NAME OF ESCO

ESCO company registration number – CK ______

ESCO VENDOR NO. ______

Postal and street address (including postal codes)

Tel : (011) ______

Fax : (011) ______

E-mail: ______

NAME OF CUSTOMER

Customer company registration number – CK ______

Postal and street address (including postal codes)

Tel : (011) ______

Fax : (011) ______

E-mail: ______

NAME OF PROJECT:______

TYPE OF PROJECT:______

PROPOSAL ACCEPTED:______

CUSTOMER

PROPOSAL SUBMITTED:______

ESCO

DATE:______

IDM Project Proposal ExampleTemplate Identifier: 240-55464756 Rev 1

Effective date: 2013-02-13

[NAME OF PROJECT]Page 1 of 13

1.PROJECTSITE INFORMATION:

Table 1: Project site information and responsible person

Site / Name of Company / Site information / Type of Operation / Postal and Physical address / Contact Person / Contact details, phone, cell and email
Site 1
Site 2
Site 3
Site 4
Site 5

IDM Project Proposal ExampleTemplate Identifier: 240-55464756 Rev 1

Effective date: 2013-02-13

[NAME OF PROJECT]Page 1 of 13

2.PROJECT SUMMARY

Short overview of project

  1. State what you will be doing: lighting – replacing (state clearly the reason for refurbishment), retrofitting or relamping.
  2. What the MW and MWh savings will be?
  3. Are the savings (MW and MWh) monthly/yearly/seasonal/winter/summer?
  4. Are Eskom evening peaks – 17:00-19:00 (winter) and/or 18:00-20:00 (summer) clearly defined?
  5. Estimated Implementation period of the project.
  6. What are the monetary savings to the client due to the intervention?
  7. State lifespan of company / mine. If possible also include yield g/ton for mine. (Give references).
  8. Is it possible to compare the lifespan and yield to other companies/mines in the same group?
  9. Has the client signed a letter of intent (included later in the proposal) and also has the client seen and signed the project proposal document?
  10. Is the client aware of the DSM agreement, and payment details, if applicable?

Show project costs – capital and labour, project management remember to include ALL costs [especially audit fee, project management, travelling etc. if these are not included in the labour costs in the table format see table example below].

Table 2: Project Savings and Finance Summary

Total Capital Costs / R xxx
Total Labour Costs / R xxx
Project Management and Travelling Subsistence Costs / R xxx
Total Costs / R xxx
Total Project Savings / xxx MW
R’m/MW / xxx
  1. Indicate the R’m/MW –“Rand million per MW” (this is the total project costs excl. VAT divided total project savings).

3.TABLE OF CONTENTS

List all sections and tables, with page numbers

4.INTRODUCTION

4.1Background on ESCO

  • Include expertise / track record of company and personnel
  • Experience in project management
  • Experience/track record with regard to the technology proposed
  • Qualifications of staff
  • Capacity to complete the work
  • BEE/BWO/SMME status
  • Has a consultancy agreement been signed between the ESCO and the customer (letter of intent)?

4.2Background on Client – for example

Gold Fields LTD is the head office for GFI Mining S.A. (PTY) LTD. Driefontein is a deep level mine situated in Carltonville. An audit was conducted, which included all sections of the mine.(It is often necessary to do Internet research on company background [give reference])

The customer should sign off the proposal (both on the front page and initial each page).

Give a brief description as to how the project originated.

Is the customer aware:

  • That M&V will be monitoring the project and will need access to the site?

5.PROJECT BACKGROUND

Mention what will be covered by the project (if there are many areas within one site like the different areas on a mine, list them here) e.g.

Table 3: Individual Site Proposed Savings

Site / Existing (KW) / Proposed (KW) / Savings
Site 1
Site 2
Site 3
Site 4
Site 5
Total

5.1. Classification

This project can be classified as an Industrial Energy Efficiency (ICEE) project

5.2. Targeted areas

The following areas will be targeted

  • Laboratory & Workshops
  • General Areas
  • Main Office
  • Etc. etc

5.3. Summary of Proposed Intervention

The following shows the summary of the costs and savings proposed per area.

Table 4: Proposed savings according to area of installation

Area ofInstallation / TotalCapital Costs (R) / Labour Costs
(R) / Total Costs
(R) / Savings
kW
Laboratory & Workshops
General Areas
Main Office
TOTAL : / R 19,320,000 / R 3,380,000 / R 23,780,000 / 5999.264

For the diversity of 80% = 4799.20 kW = 4.799 MW

NB: For the detailed breakdown see the Appendix A: Consolidated Data, this will show, location, existing versus proposed, project savings and costs etc. The table in Appendix A (example for lighting) should be filled and can be adapted technology other than lighting.

6.PROJECT / PROCESS BACKGROUND (SCOPE OF WORK)

Describe what you will be doing, and explain about the different areas – what will be done, how will it be done (time frames etc.), and the list of material and pricing.

  1. SAVINGS & CONSUMPTION

7.1Are the savings quantified, time stamped and stated on the proposal in terms of MWh and MW? (Daily, weekly, monthly, summer vs. winter, seasonal average, yearly average)

7.2Have you included the methodology for the establishment of the savings (energy and demand) in the proposal?

