STANDING COMMITTEE ON APPROPRIATIONS STANDING COMMITTEE ON APPROPRIATIONS

Water Trading Entity

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Briefing on the 4Briefing on the 4thth Quarter Expenditure Report for the Quarter Expenditure Report for the Financial Year 2011/12Financial Year 2011/12

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CONTENTS

1. Purpose

2. 4th Quarter Expenditure Report for the Financial Year 2011/12

3. Challenges and Achievements

4. Budget Allocation 2012/13

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PURPOSE

To provide a brief overview of the 4th Quarter performance, challenges and achievements for the Financial Year

2011/12.

44thth Quarter Expenditure Quarter Expenditure Report for the Financial Year Report for the Financial Year

2011/122011/12

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NWRI AUGMENTATION FUNDED PROJECTS (including Support) AS AT 31.12.2012

Project Name

Adjusted Annual budget

Actual Expenditure

Under/(Over) Expenditure

% CommentsR 000 R 000 R 000

NWRI Support 125 540 125 339 201 100%

Financial Management 126 186 126 080 106 100%

ORWRDP2A (De Hoop Dam) 506 222 506 170 52 100%The expenditure for the De Hoop Dam construction which went according to plan

ORWRDP BDS 450 067 450 067 - 100%

An amount of R375 million was paid to TCTA for ORWRDP BDS ( Sub Phase 2C planning , design and the accompanying work as per the MOA and invoice.)

Nandoni Dam 400 218 182 55%

Dam Safety Rehabilitation Programme (DSRP) 262 677 262 591 86 100%

Clanwilliam Dam Raising 8 622 8 622 - 100%

Funds were transferred to the SANRAL for the road deviation. Must happen before breaking ground

MCWAP-1 257 047 257 047 - 100%The amount of R15 million was paid per invoices from TCTA.

GLeWAP Phases 2 and 3 (Tzaneen Dam Raising & Nwamitwa Dam) - - - 0%

Hazelmere Dam Raising 3 622 3 622 - 100%The preparatory and pre-implementation studies were done for this project.

SAP 47 181 47 181 - 100%

Subtotal 1 787 564 1 786 937 627 100%

VAT 250 259 250 171 88 100%

TOTAL 2 037 823 2 037 108 715 100%

Programme 3 Actual Expenditure as at 31 March 2012

Challenges and Challenges and AchievementsAchievements

2011/122011/12

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De Hoop Dam Construction1.On the Olifants River Water Resources Development Projects (ORWRDP) the realigned R555 road was handed over to the Limpopo Road Agency Limited for operation and maintenance as the custodian of provincial roads. 2.The entire dam foundation is now covered with concrete, while the concrete in the river section is above the old R555 level.3.The placement procedures were refined and the contractor broke the South African record by placing 103 000 m3 of concrete in a single month. More than a 1 000 persons were employed at the peak of construction.

ORWRDP (Bulk Distribution System)1.The Olifants River Water Resources Development Project (Phase 2) Bulk Distribution System (ORWRDP-2 BDS) is at a Detail Design & Construction Phase.2.The water delivery milestone for Phases 2C & 2H is scheduled for December 2013.

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... Continuing3. The implementation of the remaining project phases -Phases 2D, 2B, 2F and 2G- depends on the availability of funding. Project completion is likely to extend to end 2015.4. TCTA has received a revised Directive which limits TCTA to implementing Phase 2C. 5. The evaluation exercise on the communal land along the first 10km of Phase 2C has been done. 6. The reporting on the performance of Socio-Economic Development targets will be done once construction commences.7. A facilitation process is being implemented between government and the mines to investigate the most viable implementation plan for the other sub-phases of the ORWRDP-2 BDS.

