Provision of external loans to mossel bay municipality – western cape tender

{"closingDate":"25 SEPTEMBER 2026","closingTime":"12:00","briefingSession":"{"date":null,"time":null,"venue":"arrive or log in 15 minutes or more after the advertised time the meeting starts will not be allowed to attend","is_compulsory":true}"}

{"name":"Ms Sheressa","email":"[email protected]","phone":null,"department":"SUPPLY CHAIN MANAGEMENT","address":"XTERNAL LOANS TO THE MOSSEL BAY"}

Tender documents must be submitted on original documents, fully completed and signed in black ink. Section 5: DECLARATION must be completed and signed. Tender documents may not be retyped. The complete original tender document must be returned. No unauthorised alterations allowed. Compulsory documentation includes: Tax Compliance Status Pin from SARS (each JV member separately), CIDB registration if applicable, municipal rates and taxes accounts (or affidavits if not owning property), Authorised Signatory resolution, Letter of Good Standing from Compensation Commissioner, and proof of B-BBEE status level (sworn affidavit or certificate).

Bidders must be registered financial institutions. Must be registered on the Central Supplier Database (CSD). Must submit a valid Tax Compliance Status Pin from SARS. Must submit a valid Letter of Good Standing from the Compensation Commissioner. Must not be in arrears with municipal rates and taxes for more than three months. Must submit a copy of the resolution authorising the signatory. Must submit proof of B-BBEE status level (sworn affidavit or certificate). Must submit proof of locality (municipal account, lease agreement, or sworn affidavit). If applicable, must have a valid CIDB registration (not suspended, inactive, or deregistered). Joint ventures must submit a joint venture agreement and each member must submit individual tax pins and letters of good standing.

Provision of external loans to the mossel bay municipality

In terms of the provisions of Section 21A of the Local Government Municipal Systems Act (Act ), in conjunction

with Section 46 of the Municipal Finance Management Act (No ), an invitation is hereby extended to registered

financial institutions to express an interest to provide loans to the Mossel Bay Municipality, which will be used to fund

certain capital project

Key Performance Indicators: 1) Signing of debt agreements – Target 100% achievement, measured by signed debt agreements before or on the date of first draw-down, frequency once off. 2) Disbursement of funds according to debt agreement or any other dates – frequency as indicated.

No specific experience or qualifications content found in the unclassified content.

opening of the bid to the time the contract is awarded. If a bidder wishes to bring additional information to the

notice of the Mossel Bay Municipality, it should do so in writing to the Mossel Bay Municipality. Any effort by

the firm to influence the Mossel Bay Municipality in the bid evaluation, bid comparison or contract award

decisions may result in the rejection of the bid.

1.2.16 Opening, Recording and Publications of Tenders Received

(a) Tenders will be opened on the closing date immediately after the closing time specified in the bid

documents. If requested by any bidder present, the names of the bidders, and if practical, the total

amount of each bid and of any alternative offers will be read out aloud.

(b) Details of tenders received in time will be recorded in a register which is open to public inspection.

1.2.17 Evaluation of Tenders

8.1 All pre-bidding testing will be for the account of the bidder.

8.2 If it is a bid condition that goods to be produced or services to be rendered should at any stage be subject to inspections, tests and

analyses, the bidder or contractor’s premises shall be open, at all reasonable hours, for inspection by a representative of the purchaser

or organization acting on behalf of the purchaser.

8.3 If there are no inspection requirements indicated in the bidding documents and no mention is made in the contract, but during the contract

period it is decided that inspections shall be carried out, the purchaser shall itself make the necessary arrangements, including payment

arrangements with the testing authority concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the goods to be in accordance with the contract

requirements, the cost of the inspections, tests and analyses shall be defrayed by the purchaser.

8.5 Where the goods or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements, irrespective of whether

such goods or services are accepted or not, the cost in connection with these inspections, tests or analyses shall be defrayed by the

supplier.

8.6 Goods and services which are referred to in clauses 8.2 and 8.3 and which do not comply with the contract requirements may be

rejected.

8.7 Any contract goods may on or after delivery be inspected, tested or analysed and may be rejected if found not to comply with the

requirements of the contract. Such rejected goods shall be held at the cost and risk of the supplier who shall, when called upon, remove

them immediately at his own cost and forthwith substitute them with goods, which do comply with the requirements of the contract.

(Municipal Area/Province where Business is Located) *

CIDB REGISTRATION NR* (if applicable)

TENDER AMOUNT (VAT included)

• Rates

(* - To be completed by bidder)

SECTION 1 PAGE nr

1.1 Invitation to tender 3

1.2 Tender conditions and information 4

1.3 General conditions of contract 12

Section 2

2.1 Terms of reference 18

2.2 Pricing schedule 23

Section 3

3.1 Mbd1: bid requirements of the mossel bay municipality 25

Section 4

4.1 Mbd4: declaration of interest 28

4.2 Mbd5: declaration for procurement above r10 million 31

Mbd6.1: Preference points claim form in terms of the preferential

4.3 32

Procurement regulations, 2022

4.4 Municipal rates and taxes 38

4.5 Authorised signatory 39

Mbd8: declaration of bidder’s past supply chain management

4.6 40

(d) The Tax Compliance Status Pin will be verified by the Municipality on the SARS website.

1.2.8 Other Documentation

1.2.8.1 Construction Industry Development Board (CIDB) (If applicable)

(a) When applicable, the bidder’s CIDB registration number must be included with the tender. The Municipality

will verify the bidder’s CIDB registration during the evaluation process.

(b) A bidder will be non-responsive, if the CIDB status of the bidder indicates suspended or inactive or

deregistered on the day of evaluation.

1.2.8.2 Municipal Rates, Taxes and Charges

(a) A copy of the bidder’s and those of its director’s/members municipal accounts (for the Municipality where the

bidder and its director’s/members pay their account) for the month preceding the quotation closure date

must accompany the bid documents. If such a copy does not accompany the bid document of the

successful bidder, the Municipality reserves the right to obtain such documents after the closing date to

verify that their municipal accounts are in order.

(b) Any bidder which is or whose directors are in arrears with their municipal rates and taxes or municipal

charges due to any Municipality or any of its entities for more than three months and have not made an

arrangement for settlement of same before the bid closure date will be unsuccessful. The arrangement for

settlement for the outstanding amount (which were done before the closing date of the bid), must also be

submitted with the bid document.

(c) If a bidder and its director’s/members rent their premises, the current lease agreement must be submitted

with the tender document, which indicates that the rental includes their municipal rates and taxes. If the

lease agreement indicates that the bidder or its director’s/members are responsible to pay the municipal

rates and taxes, the Municipal Account of the leased premises indicated must also be submitted.

(d) If a bidder and its director’s/members, do not own any property, they must submit the following:

(i) Affidavit from the bidder and its director’s/members, that they do not own any property;

(ii) Affidavit from the owner of the property where business is situated/director’s/members reside, that

the bidder and its director’s/members are not liable for the municipal rates and taxes.

(e) If a bidder and its director’s/members, lives outside of South Africa, an affidavit must be submitted.

(f) If a bidder or its director’s/members, lives outside of South Africa, an affidavit must be submitted by the

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other such levies imposed outside the

purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until delivery of the contracted goods to the

purchaser.

