1. Briefing on the comprehensive investment programme for water infrastructure development 27 – 28 March 2013 Portfolio Committee: Water & Environmental Affairs DOCUMENT 6

2. Contents Part 1: Overview of water resources (i.e. augmentation) infrastructure investment programme Part 2: Overview of water services (i.e. regional bulk) infrastructure 2

3. PART 1: WATER RESOURCES (I.E. AUGMENTATION) INFRASTRUCTURE INVESTMENT PROGRAMME 3

4. Typical phases for the development of water infrastructure 4 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Needs identification Identification and selection of possible interventions Preliminary investigation of options Identify best options for detail study Detailed investigation and assessment of best option(s) sizing and configuratio n (technical, environment al & cost) Recommend the project Environment al approval Reserve determinatio n Public involvement Initial funding and institutional arrangement s Some optimisation Decision to implement Formalise institutional arrangement s Secure funding Procuremen t procedures Engineering design and construction documentati on Procurement Resettlement & compensatio n Construction Impounding Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation

5. Medium term investment on water resources infrastructure Project nameTotal project budget Rand thousand 2013/142014/152015/16 ORWRDP (Ph 2A) - De Hoop Dam3,074,000171,000- - ORWRDP BDS - Bulk distribution (Sub Phases 2B and 2C) 3,472,043543,800735,000974,000 GLeWAP Phase ( Raising of Tzaneen dam)125,000 10,00065,00050,000 GLeWAP Phase (Nwamitwa Dam )1,700,000 17,100228,000384,900 Dam Safety Rehabilitation Programme2,800,000228,000250,800360,000 Water Resources Project Raising of Clanwilliam Dam 1,830,000316,143436,459515,142 Mokolo and Crocodile River (West) Water Augmentation Project (Phase 1) 2,138,000100,092117,829106,929 Mokolo and Crocodile River (West) Water Augmentation Project (Phase 2) 13,950,000114,000228,000617,623 5

6. Medium term investment on water resources infrastructure Project nameTotal project budget Rand thousand 2013/142014/152015/16 Development Raising of Hazelmere Dam360,000210,000 105,0005,000 GLeWAP Distribution (Mopani DM)605,00056,000 - - ERP system upgrade from version 4.7 to ECC6 185,075100,000- - NWRI Support/Project management 236,067250,231 265,245 Financial management/Project support 185,147217,130227,987 TOTAL30,239,1182,210,0572,570,9093,423,187 6

7. Phases for the De Hoop dam 7 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Formalise institutional arrangement s Secure funding Procuremen t procedures Engineering design and construction documentati on Relocation and resettlement negotiations of families underway Completion of dam construction scheduled for 2013/14 Impoundment Commission ing Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED Target in 2013/14 APP

8. Phases for Olifants River Water Resources Development (BDS) 8 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Needs identification Identification and selection of possible interventions Preliminary investigation of options Identify best options for detail study Detailed investigation and assessment of best option(s) sizing and configuratio n (technical, environment al & cost) Recommend the project Upgrade of existing pipeline from Steelpoort to Mooihoek Environmental approval Reserve determination Public involvement Initial funding and institutional arrangements Some optimisation Decision to implement Funding has been allocated for the project Tender design completed and advertised for closing on 11 Apr 2013 Estimated date for award of tender is mid June 2013 Sub-phase 2C (Pipe from De Hoop Dam to Steelpoort) Construction Procurement Resettlement and compensatio n Sub-phase 2B(Flag Boshielo to Sekuruwe) Construction Procurement Resettlement and compensation Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation 2013/14 APP target

9. Phases for the Vaal River Eastern Sub-systems Augmentation 9 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED

10. Phases for the Mokolo River Augmentation (phase 1) 10 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Formalise institutional arrangement s Secure funding Procuremen t procedures Engineering design and construction documentati on Construction at 92% Impounding Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED 2013/14 APP target

11. Phases for the Komati Water Supply Augmentation 11 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Formalise institutional arrangement s Secured funding for the project The as-built drawings of the dam to be finalised once construction is complete Procurement Construction Resettlement and compensatio n Commission ing Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED 2013/14 APP target

12. Phases for the Hazelmere dam raising 12 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Funding secured for the project Tender design completed and advertised for closing on 11 Apr 2013 – awarding by mid Jun 2013 Construction of civil works to raise dam spillway by 7 metres in progress during 2013/14 Storage of additional water scheduled for September 2014 Commission ing of project scheduled for November 2014 Testing to verify if performance is according to design objectives or specification s Handover to Operations & Maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED 2013/14 APP target

13. Phases for the Clanwilliam dam raising 13 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Funding allocated for the project Tender design completed by 31 Mar 2013 Price Bill of quantities by Jun 2013 Complete N7 realignment design (SANRAL) by Apr 2013 Land acquisition to start by Jun 2013 Advertise tender for N7 realignment by May 2013 and award by Sept 2013 Site establishment to commence by Oct 2013 Estimated project completion 31 Mar 2014 Commission ing of project scheduled for Jan 2018 Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED 2013/14 APP target

