RFP – INDEPENDENT AUDITOR

September 2026.

Request For Quotations (RFQ): Appointment Of an Independent Auditor to Conduct the Annual Economic Development Audit for The Red Sands Battery Energy Storage System (BESS) Project, !Kheis Local Municipality, Northern Cape.

RFPs must be submitted on or before 30 September 2026 at 16:00.

Submissions should be emailed to:

  1. Ben Herbst: Ben.Herbst@globeleq.co.za
  2. Nonini Makhothe: Nonini.Makhothe@globeleq.co.za 

Summary

The Red Sands BESS (RF) (Pty) Ltd invites suitably qualified, experienced and independent service providers to submit proposals for the annual independent Economic Development audit required in terms of the Project’s Implementation Agreement.

Background

The Red Sands BESS (RF) (Pty) Ltd (Registration No. 2020/432975/07) (the “Seller”) is the project company for the Red Sands BESS Facility, a 153 MW battery energy storage facility located on the Remainder of Portion 19 of the Farm Rooisand 387, Gordonia RD, !Kheis Local Municipality, Northern Cape. The Facility is being developed under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), pursuant to an Implementation Agreement concluded between the Seller and the Department of Electricity and Energy on 19 June 2025.

Schedule 2 (Economic Development Obligations) to the Implementation Agreement obliges the Seller, to appoint an independent auditor on an annual basis in respect of each Contract Year to:

  • Review the records of the Seller and its Material Contractors, including any records relating to Economic Development monitoring or audits conducted by them, for the purpose of verifying all claims made by the Seller as to compliance with its Economic Development Obligations;
  • Prepare a report detailing its findings on the extent to which the Seller has met its Economic Development Obligations, and in particular the extent to which the achievements reported in the Seller’s quarterly Economic Development reports accurately reflect or exceed actual achievements based on the underlying records of the Seller and its Contractors; and
  • Submit that report to the Department within six (6) months after the end of the applicable Contract Year.

The audit report must be presented in a manner that facilitates the Department’s calculation of Economic Development Performance Penalties, and must include confirmation by the auditor, in a form satisfactory to the Department, of the Seller’s achievements in respect of each Economic Development Sub-Element for the applicable measurement period. The services must be performed in accordance with appropriate professional standards as notified to the Seller by the Department from time to time.

This RFP relates to the annual independent Economic Development audit for Contract Year 1, being the period from the Effective Date (19 June 2025) to 30 June 2026, which comprises Contract Quarters 1 to 4 of the Construction Measurement Period. The appointed auditor may, at the Seller’s election, be retained for subsequent Contract Years on the same terms.

The Seller’s Material Contractor for the Construction Measurement Period is the Energy China-CGGC-Davha Joint Venture (the EPC). An interim agreed-upon procedures verification of the EPC’s reported Quarter 1 to Quarter 3 Economic Development achievements has already been completed, and the resulting findings are in the process of being closed out. The outputs of that engagement will be made available to the appointed auditor.

SCOPE OF WORK (SoW)

The scope of the contract is the planning, execution and reporting of the Economic Development audit for Contract Year 1 in accordance with Schedule 2 (Economic Development Obligations) of the Implementation Agreement, inclusive of but not limited to the deliverables listed below.

Audit Planning and Inception

  • Conduct an inception meeting with the Seller to confirm the audit scope, methodology, documentation requirements, project programme and reporting timelines.
  • Confirm and document the professional standard under which the engagement will be performed, having regard to the standards notified by the Department and to the IPP Office’s Economic Development reporting requirements and ED Monitoring Notes.
  • Agree a detailed audit programme, data request schedule and verification criteria with the Seller and the Material Contractor prior to commencement of fieldwork.
  • Confirm the applicable measurement period, Contract Quarters and committed obligations against the Economic Development Matrix contained in Annex 1 to Schedule 2.

Review of Seller and Material Contractor Records

  • Review the records of the Seller and its Material Contractors, including internal Economic Development monitoring, self-audits and quality assurance records maintained during the Contract Year.
  • Obtain and review the quarterly Economic Development reports submitted to the Department and to the Project Company for each Contract Quarter in the Contract Year, together with the underlying source data sets.
  • Verify that the reported achievements are supported by appropriate evidence documents and identify and quantify any variance between reported and verifiable achievements.
  • Confirm the completeness of the reported population and identify any omitted, duplicated or incorrectly allocated employee or procurement transactions.

