CONSTRUCTION MANAGEMENT UNIT OVERVIEW OF THE CONSTRUCTION MANAGEMENT UNIT WITHIN THE NWRI Presented by: Mr D Mashitisho Director-General 23 May 2017

CONSTRUCTION MANAGEMENT PURPOSE The construction, rehabilitation, refurbishment and maintenance of National Water Resources Infrastructure, in order to ensure a sustainable supply of water to meet the social and economic needs of the people of South Africa

CONSTRUCTION MANAGEMENT MANDATE The CD:CM resides within the NWRIB, and is mandated to construct new water resources infrastructure to meet industrial, agricultural and social (domestic) bulk water supply requirements and to facilitate economic growth and development, including the rehabilitation and upgrading of existing water supply infrastructure to comply with international dam safety standards. The CD:CM functions as an in-house construction unit in the construction of water resources infrastructure, in accordance with the respective Service Level Agreements (SLA) or Memorandums of Understanding (MOU) entered into with different clients. The CD:CM client base consists out of Chief Directorates residing within the Water Trading Entity, Main Account and also includes third party clients (i.e. Municipalities and Water Boards).

NWRI ORGANISATIONAL CHART RELATING TO CONSTRUCTION MANAGEMENT MINISTER DWS DIRECTOR GENERAL DG DEPUTY DIRECTOR GENERAL DDG: NWRIB CD:CONSTRUCTION MANAGEMENT Vacant CONSTRUCTION SUPPORT M Maraka CONSTRUCTION EQUIPMENT K Fortuin CONSTRUCTION NORTH F Mothiba CONSTRUCTION EAST A van Heerden CONSTRUCTION SOUTH H Swart CONSTRUCTION WEST W Theron FLEET MANAGEMENT CENTRAL WORKSHOP J Bezuidenhout CONSTRUCTION PROJECTS CONSTRUCTION PROJECTS CONSTRUCTION PROJECTS CONSTRUCTION PROJECTS EQUIPMENT AQUISITIONS MANUFACTURING EQUIPMENT RE-BUILDS

HISTORY OF CD:CD WITHIN THE DEPARTMENT The Department had a large staff component and many resources associated with the rapid growth in construction. 1945 Radical change took place in thinking on water management. In the past half a century the emphasis had been placed on supplying water to irrigators who used water extravagantly. The growing needs of expanding mines and industry as well as domestic users required a complete change in water legislation focusing on our limited water resources.

HISTORY OF CD:CD WITHIN THE DEPARTMENT

HISTORY OF CD:CD WITHIN THE DEPARTMENT

HISTORY OF CD:CD WITHIN THE DEPARTMENT 1992 An interim government came into being as preparation for the first democratic elections of the country. 1994 The ANC won the first democratic elections and came into power. 1998 The newly elected government brought about a process of development of principles for water resource management and a new legislation - the National Water Act (Act 36 of 1998) was promulgated not only to allow sustainable water resource management but also to alleviate poverty.

2004 Completion of the Nandoni dam and opened in 2005 HISTORY OF CD:CD WITHIN THE DEPARTMENT 2004 Completion of the Nandoni dam and opened in 2005 Nandoni Dam falls within the Luvuvhu River Government Water Scheme (LRGWS). The main purpose of the LRGWS is to supply water for domestic use to the area between Makhado and Punda Maria (Kruger National Park) in the Limpopo province, to about 800 000 people with the potential of reaching 1.1 million people and also for socio-economic development and upliftment of the communities.

2014 March the president Mr Jacob Zuma officially opened De Hoop Dam HISTORY OF CD:CD WITHIN THE DEPARTMENT 2014 March the president Mr Jacob Zuma officially opened De Hoop Dam De Hoop Dam, which is the 13th largest dam in the country, created more than 1000 jobs. It is one of the key projects that fall under the umbrella of the Presidential Infrastructure Coordination Commission, which was established in 2012 to coordinate and fast-track infrastructure projects, under the leadership of President Jacob Zuma.

CD:CM CORE COMPETENCIES Core Competencies includes the construction of, but is not limited to: Large Dams; Rehabilitation of existing Dams; Pipelines (Bulk and Reticulation); Canals; Roads (Gravel, Paved and Asphalt); Water Purification Works; Reservoirs; Pump Stations; Bridges; Weirs; Gauging Stations; and Building work.

BUILDING CAPACITY WITHIN CD:CM AND DWS Acquiring skills that did not previously exist within DWS CD:CM Programmers and Planners; Quantity Surveyors; Geotechnical Specialists; Contract Administration Specialists; Design Specialists; Environmental Specialists; and Legal Specialists.

