eThekwini_Hostels_Call_for_Quotations_Final - Invitation to Quote

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					                                                      eThekwini Municipality
                                                              Energy Office

          Invitation to Quote
 Energy Efficient Hostel Hot Water Pilot
1. Background

1.1 National Context
The National White Paper on Renewable Energy sets outlines Government’s long-term goal
is the establishment of a renewable energy industry producing modern energy carriers that
will offer in future years, a sustainable, non-subsidised alternative to fossil fuels. To embark
upon a deliberate path towards this goal, the Government’s medium-term (10-year) target
       10,000 GWh (0.8 Mtoe) renewable energy contribution to final energy consumption
       by 2013, to be produced mainly from biomass, wind, solar and small-scale hydro.
       The renewable energy is to be utilised for power generation and non-electric
       technologies such as solar water heating and bio-fuels. This is approximately 4%
       (1,667 MW) of the projected electricity demand for 2013 (41,539 MW). This is
       equivalent to replacing two (2x 660 MW) units of Eskom's combined coal fired power

1.2 eThekwini Municipal Context
The eThekwini Municipality has made a strategic decision to begin positioning itself as a
regional node for sustainable energy production in the South African Development
Community (SADC). With this in mind the city intends to identify and developed large scale
renewable energy generation opportunities.
The eThekwini Energy Strategy (adopted in January 2010) makes specific reference to
renewable energy production, identifying on the key Local Authority & Public Sector Action
Plans as the Promote Sustainable Point-of-use Power Generation Projects.

                                                               1 Floor Florence Mkhize Building
                                                                     251 Anton Lembede Street
                                                                        Tel: 031 311 1444/1842
                                                                              Fax: 031 305 2730
2. Project Outline
2.1 Aim of the Project
The overall objective of this project is to pilot energy efficient hot water options for
residential hostels within the eThekwini Municipal Area (EMA).

The main aim of the project is to determine which energy efficient cost effective option or
technology is viable to install on all the hostels throughout the EMA.

2.2 Goals
    1. Assess the most appropriate energy efficient hot water systems for hostels in the
    2. Promote the use of renewable energy as a reliable alternative source of electricity.
    3. Reduce the city’s carbon footprint.
    4. Create jobs and economic development opportunities through the program.

2.3 Scope
The long term scope of the project is to install energy efficient hot water systems
throughout the EMA. However, for the purposes of this pilot, only one hostel will be used to
assess the most appropriate hot water system.
The appointed service provider will be responsible for the following deliverables:
        Supply, delivery and installation.
        Maintenance of system (plan and timeframe).
        Time management.
        Scope management.
        Risk management.
        Quality assurance management.

2.4 Hostel Redevelopment Program
The hostel upgrade projects within the municipality is in accordance with current re-
development programmes for hostels and is aimed at improving and upgrading the status of
all hostels in the eThekwini municipality. Thus far many of the hostels are characterized by
overcrowding, poor maintenance, rental collections, influx of rural people and lack of
administration. In addition unhygienic living conditions and high rate of vandalism is being
experienced. The environment is further compounded by high informal and formal
commercial activity. The object of the redevelopment will aim to establish acceptable
privacy levels, create humane hygienic and sustainable environments and maximize on
employment opportunities.

The following hostels are part of the re-development programmes, some of which are being
managed on an agency basis on behalf of the Department of Housing:

eThekwini Municipality - Energy Office
                          Name of Hostel      Admin Authority
                          Kwa-Mashu Hostel    Department of Housing
                          Umlazi T            Department of Housing
                          Kwa-Makhuta         Department of Housing
                          Kwa-Dabeka          Department of Housing
                          S.J. Smith          eThekwini Municipality
                          Dalton              eThekwini Municipality
                          Jacobs              eThekwini Municipality
                          Glebe lands         eThekwini Municipality
                          Thokoza             eThekwini Municipality
                          Klaarwater          eThekwini Municipality

As part of the regeneration program, the eThekwini Municipality is considering a range of
energy efficiency interventions including lighting, heating and water savings.

It should also be noted that the intention of the municipality is to ensure that each
residential unit within the hostels will be fitted with individual electricity and water
metering in the future. Any energy or water related intervention therefore needs to
incorporate future individual metering in the design and implementation.

2.5 Current Status
This pilot program will take place at the Kwa-Dabeka in KwaDabeka. The individual
residential units have individual cold water plumbing to a shower, toilet and kitchen sink.
There is also hot water plumbing that is linked to a discontinued communal hot water tank.

2.6 Technology
The quotation is not prescriptive in terms of any specific technology. The eThekwini
municipality is however considering both low and high pressure solar water heaters and
heat pumps for this pilot. It is anticipated that each unit will deliver a minimum of 100 liters
hot water each day. Each installation must include:
        One hot water storage tank needs to be installed per room.
        The quotation does not need to include the cost for water or energy metering.
        The tank for hot water needs to be between 60-150 litres.
        The installation must be SANS compliant.