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Mokolo and Crocodile River (West) Water Augmentation Project (Phase 1) (MCWAP Phase 1)1.The MCWAP Phase 1 is at a Construction Phase, which commenced in September 2011. 2.The existing Mokolo water infrastructure operated by Exxaro has been acquired by TCTA for incorporation into the new government water work.3.The contractor has completed the site establishment activities and the main construction activities have started, the first pipes were laid in March 2012.4.The remaining two loans will become effective once DWA has issued the “stipulati” letters required by the funders.5.The first pipes were to be placed in March 2012, which is approximately 6 weeks behind programme. Pipe manufacturing proceeded and the deliveries to site have commenced. The works are being closely monitored.6.The environmental baseline studies have been completed. The Environmental Control Officer is monitoring TCTA’s implementation of the project against the approved Environmental Management Plans.

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Mooi Mngeni Transfer Scheme (MMTS) Phase 21.The Mooi-Mgeni Transfer Scheme (Phase 2) (MMTS-2) is at the Construction Phase, which commenced in February 2011 2.Funding agreements were concluded and executed on 16 May 2011 with the EIB, AFD and KFW. 3.Most of the conditions precedents to drawdown have been fulfilled. TCTA is awaiting confirmation from the lenders on that all conditions to drawdown have been fulfilled. The inter-creditor agreement and the Security Cession between the funders have also been signed and executed. 4.The revolving credit facility agreement was signed on 16 May 2011 with DBSA. A disbursement request to the value of R250 million was submitted to DBSA on 5 March 2012 and the finalisation of the matter is in progress.5.A restriction by the Department of Environmental Affairs (DEA) on the number of trucks of a maximum of 30 per day allowed to transport crushed stone from the quarry in Pietermaritzburg to site has been lifted.6.The impoundment of water in the dam is planned for December 2012 with water delivery milestone in April 2013.

BUDGET ALLOCATION FOR AUGMENTATION-FUNDED PROJECTS

(2012/13)

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PROJECT NAMETotal Project Budget

Project cost to date

ENEComments

2012/13 2013/14 2014/15  R'000 R'000 R'000 R'000 R'000

ORWRDP (Ph 2A) - De Hoop Dam3,074,000

2,719,584 284,527 43,368

- Completion December 2012- Build houses for affected families- Finalizing construction activities around the Dam

ORWRDP BDS - Bulk distribution (Sub Phases 2C and 2D)

2,585,000 658,111 300,092 684,942 703,954

- Completion March 2014- Installation of pipes- Cash flow challenges, current financial year R1.2

billion is required.GLeWAP Phase 1 (Nwamitwa Dam and Tzaneen Dam)

1,325,000 59,491 233,471 212,015

- Completion March 2018- Site establishment- Raising of Tzaneen Dam

Dam Safety Rehabilitation Programme 2,800,000 1,582,470 349,820 347,762 405,000- Continuous projects- Rehabilitation of dams

Water Resources Project Raising of Clanwilliam Dam 1,830,000 9,829 50,849 317,956 520,056

- Completion May 2017- N7 re-alignment- Dam wall raising

MCWAP-1 2,138,000 435,488 87,800 103,359 93,797- Completion August 2015- Construction of a 46 km ,1m diameter pipeline- Cash flow must be reprioritised to other projects.- MCWAP-2 to commence to comply with SONA

Development Raising of Hazelmere Dam 162,000 4,125 43,100 37,800 35,088- Completion September 2014- The installation of the crest gates- Civil work for safety and stability of dam wall.- Acquisition of additional land in the dam basin

Mopani DM Emergency Works 220,000 70,175 - -- Refurbish dilapidated infrastructure

ERP system upgrade from version 4.7 to ECC6

205,000 50,000 70,175 87,719 -- Completion March 2014- Upgrade and development of new modules

NWRI Support

205,309

216,662

236,753

Financial Management

161,281

155,080

190,465

TOTAL 14,564,000 5,459,607 1,696,494

2,289,524

2,427,113

VAT 237,509

320,533

339,796

TOTAL 1,934,003

2,610,057

2,766,909

AUGMENTATION FUNDED PROJECTS BUDGET 2012/13 (including support)

END