32.3 No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the award of a bid SARS must have certified

that the tax matters of the preferred bidder are in order.

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipal services charges are in arrears.

capital projects

Sewerage Loan R17 600 000 15 years Wednesday, 30 June 2027

Water Treatment Loan R42 500 000 15 years Wednesday, 30 June 2027

Total R60 100 000

Amortisation Table: Amortisation tables should be provided for each of the loans indicated above in point

2.1.3.

Period of Loans: The loan periods have been structured in such manner that it will not exceed the

estimated useful life of the assets. The proposal must indicate details for each loan

period as indicated on the table above in point 2.1.3.

Repayment of Loans: The instalments must be bi-annually payable over the life of the loans as mentioned

above. Payable on 30 June and 31 December of each year of the loan periods. No

capitalisation of interest will be allowed.

Loan Securities: The loans must be unsecured.

Interest rate options: Bidders must provide a fixed rate option that must be valid for 120 days after closing

of the bid or floating interest rate with the option to fix the floating rate. The floating

rate must be linked to either ZARONIA, Repo rate or Prime interest rate. The all-in

margin above or below the ZARONIA, Repo rate or Prime interest rate must be fixed

until the loan is repaid in full in the case of both fixed rate or floating interest

rate. No allowance for changes to the all-in margin will be allowed.

Foreign Exchange: Mossel Bay Municipality will not accept any loans that is indexed to, or affected by,

fluctuations in the value of the Rand against any foreign currency.

2.1.4 Information required

2.1.4.1 The following information must be included in the submission:

2.1.4 .1.1 Pricing: Firm prices for each loan must be quoted separately on the following basis:

• Fixed rate over period of loan, or
• Floating rate with a fixed margin above or below the base rate linked to the:

o ZARONIA ;

o Repo rate or

o Prime rate; and

2.1.4.1.2 The appropriate base rate to be used must be the rate as at 12h00 on 18th September 2026.

2.1.4.1.3 No changes for whatever reason will be allowed to the fixed all-in margin, and

2.1.4.1.4 All above rates must be fixed for the loan term with the only variable being the base rate, namely ZARONIA,

Repo rate or prime rate changes; and

2.1.4.1.5 No other method of calculation or link of the floating rate will be accepted. Any other method will be declared as

non-responsive.

For each option in 2.1.4.1 a separate amortisation table should be provided per loan amount as listed in 2.1.3. The bids

will only be evaluated on the option for which an amortization table has been submitted. Amortisation tables should indicate

the monthly calculations, although no interest may be capitalised.

Target: 100% achievement.

Measurement: Money reflected in the Primary bank account of the Mossel Bay Municipality on the date as mutually

agreed.

Frequency: Annually

2.1.10.3 Indicator: bi- annual servicing/payment of the instalment as per the debt agreement

Target: 100% achievement.

Measurement: Money paid over to the financing institution on a bi-annual basis

Frequency: Bi- annually (31 December and 30 June of each year)

2.1.10.4 Indicator: service render complies with specifications set in tender/project document

Target: 100% achievement.

Measurement: Compliance with all specifications of the bid document measured after closure of each financial period,

measurement to be completed by 31 July of each year.

Frequency: Annually

2.2. Pricing instruction and schedule

be assumed in the contract that the tenderer has taken into account when developing his prices.

2.2.1. The short descriptions given in the pricing schedule below are brief descriptions used to identify the activities for

which prices are required. Detailed descriptions of the activities to be priced are provided in the Specifications

under the scope of work.

2.2.2. For the purpose of the pricing schedule, the following words shall have the meanings hereby assigned to them:

2.2.2.1. Loan description means the purpose of the loan.

2.2.2.2 Loan Amount is the amount that is required by the Municipality on the drawdown date.

2.2.2.3 Loan term is the term of the required loan in years.

2.2.2.4. Interest rate quoted is the Based rate (ZARONIA, Repo rate or Prime rate as on specified date) plus or minus the

fixed (firm) All-in Margin.

2.2.2.5 Total interest and other cost to be paid to the bidder over the full term of the loan, if all conditions are met.

2.2.3 The pricing to be indicated is based on estimated amounts as per the current approved budget and is only

used for evaluation purposes. The final amounts will be made available after approval of the Adjustment Budget

in February 2027.

2.2.4 Only, firm pricing will be accepted, non-firm prices (including prices subject to changes in fixed All-in margin rates

or rates of exchange variations) will not be considered.

2.2.5 The bidder may opt to only bid for one of the options. The bidder must however bid for all the loans.

2.2.6. The bid will be evaluated based on the cost of contract of each option

2.27. No other format of pricing schedule, as prescribed in the pricing schedule below will be allowed.

2.2.8 A preferred and alternative bidder may be appointed depending on responsiveness.

Tax Compliance Status Pin, printed from the South African Revenue Service (SARS) website,

Tax Compliance Status

Tax Compliance Status Pin as an attachment to the bid documents, the

Tax Compliance Status Pin will be verified by the Municipality on the SARS website

Tax compliance status pin

Tax compliance requirements

Tax compliance status (tcs) certificate or pin may also be made via e-filing

Tax compliance status system pin code from the south african revenue service (SARS) and if not

Csd number

Csd number must be provided

Central supplier database registration nr*

Central Supplier Database to register without delay on the

Central Supplier Database

Central supplier database (csd),

Joint venture agreement 48

Joint venture agreement must be submitted as part of the bid documents

Joint venture agreement may be made without the prior approval of the Municipality

Joint Venture agreement

Joint venture agreement as detailed on pages 48-50

2.27. No other format of pricing schedule, as prescribed in the pricing schedule below will be allowed.

(ii) If the address as indicated in bid document is not in the name of the bidder, the latest lease agreement for

premises should be established/leased prior to the advertisement date.

1.2.28 Letter of Good Standing from the Commissioner of Compensation

(a) A valid AND relevant Letter of Good Standing from the Compensation Commissioner or a copy thereof,

of Good Standing from the Compensation Commissioner or a copy thereof with the bid documents.

(c) If a bid is not supported by a valid AND relevant Letter of Good Standing from the Compensation

Points Allocation: 20 points

B-BBEE Details: TDR18/2026/2027

Provision of external loans to the mossel bay

Municipality

Closing date: 25 september 2026 closing time: 12:00

Name of bidder*

Trading name*

Address*

Telephone number*

Cellphone number*

E-mail address*

Central supplier database registration nr*

B-bbee level of contribution*

Locality

(Municipal Area/Province where Business is Located) *

CIDB REGISTRATION NR* (if applicable)

TENDER AMOUNT (VAT included)

• Rates

(* - To be completed by bidder)

Prepared by:

Mossel Bay Municipality

PO Box 25

Mossel Bay

6500

Index

SECTION 1 PAGE nr

1.1 Invitation to tender 3

1.2 Tender conditions and information 4

1.3 General conditions of contract 12

Section 2

2.1 Terms of reference 18

2.2 Pricing schedule 23

Section 3

3.1 Mbd1: bid requirements of the mossel bay municipality 25

Section 4

4.1 Mbd4: declaration of interest 28

4.2 Mbd5: declaration for procurement above r10 million 31

Mbd6.1: Preference points claim form in terms of the preferential

4.3 32

Procurement regulations, 2022

4.4 Municipal rates and taxes 38

4.5 Authorised signatory 39

Mbd8: declaration of bidder’s past supply chain management

4.6 40

Practices

4.7 Mbd9: certificate of independent bid determination 42

Section 5 declaration 45

Section 6 contract form 46

Joint venture agreement 48

Section 1.1: Invitation to tender

Closing time: 12:00 closing date: 25 september 2026

TDR18/2026/2027: provision of external loans to the mossel bay municipality

In terms of the provisions of Section 21A of the Local Government Municipal Systems Act (Act ), in conjunction

with Section 46 of the Municipal Finance Management Act (No ), an invitation is hereby extended to registered

financial institutions to express an interest to provide loans to the Mossel B

B-BBEE status level verification certificate or sworn affidavit (for EMEs & QSEs) must be submitted to qualify for preference points. Proof of B-BBEE status level: sworn affidavit as prescribed by B-BBEE Codes of Good Practice, or certificate from verification agency, auditor/accounting officer, or IRBA-approved registered auditor, with specific requirements.

