1. Infrastructure Development
Presentation to SCOA
28 August 2012
Cape Town
aDDG: NWRI

2. Projects within Capital Projects1
Olifants River Water Resources Development Project – Phase 2A (De Hoop Dam) 2
Olifants River Water Resources Development Project – Phase 2 Bulk Distribution System 3
Mdloti River Development. Hazelmere Dam Raising 4
Olifants – Doorn River Water Resources Project – Raising of Clanwilliam Dam 5
Mokolo and Crocodile River (West) Water Augmentation Project Phase 1 (MCWAP-1) 6
Komati Water System Augmentation Project (Off-budget) 7
Mooi Mgeni Transfer Scheme – Phase 2 (Off-budget) 8
Vaal River Eastern Sub-System Augmentation Project (VRESAP) (Off budget) 9
Nandoni Pipeline
30 April 2012

3. Impoundment delayed to August 2012
Olifants River Water Resources Development Project – Phase 2A (De Hoop Dam)
Project description:
Construction of the 80 m high De Hoop Dam and related infrastructure - to supply water to domestic and industrial users in the middle Olifants river catchment area.
Status: Approved as Government Water Work.
Province: Limpopo
Jobs impact:
Direct project construction jobs (peak):
1150 : De Hoop Dam
528 : Road re-alignment
250 : Housing infrastructure
Jobs due to new industrialisation and growth: ±5000
Projected cost to completion:
Phase 2A (Dam): R3.1bn
Project Scope:
Construction of the De Hoop Dam.
Re-alignment of 20 km portion of P169-1.
Housing infrastructure
Project schedule:
Construction started: June 2007
Construction Completion: March 2013
Progress/Challenges
Impoundment delayed to August 2012
Green Scorpion’s allegations of non-compliance
Sediment from upstream open cast mining polluting and decreasing dam storage capacity
Community distress if primary water is not supplied
Some workers’ contract completion processes to commence in February 2012
The section 19 pollution remediation directive has been issued.
30 April 2012

4. Olifants River Water Resources Development Project – Phase 2 Bulk Distribution System
Project description:
The construction of the bulk distribution system which will transfer water from the De Hoop and Flag Boshielo Dams to domestic and industrial users in the middle Olifants River catchment area.
Status: Approved as Government Waterwork.
Province: Limpopo
Jobs impact:
Direct project construction jobs: jobs for the BDS
Jobs due to new irrigation and industrialisation and growth: 5 000
Projected cost to completion:
Phase 2B-H (Distribution): R12,975bn
Project Scope:
Construction of the Bulk Distribution system that will convey raw water from the De Hoop and Flag Boshielo Dams to domestic and industrial users.
Project schedule:
Construction of 2C commenced, completion by March 2014.
Phased completion following implementation of water reconciliation study and funding availability
Progress / Challenges
The mining houses did not want to sign the off take agreements (citing that the water was too expensive); TCTA could not obtain funding from the capital market because of this,
TCTA already had committed funds on the projects because of the detail design already 90% complete
National Treasury had to fund the revised directive to implement Phase 2C (pipeline from the De Hoop dam to Steelpoort)
Phase 2C important as the De Hoop dam is almost completed.
Facilitation process amongst stakeholders to agree on the BDS configuration.
Still a possibility of off budget funding when facilitation process is completed.
30 April 2012

5. Mdloti River Development Hazelmere Dam Raising
Project description:
This project is to augment the water supply to the KZN North Coast by increasing the yield of the dam for medium term supply.
Status: Approved as Government Water Work.
Province: KwaZulu Natal, ILembe District.
Jobs impact:
Direct project jobs estimated at 300.
Projected cost to completion:
The revised estimate (April 2012) is R 360 million (incl. VAT, contingencies, escalation)
Project Scope:
The installation of crest gates.
Civil work for dam safety and stability.
Acquisition of additional land in dam basin.
Project schedule:
Design of civil works started - October 2011
Civil contract award - July 2013
Gate contract award - November 2012
Project completion - September 2014
Progress & Challenges:
Valuation of properties and tender for crest gates is on hold pending outcome of viability of project at increased cost.
Due diligence analysis of preferred design option for raising, incl. geological investigation, has been completed.
Report on preferred design option needs to be submitted to CD: IWR Planning.
Connected issues:
Construction of infrastructure by Umgeni Water.
Decisions required:
Economic viability of project needs to be confirmed by Chief Director: IWR Planning.
30 April 2012 5

