1. Presentation to the Portfolio Committee: Water & Environment State of water infrastructure Presentation by Dr C Ruiters Deputy Director-General: Water Resources Infrastructure 26 - 27 January 2011

2. Presentation overview 1.Background 2.Macro Planning: Integrated Water Resources Planning 3.Infrastructure Developments 4.Condition of existing infrastructure 5.Dam Safety Rehabilitation and Refurbishment Programme (DSRP) 6.Strategy on Access to Water for Basic use from Dams 7.Regional Bulk Infrastructure 2

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4. 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 4

5. 3. Infrastructure Development

6. 1. Schemes completed since 2004 6 SchemeProvinceYear Completed Cost (R million) 1. Mooi –Mgeni TransferKZN2004100 2. Xikundu weir and WTWLimpopo2005315 3. Morgenston Jericho PumpstationMpumalanga200528 4. Nandoni DamLimpopo2005574 5. Raising Flag Boshielo DamLimpopo2006235 6. Berg Water ProjectWestern Cape20082500 7. VRESAP pipelineGP and MP20102600 8. Nandoni WTWLimpopo2008295 TOTAL6647

7. Major water resource infrastructure development projects 7 Durban Cape Town 461 7 2 4 6 3 5 1 HAZELMERE DAM - 10 million m 3 of water for domestic use CLANWILLIAM DAM - 70 million m 3 of water for existing and new irrigation farmers - Direct Jobs: 678 VAAL RIVER EASTERN SUB SYSTEM AUGMENTATION PROJECT - 96 million m 3 of water for ESKOM and 64 million m 3 of water for SASOL MOKOLO AND CROCODILE RIVER (WEST) AUGMENTATION PROJECT - 7 million m3 water for ESKOM (Medupi PS) and 5 million m 3 water for domestic use - Direct Jobs: 250 MOOI MNGENI TRANSFER SCHEME (PHASE 2) - 60 million m 3 of water for domestic use - Direct Jobs: 450 KOMATI WATER SYSTEM AUGMENTATION PROJECT - 54 million m 3 of water for ESKOM -- Direct Jobs: 466 OLIFANTS RIVER WATER RESOURCES DEVELOPMENT PROJECT (de Hoop) - 40 million m 3 of water for domestic use and 40 million m 3 water for mining - Direct Jobs: 800

8. Augmentation projects (1) ProjectProvince; completion date BeneficiariesTotal 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 2,00,5 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 2,72,7 ( 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 Prepare design and award tender for supply of crest gates 8

9. ProjectProvince; completion date BeneficiariesTotal 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 1,9940,139 1,855 Commence with design Komati Water Scheme Augmentation Project Mpumalanga 2013 All citizens via Eskom1,7360 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 1,6670 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) 9

10. 10 STRYDPOORT MOUNTAINS BURGERSFORT EPSS DE HOOP DAM STEELPOORT TOWN MOTOTOLO MOKOPANE POLOKWANE LEBOWAKGOMO JANE FURSE Flag 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

11. 11 5. Existing Infrastructure

12. 12 Summary of extent and value of immoveable assets controlled by the Department (Mar 2010 – R million) Asset ClassExtentAsset ValueCarrying Value (prelim) TotalUnitCurrent Replacement cost Depreciated Replacement cost Buildings2 572Number2 301898803 Canals8 036km29 07310 7739 339 Dams and weirs359Number72 00236 38331 512 Measuring Facilities3 011Number7 3812 9972 604 Pipelines1 063km8 0443 2992 892 Pump stations57Number1 673818713 Reservoirs51Number631264229 Treatment works62Number692522 Tunnels171km18 3547 7506 716 Other77Number853429 Sub-total (infrastructure)139 61263 24154 859 State owned land344 768Ha6 643 Servitudes52 595Ha1 633 TOTAL147 88871 51763 135 12

13. 5.1 Age Profile of Assets 13

14. 14 5.2 Age profile of assets

15. 5.3 Remaining Useful Life 15 RUL profile with capital renewal values

16. 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

17. 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% 17

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19. Progress Total Expenditure till Sept 2010: R1 200m Dams on programme: 58 19

20. 20 6. Strategy on Access to Water for Basic use from Dams

21. 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. 21

22. 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. 22

23. 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. 23

24. Dams Identified by DWA 24 Central OperationsNorthern OperationsSouthern OperationsEastern 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 24

25. Overview of Approach Followed 25

26. Approach Phase 1 : Determine Location of Dams and Communities Phase 2 : Consultations with Relevant WSA’s Phase 3: Identify Possible Infrastructure Solutions Phase 4: Financial and Time Implications for Proposed Infrastructure per Dam Phase 5: Institutional Issues 26

27. 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. 27

28. Regional Bulk Infrastructure 28

29. 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. 29 1- Overview Strategic purpose

30. Objectives of Programme a.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. 30

31. 31 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. 31

32. 32 Projects completed 2007/08 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 32

33. 33 Projects completed (continue) 2010/11 Mthatha Bulk Water Intervention Malangeni Waste Water Treatment Plant Greytown BWS Mbombela Water Supply Hoxani BWS Kenhardt BWS 33

34. Budget allocated categories 1.85%-90% for project implementation 2.10%-15% for feasibility studies and Implementation Ready studies 3.R 20 –R 30 million for project and programme management 34

35. 35 Previous financial years 2007/08 and 2008/09 2007/08R 300.0 million 2008/09R 443.4 million 2009/10R 618.2 million 2010/11 MTEF Allocation 2010/11R 893.0 million 2011/12R 1 675.3 million 2012/13R 1 849.1 million 35 Budget allocation

36. 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 36

37. 37 2010 MTEF allocations (old)

38. New MTEF 2011 2011/12 MTEF Allocation 11/12R 1 775.3 m increase by R 100 m 12/13R 2 233.1 m increase by R 384 m 13/14R 2 418.8 m increase by R 468 m TotalR 6 427.2 million There is an increase of approximately R 952 million 38

39. Comparison: backlog and RBIG funding 39 Housing and water scarcity sanitation and water scarcity Urban –metro areas given less priority

40. 4 Alignment / Transparency 1.CoGTA requires DWA to align RBIG with needs and all water related projects 2.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, p6 Problems 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… 40

41. Alignment 1.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. 41

42. Alignment with other programmes The 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 42

43. Successes 1.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) 43

44. Regional Bulk Expenditure 20 January 2011 44

45. 45 With invoices not yet processes R 490 m. 6: Expenditure

46. New project management priorities 1.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 46

47. 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 47

48. 48 THANK YOU