No specific health and safety content found in the unclassified content.

No specific environmental content found in the unclassified content.

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models, and that they

incorporate all recent improvements in design and materials unless provided otherwise in the contract. The supplier further warrants that

all goods supplied under this contract shall have no defect, arising from design, materials, or workmanship (except when the design

and/or material is required by the purchaser’s specifications) or from any act or omission of the supplier, that may develop under normal

use of the supplied goods in the conditions prevailing in the country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the case may be, have been delivered

to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the date of shipment from the port or

place of loading in the source country, whichever period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable speed, repair or replace the defective

goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the period specified, the purchaser may proceed to take such

remedial action as may be necessary, at the supplier’s risk and expense and without prejudice to any other rights which the purchaser

may have against the supplier under the contract.

16. Payment

16.1 The method and conditions of payment to be made to the supplier under this contract shall be specified.

16.2 The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note and upon fulfilment of other

obligations stipulated in the contract.

16.3 Payments shall be made promptly by the purchaser, but in no case later than thirty (30) days after submission of an invoice or claim by

the supplier.

16.4 Payment will be made in Rand unless otherwise stipulated.

17. Prices

17.1 Prices charged by the supplier for goods delivered and services performed under the contract shall not vary from the prices quoted by

the supplier in his bid, with the exception of any price adjustments authorized or in the purchaser’s request for bid validity extension, as

the case may be.

18. Variation orders

18.1 In cases where the estimated value of the envisaged changes in purchase does not vary more than 15% of the total value of the original

contract, the contractor may be instructed to deliver the goods or render the services as such. In cases of measurable quantities, the

contractor may be approached to reduce the unit price, and such offers may be accepted provided that there is no escalation in price.

19. Assignment

19.1 The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except with the purchaser’s prior written

consent.

20. Subcontracts

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under this contracts if not already specified in the bid. Such

notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with the time schedule prescribed by

the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions impeding timely delivery

of the goods and performance of services, the supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely

duration and its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser shall evaluate the situation and may

at his discretion extend the supplier’s time for performance, with or without the imposition of penalties, in which case the extension shall

be ratified by the parties by amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if an emergency

arises, the supplier’s point of supply is not situated at or near the place where the goods are required, or the supplier’s services are not

readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall render the supplier

liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is agreed upon pursuant to GCC Clause

22.2 without the application of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without cancelling the contract, be

entitled to purchase goods of a similar quality and up to the same quantity in substitution of the goods not supplied in conformity with

the contract and to return any goods delivered later at the supplier’s expense and risk, or to cancel the contract and buy such goods as

may be required to complete the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.

22. Penalties

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the period(s) specified

in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct from the contract price, as a

penalty, a sum calculated on the delivered price of the delayed goods or unperformed services using the current prime interest rate

calculated for each day of the delay until actual delivery or performance. The purchaser may also consider termination of the contract

pursuant to GCC Clause 23.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the supplier, may

terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any extension thereof

granted by the purchaser pursuant to GCC Clause 21.2; (b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practices in competing for or in executing the

contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and in such manner,

as it deems appropriate, goods, works or services similar to those undelivered, and the supplier shall be liable to the purchaser for any

excess costs for such similar goods, works or services. However, the supplier shall continue performance of the contract to the extent

not terminated.

23.3 Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction penalty on the supplier

by prohibiting such supplier from doing business with the public sector for a period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will be allowed a time

period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be imposed. Should the supplier

fail to respond within the stipulated fourteen (14) days the purchaser may regard the supplier as having no objection and proceed with

the restriction.

23.5 Any restriction imposed on any person by the purchaser will, at the discretion of the purchaser, also be applicable to any other enterprise

or any partner, manager, director or other person who wholly or partly exercises or exercised or may exercise control over the enterprise

of the first-mentioned person, and with which enterprise or person the first-mentioned person, is or was in the opinion of the purchaser

actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National Treasury, with the

following information:

(i) the name and address of the supplier and / or person restricted by the purchaser;

(ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction. These details will be loaded in the National Treasury’s central database of suppliers or persons

prohibited from doing business with the public sector.

23.7 If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and Combating of Corrupt

Activities Act, No. , the court may also rule that such person’s name be endorsed on the Register for Tender Defaulters. When

a person’s name has been endorsed on the Register, the person will be prohibited from doing business with the public sector for a period

not less than five years and not more than 10 years. The National Treasury is empowered to determine the period of restriction and

each case will be dealt with on its own merits. According to section 32 of the Act the Register must be open to the public. The Register

can be perused on the National Treasury website

24. Antidumping and countervailing duties and rights

24.1 When, after the date of bid, provisional payments are required, or anti-dumping or countervailing duties are imposed, or the amount of

a provisional payment or anti-dumping or countervailing right is increased in respect of any dumped or subsidized import, the State is

not liable for any amount so required or imposed, or for the amount of any such increase. When, after the said date, such a provisional

payment is no longer required or any such anti-dumping or countervailing right is abolished, or where the amount of such provisional

payment or any such right is reduced, any such favourable difference shall on demand be paid forthwith by the supplier to the purchaser

or the purchaser may deduct such amounts from moneys (if any) which may otherwise be due to the supplier in regard to goods or

services which he delivered or rendered, or is to deliver or render in terms of the contract or any other contract or any other amount

which may be due to him.

25. Force Majeure

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for forfeiture of its performance security,

damages, or termination for default if and to the extent that his delay in performance or other failure to perform his obligations under the

contract is the result of an event of force majeure. 25.2 If a force majeure situation arises, the supplier shall promptly notify the purchaser

in writing of such condition and the cause thereof. Unless otherwise directed by the purchaser in writing, the supplier shall continue to

perform its obligations under the contract as far as is reasonably practical, and shall seek all reasonable alternative means for

performance not prevented by the force majeure event.

26. Termination for insolvency

26.1 The purchaser may at any time terminate the contract by giving written notice to the supplier if the supplier becomes bankrupt or

otherwise insolvent. In this event, termination will be without compensation to the supplier, provided that such termination will not

prejudice or affect any right of action or remedy, which has accrued or will accrue thereafter to the purchaser.

