RAND WATER’S PRESENCE IN Mpumalanga PRESENTATION TITLE Presented by: Name Surname Directorate Date

Regional Bulk Infrastructure Reticulation Related Projects Challenges and Way Forward 2

Regional Bulk Infrastructure – Bushbuckridge The Asset planning division together with the assistance of operations have assessed the immediate infrastructure needs for the area of operation. Demand is currently only partially being met from a number of abstraction and treatment plants as most plants suffer from a lack of maintenance. In order to bring current plants up to design capacity and reliability, renewal projects are recommended at several of the plants to provide standby capacity, improving operational control for both water quantity and quality purposes. This is the immediate focus of the capital expenditure program. The following projects have been identified: Acornhoek Water treatment plant – Refurbishment of the water treatment system. Thulamhashe water treatment plant – Automation and addition of redundancy on the Hoxane water treatment plant – Automation and addition of redundancy on the coagulant dosing system. This will include various other aspects realting to the improvement of water treatment Meeting further demand, current and future, will require augmentation of both treatment and bulk pipeline capacity. This is considered as the second phase of the program although some augmentation of infrastructure is expected to be invested in the initial stages. This is expected to increase as condition assessments of the infrastructure are completed in the upcoming year. The following projects have been identified: Additional Hoxane raw water pump station and connecting pipeline Additional Hoxane purification and pumping station. Hoxane to Ndonga pipeline (800/700diameter) 20Ml reservoir at Ndonga Pipeline Ndonga to Cunningmore (800/700diameter) An interim cash flow projection over the five year period is estimated at R600m.

Bushbuckridge Local Municipality supply area Plant (WTW) Design Cap (Ml/day) Operational capacity (Ml/day) Operatio nal capacity due to drought Production reduction due to drought (%) Municipal Area Raw water source Raw water source status Inyaka 100 0% Bushbuckridge Inyaka Dam Fair Hoxane 27 25 Sabie river (release from Inyaka dam) Thulam ahashe 9.0 6 3 50% Mutlumuvi river Poor Acornh oek 6.0 4 Agricultural dam and klein sand river Edinbu rgh 3.0 2,7 1 63% Agricultural dam Sand River 1.0 0.8 0.4 40% Sand river Marite 2.4 Nwaritjie river (release from Inyaka Dam)

Mbombela Local Municipality supply area Rand Water undertakes operations and maintenance for the Kanyamazane plant only Therefore, Rand Water has limited ability to increase capacity Contract with Mbombela has expired and on a month-to-month basis. The current contract does not even cover the cost of running the plant. There is current and increasing debt. In the last session in January 2017, Mbombela agreed to take to council the settlement agreement on the accumulated debt. However, given the past, there is little chance of success. Therefore Rand Water’s success in this area is limited. Plant (WTW) Design Cap (Ml/day) Operational capacity (Ml/day) Current Operational capacity due to drought Production reduction due to drought (%) Municipal Area Raw water source Raw water source status Kanyamazan e New 47 53 0% Mbombela Crocodile river (release from Kwena dam) Fair Kanyamazan e Old 6 2.4 Nyongane 14 22 Sabie river (release from Inyaka dam) Mshadza Package plant 2 0.8 0.4 50% Small stream Poor Dwaleni Package Plant 0.6 0.3 poor Mganduzwe ni Package Plant 100% Agricultural dam

Additional Challenges Concession Agreement With Sembcorp Silulumanzi This is a 30 year concession with Mbombela However, this is limited to the more affluent areas of Mbombela Rand Water operates the rural and poorer areas

Summary on Projects in Mpumalanga Reticulation Related Projects in Mpumalanga Summary on Projects in Mpumalanga Rand Water is the implementing agent for the list of projects listed below . These projects are funded through MIG, MWIG NWRI , RBIG and MPG. Rand Water was appointed to undertake projects on behalf on different local municipalities in Mpumalanga Rand Water undertook these projects and the list of completion dates is shown on the following slides The list of projects was presented in the 2014 – 15 financial year Project Name / Description Current % Completion to date (work done thusfar compared to expected work) 1. Thembisile Hani Completed – April 2016  2. Thembisile Hani Completed – March 2016 3. Thembisile Hani Completed – April 2016 4. Thembisile Hani 5. Thembisile Hani Completed – Sep 2015 6. Thembisile Hani 7. Thembisile Hani 8. Thembisile Hani 9. Thembisile Hani 1. Emakhazeni Completed – August 2016 2. Emakhazeni Completed - 30 June 2016 3. Emakhazeni 4. Emakhazeni 5. Emakhazeni 6. Emakhazeni 7. Emakhazeni

Project Name / Description Current % Completion to date (work done thusfar compared to expected work) 1. Victor Khanye Completed – August 2016 2. Victor Khanye Completed – April 2016 3. Victor Khanye Completed – June 2016 1. Bushbuckridge 97.5% 2. Bushbuckridge 90.0% 3. Bushbuckridge 92.0% 4. Bushbuckridge Completed – December 2015 5. Bushbuckridge Completed - November 2015 6. Bushbuckridge 7. Bushbuckridge Completed – Sep 2015 1. Dr Pixley Ka Seme Completed - June 2016 2. Dr Pixley Ka Seme 3. Dr Pixley Ka Seme 4. Dr Pixley Ka Seme 5. Dr Pixley Ka Seme 1. Dipaleseng Completed – March 2016 2. Dipaleseng 3. Dipaleseng 1. Govan Mbeki 1. Steve Tshwete Completion (71%) – October 2016

9 Mpumalanga – Strategic Challenges No. Description Scheme DWS Response 1 Identification of assets for takeover Bushbuckridge Scheme There was transfer of regional bulk assets to the Botshabelo District Municipality in 2009. This was disestablished and the assets transferred to Bushbuckridge. The IRR Masterplan identifies the Bushbuckridge scheme for transfer to the regional water utility (Rand Water). The critical matter remains outstanding. The new councilors of BBR are of the opinion that the municipality should continue with ownership. Therefore Rand Water’s operations will not be viable. 2 Western Highveld Scheme The IRR Masterplan identifies the Western Highveld scheme for transfer to the regional water utility (Rand Water). However this matter remains outstanding. 3 Funding Plan Bushbuckridge and Western Highveld Schemes The recommendation of work done by consultants on behalf of DWS is silent on the required funding. 4 Resistance by local municipalities Bushbuckridge Local Municipality There is increasing uncertainty in the relationship with Bushbuckridge Local Municipality. Rand Water received communication in January 2017, that council resolved to take over all projects that Rand Water has been undertaking 9

THANK YOU