coega development corporation€¦ · 3 renewable energy renewables r 2.8 bn 2 500 4 stainless...

COEGA DEVELOPMENT CORPORATION CDC Stakeholder Roadshows

15 - 23 September 2016

Index

1

2

3

4

5

6

7

8

Coega Overview & Feedback on last roadshows

Investment Promotion & IDZ Investment Projects

Procurement Processes & BEE Codes

SMME Development Programme and Support

External Programmes

Employment Opportunities

Payment of Suppliers

BAIC Group Update & Opportunities

9

Coega Overview Mr Simlindele Manqina

Coega Overview: CDC Ownership

Coega Overview: Vision & Mission

CDC certified in the following Standards

• ISO 9 001: Quality Management

• ISO 14 001: Environmental Management

• ISO 15 498: Records Management

• SANS 16 001: HIV & AIDS

• OHSAS 18 001: Occupation Health & Safety

• ISO 20 000: IT Service Management • ISO 27 000: Information Management • ISO 31 000: Risk Management

Currently pursuing certification in the following standards

• ISO 28 000: Supply Chain Security

• ISO 50 001: Energy Management

Coega Overview: Internal Capacity to Deliver

Coega Overview: Internal Capacity to Deliver Job Creation 2016

2030 Vision 2016

Legends of Empowerment &

Transformation 2016

Top Empowered: Public Service 2015

Top company in Infrastructure

Development 2014

Top Performing Public Service 2014

Top Employer in SA: Public Sector 2014-16

Best Provider of Services to

Exporters 2014

Most Empowered Enterprise 2014

Best company with most jobs

created

2014

Top Green Organisation 2014

Top Performing Parastatal / Agency 2013

Coega Overview: Current Status

34 Operational investors IDZ & NMBLP

15 International companies 19 Home-grown companies

R6.609 bn private sector investment R2.646 bn top-structures for investors

18 366 Jobs have been created in the IDZ 7 174 Operational jobs 11 192 Construction jobs

Over 85 886 people trained since inception 4 x Customs Controlled Areas (CCA) to reduce costs for exporters (Zone 1 & 2)

Coega Overview: Investment Sectors

Right Time. Right Place. Right Choice.

Feedback on last roadshows Mr Simlindele Manqina

Feedback on last roadshows

• Speculative Warehouse

Issues raised on Roadshows:

• Impact of delayed payments on SMME’s

• How can the CDC assist the sub-contractors to get their

payment from the main contractors?

• Is there a way that the CDC can pay suppliers upfront?

• SHEQ issues relating to contractor payments

• CDC to assist with capacitating contractors

• Can the Supply Chain Manager advise on the new legislation

for the new BBBEE codes?

Complaints Management

THANK YOU

Index

1

2

3

4

5

6

7

8





External Programmes




9

Investment Promotion & IDZ Investment Projects Dr Ayanda Vilakazi

Coega Overview: Fully Integrated Location

Port City (180 000 TEU: 2015 Est.)

Industrial Development Zone (11 500 Ha) Deepwater Port (780 000 TEU: 2015 Est.)

Automotive Supplier Park (182 Ha)

Coega Overview: What Sets Coega Apart

• Only Metro in SA served by two ports :

[93% of EC container handling capacity]

• 2.6 million TEU capacity

• Served by major shipping lines & car carriers

[90% of EC capacity]

