REGIONAL BULK INFRASTRUCTURE GRANT (RBIG) PROGRAMME IN MOPANI AND CACADU DISTRICT MUNICIPALITIES

1. REGIONAL BULK INFRASTRUCTURE GRANT (RBIG) PROGRAMME IN MOPANI AND CACADU DISTRICT MUNICIPALITIES PRESENTED TO THE: SELECT COMMITTEE FOR LAND AND ENVIROMENTAL AFFAIRS 20 NOVEMBER 2012

2. Presentation Outline • PURPOSE OF THE GRANT • RBIG MANAGEMENT POLICIES • RBIG REGIONAL OVERVIEW • PROJECTS UNDER IMPLEMENTATION • PROJECTS AT STUDY PHASE

3. Purpose of the Grant NT / DWA initiated RBIG in 2007 The main purpose of RBIG is to supplement the financing for the development of regional bulk water and sanitation infrastructure Fund aims to support Government’s development targets (e.g. eradication of basic water services) as well as socio economic priorities, enablement of growth and development initiatives as well as addressing specific water risks Although the project scope was originally Regional. The scope was expanded from the beginning to include large internal bulk. 3

4. RBIG Management policies Responsibility: DWA is responsible and accountable for the management of this specific-purpose Water Services Regional Bulk Infrastructure Grant. (Schedule 7: Grant in Kind) Accountability: The transfer from National Treasury to DWA will take place as per DoRA and bi-lateral arrangements. Co-funding:While this fund must enable economic development, the proportional capital cost for higher levels of domestic, commercial and industrial uses must be obtained from suitable co-funding or financing mechanisms 4

5. REGIONAL OVERVIEW: EASTERN CAPE REGIONAL OVERVIEW

6. RBIG expenditure: 2012/13

7. 13/14 RBIG Proposed MTEF Allocation Eastern Cape

8. RBIG Proposed Budget & Allocation Eastern Cape

9. CACADU PROJECTS

10. Cacadu District map

12. Cacadu District : Karoo Cluster - Water Resource IssuesOrange River Project water passes through these three WSAs so they are receiving ORP water.

13. Cacadu District : Karoo Cluster- Water Resource Issues These LMs all want Regional Water Scheme from Orange River Project. Technical investigation does not support a regional scheme on affordable and sustainable grounds, rather development of local resources first.

14. Cacadu District : Coastal Cluster - Water Resource Issues

15. BRIEF HISTORY OF POSSIBLE ORP SCHEME FOR UPPER SUNDAYS RIVER • First mooted as an irrigation scheme for Upper/Middle reaches of the Sundays River in White Paper X-’62 • Irrigation water was to be delivered from Teebus via Wapadsberg route to Sundays River at Graaff-Reinet • Scheme for Upper/Middle Sundays River irrigation (about 13 700 ha) has always proved too expensive even with enormous subsidies and writing off of capital cost. There are other fatal flaws too. • Upper Sundays Scheme thus removed from ORP in WP N-’71, which is a revision of WP X-’62. • On request of WSAs a Regional ORP scheme to supply only domestic water (and small foodplots) was investigated by the DWA in 2005 • Investigations showed that the Regional ORP scheme for domestic water only was also excessively expensive. 33 variations / options / schemes were considered.

16. Scheme 4 : Scheme preferred by Karoo Cluster Municipalities

17. Jansenville - Water reconciliation scenario

20. CHEAPEST ORP REGIONAL SCHEME OPTION

22. Project at Implementation Phase

23. Paterson Bulk Water Supply Project schedule: • Feasibility Studies and designs started June 2008 • Amatola Water Board appointed June 2010 to Implement project on behalf of the Department • Project construction commenced December 2009 • Project completion February 2014 Expenditure / Progress: Expenditure to date: R49,5 million Progress/Issues: • The overall progress on the project is 65% complete Connected issues: • Operations and Maintenance plan still to be finalised Decisions required: None Project description: • The Paterson Bulk Water Supply scheme is located within the Sundays River Municipality. The project will be used to augment the existing infrastructure in the towns of Paterson and Addo. Population served 8 681 people Status: Approved as Regional Bulk infrastructure Grant Location: Eastern Cape, Cacadu DM, Sundays River LM Jobs impact: • Direct project construction jobs: 16 (Consulting engineer and Contractor) • Local labour employed: 77 Projected cost to completion: R 73.3 million Project Scope: • Reservoirs at Caesar Dam in Addo (where the water is sourced); • Additional Clear Water Storage Reservoir in Paterson; • A rising main pipeline from the WTW at Caesars Dam, Addo, to the proposed clear water reservoir in Paterson. Two proposed clear water pump stations will also be constructed along the pipeline; and • Upgrading of the Water Treatment Works at Caesars Dam in Addo

