PUBLIC PRIVATE PARTNERSHIP (PPP) FOR MATSAPA INLAND CONTAINER DEPOT (ICD) EXPANSION PROJECT

EXPRESSION OF INTEREST (EOI) NO.06/2022

03/08/2021 Railways

TABLE OF CONTENTS ABBREVIATIONS / ACRONYMS ...... 3 1.0 COMPANY BACKGROUND ...... 3 1.1 Introduction ...... 4 1.2 Project Background…………………………………………………………………..4 1.3 ESR Values are: ...... 4 1.4 Key Objectives of the EOI ...... 5 1.5 Status of this EOI and subsequent process ...... 5 1.6 Scope of Work ...... 5 1.7 Evaluation Criteria ...... 6 1.8 Financial Evaluation…………………………………………………………………….8 1.9 Collection and Submission of Tender Documents ...... 8 2.0 INSTRUCTIONS TO TENDERERS ...... 8 2.1 General ...... 8 2.2 Compliance with Instructions ...... 9 2.3 Completion of tender Documents ...... 9 2.4 Authority of tender ...... 9 2.5 Alterations and Modifications ...... 9 2.6 Errors ...... 9 2.7 Qualified Tenders ...... 9 2.8 Issuing of Additional Documents ...... 9 2.9 Incomplete Tenders ...... 10 2.10 Quality ...... 10 2.11 Language of Tender ...... 10 2.12 Laws of Eswatini ...... 10 2.13 Tender Validity Period ...... 10 2.14 Expenses of Tender ...... 10 2.15 Submission of Tender ...... 10 2.16 Contact Person at ...... 11 2.17 Rejection of Tenders ...... 11 3.0 - DECLARATION OF ELIGIBILITY FORM ...... 11

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ABBREVIATIONS / ACRONYMS

ESR – Eswatini Railways PO – Purchase Order GST – General Sales Tax VAT – Value Added Tax

1.0 COMPANY BACKGROUND

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1.1 Introduction

Eswatini Railways (ESR) is a Category “A” public enterprise, with a mandate to provide or to secure and promote the provision of an efficient and adequate system of public transport of goods and passengers by rail with due regard to economy and safety of operation and to fully supply the needs of Eswatini for rail services consistent with the resources of the Railways. ESR seeks to partner with competent and suitable companies or individuals in the development of Inland Container Depot expansion project.

1.2 Project Background ESR operates a Dry Port situated in Matsapha which is referred to as the Inland Container Depot (ICD). The ICD has been in operation since 1994 and underwent a minor expansion in year 2000. Ever since then the operations of the terminal have been such that the turnover of containerised cargo has reached more than 14 000 units per annum with growth rates ranging between 10% and 15%. Therefore, the terminal is operating close to its capacity and has been operating at reduced optimum levels hence the need to further expand the terminal. The ICD expansion will enable the terminal to play its pivotal role as a regional port since the competitiveness of the country in terms of regional trade relies on the quick turnaround times, ease, economical and safe movement of goods through the terminal. Currently, consideration given is to expand the facility (Phases 2 and 3). A connection with a port terminal through rail services exist, with Matsapha linking up with Harbour and Richards Bay harbour in and harbour in . Some basic logistics activities that support and organize the freight transited exist near or at the intermodal terminal, but the intention is to significantly expand these activities.

ESR appointed a team of specialist consultants, led by Bigen Africa Services (Pty) Ltd (Consultant), to undertake a detailed Feasibility Study for the development of the Matsapha Inland Container Depot (ICD) Phase II and III Expansion. The study focused on determining the viability of the project. In parallel the infrastructure of the project was advanced to a tender design stage by JG Afrika/ ED Simelane and Associates JV.

1.3 ESR Values are:

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The value of accountability drives ESR to honestly adhere to a procurement process that is in line with international best practice, aimed at maintaining a fair and transparent tendering process.

1.4 Key Objectives of the EOI

This EOI is being undertaken by ESR to identify individuals or companies who are willing to partner with ESR in the development of the proposed Matsapha ICD Expansion project and solicits insights and information from experts and interested parties, as outlined in the scope of work and evaluation criteria, which could be used to enhance the development of the project.

1.5 Status of this EOI and subsequent process

1.5.1 Informing the procurement process in respect of the Project: depending on the Responses to the EOI and should there be sufficient interest, ESR intends to shortlist all the respondents who obtained a minimum score of 60% and above per the below evaluation criteria.

1.5.2 ESR will then issue a Request for Proposals (RFP) to the shortlisted respondents.

1.6 Scope of Work

ESR is looking for potential partners to develop the Matsapha ICD Expansion project preferably through Public Private Partnership (PPP) or any other acceptable form of partnership that has been implemented in a similar venture. The respondents will be issued with an electronic copy of the detailed final feasibility study prepared by Bigen Consultants.