27. Settlement of Disputes

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in connection with or arising out of

the contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then either the purchaser

or the supplier may give notice to the other party of his intention to commence with mediation. No mediation in respect of this matter

may be commenced unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

27.4 Notwithstanding any reference to mediation and/or court proceedings herein, (a) the parties shall continue to perform their respective

obligations under the contract unless they otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier for goods delivered and / or services rendered according to the

prescripts of the contract.

28. Limitation of Liability

28.1 Except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant to Clause 6; (a) the supplier shall

not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or consequential loss or damage, loss of use, loss

of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay

penalties and/or damages to the purchaser; and (b) the aggregate liability of the supplier to the purchaser, whether under the contract,

in tort or otherwise, shall not exceed the total contract price, provided that this limitation shall not apply to the cost of repairing or replacing

defective equipment.

29. Governing language

29.1 The contract shall be written in English. All correspondence and other documents pertaining to the contract that is exchanged by the

parties shall also be written in English.

30. Applicable law

30.1 The contract shall be interpreted in accordance with South African laws, unless otherwise specified.

31. Notices

31.1 Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified mail and any other notice to him

shall be posted by ordinary mail to the address furnished in his bid or to the address notified later by him in writing and such posting

shall be deemed to be proper service of such notice.

31.2 The time mentioned in the contract documents for performing any act after such aforesaid notice has been given, shall be reckoned

from the date of posting of such notice.

32. Taxes and duties

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other such levies imposed outside the

purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until delivery of the contracted goods to the

purchaser.

32.3 No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the award of a bid SARS must have certified

that the tax matters of the preferred bidder are in order.

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipal services charges are in arrears.

33. Transfer of contracts

33.1 The contractor shall not abandon, transfer, cede assign or sublet a contract or part thereof without the written permission of the purchaser

34. Amendment of contracts

34.1 No agreement to amend or vary a contract or order or the conditions, stipulations or provisions thereof shall be valid and of any force

unless such agreement to amend or vary is entered into in writing and signed by the contracting parties. Any waiver of the requirement

that the agreement to amend or vary shall be in writing, shall also be in writing.

35. Prohibition of restrictive practices

35.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. , as amended, an agreement between, or concerted practice by,

firms, or a decision by an association of firms, is prohibited if it is between parties in a horizontal relationship and if a bidder(s) is / are

or a contractor(s) was / were involved in collusive bidding.

35.2 If a bidder(s) or contractor(s) based on reasonable grounds or evidence obtained by the purchaser has / have engaged in the restrictive

practice referred to above, the purchaser may refer the matter to the Competition Commission for investigation and possible imposition

of administrative penalties as contemplated in section 59 of the Competition Act No 89 0f 1998. 35.3 If a bidder(s) or contractor(s) has /

have been found guilty by the Competition Commission of the restrictive practice referred to above, the purchaser may, in addition and

without prejudice to any other remedy provided for, invalidate the bid(s) for such item(s) offered, and / or terminate the contract in whole

or part, and / or restrict the bidder(s) or contractor(s) from conducting business with the public sector for a period not exceeding ten (10)

years and / or claim damages from the bidder(s) or contractor(s) concerned.

Section 2.1: Terms of reference

2.1.1 Scope

You are hereby invited to submit firm proposals for the provision of loans to a maximum of R60 100 000 to Mossel Bay

Municipality.

2.1.2 Background

An analysis of the funding requirements of the Municipality for the approved Capital Expenditure Budget indicated the need

to borrow funds accumulating to of R60 100 000 on a borrowing term of 15 years. The table below indicate the projects to

be funded from loan/(s):

2026/2027

Projects to be financed loan

Capacity increase of Great Brak WWTW R10 000 000

Upgrade WWTW - Friemersheim R1 000 000

Main Sewer Network between Glentana & Great Brak R2 500 000

Midbrak Main Sewer Network R3 700 000

New sewer infrastructure for unserviced erven in Great Brak River R400 000

Upgrade water pipeline between Bartelsfontein reservoir and Dana Bay R30 100 000

New Great Brak River Reservoir R8 400 000

New supply pipeline to Wolwedans Reservoir R4 000 000

R 60 100 000

The amounts mentioned in the table above is only for evaluation purposes. The amounts are subject to the

approval of an adjustment budget to be tabled and approved by no later than 26th February 2027, the amounts

may be adjusted up or down wards. The final amounts will be negotiated with the successful bidder.

Interested banks and financial institutions are invited to submit funding proposals. The procurement process will be

conducted in accordance with the applicable terms of Chapter 6 of the Municipal Finance Management Act, 2003 read

together with the Municipality’s Supply Chain Management Policy.

2.1.3 Loans specifications

The requirements of Mossel Bay Municipality in respect of the loan finance are as follows:

Loan amounts:

Type of Loan Loan to finance Loan Term Drawdown date

capital projects

Sewerage Loan R17 600 000 15 years Wednesday, 30 June 2027

Water Treatment Loan R42 500 000 15 years Wednesday, 30 June 2027

Total R60 100 000

Amortisation Table: Amortisation tables should be provided for each of the loans indicated above in point

2.1.3.

Period of Loans: The loan periods have been structured in such manner that it will not exceed the

estimated useful life of the assets. The proposal must indicate details for each loan

period as indicated on the table above in point 2.1.3.

Repayment of Loans: The instalments must be bi-annually payable over the life of the loans as mentioned

above. Payable on 30 June and 31 December of each year of the loan periods. No

capitalisation of interest will be allowed.

Loan Securities: The loans must be unsecured.

Interest rate options: Bidders must provide a fixed rate option that must be valid for 120 days after closing

of the bid or floating interest rate with the option to fix the floating rate. The floating

rate must be linked to either ZARONIA, Repo rate or Prime interest rate. The all-in

margin above or below the ZARONIA, Repo rate or Prime interest rate must be fixed

until the loan is repaid in full in the case of both fixed rate or floating interest

rate. No allowance for changes to the all-in margin will be allowed.

Foreign Exchange: Mossel Bay Municipality will not accept any loans that is indexed to, or affected by,

fluctuations in the value of the Rand against any foreign currency.

2.1.4 Information required

2.1.4.1 The following information must be included in the submission:

2.1.4 .1.1 Pricing: Firm prices for each loan must be quoted separately on the following basis:

• Fixed rate over period of loan, or
• Floating rate with a fixed margin above or below the base rate linked to the:

o ZARONIA ;

o Repo rate or

o Prime rate; and

2.1.4.1.2 The appropriate base rate to be used must be the rate as at 12h00 on 18th September 2026.

2.1.4.1.3 No changes for whatever reason will be allowed to the fixed all-in margin, and

2.1.4.1.4 All above rates must be fixed for the loan term with the only variable being the base rate, namely ZARONIA,

Repo rate or prime rate changes; and

2.1.4.1.5 No other method of calculation or link of the floating rate will be accepted. Any other method will be declared as

non-responsive.

For each option in 2.1.4.1 a separate amortisation table should be provided per loan amount as listed in 2.1.3. The bids

will only be evaluated on the option for which an amortization table has been submitted. Amortisation tables should indicate

the monthly calculations, although no interest may be capitalised.

Failure to submit the amortization table/s by the closing date, the bid may be seen as submitting a non-responsive

bid.

