Energy performance contract for iot-ready led street lighting, controllers and central management system at the east london idz — full financing and shared energy savings

The East London Industrial Development Zone (ELIDZ) is a purpose-built industrial location adjacent to the East London port and airport on Buffalo City's West Bank. It spans over 400 hectares and comprises six fenced sub-zones, with fully serviced sites and excellent road access. The zone hosts manufacturers supplying local and international markets. The tender invites service providers to supply, deliver, install, commission, operate and maintain IoT-ready LED luminaires, controllers and a central management system (CMS) under an energy performance contract, with full financing and shared energy savings.

RFP document available for download: 13 November 2026 at 12:00 (noon) from www.elidz.co.za (Opportunities >> Tenders).

Briefing session (non-compulsory): 25 November 2025 at 12:00. Venue not stated in the document.

Written questions deadline: 01 December 2026 at 16:00, by email to [email protected].

Responses to questions sent by: 02 December 2026 at 16:00.

Closing date and time: 07 December 2026 at 10:00 (per tender record; the document body inconsistently states 01 Dec 2026 at 12h00 – the official record is 07 Dec 2026 at 10:00).

Enquiries:

• Name: Mrs Anathi Mzantsi
• Role: Project Manager (per communication rules)
• Email: [email protected]
• Telephone: (043) 702 8200
• Fax: (043) 702 8251

Submission and download:

• Tender portal: https://tenderportal.elidz.co.za
• Website: www.elidz.co.za

Delivery/service address:

ELIDZ offices

Lower Chester Road

Sunnyridge

East London

Submission method: online via https://tenderportal.elidz.co.za before the closing time. E-mailed, faxed, telephonic, telegraphic or late proposals will not be considered. Technical and financial proposals must be submitted in two separate envelopes, clearly marked "Envelope A – Technical Proposal" and "Envelope B – Financial Proposal". The financial proposal is only opened if the technical proposal is acceptable. Including any price or cost information in Envelope A results in automatic disqualification. The signed Form of Offer must accompany the financial proposal; an unsigned Form of Offer disqualifies the bid.

Returnable documents (to be submitted with Envelope A):

• Completed and signed ELIDZ Procurement Handbook with supporting documentation (e.g. tax clearance).
• CSD registration certificate.
• Valid Tax Clearance Certificate or SARS PIN.
• Proof of a director's valid registration with ECSA (Pr Tech Eng/Pr Eng) or SACPCMP (Pr CM/PRCPM).
• Proof of valid CIDB grading 4EB or 4EP or higher.
• Proof of Department of Labour registration as an Electrical Contractor (compulsory).
• Proof of Department of Labour registration of staff as an Installation Electrician (Electrical Machinery Regulation 13(1)); failure results in automatic disqualification.
• Valid B-BBEE certificate (original or certified) or sworn affidavit (for EMEs) with accountant's letter confirming turnover.
• Company profile and valid proof of office location (municipal clearance, lease, or municipal bill).
• CVs and certifications of key personnel (project manager, engineers, maintenance, finance, M&V specialists).
• Functionality matrix returnables: projected energy savings (%), quality of equipment, M&V plan (IPMVP), implementation plan and timeline, bidder expertise and resources, and references.

Joint ventures: submit JV agreement with shareholding percentages, consolidated B-BBEE certificate, and mandatory documents for each party (tax PIN, CSD, procurement handbook, etc.).

Evaluation follows the 80/20 preference point system: 80 points for price/energy performance contract value and 20 points for specific goals (B-BBEE and related preferences). The contract is awarded to the highest scoring bidder; ELIDZ may deviate from the highest score only on reasonable, justifiable grounds.

