CD:CM PROJECT OVERVIEW Projects: Refurbishment of Canal Systems Boskop Right Bank Canal - R 40 500 000

CD:CM PROJECT OVERVIEW Projects: Refurbishment of Canal Systems Nzhelele Canal Rehabilitation - R 130 000 000

CD:CM PROJECT OVERVIEW Projects: Refurbishment of Vlakfontein Canal (Phase 2) - R 647 708 400

CD:CM PROJECT OVERVIEW Vaalharts Government Water Scheme - R 45 000 000

CD:CM PROJECT OVERVIEW Projects: Water Services Projects Vaalharts Government Water Scheme - R 45 000 000

CD:CM PROJECT OVERVIEW Third Parties (District Municipalities) - Brits Water Treatment Works - R 430 000 000

CD:CM PROJECT OVERVIEW Third Parties (District Municipalities) - Mmabatho Water Treatment Works - R 150 000 000

Vhembe District Municipality project CD:CM PROJECT OVERVIEW Third Parties (District Municipalities) Mowkop Valdezia Pipeline - R 700 000 000 Vhembe District Municipality project

CD:CM ORGANISATIONAL STRENGTHS Institutional knowledge From a construction perspective - key personnel has extensive experience in construction; and thus Shortened learning curves in the implementation of projects. Peak production rates achievable in short time spans. Flexible The ability to adapt to demands - employment contracts allows rapid growth or downsizing of personnel strengths; and thus Ability to survive in unfavourable economic climates because of organisational adaptability. different construction projects can be completed successfully. Competence outside core capabilities possible. Ability to respond to Urgent and Emergency situations that create a threat to the water infrastructure and service delivery upon the directive of the Minister. Continued…

CD:CM ORGANISATIONAL STRENGTHS Versatility Ability to be successful in a wide variety of construction projects / activities; and thus Different construction projects can be completed successfully even outside core areas of capabilities. Will contribute to long-term sustainability. Ability to adapt to changes Outside the rigorous contractual environment without major cost implications; and thus Not claim sensitive in efforts to make profits as in the case of a commercial contract environment. Less sensitive to less favourable economic climates in completing projects. Continued…

CD:CM ORGANISATIONAL STRENGTHS Engineering capability In-house civil, electrical and mechanical design capabilities to complement construction efforts; and thus Shortened life cycles of projects because project construction and design can be done in parallel without major cost implications. Performance (Financial/Non-financial) To be on time, within budget and according to specifications in the delivery of projects; and thus This capability can ensure that Construction becomes the preferred contractor in implementing departmental construction projects.

THE DECISION TO CLOSE DOWN??? HOW THE IDEA OF CLOSING DOWN COULD AFFECT THE BUSINESS

3747 JOB LOSSES INSTANTLY!!!

Cost of Closing down Direct Employee Cost Indirect Employee Cost Indirect Consequential Cost (some of these costs can be calculated others not) Direct and Indirect Employee Cost are informed by the standing Conditions of Service and influenced by the non-availability of projects to be allocated/awarded to the CD: CM (these are all estimates). Consequential Costs are those costs which happens as a knock-on effect driven by a decision to close the CD: CM (some can be calculated some not).

Cost of Closing down The accuracy of the calculations are determined by the following factors: Actual date when the CD: CM must be closed; Enforcement of the Supernumerary Policy as defined by the COS; Transfer and transport of all yellow, white and stationary fleet back to Construction Central Jankempdorp; Define financial commitments of standing agreements/contracts Define the assumptions made in support of the calculations; and Identify risks with further associated financial impacts.

Supernumerary Policy PART XI (Annexure 19)

Supernumerary Policy PART XI (Annexure 19) 10-step process; After steps 1 - 4 have been dealt with, the remaining period for the procedure will be 10 weeks. Notice period for employees residing in official family housing or single quarter facilities is 6 weeks; The minimum shortest period required to follow the prescribed negotiation/consultation process as defined by the COS will be 3 months; The purpose of the supernumerary procedure is: To ensure the supernumerary policy is applied timeously in a responsible , fair and transparent manner; The supernumerary policy was written primarily to cater for personnel involved in projects where construction activities reached conclusion; and It remains debatable if a different process can be followed other than the supernumerary process in case the CD: CM must be closed down.

Benefits: Supernumerary Policy (Package)

Legislative Mandate Section 197 of the Constitution of the Republic of South Africa Public Service Act, 1994 National Water Act , Act No 36 of 1998 Conditions of Service (NWA Appointees) Supernumerary Policy as guided by the Conditions of Service

Constitution Public Service Act

National Water Act

THANK YOU END