The total number of installations expected by the service provider has not been set. This is
limited by the available budget. There are more than 500 residential units available in this
particular hostel.

2.7 Accreditation
Please provide ESKOM supplier accreditation details of the specific unit. Also note that all
installations must comply with relevant SANS, for example:
        SANS 10106:2006 (SABS 0106). The installation, maintenance, repair and
        replacement of domestic solar water heating systems

eThekwini Municipality - Energy Office
        SANS 10254:2004 (SABS 0245)
        SANS 10252-1 Part1. Water Supply installations for building
        SANS 1848:2006 (SABS 1848). Geyser Drip Trays

2.8 Time Frames
It is anticipated that the project will be completed within 3 calendar months of signing the

2.9 Budget
The total available budget for this programme is R190 000, inclusive of VAT and any other
incurred expenses.

3. Site Visit
A site visit to the hostel will take place as follows:
Address: 37 Kwad Ia 144 Rd, KwaDabeka 3610, South Africa Map
Date: 8 October 2010
Time: 13:00

The eThekwini Team will leave from the Florence Mkhize Building (Old Martin West), 251
Anton Lembede Street, Durban at 12:00 if you would like to follow us. Please RSVP for the
site visit before the 13:00 on the 7th October with:
Stephan Wiid
Cell: 0824546031

This is not a compulsory site visit, but it is recommended to service providers participate in
the site visit in order to clearly understand the installation requirements.

4. Quotation Submission
The eThekwini Municipality will consider the following in adjudication:
        Capacity of organisation
        Efficiency of the system
        Capital costs including installation
        Operating and maintenance costs
        Availability of installation space (e.g. roof space)
Quotations should therefore include the following:
    1) Company profile including years on experience with in providing proposed
    2) Proposed technology including,
          a. Technical specification of hot water solution (including efficiency)
          b. Technical specification for installation equipment (length and type of piping,
    3) Budget breakdown
          a. Single installation (unit cost, plus installation costs less possible subsidy).

eThekwini Municipality - Energy Office
           b. Total proposed installation.
           c. Estimated operating and maintenance costs.
    4) Installation requirements:
           a. Required roof space and orientation
           b. Required external wall area
    5) Timeframe for installation.

Please see Annexure 1 of this document for required documentation. Please also note that
Companies must be registered on the eThekwini Municipal Focused procurement system
( in order to be eligible for procurement.

4.1 Adjudication Criteria
The quotations will be awarder according to the following scores
Criterion                                                                            Points
Company profile years of experience (<1yr = 0, 1-3 yr = 5 points, >3 yr = 10 points)    10
Proposed technology (Complete solution 10 points)                                       10
Budget breakdown (Installation = 30, Operating = 30)                                    60
Installation requirements (10 points)                                                   10
Timeframe for installation (10 Points)                                                  10
TOTAL                                                                                  100

Energy Office does not bind itself to accept the lowest or any quotation, and reserves the
right to accept a portion of any quotation, unless the supplier expressly stipulates in their
The Energy Office does not undertake to consider registrations received after the due date
and time unless clear evidence of dispatch is available (e.g. postage stamp with date). Your
proposals should be inserted into the:

Tender Box
Ground Floor, Municipal Buildings,
166 K.E. Masinga Road (formerly Old Fort Road),
Durban 4001, South Africa or
PO Box 1014, Durban 4000, South Africa.

By 13:00PM on 22 October 2010 to whom all enquiries concerning this invitation to quote
should be addressed.
For queries regarding the submission, please contact:
Derek Morgan, eThekwini Energy Office
Florence Mkhize Building
251 Anton Lembede Street, Durban
Tel: +2731-311-1139

eThekwini Municipality - Energy Office
5. Annexure 1: Required Supporting Information

The following information is required:
a.     The company registration number or full name (if applicable) and ID number of a
natural person.
b.      The company VAT Number.
c.      The company TAX reference number.
d.      Original Current and valid Tax Clearance Certificate.
e.      Copy of Utility bill indicating whether water, electricity and rates accounts settled.
f.      A signed letter indicating the following with regards to the potential service provider:

eThekwini Municipality - Energy Office
        Energy Efficient Hostel Hot Water Pilot the eThekwini Municipality

______________________________________(Name of Service Provider) hereby state:
    1) Is the service provider is a natural person (Yes/No)
            a. If the service provider is a natural person, has the service provider been is in
               the service of the state, or has been in the service of the state in the previous
               twelve months; (Yes/No)
            b. If Yes, please provide details

    2) If the service provider is not a natural person, are any of its directors, managers,
       principal shareholders or stakeholder is in the service of the state, or has been in the
       service of the state in the previous twelve months; (Yes/No)
            a. If Yes, please provide details

    3) If the service provider is not a natural person, has a spouse, child or parent of the
       provider or of a director, manager, shareholder or stakeholder referred to in
       subparagraph (2) is in the service of the state, or has been in the service of the state
       in the previous twelve months. (Yes/No)
            a. If Yes, please provide details

Service Provider

eThekwini Municipality - Energy Office

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