Presenter: Janine Espin

Presenter: Janine Espin

EDS Core Business Interests Community Participation Facilitation Stakeholder Engagement (incl. Municipalities) Socio-Economic Development Enabling Economic Transformation Localisation / Local Content Enterprise Development Preferential Procurement

PV Solar Technology Experience within the Renewal Energy Sector Window 1 Window 2 Window 3 Facilitation of local community members as ED officers to 2 solar farms (Northern Cape) Bid Preparation and submission of 2 PV solar farms for window 2 submission (Limpopo) Appointed consultants to 3 PV solar farms (3 x Northern Cape)

Wind Technology Experience within the Renewal Energy Sector Window 1 Window 2 Window 3 Review of ED commitments and development of Risk Analysis reports for 3 x wind farms which has reached financial close Bid Preparation and submission of 3 wind farms for window 2 submission 2 farms have reached PB status (Eastern Cape) Appointed consultants to 4 wind farms for the window 3 submissions (2 x Eastern Cape and 2 x Northern Cape)

Past and current projects Public meeting in the Limpopo The road to project site Community Assessment, Eastern Cape Community Meeting, Northern Cape

Socio-Economic Development (SED) The 28 renewable energy projects are spread across some of the country s most rural and least developed provinces including the Eastern Cape, Northern Cape, Limpopo, North West and the Free State. Extract from the Facts sheet Window One RE IPPP Economic Development benefits, dated 05 th November 2012 Implemented within the Province

Example of a ED & SED plan

Examples of a ED & SED initiatives dependent on the community s needs ENTERPRISE DEVELOPMENT (ED) Entrepreneurial training, e.g. establish an incubator programme; Technical and artisan training; Business plan development; Mentorship and coaching; Financial support through a business growth fund, e.g. loans) Agri-business opportunities through the development of synergies with the local agricultural development or corridor programmes; Supply chain development, e.g. assist the community to establish businesses which can clean the solar panels; Tourism initiatives; and Manufacturing plants. SOCIO-ECONOMIC DEVELOPMENT (SED) Health care, e.g. home-based care-giver training and support or paramedic training bursaries; Support local community hospitals through the donation of much needed medical equipment; Youth development programmes, including leadership training; Education and skills development support, e.g. bursaries or ABET; Pre-school training and support; HIV/AIDS programmes; Housing developments; and Support the establishment of community gardens.

6 Window 2 Projects in the EC 527 Dreunberg [PV] 240 Amakhala Emoyeni RE1 [Wind] 372 Chaba [Wind] 362 Waainek [Wind] 364 Grassridge [Wind] 303 Tsitsikamma Community [Wind]

Lessons Learnt ECONOMIC DEVELOPMENT Insufficient public participation and community engagement both prior to bid submission and after PB status announcement; No community needs assessment completed this has lead to generic SED and ED plans, e.g. one project company submits 3 RE project bids with a copy and paste of their economic development plans; Economic development commitments are not aligned to the municipal integrated development plan (IDP); Self-appointed community leaders; Municipal officers being opportunistic and having only their self-interest at heart;

Lessons Learnt (cont.) ECONOMIC DEVELOPMENT Lack of continuity at municipal level, e.g. LED manager is re-assigned or resigns and the new LED manager changes the goal posts; Some community ownership trusts are very convoluted and will not lead to true empowerment; Projects are mainly focused on the technical, legal and commercial requirements with economic development being the afterthought even though it is 30% of the bid evaluation; Project companies and EPC contractors have little to no alignment with regards to the project s economic development commitments; and The appointed EPC contractor does not understand the economic development requirements of the DoE s IPPPP.

Way forward ECONOMIC DEVELOPMENT Project companies should engage with their preferred EPC contractors regarding their economic development commitments before entering into final agreements, this is to ensure that the EPC can adhere to the commitments made and to ensure that the commitments are realistic; RE projects within the same regions / areas should start engaging with each other to ensure alignment and maximum benefit to the beneficiary communities; Projects should ensure that the persons appointed are indeed from the identified local communities (50 km radius), e.g. obtain proof of residence or letters from local community leaders and SA identity document verifications; Budgets should be set aside for skills development and training to take place prior to construction (during PB status);

Way forward (cont.) ECONOMIC DEVELOPMENT Projects should engage with communities and stakeholders throughout the bid process, i.e. before bid submission and thereafter. Proof of engagement and public meeting attendance registers should be readily available as proof; Municipalities should develop a SED and ED implementation procedure to ensure alignment to the local IDP and thereby ensure that government s objectives are achieved, e.g. the LED manager should sign-off on the proposed plans; The above process will also ensure alignment regarding the project stakeholders vs. IDP stakeholders and minimise the opportunity for self-interest opportunists; Voters roll to be used for confirmation that persons are from the beneficiary community this will also encourage people to register to vote; and Municipalities' and ward councillors' can play a pivotal role in gathering information regarding skills available and businesses operating in the local area to support localisation and job creation targets.

Thank you

Contact Details POSTAL ADDRESS P O Box 92500, NORWOOD 2117 PHYSICAL ADDRESS 220, 2 ND Street Randjespark, Midrand 1685 LANDLINE: 011 695 4800 UGESHREE THAKURPERSAD Mobile: 083 609 1008 Email: Ugesh@ed-solutions.co.za JANINE ESPIN Mobile: 082 336 0028 Email: Janine@ed-solutions.co.za WALDO ADAMS Mobile: 082 046 9727 Email: Waldo@ed-solutions.co.za