24. Ndlambe Bulk Water Supply Progress/Issues: • Co-funding amount still to be determined • Feasibility study is underway • EIA is underway • Water use licence is still to be issued by DWA Connected issues: • None Decisions required: Total budget approval Project description: Construction of a raw water abstraction point Lower Fish River and the augmentation of the Dabi Water Treatment Works and conveyance infrastructure such as pumpstations and pipelines towards the towns of Klienemonde, Port Alfred, Bathurst, Boknes, Bushmans River, Cannon Rocks and Alexandria. Population to be served 49 216 people. Status: Planning Location: Eastern Cape, Cacadu DM. Ndlambe LM Jobs impact: • Direct project construction jobs: Projected cost to completion: R 818 million Project Scope: • Construction of a pumpstation and pipeline. • Construction of abstraction works • Construction of Desalination plant Project schedule: • Commencement of feasibility study: April 2011 • Commencement of Construction: June 2012 • Estimated project completion: June 2016 Expenditure / Progress: • R 4.8 million spent to date

25. Projects under Studies

26. REGIONAL OVERVIEW: MOPANI DISTRICT MUNICIPALITY

27. CONTENTS • Overview of the Mopani District • Water Resources • GLeWaP • Middle Letaba dam • Regional Bulk Infrastructure Grant (RBIG)

28. Overview of the Mopani District • Mopani district Municipality covers an area of 22,241km^with the population of just over 1.2 million people , spread within the five local municipalities, namely Maruleng, Greater Tzaneen, Greater Letaba, Greater Giyani and Baphalaborwa local Municipalities. • The district falls within a low rainfall region of the country which is prone to occasional droughts and flood.

29. WATER RESOURCES 29 Greater Letaba Water Augmentation Project (GLEWAP) Middle Letaba dam

30. Water Resources cont’d Greater Letaba Water Augmentation Project (GLeWaP) • GLEWAP comprises three phases: • Raising of the Tzaneen dam • Development of the Nwamitwa dam, and the water services component namely, • Upgrading of Nwamitwa Regional Water Scheme

31. GrootLetaba Water Augmentation Project (GLeWaP) – Raising of Tzaneen Progress & Challenges: Labyrinth Spillway design option being investigated for Tzaneen Dam The RID not issued Government Gazetted not published Risk that cost will not be spend because of previous items Connected issues: Local Water distribution Infrastructure to be implemented by Local Authorities Project description: • The raising of the existing Tzaneen Dam- to augment the water supply Status: • Environmental Authorization issued and conditions now to be met. Province: Limpopo Jobs impact: • RID to indicate Projected cost to completion: • This project is estimated to cost R 125 million Project Scope: • The raising of the Tzaneen Dam Project schedule: • To be scheduled pending issue of RID

32. GrootLetaba Water Augmentation Project (GLeWaP) – Construction of Nwamitwa Dam Artistic impression of Nwamitwa Dam Project description: • Construction of a new major storage dam on the Groot Letaba River just downstream of the Nwanedzi River confluence - For Ecological Reserve, Domestic & Irrigation supply assurance Status: • Environmental Authorization issued and conditions now to be met. Province: Limpopo Jobs impact: • RID to indicate Projected cost to completion: • This project is estimated to cost R 1 325 million Project Scope: • The construction of the Nwamithwa Dam Project schedule: • To be scheduled pending issue of RID Progress & Challenge: The RID not completed Government Gazette not published Environmental authorisation conditions require additional authorisation (early compensation of citrus farmers 7 yrs in advance) Connected issues: Local Water distribution Infrastructure to be implemented by Local Authorities Unique and costly road deviation design required by Limpopo roads agency