• CCA: 70% saving on surety bond

• Labour & SHEQ Services

• Power grid: Dual feed for redundancy

• ICT Network: Dual feed for redundancy

• Localisation potential for manufactured goods

• Established procurement & distribution lines

Projects Being Implemented

Project being implemented - Multi User Facility

• Project Name: Multi User Facility

• Investment Value: R86 million

• Project Type: Light Manufacturing

• Origin: South Africa

• Jobs: 100 Operational; construction

• Expected start of operations: Q1 2016/17

Project being implemented- Lension • Redisa – R41 million


• Project Name: Lension

• Investment Value: R16.5 million

• Project Type: Chemicals

• Origin: Malaysia

• Jobs: 64 Operational; Construction

• Expected start of operations: 31 Jan 2017

Projects Implemented- Last 24 Months

Project implemented- Dedisa Peaking Power Plant • Redisa – R41 million


• Project Name: Dedisa Peaking Power Plant

• Investment Value: R3.5 billion

• Project Type: Energy

• Origin: France

• Jobs: 30 Operational; 1490 Construction

• Start of Operations: 2015

Project implemented- Coega Dairy


• Project Name: Coega Dairy


• Project Type: Agro processing


• Jobs: 54 Operational; 150 Construction

• Start of Operations: Q4 2015

Project implemented- Discovery Phase 2


• Project Name: Discovery Phase 2


• Project Type: BPO


• Jobs: 300 Operational


Project implemented- WNS


• Project Name: WNS


• Project Type: BPO


• Jobs: 950 Operational


Project implemented- REHAU Phase 2

• Project Name: Rehau


• Project Type: Automotive

• Origin: Germany

• Jobs: 45 Operational: 150 Construction


Projects soon to be Implemented

No. Project Name Description Investment

Value Jobs Status

1 MM Engineering Gas Bottle

Manufacturing R350 million 92 To start construction

2015/16

2 Q-Plas Expansion Auto components

supplier to VW

R110 million 40 Procurement

phase(construction

2015/16)

3 Kenako Medical Manufacture of

medical devices

R125 million 150 Design and

Planning(construction

2016/17)

4 Dynamic Commodities Food processing for

exports

R11.5

million 1783 Procurement (construction

2016/17)

5 Sanitech Waste water

treatment

R10 million 35 Design and

Planning(construction

2016/17)

6 Q-Plas Phase 2 Auto components

supplier to MB

R32.5

million 40 Procurement(construction

2015/16)

Projects soon to be Implemented

Summary of Transformational Projects

Transformational Projects - Summary

INTERVENTION BY NMBM • See Next Slide

# Project Name Description Investment Value Jobs (direct

& indirect)

1 BAIC Vehicle Manufacturing Plant R 11.5 bn 12 100

2 CCGT -Power Station DoE led Gas to power programme

(3126MW+ 600MW)

R 40 bn 8 140

3 Renewable Energy Renewables R 2.8 bn 2 500

4 Stainless Steel Thin Strip

Mill

Metallurgy R 0.5 bn 5730

9 Project Mthombo Oil Refinery R 100 bn 24 000

5 Aquaculture Complex Aquaculture Development Zone –

448 Ha

R 2 bn 5 605

6 Manganese export & Rail

Upgrade

Mn export capacity from 5.5 to

16mtpa. Rail upgrade

R 27 bn 5 000

7 Kalagadi Manganese

Smelter

Manganese Smelter for

beneficiation of SA minerals

R 4.2 bn 1 500

8 Biodiesel Plant Clean Fuels, Environmentally

Friendly

R 3.5 bn 25 200

9 Return Effluent Recycled water for industrial use R 1.2 bn 1 500

THANK YOU

Index

1

2

3

4

5

6

7

8





External Programmes




9

Procurement process & BEE Codes Mr Philasande Mankayi

• Fairness – Fair or being reasonable to bidders based on the requirements , but of course not compromising quality

• Equitable – Bidders, service providers must receive the same treatment no preference at all.

• Transparent –Processes must be public and be clear

• Competitive – Tenders are advertise to enhance competition

• Cost effective – Value for money

Chapter 13, Sec 217(1) Constitution of South Africa(Procurement)

• PFMA of Act 1 f 1999

• PPPFA Act No 5 of 2011, BBBEE Act 53 of 2013

• CIDB Act 38 of 2000

• NHBRC Act 95 of 1998

Alignment of CDC Policy with legislation

Statutory Bodies

• Declaration of Interest and Management of Conflict of Interest

• Canvassing, Corrupt and Fraudulent Practices;

• Confidentiality;

• Code of Conduct – SP and Third Parties;

• In conducting CDC Procurement Process – Honesty, Integrity, and Openness are integral and utmost important

Procurement Ethics

• Closed Tender Process

• Open Tender Process

• Expression of interest (EOI)

• Request for Proposal (RFP)

Methods of bids solicitation

Background

Stakeholders

Mandatory tender documents

• Company registration documents

• Tax Clearance Certificate • Provide PIN and Income Tax

Number

• Construction Industry Development Board (cidb)

• Grading applicable if project is construction related

• Central Supplier Database (CSD)

• Treasury Instruction 4A of 2016/2017

• Broad-Based Black Economic Empowerment - additional

• B-BBEE Affidavit / Certificate

Mandatory Required Documents

MANDATORY REQUIREMENTS

• Verification PIN and tax reference number provided by SARS

• Proof of registration with CIDB

• Authority of lead partner to sign all documents relating to a

particular tender.

