BRIEFING THE PORTFOLIO COMMITTEE ON WATER AND SANITATION ON UNFINISHED INFRASTRUCTURE PROJECTS DDG: IBOM

TABLE OF CONTENTS AUGMENTATION PROJECTS STRATEGIC ASSET MANAGEMENT (DSRP) SANITATION (BUCKET ERADICATION PROGRAMME) RBIG PROJECTS

Augmentation projects

Augmentation Unfinished Projects Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Mdloti River Development Project: Raising of Hazelmere dam KZN: eThekwini Metropolitan Municipality 110 000 Delays: Delayed procurement of permanent load cells Delay of resolution of disputes and claims Expiry of contract on 31 July 2018 and subsequent termination by contractor on 9 October 2018 Proposed Intervention Utilisation of DWS Construction Unit to execute all the works that do not require specialist contractor. Implement amicable solution to resolve disputes, claims and variation orders on the terminated contract. Compilation of definitive scope of work breakdowns and timeframes to complete the works. Alignment of all contracts (Engineer, ECO, OHS and Contractor) with definitive scope of work and time frame. Reappointment of Specialist Contractor by end of Mid March 2019. March 2020 Raising of Tzaneen Dam Limpopo: Greater Tzaneen Municipality 208 930 Delays Delays in the appointment of Contractor due transfer of project to DWS from Lepelle N. Water Water shortages and loss of public confidence Water Users financial compensation Use of DWS construction Unit Use of DWS Engineering Services as the PSP Stakeholders engagement October 2020

Augmentation Unfinished Projects cont... Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Olifants River Water Resources Development Project (ORWRDP-Phase 2D, E & F) Limpopo: Sekhukhune District Municipality 2D 160 203 2E & F Delays: Funding constraints Land matters and illegal mining Relocation and compensation of affected land owners on critical path Borrow pit license negotiations Encroachment to the pipeline servitude Proposed Intervention Reprioritise funding within ORWRDP Prioritise land acquisition and social facilitation. Secure Department of Mineral Resources intervention on illegal mining activities Engage with DMR to resolve the challenge on the rehabilitation funds for the project Finalise Memorandum of Understanding with tribal authorities Negotiate with Dikolong Mine to secure availability of the site 2021 Depending on availability of Funds

STRATEGIC ASSET MANAGEMENT: DSRP

DSRP UNFINISHED PROJECTS Project Name LOCATION 2019/20 FY Budget allocation (R‘1000) Delays and recovery plan Expected completion date Marico Bosveld Dam North West Groot Marico 5 000 The contract between DWS and the external Contractor expired before the Contractor can commence with site establishment due to the non-performance by the Contractor. Internal Contractor was approached to assist in taking over the project and complete it. The Internal Contractor’s priced BoQ was approved. The internal contractor will commerce with site establishment in April 2019 and is expected to complete the project in 6 month from commencement. 30 September 2019 Kalkfontein Dam Free State Koffiefontein 5 400 Community strikes delayed the sourcing of the local labour for the project. The local labour was appointed on the 12 February 2019 and will go for medical test on the 5 march to confirm fitness for working in construction. The Contractor will follow an accelerated project programme to complete the project. 31 May 2019 Rietspruit dam Ventersdorp 15 695 The project was requested to be removed from 2018/19 financial year due to delays by Top Management to approve the request to procure the service of the Environmental Control Officer (ECO). The request to procure the services of the Environmental Control Office is expected to serve at the next Top Management meeting scheduled for 5th March 2019. In the mean time the Internal Contractor was appointed and requested to start with the procurement of required materials. 31 July 2019

SANITATION: BUCKET ERADICATION PROGRAMME

BUCKET ERADICATION PROGRAMME Status Report NORTHERN CAPE PROVINCE DWS resolved to utilise it Internal Construction Unit for the completion of 4 of the 6 Projects of which; 4 projects require Sewer Collectors and Bulk Mains to allow for functional sanitation services. Of which 2 projects will require Pump stations; A further 2 projects will be completed by the Water Services Authority (as a WSIG Schedule 5B grant allocation). (Dawid Kruper LM, Louisvale PS: a PSP is already appointed, contractor is planned to be appointed in Feb 2019. Siyancuma LM, Breipaal PS: PSP / Contractor already appointed. Planned to start with construction in Feb 2019. 9

NORTHERN CAPE PROVINCE MUNICIPALITY PROJECT BUCKETS CONNECTED (Y/N) WORK REQUIRED IMPLEMENTOR Siyacuma LM Griekwastad 475 N Completion of the internal reticulation and Installation of a Pump station DWS Construction Campbell 596 Outfall Sewer and pump station required to match new municipal proposed oxidation ponds. Tsantsabane LM Maranteng 392 Sewer Collector (Reticulation) network expansion required Postdene 219 expansion required and construction of 368 toilet structures

