Monitoring and evaluation of implementation of local content requirement

Through a SAWEP study an integrated model, comprising of energy production, revenue and macro economy modules, to estimate development impact of South African Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) was built.

Critical to this study was economic development (ED), enterprise development (EnD), enterprise and supplier development (ESD), broad-based Black economic empowerment (B-BBEE) and socio-economic development (SED).

The study recommended:

• The DMRE IPP Office, the Dept. of Trade and Industry and its B-BBEE office to share best practice and devise a revised dispensation on local content
• Each individual IPP ED criterion to be reviewed and adjusted to achieve improved alignment with B-BBEE generic codes
• Skills Development criterion to be added
• Strategic and institutionalised focus on EnD, achieved firstly by increasing relative weighting and specification of EnD criterion in IPP Programme ED criteria. Secondly, IPP EnD criterion should receive greater impact and weighting to be more in line with B-BBEE element of ESD
• Investigate best practices in EnD within IPP sector and share these at an appropriate forum
• Promote pooled supplier contracts to support enterprises supported by EnD initiatives
• Adopt mechanisms to implement equalised annuity income dividend repayment approaches for community-based owners, both in current and future bid windows
• Introduction of second generation ED monitoring system that includes additional measures of effectiveness of spend of SED and EnD; relevant community ownership measures; and relevant SDGs. This monitoring system is to be developed alongside overall ED criteria review.