Method of interest calculation is deemed to be irrelevant as the Municipality will evaluate the bid for price based on the

cost of repayment, for the total period of the loans. The cost of repayment will be obtained from the amortization tables as

requested in point 3 above.

The Municipality has the right to evaluate and except any of the rate options.

The draw down dates and values regarding this bid may vary. Interest during the construction phase must be charged and

billed bi-annually as at end of December and June of each year.

No changes to the rate options will be allowed.

2.1.5 Personnel & Service Area

The service provider to complete the section below where the services will be rendered from and who the

allocated staff member will be to serve the Mossel Bay Municipality:

Street Address:

................................................................................................................................................................................

...................................................................................................................................................................................

Telephone: Area Code: ............................................... Number.....................................................................

Staff member Name:...........................................

.......................................................................

The information above should be aligned with the information as contained in SECTION 4.4 & 4.5 of MBD6.1:

Preference points claim form in terms of the preferential procurement regulations, 2022

in the tender document.

2.1.6 Special conditions

The following special conditions will apply:

Fixing of Interest Rate: In the case of a floating rate the final Interest Rate will be calculated and recorded at

date of signature of the Loan agreements by both parties.

Availability of Funds: On or before 30th June 2027

Withdrawal of Funds: The draw down date is set as per disbursement schedule above for the full amount

as per the agreement entered into with the successful bidder. Money should reflect in

the bank account of the Municipality on draw down date. It is specifically agreed that

the funds must be available in the primary bank account of the Municipality, if not then

a penalty will be payable by the financial institution equal to amount of R10 000 for

every 24 hours or part thereof that the funds are not reflecting in the primary account.

Servicing of loans: The Municipality will service the loans on a bi-annual basis; therefore, the interest cost

will be included in the evaluation of the bid.

Disbursement conditions: No disbursement conditions apart from the signing of a loan agreement or the

conditions as agreed to in the loan agreement shall apply.

Penalty or Commitment Fees: No penalties or commitment fees other than default fees, by the successful

bidder shall apply for the period till final draw down as at 30th June 2027

Early settlement fees: Early settlement fees may be charged at a rate as negotiated with the successful

bidder but may not be more than 2.5% of the outstanding capital amount at that

stage.

Acceptance of Offers: As promulgated in terms of the MFMA.

Validity: The Tender shall be valid for 120 days from date of opening of Tender documentation

for evaluation process to be concluded. Bidders must understand that the Section 46

process is followed once the bid has been awarded. Once awarded the all-in margin

as per the award must remain the same.

Capitalisation of interest: No capitalisation of interest will be allowed by the service provider.

2.1.7 Time frames

Evaluation/Adjudication: Within 120 days of closing date of bids.

Council final approval: At the next Council meeting after the public participation and call for comments have

closed.

Loan agreements signed: On or before 30th June 2027, but as soon as the public participation process has

been concluded and Council have considered all relevant comments.

2.1.8 Other information

Term of instrument: Loans to be taken up after final approval by Council.

Security to be provided: Municipality will not provide any securities or guarantees.

Consultation processes: Invitation to public, Provincial and National Treasury to comment on

proposed loans debt.

Source of Funding for repayment of: Repayment of loans will be funded from revenue received by charges levied

in terms various tariffs. Provision for repayments on loans were made in the

relevant budgets.

Total outstanding loans: R505 025 169, is the total liability as at 30 June 2026 as per the unaudited

Afs.

Bridging finance: Municipality will provide bridging finance from own sources during

construction phase, therefore only one draw down will take place. No

reporting on job creation, etc. will be provided by the Municipality. Only

financial information regarding the ability to borrow and to repay debt will be

made available by the Municipality.

It is confirmed that the funds will be utilised to fund capital projects on the capital budget and the IDP of Council.

2.1.9 Credit risk ratings

2.1.9.1 Bidders to submit their most recent set of credit risk ratings from Moody’s. Failure to submit may be

deemed as submitting a non-responsive bid.

2.1.10 Key performance indicators

The following key performance indicators will be applicable to contract entered into and will be measured according to

the frequencies as indicated below:

2.1.10.1 Indicator: signing of debt agreements

Target: 100% achievement.

Measurement: Signed Debt Agreements before or on the date of first draw-down

Frequency: Once off

2.1.10.2 Indicator: disbursement of funds according to debt agreement, or any other dates

Mutually agreed in writing

Target: 100% achievement.

Measurement: Money reflected in the Primary bank account of the Mossel Bay Municipality on the date as mutually

agreed.

Frequency: Annually

2.1.10.3 Indicator: bi- annual servicing/payment of the instalment as per the debt agreement

Target: 100% achievement.

Measurement: Money paid over to the financing institution on a bi-annual basis

Frequency: Bi- annually (31 December and 30 June of each year)

2.1.10.4 Indicator: service render complies with specifications set in tender/project document

Target: 100% achievement.

Measurement: Compliance with all specifications of the bid document measured after closure of each financial period,

measurement to be completed by 31 July of each year.

Frequency: Annually

2.2. Pricing instruction and schedule

Pricing Instructions mean the criteria as set out below, read together with all parts of this contract document, which it will

be assumed in the contract that the tenderer has taken into account when developing his prices.

2.2.1. The short descriptions given in the pricing schedule below are brief descriptions used to identify the activities for

which prices are required. Detailed descriptions of the activities to be priced are provided in the Specifications

under the scope of work.

2.2.2. For the purpose of the pricing schedule, the following words shall have the meanings hereby assigned to them:

2.2.2.1. Loan description means the purpose of the loan.

2.2.2.2 Loan Amount is the amount that is required by the Municipality on the drawdown date.

2.2.2.3 Loan term is the term of the required loan in years.

2.2.2.4. Interest rate quoted is the Based rate (ZARONIA, Repo rate or Prime rate as on specified date) plus or minus the

fixed (firm) All-in Margin.

2.2.2.5 Total interest and other cost to be paid to the bidder over the full term of the loan, if all conditions are met.

2.2.3 The pricing to be indicated is based on estimated amounts as per the current approved budget and is only

used for evaluation purposes. The final amounts will be made available after approval of the Adjustment Budget

in February 2027.

2.2.4 Only, firm pricing will be accepted, non-firm prices (including prices subject to changes in fixed All-in margin rates

or rates of exchange variations) will not be considered.

2.2.5 The bidder may opt to only bid for one of the options. The bidder must however bid for all the loans.

The tender will be evaluated on the total amount per option.

2.2.6. The bid will be evaluated based on the cost of contract of each option

2.27. No other format of pricing schedule, as prescribed in the pricing schedule below will be allowed.

2.2.8 A preferred and alternative bidder may be appointed depending on responsiveness.

Loan Interest Total interest and

Item

Loan Description Loan Amount term rate other cost over the

nr.

quoted full term

A b c d e f

Option 1 – Fixed Interest rate

1.1. Sewerage Loan R17 600 000 15 years

1.2 Water Treatment Loan R42 500 000 15 years

Loan Amount Loan Interest Total interest andItem

Loan Description term rate other cost over thenr.

quoted full term

Option 2 – Floating Interest rate linked with fixed margin to either ZARONIA, Repo rate or Prime Rate

2.1. Sewerage Loan R17 600 000 15 years

2.2. Water Treatment Loan R42 500 000 15 years

NB: The bidder to provide the amortisation tables, the tables must align to the total cost as quoted in column F

above.

