WS Infrastructure Programme

Quarterly WorkshopFree State

Presented by:Mpho Manyama Water Services Infrastructure

Date: 31 – 01 October 2013

Sub-Title here (if needed)PRESENTATION TITLE HERE (if needed)

ContentsA: Expenditure Status 2013/14

1. RBIG 2. MWIG3. ACIP4. NTP

B: Key Challenges

C: Project to be “Fast Track”

D: Projects to be Launched

E: Way forward

A1. RBIG : Expenditure 2013/14 Scheme

Project Cost DWA

Commitment

Budget Allocation

2013/14

BAS Expenditure

31 October 2013

Invoices at Hand

Planned Cash Flow end Oct -

2013

Proposed Budget

Reallocations 2013/14

Reason for Re-allocation/ Movement

Implementation/

Construction Progress

Jagersfontein /Fauresmith BWS Phase 2

148,000,000 24,900,000 17,214,998 1,723,369  18,938,36724,900,000

N/A 67%

Rouxville /Smithfield /Zastron BWS

161,000,000 23,000,000 12,745,036 0 12,745,03623,000,000 N/A

58%

Masilonyana BWS 230,400,000 27,000,000 1,866,779 1,477,271 3,344,050 17,000,000 Slow progress 7%

Tokologo Regional WS

320,000,000 17,820,000 10,456,618 0 10,456,618 13,820,000Slow progress

99%

Setsoto BWS 160,000,000 10,000,000 1,796,773 0 1,796,773 4,000,000Slow progress

14%

Dihlabeng 255,000,000 20,580,000 14,569,839 0 14,569,839 18,580,000Slow progress

99%

Nketoana RWS augmentation

290,000,000 14,000,000 3,890,429 0 3,890,429 12,000,000Slow progress

28%

Sterkfontein Dam Scheme

520,100,000 32,600,000 18,402,864 7,600,000 26,002,864 52,600,000Requires

additional funds 50%

Phumelela 166,000,000 20,000,000 8,917,232 0 8,917,232 23,000,000Requires

additional funds62%

Moqhaka BWS 205,800,000 15,000,000 6,130,404 0 6,130,404 12,000,000Slow progress

10%

Ngwathe Phase 2 300,000,000 5,000,000 0.00 1,450,000 1,450,0007,000,000

Requires additional funds

5%

Nala Bulk Sewer 50,000,000 5,000,000 0.00 0 0.007,000,000 Requires

additional funds0%

Total 2,806,300,000 214,900,000 95,990,976 12,250,640 108,241,616 214,900,000 50%

A1 B: Feasibility studies ”Municipality Projects Estimated Costs Status

Mantsopa LM Bulk water supply R166 m Recommended

Nala LM Wesselsbron Bulk sewer

R86 m Recommended

Mafube LM Namahadi bulk sewer R112 m In final stage(land issue)

Tokologo LM Phase 2 bulk water supply for Boshof and Denesville

R295m In final stage

Tswelopele LM Bulk water supply R56m In final stage

Letsemeng LM Bulk water supply R120 m In final stage

Dihlabeng LM Phase bulk water supply to Fauresburg and Rosendal

R220m In progress

Scheme

Project Cost DWA

Commitment

Budget Allocation

2013/14

BAS Expenditure 31 October

2013

Invoices at Hand

Planned Cash Flow

end Oct -2013

Proposed Budget

Reallocations 2013/14

Reason for Re-allocation/

Movement

Implementation/

Construction Progress

Naledi LM Borehole Development

813,000 813,000 0 0 0 813,000 N/ABP and FA submitted

Dewetsdorp & Wepener Scheme 2

2,000,000 2,000,000 0 0 0 2,000,000 N/ABP and FA submitted

Dewetsdorp Scheme 3

8,000,000 1,046,000 0 0 0 1,046,000 N/ABP and FA submitted

Poding-tse-rolo 2,602,000 2,602,000 1,301,000 0 0 2,602,000 N/ABP and FA submitted

