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SA CPFP Guidelines
Issued: 06 March 2008
Disclaimer:
This guidelines document provides the criteria to assess proposals from potential capital feasibility projects and the process of
applying for the programme. The guidelines are approved and issued by the Director General of Trade and Industry for the purpose
of ensuring clarity on the aim and requirements of the incentive programme. the dti reserves the right to amend the guidelines as it
deems appropriate.
The Enterprise Organisation Department of Trade and IndustryPrivate Bag X86, Pretoria 0001 Website: www.thedti.gov.zaCall Centre: 0861 843 384 the dti Campus: 77 Meintjies Street, Sunnyside, Pretoria 0002Republic of South Africa
ConTenTsseCTIon Page
1. Background 5
2. Nature of the advance 5
3. Objectives of the Programme 5
4. Eligibility Criteria 5
5. Applicant Information Required 6
Appendix A” Glossary of Abbreviations, terms and definitions 8
Contact details for enquiries Back Page
SA CPFP Guidelines
1 BaCKgRoUnD
In many countries worldwide (both developed and developing), the capital goods sector has beenidentified as an appropriate sector to target due to its valuable contribution to industrial development. The Capital Projects Feasibility Programme is a cost-sharing scheme, providing a contribution to the cost of feasibility studies that are likely to lead to projects outside South Africa tha will increase local exports and stimulate the market for South African capital goods and services.
2 naTURe oF THe aDVanCe
The programme’s contribution is in the form of an advance of up to 50% of the study costs forprojects outside Africa and 55% for projects in Africa. Depending on the nature of the proposed project, a period of more or less 18 months may be allowed for funds to be sourced for the project.
3 oBJeCTIVes oF THe PRogRaMMe
The primary objective of the programme is to facilitate feasibility studies that are likely to lead to projects that will increase SA exports, stimulate growth for the local capital goods and services sector and allied industries.The secondary objectives of the programme include: • Attracting higher levels of domestic and foreign investment • Strengthening the international competitiveness of South African business • Creation of jobs in South Africa • Stimulation of project development in Africa and in particular the Southern African Development Community (SADC) countries as well as support for the objectives of the New Partnership for Africa’s Development • Promoting linkages with and development of small, medium and micro enterprises and black economic empowerment businesses.
4 eLIgIBILITY CRITeRIa
4.1 Feasibility study and Feasibility study Promoter Criteria Studies that fulfil the following criteria will be eligible to apply for an advance from the programme: • Studies must be undertaken by South African companies • Although a project should aim at achieving local content of 50% in the feasibility study and project, in terms of goods and professional services, this percentage will remain at the dis cretion of the Adjudication Committee.
4.1.1 The application will be evaluated according to the following: • The applicant for the feasibility study / service provider must be a South African registered company • The feasibility study service provider must supply the Adjudication Committee with a certificate from an accredited institution confirming its Broad Based Black Economic
page 05 / 10Capital Projects Feasibility Programme08 / 2008
Empowerment Scorecard in line with the BBBEE Codes of Good Practice that have been published by the dti • Such BBBEE scorecard must indicate a minimum score of 30% or such minimum score (in line with the ECIC’s agreement between the ECIC and the Minister or the Director General of Trade and Industry) • The size of advance must fall within the range of R 100 000 to R5 million, which can be a maximum of 55% for projects in Africa and 50% for projects outside Africa of the total feasibility study costs • The advance will then proportionally be reduced depending on the proposed percentage of local content.
4.2 PRoJeCT CRITeRIa The project must fulfil the following non-financial criteria: • New projects, expansion of existing projects and the rehabilitation of existing projects will be considered • All capital goods sectors are eligible for programme funding • The project that is anticipated to emerge from the study must fulfil the objectives of the programme (as specified above) • The minimum local content of the project should be 50%, but in cases where this is not achieved, the application will be evaluated as described in A.4.1.1 of ECIC requirements • Projects can be situated anywhere in the world (excluding South Africa), while projects in Africa will be encouraged • The project must have an adequate chance of being declared a success.
Additional motivating factors for the study may include aspects of the project, such as: • A positive impact on other development aspects, including linkages with small, medium and micro businesses as well as linkages with black economic empowerment businesses • The time period within which the project emanating from the study will be realised.