• Signed joint venture agreement

• Completed and signed the SBD 4,8 and 9

• Proof of attendance in the Mandatory briefing meeting

• Signed form of offer.

MANDATORY REQUIREMENTS – doc for tendering

• Lodging sheet

• Bid opening register

• Addendums, e.g extension of validity period

• Any other information pertinent to the submission e.g minutes of

the briefing meeting

How to register on the CSD Self Registration facility

• The database is linked with SARS, Companies and intellectual

property commission (CIPC),Home Affairs and the Banks.

• Electronically, it verifies a supplier’s tax and BEE status and

helps to identify public sector officials who are doing business

with the state.

• Suppliers are required to keep their data uploaded regularly and

should confirm atleast once a year that their data is still current

and updated.

Supplier Self-Registration Process

Organs of state

access verified CSD

supplier information

A CSD supplier number

and unique registration

reference nr is auto-

generated and communicated

Register a

new CSD

account

Access the

CSD site on

www.csd.gov.za

www.csd.gov.za

Receive an activation

email and click

activate account

Complete supplier

identification information Complete address

information

Complete bank

Account information

Complete

commodities

information

Complete B-BBEE

information (future phase)

B-BBEE

Complete

associations (if relevant)

Maintain

users

Activate account by

requesting and

entering the OTP

Complete

contact information

View reports View supplier

overview

information

Additional

functionality

Log in

on the CSD

Complete tax

information

T A X

Click on

Submit

Complete

directors/members

information (if non-CIPC company)

Complete notification

information

Complete accreditations

(if relevant)

B-BBEE

Budgetary consideration

• Was there approved budget for this project in the current

financial year?

• Would the approved budget cover the expected expenditure in

the current FY?

• If not budgeted for was there approval by CFO and CEO

(EXMA)? Or

• If not budgeted for will the funding for the project be provided by

DTI or other sources?

• If yes, will the funds cover the expected project costs?

Procurement Strategies

Methods of Bids Solicitation

• Services or Goods from R 500k – R 1m (Incl. VAT)

• CSD Database MUST be utilized to source service providers

• Procurement Plan Submissions must be prepared and approved by the Bid Specification Committee (BSC)

• Procurement Submissions must be prepared and the Procurement Committee (PC) shall approve the service provider

Closed Tender

• Services or Goods in excess of R 1m (90:10);

• Bids must be advertised in Public;

• Full Procurement Process must be followed

• Procurement Plan Submissions must be submitted to Bid Specification Committee (BSC) prior advertising, PC and EXMA for award

Open Tender

• Implemented for sourcing Contractors especially – repetitive projects such as Early Childhood Dev. Centres, ELSEN, etc;

• The scope is not fully defined;

• Pre Qualified Contractors are given Tender Documents to Price;

• Duration of a Service Provider in a pool is one to two years with an option of one year extension (not more)

Expression of Interest

Procurement Strategies

• Normally Implemented on Professional Consultants e.g Architects, Placement Agents, Auditors, etc;

• The scope is defined and known;

• Evaluation of bids is based on PRICE and BBBEE;

• Minimum threshold may be defined on highly specialized contracts < 60% (Functionality)

Request for proposal

• The product offered or service is unique, innovative concept that would be beneficial or has exceptional cost advantages

• The person who made the offer is the sole provide of the product or service

• Is in pursuit of CDC’s emerging strategy

Unsolicited bids

• Due to change circumstances, there is no longer a need for a good or service

• Funds are no longer available to cover the envisage expenditure.