Verification of Economic Development Sub-Elements

The audit must cover all Economic Development Elements and Sub-Elements applicable to the Construction Measurement Period, including:

  • Element 100 – Job Creation: Total RSA Based Employees and Sub-Elements 100-SR-01 to 100-SR-08, including Citizens, Black People, Skilled Employees, Skilled Black Employees, Black People with Specialised Skills, Citizens resident in Local Communities, Black Youth, Black Women and People with Disabilities.
  • Element 200 – Local Content: Sub-Element 200-SR-01, including verification of Local Content Declarations and the Total Project Value base.
  • Element 300 – Ownership: Sub-Elements 300-PC-01 to 300-PC-04 (shareholding in the Seller) and 300-CC-01 and 300-CC-02 (shareholding in the Construction Contractor).
  • Element 400 – Management Control: Sub-Elements 400-SR-01 to 400-SR-06, covering Board of Directors, Executive Management and Senior Management.
  • Element 600 – Preferential Procurement: Sub-Elements 600-SR-01 to 600-SR-04 and Supplier Development Contributions under 600-SR-05.
  • Any further Sub-Element that becomes applicable to the measurement period, or that the Department directs be included, during the construction measurement period.

Recalculation and Performance Assessment

  • Independently recalculate the achievement for each Economic Development Sub-Element using the verified data sets, retaining the original data sets intact.
  • Compare the verified achievements against the Committed Obligations set out in the Economic Development Matrix and the applicable quarterly and annual obligations.
  • Present, for each Sub-Element, the quantum reported, the quantum verified, the applicable obligation and the resulting variance, expressed in the relevant unit of measure and as a percentage.
  • Present the results in a manner that enables the Department to calculate any Economic Development Performance Penalties for the Contract Year.

Findings, Exceptions and Corrective Action

  • Issue a draft annual Economic Development audit report to the Seller for management review and comment, together with a management letter setting out control findings.
  • Issue a final signed annual Economic Development audit report in a form satisfactory to the Department, confirming the Seller’s achievements in respect of each Economic Development Sub-Element for the applicable measurement period.
  • Provide the verified data sets, calculation workbooks and supporting schedules used to derive the reported achievements.
  • Support the Seller in submitting the report to the Department within the contractual timeframe, and respond to any queries raised by the Department, the IPP Office or an Economic Development Independent Monitor appointed by the Department in respect of the report.

Access, Confidentiality and Data Protection

  • Conduct all verification activities in accordance with the Protection of Personal Information Act, 2013 (Act No. 4 of 2013), and maintain the confidentiality of all information obtained during the engagement.
  • Use all documentation and information provided by the Seller and its Material Contractors solely for the purposes of the audit and disclose it to no third party without prior written consent, save as required by law or by the Implementation Agreement.

Minimum requirements and Eligibility Criteria

Prospective service providers are to submit the following mandatory compliance documents to avoid immediate disqualification:

  • Proposal with methodology, work plan, detailed costing (excluding VAT) and timelines
  • Company profile demonstrating a minimum of 5 years of Economic Development verification or audit experience on REIPPPP, BESIPPPP or comparable IPP Office projects
  • Profile of the candidate leading the Audit, together with profiles of the proposed team members
  • 3 references from previous work of similar nature, including at least one annual independent Economic Development audit submitted to the IPP Office
  • Demonstrated working knowledge of Schedule 2 (Economic Development Obligations), the Economic Development Matrix and the Department’s ED Monitoring Notes
    • Company registration document
    • Certified ID copies of all Directors
    • Valid BBBEE certificate or sworn affidavit
    • Valid Tax compliance certificate
    • Proof of professional indemnity insurance cover
    • Registration with IRBA, membership of SAICA or accreditation as a SANAS-accredited B-BBEE Verification Agency will be an added advantage

RFP Submission:

Project Delivery and Time Frames:

  • The service provider will be expected to commence within 5 working days of receiving the appointment letter.
    • A draft annual Economic Development audit report is to be delivered within 30 days of the appointment letter.
    • The final signed annual Economic Development audit report is to be delivered within 45 days of the appointment letter, to enable submission to the Department within the timeframe prescribed by the Implementation Agreement.
  • RFPs must be submitted on or before 30 September 2026 at 16:00. Submissions should be emailed to:
    1. Ben Herbst
    Ben.Herbst@globeleq.co.za
    2. Nonini Makhothe
    Nonini.Makhothe@globeleq.co.za
    Only emailed submissions will be accepted. No late submissions will be accepted.

Selection Criteria:
Evaluation Scoresheet for RFQ

We look forward to receiving your quotations.
Thank you for your participation.

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