Mohokare LM Refurbishment

1,000,000 1,000,000 500,000 0 0 1,000,000 N/ABP and FA submitted

Jacobsdal/Ratanang WTW

14,000,000 6,500,000 1,000,000 0 0 6,500,000 N/ABP and FA submitted

Luckhoff/Teisesville/Relebohile WTW

8,970,295 5,384,000 1,000,000 0 0 5,384,000 N/ABP and FA submitted

Total 37,385,295 19,345,000 3,801,000 0 0 19,345,000

A2. MWIG: Expenditure 2013/14

A3. ACIP : Expenditure 2013/14 Project

Project cost DWA commitment

Budget allocation2012/13 FY

BAS Expenditure 30 October 2013

Invoices in hands

Planned cash flow end November 2013

Proposed budget Re allocations2013/14

Reason for re allocation/movement

Ficksburg sewer upgrade

16,900,000 5,040,000 2,082,338.93 0,00 1,250,000 5,040,000 N/A

Clocolan WWTW 5,800,000 5,800,000 450,000 0,00 1,500,000 3,400,000 Project started

late

Managung WC/DM

22,000,000 6,000,000 2,919,706.91 1,395,374 950,000 8,000,000

Project progressing quicker than scheduled

Ladybrand WTW 1,000,000 1,000,000 1,000,000 0,00 0,001,000,000

N/A

Wepener WWTW

2,250,000 2,250,000 221,020 570,000 650,000 2, 850,000Funds needed to line the pondxs

Morojaneng sewer pump station

5,600,000 600,000 0,000,00

0,00 0.00Non availability

of land

Jacobsdal raw water pipe line

3,000,000 3,000,000 0,000,00

0,00 2,000,000Project started

late

Letsemeng WC/DM

5,000,000- 5,000,000 0,00 0,00 750,000 4,000,000Project started

late

Kroonstad outfall sewer

7,400,000 5,000,000 1,360,000 1,500,000 1,100,000 7,400,000

Project progressing quicker than scheduled

33,690,000 7,583,065,84 3,465,374 (33%) 6,200,000 (52%)

A4: NTP – Expenditure 2013/14 Scheme

Project Cost DWA

Commitment

Budget Allocation

2013/14

BAS Expenditure 31 October

2013

Invoices at Hand

Planned Cash Flow

end Oct -2013

Proposed Budget

Reallocations 2013/14

Reason for Re-allocation/

Movement

Implementation/

Construction Progress

Refurbishment of Gariep Water Treatment Works

5,424,000 2,712,000 1,808,000 0.00 1,808,0002,712,000 N/A

Phase 1 completed

Refurbishment of Clarens Water Supply system

4,400,000 2,200,000 1,466,000 0.00 1,466,000 2,200,000 N/AContractor

phase 2 appointed

Refurbishment of Deneysville WTW

5,424,000 2,712,000 904,000 0.00 904,000 2,712,000 N/AMIG is co-funding

Refurbishment of Fika Patso WTW

10,000,000 5,000,000 1,666,000 0.00 1,666,000 5,000,000 N/AContractor still

to be appointed

Refurbishment of Thaba Nchu rural scheme water supply thruogh WCWDM

6,900,000 6,900,000 4,600,000 0.00 4,600,000 6,900,000 N/AUnder

construction

Total 19,524,000 10,444,000 0.00 10,444,000 19,524,000 N/A

1. RRU Status

1. Implementing Agent : Sedibeng Water2. Consultants : Rubiquant-Letsemane Consortium.3. Contract commencement : 01 April 2012 – 31 March 20154. Allocations 2013 -14 FY: R4,3 million - 1,5 million : schedule 7 (National Transfers Programme)

-2,8 million : RBIG

ExpenditureProgramme Allocation Expenditure Invoice in hands Remaining

RBIG R2 800 000 R1 366 790 R250 000 R1 183 210

TRANSFERS R1 500 000 R1 124 018 R150 000 R225 982

TOTAL R4 300 000 R2 490 809 R400 000 R1 409 192

11

B: Key ChallengesRBIG• (Kopanong) Jagersfontein/Fauresmith Regional Bulk Scheme:Water Treatment WorksEngineer for the Water Treatment Works and Reservoir seconded not well experienced R.E hence delay of project and detail drawings,• Guidance to the contractor is poor,•R.E not on site always so contractors mistakes get realised late,•No proper site instructions,•Contractor struggling to receive construction details.• Documentation on old projects is a challenge.