• No acceptable bids are received

• The scope of work has changed materially from what was envisaged

Cancellation of bids

Procurement Strategies cont.

Tender Opportunities

CDC Webiste, CIDB Website, and Treasury(ePorta) Website

National and Local newspaper

Government Tender Bulletin

Adverts

Closing of Tenders (CDC’s offices)

Evaluation of Bids

• Eligibility criteria /or mandatory requirements, e.g SBD 8 &9, Declaration of interest, completed and signed form of offer and mandatory briefing meeting.

STAGE 1

Responsiveness Assessment

• Functionality(Adequacy of construction programme, experience of the company, experience of the key personnel and quality control systems and practices/procedures. Qualitative would also look at repeat appointment, non-performance, spread of works and risk issues.

STAGE 2

Qualitative Assessment

• Quantitative – PRICE (90) AND B-BBEE(10) (Certificates from SANAS or IRBA)

STAGE 3

Quantitative Assessment

Three Stage Evaluation Process

Procurement Process flow

Business need for a good or

service

PRC, RMS and

PMEC

Procurement Plan to be

approved by BSC

Mandatory Briefing Meeting

Close-out Report With PM

Contracts management &

performance management

Publication and advertisement

Site handover & commencement

of Project

Letter of Award Letter of Regret (7 day appeal

period)

Recommendation to Procurement

Structures

Closing and Evaluation of Bids

Hand-over of site

PROCUREMENT STRUCTURES Bid specification

Committee

Review and approve procurement

plans;

Review specifications and Bid

conditions prior to the

advertisement being placed.

Supply Chain Manager;

1 x PC Member;

1 X Legal manager;

1 X project manager(Invitee)

1 X Technical person

A quorum is made by three

people of which one should be

from SCM unit.

Bid Evaluation

Committee(ad hoc)

Evaluation Bids submitted by

bidders.

SCM unit Official and/or the PM

consolidates and submits to the PC

a report and recommendations

regarding the award of the Bids.

1 representative from SCM Unit;

3 X Project managers (either

from the same BU or 1 from a

different BU or;

2 X Project managers and 1

external member who may be a

professional service provider.

A quorum is made of three

people of which one should be

from SCM unit.

Procurement Committee Approve bids of values between

R500,000 to R5 million and forward

them to EXMA for noting.

Recommend Bids above R10

million to EXMA.

PC membership is contained in

the PC terms of reference and

each member is appointed for a

period of two years or more by

the CEO.

This Committee is made up of

14 internal members and 3

external members.

PROCUREMENT STRUCTURES cont.

Name of Committee Responsibilities Composition

Executive

Management

Committee(EXMA)

Approve bids of over R10

million up to R100 million

CEO, in consultation with

EXMA.

The committee consists of 15

members.

A quorum is made by eight

people, internal audit and

Legal advice units being

presented.

The BOARD Approve bids above R100

million

As per the board terms of

reference.

This committee consists of

thirteen (13) permanent

members.

Out of this number only two

internal people sit in its

meetings; CFO and CEO.

Quality Assurance Name of office Responsibilities

Legal Advice Unit Review the procurement report before issuing legal compliance

certificate.

Internal Audit unit Review the procurement report before giving the reasonable

assurance by issuing internal audit certificate.

AUDIT REPORTS BY AUDITOR GENERAL OF SOUTH AFRICA

• The Coega Development Corporation takes pride in its

consistent unqualified audit outcomes given by AG since its

inception in 1999.

• Black Owned EME & QSE Requirements

• Sworn affidavit confirming:

• Annual total revenue

• Level of black ownership

• The above must be done on an annual basis

• CIPC will be issuing affidavits and B-BBEE

certificates for new registrations

EME & QSE Requirements

B-BBEE Compliance

Revised Scorecard Elements

BBBEE ELEMENT CURRENT POINTS REVISED POINTS

Ownership

20 25

Management Control 10

15

Employment Equity 15

Skills Development 15 20

Preferential Procurement 20

40

Enterprise Development 15

Socio Economic Development 5

5

TOTAL 100 105

B-BBEE New Thresholds

EME QSE Generic

New Thresholds < R10m R10 – R50m > R50m

Construction Thresholds < R10m R10 – R50m > R50m

BEP Thresholds < R1,5m R1,5 – R11,5m > R11,5m

100% Black Owned Level 1 Level 1 Verification

51% - 99% Black Owned Level 2 Level 2 Verification

0% - 50% Black Owned Level 4 Verification Verification

Evidence Affidavit Affidavit / Cert Certificate

Affidavit EME and QSE

Mandatory Requirements–vetting of preferred service provider

• Checking repetitive appointments

• Track record with CDC and other entities

• Check if the recommendation on the close-out report or

Performance report is favourable.

