Leasing and development of 35 medium value properties (27 economic units) for revenue generation – eastern cape

Closing date: 26 January 2027 at 11:00

Pre-tender briefing: 12 November 2026 at 11:00, virtual via Teams (non-compulsory but attendance required). Link: https://teams.microsoft.com/meet/3712357299334401?p=ewpBPVuekuXP0XIBfh

Bid validity: 120 calendar days from closing date.

A non-compulsory pre-tender briefing meeting will be held on 12 November 2026 at 11:00 virtually via Teams. Prospective tenderers are required to attend. Link: https://teams.microsoft.com/meet/3712357299334401?p=ewpBPVuekuXP0XIBfh

SCM enquiries:

• Email: [email protected]
• Telephone: 040-602 4000

Technical/project-specific enquiries (by district):

• Head Office: [email protected]
• Alfred Nzo District: [email protected]
• Amathole and Buffalo City Districts: [email protected]
• Chris Hani Region: [email protected]
• Joe Gqabi District: [email protected]
• Nelson Mandela and Sarah Baartman Districts: [email protected]
• O.R. Tambo District: [email protected]

Fraud, Complaints & Tender Abuse Hotline: 0800 701 701 (toll free)

Submission address: Department of Public Works & Infrastructure, Qhasana Building, Ground floor, Bhisho

Submission method: sealed envelope deposited in the bid box at the Department of Public Works & Infrastructure, Qhasana Building, Ground floor, Bhisho, not later than 11:00 on 26 January 2027.

• Envelope must be clearly marked with the bid number, bid description and closing date.
• Bids submitted by courier must be deposited by the courier in the bid box before closing; the Department accepts no responsibility for bids handed to officials.
• Late, incomplete, unsigned, faxed or emailed bids will not be accepted.
• Bids must be submitted on the original official forms, not re-typed.
• One or two offers per bidder are allowed; bidders may not submit a bid while in agreement with other bidders as a joint venture or consortium.

Returnable documents (all must be completed, signed and returned):

• SBD 1 (Invitation to Bid): Part A completed, Part B fully completed with date, signature and amount.
• SBD 3.1 (Pricing Schedule – Firm Prices): completed for each property/erf bid.
• SBD 4 (Declaration of Interest): discloses any interest in related enterprises; incomplete or unsigned SBD 4 makes the bid non-responsive.
• SBD 6.1 (Preference Points Claim): completed and signed to claim specific goal points.
• Annexure A (Resolution to Sign): completed and signed where applicable.
• Annexure B: completed and signed.
• Annexure C (Consent to Background Check): signed by each director of the entity.
• Proof of authority to sign (e.g. company resolution) must be submitted.
• For joint ventures/consortia, a signed agreement by all parties must be submitted.
• Funding model and letter of intent demonstrating funding sources.
• Detailed cash flow projections for each property/unit bid.
• B-BBEE certificate (if registered) from a SANAS-accredited agency or CIPC.

Evaluation in three phases:

• Phase One: Compliance and responsiveness to bid rules and conditions.
• Phase Two: Functionality – minimum qualifying score: 70/100.
• Phase Three: Price and PPPFA preference points.

PPPFA points system: 90/10 or 80/20 (price/specific goals).

• Award per item (erf)/economic unit to the highest point scorer, unless circumstances justify otherwise.
• Bidders scoring less than 70% on functionality are eliminated.
• SBD 6.1 must be completed and signed to claim specific goal points; failure results in no points for specific goals.
• Joint ventures/consortia: preference points allocated proportionately; a JV/consortium agreement must be submitted to substantiate points claimed.
• All information verified through CSD where applicable.

The Eastern Cape Department of Public Works and Infrastructure invites proposals for the long-term leasing and development of 35 medium value properties (comprised of 27 economic units) approved for revenue generation. Properties include vacant land, commercial and coastal properties across the province.