Functionality stage (Envelope A): scored out of 100. Minimum qualifying score to proceed is 70 out of 100. Each criterion scored individually; failure to submit the relevant information gives zero for that section. Breakdown:

• Projected energy savings (%): 15 points – 15 for ≥75% savings with clear baseline and credible modelling; 12 for 50–59%; 9 for 35–49%; 6 for 15–34%; 0 for <15% or unclear model.
• Quality of equipment: 15 points – 15 for all major equipment with national/international certification (SABS, IEC) and ≥5-year warranty, and the bidder being a Tier 1 SANEDI-registered ESCO; 12 for good quality reputable brands with some missing documents and >5-year warranty; 9 for acceptable quality with warranty <3 years or standard specs; 6 for weak documentation/unknown brands; 0 for no specs or quality control details.
• Measurement & Verification Plan (IPMVP): 10 points – 10 for full IPMVP compliance, clear KPIs, responsibilities and frequency; 7 for partial IPMVP application or unclear methodology; 5 for generic plan lacking detail; 3 for weak M&V with gaps; 0 for no M&V.
• M&V Protocols Experience: 10 points – 10 for experience in recognised M&V protocols (e.g. IPMVP) on 3 or more reference projects; 7 for 2 projects; 5 for 1 project; 3 for limited evidence; 0 for none.
• Implementation Plan & Timeline: 10 points – 10 for ≤6 months with detailed timeline and resource plan; 7 for 6–9 months with minor uncertainties; 5 for acceptable timeline with some missing detail; 3 for >9 months or weak planning; 0 for no implementation plan.
• Bidder Expertise and Resource (Project Manager & key personnel): 8 points – for PM: Master's in Electrical/Energy/Renewable Engineering (additional qualification) or BEng/BSc/BTech Electrical (or equivalent); 10+ years relevant experience (street lighting & EnPC projects) gets 8; 8–10 years gets 6; 5–7 years gets 5; <5 years gets 0. Also 7 points for successfully completed 3 or more municipal LED streetlight/EnPC projects of similar scope; 5 for 1–2 projects within last 10 years.
• References: 20 points – scores from referees based on 3 relevant verifiable references on the ELIDZ template.

Specific goals (20 points) for tenders valued above R1 000 000 up to R50 000 000:

• 10 points: 51% and above Black-owned.
• 5 points: Eastern Cape based suppliers.
• 1 point: 51% and above Black Women-owned.
• 1 point: 51% and above Black Youth-owned.
• 3 points: SMMEs.

Financial proposal evaluation: uses a performance rating (Pt) formula:

Pt = (Total monetary value of savings during contract (ZAR) − Total 3-Year Post-Contract Maintenance Cost (ZAR)) / Contract Duration (Years)

The bidder achieving the highest Pt is ranked first for the financial component. Points for price are calculated using the formula provided in the document.

No points awarded for B-BBEE if the total B-BBEE percentage scored is less than 30%.

Scope: supply, delivery, installation, commissioning, operation and maintenance of IoT-ready LED luminaires, controllers, and Central Management System (CMS) at the ELIDZ, under an Energy Performance Contract (EnPC) with full financing and shared energy savings over the agreed contract period.

Key requirements:

• Bidder must propose a complete EnPC model, including financing, savings-sharing, operation and maintenance, and M&V over the proposed contract duration.
• Detailed technical specifications are attached to the document (not reproduced here).
• The project area: ELIDZ premises, Lower Chester Road, Sunnyridge, East London.
• The equipment must include IoT-ready LED luminaires, controllers, and CMS.
• The bidder must submit a detailed energy savings calculation.
• The bidder must propose a detailed M&V plan compliant with IPMVP, with clear KPIs, responsibilities, and frequency.
• The bidder must demonstrate experience in applying recognised M&V protocols (e.g., IPMVP) in at least one reference project (more points for more projects).
• Implementation plan and timeline required; shorter timelines (≤6 months) score higher.
• Qualified team required, including project manager, engineers, M&V specialists, operations and maintenance team, and financial specialists.
• Equipment quality: major equipment must have national/international certification (SABS, IEC) and at least a 5-year warranty for full points; bidder must be Tier 1 SANEDI-registered ESCO.
• The bidder must provide 3 relevant verifiable references on the ELIDZ template.
• The successful bidder must have sufficient competent staff available to commence full-time operations from the commencement date.

