PRESENTATION TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 7 MAY 2013

1. PRESENTATION TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 7 MAY 2013

2. MOKOLO & CROCODILE WATER AUGMENTATION PROJECT (MCWAP)

3. OBJECTIVE The objective of the MCWAP is to plan and implement feasible options to transfer water from the Mokolo River and Crocodile River (West) to Lephalale and Steenbokpan without impacting on the water entitlements of existing users.

4. MCWAP: DESCRIPTION & PURPOSE • Augmented water supply in the Lephalale area to meet the water requirements of the Medupi Power Station and the future water requirements related to the expected growth in the Lephalale Municipality • Phase 1 under construction includes a new pump station at Mokolo Dam and pipeline to Medupi and Matimba Power Station, Exxaro mine and Lephalale town • Sub-phase 2A: Vlieëpoort Abstraction Works and bulk transfer system (BTS) to Steenbokpan and Lephalale areas including a river management system by 2019 • Sub-phase 2B: Duplication of BTS, if needed • Sub-phase 3: Abstraction Works at Boschkop and BTS to Vlieëpoort Abstraction Works • Sub-phase 4: Transfer Works from southern Gauteng to augment supply • Social/Commercial portion on/off-budget

5. LOCATION OF INDUSTRIAL DEVELOPMENT

6. Mokolo and Crocodile River (West) Water Augmentation Project Phase 1 (MCWAP-1) (75% off-budget) • Entire pipeline Ready for trial operation: May 2014. • Forecast project close out: December 2015 Progress& Challenges: • R715 million (within budget) expended to date. • Contract awarded in June 2011. • Site handed over to contractor on 14 Sept 2011 and physical activities started during November 2011, progress is unfortunately slow, i.e. 6 months behind schedule. New contract staff mobilised, more fronts mobilised, new techniques (robot – 300m/day) introduced, start to see improvements. Talks at CEO level held, mitigation plan tabled and monitored. Penalties levied. • Pumps, valves and HVAC equipment manufactured. • Industrial action experienced during January 2013 • 6 922m pipe laid • Pipe delivery challenges addressed • MCWAP-1 will not delay Medupi’s proposed commissioning end 2013 Project description: Construction of a pumping station and 46 km of pipeline, with a diameter of 1 m to deliver bulk raw water from the Mokolo Dam to Medupi and Matimba Power stations, Exxaro and for the expected domestic 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: 1 600 at peak Projected cost to completion: R2,138 billion (excluding VAT) Project Scope: • Construction of Mokolo Pumping Station. • Construction of a 46 km, 1m diameter pipeline. • Refurbishment of existing pipeline. • TCTA to obtain off budget funding (75% commercial) • Additional yield 30 million m3/a. Project schedule: • Debottlenecking 6,6 km: First water end April achieved • 2013 Debottlenecking 10,4 km: First water June 2013

7. Olifants River Water Resources Development Project – Phase 2A (De Hoop Dam)

8. Olifants River Water Resources Development Project – Phase 2A (De Hoop Dam) 30 April 2013 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: Sept 2013 (Project Completion at 95%) Progress/Challenges 3rd & 4th stage river diversion completed October 2012. High risk of missing 2012/13 wet season storage if impoundment not commenced – relocation of basin families still a concern. Construction completion date now Sept 2013. Connected issues: Sediment from upstream open cast mining polluting and decreasing dam storage capacity Community distress if primary water is not supplied

9. Olifants River Water Resources Development Project -Phase 2 Bulk Distribution System

10. Olifants River Water Resources Development Project – Phase 2 Bulk Distribution System 2B – Pipeline from Flag Boshielo to Sekuruwe and its accompanying equipment 2C – Pipeline from De Hoop Dam to Steelpoort and its accompanying equipment 2D – Upgrading of the pipeline from Steelpoort to Mooihoek (Required by 2021) 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: 2 000 jobs for the BDS • Jobs due to new irrigation and industrialisation and growth: 5 000 Projected cost to completion: • Phase 2 (Bulk Distribution System): R4.4bn Project Scope: • Construction of the Bulk Distribution system that will convey bulk raw water from the De Hoop and Flag Boshielo Dams to domestic and industrial users, according to the recommendations of the Panel of Experts. Project schedule: • Construction of 2C commenced in March 2012, completion expected by March 2014. • Design and Planning activities of 2B as per the PoE’s recommendations to commence June 2013 Progress: • GAP analysis of the design and planning done is currently in process. Challenges: • The project to implement the recommendations by the POE. • All the work that is to be done on 2B must be done to realise the start of construction by year end. • Funding model is still under discussion.

11. Luvuvhu River Government Water Scheme:Nandoni Pipelines

12. Luvuvhu River Government Water Scheme: Nandoni Pipelines Project schedule: Bulk pipelines to the north of Nandoni Dam and Xikundu Weir commissioning dates are as follows: NN20B Rising Main was commissioned during April 2013 and the Lukalo-Lambani and NR6 Pipelines will respectively be commissioned during May and June 2013. Secondly the VuwaniPipeline is being constructed by three Contractors and it is foreseen to be commissioned during July 2013. Lastly the Valdezia bulk pipeline is being constructed by the DWA Construction North and will be commissioned during November 2013. Challenges: The Nandoni pipeline was planned to be finalized in June 2013, extensive progress has been made, however due to challenges experienced as a result of unsatisfactory performance by the contractor, the project will be delayed by 3 months. The floods that were experienced during the rainy season in the area also contributed to the delays. An accelerated works programme is being implemented by the contractor to make up for the time lost. Connected issues: Local Water distribution Infrastructure to be implemented by the Vhembe District Municipality. Project description: Construction of five new pipelines to replace problematic GRP pipelines Status: All the contractors have been appointed and are on site. Province: Limpopo Jobs impact: 881 local laboures are employed Projected cost to completion: R750 million Project Scope: This project includes five new steel pipelines for Xikundu Distribution Scheme and Nandoni Distribution Scheme