fuel, transmission infrastructure and water access.

According to Eardley-Taylor, the request for qualification would require a company to show experience in the power industry and prove it could qualify for the bidding process.  

Pre-qualification would be issued on September 19, with request for proposals being issued on 13 October. Final bids close on May 11, 2009.  Financial close if aimed for 7 December 2009.