14. Phases for the Mooi-Mgeni Transfer Scheme (phase 2) 14 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Construction of Spring- grove dam Procureme nt Resettlem ent and compensat ion Impoundin g Construction of the conveyance system Procureme nt Resettlem ent compensat ion Dam operator on site Testing to verify if performance is according to design objectives or specification s Handover to operations & maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED Formalise institutional arrangeme nts Secure funding Procureme nt procedures Engineerin g design and constructio n documenta tion 2013/14 APP target

15. Phases for the N’wamitwa dam 15 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Procurement Resettlement & compensatio n Construction Impounding Dam operator on site Testing to verify if performance is according to design objectives or specification s Handover to operations & maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED Formalise institutional arrangeme nts Secure funding Procureme nt procedures Engineerin g design and constructio n documenta tion 2013/14 APP target

16. Phases for the Raising of Tzaneen dam 16 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Procurement Resettlement & compensatio n Construction Impounding Dam operator on site Testing to verify if performance is according to design objectives or specification s Handover to operations & maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED Formalise institutional arrangeme nts Secure funding Procureme nt procedures Engineerin g design and constructio n documenta tion 2013/14 APP target

17. Phases for the Lesotho Highlands Water project (phase 2) 17 1 Reconnaiss ance 1% - 2% 2 Pre- feasibility 3% - 5% 3 Feasibility 6% - 8% 4 Decision support 9% - 10% 5 Design 11% - 20% 6 Constructio n 21% - 95% 7 Commission ing 96% - 100% A percentage is allocated to each phase and the total of all phases is 100% Procurement Resettlement & compensatio n Construction Impounding Dam operator on site Testing to verify if performance is according to design objectives or specification s Handover to operations & maintenanc e Closure Operations & maintenance Phase 1 to 4 constitutes planning Phase 5 to 7 constitutes implementation COMPLETED Formalise institutional arrangeme nts Secure funding Procureme nt procedures Engineerin g design and constructio n documenta tion 2013/14 APP target

18. PART 2: OVERVIEW OF WATER SERVICES (I.E. REGIONAL BULK) INFRASTRUCTURE 18

19. Overview of progress to date StatusNumberComments Projects completed during 2012/137Totalling 32 since 2007 Projects in construction phase76Of which 23 were started in 2012/13 Projects in design / tender phase19 Projects in feasibility phase27 TOTAL OF PROJECTS SINCE INCEPTION154 19 IMPACT FROM THE COMPLETED PROJECTS 1.Water for the provision of basic services 2.Water for economic growth and development 3.Increase assurance of supply 4.Improve quality of effluent discharge and prevent environmental pollution 5.Remove water restrictions

20. Overview of completed projects to date Completed projects to date per financial year 2007/2008: 3 projects 2008/2009: 2 projects 2009/2010: 6 projects 2010/2011: 9 projects 2011/2012: 5 projects 2012/2013: 7 projects TOTAL COMPLETED: 32 List of projects completed during 2012/13 financial year 1.Hermanus wastewater treatment works 2.Tsomo RDP2 Northern 3.Middleburg Bulk Water Supply 4.Jagersfontein / Fauresmith Bulk Water Supply (Phase 1) 5.Colesberg wastewater treatment works 6.Emadlangeni Bulk Water Supply 7.Drakenstein wastewater treatment works 20

21. Medium term investment on water services infrastructure TypeDefinitionRand thousand 2013/142014/152015/16 Small infrastructure Cost less than R90 million per annum and not totalling more than R250 million over the medium term 1 452 0691 946 8882 146 500 Large infrastructure Cost between R90 and R 400 million per year totalling at least R250 million but less than R1 billion 1 114 5171 579 9241 626 354 Mega infrastructure Cost over R400 million per year for a minimum of three years or totalling at least R 1 billion 636 811956 0841 098 800 TOTAL3 203 3974 482 8964 871 654 21

22. Budget allocation per province ProvinceProject costExpenditure from inception until 31 Mar 2012 Proposed budget allocation over the medium term 2013/142014/152015/16 Eastern Cape 6 328 812 574486 033 116582 741 497960 501 0831 032 000 000 Free State 1 923 034 218342 251 155225 100 000285 896 000303 654 000 Gauteng 438 425 000204 000 798241 200 000337 700 000355 000 000 KwaZulu-Natal 5 269 729 919722 367 645593 563 2751 167 000 0001 280 000 000 Limpopo 3 618 448 000614 365 239593 536 725717 499 000784 667 000 Mpumalanga 1 181 297 000135 673 747137 752 752225 000 000234 000 000 Northern Cape 3 095 303 491149 917 582270 400 000309 500 000340 500 000 North West 2 275 114 000219 392 054390 200 000347 000 000388 600 000 Western Cape 1 033 317 571110 954 651170 802 891132 800 000153 233 151 Head Office 065 691 05083 040 86089 015 91793 110 849 TOTAL 25 163 481 7733 050 647 0383 288 338 0004 571 912 0004 964 765 000 22

