1. Contact Sam Shabalala Municipal Manager: Emfuleni LM Sedibeng Regional Sanitation Scheme Project Status

2.  Project Objectives  Project Background before PPMO  Actions taken by PPMO  Professional Team  Roadmap  Delivered and Outstanding items  Priority Support Intervention Issues and Risks  Transitional Challenges  Integration of approaches  Support to Emfuleni

3.  Create a regional infrastructural capacity for bulk sanitation for the Sedibeng region  Institute interim measures to address immediate/emergency problems  Deliver effective solutions that will eradicate the pollution into the Vaal River and its tributaries  Unlock development projects that require sanitation services  Facilitate local economic development and socio-economic upliftment via the SRSS programme

4.  Emfuleni had an appointed a Transaction Advisor (TA) for the identification of aTechnical solution to resolve the long term sanitation issues in Sedibeng. This TAwas also tasked to complete the Section 78 (3) study in order to identify thepossibility of a Public Private Partnership. The appointed TA was active inEmfuleni from June 2008. On analysis of their progress it was established thatdocuments produced by the TA was presented for Municipal approvals by the TA.All documents were presented to committees at various levels however withoutthe mandatory approvals. It was further established that the Section 78(3) studywas not progressing due to data unavailability  It was established that in order to address the interim issues a second consultingteam was deployed by the Department of Water Affairs (DWA). This consultantprovided services on an adhoc basis and no alignment existed between theinterim measures and the proposed long term solution  The PPMO further found that no emergency procurement processes were inplace to accelerate the requirements of the interim projects  A capacity check at the various plants highlighted that the plants lackedoperational capacity to run the plants  General project administration and integration was lacking

5.  The TA has been tasked to complete the Section 78(3) on an acceleratedpath. Various contact sessions were arranged to accumulate the datarequired  All documents produced without approvals has been presented at therelevant committees and all approvals obtained  All mandatory Public information sharing sessions for the Environmental andSection 78 (3) processes have been held  All the long term and interim project requirements have been integrated anda comprehensive project list produced. All MIG applications for interimprojects have been submitted for funding  A project specific Section 79 committee has been put into place to deal withEmergency procurement and other project needs  Rand Water was consulted and as of the 1 October 2009 brought on board toassist Emfuleni with operation capacity at the various plant  All internal project administration and integration issues have beenaddressed

6.  Provincial Project Management Office – Siris Engineering –Appointed by DLG&H  Long term Solution – Arcus Gibb Consulting Engineers –Appointed by Emfuleni Local Municipality  Interim Measures – Aurecon Consulting Engineers –Appointed by DWA

7. Short term Data collection End date Q1 2009 Infiltration Studies End date Q4 2009 Support to DWAF and ELM End date Q1 2011 Long term Technical feasibility study End date Q3 2009 Section 78 study End date Q2 2010 Environmental Impact Analysis End date Q4 2010 Administrative Milestones SLA with C.o.J. End date Q1 2010 SLA with Rand water Q1 2010 Procurement processes End date Q1 2011 Construction activities Start date Q2 2011 End date Q4 2015

8.  Long term Solution – Arcus Gibb Consulting Engineers –Appointed by Emfuleni Local Municipality  Delivered items ◦ Arcus Gibb was appointed to do the feasibility study for along term solution for the SRSS ◦ The technical feasibility study was completed in June 2009but has not been approved ◦ The section 78(1) and (2) was completed in February 2009 ◦ Site selection report and high level flows was only approvedby the ELM in September 2009. ◦ The EIA process started after the site selection report

9.  Long term Solution – Arcus Gibb Consulting Engineers –Appointed by Emfuleni Local Municipality  Outstanding items The financial feasibility of the project was presented by Kagiso to National Treasury in draft however the final documents needto be completed

10.  interim measures and the O&M of the infrastructure : Aureconwas appointed by DWAE to assist ELM.  Delivered items ◦ Rietspruit WCW projects list / contracts produced. Advertisedand tenders/quotations were received by Metsi-a-Lekoa.Some contractors appointed, others will be appointed soon. ◦ Aurecon also assisted with the compilation of an SLAbetween CoJ and ELM. SLA presently with the ELM legaldepartment

11.  Interim measures and the O&M of the infrastructure : Aureconwas appointed by DWAE to assist ELM.  Outstanding items ◦ Infiltration study on the existing reticulation not complete duemaintenance problems on the reticulation and the excessiverains

12. ChallengePMO InterventionPMO ActivityProvincial InputCouncil Input 1. Incapacity to operate plants Rand Water O&M Agreement Legal support to compile agreements Ensure that necessary contracts are signed O&M funding 2. Non compliance of plants Priority project identified Rand Water agreement to implement projects Emergency procurement Implement Rand Water Agreement Approval of MIG Projects 3. Litigation by Minister and interested groups against Emfuleni Provision of Legal support Acceleration of key projects 4. Institutional capacity Establish an autonomous ME Training Strengthening Council oversight over projects Submission of Ring fencing proposal to DLG&H RW Capacity building programme Weekly Section 79 Committee