• Lease period: 30 years, with option to renew at the Department's discretion.
• Development period: 30 months for planning and construction, after which the 30-year lease commences.
• Rent commences after completion of construction or after the maximum 30-month period, whichever comes first.
• Bidders may bid for one or more items (erven/economic units); a development proposal must be submitted for each item bid.
• The Department reserves the right not to award more than two economic units/erven to one bidder.
• Bidder responsibilities: rezoning, services connections (sewer, electricity), municipal rates and taxes, registration of notarial lease at Deeds Registry, and all statutory approvals.
• Rezoning application must be submitted within 30 days of lease signature; development plans must be approved within 6 months of lease signature.
• Bidder must comply with SPLUMA and NEMA, including handling servitudes.
• Funding: within 6 months of lease signature, bidder must obtain a loan/bank guarantee from an FSCA-registered funder covering 100% of development cost, or demonstrate how shortfall will be funded; failure leads to elimination.
• A first mortgage bond over the property will be registered as security for the loan.
• If suspensive conditions are not fulfilled, the agreement lapses.
• Bidders must submit a detailed Project Implementation Plan within 21 days of award, including commitment from potential clients or funding confirmation.

Bidders must submit a detailed Project Implementation Plan within 21 days of award, including commitment from potential clients or funding confirmation. Bidders must provide a development proposal for each item/erf, including detailed cash flow projections reflecting capital investment, development costs, expected return, and other expenses. The development proposal must cover approach, proposed resources, concept document, costing, and project deliverables with timelines from pre-planning to occupation.

Pricing must be entered on SBD 3.1 for each property/erf, including total rental per month and over 30 years. Only firm prices accepted. Minimum escalation of 7% per annum applies over the 30-year lease. If bid sum in words differs from figures, words govern. The amount on the Form of Offer and Acceptance takes precedence. Bids must remain valid for 120 days. VAT: Department not registered for VAT; VAT vendors must include VAT at 15% and state the VAT amount. Non-VAT vendors who include VAT will be given 21 days to register. Pricing based on current rate of exchange; negotiations may adjust at award.

Pricing format: SBD 3.1 – Pricing Schedule – Firm Prices only. Non-firm prices (including those subject to exchange rate variations) will not be considered.

• Price must be entered for each property/erf: total rental per month and over 30 years.
• Minimum escalation: 7% per annum over the 30-year lease period, subject to adjustment per Treasury Regulations and CPI at the Department's discretion.
• If the bid sum in words differs from figures, the words govern.
• The amount on the Form of Offer and Acceptance takes precedence over any other total; no amount means non-responsive.
• Bids must remain valid for 120 days from closing date.
• VAT: The Department is not registered for VAT. If the offer is VAT inclusive, the VAT registration number must be indicated. Non-VAT vendors who include VAT in prices will be given 21 days to register with SARS after appointment. VAT vendors must state the VAT amount and include VAT at 15%.
• Pricing must be based on current rate of exchange; negotiations may adjust pricing at award.
• Bidders must provide a funding model and letter of intent demonstrating funding sources.
• Detailed cash flow projections required for each property/unit, reflecting capital investment, development costs, expected return and other expenses.
• Penalty provisions apply if the successful bidder withdraws, fails to fulfil the contract, or refuses to sign the agreement.

CSD registration: bidders must be registered on the Central Supplier Database and provide a CSD number.

Tax compliance: bidders must be tax compliant; submit a SARS Tax Compliance Status (TCS) PIN or certificate, or a CSD number if no TCS PIN. Tax matters verified through CSD; bidders given up to 7 working days to correct tax matters, otherwise eliminated.

• No bids from persons in the service of the state, or companies/close corporations with directors/members in the service of the state.

B-BBEE: if registered, a B-BBEE certificate from a SANAS-accredited agency or CIPC must be submitted. Joint ventures/consortia must attach a B-BBEE certificate.