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24. NAMAKWA REGIONAL WATER SUPPLY SCHEME REFURBISHMENT Project description: The Namakwa Pipeline Refurbishment Project will provide approximately 55 000 people with an assured supply of potable water. Status: Approved as Regional Bulk Infrastructure Project Location: Northern Cape Province, Namakwa District Municipality, Nama Khoi Local Municipality Jobs impact estimate: Direct project construction jobs (consulting engineer and contractor): 25 Local labour employment estimation: 250 people Projected cost to completion: R534 million Project Scope: The Namakwa Pipeline Refurbishment project consists of the following components: Orange River Pumpstation, gravity main and canal Henkriesmond pre-sedimentation facility, pump station and rising main Henkries Water Treatment Plant, Clear Water Pumpstation and rising main Doringwater Booster Pump Station and rising main Eenriet Reservoir Eenriet to Okiep Gravity Main Vaalhoek Reservoir Okiep Pumpstation, reservoir and rising mains Carolusberg Reservoir Concordia Reservoir Garagoup Reservoir, booster pump station and rising main Little Crest Reservoir and gravity main Kleinzee Gravity Main and reservoir Progress : The 13km by 300mm diameter By-Pass pipeline is completed and water is being supplied more frequently to Springbok and surrounding towns. A total of 24 houses has successfully been renovated and repaired for the staff of Sedibeng Waterboard in Henkries and Doringwater. Installation of Water meters at Henkriesmond Pre-Sedimentation Facility and Henkries Water Treatment Plant Tender Evaluation Process in Progress for the supply of 54km by 500mm dia. Ductile Pipes for Gravity Main Pipeline Job creation: direct = 10, local people = 70 Challenges Water Breakages is Increasing on Aging Pipeline and Pumpstation Equipment Pipes for the first phase to replace 54km of pipeline need to be ordered urgently to prevent further delays on project. Decisions required: Appointment of Pipe Supplier for 54km Gravity Main Between Eenriet Reservoir and Okiep. DWA Construction Unit is still busy Evaluating Tenders Received Project schedule: Feasibility Studies Completed: October 2011 Completion of Emergency Works : June 2012 Completion of Refurbishments : March 2016 (Depending on the availability of funds) 24

25. Expenditure per province for the 2012/2013 financial year ProvinceBudget allocation Accumulative expenditureDifference between total budget and 20 Mar 2013 % January 2013February 201320 Mar 2013 Eastern Cape 453 061 932214 447 146314 085 831431 232 78321 829 14895% Free State 228 018 127157 379 332181 816 135227 058 220959 907100% Gauteng 216 426 884135 071 329139 036 346176 229 17840 197 70781% KwaZulu-Natal 544 967 280272 272 406338 442 113484 971 84959 995 43189% Limpopo 325 867 57137 959 968146 714 432238 963 20586 904 36673% Mpumalanga 185 891 50899 215 976123 205 737129 661 46656 230 04270% Northern Cape 182 312 977112 667 620140 039 827182 301 16611 811100% North West 275 194 796165 529 574170 513 880259 836 80515 357 99194% Western Cape 136 620 26081 154 65088 916 628122 592 34414 027 91690% Head Office 40 958 66526 718 92129 745 03635 170 4955 788 17086% TOTAL 2 589 320 0001 302 416 9221 672 515 9652 288 017 511301 302 48988% Increase in expenditure since previous report 370 099 043615 501 546 Cash flow 2 204 485 0002 410 668 000 Accumulative % spend 50%65%88% 25

26. Financial breakdown ProvinceBudget allocation Accumulative expenditure 20 Mar 2013 Pre-payments for pipes and materials Suspense account RRU journal to National Transfers Invoices at hand TOTALAdditional invoices Eastern Cape 453 061 932431 232 783 10 608 492010 886 721452 727 9976 123 754 Free State 228 018 127227 058 220 0-1 116 4012 076 308228 018 127 Gauteng 216 426 884176 229 178 0040 184 635216 413 813 KwaZulu-Natal 544 967 280484 971 849 0-1 648 51261 627 764544 951 101 Limpopo 325 867 571238 963 205 87 571 854-936 190 325 598 869 Mpumalanga 185 891 508129 661 466 8 759 874047 343 696185 765 036 Northern Cape 182 312 977182 301 166 000 2 500 000 North West 275 194 796259 836 805 3 231 201012 076 789275 144 795 Western Cape 136 620 260122 592 344 0-805 94414 833 472136 619 872 Head Office 40 958 66535 170 495 00400 00035 570 495 TOTAL 2 589 320 0002 288 017 511 110 171 421-4 507 048189 429 3862 583 111 269 8 623 754 Compensation of Employees budget amount R12 959 000 Anticipated under expenditure (CoE) of R 4 000 000 due to long process of filling of posts 26

