Presentation to the Portfolio Committee: Water & Environment

State of water infrastructure

Presentation byDr C Ruiters

Deputy Director-General: Water Resources Infrastructure 26 - 27 January 2011

Presentation overview1. Background2. Macro Planning: Integrated Water Resources Planning3. Infrastructure Developments4. Condition of existing infrastructure5. Dam Safety Rehabilitation and Refurbishment Programme

(DSRP)6. Strategy on Access to Water for Basic use from Dams7. Regional Bulk Infrastructure

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2. Macro Planning: Integrated Water Resources Planning

• Policy and Regulation Branch (Chief Directorate: Integrated Water Resources Planning) custodian

• National Water Resource Strategy - 19 WMA• Interventions and various options to address deficits are

continuously assessed (Option Analysis) e.g. reconciliation strategies, all town and city studies, planning requirement documents.

• Infrastructure development informed by rigorous planning process

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3. Infrastructure Development

1. Schemes completed since 2004

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Scheme Province Year Completed

Cost (R million)

1. Mooi –Mgeni Transfer KZN 2004 100

2. Xikundu weir and WTW Limpopo 2005 315

3. Morgenston Jericho Pumpstation Mpumalanga 2005 28

4. Nandoni Dam Limpopo 2005 574

5. Raising Flag Boshielo Dam Limpopo 2006 235

6. Berg Water Project Western Cape 2008 2500

7. VRESAP pipeline GP and MP 2010 2600

8. Nandoni WTW Limpopo 2008 295

TOTAL 6647

Major water resource infrastructure development projects

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Durban

Cape Town

461

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2

4

6

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1

HAZELMERE DAM

- 10 million m3 of water for domestic use

CLANWILLIAM DAM

- 70 million m3 of water for existing and new irrigation farmers- Direct Jobs: 678

VAAL RIVER EASTERN SUB SYSTEM AUGMENTATION PROJECT

- 96 million m3 of water for ESKOM and 64 million m3 of water for SASOL

MOKOLO AND CROCODILE RIVER (WEST) AUGMENTATION PROJECT

- 7 million m3 water for ESKOM (Medupi PS) and 5 million m3 water for domestic use- Direct Jobs: 250

MOOI MNGENI TRANSFER SCHEME (PHASE 2)

- 60 million m3 of water for domestic use- Direct Jobs: 450

KOMATI WATER SYSTEM AUGMENTATION PROJECT- 54 million m3 of water for ESKOM-- Direct Jobs: 466

OLIFANTS RIVER WATER RESOURCES DEVELOPMENT PROJECT (de Hoop)- 40 million m3 of water for domestic use and 40 million m3 water for mining- Direct Jobs: 800

Augmentation projects (1)Project Province;

completion dateBeneficiaries Total

cost :R (billion)

Available budget &Shortfall R (bill);

2011/12 deliverables

Mokolo-Crocodile Water Augmentation Project ( Ph 1)

Limpopo

2013

All citizens via Medupi PS; Lephalale LM

2,0 0,5 1,5 (to be from loans)

Commence construction in September 2011

Vaal River Eastern Sub-System Augmentation Project

Mpumalanga

2011

All citizens via Eskom and Sasol; jobs for local communities along the route of pipeline

2,7 2,7 ( all from loans)

0

Commission all components of project by July 2011

Raising of Hazelmere Dam

Kwazulu-Natal

2012

Domestic& industrial users of IlembeDM and Ethekwini

0,116 0,116 Prepare design and award tender for supply of crest gates 8

Project Province; completion date

Beneficiaries Total cost : R(bill)

Available budget & Shortfall R (bill);

Deliverables in 2011/12

Raising of Clan William Dam

Western Cape

2016

Existing and new (resource poor ) irrigat. farmers; LM of Clan William, Klawer, Vredendal

1,994 0,139

1,855

Commence with design

Komati Water Scheme Augmentation Project

Mpumalanga

2013

All citizens via Eskom 1,736 0

1,736 ( to be from loans)

Commence with construction in quarter 1 of 2011

Mooi-Mgeni Transfer Scheme ( Spring Grove Dam and pipeline)

Kwazulu-Natal

2013

Domestic and industrial users in Ethekwini; uMgungundlovu, Msunduzi

1,667 0

1,667 ( from loans)

Construction to commence in quarter 1 of 2011

Olifants River Water Resources Development Project 2A-H

Limpopo;De Hoop Dam by 2012; Bulk distribution system by 2015(?)

