The Coal Baseload IPP Procurement Programme has been designed to procure capacity and energy derived from 2 500 (two thousand five hundred) megawatts of coal-fired power generation. The new generation capacity to be provided in the first bid window, will be required to be connected to the grid as quickly as possible and by no later than December 2021. The main feature of the Coal Baseload IPP Procurement Programme is to facilitate the participation of independent power producers in the baseload power generation capacity industry in South Africa which will provide, amongst others increased energy security and contribute towards socio-economic and sustainable growth objectives.

It is envisaged that in the Bid Submission Phases of the Coal Baseload IPP Procurement Programme, Bidders will be able to submit Bid Responses in relation to:

• projects where the Buyer shall be the sole purchaser of the capacity and energy generated by a Bidder's proposed Project (Single Buyer);
• projects where the Buyer is 1 (one) of 2 (two) buyers of capacity and or energy generated by a Bidder's proposed Project (Multiple Buyer); and
• projects in respect of which the facility is situated in a country other than the Republic of South Africa (Cross Border).

The driving force behind the Programme is the procurement of capacity and energy at highly competitive levels. Consequently, price is of paramount consideration in the Programme however, it is recognised that Economic Development is also a fundamental component of a successful procurement programme. Compliant bids will therefore be evaluated on a comparative basis, in relation to price and economic development. Bidders will be required to specify the prices to be paid by the Buyer in respect of the achieved capacity made available and for the supply of energy.

Interested parties are advised that Bid Responses must be submitted in accordance with the Request for Qualification and Proposals ("RFP") and the bid rules set out therein.

Bid Responses which are submitted must be accompanied by a Bid Guarantee in the form of a bank guarantee for an amount equal to R150 000 (one hundred and fifty thousand Rand) per MW of the contracted capacity of the proposed facilities for the Project in respect of which a Bidder submits a Bid Response. Bid Responses must also remain open and capable of acceptance by the Department for 365 (three hundred and sixty five) days from the Bid Submission Date (as defined in the RFP).