5 aPPLICaTIon InFoRMaTIon ReQUIReD
To apply for a Capital Projects and Feasibility Study, the study promoter must submit the following: • Application Form • Valid Tax Clearance Certificate • Financial statements • Curriculum Vitae of study team • Company references • Where the study promoter represents a client, a letter from the client confirming this is required.
5.1 aPPLICaTIon An application must be submitted by the study promoter and must cover (although not be limited to) the following information:
page 06 / 10
SA CPFP Guidelines
5.1.1 applicant Information • Name and address of project promoter or initiator • Business registration number and date (i.e. Republic of SA Company Number) • VAT number and income tax number • Background and nature of business • Management and ownership • References regarding previous feasibility studies conducted.
5.1.2 Project Background • Location of the project (country / city) • Owner of the final project and whether a public or private sector organisation and credibility at local level • Credit rating of the country • Political, economic and currency risks • Analysis of competition • Description of basic project idea and study parameters • Motivation for the study / project objectives • Likely impact of the project (exports/ jobs/ BEE/ SMEs) • Maximum financial exposure • Detailed review of investment code issues.
5.1.3 Project Information • Market analysis - description of demand and market • Owner capacity, local knowledge and ability to operate • Operator capacity and local knowledge – if owner is not also the operator • Ability to secure financing • Resources and infrastructure – availability of critical inputs and possible strategies • Location and environmental impact • Engineering and technology – project engineering and availability of the technology and equipment • Financial analysis – estimated costs of project implementation; possible sources and structuring of programming for the project • Details of potential take-off agreements • Other requirements for project to be successful (e.g. additional infrastructure, export credit insurance cover).
5.1.4 Work schedule • Proposed work schedule for the study including Gannt chart
5.1.5 Feasibility study Costs • Study costs • Key study milestones and anticipated payments associated with these • Evidence that study promoter has resources to undertake study
page 07 / 10Capital Projects Feasibility Programme08 / 2008
5.1.6 study Team • Details of study team, roles and responsibilities and experience • Details of sub-contractors, roles and associated costs.
aPPenDIx a:
Glossary of abbreviations, terms and definitions
DeFInITIons
aBBReVIaTIons
the dti Department of Trade and Industry
ECIC Export Credit Insurance Corporation of South Africa
IDC Industrial Development Corporation of South Africa
MoU Memorandum of Understanding
TEO The Enterprise Organisation
TISA Trade and Investment South Africa
EIDD Enterprise and Industry Development Division
DeFInITIons
adjudication Committee A committee composed of members as discussed in Section 2.1 with duties
as described in Section 2.1.4
Bankable Project A project certain to bring profit or a project proposal which is deemed viable
and acceptable for a financial institution to finance
Complete study A complete study or complete feasibility study is one which the final milestone
payment has been made
Programme Manager The manager responsible for overseeing the administration of the fund in TEO
Feasibility study or study A study of the practicability of a proposed project that fulfils the criteria as
specified in Section 1.4
Feasibility study Promoter A person or company that promotes the development of a Feasibility Study or
Study Promoter on behalf of himself or a client
Project A planned commercial undertaking or long term task that fulfils the criteria as
discussed in Section 2.3.2
Project promoter A person or company that promotes the development of a project on behalf
of himself or a client / developer
Compliance with Broad- Compliance with Broad-Based Black Economic Empowerment in terms of the
Based Black economic Black Economic Empowerment Act (53 of 2003) and the Codes of Good
empowerment Practice for Broad-Based Black Economic Empowerment, as issued in
Government Gazette 09 February 2007
page 08 / 10
SA CPFP Guidelines
Compliance to Broad-Based Black economic empowerment
Please read on. Page 12 contains the Application Form
Level Bee score Bee Recognition Level
1 >100 135 % (e.g. R1= R1.35
2 85 ~ 100 125%
3 75 ~ 85 110 %
4 65 ~ 75 100 % (e.g. R1 = R1)
5 55 ~ 65 80 %
6 45 ~ 55 60 %
7 40 ~ 45 50 %
8 30 ~ 40 10 %
Not Complaint < 30 0 % (e.g. R1 = R0)
page 09 / 10Capital Projects Feasibility Programme08 / 2008
CaPITaL PRoJeCTsFeasIBILITY PRogRaMMe
aPPLICaTIon FoRMPLEASE NOTE THE FOLLOWING BEFORE COMPLETING THE FORM:
1. Be sure to have read the form fully and understood it.
2. The application form must be submitted before any activities applied for are started.
3. Applications must be signed by the authorised representative of the company and dated.
4. Before submitting your application, be sure to have attached all the required documents
(see Section 7).