Section 3.1: Mbd1: bid requirements for mossel bay municipality

Part a – invitation to bid

Invitation to bid for requirements of the mossel bay municipality

BID NUMBER TDR18/2026/2027 CLOSING DATE 25 SEPTEMBER 2026 CLOSING TIME 12h00

Description provision of external loans to the mossel bay municipality

The successful bidder will be required to fill in and sign a written contract form (mbd7)

Original completed bid documents may be posted to reach the tender box by closing date

To:

The Tender Box

Mossel Bay Municipality

P O Box 25

Mossel bay

6500

Or

Original completed bid documents may be deposited in the tender box by closing date at:

The Entrance of the Mossel Bay Municipality’s Town Hall

101 Marsh Street

Mossel bay

Supplier information

Name of bidder

Postal address and code

Street address

Telephone number

Alternative number

E-mail address

VAT registration number

Tax compliance status pin

CIDB registration number

(if applicable)

A b-bbee status level verification certificate/sworn affidavit (for eme’s & qse’s) must be

Submitted in order to qualify for prefence points for b-bbee)

B-bbee status level

Yes NO

Verification certificate

B-bbee status level

Yes NO

Sworn affidavit

Are you the accredited representative in south africa for yes/no

THE GOODS/SERVICES/WORK OFFERED? (if YES, enclose proof)

Are you’re a foreign based supplier for the yes/no

GOODS/SERVICES/WORK OFFERED? (if YES, answer Part B)

Total number of items offered

Total bid price rate only

Signature of bidder

Date

Capacity under which this bid is signed

Bidding procedure enquiries may be

Technical enquiries may be directed to: directed to:

Department SCM department financial services

CONTACT PERSON Mr. Deslin Kohler CONTACT PERSON Ms Sheressa Dippenaar

Telephone number telephone

(044) 606-5192 (044) 606-5133

Number

E-MAIL ADDRESS [email protected] E-MAIL ADDRESS [email protected]

Part b – terms and conditions for bidding

1. Bid submission:

1.1. Bids must be delivered by the stipulated time to the correct address. Late bids will not be

Accepted for consideration.

1.2. All bids must be submitted on the official forms provided – (not to be re-typed) or online

1.3. This bid is subject to the preferential procurement policy framework act, the preferential

Procurement regulations and any appropriate municipal policy. The general conditions of

Contract (gcc) and, if applicable, any other special conditions of contract.

2. Tax compliance requirements

2.1 Bidders must ensure compliance with their tax obligations.

2.2 Bidders are required to submit their unique personal identification number (pin) issued by SARS

To enable the organ of state to view the taxpayer’s profile and tax status.

2.3 Application for the tax compliance status (tcs) certificate or pin may also be made via e-filing.

In order to use this provision, taxpayers will need to register with SARS as e-filers through

The website www.SARS.GOV.ZA.

2.4 Foreign suppliers must complete the pre-award questionnaire in part b:3.

2.5 Bidders may also submit a printed tcs certificate together with the bid.

2.6 In bids where consortia / joint ventures / sub-contractors are involved; each party must

Submit a separate tcs certificate / pin / csd number.

2.7 Where NO tcs is available but the bidder is registered on the central supplier database (csd),

A csd number must be provided.

3. Questionnaire to bidding foreign suppliers

3.1. Is the entity a resident of the republic of south africa (RSA)? yes NO

3.2. Does the entity have a branch in the RSA? yes NO

3.3. Does the entity have a permanent establishment in the RSA? yes NO

3.4. Does the entity have any source of income in the RSA? yes NO

3.5. Is the entity liable in the RSA for any form of taxation? Yes NO

If the answer is “NO” to all of the above, then IT is not a requirement to register for a tax

Compliance status system pin code from the south african revenue service (SARS) and if not

Register as per 2.3 Above.

Signature of bidder: ...................................................

Capacity under which this bid is signed: ...................................................

Date: ...................................................

Section 4.1: Mbd4: declaration of interest

1. No bid will be accepted from persons in the service of the state*.
2. Any person, having a kinship with persons in the service of the state, including a blood relationship, may make

an offer or offers in terms of this invitation to bid. In view of possible allegations of favoritism, should the resulting

bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is

required that the bidder or their authorised representative declare their position in relation to the

evaluating/adjudicating authority.

3. In order to give effect to the above, the following questionnaire must be completed and submitted with

the bid.

4. Bidders are required to declare any change in directorship or membership during the term of this

tender should it have had an influence on the award of the bid.

4.1 Full Name of Bidder OR his OR her representative

4.2 Identity Number

Position occupied in the Company

4.3

(director, trustee, shareholder2)

4.4 Company Registration Number

4.5 Tax Reference Number

4.6 VAT Registration Number

4.7 The names of all directors/trustees/shareholder’s/member, their individual identity numbers and state

employee numbers must be indicated in number 4, below.

4.8 Are you presently in service of the state YES/NO

4.8.1 If so, furnish particulars

.....................................................................................................................................................

4.9 Have you been in the service of the state for the past twelve months? YES/NO

4.9.1 If so, furnish particulars

.....................................................................................................................................................

4.10 Do you have any relationship (family, friend, other) with persons in service of

the state and who may be involved with the evaluation and or adjudication of this YES/NO

bid?

4.10.1 If so, furnish particulars

.....................................................................................................................................................

4.11 Are you, aware of any relationship (family, friend, other) between a bidder and

any persons in the service of the state and who may be involved with the evaluation YES/NO

and or adjudication of this bid?

4.11.1 If so, furnish particulars

.....................................................................................................................................................

4.12 Are any of the company’s directors, managers, principal shareholders or

Yes/no

stakeholders in service of the state?

4.12.1 If so, furnish particulars

.....................................................................................................................................................

4.13 Are any spouse, child or parent of the company’s directors, managers, principal

Yes/no

shareholders or stakeholders in service of the state?

4.13.1 If so, furnish particulars

.....................................................................................................................................................

4.14 Do you or any of the directors, trustees, managers, principle shareholders, or

stakeholders of this company have any interest in any other related companies or YES/NO

business whether or not they are bidding for this contract?

4.14.1 If so, furnish particulars

.....................................................................................................................................................

MSCM Regulations: “in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;

(d) an employee of any national or provincial department, national or provincial public entity or constitutional institution

within the meaning of the Public Finance Management Act, 1999 (Act No.);

(e) a member of the accounting authority of any national or provincial public entity; or

(f) an employee of Parliament or a provincial legislature.

5. Full details of directors/trustees/members/shareholders:

State

Income Tax Full Name Identity Number Employee

Number Number

...................................................................... .........................................................

Signature Date

...................................................................... .........................................................

Position Name of Bidder

withheld.

(c) The contractual relationship between the Contractor and any subcontractors selected by the Contractor in

consultation with the Municipality in accordance with the requirements of and a procedure contained within

the Scope of Work, shall be the same as if the Contractor had appointed the subcontractor in terms of

paragraph (b) above.

(d) Any consent granted in accordance with paragraph (b) or appointment of a subcontractor in accordance

with paragraph (c) shall not imply a contract between the Municipality and the subcontractor, or a

responsibility or liability on the part of the Municipality to the subcontractor and shall not relieve the

establishment of a contract and for the surety, guarantees and retentions.