NWRI BRANCH CD: INFRASTRUCTURE DEVELOPMENT CD: ENGINEERING SERVICES CD: CONSTRUCTION MANAGMENT CD: OPERATIONAL AND MANAGEMENT CD: STATEGIC ASSET MANAGMENT CD: REGIONAL BULK INFRASTRUCTURE GRANT NWRI VALUE CHAIN CONSTRUCTION MANAGEMENT DOES WORK FOR ALL THE ABOVE CHIEF DIRECTORATE WITHIN THE NWRI VALUE CHAIN

MANAGEMENT OF PROJECTS WITHIN WATER AND SANITATION BY CONSTRUCTION CD; ENGINEERING SERVICES Civil Specification Scope CD:ID CD:O&M CD:SAM CD:RBIG MUNICIPALITIES CONSTRUCTION MANAGMENT Construction Unit Bill of Quantities Risk Cost MOU Variation Orders Time Programme PRE-TENDER / TENDER STAGE PHASE 1: Compile Tender Documents and Engineer’s Estimate PHASE 2: Submit Tender PHASE 3: Evaluate Tender (Market Competitiveness) PHASE 4: Sign Memorandum of Understanding (MOU) PHASE 5: Execution PHASE 6: Project Delivery POST-TENDER / EXECUTION STAGE PROJECT COST = TENDER ACCURACY + RISK MANAGEMENT + SCOPE MANAGEMENT + TIME MANAGEMENT

CD:CM PROJECT OVERVIEW Includes, but is not limited to: Construction of new Government Water Schemes such as the De Hoop Dam -, Clanwilliam Dam - and Nwamitwa Dam Projects; Rehabilitation of existing Dams under the Dam Safety Rehabilitation Programme; Rehabilitation of conveyance systems such as the Vlakfontein Canal, S1 Balancing Dam, Lindleyspoort and Nzelele Canals; Work for Operational Clusters, including the Eastern, Central, Northern and Southern Clusters; Work for other Directorates i.e. Resource Protection & Waste and Hydrological Services & Regional Bulk Infrastructure Grant); Work for other Institutions (TCTA and Water Users Associations); Work for District Municipalities (Ehtlazeni, Umkhanyakhude & Vembe); and Work for Other Government Departments (Agriculture).

CD:CM SPECIAL CONDITIONS Personnel are employed in terms of Section 76 of The National Water Act (Act 36 of 1998). Unique Conditions of Service - Approved by the DG in consultation with the DPSA, Unions and Construction Staff. Various contractual appointments: Core staff appointed on Standard Contract; Local Staff appointed on Project Based Contract ; Some Engineers and Technicians appointed on Specialist Contract; and Public Service Act employees.

LOCALITY OF CD:CM CONSTRUCTION UNITS Tshwane (DWS Head Office) Head Office: Construction Management, Support and Equipment Management, Drilling Workshop Paarl Construction South Headquarters: Implementation of projects in Western Cape, Northern Cape and Eastern Cape Provinces. Potchefstroom Construction West Headquarters: Implementation of projects in Gauteng, Free State and Limpopo Provinces. Tzaneen Construction North Headquarters: Implementation of projects in North West and Limpopo Provinces. Standerton Construction East Headquarters: Implementation of projects in Mpumalanga and Kwazulu Natal Provinces. Jan Kempdorp Construction Central Workshop Headquarters: Manufacturing, refurbishment and re-building of plant and equipment.

CD:CM PERSONNEL COMPLEMENT Construction Management (DWS Head Office) – 1 No. Construction Support (DWS Head Office) - 14 No. Construction Equipment (DWS Head Office) - 6 No Construction North (Tzaneen) - 842 No. Construction East (Standerton) – 1370 No. Construction West (Potchefstroom) - 1093 No. Construction South (Paarl) - 308 No. Construction Central (Jan Kempdorp) – 95 No. Drilling Workshop (Tshwane) – 18 No Total Workforce in Construction – 3747 No.

CD:CM STAFF COMPOSITION AS MAY 2017 Total Workforce in Construction - 3 747 No. Engineers - 9 No. [1 Black, 3 Female] Technicians - 136 No. [ 63 Black, 16 Female ] Workforce Black - 85 % Workforce Female - 25 % Workforce Youth - 41 % Detailed composition breakdown provided later in presentation

CD:CM EMPLOYMENT PATTERN OVER THE YEARS

CD:CM OVERALL DEMOGRAPHIC OVER THE YEARS LEVEL BLACK COLOURED INDIAN WHITE TOTAL 9 4 37 45 10 6 1 22 30 11 34 36 12 104 122 2008 LEVEL BLACK COLOURED INDIAN WHITE TOTAL 9 52 2 83 137 10 23 4 61 88 11 12 3 47 64 31 33 89 222 322 2012 LEVEL BLACK COLOURED INDIAN WHITE TOTAL 9 100 13 1 55 169 10 42 69 122 11 25 6 36 68 12 2 27 44 180 31 5 187 403 2016

CD:CM PLANT AND EQUIPMENT Total Number of Yellow Fleet - 1 247 No. Net Book Value – R 442 599 161 Acquisition Cost – R 967 829 388 Total Number of White Fleet - 735 No. Total Number of Stationary Machines - 810 No. Net Book Value – R 81 403 456 Acquisition Cost – R 235 806 924 Total Number of Equipment – 2792 No. Total Net Book Value – R 570 931 078 Total Acquisition Cost –R 1 320 867 602 * Net book value means the carrying amount after depreciation of the assets * Acquisition cost means the cost of the purchase price of the assets when it was bought