5. It is advisable to read through the document: Capital Projects Feasibility Programme Application
Guidelines (the document is obtainable on the dti website).
How did you find out about the the Capital Projects Feasibility Programme?
Please return completed forms by registered mail or by courier / hand deliver to:
ConFIDenTIaL
the dti Group
Word of Mouth
the dti Website
Other
Road Show / Exhibition / Presentation
the dti Regional Office
Advertisement: TV / Radio / Print
Private Sector Consultant
the dti Customer Contact Centre
FOR the dti USE ONLY
Date of Receipt:
Unique reference number:
Postal Address Physical Address Courier Address Web AddressPrivate Bag X84 77 Meintjies Street 12 Esselen Street (Ground Floor) www.thedti.gov.za
Pretoria Sunnyside Shared Service Centre
0001 Pretoria Sunnyside, Pretoria
0002 0002
SA CPFP Guidelines
page 13 / 24
Sect
ion
1: A
PPLI
CA
NT
INFO
RM
ATIO
N
1. R
egis
tere
d na
me
of e
ntity
in
full:
1.1
Trad
ing
nam
e (w
here
ap
plic
able
):2.
Pos
tal a
ddre
ss:
3. P
rinci
pal p
hysi
cal a
ddre
ss:
4. B
usin
ess
Reg
istra
tion
num
ber:
(Rep
ublic
of S
A co
mpa
ny n
umbe
r)
4.1
Dat
e of
Reg
istra
tion:
5. In
com
e ta
x re
fere
nce
num
ber:
6. V
AT R
egis
tratio
n nu
mbe
r:7.
Stu
dy P
rom
oter
:(o
r nam
e of
con
tact
per
son
in a
pply
ing
com
pany
)
Nam
e:D
esig
natio
n:Te
leph
one:
Fax:
Mob
ile:
Em
ail:
8. W
here
a s
tudy
pro
mot
er
repr
esen
ts a
clie
nt:
(whe
re th
e bu
sine
ss o
pera
tions
are
loca
ted)
Nam
e of
clie
nt:
Con
tact
per
son:
Pos
tal a
ddre
ss:
Phy
sica
l add
ress
:
Fax:
Mob
ile:
Em
ail:
9. S
hare
hold
er %
Ow
ners
hip
Rac
e G
ende
rR
ace
Gen
der
page 14 / 24
Sect
ion
2: P
RO
JEC
T B
AC
KG
RO
UN
D10
. Fut
ure
owne
r of t
he P
roje
ct
11. I
s th
e ow
ner a
Priv
ate
or P
ublic
Sec
tor c
lient
? W
hat i
s th
eir c
redi
bilit
y at
loca
l lev
el?
12 T
itle
and
desc
riptio
n of
the
proj
ect
13. A
ims
and
obje
ctiv
es o
f the
feas
ibili
ty s
tudy
14. O
utco
me
of th
e pr
ojec
t (lik
ely
impa
ct)
15. L
ocat
ion
of th
e pr
ojec
t (co
untry
, city
)
16. C
redi
t rat
ing
of th
e co
untry
SA CPFP Guidelines
page 15 / 24
Sect
ion
2: P
RO
JEC
T B
AC
KG
RO
UN
D17
. Pol
itica
l, ec
onom
ic a
nd c
urre
ncy
risks
18. A
naly
sis
of c
ompe
titio
n, p
oten
tial o
r exi
stin
g. P
leas
e al
so p
rovi
de n
ames
of m
ajor
com
petit
ors,
if a
ny
19. D
etai
ls o
f pre
-feas
ibili
ty s
tudy
/ies
(if c
ondu
cted
)
19.1
Cos
t of p
