Slide 1

Report
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
Definition
Skills development
•
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
Local content
•
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)
Industrialisation
•
Utilisation of Eskom and suppliers’ spend to foster
the establishment of new competitive industries in
the energy sector
Employment and job
creation
•
Creation of new jobs by suppliers as a direct result
of Eskom business
Supplier development
•
Providing a platform to develop emerging
suppliers, and further contribution to local
developmental opportunities for national and
international suppliers
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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)
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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
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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 (%)
Proposed
Target (%)
Total Target (%)
60.00%
35.00%
30.00%
10.00%
20.00%
10.00%
10.00%
10.00%
35.00%
100.00%
Total Supplier Development and Localisation
Score
Total Overall
Weighted Score
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
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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)
OFO Occupational Group
Weight (%)
Electrical Engineering
50.00%
Technician
50.00%
Total
100.00%
Proposed Number
Target Number of of Persons to be Target Number of Proposed Number
Persons to be
Trained
Persons to be
of Persons to be
Trained (Local to
(Local to
Trained
Trained
Total Weighted
South Africa)
South Africa)
(Local to Site)
(Local to Site)
Score
0
0.00%
0
1
0
0.00%
0
1
0
0
2
0
0.00%
7
THANK
YOU
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