ANNEXURE L

Enterprise and Supplier Development Program Conditions for Plant Hire

various sites and power power stations

ENTERPRISE AND SUPPLIER DEVELOPMENT PROGRAM

Every subcontracting shall be accompanied by the Enterprise and Supplier Development plan aligned
to Eskom’s ESD program conditions as well as the relevant code of the DTI Codes of Good Practice
as amended and must answer the following two key questions:
i. What is being done to enhance the financial capacity of beneficiary? and
ii. What is being done to improve the operational capacity of beneficiary

1. Pre-requisites for a Supplier and Enterprise Development relationship:

a) A relationship agreement of cooperation and assistance has to be in place between the

Eskom contracted entity and Enterprise and Supplier Development (ESD) beneficiary;
b) The contracted entity may not have an equity holding larger than 24% in the ESD
beneficiary, either directly or through a flow through calculation;
c) The ESD beneficiary that can qualify for Supplier and Enterprise Development shall:
i. Be a legal entity compliant with SA revenue services requirements;
ii. Be an employer of at least three other permanently employed personnel and not
merely a one person operation with temporary employees;
iii. Must be at least 51% black owned, controlled and managed, classified as an
Exempted Micro-Enterprise (EME) or Qualifying Small Enterprise (QSE)
categorized as Empowered Supplier in line with B-BBEE Act as amended.

2. Requirements for Supplier and Enterprise Development program:

a) The contracted entity must have proof of compliance with the following five requirements
before relationship with an ESD beneficiary of supplier and enterprise development will be
labeled as an official supplier and enterprise development relationship attached to the
contracted entity:
i. Developed a needs analysis for the ESD beneficiary;
ii. Generated a development program with milestones. At least five areas of
development must have been identified per recipient applicable to contracted
entity. The following areas can be targeted for development but is not limited to:
1. Management and labour skills transfer;
2. Establishment of administrative systems;
3. Establishment of cost controls systems;
4. Planning, tendering and programming skills transfer;
5. Business skills transfer with emphasis on entrepreneurial and negotiation
skills;
6. Technical skills transfer with emphasis on innovation;
7. Legal compliance;
8. Procurement skills transfer;
9. Establish credit rating/ history;
10. Establish financial loan capacity/ history;
11. Contractual knowledge transfer
iii. Developed a schedule of activities to address the identified developmental areas.
At least five areas must have been addressed per recipient applicable to the
Eskom agreed timelines;

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 ANNEXURE L

Enterprise and Supplier Development Program Conditions for Plant Hire

various sites and power power stations

iv. Allocated resources for development of the ESD beneficiary involved in the
supplier and enterprise development relationship; and
v. Appointed a champion for Supplier and Enterprise Development. It must be an
accountable and responsible person from at least senior management level within
the contracted entity. This individual must be suitably qualified and experienced to
monitor progress and complete portfolio of proof for activities as per paragraph 2
(a ) (i-iv ) for submission to Eskom within agreed timelines

3. Process of monitoring and reporting related to the Supplier and Enterprise

Development program:

3.1. The Eskom assigned SD&L representative shall:

i. Ensure that all the pre-requisites for a supplier and enterprise development
relationship have been met over the agreed timelines of the contract in order to
recognize the Supplier and Enterprise Development Program;
ii. Ensure that the Enterprise Development Program complies with the requirements;
and
iii. Interview and inspect any relevant documentation including premises for the ESD
beneficiary and selected staff to verify Enterprise Development Program
compliance to contractual SD&L commitments.

ACCEPTED BY:

__________________________ __________________ _______________

Name Signature Date
(Appointed company
representative)

Note: Please indicate your commitment to the contents of this document by signing above
and return to Eskom Rotek Industries as part of the tender returnable. Should the document
not return to Eskom Rotek Industries or return unsigned, it will be viewed as non-acceptance
of the SD&L requirements which will result in your tender being disqualified without further
evaluation.

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