• SBD 4 (Declaration of Interest) must be completed and signed.
• SBD 6.1 (Preference Points Claim) must be completed and signed to claim specific goal points.
• Annexure C (Consent to Background Check) signed by each director.
• Bidders must be a legal entity; joint ventures/consortia must submit a signed agreement.
• Bidders must provide a funding model and letter of intent.
• Bidders must provide detailed cash flow projections for each property/unit.

As part of risk assessment, the Department will conduct background checks (including credit and security checks) on entities and their directors. Each director must sign and return the consent form (Annexure C). The Department reserves the right to verify the operational office of the service provider.

Bidders must comply with SPLUMA and NEMA: submit rezoning applications within 30 days from lease signature, obtain all statutory approvals, submit development plans for approval within 6 months, and handle cancellation/protection/relocation of servitudes. Environmental impact assessment may be required as part of the development proposal.

Contract period: 30-month development period followed by a 30-year lease. The Department may accept or reject any bid, cancel the bid process, or reject all bids at any time before contract formation. The Department may award the contract to a bidder that did not score the highest points subject to risk assessment. The successful bidder must sign a formal contract and may be required to provide sureties. The bidder must insure personnel and equipment and indemnify the Department against all claims. The Department is not liable for claims, damages, accidents or injuries arising from the contract. Bids must remain valid for 120 days. Penalty provisions apply if the successful bidder withdraws, fails to fulfil the contract, or refuses to sign the agreement; the bidder may be liable for re-advertisement costs and the difference between the accepted bid price and a less favourable alternative. Disputes will be settled by litigation. The bidder must submit progress reports as agreed. The bidder bears all preparation costs. The bidder indemnifies the Department for breaches. The bidder participates at its own risk; the Department is not liable for costs or damages. South African law governs; bidders submit to exclusive jurisdiction of South African courts. Bidders may not recruit Department employees. Contract variations may be negotiated. Pricing based on current rate of exchange; negotiations may adjust pricing at award. The bidder must not communicate with Department officials between closing and award except through specified channels.

The bid will be awarded per item (erf)/economic unit. The Department reserves the right not to award more than two economic units/erven to one bidder to mitigate concentration risk. Successful bidders will be granted 30 months for planning and construction, after which a 30-year lease commences. Rent commences after completion of construction or after the maximum 30-month period, whichever comes first. The bidder is responsible for rezoning, services connections, municipal rates and taxes, and registration of the notarial lease at the Deeds Registry. The bidder must complete development within 30 months; failure may result in liability for rental determined by a professional valuer. The bidder must pay property rates and taxes and municipal services over the lease period including development period. The Department will contract via a long-term lease agreement. The transaction is subject to suspensive conditions including funding approval within 6 months from a funder registered with FSCA, and registration of a first mortgage bond as security. If suspensive conditions are not fulfilled, the agreement lapses. Bidders may apply for extension of the development period in writing at least 120 days prior to expiry.

Bidders must comply with tax obligations and submit a SARS PIN or CSD number. No bids from persons in the service of the state or companies with directors who are state employees. Bidders must provide a funding model demonstrating how funding will be sourced (e.g., letter of intent). Bidders must submit a detailed cash flow projection for each property/unit. Bidders must complete and sign SBD 4 (Declaration of Interest). Bidders must provide a development proposal for each item/erf bid. Bidders must sign consent for background checks (Annexure C). Bidders must complete and sign Annexure B. Bidders must submit a resolution to sign where applicable. Bidders must provide a B-BBEE certificate if registered (SANAS-accredited or CIPC).

Evaluation in three phases: Phase One – Compliance and responsiveness; Phase Two – Functionality (minimum 70 points required); Phase Three – Price and PPPFA preference points. PPPFA points: 90/10 or 80/20 (price/specific goals). Award per item (erf)/economic unit to highest point scorer. Bidders scoring less than 70% on functionality are eliminated. SBD 6.1 must be completed and signed to claim specific goal points. Joint ventures/consortia must submit an agreement to substantiate points claimed. All information verified through CSD where applicable.