1.2.24 Wrong Information Furnished

shareholding, the B-BBEE Status Level of Contribution obtained by the bidder and must be an original certificate

or certified copy of the original.

• If the certificate was issued by registered auditors approved by IRBA

Clearly identify the B-BBEE approved registered auditor by the auditor’s individual registration number with

IRBA and the auditor’s logo, clearly record an approved B-BBEE Verification Certificate identification reference

in the format required by the SASAE, reflect relevant information regarding the identity and location of the

measured entity, identify the Codes of Good Practice or relevant Sector Codes applied in the determination of

the scores, record the weighting points (scores) attained by the measured entity for each scorecard element,

where applicable, and the measured entity’s overall B-BBEE Status Level of Contribution, reflect that the B-

BBEE Verification Certificate and accompanying assurance report issued to the measured entity is valid for 12

months from the date of issuance and reflect both the issuance and expiry date, and the B-BBEE Status Level

of Contribution obtained by the bidder and must be an original certificate or certified copy of the original.

1.2.26.2 Proof of Locality in a Specific Province, Region and Municipal Area

(a) Points for specific goals to promote suppliers or service providers located in a province, district or

municipal area / (hereafter referred to as locality).

(b) Each tender must specify in the invitation to tender that a maximum of 50% of the 20/10 points will be

allocated to promote the specific goal of locality.

(c) Only one of the points set out below that best describes the enterprise’s locality may be awarded if

applicable.

1.1 “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

1.2 “Contract” means the written agreement entered into between the purchaser and the supplier, as recorded in the contract form signed

by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the contract for the full and proper performance of his contractual

obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official in the

procurement process or in contract execution.

1.5 "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its government and encouraged to market its

products internationally.

1.6 “Country of origin” means the place where the goods were mined, grown or produced or from which the services are supplied. Goods

are produced when, through manufacturing, processing or substantial and major assembly of components, a commercially recognized

new product results that is substantially different in basic characteristics or in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and unloaded in the specified store or depot or on the specified site in

compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved until the goods are so delivered

and a valid receipt is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at lower prices than that of the country

of origin and which have the potential to harm the local industries in the RSA.

1.12 “Force majeure” means an event beyond the control of the supplier and not involving the supplier’s fault or negligence and not

foreseeable. Such events may include, but is not restricted to, acts of the purchaser in its sovereign capacity, wars or revolutions, fires,

floods, epidemics, quarantine restrictions and freight embargoes.

1.13 “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to

the detriment of any bidder, and includes collusive practice among bidders (prior to or after bid submission) designed to establish bid

prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required to supply to the purchaser under the

contract.

1.16 “Imported content” means that portion of the bidding price represented by the cost of components, parts or materials which have been

or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the costs abroad, plus freight

and other direct importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or duty at the South

will be manufactured.

1.17 “Local content” means that portion of the bidding price, which is not included in the imported content provided that local manufacture

does take place.

1.18 “Manufacture” means the production of products in a factory using labour, materials, components and machinery and includes other

related value-adding activities.

1.19 “Order” means an official written order issued for the supply of goods or works or the rendering of a service.

1.20 “Project site,” where applicable, means the place indicated in bidding documents.

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillary to the supply of the goods, such as transportation and any other incidental services,

such as installation, commissioning, provision of technical assistance, training, catering, gardening, security, maintenance and other

such obligations of the supplier covered under the contract.

1.25 “Supplier” means the successful bidder who is awarded the contract to maintain and administer the required and specified service(s) to

the State.

1.26 “Tort” means in breach of contract.

1.27 “Turnkey” means a procurement process where one service provider assumes total responsibility for all aspects of the project and

delivers the full end product / service required by the contract.

1.28 “Written” or “in writing” means hand-written in ink or any form of electronic or mechanical writing.

6.1 The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark, or industrial design rights

arising from use of the goods or any part thereof by the purchaser.

6.2 When a supplier developed documentation / projects for the municipality / municipal entity, the intellectual, copy and patent rights or

ownership of such documents or projects will vest in the municipality / municipal entity.

7.1 Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the purchaser the performance

security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for any loss resulting from the supplier’s

failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the contract, or in a freely convertible currency acceptable to the

purchaser and shall be in one of the following forms: (a) a bank guarantee or an irrevocable letter of credit issued by a reputable bank

located in the purchaser’s country or abroad, acceptable to the purchaser, in the form provided in the bidding documents or another

form acceptable to the purchaser; or (b) a cashier’s or certified cheque.

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty (30) days following the

date of completion of the supplier’s performance obligations under the contract, including any warranty obligations, unless otherwise

specified.

goods forthwith, the purchaser may, without giving the supplier further opportunity to substitute the rejected goods, purchase such goods

as may be necessary at the expense of the supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the contract on account of a breach of the

conditions thereof, or to act in terms of Clause 22 of GCC.

13.1 The supplier may be required to provide any or all of the following services, including additional services, if any:

(a) performance or supervision of on-site assembly and/or commissioning of the supplied goods;

(b) furnishing of tools required for assembly and/or maintenance of the supplied goods;

(c) furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods;

(d) performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the parties, provided

that this service shall not relieve the supplier of any warranty obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-up, operation, maintenance, and/or

repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall be agreed upon in advance

by the parties and shall not exceed the prevailing rates charged to other parties by the supplier for similar services.

14.1 As specified, the supplier may be required to provide any or all of the following materials, notifications, and information pertaining to

spare parts manufactured or distributed by the supplier:

(a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall not relieve the supplier

of any warranty obligations under the contract; and; (b) in the event of termination of production of the spare parts: (i) advance notification

to the purchaser of the pending termination, in sufficient time to permit the purchaser to procure needed requirements; and (ii) following

such termination, furnishing at no cost to the purchaser, the blueprints, drawings, and specifications of the spare parts, if requested.

15. Warranty

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models, and that they

incorporate all recent improvements in design and materials unless provided otherwise in the contract. The supplier further warrants that

all goods supplied under this contract shall have no defect, arising from design, materials, or workmanship (except when the design

and/or material is required by the purchaser’s specifications) or from any act or omission of the supplier, that may develop under normal

use of the supplied goods in the conditions prevailing in the country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the case may be, have been delivered

to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the date of shipment from the port or

place of loading in the source country, whichever period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable speed, repair or replace the defective

goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the period specified, the purchaser may proceed to take such

remedial action as may be necessary, at the supplier’s risk and expense and without prejudice to any other rights which the purchaser

may have against the supplier under the contract.

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under this contracts if not already specified in the bid. Such

notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with the time schedule prescribed by

the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions impeding timely delivery

of the goods and performance of services, the supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely

duration and its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser shall evaluate the situation and may

at his discretion extend the supplier’s time for performance, with or without the imposition of penalties, in which case the extension shall

be ratified by the parties by amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if an emergency

arises, the supplier’s point of supply is not situated at or near the place where the goods are required, or the supplier’s services are not

readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall render the supplier

liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is agreed upon pursuant to GCC Clause

22.2 without the application of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without cancelling the contract, be

entitled to purchase goods of a similar quality and up to the same quantity in substitution of the goods not supplied in conformity with

the contract and to return any goods delivered later at the supplier’s expense and risk, or to cancel the contract and buy such goods as

may be required to complete the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the period(s) specified

in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct from the contract price, as a

penalty, a sum calculated on the delivered price of the delayed goods or unperformed services using the current prime interest rate

calculated for each day of the delay until actual delivery or performance. The purchaser may also consider termination of the contract

pursuant to GCC Clause 23.