re-fe
asib
ility
stu
dy/ie
s co
nduc
ted
20. M
axim
um fi
nanc
ial e
xpos
ure
Sect
ion
3: P
RO
JEC
T IN
FOR
MAT
ION
21. B
rief d
escr
iptio
n of
the
mar
ket a
nd d
eman
d
22. O
wne
r cap
acity
, loc
al k
now
ledg
e an
d ab
ility
to o
pera
te
23. C
apac
ity a
nd k
now
ledg
e of
ope
rato
r (if
owne
r not
ope
rato
r)
30. D
escr
iptio
n of
any
oth
er re
quire
men
ts fo
r pro
ject
to b
e su
cces
sful
page 16 / 24
Sect
ion
3: P
RO
JEC
T IN
FOR
MAT
ION
21. B
rief d
escr
iptio
n of
the
mar
ket a
nd d
eman
d
22. O
wne
r cap
acity
, loc
al k
now
ledg
e an
d ab
ility
to o
pera
te
23. C
apac
ity a
nd k
now
ledg
e of
ope
rato
r (if
owne
r not
ope
rato
r)
24. B
rief d
escr
iptio
n of
reso
urce
s an
d in
frast
ruct
ure
requ
ired
for p
roje
ct a
nd a
vaila
bilit
y of
thes
e
25. E
nviro
nmen
tal i
mpa
ct o
f the
pro
ject
(lik
ely
or o
bvio
us im
pact
s) a
nd/o
r det
ail o
f Env
ironm
enta
l Im
pact
Ass
essm
ent/
Sco
ping
stu
dies
com
plet
ed
26. P
ossi
ble
linka
ges
to e
xist
ing
or fu
ture
pro
ject
s
27. B
rief d
escr
iptio
n of
the
engi
neer
ing
and
tech
nolo
gy re
quire
men
ts fo
r the
pro
ject
28. E
stim
ated
cos
ts fo
r the
pro
ject
, pos
sibl
e so
urce
s, s
truct
urin
g of
fund
ing
for t
he p
roje
ct a
nd a
bilit
y to
sec
ure
finan
ce- i
nclu
ding
any
loca
l fin
anci
ng,
deve
lopm
ent f
unds
, for
eign
fina
nce,
ple
ase
also
indi
cate
equ
ity
29. I
f the
loca
l con
tent
is le
ss th
an 5
0%, p
leas
e in
dica
te y
our B
BB
EE
sta
tus-
scor
ecar
d, c
rede
ntia
ls e
tc a
ttach
e
30. D
escr
iptio
n of
any
oth
er re
quire
men
ts fo
r pro
ject
to b
e su
cces
sful
SA CPFP Guidelines
page 17 / 24
Sect
ion
4: F
EASI
BIL
ITY
STU
DY
WO
RK
SC
HED
ULE
21. M
ilest
one
Exp
endi
ture
(exc
ludi
ng V
AT)
Sta
rt D
ate
End
Dat
e
page 18 / 24
Inst
ruct
ions
Ple
ase
list e
ach
mile
ston
e to
be
com
plet
ed. T
he d
urat
ion
(in w
eeks
) of e
ach
mile
ston
e is
to b
e gr
aphi
cally
repr
esen
ted.
For
exa
mpl
e, in
the
illus
trativ
e sc
hedu
le, M
ilest
one
I is
to b
egin
in W
eek
1 an
d
end
in w
eek
3. P
repa
ratio
n of
the
Fina
l Rep
ort b
egin
s in
Wee
k 6
and
is c
ompl
eted
in W
eek
9.
Sect
ion
4: F
EASI
BIL
ITY
STU
DY
WO
RK
SC
HED
ULE
Mile
ston
e C
ompl
etio
n Sc
hedu
le
Wee
ks
12
34
56
78
9
Mile
ston
e I
Mile
ston
e II
Mile
ston
e III
Fina
l Rep
ort
SA CPFP Guidelines
page 19 / 24
Sect
ion
5: F
EASI
BIL
ITY
STU
DY
CO
STS
22. A
ctiv
ityD
escr
iptio
n of
Act
ivity
Cos
t/R (e
xcl.