6. Olifants-Doorn River Water Resources Project – Raising of Clanwilliam Dam
Project description:
Raising of existing full supply level by 13 metres to provide additional water to supply full existing allocation, establish resource poor farmers and address dam safety aspects.
Status: Approved as Government Water Work.
Province: Western Cape, Cederberg Municipality.
Jobs impact:
Direct project construction jobs: 650
Jobs due to new irrigation and growth: 2 500
Projected cost to completion: R1 830 million
Project Scope:
Raising of the dam wall and spillway.
Construction of a multi-level outlet works.
Re-alignment of Route N7 and Provincial roads.
Compensation for affected properties.
Project schedule:
Design of N7 re-alignment started - July 2011
Design of dam wall started - March 2011
Construction of N7 re-alignment - Nov 2012
Construction of dam wall raising - April 2013
Completion of project - May 2017
Progress & Challenges:
Design of the N7 re-alignment is in progress.
Investigation of Provincial roads has started.
Detailed design of dam wall raising and outlet works is in progress.
Determination of dam boundary line is in progress.
Connected issues:
Upgrading of existing conveyance system and allocation of water to users.
Decisions required:
Record of Implementation Decisions.
Confirmation of funding from National Treasury for construction of project.
30 April 2012

7. Approved as Government Waterwork. Province: Limpopo Jobs impact:
Mokolo and Crocodile River (West) Water Augmentation Project Phase 1 (MCWAP-1)
Project description:
Construction of a pumping station and 46 km of pipeline, with a diameter of 1m to deliver bulk raw water from the Mokolo Dam to Medupi and Matimba Power stations, Exxaro and for the expected growth in the Lephalale Municipality. The existing pipeline will be refurbished following commissioning of the new works.
Status:
Approved as Government Waterwork.
Province:
Limpopo
Jobs impact:
Direct project construction jobs:
Projected cost to completion:
R2,138 billion
Project Scope:
Construction of a pumping station.
Construction of a 46 km, 1m diameter pipeline.
Refurbishment of existing pipeline
TCTA to obtain off budget funding (75% commercial)
Project schedule:
First delivery of water at the end of 2013
Forecast project close out: August 2015
Progress& Challenges:
Project advanced to detail design and construction phase.
Water supply agreements concluded between Eskom, Exxaro and DWA.
DWA-TCTA Implementation Agreement concluded December
Fitch rating AA+ achieved, funding secured
Contract awarded in June 2011.
Site handed over to contractor on 14 Sept 2011 and physical activities started during November 2011
Environmental baseline studies ongoing
No significant challenges at this stage
Agreement on subsequent phases to be obtained
30 April 2012

8. Komati Water System Augmentation Project - KWSAP (Off-budget)
Project description:
Construction of a pumping station and two pipelines to provide water to Duvha and Matla Power Stations.
Status: Approved as Government Waterwork.
Province: Mpumalanga
Jobs impact:
Direct project construction jobs: 800
Projected cost to completion:
R1,736 billion
Project Scope:
Construction of a pumping station at Rietfontein Weir.
Construction of a 58,4 km , 1,1m diameter pipeline to Duvha Power station
Construction of a 12,9 km , 600mm diameter pipeline to Matla Power station.
TCTA to obtain off budget funding (100%)
Project schedule:
Construction commenced in January 2011
Forecast project close out in October 2013
Progress & Challenges:
Water supply long term funding for the project had been secured.
Delays in pipe manufacturing solved
17,5 km pipes laid, expect water delivery end January 2013
No significant challenges reported
30 April 2012

9. Mooi Mgeni Transfer Scheme – Phase 2 (Off-budget)
Project description:
Construction of the 42 m high Spring Grove Dam, the associated transfer system and the refurbishment of existing MMTS-1 pumping station and transfer system.
Status: Approved as Government Waterwork.
Province: KwaZulu Natal
Jobs impact:
Direct project construction jobs: 850
Jobs due to growth: 800
Projected cost to completion: R1,67billion
Project Scope:
Refurbishment of existing MMTS-1 pipeline system.
MMTS-2A:Construction of the 42 m high Spring Grove Dam.
MMTS-2B: Construction of a transfer system.
Acquisition of off budget funding by the TCTA (100%).
Project schedule:
Construction Commenced during Feb 2011
Forecast Project Closure Jan 2015
Progress/Issues:
The sod turning event was held on the 16th May 2011.
Municipal off-take Agreements between Umgeni Water (UW) and eThekwini, uMgungundlovu and Msunduzi Municipalities were signed
Progress & Challenges:
Stage 2 River Diversion works are completed.
Excavation completed
EMPR restriction of 30 heavy duty trucks per day hindering supply of construction materials was lifted
Impoundment delayed to January 2013
Environmental authorisation of pipeline route contested and upheld resulting in reassessment of environmental impact assessment, started during February 2012
Pre-qualification of contractors commenced
30 April 2012