FREE STATE PROVINCE A turnkey contractor was appointed to complete the Bucket Eradication Programme in the Free State Province the Department issued a notice of intention to terminate the relationship after the contract lapsed in March 2018; 1 out of 12 projects remains incomplete Senekal requires the completion of internal reticulation; The Department resolved to utilise Internal Construction for the completion of Bulk infrastructure of which; 7 projects requires bulk services to enable the flushing of new toilets;

FREE STATE PROVINCE MUNICIPALITY PROJECT BUCKETS CONNECTED (Y/N) WORK REQUIRED IMPLEMENTOR Setsoto LM Ficksburg 1469 Y (& N) 1215 buckets eradicated and functional. Remaining 218 not functional due to not being connected to the Bulk Sewer Main. Rising main and 3 x ump-stations DWS Construction Senekal 2435  N Lack of water supply requires Greywater circuit (Grey-water package plant); Sewer Collector system must be connected to a Bulk Sewer Main and Pump-station. Completion of internal reticulation Clocolan 3379 Sewer collection system to connected to Bulk Main and therefore not connected to the WWTW. Bulk Sewer Main and Pump-station Nketoana LM Reitz 739 Bulk sewer main and pump- station required.

FREE STATE PROVINCE MUNICIPALITY PROJECT BUCKETS CONNECTED (Y/N) WORK REQUIRED IMPLEMENTOR Nketoana LM Arlington 1192  N Inadequate water supply; need to erect a water tank and Grey-water package plant to be connected, Pump-Station, Bulk Sewer Main. DWS Construction Petrus Steyn 960 Bulk Sewer main to be constructed as well as a Pump station to connect collector system with WWTW. Tokologo LM Dealesville 1290 N  2 Pump stations

Regional bulk infrastructure PROJECTS

RBIG projects Category and description No of projects Mega Total cost of at least R1 billion over the project life cycle 15 Large Total cost of at least R250 million to R1 billion over the project life cycle 53 Small 38 Total 106

RBIG Unfinished Projects Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Sebokeng Wastewater Treatment Works Gauteng 128 912 Delays: Constant community unrest Constant labour unrest Proposed Intervention National Treasury has involved in South African Defence Force to implement some of the project modules in partnership with Department of Water and Sanitation. This has also assisted in dealing with community unrest 2020 Polokwane Bulk Water Supply Limpopo 530 997 Delays Municipality increased the scope which is funded through their internal funding. The project is implemented within the CBD of Polokwane, this causes some delays as there is congestion within the CBD The Implementing Agent has extended the contract for the contractor who was on site and time frame has been extended to implement the amended scope

RBIG Unfinished Projects Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Mametja Sekororo Limpopo 70 000 Delays The delay was as a result of funding shortfall Proposed Solution The project has been reallocated 70 million to ensure completion 2021 Moutse BWS 75 000 The project progress is very slow due to number of issues that affect the project. the issues are as follows: - The unresolved dispute between SDM(IA) and PSP - The expired contract period of DWS construction- Extension of time claim submitted but not yet approved The procurement delays experienced by DWS construction that impacted on the programme, i.e. procurement of goods and services, including the service provider for M&E. Proposed Intervention The department of water and sanitation has met with IA to try and resolve the issues with the implementing agent The department will fast track the issues of procurement in order to ensure that the project is completed

RBIG Unfinished Projects Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Ratlou BWS Phase 1 (Setlagole) North West 40 000 Delays The bulk water Supply project in Setlagole village and construction of reservoir at 99% completion, but currently no activity is happening on site due to termination of the pipeline contractor as result of non payment/ delays in payment Proposed Solution Adjudication of the new contractor is awaiting .Projected completion date to be revised soon as contractor appointed . 2019 Madibeng BWS Phase 2 All phases are 100 % completed ,however there is a challenge with energy supply to the plant to be in operation. Eskom requires R1.8 million for connection and installation of the big transformer. 2020

RBIG Unfinished Projects Project Name LOCATION 2019/20 FY Budget allocation (R‘000) Delays and recovery plan Expected completion date Meyerton WWTW Gauteng 56 749 Delays The project is around 89% complete. Incessant community protests poses a huge risk to the timely completion of project. Proposed Solution The department is having constant engagement with all relevant stakeholders to address community challenges 2020 Stellenbosch WWTW Western Cape Inability of the municipality to co-fund. The department has exhausted its co-funding allocation however the project has been stalled because the municipality has not honoured its co-funding allocation The municipality has indicated that, it will make funding available in the 2019/20 financial year

THE END