Supplier Development & Localisation

Monday, 25 September 2012 Mashudu Rambevha

We have a mandate to contribute positively to the development of the country

Our mandate

is to achieve

maximum and sustainable local development impact

through leveraging Eskom’s

procurement spend

in a manner that allows flexibility within the business in order to accommodate

government local development initiatives and policies

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SD&L measures impact along these key performance areas

Key performance areas Skills development Local content Industrialisation Employment and job creation Supplier development Definition

• Increasing the skill base (number and skill level) of South African workers in areas relevant to the energy sector and where there is a national scarcity of skills • Utilisation of Eskom and suppliers’ spend to develop South African based suppliers relevant to the energy sector (focusing primarily on BBB-EE, Black Owned and Youth Owned suppliers) • Utilisation of Eskom and suppliers’ spend to foster the establishment of new competitive industries in the energy sector • Creation of

new

jobs by suppliers as a direct result of Eskom business • Providing a platform to develop emerging suppliers, and further contribution to local developmental opportunities for national and international suppliers 3

SD&L evaluation criteria

The evaluation criteria seeks to increase SD&L evaluation score allocation in the overall scoring and to ensure all dimensions of local development are considered: •

10% B-BBEE

- ownership (BWO, BO, BPLD at first tier) and level contribution • • •

20%

Threshold of 60%

Local content (

and sub-contracting to local to site, BWO, LBS and SBE where applicable)

Skills development Job creation (

work opportunities) 4

B-BBEE & Localisation Targets

• Preference will be given to suppliers that are black owned (BO, BWO, BYO & BPLD) and are B-BBEE level 1 to 4 5

Localisation Scorecard Table

• Local content has been set at 60%, 30% of which will be procurement from BO, 20% procurement from BWO and 10% procurement from BYO. TABLE 1: SUPPLIER DEVELOPMENT AND LOCALISATION COMPLIANCE MATRIX FOR SUPPLIERS AND CONTRACTORS Criteria Local Content to South Africa Procurement from BO Procurement from BWO Procurement from BYO Skills Development Total Score Weight (%) 35.00% 10.00% 10.00% 10.00% 35.00% 100.00% Total Target (%) 60.00% 30.00% 20.00% 10.00% Proposed Target (%) Total Supplier Development and Localisation Score Total Overall Weighted Score 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6

Skills Development

• Eskom has a target of 2 trainees to be developed for this contract.

• Skills development will be aimed at providing practical experience to currently unemployed graduates from schools, further education and training campuses and universities.

TABLE 2: SKILLS DEVELOPMENT COMPLIANCE MATRIX Skill Type (Occupation) Electrical Engineering Technician OFO Occupational Group Total Weight (%) 50.00% 50.00% 100.00% Target Number of Persons to be Trained (Local to South Africa) Proposed Number of Persons to be Trained (Local to South Africa) Target Number of Persons to be Trained (Local to Site) Proposed Number of Persons to be Trained (Local to Site) 0 0 1 0 0 1 0 0 2 0 Total Weighted Score 0.00% 0.00% 0.00% 7

THANK YOU

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