The respondents will outline on how they intend to partner with ESR on any of the following areas of interest:

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a) Funding the project b) Infrastructure development c) Operations of the project d) Fund, Build, Operate and Transfer the project e) Volume commitment f) Provision of Port Operations Equipment

The respondents will be required to state their salient conditions required in order to partner with ESR under each or all of the above areas of interest.

1.7 Evaluation Criteria ‐ Competencies and Expertise Required and Weight Allocation

NB: Respondents are required to submit feedback to the following questions (in their order) as captured in the table below which informs the EOI’s evaluation criteria.

Answer all questions relevant to your area of interest.

DESCRIPTION POINTS A. Responsiveness of Tender (Yes / No) Required documentation to be submitted. i. Company Profile

B. Technical Capability and Availability of Resources

FUNDING. 50 a) How much would you be able to invest in the project and what type of funding 20 (grant, equity, loan etc.) would this be? In what currency would this investment be? b) What would you require from ESR in order to invest in the project 5 c) What indicative terms and conditions would you have? 10 d) What key points should be taken into consideration when structuring this 10 transaction e) Please provide evidence of similar projects that you have funded or invested 5 in over the past 5 years. ENGINEERING, PROCUREMENT AND CONSTRUCTION MANAGEMENT 40 a) What is your experience in construction of inland container depots (dry ports) and 20 railway projects? Elaborate, giving examples of the most recent top three (3) projects you have successfully worked on and completed. Name the client, project location, capital costs etc

Page | 6 b) Please provide suggestions on how the delivery of the project can be accelerated. 10 Also detail the support that is required (if any) from ESR to support the achievement of the said acceleration c) Please recommend appropriate project planning and communication tools to be 5 used for developing the Matsapha ICD Phase II & III Expansion Project. d) Please provide suggestions of how stakeholder management can be handled as 5 part of project planning and execution to ensure appropriate risks are identified and managed. OPERATIONS OF THE PROJECT 40 a) What is your experience in operating Inland Container Depots business or similar 15 in a Public Private Partnership (PPP)? Name the client, project location, nature of the operations etc b) What value add would your involvement in the operations bring to the project. 5 c) What indicative terms and conditions would you have to operate the project? 10 d) What key points should be taken into consideration when structuring the 10 operating model of the project

FUND, BUILD, OPERATE AND TRANSFER (FBOT) 60 a) What is your experience in fund, build, operate and transfer of projects in 30 railway business or similar in a Public Private Partnership (PPP)? Name the client, project location, nature of the arrangement etc? b) What indicative terms and conditions would you have to do the FBOT in this 15 project? c) What key points should be taken into consideration when structuring the FBOT 15 model of the project?

VOLUMES COMMITMENT 25 a) Do you have commodities that will require to be transported through the ICD 15 expansion project? If so, indicate the types of commodities, the anticipated annual volumes and 5-year projections including details related to commodity origins, destination, markets etc. b) Would you be willing and able to commit to long-term transportation 10 agreements? If so, under what conditions?

PORT OPERATIONS EQUIPMENT 30

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a) What port operations equipment you interested to bring to the project, full 10 description and purpose or role, equipment value per item, how is going to enhance or add value to the ICD operations. b) How is the equipment going to be financed 10

c) What indicative terms and conditions would you have provided the port 5 equipment

d) What key points should be taken into consideration in order to provide the 5 port operating equipment.

1.8 Financial Evaluation

There is no financial evaluation at this EOI stage, as financial proposals are not solicited.

1.9 Submission of Tender Documents

The EOI document is downloadable from www.sppra.co.sz and www.eswatinirail.co.sz at no fee. Documents will be available up to the closing date.

The EOI shall close punctually at 10h30 on 31st of August 2021 in the tender box located at the main entrance of the Eswatini Railways Head Office in at Reception. The documents should be submitted in a plain sealed envelope clearly marked “EOI No.06/2022 – Public Private Partnership (PPP) for Matsapha Inland Container Depot (ICD) Expansion Project” and must not bear any name or mark, which would identify the Tenderer.

2.0 INSTRUCTIONS TO TENDERERS

INSTRUCTIONS TO TENDERERS AND NOTES FOR PARTICULAR ATTENTION 2.1 General

The tenderer’s attention is drawn to the following notes, which IF NOT COMPLIED WITH MAY CAUSE THE TENDER TO BE REJECTED.

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2.2 Compliance with Instructions

The tender shall be submitted in accordance with the following Instructions as detailed below.

2.3 Completion of tender Documents

The tender documents shall be completed as issued to the tenderer. The tender shall be signed and witnessed, and all information required filled in by the tenderer.

2.4 Authority of tender

The tender must be signed by a duly authorized representative and the evidence to that effect should be provided in a form of Board Resolution.

