1 2008/09 Annual Performance Dr C Ruiters Deputy-Director General: National Water Resources Infrastructure Department: Water Affairs (DWA) 14 October

2 Presentation Outline Key Highlights 2008/09 Performance against targets Future Performance Additional Project Information Challenges facing the sector 2

3 Key Highlights Inyaka Water Treatment Works – Phase 1 Completed in 2008 and Phase 2 was commissioned in September Vaal River Eastern Sub-system Augmentation Project (VRESAP) : Industrial for Sasol and Eskom. It cost R2,7 Billion and will supply 160 million cubic meters per annum. Currently using a temporary abstraction works. Final testing of 3 pump sets running simultaneously still outstanding. Commissioning of all projects components to supply water, using the temporary abstraction works, successfully completed except the final testing of three pumps running together Berg River Water Project – commissioned in September 2008 at a cost of R1,55 Billion, and opened by President in March 2009; it supply 80 million cubic meters per annum to CCT Rehabilitation and Refurbishment of Dams – 29 Dams are completed, 20 dams are under construction and 9 dams are in the design stage. Total spent on Dam Safety and Rehabilitation Programme (DSRP) till 31 March 2009 is R468 million and an estimate R1,9 billion to be on the programme Adoption of a Social and Economic Development Charter for promoting BBBEE objectives 3

4 Strategic Objective OutputPerformance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Agency Establishment and Legislation in place Bill tabled and debated in Parliament; Act Promulgated Bill is in Parliament, but not tabled because of call for wider consultation Implementation of the Infrastructure Programme Nandoni Water Treatment Works – 96% Target for design was 100%; 99% complete; construction target was 100%; actual 95%. Vaal River Eastern Sub-system Augmentation Project (VRESAP) Commissioning of all projects components to supply water, using the temporary abstraction works, successfully completed except the final testing of three pumps running together. 2008/09 Performance against targets (1) 4

5 Strategic Objective OutputPerformance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Implementation of the Infrastructure Programme De Hoop-construction of dam access progressed to 32% completion Overall 12 days behind dam accelerated programme. Target for design 92% achieved 90% Outlet Works: 26% complete. Overall 36% complete Inyaka Water Treatment Works – 54% complete Phase 2 commissioned in September 2008.Phases 3 and 4: Design behind (Target 50% and actual 48%) Construction behind because of problems with designs (Target 18 % and actual 8 %). Phase 3 and 4: Construction experienced delays due to strike. Overall 54% completed 2008/09 Performance against targets (2) 5

6 Strategic Objective Output Performance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Implementation of the Infrastructure Programme Hluhluwe Regional Water Scheme- 65 % completed Phase 3: Water treatment plant reservoirs and pipelines (Target 98%, Actual 95%). Serious delays in material delivery due to non-payment of suppliers and non- conformance of pipe items from suppliers. Delays due to environmental go-ahead on pipelines. Hluhluwe Dam was at 36.5% and not recovering as expected, leading to water restrictions. Overall 62% Complete Nandoni Bulk Distribution – 54% complete Distribution Network: Pipelines, reservoirs and pump station (Design: Target 71% and Achieved 67%Construction: Target 82% and Achieved 64%). Lack of Professional Technical Human Resources; supplier payment problems because of implementation of SAP. Pipe line testing problematic because of pipe material supplied by external supplier and work on GRP pipes stopped 2008/09 Performance against targets (3) 6

7 Strategic Objective Output Performance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Operation and Maintenance of existing infrastructure Bulk Water Supply Agreements in place Final draft of agreements in place. Awaiting approval and signature. Draft O&M Agreements finalised. 2008/09 Performance against targets (4) 7

8 Strategic Objective Output Performance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Rehabilitation and Refurbishment of Dams Improved dam safety – 10 dams Improved dam safety – 12 dams Maintenance of Infrastructure according to preventative and routine maintenance plans. 100% 75%. Scheduled maintenance up to date. Shortage of suitable skilled supervisors staff. Develop the mechanical and electrical infrastructure refurbishment programme 100% 90% Planned refurbishment done. Lack of human resources and poor performance of contractors. 2008/09 Performance against targets (5) 8

9 Strategic Objective Output Performance against target for 2008/9 TargetActual Economic growth, social development and poverty eradication Implement the Dam Safety rehabilitation Programme (DSRP) 100%Rehabilitation programme on track. Operate dams in accordance with emergency preparedness plans 100% Emergency plan implemented successfully in most dams. 2008/09 Performance against targets (6) 9

10 ADDITIONAL PROJECT INFORMATION (1) Strategic Objective Output Performance against target for 2008/9 Implementation of the Luvuvhu River GWW:Luvuvhu River GWW:Nandoni Bulk Distribution Works 82% 49% Overall progress Distribution Network: Pipelines, reservoirs and pump station (Design: Target 71% and Achieved 67%Construction: Target 82% and Achieved 64%). Implementation of the Sabie River GWW: Inyaka Water Treatment works Progress with implementation, expressed as 54% completion. 54% Complete Hluhluwe Regional Water Scheme Progress with implementation, expressed as 65% completion. 62% Complete 10

