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Presentation to Portfolio Committee on Water and Sanitation
on TCTA Integrated Annual Report 2016 - 17
5 October 2017
1
• Manage the fundingand debt on theinfrastructure projects,on behalf of clients, in amanner that achievescost-effective funding,taking into accountcurrent and projectedmarket conditions aswell as associated risks
• Implement all aspectsof each infrastructureproject to ensure thatthe service deliveryobjectives, of the client,are met in the mostcost-effective andsocio/ environmentalsustainable manner
Ernest & Young Inc. evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework
Ernest & Young Inc. did not identify any material findings on the usefulness and reliability of the reported performance information for the selected objectives
• Pre-implementation– Phase 2B of the Olifants River Water Resources Development Project– Phase 2A of the Mokolo- Crocodile River (west) Augmentation Project– Mzimvubu Water Project
• Under Construction– Acid Mine Drainage: Eastern Basin– Phase 2C of the Olifants River Water Resources Development Project
• Post-construction– Acid Mine Drainage: Central Basin– Phase 2 Of the Mooi Mgeni Transfer Scheme
• Water transfer pipeline• Water pipeline for Umgeni Water
– Phase 1 of the Mokolo- Crocodile River (west) Augmentation Project
• Operation and Maintenance– Acid Mine Drainage: Short-term Intervention (Western, Central &
Eastern Basins)– Outfall Tunnel North of the Lesotho Highlands Water Project
Short-term Intervention on Acid Mine Project
Total capacity of 234 thousand m3 per day
Commenced April 2011Completed August 2016
Cost at completion R2.6 billion
Operation and Maintenance Costsof Short-term Intervention
(Total R265 million)
Western Basin 11%
Central Basin 55%
Eastern Basin 34% R29 million
R146 million
R90 million
Outfall Tunnel North of the Lesotho Highlands Water Project
Delivered 794 million m3
Phase 2C of the Olifants River Water Resources Development Project
• The first 10 km has been able to deliver water to the water treatment works at Steelbrug since January 2014
• Supply capacity of 80 million m3 per annum• Projected capital cost at completion R2.3 billion• Projected date for completion of the balance of the works, November 2017
EMPLOYMENT
Employment on Projects under Operation & Maintenance
11
Employment
Gender Ethnic group
TotalFemale Male HDI Non-HDI
AMD O&M Eastern
Employed 17 29 36 10 46
AMD O&M Central
Employed 4 34 33 5 38
AMD O&M Western
Employed 6 22 23 5 28
LHWP
Employed 0 4 3 1 4
O&M Total
Total 27 89 95 21 116
Employment on Projects Under Construction (ORWRDP2C)
12
Employment Group
Origin Gender Ethnic group
LocalElse-
whereFemale Male HDI Non-HDI
Total
Mar-17 Mar-16
Unskilled 86 1 13 74 86 1 87 117
Semi-skilled 35 113 18 130 148 0 148 148
Other (skilled & staff) 2 48 6 44 19 31 50 59
Total 123 162 37 248 253 32 285 324
Staff Complement and Employment Equity
Classification African Coloured Indian White Foreign nationals
LevelCurrent Target Current Target Current Target Current Target Current Target
M F M F M F M F M F M F M F M F M F M F
Top management - - - - - - - - - - - - - - - - - - - -
Senior management 4 - 4 - - - - - - 1 - 1 1 1 1 1 - - - -
Professionally qualified 27 16 30 16 3 1 3 1 5 2 5 2 6 3 6 3 4 - 4 -
Skilled 15 28 13 28 1 5 1 5 - 2 - 2 - 4 - 4 - - - -
Semi-skilled 3 7 3 6 - - - - - - - - - - - - - - - -
Unskilled - - - - - - - - - - - - - - - - - - - -
Total 49 51 50 50 4 6 4 6 5 5 5 5 7 8 7 8 4 - 4 -
People Living with Disabilities
Level Current: 2016/2017 Target: 2016/2017
Top management- -
Senior management- -
Professionally qualified 1 4
Skilled 1 3
Semi-skilled- -
Unskilled- -
Total 2 7
In our opinion as Ernest & Young Inc. thefinancial statements present fairly, in allmaterial respects, the financial position ofTrans-Caledon Tunnel Authority as at 31 March2016, and its financial performance and cashflows for the year then ended in accordancewith International Financial ReportingStandards and the requirements of the PublicFinance Management Act of South Africa.
Irregular Expenditure(Services not procured in accordance with regulation but value
for money received)
• Total R49,468 million (4.6% of cash paid to service providers)– Contractor for the Operation of the Central Basin Acid
Mine Drainage Plant
– Provision of Disaster Recovery Services
– Appointment of a forensic auditor
– Appointment of Executives
– Changing criteria during the evaluation of a photocopier tender
– International travel
Fruitless and Wasteful Expenditure(Where no value as received for the expenditure incurred)
• R202 499 (13 incidents)
• 0,1% of total operating expenditure
Description Budget(R million)
Actual(R million)
Capital Unit and Bulk Operations & Royalty Charges 5 242 6 099Finance Costs 3 517 3 285
Capital Expenditure 4 880 574
Budget versus Actual
0
1000
2000
3000
4000
5000
6000
7000
Unit Charges Finance Costs Capital Expenditure
Actual Budget
Capital Expenditure per ProjectAcid Mine Drainage Budget
(R million)Actual
(R million)
Vaal River System
• Acid Mine Drainage: Short-term Intervention 296,9 84,5
• Phase 2 of the Lesotho Highlands Water Project 1 387,0 183,2
• Acid Mine Drainage: Long-term Solution 2 378,0 -
Phase 2 of the Mooi – Mgeni Transfer Scheme 77,8 83,8
Olifants River Water Resources Development Project 239,1 138,5
Mokolo – Crocodile River (west) Augmentation Project
• Phase 1 261,7 83,5
• Phase 2A 205,6 -
Other 32,2 0,1
Total 4 880,4 573,6
Total Expenditure
R130 million
Capital Expenditure 11%
Royalties, LHDA and LHWC 20%
Other Costs
(Opex)5%
Staff Costs3%
Finance Costs 61%
R3 284 million
R574 million
R1 044 million
R291 million
R162 million
Debt per Project
Vaal River System68%
Berg Water Project 2%
Vaal River Eastern Subsystem
Augmentation Project 13%
Phase 2 of the Mooi - Mgeni Transfer Scheme 7%
Komati Water Scheme Augmentation Project 5%
Mokolo Crocodile River (west) Augmentation Project 5%
R1 573 million
R1 934 million
R3 744 million
R1 313 million
R720 million
R19 427 million