27. WATER TRADING ENTITY 27 CAPITAL PROJECTS EXPENDITURE

28. 28 CONTENTS 1.Purpose. 2.Expenditure Report for Augmentation Funded Projects YTD 27 March 2013. 3.Expenditure Report for Water Services Projects YTD 27 March 2013

29. 29 PURPOSE To present the expenditure report for augmentation funded projects for Water Trading Entity -period ending 27 March 2013.

30. ` Expenditure for Augmentation Funded Projects as at 04 March 2013 PROJECT NAME YTDAnnual % Projection vs Adjusted BudgetComments R'000 % Actual vs. Budget Original Budget R'000 BudgetActual Adjusted Budget Re- allocation/Und er expenditure Projection for 2012/13 Overhead -28,596 - - Unallocated overhead. To be allocated to the projects ORWRDP (Ph 2A) - De Hoop Dam 261,508 247,27095% 284,527 261,508 - 100% - The amount of R23 million will be used as advance to new contractor. ORWRDP BDS - Bulk distribution (Sub Phases 2C and 2D) 521,168 498,39696% 300,092 521,168- 100% - Industrial action also impacted the projects - Inclement weather - lack of access to land GLeWAP Phase 2 (Tzaneen dam) 13,875 -0% 13,875 -13,875 -0% - No RID or Gov. Gazette GLeWAP Phase 3 (Nwamitwa Dam) 59,491 -0% 59,491 -59,491 -0% - No RID or Gov. Gazette Dam Safety Rehabilitation Programme 234,344 163,59270% 349,820 234,344 -26,026 208,31889% - Under expenditure due to delays in sourcing the PSP's. - The appointment of database of PSP's service providers will improve spending on these projects. - Some expenditure hasn’t been allocated from overheads. Raising of Clanwilliam Dam 44,605 200,673450% 50,849 44,605 156,068 200,673450% - R200 million has been spent on relocation of N7 by SANRAL MCWAP-1 55,860 -0% 87,80055,860-55,860 00% -Poor Quality of pipes -Poor contract performance( TCTA) -Delayed due to Medupi power station strikes Development Raising of Hazelmere Dam 21,896 9,66244% 43,100 21,896 -12,234 9,66244% - R14.5 million will no longer be spent on land acquisition. - This is important to achieve the securing of the GWW. - The demolition of the priory is being sped up. - The design will be accelerated to still achieve the original timeframes. GLeWAP Distribution (Mopani DM) 65,000 40,57962% 70,175 65,000 -24,421 40,57962% - Components of the emergency works were commissioned. - Shortage of pipes due to supplies over committed Molopo eye to Mmabatho pipeline - 5,1030% - - 45,600 0% - Awaiting invoices Ermelo Emergency work-9,3330%-- 9,333 0% - Awaiting projections ERP system upgrade from version 4.7 to ECC6 50,877 27,00053% 50,877 -23,877 27,00053% - The service provider has started with the project. The R23 million under expenditure must be rolled over as there is a commitment. - Delays in appointment of contractor NWRI Support 195,355 189,62597% 205,309 195,355 - 100% -The amount will be spent Financial management 153,217 156,442102% 161,281 153,217 4,783 158,000103% - The budget will be spent Subtotal 1,677,1961,576,27194%1,677,196 - 100% VAT 234,807220,67894%234,807 - 100% TOTAL 1,912,0031,796,94994%1,912,003 - 100%

31. Water services projects expenditure as at 27 March 2013 Project Name Adjusted budget 2012/13 Projections 2012/13 YTD Actual expenditure % Adjusted budget vs. YTD expenditur e % Projections vs. YTD expenditure % Projections vs. Adjusted budget Comments Nandoni WTW & Distribution (including Valdezia)256,931 241,83994% 100% -Slow spending due to delays in pipe deliveries, quality of pipes, major design changes and inclement weather. -A plan is in place to accelerate spending and completion of the project. Nandoni replacement of GRP pipes with steel pipes132,191 131,663100% - Flood damage. -A plan is in place to accelerate spending and completion of the project Inyaka WTW (Phases 1 -4)104,906 100,77096% 100% Hluhluwe RWS (Phases 1 – 4)107,228 95,42889% 100% Budget to be spent Middel Letaba Project ( Pump Station & Marogo pipeline & Masakona pipeline)17,798 16,88094% 100% Budget to be spent Total619,054 586,58095% 100% - 95% of the budget has been spent to date.

32. 32 THANK YOU