11 Strategic ObjectiveOutput Performance against target for 2008/9 Komati Water Augmentation System Preparatory work for implementation advanced and design in progress Preparatory work for implementation complete. 1% complete. Mooi-Mgeni Transfer Scheme Spring-Grove Dam; preparatory work completed and design in progress Preparatory work for implementation complete. 2% complete. ADDITIONAL PROJECT INFORMATION (2) 11

12 Strategic ObjectiveOutput Performance against target for 2008/9 Mdloti River Development Raising of Hazelmere Dam; preparatory work for implementation completed and design in progress No work done. 0% complete. Betterment of Olifants- Doorn River Water Resources Project Raising of Clanwilliam Dam: preparatory work for implementation completed and design in progress No work done. 0% complete. Nwamitwa Dam Nwamitwa Dam: preparatory work for implementation completed and preliminary design in progress Planning studies underway ADDITIONAL PROJECT INFORMATION (3) 12

13 Linkage of current targets with government overall aims The national water resources infrastructure targets fulfill objectives of government to priorities implementation of national infrastructure for economic growth and development; as well as ensuring that previously marginalised areas are the beneficiaries of basic services in order for those communities to prosper. FUTURE PERFORMANCE (1) 13

14 OutputPerformance Indicator Baseline Info 09/10 Target and due date Implementation of new bulk water infrastructure to meet social water needs, economic growth and development Percentage completion as per project specification 19%De Hoop Dam (41%) Complete 89%Nandoni Water Treatment Works 99% complete 64%Nandoni Distribution 96% complete 50%Injaka Water Treatment Works 57% Complete Percentage completion as per project specification 53%Hluhluwe Regional Water Scheme (73%) Complete 0%Mdloti River Development 42% complete 1%Groot Letaba RWRP 7% complete Percentage completion as per project specification 97% WSC*Vaal River East Sub-System Augmentation Project (VRESAP) 99,8% complete FUTURE PERFORMANCE (2) 14

15 Performance Indicator Baseline Info 09/10Target and due date Percentage completion as per project specification 0% WSC*Mooi-Mgeni Transfer Scheme 2 (Spring-Grove Dam) 5% Percentage completion as per project specification 0% WSC*Komati Water Augmentation Scheme (KWAS) 5% Percentage completion as per project specification 0% WSC*Mokolo Water Augmentation Project (5 % complete) Percentage completion as per project plan and specification 0% WSCOlifants River Water Resource Development Project 2B- I : Bulk Distribution Scheme (5% complete) FUTURE PERFORMANCE (3) 15

16 OutputPerformance Indicator Baseline Info 09/10Target and due date Operations of Water Infrastructure to ensure supply of Bulk Raw Water Operate schemes as per system operating rules 100% compliance to system operating rules and existing Bulk Water supply agreements and license 100% Level of assurance of supply for different user group Maintenance of Infrastructure as per Maintenance plan and procedures required to ensure infrastructure availability Infrastructure availability70% availability80% availability Development of Resource Management Plans (RMPs) to ensure controlled and sustainable development on state land No uncontrolled development on/around DWAF dams 44 RMPs completed 2 RMPs Rehabilitation and refurbishment of water resources infrastructure ( DSRP) Fully functional and sustainable schemes (dams, canals, pump stations, etc) 50% condition of Infrastructure meet original design capacity/ performance requirements. Condition of Infrastructure rated “ Poor (Level-D) ” by SAICE report 70% FUTURE PERFORMANCE (4) 16

17 OutputPerformance Indicator Baseline Info 09/10Target and due date Preparation for implementation of LHWP Phase 2 Protocol on LHWP Phase 2 approved by governments of RSA and Lesotho Draft Heads of Agreement prepared Protocol on LHWP Phase 2 drafted and submitted for approval by both parties by March 2010 Conversion of single to multiple- purpose dams Strategy and plan (with budgets) for the conversion of single to multi ­ purpose dams Number of single purpose use dams converted to multi ­ purpose use dams 3 dams converted to multi-purpose use dams FUTURE PERFORMANCE (5) 17

18 Challenges facing the sector Ageing Infrastructure Ageing workforce and problems with recruitment of Skilled professionals (engineering, scientific and technical). Retention and recruitment of technical skills – leading to reliance on consultants Water Security and Availability BBBEE issues –monopoly of adequate construction industry to support SMMEs, Construction costs increases, e.g. materials, SCM, professional staff costs. Financial resources for water resources infrastructure – “off budget” projects, cost of materials thus regulation of water supply costs. 18

19 Thank you 19