7.3Load and power factors?

7.4What is the baseline based on (actuals or manufacturers specifications)?

7.5Are the BEFORE and AFTER DSM intervention load profiles included in the proposal?

7.6Is data for at least two months (used to calculate the baseline) included in the proposal?

7.7Have any variables that may affect the baseline been included in the proposal?

7.8From which meter was the data taken to calculate the baseline (type of meter, location of meter)?

7.9Is the project, after implementation of the DSM measures, energy neutral?

7.10What is the electrical efficiency of the proposed equipment?

7.11Have you stated the operational hours of the system clearly? Have you also included the tariff structure?

7.12Have the voltage, energy and demand levels been measured and taken into consideration?

  1. LOAD PROFILES

8.2Daily load profile (kW/MW) - Should include baseline (before) vs. proposed profiles in a form of a graph.

Figure 1: Simple Baseline vs. Proposed profiles

NB: This should be accompanied by data

Some possibilitiesexist:

  • If there is an existing DSM project(s) of the same technology on the site, the profile of the original baseline should be included and there will be a total of three profiles namely: The original baseline (before any DSM intervention), Actual (after the first intervention this is also the baseline for the new intervention), and then the proposed profile (Example below).

Figure 2: Proposed profile for the site with an existing DSM project on the same technology

  • If there are several technologies to be implemented, each technology should have its own profile (Existing vs. Proposed)

8.3Plant, Building Operating and Shifts should be indicated clearly:

8.4Tariff Structure:

State municipality and type of tariff

8.5Copy of client’s electricity bill (if available)

9FINANCE

9.1Overall project costs

Table 5: Overall Costs

Total Capital Costs / R 19,320,000
Total Labour Costs / R 3,380,000
Project Management / R 800,000
Pre-Audit / R 80,000
Travelling Subsistance / R 200,000
Subtotal / R 1,080,000
Total Costs excl. VAT / R 23,780,000
Total Costs incl. VAT / R 27,109,200

NB: Figures should tie up with the ones given in earlier sections of the document.

9.2Monetary savings (as a result of energy savings)

Show amount that client will save due to the intervention, also show calculations

10PROJECT RISKS

10.1Risks

  • State any risks that you know of that may be detrimental to the project.
  • Is there a risk associated with the technology/DSM Programme to the client?
  • Is there any risk associated with the new technology in South Africa?
  • If a risk assessment has been done for the project, kindly show the results.
  • Mitigation
  • State how all of the above risks will be mitigated correspondingly

11ENVIRONMENTAL ISSUES

  • State how unwanted / old material will be disposed of during the implementation stage.
  • Environmental impacts table to be inserted.

12PROCUREMENT DETAILS

12.1Indicate Finances (reference section 9)

12.2Scope of work (Reference Section 6)

12.3List of Equipment and Pricing (Reference Section 6)

12.4Detailed Labour Cost Breakdown

Labour cost: (specify who will be working on project and at what rate)

NB:Must be consistent in rates used and should tie-up with the figures given earlier in the document

Table 6: Example of detailed labour costs breakdown

Description - Labour / Quantity / HourlyRate / Hours / Total Costs
Per Category
Project manager / 1 / R450/hr / 60 / R27,000
Site Supervisor / 1 / R250/hr / 30 / R7,500
Electrician / 10 / R110/hr / 100 / R11,000
Semi skilled / 1 / R50/hr / 200 / R10,000
. / . / . / . / .
. / . / . / . / .
. / . / . / . / .
Total Costs / R800,000

12.5ProjectPre-Audit Fees(rates and times must tie up with those already given).

12.6Travelling subsistence Costs (again rates and times must tie up with those already given).

12.7Use of Subcontractors (BEE, SMME, etc.),state if, when & where you will be using a subcontractor and give details of the company/person etc.

Also should state portion of “work” to be allocated to BEE Company – e.g. 30% if applicable.

12.8State current list of directors and share percentages

Give details:

12.9Current financial statements and letter from auditor showing business capacity (if necessary, state accountant’s name and contact details)

12.10Does the equipment to be used need to be imported? If so form “SA 47 I.G Rev 24” must be completed

12.11Current TAX clearance certificate (original to be attached)

12.12Current VAT Certificate – Include copy

IDM Project Proposal ExampleTemplate Identifier: 240-55464756 Rev 1

Effective date: 2013-02-13

[NAME OF PROJECT]Page 1 of 13

APPENDIXA: CONSOLIDATED DATA SHEET

Table 7: Example Lighting:Consolidated Project Data

IDM Project Proposal ExampleTemplate Identifier: 240-55464756 Rev 1

Effective date: 2013-02-13

[NAME OF PROJECT]Page 1 of 13

APPENDIXB: DOCUMENTATION

B1. Letter of Intent

Notes

This letter must be on client’s letterhead as no proposal will be evaluated without this important document. If the client is a municipality – the council resolution for the project must be attached.

Also

Please note that the proposal must be signed off by the customer on the front page of the proposal and each page should also be signed off.

IDM Project Proposal ExampleTemplate Identifier: 240-55464756 Rev 1

Effective date: 2013-02-13

[NAME OF PROJECT]Page 1 of 13