Domestic users in Sekhukhune District; Polokwane,Mogalakwena LM and mines

16,049 ( not including water services infrastructure requirements of 6,572)

3,074

12,975

Complete De Hoop Dam to 92 %; commence implementation of distribution system

Augmentation projects (2)

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STRYDPOORT MOUNTAINS

BURGERSFORT

EPSS

DE HOOP DAM

STEELPOORT TOWN

MOTOTOLO

MOKOPANE

POLOKWANE

LEBOWAKGOMO

JANE FURSEFlag Boshielo RWS

Tubatse RWS

Nebo Plateau RWS

Lebalelo RWSOlifantspoort South RWS

Olifants-Sand RWS

ORWSDP: WATER SERVICES DEVELOPMENT

FLAG BOSHIELO DAM

MOOIHOEK

Mphahele and Groothoek RWS

LEGEND

SUPPLY AREAS

EXISTING BULK WATER PIPELINES

ORWRDP PIPELINES

WATER SERVICES BULK PIPELINES

ESKOM PSS INFRASTUCTURE

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5. Existing Infrastructure

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Summary of extent and value of immoveable assets controlled by the Department (Mar 2010 – R million)

Asset Class Extent Asset Value Carrying Value

(prelim)Total Unit Current Replacement

cost

Depreciated Replacement

cost

Buildings 2 572 Number 2 301 898 803

Canals 8 036 km 29 073 10 773 9 339

Dams and weirs 359 Number 72 002 36 383 31 512

Measuring Facilities 3 011 Number 7 381 2 997 2 604

Pipelines 1 063 km 8 044 3 299 2 892

Pump stations 57 Number 1 673 818 713

Reservoirs 51 Number 631 264 229

Treatment works 62 Number 69 25 22

Tunnels 171 km 18 354 7 750 6 716

Other 77 Number 85 34 29

Sub-total (infrastructure) 139 612 63 241 54 859

State owned land 344 768 Ha 6 643 6 643 6 643

Servitudes 52 595 Ha 1 633 1 633 1 633

TOTAL 147 888 71 517 63 135

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5.1 Age Profile of Assets

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5.2 Age profile of assets

5.3 Remaining Useful Life

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RUL profile with capital renewal values

5. DAM SAFETY REHABILITATION PROGRAMME (DSRP)

• 359 dams on the asset register (218 listed in the ICOLD world register of large dams)

• Rehabilitation work on 22 dams complete

• 36 dams in various stages: feasibility study, detailed design or construction

Rehabilitation done due to:

• Insufficient spillway capacity: 80%• Slope stability problems: 10%• Inadequate maintenance eventually

resulting in dam safety problems: 60%• Geological/foundation problems:10%• Inadequate outlet systems: 80%

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0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

Cos

t (R

)

'2005/06 2007/08 2009/10

Fin Year

DSRP spending per financial year

Construction

Consulting

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Progress

• Total Expenditure till Sept 2010: R1 200m• Dams on programme: 58

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6. Strategy on Access to Water for Basic use from Dams

Introduction• Communities in rural areas that live in close proximity to water sources

and networks have been identified throughout South Africa that do not as yet have access to sufficient and safe water to fulfill their basic needs.

• This issue is of serious concern for DWA who has decided that urgent action be taken in order to ensure that the basic constitutional rights of these communities are fulfilled.

• This project is aimed at supporting the DWA to identify communities that live in close proximity to DWA dams that do not as yet have access to water for basic domestic use.

• It is envisaged that the final output of this project will be a report identifying these communities without access to basic water for domestic use and providing potential solutions to the identified service delivery problem.

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Scope of Work Envisaged by DWA• Conduct a survey of communities in close proximity to the dams as

by DWA in the list below in order to ascertain which communities do not have access to a basic domestic water supply

• Assess what water is available from these dams.• Determine impact of allocating some of the water from the

relevant dam to communities without a basic domestic water supply. The National Water Act states that the provision of water for basic human needs is a priority issue.

• Determine the level of service to be provided.

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Scope of Work Envisaged by DWA

• Ascertain existing infrastructure in the area.• Determine the possible infrastructure requirements to supply potable

water to the community.• Determine the estimated capital and operational costs of this supply.• Determine the estimated timeframe required to supply the

infrastructure.

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Dams Identified by DWA

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Central Operations Northern Operations Southern Operations Eastern Operations

• Usutu Vaal Zaaihoek

• Taung

• Bospoort• Molatedi • Vaalkop• Buffelspoort• Koster• Lindleyspoort• Nooitgedacht• Rust de Winter• Blyderivierspoort • Injaka • Buffelskllf• Ohrigstad• Phiring • Chuenniespoort

•Amabele•Balura•Bushmans Krantz•Cata•Dabi•Debe•Dimbaza•Glenbrock•Katrivier•Lanti•Lubisi•Magwa•Ncora•Roxeni•Sheshegu•Tentergate•Tsojana•Umtata

•Pongola Poort•Woodstock•Goedertrouw•Hluhluwe

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Overview of Approach Followed

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Can the community be supplied with

water from existing

networks?