13. ChallengePMO InterventionPMO ActivityProvincial Input Council Input 5. SLA between CoJ and Emfuleni Address CoJ non payments Finalise SLA Quantify capital and operation commitments Meeting between parties Input to budgetary cycle 6. Process to implement Long term solution Feasibility study completion EIA process Section 78 process Letter of non performance issued to Arcus Gibb EIA approvals 7. Implementation of capacity enhancing projects Coordinate the various expansion plans of CoJ, Emfuleni, Midvaal Quantify impact of DLG&H pending developments in the South Quantity capital contributions by each party Identify alternative efficiency remediators Integrate funding and plans

14. ChallengePMO InterventionPMO ActivityProvincial InputCouncil Input 8. Delayed approval of the Site Selection Report 9. Payment made on outstanding items on the section 78(3) study Execute a payment recon with ELM Ensure aligned in the next payment by ELM 10. Outstanding section 78 (3) Follow up with ELM on the letter of demand Request a meeting with ELM 11. Infiltration study will go into the rainy season that could distort the results of the study. Request an updated crushed plan from Eurocon

15. ChallengePMO Interventio n PMO ActivityProvincia l Input Council Input 12. The SLA between CoJ and ELM that has not been signed delays the process of payment from CoJ to ELM Identify issues causing the delay Raise it as an item in the next progress meeting with the ELM and Eurocon 13. ELM must notify DWA in writing of the situation to enable DWA to notify Aurecon to speed up the performance on progress Facilitate with ELM the letter to DWA Raise it as an item but also draft a letter on behalf of ELM 14. Increasing the capacity at the Sebokeng WCW with the first 50 Ml/d to accommodate City of Johannesburg and Midvaal LM requirements. These costs will be R500 million 15. Align medium-term capacity requirements at the Sebokeng WCW in anticipation of the decommissioning of the Ennerdale WCW by CoJ.

16. THESE ARE CRITICAL RISKS THAT MUST BE ADDRESSEDTO MEET IMMEDIATE REGIONAL AND LOCALDEVELOPMENTAL NEEDS

17. RiskResponsible party Mitigation strategy 1. Doornkuil Township development in Midvaal with 18500 stands at projected additional 12 Ml/d capacity requirement at Sebokeng WCW 2. Development of 6600 stands in Uitvlucht, Risiville and MacKay on the eastern side of Emfuleni draining to Leeukuil WCW with projected additional 4,3Ml/d treatment capacity requirement 3. Moratorium on developments in Emfuleni to the value of R 3,6 billion that cannot be approved before the infrastructure is upgraded. 4. Determining pending developments in South from CoJ and DLG&H

18. RiskResponsible partyMitigation strategy 5. Potential objections to the EIA and section 78 processes relating to the planned regional scheme 6. Finalizing SLA between Joburg Water and Emfuleni and outstanding payments 7. Escalating Court case costs against Emfuleni for WCW’s non compliance, may impact on regional sewer scheme programme 8. Determining and negotiating capital contributions with affected parties (CoJ, Midvaal LM, DLG&H, Emfuleni LM and Private Developers).

19.  Implement the proposed short-term interim measures as wellas components of the long-term scheme  Reduce flows by means of a water conservation and demandmanagement programmes  Increase treatment capacity by installing temporarytreatment facilities and the use of remediators andmodifications to the existing WCW’s  The projected future flows in the Region should be re-evaluated against actual developments and confirmedprojects that have materialised over the past year

20.  The current capacity of the existing WCW’s as well as possiblemodifications to enhance their capacity in the short-termneeds to be investigated  The DWA should be approached to negotiate revised licencesfor all the WCW’s – that will take into account the situationthat will exist until the new works have been commissioned  The sources of high organic loads are identified andmonitored in order to reduce the load discharged into thesanitation system

21.  For the implementation of the Interim Measures the needarose for support to Emfuleni Local Municipality.  Aurecon will assist with the project management of thecapital expenditure, according to the DWA appointment.  Rand Water to assist with the implementation of theseprojects, on the Interim Measures  Rand Water to assist with expert advise for O&M to attainregulatory compliance

22.  Rand Water to do O&M on WCW’s using existing staff as wellas transfer of skills to the existing personnel.  Rand Water agreement only for the period until the LongTerm Solution is implemented or upon attainment ofcompliance at WCWs.  DWA utilizing Regional Bulk Infrastructure Grant to providefunding support.  DLG&H and Treasury providing project management,feasibility studies, transaction advisory support and oversight

23.  The following table highlights the funding for theinterim projects

24.  The estimated cost of the whole project is R3b.  To date no source of funds has been established howeverthe following approach is proposed by Emfuleni LM ◦ DWA funding – Emfuleni would like DWA to fund R30m per annumfor three years to support the interim measures ◦ MIG funding – Emfuleni would like MIG to fund R100m per year forthree years for the short term interventions ◦ Rand Water funding – Emfuleni would like the support of all partiesto appoint Rand Water to provide R1b in funding for the mediumterm interventions  Emfuleni LM strongly believes that these interventionscan defer the construction of the full scheme for a further10 years

25. Thank You