Reservior• Contractor has no enough knowledge to construct reservoir,•Contractor spend a lot on plant that they did not need, affecting their cashflow negetivly•Site agent no enough practical experience and ignores instructions from R.E•

B: Key ChallengesRBIG• (Moqhaka) Steynsrus Regional Bulk Scheme:•Changing over from MSW Consulting to Rand Water delayed project by six months,• WSA and Rand Water communication challenges i.e. WSA not in favour of waterboard,•Rand Water has no consistent personnel seconded to the project, this makes project steering committee uneasy,•Expenditure is slow on the project,

(Mohokare) Rouxville Bulk Water Scheme• The area has bucket system that could be a quick win if the bulk project can get additional R60 million to procure pipes,•Contractor had cashflow problems and has delayed the project by 8 months,•Safety on site is very poor even after pointing it out in meetings, this matter continues to be ignored. (An accident on site could shut down the project)•

B: Key ChallengesRBIG• General:•Test results files not available in some instances,•Over pricing of tenders especially for construction of pipes,•Contractors communicating directly with municipal officials , ignoring instructions of the R.E,•Poor invoice administration from municipality side,•WSA’s using MIG funds to pay for RBIG resulting in expenditure delays,•Boreholes schemes as an option against •IA fees – no bench mark(Water Boards)•Non of our WSA are willing to co-funding•Procurement– specifically on new projects(ACIP/RBIG)---commitments•ESKOM– electricity (Masilonyana LM)

B: Key ChallengesACIP• Letsemeng WC/DM and Jacobsdal raw water pipe line:Sedibeng Water only appointed contractors around 20 October 2013 hence no expenditure to date on these project hence re allocation of R2 million to Kroonstad to ensure that all funds are spent by end of FY. Clocolan WWTW:The scope of work had to be revised following the advice from the appointed consultant hence the late commencement of the project (October 2013) Morojaneng sewer pump station:Non availability of land for project implementation and negotiations taking too long hence re allocation of all the funds to other projects for expenditure purposes.MWIGDelay on appointmentsNo reporting, WSA lack of support from Waterboards

C: Project to be “Fast Track”Municipality Projects Costs Reason

Mafube LM Namahadi WWTW R112 m Facilitate Bucket eradication

Masilonyana LM Bulkwater pipeline R86 m Riots on water supply

Mohokare LM Raw water pipeline R66 m Facilitate Bucket eradication

Mantsopa LM Pipeline to connect hospital

R10m Hospital without water. President opening the hospital in November

D: Projects to be LaunchedPROVINCE PROJECT IMPLEMENTING AGENT/

MUNICIPALITY/WATER BOARD

POSSIBLE DATES

FREE STATE

Bethlehem to Paul Roux Scheme

Dihlabeng Local Municipality

08 November 2013

Roux ville WTW and pipeline from WTW to Reservoir

Mohokare Local Municipality

28 March 2014

Jagersfontein Phase1 ( Though the WTW is being upgraded as part of Phase 2)

Kopanong Local Municipality (Operated by Bloemwater)

14 February 2014

Christiana to Hertzogville Bulk water scheme

Tokologo Local Municipality 24 January 2014

Way forward

• Appointed two sub-contractors to avoid further delays

• Made inputs to the WSA to have an experienced RE on site

• Problematic projects- weekly site meetings are scheduled

• Involvement of Regional Head and Premier's coordinating forum to resolve administrative and political challenges