• Has the Service provider ever been levied penalties for not

meeting empowerment requirements.

Sworn Affidavit Template – EME

Sworn Affidavit Template – QSE

• Supply Chain Unit will ensure at all times that Procurement Process and

Procedures are in FULL compliance with Legislations;

• Procurement Manager will endeavor to maintain high integrity,

procurement ethics and fairness when awarding bids;

• CDC is fully committed in ensuring that Socio Economic Imperatives, such

as Job Creation, SMME involvement, Health and Safety, are achieved;

• Any queries relating to the Bids must be addressed with the Procurement

Manager or Supply Chain Manager; [email protected]

Conclusion

THANK YOU

Index

1

2

3

4

5

6

7

8





External Programmes




9

SMME Development Programme and Support Mr Nkululeko Nzuza

SMME Definition

A business concern operating in any business sector and which complies with the

qualitative and quantitative criteria outlined in the Schedule contained in the National

Small Business Act (Act No. 102 of 1996)

Defining SMME – Construction Development Programme (CDP)

Categories Small Micro Medium Large

Definition Exempted Micro

Enterprise

Qualifying Small

Enterprise

Generic

Enterprise

Annual Turnover (R) R 0 to 10 million + R 10 m to 50m +R 50 million

CIDB Grading 1 to 6 7 8 to 9

% Black Ownership Target +51% Not Applicable

Database Registration

Application for Database Registration

• This is a process of calling for an Expression of Interest (EoI) from qualifying

and interested enterprises to register in the SMME Database.

• Companies are registered in accordance with their local District Municipality.

Important Notes: Compulsory documents to accompany the application form are:-

1. Certified copy of the Company registration documents and ID documents of

owner/s

2. Proof of address of Company (Electricity Account or letter from Council/Local

Chief)

3. Valid proof of B-BBEE compliance (B-BBEE sworn affidavit) signed and

stamped by the Commissioner of Oaths

4. Valid Original SARS Tax Clearance Certificate.

5. Active CIDB Registration

6. Company Profile

7. Proof of Registration with the Treasury’s Centralised Suppliers Database i.e.

CSD Registration Number

Masonry -

Brick/Block

Laying

Concrete

Kerbing

Roofing –

Roof

Structures

Fire Protection

systems

Signage

Structural

Steelwork

Fencing Tiling Flashings Structural Timbers

Floor

Coverings

Formwork &

Shuttering

Access

Flooring

Glazing Waterproofing &

Joint Sealing

Ceilings Concrete

Flooring

Cartage Rainwater Goods

& Guttering

Ironmongery

Timber

Windows &

Doors

Landscaping Carpentry &

Joinery

Mechanical – Air

Conditioning,

Ventilation

Aluminium

Windows and

Doors

Carpentry &

Joinery

Paving Floor

Coatings

Mechanical -

Boilers

Lagging

Plumbing &

Drainage

Roof

Coverings &

cladding

Earthworks Metalwork

(balustrades,

trims, fixtures,

etc)

Cleaning Services

Painting Plastering Electrical Plant Hire Others

Ceilings &

partitions

Reinforcing

Steel Fixing

Fire

Detection

Pipe Laying

Trades of works

Chris Hani Database

Chris Hani Database

Trades 1 2 3 4 5 6

GB 90 21 3 9 5 3 131

CE 58 15 5 5 3 4 90

SH 4 1 5

SQ 9 8 4 4 25

SK 8 1 9

EP 8 1 9

EB 1 1 2

ME 7 7

SO 5 1 1 7

190 46 14 19 9 7 285

Training & Development

Training & Development

• Construction Contracting NQF L2 ( Skills Programme)

o Tender for construction contracts

o Apply basic business concepts

o Apply health and safety to a work area

o Understand and Apply business finance

o No SMME’s were trained due to unavailable budget for

the projects

Mentoring & Support

Mentoring Programme

• Objective of mentorship programme is to support and transfer technical skills to

small, medium enterprises particularly from CIDB grade 1 -4.