Determine Location of

Dams

Consultations with WSAs in

order to confirm community and infrastructure

status

Determine associated costs and timeframes

with the provision of

infrastructure

PROJECT INCEPTION

Identify unserved

communites living within a 20km radius of

the dams

Determine dams available yield and associated infrastructure

required to supply

community with water

Determine infrastructure

required to supply

community with water

PROJECT CLOSE OUT

No

Yes

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Approach

Phase 1 : Determine Location of Dams and CommunitiesPhase 2 : Consultations with Relevant WSA’sPhase 3: Identify Possible Infrastructure SolutionsPhase 4: Financial and Time Implications for Proposed

Infrastructure per DamPhase 5: Institutional Issues

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General Comments• Currently the provinces that are focused on is:

– Limpopo– North West– Eastern Cape

• The full amount of funding indicated to conclude all activities was not available from inception

• Therefore the aim is to conclude the full life cycle for them before commencing with the other regions to estimate what funding is remaining.

• A time delay could occur if the All Town Study information is delayed due to some of the areas not yet concluded.

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Regional Bulk Infrastructure

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• Is to develop an oversight and support function

that will ensure the development and operational and maintenance of regional bulk infrastructure in the water sector.

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1- Overview Strategic purpose

Objectives of Programmea. Identify all regional bulk project requirements, through

appropriate integrated planning processes.

b. Assist with the funding and implementation of regional bulk infrastructure projects through RBIG.

c. Facilitate the development of institutional arrangements and capacity to ensure the implementation and effective operations and maintenance of regional bulk infrastructure.

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2 – Progress to date• 109 projects were started since 07/08 financial year.• 50 implementation projects have been initiated and

are in construction, design or tender phase of which 36 are in construction and 14 are in design / tender phase

• 42 feasibility / implementation ready studies are ongoing.

• 17 projects have been completed.

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Projects completed2007/08•Chris Hani Tsomo RDP2 BWS •Delmas Phase 1 Emergency •Thaba Chweu BWS 2008/09•Delmas Phase 2 •Maqwassi Hills RWS

2009/10• Mbhashe North BWS • Mathulini BWS • Greater Mthonjaneni BWS

Phase 1 • Van Wyksvlei Interim

Solutions • Van Der Kloof/Petrusville

BWS • Mjejane BWS

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Projects completed (continue)2010/11

• Mthatha Bulk Water Intervention • Malangeni Waste Water Treatment Plant• Greytown BWS • Mbombela Water Supply• Hoxani BWS• Kenhardt BWS

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Budget allocated categories

1. 85%-90% for project implementation2. 10%-15% for feasibility studies and

Implementation Ready studies3. R 20 –R 30 million for project and

programme management

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Previous financial years 2007/08 and 2008/09• 2007/08 R 300.0 million• 2008/09 R 443.4 million• 2009/10 R 618.2 million

2010/11 MTEF Allocation• 2010/11 R 893.0 million• 2011/12 R 1 675.3 million• 2012/13 R 1 849.1 million

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Budget allocation

3: Allocations & needs of benefiting municipalities to date•Eastern Cape - 13•Free State - 4•Gauteng - 2•KwaZulu-Natal - 11•Limpopo - 7•Mpumalanga - 5•Northern Cape - 9•North West - 4•Western Cape - 6

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2010 MTEF allocations (old)REGION

Budget Allocation 2010/11

Budget Allocation 2011/12

Budget Allocation 2012/13

Total % of total

EASTERN CAPE 165 100 000 309 000 000 321 650 000 795 750 000 18%

FREE STATE 87 000 000 153 300 000 108 000 000 348 300 000 8%

GAUTENG 56 000 000 63 000 000 97 500 000 216 500 000 5%

KWAZULU NATAL 157 775 000 328 400 000 399 360 500 885 535 500 20%

LIMPOPO 188 000 000 287 000 000 325 989 000 800 989 000 18%

MPUMALANGA 64 000 000 93 000 000 47 000 000 204 000 000 5%

NORTHERN CAPE 54 075 000 163 500 000 145 500 000 363 075 000 8%

NORTH WEST 48 300 000 105 000 000 120 900 000 274 200 000 6%

WESTERN CAPE 33 557 000 59 200 000 60 700 000 153 457 000 3%

SPECIAL PROJECTS 2 500 000 13 000 000 13 000 000 28 500 000 1%

HEAD OFFICE 36 693 000 100 940 000 209 507 500 347 140 500 8%

TOTAL 893 000 000 1 675 340 000 1 849 107 000 4 417 447 000 100%

New MTEF 2011

2011/12 MTEF Allocation

• 11/12 R 1 775.3 m increase by R 100 m

• 12/13 R 2 233.1 m increase by R 384 m

• 13/14 R 2 418.8 m increase by R 468 m

Total R 6 427.2 million

There is an increase of approximately R 952 million

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Comparison: backlog and RBIG funding

