Objectives

The primary objective of this tender is to obtain a service provider capable of estimating and providing future costs related to the decommissioning, decontamination, and dismantling (D&D) of Pelchem SOC Ltd's chemical manufacturing plants for the 2025/2026 financial year. The service aims to ensure accurate liability estimation in accordance with international standards and best practices, supporting Pelchem's compliance and financial reporting obligations.

Scope

The scope of work includes:

• Decommissioning: Developing detailed methodologies, assumptions, procedures, and cost estimates to render plant and equipment unfit for reuse, considering future disposal and salvage value.
• Dismantling: Providing methodologies, procedures, and cost estimates for dismantling manufacturing facilities and components.
• Planning and Estimation: Preparing a comprehensive D&D plan aligned with international best practices, including alternative methods, tariffs, and basis for cost calculations.
• Financial Support: Supporting the estimation process with detailed calculations, benchmarking references, and data compliant with IFRS standards related to provisions and liabilities.
• Audit Readiness: Ensuring the estimates and methodologies are prepared to withstand audit scrutiny, including sharing previous audit findings for resolution.

Technical Requirements

The technical requirements include:

• Preparation of a detailed D&D liability estimation plan based on international best practices.
• Provision of detailed methodologies, assumptions, and procedures for decommissioning and dismantling activities.
• Support for the estimation process with supporting calculations, benchmarking, and actual data.
• Compliance with IFRS standards related to provisions, contingent liabilities, and contingent assets.
• Development of a comprehensive D&D plan covering alternative methods, tariffs, acceptance criteria, duty, disbursements, and other relevant factors.
• Preparation of documentation suitable for audit by multiple audit firms and the AGSA.

Skills Requirements

The successful bidder must demonstrate:

• Proven track record in preparing D&D liabilities, with audit experience involving at least five audit firms and the AGSA.
• Ability to handle queries and make adjustments promptly, with sufficient resources allocated for this purpose.
• Inclusion of qualified Chartered Accountants (CA) registered with SAICA in the project team.
• Experience in preparing annual financial statements with D&D liabilities for state-owned entities.
• Minimum of five years’ experience specifically in D&D liability estimation and related financial reporting.
• Capability to address audit questions and support the D&D liability estimates during the 2025/2026 audit process.