• The development support and oversight is provided by the CDC Construction

Mentors ensuring appropriate contract management and quality assurance.

• In all projects where there are SMME opportunities, there’s an experienced

SMME Construction Mentor appointed on full time bases to manage the SMME

i.e to assist, guide and mentor SMME from execution to completion.

• The SMME Construction Mentor consults and communicate with the SMME

Unit and Management Team GAP analysis findings to effect the development

support programme.

Financing of SMME

• The SMME Unit has established a working relation with Small Business Finance

and Support( SBFS) Unit that focuses on contract finance.

• The financial support strategy offered by this Unit is tailored to the needs of each

project, taking into consideration the expected project expenditure and revenues,

thus, the project cash flow.

SMME Awards to Date

Awards to Date:

• 2015/16

– 24 SMME’s awarded to the value of R 13 773 061,81

• 2016/17

– 2 SMME awarded to the value of R 963 639,00

THANK YOU

Index

1

2

3

4

5

6

7

8





External Programmes




9

Employment Opportunities Mr Luzuko Hlahlana

What are we trying to achieve - socio-economic imperatives?

• Community awareness of projects

• Maximise local jobs on all projects

• Place graduates on project to

learn

• Train people from the community

for employment

• No strikes and conflict on projects

• Ensure fair employment conditions

and wages

• Report on successes and

progress

What have we achieved (2014 – 2016)

Projects Jobs Provided (76% local)

Training done

Interns placed

Clinics and Hospitals in Chris Hani District

1020 3985 40

Projects include: • Frontier Hospital • Inkwenkwana Clinic • Isikoba Clinic • Mjanyane Hospital



Training done

Interns placed

Clinics and Hospitals in OR Tambo District

1525 2942 73

Projects include: • Sakhele Clinic • Kambi Clinic • Tabase Clinic • St Lucy’s Hospital • Nessie Knight Hospital • St Barnabas Hospital • Qebe Clinic • Flagstaff CHC • Lusikisiki Clinic



Training done

Interns placed

Clinics and Hospitals in Alfred Nzo District

405 493 22

Projects include: • Khotsong Hospital • Meje CHC • Nyaniso CHC • Sipetu Hospital



Training done

Interns placed

Clinics and Hospitals in Amathole District

4974 13370 151

Projects include: • Cecilia Makiwane Hospital • Frere Hospital • Hamburg Clinic • Tafalofefe Clinic • Ngqizela Clinic

What opportunities are available in this area?

Jobs on projects

• Construction works

• Investor operations

Internships for graduates

• Contractors

• Investors

Training in preparation for work

• Short technical skills

• Work readiness training

• Apprenticeships

• Learnerships

Business opportunities

• Construction works

• Operational opportunities from the finished facility

• Co-operatives

• SMMEs & service providers

Hospital Projects planned – commence 2016

Project District Employment projection

Sipetu Main Hospital Alfred Nzo 500

Khotsong Main Hospital Alfred Nzo 500

Nessie Knight Staff accommodation OR Tambo 120

Meje CHC Phase 2 Alfred Nzo 120

Nyaniso CHC Phase 2 Alfred Nzo 120

Flagstaff CHC Phase 2 OR Tambo 120

Kwanoqubela CHC Sarah Baartman 80

What must I do? What must I do if I wish to be considered for an opportunity? • Register your interest with Coega by

filling in form or • Register on the www.g2o.co.za

database • Update all qualifications, previous

employment, and training done on the g2o system

• Watch out for opportunities being advertised in your area through the Coega RIC, project labour desks, social-media and from community representatives in your area

• Continue to prepare yourself to get the opportunities that may come up through studies, courses and training

http://www.g2o.co.za/

THANK YOU

1

2

3

4

5

6

7

8





PTIP Programme

External Programmes




9

Index

1

Payment process – IDZ service providers

• Invoice received by the CDC

• Invoice recorded by Document Management

• Invoice approved for payment by the CDC Project Manager

• Once approved, Project Manager submits invoice to CDC

Finance for processing and payment

• Finance pays the invoice depending on availability of funds.