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Housing and water scarcity

sanitation and water scarcity

Urban –metro areas given less priority

RBIG Allocation

RBIG Allocation

(2011/2014) R’000

%

337 747 12.7% 15.2%

245 752 9.2% 4.6%

437 577 16.4% 10.5%

441 153 16.5% 28.2%

501 416 18.8% 19.6%

309 587 11.6% 9.8%

256 602 9.6% 8.4%

50 882 1.9% 1.8%

85 436 3.2% 1.9%

Sanitation Below RDP HH - 2010

Water backlog as % of total 2010

Eastern Cape 145 361 17.8%

Province

Water backlog

Households below basic-

2010

1 112 650 18%

Free State 0 0.0% 493 300

20.4%

KwaZulu-Natal 325 596

8%

Gauteng 37 590 4.6% 419 500 7%

18%

Mpumalanga 65 835 8.1% 421 532

39.8% 1 251 183 20%

Limpopo 167 122

13 069

7%

North West 58 051 7.1% 568 000 9%

817 350 100.0% 6 260 854

1.6% 488 900

Western Cape 4 726 0.6%

Northern Cape

100.0%

Sanitation backlog as % of total 2010

Average backlog

Water and sanitation

2 666 152 100.0% 100.0%

376 900 6%

8%

1 128 889

4 Alignment / Transparency1. CoGTA requires DWA to align RBIG with needs and all water related

projects2. Dep. of Human settlement is blaming other departments

responsible for bulk of been responsible for constraints to service delivery

Cape Time Nov 25 th 2010, p6Problems with the provision of bulk infrastructure are stifling housing

delivery across the country, says Human settlements Minister, Tokyo Sexwale….. Thus the need for a more integrated, planned and coordinated approach across various departments…

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Alignment1. Projects are motivated by WSA, therefore how

can there be misalignment ?2. The problem is that due to limited funds, RBIG

– Has not initiated any new projects in the last 2 yrs(policy is to complete existing projects before new ones

are initiated)– A significant gap exists between bulk infrastructure

needs and budget available.

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Alignment with other programmesThe following alignment between RBIG and MIG are required and therefore proposed:

1.Scope of projects by each programme

2.Overlapping budgets and co-funding

3.Criteria / conditions for project approval

4.Integration of planning needs

5.Monitoring and evaluation procedures of project implementation

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Successes1. The programme was expanded from a 3 year term to a long term

programme

2. The programme has expanded from R 300 million / annum in 2007/08 to R 2 418 million / annum in 2013/14

3. A consolidated list of all bulk needs / projects has been developed and is been updated through 9 Regional bulk Master plans.

4. New innovative projects implemented (i.e desalination and Waste Water recycling)

5. Significant amount of new jobs created (6017 jobs).

6. Inter –governmental co-operation (particularly WC, & FS)

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Regional Bulk Expenditure 20 January 2011

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REGIONBUDGET

ALLOCATION

ACCUMULATIVE EXPENDITURE 20

JAN 2011

DIFFERENCE BETWEEN TOTAL BUDGET AND 20

JANUARY

%

EASTERN CAPE 164 600 000 109 727 142 54 872 858 54%

FREE STATE 76 757 348 33 626 933 43 130 415 30%

GAUTENG 56 000 000 36 301 293 19 698 707 41%

KWAZULU NATAL 166 775 000 79 322 100 87 452 900 30%

LIMPOPO 208 000 000 88 304 694 119 695 306 40%

MPUMALANGA 29 600 000 18 099 967 11 500 033 61%

NORTHERN CAPE 79 472 652 53 243 780 26 228 872 68%

NORTH WEST 43 300 000 8 315 502 34 984 498 19%

WESTERN CAPE 43 300 000 19 196 132 24 103 868 44%

HEAD OFFICE 25 195 000 7 894 347 17 300 653 24%

TOTAL 893 000 000 454 031 889 438 968 111 51%

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With invoices not yet

processes R 490 m.

6: Expenditure

New project management priorities1. DWA to take greater/direct control for implementing new RBIG

projects in weak WSA utilising:– Project management capacity from DWA

– Utilising the capacity of Water Boards

– Utilising DWA construction

– Private service providers (i.e BoTT)

2. Identify new institutional arrangements and models

3. Focus on sustainability of projects and O & M

4. Ensure conditions of IRS are followed through

5. Focus on improving agreements with WSA and DWA

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Conclusion• Most RBIG projects are large projects that require,

appropriate water sector expertise for planning and implementation, they should not be entrusted to officials and institutions with limited expertise and capacity

• Although expenditure is slow , most funds will be utilised by the end of the financial year

• RBIG has been successful but not without problems

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THANK YOU