RMIPPPP Reflection: Leveraging Industry Insights To Strengthen Bidding

Cresco assists project developers, financial institutions, and contractors in ensuring effective bidding through steadfast financial advisory. At Cresco, we pride ourselves on our efficient, adaptable Financial Advisory processes in order to determine and identify potential risks. We were recently involved in guiding clients through the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) bidding process; Director Andy Tant shares his thoughts.

The South African Department of Mineral Resources (DMRE) launched the RMIPPPP on the 23rd of August 2020. The objective of the RMIPPPP is to fill the current short-term supply gap, alleviate the current electricity supply constraints, and reduce the extensive utilisation of diesel-based peaking electrical generators in South Africa.

With the bid submissions for the RMIPPPP recently completed, Cresco is looking at how to use the lessons learned in supporting clients to improve the process for the next procurement programme. Tant notes, “This constant improvement is something we have focused on through all the RMIPPPP bid windows, as well as our experience in bidding for private power deals”.

While bidding into this type of programme is often chaotic in the last few weeks before the bid submission, Cresco always urges clients to sit back and take stock of what was done well, and what fell short during the process. Reflecting and retaining this type of knowledge and processes can make the next bid much smoother.

Tant continues, “It is reasonable to expect that different bidders have different strengths and weaknesses, but for most, a focus on appropriate project management, communication and coordination is a key requirement for a diverse bidding team to work effectively”.

At Cresco, we’re a hands-on firm, and offer our clients our wealth of experience to Enable Growth. Not only do we contribute our core financial skills and knowledge, but also insights into what has worked (or what has not) previously – these time-tested insights can make all the difference to a project’s success. Contact us if you would like to know more about how we can help you with your developmental projects in the energy sector and beyond: http://crescogroup.africa/contact-us/.