2.5 Alterations and Modifications

Tenders shall be completed and submitted as printed. No alterations or medications shall be made to the tender documents. Tenderers shall use the original tender documents, failure to comply, will disqualify the tenderer. Tenderers shall comply entirely with the terms of the tender documents.

2.6 Errors

There shall be no erasing/tippexing or over writing. Any mistake made shall be neatly cancelled and initialled by the tenderer.

2.7 Qualified Tenders a) A tender will be considered fully responsive if it contains no conditions and / or qualifications. b) Tenderers who choose to include conditions and / or qualifications must also include an assessment of the implications such conditions and/or qualifications may or will have in terms of quality of service/product(s), time constraints and cost. A failure to comply with this requirement shall result in the tender being rejected. c) Tenderers shall be notified in writing of any condition and / or qualification that is unacceptable to the ESR. The Tenderer shall be afforded an opportunity to withdraw such condition and / or qualification if it has no material bearing on the terms and conditions of this instruction document.

The ESR reserves the right to only consider tenders that have no conditions and / or qualifications.

2.8 Issuing of Additional Documents

If for any reason during the tender period it becomes necessary to vary the tender documents an addendum will be issued to all tendering Tenderers (for this reason

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Tenderers’ address, telephone, telefax and contact person should be left with ESR when documents are collected).

Should any Tenderer have any queries about the tender, he should refer them in writing to [email protected] not later than the 23rd of August 2021.

2.9 Incomplete Tenders

Tenderers must complete all required information to the tender. Tenders which are incomplete (i.e., leaving blanks and or not supplying information as required will NOT be considered.

2.10 Quality

The Eswatini Railways considers quality of service very important as poor-quality service has a lot of hidden operational costs which can cost the Railway a lot of money. Failure to adhere to all the conditions on quality may lead to outright termination of the agreement.

2.11 Language of Tender

All correspondence shall be in English.

2.12 Laws of Eswatini

Tendering Companies are advised to familiarise themselves with the Laws of Eswatini e.g., Procurement act, customs, immigration, taxation, and labour laws.

2.13 Tender Validity Period

Tenders shall remain valid and open for acceptance for ninety (90) days from the date of Tender opening.

2.14 Expenses of Tender

The ESR will not be responsible for the expenses, which may be incurred by the Tenderer in the preparation of the Tender.

2.15 Submission of Tender

The Tenderer must return tender document consisting of: i. Company Profile and Form J or equivalent for foreign registered companies. ii. Copy of Certificate of Incorporation. iii. Certified copy of Valid Trading License. iv. Labour Compliance Certificate. v. Certified copy of Professional Regulatory Body registration certificate where applicable vi. Original/Valid Tax Compliance Certificate. vii. Certified copy of VAT Registration Certificate. viii. Declaration of Eligibility Form;

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ix. Police Clearance or Affidavit of Non-Conviction for Company Directors x. Audited Financial Statements for the last financial year. xi. A Power of Attorney (Letter confirming name(s) of person(s) authorized to sign on behalf of the company). to arrive not later than the date specified in the tender / EOI notice / document or by hand to the ESR Headquarters, Dzeliwe Street, Mbabane building in at the time and the date indicated. The documents should be forwarded in a plain sealed envelope bearing the Tender Number and Tender title on the top left-hand corner and must not bear any name or mark, which would identify the Tenderer.

2.16 Contact Person at Eswatini Railways

Information concerning the EOI document can be obtained from: The Secretary of the Tender Board, Eswatini Railways, and P. O. Box 475, Mbabane, ESWATINI. TELEPHONE: 2411 7400; FAX: 2411 7499. Emails can be sent to: [email protected]

2.17 Rejection of Tenders

Any Tenderer who does not conform to the above instructions shall be rejected.

3.0 - DECLARATION OF ELIGIBILITY FORM

The bidder must provide a signed declaration in the following format in company letterheads:

[Name of Bidder, Address, and Date]

TO: THE CHIEF EXECUTIVE OFFICER Eswatini Railways PO Box 475 Mbabane H100 Eswatini

Dear Sir,

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RE: EOI No.06/2022 – Public Private Partnership (PPP) for Matsapha Inland Container Depot (ICD) Expansion Project

We, hereby declare that: a) We, have a legal capacity to enter the contract; b) We, are not insolvent, in receivership, suspended, bankrupt or being wound up and not subject of any legal proceedings; c) We, have not been convicted of any criminal offence related to professional conduct or making of false statement or misrepresentations of qualifications to enter into a contract within a period of five (5) years preceding the commencement of the procurement proceedings; d) We do not have a conflict of interest in relation to the procurement requirement. e) We have fulfilled our obligations to pay taxes and social security contributions; and adhere to basic labour legislation. f) We are not subject to suspension from participating in public procurement; and none of our directors or officers have been involved in a tenderer or supplier currently subject to suspension.

Authorized (Full Name): ______

Signature: ______Date: ______

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