PROPOSED AGREEMENT WITH GERMAN DEVELOPMENT BANK KfW

Notice is hereby given in terms of Section 33 of the Local Government Municipal Finance Management Act, No. 56 of 2003 that the Nelson Mandela Bay Municipality (NMBM) intends entering into an agreement with the German development bank KfW.

During the Government negotiations between the Republic of South Africa (RSA) and the Federal Republic of Germany in November 2018, Germany committed grant funding in the amount of EUR 18 million (ZAR 288 million) (the Grant) for the Financial Co-operation Programme "Renewable Energy for South African Municipalities – Phase I: Nelson Mandela Bay Metropolitan Area”.

The Electricity and Energy Directorate of the NMBM will be responsible for preparing, implementing and maintaining the different project packages financed by the Grant. The estimated project time frame is four years.  The estimated total Project cost is approximately EUR 20 million. The NMBM will co-finance at least 10% of the total Project cost (i.e. EUR 2 million) over the duration of the Project.

The proposed Project supports the NMBM in the modernisation of the urban network infrastructure and in piloting an innovative Renewable Energy (RE) component. After extensive investigation, the oldest parts of the network were considered for strengthening, as these would be most beneficial to the Nelson Mandela Bay Metropolitan Area, resulting in the greatest RE opportunities for the funding. These projects include the Mount Road 132 kV substation, the Diaz Road 6.6 kV network and the 5^th Avenue 6.6 kV network.

Further to these projects is to implement RE initiatives, as alternative supply to formerly disadvantaged parts of the City. Approximately 10% of the project value has been assigned to achieve this objective. It has been agreed between the NMBM and KfW that the pilot projects will look at green and replicable approaches only and that the close involvement  of the communities will be garnered and ensured.

Detailed project plans will be further elaborated during the design phase, with the support of the implementation consultant to be appointed.

NOTICE IS FURTHER GIVEN in accordance with Section 21A and Section 21 of the Local Government Municipal Systems Act, No. 32 of 2000 that –

a)     The local community and other interested persons are invited to submit comments or representations to the NMBM in respect of the proposed draft contract(s). Such comments or representations must be received by no later than 25 OCTOBER 2021 via electronic mail to KFWfeedback@mandelametro.gov.za or to the Munelek Building, 46 Harrower Road, North End, Gqeberha (Port Elizabeth), 6001 marked "NMBM KfW Grant Funding – s33 process”.

b)     Copies of the draft agreement and information statement summarising the NMBM’s obligations in terms of the draft contract(s) are available for inspection at: 

·      NMBM Libraries (Kariega (Uitenhage), Despatch, North End, Newton Park, New Brighton, Walmer),

·      City Hall, Govan Mbeki Avenue, Gqeberha,

·      Munelek Building, 46 Harrower Road, North End, Gqeberha.

·      Copies  are also accessible on the official website of the NMBM (https://www.nelsonmandelabay.gov.za/) under Document Library: Agreements External, Documents titled "Draft Separate Agreement for Grant Funding between KFW and NMBM” (https://www.nelsonmandelabay.gov.za/DataRepository/Documents/draft-separate-agreement-for-grant-funding-between-kfw-and-nmbm_UBnwA.pdf).

c)     Further details and clarity may be requested via email to KFWfeedback@mandelametro.gov.za or 041-506 4206 and responses of a material nature will be made available on the above-mentioned website.

Persons who are physically disabled or unable to write, but who wish to submit comments or representations in respect of the draft contract(s), may present themselves during office hours (08h30 – 16h00, Mon - Fri) at Munelek Building, 46 Harrower Road, North End, Gqeberha, where the Secretary to the Senior Director for Electricity and Energy Projects sub-directorate (Ms Zandile Mpengesi), at 041-506 4206 will assist them in transcribing the relevant comments or representations. 

In terms of the NMBM Supply Chain Management Policy Section 14, the Nelson Mandela Bay Municipality invites prospective suppliers to register on National Treasury’s Central Supplier Database (CSD) and the NMBM Supplier database. 

To register on the NMBM Supplier database, visit the newly launched Supplier registration page. 

The new facility also allows suppliers that are already registered, to check their NMBM supplier status and download their Supplier Database Registration Verification Letters. 

Please note that due to the Covid-19 regulations, access to NMBM offices is currently restricted. Therefore, verification forms and supporting documents will be provisionally accepted via email, i.e. scanned and sent to scmdatabase@mandelametro.gov.za.