The technical proposal (Envelope A) must include:

• Project approach.
• Project leader experience.
• Project implementation team composition (engineers, M&V specialists, operations and maintenance team, financial specialists).
• Detailed energy performance contract proposal, including: expected energy savings model, financing plan, savings-sharing mechanism, M&V protocol, EnPC duration, and detailed proposal for the requested equipment.
• Three relevant references on the ELIDZ template; if a referee lacks a company stamp, submit a letter on company letterhead confirming sign-off.

Qualification and experience requirements:

• At least one director must be registered with ECSA (Pr Tech Eng/Pr Eng) or SACPCMP (Pr CM/PRCPM).
• Proof of CIDB grading 4EB or 4EP or higher.
• Proof of Department of Labour registration as an Electrical Contractor (compulsory).
• Proof of Department of Labour registration of staff as an Installation Electrician (Electrical Machinery Regulation 13(1)) – mandatory; failure results in automatic disqualification.
• For joint ventures, lead partner must have CIDB grading 3EB/3EP or higher, and combined grading must meet 4EB/4EP.
• At least one successfully completed Energy Performance Contract or equivalent performance-based project is required.
• The bidder must submit CVs of key personnel (project manager, engineers, maintenance, M&V specialists).
• The project manager should hold an engineering degree and have at least 5 years of relevant experience (more years score higher).
• The bidder must demonstrate experience in applying recognised M&V protocols (e.g., IPMVP) on previous projects (1+ reference projects).

The financial proposal (Envelope B) must include the price schedule and proposed solution costing. Specific schedules required:

• Price Schedule B: contract duration (years).
• Price Schedule C: total monetary value of savings over the contract duration.
• Price Schedule F: total 3-year post-contract maintenance cost.

The financial proposal is scored using the performance rating formula (Pt) = (Total savings value − 3-year post-contract maintenance cost) / Contract Duration. The bidder with the highest Pt is ranked first.

Prices must be firm for 180 days from closing date and be quoted in ZAR, inclusive of VAT unless otherwise stated.

All rates and prices in the schedules must cover all obligations for proper completion of the project.

Price basis:

• Prices to be quoted in South African Rand, inclusive of VAT unless otherwise stated.
• Tender price must remain firm for 180 days from the closing date.
• No price revisions without prior written mutual agreement and official contract modification.

Financial proposal (Envelope B) must include: price schedule and proposed solution costing, including Price Schedule B (contract duration), Price Schedule C (total monetary value of savings), and Price Schedule F (total 3-year post-contract maintenance cost).

Payment terms:

• Payments are monthly instalments of verified savings, with 20% share of savings going to ELIDZ (proportion to be proposed by bidder).
• Maximum payment processing period of 30 days from receipt of a complete claim. A complete claim requires: signed M&V documents for the payment period, original invoices, covering letters of approval (ESCO and relevant ELIDZ official, where applicable), and statement of accounts.

Guarantees / bonds:

• The successful ESCO must provide a Deed of Guarantee equal to 5% of the capex investment value, to be delivered within 21 days of signing the award letter.

Contract considerations:

• Contract duration is proposed by the bidder, starting from project commissioning.
• After the EnPC term, there is a 3-year post-contract maintenance obligation.
• If contract value exceeds R5,000,000 for the same goods/services on a consecutive basis, the successful bidder must submit an SMME Supplier Development Plan agreed with ELIDZ.
• The bidder must propose the savings-sharing ratio; ELIDZ receives a 20% share of verified savings.

