Five-year contract for total management of mkhondo local municipality's electricity distribution network

• Compulsory briefing session: 29 July 2026 at 10h00, Auditorium Level 2.
• Closing date for tender submission: 12 August 2026 at 12H00.
• Tender validity period: 90 days after the closing date.

• Technical queries: Contact Mr. Bongile Mdutyulwa, Tel: 017 801 7044, Email: [email protected]
• Tender document enquiries: Contact Mr. Lucky Mbuyane, Tel: 017 801 7155, Email: [email protected]
• Submission address: Main Reception, Gert Sibande District Municipality, Corner of Joubert and Oosthuise Streets, Ermelo, 2351.

• Submit a complete set of bid documents, including all required forms and company profile.
• The original bid document must be submitted together with your detailed proposal (Annexure B).
• Bids must be placed in a sealed envelope clearly marked: “THE MUNICIPAL MANAGER, GERT SIBANDE DISTRICT MUNICIPALITY, GSDM: 91/2025, REQUEST FOR A PROPOSAL FOR THE MANAGEMENT, OPERATION, MAINTENANCE, CAPITAL AND REVENUE ENHANCEMENT OF ENTIRE ELECTRICITY DISTRIBUTION NETWORK AT MKHONDO LOCAL MUNICIPALITY FOR A PERIOD OF FIVE YEARS”.
• Deposit the sealed envelope in the bid box at the Main Reception, Gert Sibande District Municipality, Corner of Joubert and Oosthuise Streets, Ermelo, 2351.
• Submission deadline: 12 August 2026 at 12H00. Late bids will not be considered.
• Telegraphic, facsimile, or email submissions are not permitted, except for amendments or withdrawals.
• Bids must be signed by an authorised agent and all pages initialled.
• Failure to complete all requirements, including returnable documents, will lead to disqualification.

Must be registered on Central Supplier Database (CSD), provide Tax Compliance Status PIN, not be in service of the state, provide municipal clearance certificate, submit B-BBEE certificate or sworn affidavit, attend compulsory briefing session, submit only one conforming bid, and meet minimum functionality criteria. Foreign suppliers must complete additional questionnaire.

• Scope: Total management, operation, maintenance, capital and revenue enhancement of the entire electricity distribution network at Mkhondo Local Municipality for five years.
• The service provider will be the exclusive electricity utilities services provider, responsible for the retail business (metering, billing, revenue collection, customer care).
• Key deliverables include: financial baseline determination, network asset register, tariff review and NERSA applications, 24/7 customer care desk, master plan development, energy management initiatives, utility services oversight.
• The service provider must provide an initial investment of R20 million, all necessary vehicles, plant, and equipment.
• Must adhere to NERSA distribution license conditions.
• Must accommodate and train existing municipal employees and provide specified technology systems (meter reading, vending, billing, fault desk, SMS).
• The network involves Medium & Low voltage equipment from 220V to 88KV.

• Bidders must submit a detailed cost proposal on official quotes, showing trade name, legal name, VAT number, addresses, banking details.
• Rates must not be unbalanced.
• The original bid price is valid for 90 days after the closing date.
• Payment terms: within 30 days after receipt of a valid invoice.
• The service fee shall increase based on the average tariff percentage increase approved by NERSA each financial year.
• The municipality reserves the right to alter quantities based on supplied rates.

• All bidders must be registered on the Central Supplier Database (CSD).
• Submit a valid Tax Compliance Status PIN from SARS or a CSD number.
• For consortia/JVs/sub-contractors, each party must submit a separate TCS PIN/CSD number.
• Foreign suppliers must complete a pre-award questionnaire.
• Submit a B-BBEE Status Level Verification Certificate or Sworn Affidavit (for EMEs & QSEs) to qualify for preference points.
• Provide clearance from the municipality where the bidder is based, confirming no arrears on municipal services accounts.
• No bids will be accepted from persons in the service of the state.

• The tender data outlines the rules of the tender and the evaluation method.
• A functionality evaluation is a prerequisite for further consideration under the 90/10 points system.