1. WS Infrastructure Programme Quarterly Workshop KWAZULU-NATAL Presented by: M. Ngxongo Regional Project Manager: WSRBIP Date: 31 October 2013

2. WS Infrastructure Programme: Quarterly Workshop Contents A: Expenditure Status 2013/14 1.RBIG 2.MWIG 3.ACIP 4.NTP B: Key Challenges C: Project to be “Fast Track” D: Projects to be Launched E: Way forward

3. A1. RBIG : Expenditure 2013/14

5. INVOICE STATUS AS AT 29 OCTOBER 2013 5 PROJECT NAME APPROVED 2013/14 BUDGET PROPOSED 2013/14 BUDGET WITH R/O FINANCE ON HAND-WSSTOTAL BAS - 29 OCT 2013 MHLABATSHANE27 900 000 23 000 000 9 135 092.529 964 154.1319 099 246.654 507 255.91 GREATER ESTON38 000 000 37 653 446.650.0037 653 446.6523 479 724.15 DRIEFONTEIN44 200 000 38 421 114.030.0038 421 114.03 GREYTOWN31 813 000 10 924 916.864 495 281.6115 420 198.4710 746 110.04 MANDLAKAZI6 928 000 2 248 448.030.002 248 448.03893 079.72 NONGOMA43 413 000 23 412 300 9 787 556.920.009 787 556.92 JOZINI150 730 275 130 000 000 56 838 890.898 355 815.0365 194 705.9254 883 816.88 DUKUDUKU30 000 000 14 159 345.958 316 408.7222 475 754.679 389 212.22 HLABISA20 000 000 30 000 000 18 138 060.473 510 272.4021 648 332.8717 897 391.89 GREATER MTHONJANENI32 900 000 11 306 269.662 450 904.1613 757 173.8211 306 269.66 LOWER TUGELA (ILEMBE)80 000 000 30 946 476.7510 510 437.6941 456 914.446 998 513.88 LOWER TUGELA (UW)50 000 000 85 630 975 70 177 299.670.0070 177 299.6727 019 556.94 BULWER37 429 000 28 536 592.3953 125.8428 589 718.2324 562 420.85 TOTALS593 313 275 338 273 51147 656 400385 929 911239 892 023

6. A2. MWIG: Expenditure 2013/14

12. A3. ACIP : Expenditure 2013/14

15. 15 A3. ACIP - Acceleration – Action Plans Project Name Description of project Refurbishment of Madadeni WWTW Madadeni WWTW Implementing Agent Newcastle LM Problem Late award due to protracted SCM processes within the LM Impact on project If the appointed contractor fails to perform, the project won’t be completed within the financial year Action Plan by DWA LM requested to ask the contractor to work weekends and holidays Action Plan by IA To put pressure on the contractor to expedite refurbishment work Re-allocation none Completion date Feb 2014 Project Name Description of project Refurbishment of KilbarchanWWTW Kilbarchan WWTW Implementing Agent Newcastle LM Problem Late award due to protracted SCM processes within the LM Impact on project If the appointed contractor fails to perform, the project won’t be completed within the financial year Action Plan by DWA LM requested to ask the contractor to work weekends and holidays Action Plan by IA To put pressure on the contractor to expedite refurbishment work Re-allocation none Completion date Feb 2014

16. 16 A3. ACIP - Acceleration – Action Plans Project Name Description of project Refurbishment of Bethesda Hospital WWTW, Hlabisa Hospital WWTW, Ingwavuma WWTW, Kwamsane WWTW, Manguzi Hospital WWTW and Mseleni WWTW Bethesda Hospital WWTW, Hlabisa Hospital WWTW, Ingwavuma WWTW, Kwamsane WWTW, Manguzi Hospital WWTW and Mseleni WWTW Implementing Agent Umkhanyakude DM Problem Failure of DM to spend on 2012/13 financial year has resulted in spending 2013/14 budget on 2012/13 projects Late award of contracts Impact on projectReduction in the number of plants to be refurbished for the 2013/2014 financial year Action Plan by DWA DM requested to ask the contractor to work weekends and holidays Closely monitor contractors’ performance so as to reallocate funds if the performance is poor Action Plan by IA To put pressure on the contractor to expedite refurbishment work Re-allocation None yet as the budget has been already reduced by spending on last financial year’s projects Completion date Feb 2014 Project Name Description of project Refurbishment of Kwabadala WWTW, catherine Booth Hospital WWTW and Owen Sithole Agric. College WWTW Kwabadala WWTW, catherine Booth Hospital WWTW and Owen Sithole Agric. College WWTW Implementing Agent Uthungulu DM Problem Late award due to protracted SCM processes within the LM Impact on project If the appointed contractors fail to perform, the project won’t be completed within the financial year Action Plan by DWA DM requested to ask the contractor to work weekends and holidays Closely monitor contractors’ performance so as to reallocate funds if the performance is poor Action Plan by IA To put pressure on the contractor to expedite refurbishment work Re-allocation none Completion date Feb 2014

17. A4: NTP – Expenditure 2013/14

18. A4: Graphical Representation NTP, KZN

19. A4: Progress per WSA WSA Allocation 2013/14 Target, END SEPT Transferred END SEPT Actual Expenditure Zululand 15,721,0003,930,2502,646,3004,304,151 uMkhanyakude 9,022,0002,255,5002,706,6001,186,953 Ugu 5,565,0001,391,2501,669,5000 uThungulu 3,124,000781,0002,163,0000 Umzinyathi 7,500,0001,875,0002,250,0002,663,431 Amajuba 1,500,000375,000450,000415,379 Uthukela 6,000,0001,500,0001,800,000113,626 iLembe 11,139,0002,784,7503,341,7001,348,737 Newcastle 9,682,0002,420,5002,904,600345,207 uMhlatuze 7,210,0001,802,500937,000866,730 Total 76,463,00019,115,75020,868,70011,244,214

20. B: Key Challenges RBIG Irregular appointment of ISD Consultants. Funding shortfall of projects Final approval of the Greater Bulwer Scheme Sluggish in flow of co-funding portion of funding Additional cost of project value due to terminated contracts. Non-Performing DM’s – UGU DM. they are under resourced resulting in poor management.

21. B: Key Challenges RBIG – DMs delaying to pay contractors, and contractors constantly have to leave site e.g. uMzinyathi DM contractors MWIG – Delays have been experienced in getting environmental approvals (e.g. KwaSithole Project) – Delays have been experienced in appointing specialised contractors (e.g. Nondweni WTW) – Project has been hampered with rain (e.g. Nondweni WTW)

22. B: Key Challenges on NTP NTP Protracted SCM procedures within WSAs. Unreasonable amount of time to get contractor appointed Having to initiate, implement and close out a project all within the space of a year Weak WSAs i.e. inherent problems in their finance and PMU departments Non compliance of WSAs – inability to submit invoices and supporting documentation timeously Non payment of contractors by WSAs due to poor project management within the WSAs Lack of skilled human resources within the WSAs

23. C: Project to be “Fast Track” ZULULAND DM: – Mandlakazi WTW to enable reliable supply to Hlabisa

24. D: Projects to be Launched Middledrift WTW – 26 November 2013 Hlabisa BWS – 30 November 2013

25. E: Way forward National office to advice in time if additional funding will be made available for the ZDM projects that will be half complete should additional funding not be made available i.e. Mandlakazi WTW, as well as the completion of uSuthu BWS 25

26. END 26