Mandatory compliance:

• CSD registration (Central Supplier Database, National Treasury) – registration number must be provided.
• Valid SARS Tax Clearance Certificate or SARS PIN.
• B-BBEE: valid original or certified B-BBEE certificate from a SANS-accredited verification agency. EMEs (turnover < R10m) may submit an accountant's letter or SARS confirmation plus a sworn affidavit. No points for B-BBEE if total B-BBEE score less than 30%. Joint ventures require a consolidated verified B-BBEE certificate.
• CIDB grading: 4EB or 4EP or higher. For joint ventures, lead partner must be 3EB/3EP or higher, and combined grading must be 4EB/4EP or higher per CIDB JV calculator.
• Professional registrations: At least one director must be registered with ECSA (Pr Tech Eng/Pr Eng) or SACPCMP (Pr CM/PRCPM).
• Department of Labour: proof of registration as an Electrical Contractor and as an Installation Electrician (Electrical Machinery Regulation 13(1)) – the latter is mandatory for issuing installation certificate of compliance; failure results in automatic disqualification.
• Company registration: certified copy of Company Registration Certificate.
• Letter of Good Standing from Compensation Commissioner.
• Proof of office location (municipal clearance, lease, or municipal bill).

Transformation goals:

• 51% Black-owned suppliers score 10 preference points.
• Eastern Cape based suppliers score 5 points.
• 51% Black Women-owned: 1 point.
• 51% Black Youth-owned: 1 point.
• SMMEs: 3 points.

Before starting work, the successful bidder must produce for approval:

• Project-specific Safety, Health & Environmental (SHE) risk assessments, covering activity-specific risks, risks to ELIDZ and ELIDZ's risks to the bidder.
• SHE plans and safe work procedures (e.g. waste management, fall protection).
• List of required PPE.
• Letters of Good Standing from Workmen's Compensation (where applicable).
• Applicable legal appointments.
• List of chemicals and Material Safety Data Sheets.

All of the above must be filed in a SHE file, together with scope of work, appointment copy, PPE issue register, training/competency certificates, and medicals where applicable (e.g. fit-to-work-at-height certificates).

Contract will be an Energy Performance Contract (EnPC) based on the winning bidder's proposal, incorporating all sections of the RFP. A written Service Level Agreement (SLA) will be required, based on the EnPC.

The successful bidder must provide a Deed of Guarantee equal to 5% of the capex investment value within 21 days of signing the award letter.

Payment: monthly instalments of verified savings, with 20% share to ELIDZ; processing within 30 days of a complete claim (as detailed in financial requirements).

The bidder must enter into a Confidentiality Agreement regarding ELIDZ's customer information and operations.

Special conditions: modification of terms must be mutually agreed in writing; all prices inclusive of VAT; set-off rights for the client; supplier development plan required if contract value >R5,000,000 on a consecutive basis.

Inadequate performance: ELIDZ may issue a written notice; if the bidder fails to remedy within 14 days, ELIDZ may cancel the contract and recover costs.

Termination and remedies: ELIDZ may terminate the contract and recover all payments if the bidder misrepresents facts.

Additional functionality evaluation details (as per the matrix):

• Projected energy savings: full score (15) for savings ≥75% with clear baseline and credible modelling; scores reduce for lower savings percentages.
• Quality of equipment: full score (15) for all equipment with national/international certification (SABS, IEC) and ≥5-year warranty, and bidder being Tier 1 SANEDI-registered; partial scores for good-quality reputable brands with some missing documents, acceptable quality with warranty <3 years or standard specs, weak documentation or unknown brands.
• M&V Plan (IPMVP): full score (10) for full IPMVP compliance with clear KPIs, responsibilities and frequency; partial for partial application or unclear methodology, generic plan, weak M&V with gaps, or no M&V.
• M&V Protocols Experience: full score (10) for experience on 3 or more reference projects; 7 for two, 5 for one, 3 for limited, 0 for none.
• Implementation Plan & Timeline: full score (10) for ≤6 months with detailed timeline and resource plan; 7 for 6–9 months; 5 for acceptable timeline with some missing detail; 3 for >9 months or weak planning; 0 for none.
• Bidder Expertise and Resource: PM qualification and experience (8 points max) and project completion track record (7 points max) as detailed in the main evaluation criteria.
• References: up to 20 points based on referees' scores.