33. GrootLetaba Water Augmentation Project (GLeWaP) – Mopani Works Project schedule: Site establishment :June 2012 Refurbishment complete: December 2012 Completion of Project: December 2013 Progress & Challenges(31 October 2012): Water Treatment Works: Abstraction works are being upgraded, two settling tanks repaired and sand filters refurbished. Other minor upgrading works are nearing completion. Weir at River: Postponed to 2013 dry season. Xihoko pipeline: Repair completed up to Xihoko reservoir Babanana pipeline: Pipes have been ordered Other supply pipelines: Investigation of 32km pipelines not constructed is in progress. Connected issues: Community participation to stop illegal water connections to pipelines. Decisions required: None Project description: The refurbishment of existing water works and construction of the new pipeline to restore the Regional bulk water supply to the area. Status: Part of existing works owned by Mopani District Municipality Province: Limpopo Jobs impact: Direct construction jobs:100 Beneficiaries: 145 000 people Projected cost to completion: This project is estimated to cost R 128 million (Available Budget 2012/13=R70mil) Project Scope: Refurbishment of the Nkambako Treatment Works to deliver 12 Megalitre per day Repair damaged Xihoko and other pipelines Construction of pipeline to Babanana Reservoir

34. Water Resources cont... Middle Letaba Dam • Current levels are Middle Letaba Dam 0.7% & Nsami 15.1 % • Affecting 4 local municipalities in Mopani and Vhembe District Municipalities, namely: • Greater Giyani Local Municipality • Letaba Local Municipality • Makhado Local Municipality • Thulamela Local Municipality • DWA study on Middle Letaba Dam in 2008 recommended appropriate range of emergency, short / medium and long term interventions ranging from water savings to water augmentation projects. Middle Letaba Crisis

35. Background (cont.) Middle Letaba Crisis

36. Intervention Action plan summary Middle Letaba Crisis

37. RBIG Implementation projects and funding for 2012/13, 13/14 &14/15 MIG (co-funding) allocations have to be added to these water projects.

38. Giyani BWS Drought Relief Project schedule: Site establishment: 1 November 2010 Last stoppage: 2 Nov. 2011 to 1st Sept 2012 Resumption of Works: 1st September 2012 Completion of Project: December 2013 Progress & Challenges(31 October 2012): Excavation 20.6km. Pipe laid 12km Re-work 8km Pump station has not commenced Connected issues: This is an emergency intervention due to the very low level in the Middle Letaba Dam. Legal Issues: There are four Judgement orders Appointment of Independent Engineer to investigate the status of the works before resumption A Consultant was appointed and conducted investigation Tender process declared illegal Municipal Audit investigating iregulaties raised by the Judge Municipality and contractor to honour agreement The contractor has resumed works and is working on an accelerated programme. The Contractor to cover the cost of remedial works Project description: Construction of bulk pipeline from Nandoni Dam to Nsami Water Treatment Works. Province: Limpopo Jobs impact: Direct construction jobs:100 Beneficiaries: 300 000 people Projected cost to completion: This project is estimated to cost R 247 million Budget 2010/11 = R110million Budget 2010/11 = R 54million Budget 2012/13=R7million Project Scope: Construction of 51km of 600mm and 500mm diameter steel pipe. Pump station

39. MametjaSekororo BWS Project Scope: Phase 2. Construction of a 15ML /Day Water Treatment Works at the Oaks/Willows, Construction of 15ML command reservoir, Construction of 400kl and 300kl reservoirs at the Oaks and Finale, 1.2km pipeline from the treatment works to the 15Ml reservoir, 1.5km pipeline from 15Ml reservoir to the Oaks, 2km pipeline from 15Ml reservoir to Willows junction. 5.6km from Oaks to Finale. Construction of the pump station Progress & Challenges(31 October 2012): Delay on the procurement processes by the IA 2011/2012 budget of R48 mil not spent and returned to DWA National for reallocation to other provinces. No expenditure yet on current 2012 /13 budget Proposed Solution On going monitoring and support by DWA to improve progress Project description: Provision of Bulk Water to the Sekororo community. Province: Limpopo Jobs impact: Direct construction jobs: 50 Beneficiaries: 100 000 people Projected cost to completion: This project is estimated to cost R 214 million Budget 2012/13=R31.7million Project schedule: Resumption of Works: 1st October 2012 Completion of Project: March 2014

40. WATER SERVICES CHALLENGES • No projects more than R100m can be transferred to municipalities • Skills and staff shortages to operate the major projects • Operation and maintenance funding shortage within municipalities • Equitable shares formula inadequate

41. WATER SERVICES CHALLENGES cont’d 41 CHALLENGES Ring fencing of water services in WSA (budgets / equitable share / expenditure / reports) Diminishing transfers budget / increasing equitable share budget

42. Thank-you!!!