10. Vaal River Eastern Sub-System Augmentation Project (VRESAP) (Off-budget)
Project description:
Construction of a raw water conveyance system of an abstraction system, storage reservoir, a high lift pump station, a 121 km pipeline, surge tank and diversion structure.
Status:
Approved as a Government Waterwork.
Province: Mpumalanga
Jobs impact:
Direct project construction jobs: 1 600
Projected cost to completion:
R2,698 billion
Project Scope:
Construction of an abstraction works.
Construction of a storage reservoir.
Construction of a high lift pump station.
Construction of a surge tank and a diversion structure.
TCTA to obtain off budget funding (100% commercial)
Project schedule:
Forecast project close out: July 2012
Expenditure:
Project 99% complete (permanent abstraction works not complete)
Earning revenue from June 2009
Progress & Challenges:
Works commissioned, snags being addressed
Abstraction works to be completed by May 2012.
Challenges experience with the coffer dam demolition.
Potential legal action by contractor (C-MC) due to premature contract termination for poor performance.
DWA O&M staff challenges
30 April 2012

11. Luvuvhu River Government Water Scheme: Nandoni Steel Pipelines
Project schedule:
The Lukalo-Lambani, NN20B and NR6 bulk lines to the north of Nandoni Dam and Xikundu Weir respectively will be completed by end of October 2012.
The construction of the Vuwani bulk pipeline has been split into three contracts. The contractors established the site in June 2012 and the work will be completed by May 2013.
The Valdezia bulk pipeline, is being constructed by DWA Construction: North and will be completed by April 2013.
Progress/Challenges
Updated water demand figures are significantly higher than the previously estimated, requiring larger pipe diameters .
Approval for roll-over of R200 incl vat has not yet been received from National Treasury.
Risks or challenges
Possible delay with supply of pipe materials
Cash flow of emerging contractors
Labour/Industrial action/strikes or go slows
Compliance with stringent environmental conditions
Local Water distribution Infrastructure to be implemented by Local Authorities
Decisions required:
None
Project description:
Construction of the five new pipelines to complete Nandoni bulk distribution system and to replace problematic GRP pipelines, including the Valdezia Pipeline
Reasons for under-spending in the 2011/2012 year :
The budget of R203 million was allocated before the design had commenced.
The appointment of the professional service provider who is responsible for the design and construction supervision was finalized during February 2012, which impacted on the completion of the designs and caused a significant delay.
The pipe diameters had to be changed because of the higher water demands due to the later design options (previously 2010 and now 2025).
The project was accelerated by awarding the construction of the pipeline to three different contractors.
Province:
Limpopo
Jobs impact:
About 300 jobs
Projected cost to completion:
R750,1 million
Project Scope:
This project includes new steel pipelines for
Xikundu Distribution Scheme and Nandoni
Distribution Scheme

12. Dam Safety Rehabilitation Programme (DSRP)
The Klein Maricopoort Dam near Zeerust and Rust de Winter Dam near Hammanskraal was successfully completed in the fourth quarter to bring the total number of dams completed to four for the financial year.
Various rehabilitation design projects are carried out using internal staff and progressing well.
Numerous projects are promoting labour intensive methods and maximising job creation.
Slow procurement processes are hampering progress where DWA Construction is involved.
Shortage of staff doing rehabilitation design internally is delaying progress.
Non appointment of consulting engineering PSPs are delaying implementation of various projects.
Non appointment of mechanical term contracts are delaying implementation of various work.
Unavailability of as-built drawings increases the possibility of variations on contracts

13. TCTA Tender and implementation process
Directive by Minister
Project Charter including SED prescripts in terms of legistation
Preparation and approval of tender documentation by TCTA Board
Public invitation to select preferred bidders (pre-qualification of contractors)
Submission of tender documentation to preferred bidders
Adjudication of bids
Awarding of contract
Credit rating obtained from financial markets
Secure loan funding
Supervision of construction contracts
Submission of contractor invoices
Monthly certification of work performed to specification
22/04/2017

14. TCTA Tender and Implementation Process cont.
Project ready for operation
Project ready for commission
Handover to DWA for operation and maintenance
Commencement of defects liability period
Commencement of debt repayment period
Customer invoiced for water consumption as per capitol unit charge
Users, TCTA and DWA meet annually to set tariffs in accordance with agreement
22/04/2017

15. END