1

Payment process – Programme service providers

• Invoice received by the CDC

• Invoice recorded by Document Management

• Invoice approved for payment by the CDC Project

Manager

• Invoices submitted to the Department in batches

• Department reviews invoices and approves specific

invoices

• Once approved, Department transfers funds to the

CDC

• Finance pays the service provider

Payment process – Challenges (IDZ)

• Invoices submitted by service providers do not meet the

SARS requirements

• Invoice amounts not in terms of the service agreement

• Banking details on the invoice do not agree to the bank

details on CDC’s records

• Long outstanding debts owed to the CDC by clients adversely

affecting CDC’s ability to pay service providers

• No funding for operational expenditure allocated to the CDC

CM15/09/2015

Payment process – Challenges (Programmes)

• Invoices submitted by service providers do not meet the

SARS requirements

• Invoice amounts not in terms of the service agreement

• Banking details on the invoice do not agree to the bank

details on CDC’s records

• Delays in receiving funds from the Departments

CM15/09/2015

THANK YOU

1

2

3

4

5

6

7

8





PTIP Programme

External Programmes




9

Index

BAIC Plant 3D Concept • Redisa – R41 million


Lension– R16.5 million

N2 highway

Main Workshop

Paint Shop

Body Shop

Press Shop

Auto Part 1-3

KD Storage

Assembly Parking

BAIC Project – SA Units

BAIC Investment

• About BAIC International

− SOE with global footprint

o 30 Plants in 20 countries

− Top 4 largest Chinese Automaker

o 2nd in Heavy Commercial Vehicles

o 4th in Passenger & Light Commercial Vehicles

− Annual production of 2.5 million vehicles (3.6 times as

SA)

− Targeting 5 million units by 2020

− 2015 Revenue approx. Half a Trillion Rand

BAIC Project Specifics

• R11-bn investment by BAIC

• Phased approach (Phase 1 and 2)

• Initial Phase: 50,000 units (60% exports and 40% SA market)

• Full capacity: 100,000 units (over 5 years)

• Expected 800 - 1,500 operational jobs

• EC Economy-wide Jobs impact - 10,500 indirect jobs

• New supplier base to be developed

• Employee housing complex near St George’s Strand

• Breaking ground: October/ November 2016

• Start of Production: January/February 2018

• Procurement Processes – To be announced soon

BAIC Project Specifics

• The list of 7 SMMEs were appointed from the CDC database and

had to meet the following criteria:

─ Active status on CIDB with SH/CE registration;

─ Compliance with TCC

─ Registered with CSD; and

─ Immediate access to plant

1. Vukujonge Trading

2. Amanzi Ethu Trading

3. Infra Force Africa

4. Loopsy Trading

5. Tshintshiwe Trading

6. April and Sons

BAIC Project – Current Beneficiaries

BAIC Project – SA Units

• Tax Clearance Certificate – Active Status using Pin Code – paperless

• National Treasury Central Supplier Database (CSD) – compliance requirement,

• DTI Latest Codes of Good Practice – Sworn Affidavit or Accredited BEE Cert.

• 90 : 10 and 80 : 20 Evaluation Process

• Challenges of “Localization”

• Set asides business opportunities are “illegal”

• Compliance with Health and Safety Legislation Requirements

• Registration of CIDB Register of Contractors - downgraded

• Invoice Payment of SMMEs in 30 days OR Direct Payments

• Access to Funding by SMMEs

Legislative Changes and Challenges

• Enterprise Development is a critical business imperative

• SMME Development Unit manages and run the Programme

• The Unit will strive to support SMME to deliver

• SMME Unit works closely with HCS and SCM to ensure smooth

delivery of socio economic objectives

• Compile monthly reports for each BU and Programme

• Close Out Reports - achievements

Conclusion

THANK YOU