VAT)
page 20 / 24
PRO
JEC
T C
OST
EST
IMAT
ES:
Cos
t bre
akdo
wn:
(
sub
tota
ls)
(tota
ls)
(sub
tota
ls)
(tota
ls)
RA
ND
RA
ND
% %
Bud
gete
d pr
ojec
t cos
ts:
- man
pow
er (d
etai
ls to
be
prov
ided
in A
nnex
ure)
XX
- m
ate
rials
(d
eta
iled lis
t to
be p
rovid
ed s
epara
tely
)X
X
- Tra
vel
XX
- Cap
ital E
xpen
ditu
reX
XX
XX
- Doc
umen
tatio
nX
X
- Pat
ents
XX
- App
licat
ion
prep
arat
ion
Con
sulta
nt fe
esX
X
- Mar
ketin
gX
XX
XX
- Sub
-con
tract
ors:
- #1
XX
- #2
XX
- #3
XX
Sub
-tota
lX
XX
XX
Tota
l pro
ject
cos
tsX
XX
10
0
Min
us q
ualif
ying
cos
ts:
- Mar
ketin
gX
XX
- Tra
vel
XX
X
- Man
pow
erX
XX
- Pro
duct
ion
XX
X
- App
licat
ion
prep
arat
ion
fee
XX
X
- Cap
ital E
xpen
ditu
reX
XX
Sub
-tota
lX
XX
Qua
lifyi
ng p
roje
ct c
osts
XX
App
lican
t’s c
ontri
butio
nX
X
Tota
l pro
ject
cos
tsX
XX
10
0
SA CPFP Guidelines
page 21 / 24
Sect
ion
6: S
TUD
Y TE
AM
23. N
ame
Qua
lific
atio
nR
ole/
resp
onsi
bilit
yE
xper
ienc
e
page 22 / 24
sect
ion
7: s
UPP
oR
TIn
g D
oC
UM
enTa
TIo
n R
eQU
IReD
The
follo
win
g in
form
atio
n m
ust b
e at
tach
ed to
this
app
licat
ion
form
:1.
Val
id ta
x cl
eara
nce
certi
ficat
e2.
Lat
est fi
nanc
ial s
tate
men
ts3.
3 (t
hree
) Com
pany
refe
renc
es4.
Let
ter o
f aut
horis
atio
n fro
m c
lient
, con
firm
ing
appo
intm
ent o
f Stu
dy P
rom
oter
to a
ct o
n be
half
of c
lient
5. C
V o
f stu
dy p
rom
oter
sect
ion
8: D
eCLa
RaT
Ion
BY
aPP
LIC
an
T
DeC
LaR
aTIo
n:
I her
eby d
ecla
re th
at th
e in
form
atio
n in
this
app
licat
ion
is a
fair
and
true
refle
ctio
n of
my i
nten
ded
proj
ect a
nd th
at a
ll rel
evan
t info
rmat
ion
has b
een
disc
lose
d. I
am a
war
e of
the
cont
ents
of t
his
appl
icat
ion
and
I dec
lare
that
the
appl
icat
ion
has
been
com
plet
ed in
full,
and
are
as n
ot c
ompl
eted
, hav
e be
en d
elet
ed, b
efor
e m
e af
fixin
g m
y si
gnat
ure
here
to. I
am
aw
are
that
the
info
rmat
ion
whi
ch I h
ave
subm
itted
abo
ve, w
ill h
ave
a m
ater
ial b
earin
g on
the
adju
dica
tion
of th
e ap
plic
atio
n an
d if i
t sub
sequ
ently
tra
nspi
res t
hat a
ny in
form
atio
n in
the
appl
icat
ion
and
adde
nda
was
not
corr
ect,
or th
at ce
rtain
info
rmat
ion
was
om
itted
, the
Cap
ital P
roje
cts F
easi
bilit
y Stu
dy A
djud
icat
ion
Com
mitt
ee s
hall b
e en
title
d to
with
draw
or a
men
d its
app
rova
l and
with
out p
reju
dice
to it
s rig
hts,
reco
ver a
ny a
mou
nts
alre
ady
paid
or w
ithho
ld fu
rther
pay
men
ts d
ue.
This
app
licat
ion
(with
any
add
enda
), if
succ
essf
ul, w
ill fo
rm p
art o
f you
r con
tract
to th
e dt
i.
PLE
AS
E F
ILL
IN B
LOC
K L
ETT
ER
SN
ame
of A
pplic
ant:
Des
igna
tion:
Sig
natu
re:
Dat
e:
Department:Trade and IndustryRePUBLIC oF soUTH aFRICa
Department:Trade and IndustryRePUBLIC oF soUTH aFRICa
CONTACT DETAILS FOR ENQUIRIESFor further information on, please contact:
The Enterprise Organisation Private Bag X86 Pretoria 0001
the dti Campus, Building A, 2nd Floor77 Meintjies Street SunnysidePretoria 0002
Website: www.thedti.gov.zaCall Centre: 0861 843 384
Design and printing: Hallcom (Pty) ltd 012 344 1408, [email protected]