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the supplier, may

terminate this contract in whole or in part:

(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any extension thereof

granted by the purchaser pursuant to GCC Clause 21.2; (b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practices in competing for or in executing the

contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and in such manner,

as it deems appropriate, goods, works or services similar to those undelivered, and the supplier shall be liable to the purchaser for any

excess costs for such similar goods, works or services. However, the supplier shall continue performance of the contract to the extent

not terminated.

23.3 Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction penalty on the supplier

by prohibiting such supplier from doing business with the public sector for a period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will be allowed a time

period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be imposed. Should the supplier

fail to respond within the stipulated fourteen (14) days the purchaser may regard the supplier as having no objection and proceed with

the restriction.

23.5 Any restriction imposed on any person by the purchaser will, at the discretion of the purchaser, also be applicable to any other enterprise

or any partner, manager, director or other person who wholly or partly exercises or exercised or may exercise control over the enterprise

of the first-mentioned person, and with which enterprise or person the first-mentioned person, is or was in the opinion of the purchaser

actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National Treasury, with the

following information:

(i) the name and address of the supplier and / or person restricted by the purchaser;

(ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction. These details will be loaded in the National Treasury’s central database of suppliers or persons

prohibited from doing business with the public sector.

23.7 If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and Combating of Corrupt

Activities Act, No. , the court may also rule that such person’s name be endorsed on the Register for Tender Defaulters. When

a person’s name has been endorsed on the Register, the person will be prohibited from doing business with the public sector for a period

not less than five years and not more than 10 years. The National Treasury is empowered to determine the period of restriction and

each case will be dealt with on its own merits. According to section 32 of the Act the Register must be open to the public. The Register

can be perused on the National Treasury website

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for forfeiture of its performance security,

damages, or termination for default if and to the extent that his delay in performance or other failure to perform his obligations under the

contract is the result of an event of force majeure. 25.2 If a force majeure situation arises, the supplier shall promptly notify the purchaser

in writing of such condition and the cause thereof. Unless otherwise directed by the purchaser in writing, the supplier shall continue to

perform its obligations under the contract as far as is reasonably practical, and shall seek all reasonable alternative means for

performance not prevented by the force majeure event.

26.1 The purchaser may at any time terminate the contract by giving written notice to the supplier if the supplier becomes bankrupt or

otherwise insolvent. In this event, termination will be without compensation to the supplier, provided that such termination will not

prejudice or affect any right of action or remedy, which has accrued or will accrue thereafter to the purchaser.

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in connection with or arising out of

the contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then either the purchaser

or the supplier may give notice to the other party of his intention to commence with mediation. No mediation in respect of this matter

may be commenced unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

27.4 Notwithstanding any reference to mediation and/or court proceedings herein, (a) the parties shall continue to perform their respective

obligations under the contract unless they otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier for goods delivered and / or services rendered according to the

prescripts of the contract.

28.1 Except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant to Clause 6; (a) the supplier shall

not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or consequential loss or damage, loss of use, loss

of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of the supplier to pay

penalties and/or damages to the purchaser; and (b) the aggregate liability of the supplier to the purchaser, whether under the contract,

in tort or otherwise, shall not exceed the total contract price, provided that this limitation shall not apply to the cost of repairing or replacing

defective equipment.

Fixing of Interest Rate: In the case of a floating rate the final Interest Rate will be calculated and recorded at

date of signature of the Loan agreements by both parties.

Availability of Funds: On or before 30th June 2027

Withdrawal of Funds: The draw down date is set as per disbursement schedule above for the full amount

as per the agreement entered into with the successful bidder. Money should reflect in

the bank account of the Municipality on draw down date. It is specifically agreed that

the funds must be available in the primary bank account of the Municipality, if not then

a penalty will be payable by the financial institution equal to amount of R10 000 for

every 24 hours or part thereof that the funds are not reflecting in the primary account.

Servicing of loans: The Municipality will service the loans on a bi-annual basis; therefore, the interest cost

will be included in the evaluation of the bid.

Disbursement conditions: No disbursement conditions apart from the signing of a loan agreement or the

conditions as agreed to in the loan agreement shall apply.

Penalty or Commitment Fees: No penalties or commitment fees other than default fees, by the successful

bidder shall apply for the period till final draw down as at 30th June 2027

Early settlement fees: Early settlement fees may be charged at a rate as negotiated with the successful

bidder but may not be more than 2.5% of the outstanding capital amount at that

stage.

Acceptance of Offers: As promulgated in terms of the MFMA.

Validity: The Tender shall be valid for 120 days from date of opening of Tender documentation

for evaluation process to be concluded. Bidders must understand that the Section 46

process is followed once the bid has been awarded. Once awarded the all-in margin

as per the award must remain the same.

Capitalisation of interest: No capitalisation of interest will be allowed by the service provider.

2.1.7 Time frames

Evaluation/Adjudication: Within 120 days of closing date of bids.

Council final approval: At the next Council meeting after the public participation and call for comments have

closed.

Loan agreements signed: On or before 30th June 2027, but as soon as the public participation process has

been concluded and Council have considered all relevant comments.

2.1.8 Other information

Term of instrument: Loans to be taken up after final approval by Council.

Security to be provided: Municipality will not provide any securities or guarantees.

Consultation processes: Invitation to public, Provincial and National Treasury to comment on

proposed loans debt.

Source of Funding for repayment of: Repayment of loans will be funded from revenue received by charges levied

in terms various tariffs. Provision for repayments on loans were made in the

relevant budgets.

Total outstanding loans: R505 025 169, is the total liability as at 30 June 2026 as per the unaudited

Special Conditions: Bridging finance will be provided by the Municipality from own sources during construction phase, therefore only one draw down will take place. No reporting on job creation will be provided by the Municipality. Only financial information regarding the ability to borrow and repay debt will be made available.

Bidders must be registered financial institutions. Bidders must be registered on the Central Supplier Database. Bidders must submit their most recent set of credit risk ratings from Moody's; failure to submit may be deemed non-responsive. Bidders must submit a valid Tax Compliance Status Pin, municipal rates and taxes accounts, Letter of Good Standing from Compensation Commissioner, and authorised signatory resolution.

will verify the bidder’s CIDB registration during the evaluation process.

deregistered on the day of evaluation.

(d) If the joint venture division is 50/50 the points will be allocated according to the closest address.

(f) For the evaluation of functionality regarding a Joint venture refer to the functionality section.

Responsive bids will be evaluated on the 80/20 or 90/10 Preference Points System. A maximum of 20 points (80/20

preference point system) or 10 points (90/10 preference point system) will be allocated for specific goals. 50% of the

20/10 points will be allocated in terms of a bidder’s B-BBEE scorecard and other 50% of the 20/10 points will be for a

scoring the highest number of points.

scoring the highest points.

1.2.17 Evaluation of Tenders

entitled to purchase goods of a similar quality and up to the same quantity in substitution of the goods not supplied in conformity with