- The ENGIE Africa and Pele Green Energy consortium for the 75MW Sannaspos Solar PV Project in Botshabelo, Free State failed to reach commercial close as a preferred bidder in the 5th Bid Window of the South Africa’s Renewable Independent Power Producer Procurement Programme (REIPPPP).
The country’s IPP Office has confirmed that it has called the bid bonds (termination) of the project.
According to clause 26.1 and 26.2 of the general requirements, rules and provisions (REIPPPP_BW5 RFP_PART A_GENERAL REQUIREMENTS, RULES AND PROVISIONS) you are liable to pay the IPP Office a total of R15 million calculated at R200000.00 per megawatt (MW) as a preferred bidder.
We asked Engie why the project failed and why they are contesting payment of the bid bond. They replied as follows:
The ENGIE-Pele Consortium was awarded three projects under the 5th round of the Department of Mineral Resources and Energy’s (DMRE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). On 30 November 2023, the Consortium successfully achieved financial close on two of its Round 5 projects, Graspan and Grootspruit, which are currently under construction and expected to generate enough electricity to provide clean power to 80,000 South African households by the end of 2025.
Unfortunately, the Consortium was unable to reach financial close on the Sannaspos Solar PV Project. The DMRE subsequently made a demand under the Preferred Bidder Guarantee, which caused the Consortium to initiate legal proceedings in the High Court.Â
As this matter is currently before the courts, we are unable to provide further comment at this time. Ends.
Their local black empowerment partner, Pele Green Engie, failed to respond to questions by the time this article was published.
Thirteen other projects failed to meet commercial close in REIPPPP Bid Window 5 including 12 projects from the Globeleq/Mainstream Energy consortium.Read more
Author: Bryan Groenendaal
