Leasing and development of 39 high value properties – government tender in eastern cape

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 District: [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, before 11:00 on 28 January 2027.

Envelope must be clearly marked with the bid number, description, and closing date.

Bids sent by courier must be deposited in the bid box by the courier before closing; the Department is not responsible for bids handed to officials.

Bids that are late, incomplete, unsigned, or submitted by fax or email will not be accepted.

Bids must be submitted on the original documents provided; do not retype.

Returnable forms (all must be completed and signed):

• SBD 1 Part A and Part B: bidder details, tax compliance status, and declaration.
• SBD 3.1 (Pricing Schedule – Firm Prices): completed for each erf/economic unit 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): required to claim specific goals points.
• Annexure A (Resolution to Sign): required where applicable.
• Annexure B: must be completed and signed.
• Annexure C (Consent to Background Check): each director must sign and return.
• Proof of authority to sign (e.g., company resolution) must be submitted.
• Joint ventures/consortia must submit a signed agreement by all parties.
• Bidders must provide a funding model/letter of intent and detailed cash flow projections for each property bid.
• Bidders may submit one or two offers per bidder; not allowed to bid while in agreement with other bidders in a joint venture or consortium.

Evaluation in three phases:

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

Preference points system: 80/20 or 90/10 (PPPFA).

Functionality criteria (maximum 100 points):

• Project Development Proposal: 100 points (includes implementation plan, design brief, demonstrated experience in property development, detailed business plan, empowerment plan).
• Bidders scoring less than 70% on functionality are eliminated.

Award per item (erf/economic unit) to the highest point scorer, unless circumstances justify otherwise.

A contract may be awarded to a bidder that did not score the highest points, subject to risk assessment.

Bidders must complete and sign SBD 6.1 to claim specific goals points; failure results in no points for specific goals.

For joint ventures/consortia, preference points are scored based on the qualifying entity for each specific goal, subject to proof.

The Eastern Cape Department of Public Works and Infrastructure invites proposals for the leasing and development of 39 high value properties (comprised of 29 economic units) approved for revenue generation.

Properties include vacant land, commercial and coastal properties, and vandalised structures, located across the province (Amathole, Buffalo City, Chris Hani, Nelson Mandela Bay, O.R. Tambo, Sarah Baartman districts).

Lease period: 30 years, with an option to renew at the Department's discretion.

Development period: 30 months for planning and construction, after which the 30-year lease commences.

Bidders must submit a development proposal for each erf/economic unit they bid for, including:

• Project Development Proposal (implementation approach, concept document, costing and cash flows, project deliverables with timelines).
• Design Brief (site plan, town planning information, footprint, elevations, services layout, public access, drainage).
• Detailed Business Plan (executive summary, business description, market research, SWOT analysis, management team, products/services, marketing and sales plan, financial plan, market/industry analysis).
• Empowerment Plan (job creation plan, training and development, community benefit, enterprise development).
• Demonstrated experience in property development (projects in the last 10 years, with capital values).
• Funding model/letter of intent and detailed cash flow projections for each property.

Bidders must comply with SPLUMA and NEMA: rezoning application within 30 days of lease signature; all statutory approvals; development plans approved by local authorities before construction.

Bidder responsible for rezoning, services connections (sewer, electricity), municipal rates and taxes, and registration of notarial lease at the Deeds Registry (for leases 10 years or longer).

Pricing: Bidders must enter total rental per month and over 30 years for each erf/economic unit on SBD 3.1.

Minimum escalation: 7% per annum over the 30-year lease period, subject to adjustment by Provincial Treasury or CPI.

If bid sum in words differs from figures, words govern.

Bidders must provide a funding model demonstrating how funding will be sourced (e.g., letter of intent).

Detailed cash flow projections required for each property, reflecting capital investment, development costs, expected return, and related expenses.

VAT: The Department is not registered for VAT. VAT vendors must include VAT at 15% in their offers; non-vendors who include VAT will be given 21 days to register after appointment.

Bid security: not specified.

Payment of rent commences upon completion of construction or after 30 months, whichever comes first.

If development not completed within 30 months, bidder liable for rental determined by a registered Professional Valuer.

Bidder responsible for property rates and taxes and municipal services over the lease period, including development period.

CSD registration: Bidders must be registered on the Central Supplier Database and provide their CSD number.

Tax compliance: Bidders must be tax compliant; provide SARS Tax Compliance Status PIN or CSD number. Tax matters verified through CSD. Bidders given up to 7 working days to correct tax matters; failure leads to elimination.

B-BBEE: If registered, submit a B-BBEE certificate from a SANAS-accredited agency or CIPC. Complete and sign SBD 6.1 to claim preference points.

Bidders must not be persons in the service of the state, nor companies/close corporations with directors/members in the service of the state.

Bidders must be a legal entity; joint ventures/consortia must submit a signed agreement.

Bidders must complete and sign SBD 4 (Declaration of Interest); incomplete or unsigned SBD 4 renders the bid non-responsive.

Bidders must complete and sign Annexure C (consent to background check) for each director.

Bidders must complete and sign Annexure B.

Bidders must provide a resolution to sign where applicable.

Bidders must submit a funding model/letter of intent and cash flow projections.

Bidders must not have previously been awarded a development lease without fully complying with suspensive conditions.

Bid validity: 120 calendar days from closing date.

Penalties: If the successful bidder withdraws, fails to fulfil the contract, or refuses to sign the agreement or provide surety, they are liable for the Department's costs to re-advertise and the difference between the original bid price and any less favourable alternative or new bid price.

Disputes: resolved through litigation; if not resolved internally, by mitigation, arbitration, then litigation.

Indemnity: Bidder indemnifies the Department against claims, damages, accidents, injuries arising from contract execution; bidder must insure personnel and equipment.

Limitation of liability: Department not liable for bidder's costs or damages from participating in the bid process.

Governing law: South African law; exclusive jurisdiction of South African courts.

Confidentiality: Bidders must keep bid contents and related information confidential.

Contract variations: Department may vary, expand, amend, or modify contract quantities after contract conclusion.

Precedence: The bid document prevails over any information provided during briefing sessions unless expressly amended in writing.

Bidders bear all preparation costs.

Department not bound to accept the highest bid or any bid; may cancel the bid process at any time.

Bidders may not recruit Department employees during bid preparation or contract execution.

Department may require sureties for due fulfilment of the contract.

Department will contract with the successful bidder by signing a formal contract (long-term lease agreement).