1. 1 2010 World Cup Readiness Presentation to the Joint Committee 19 May 2010

2. CONTENTS Liquid Fuels Key Constraints Identified and Operational Plans per Airport Electricity Grid Supply Precinct supply 2

3. LIQUID FUEL 3

4. NATIONAL SUPPLY AND DEMAND Consolidated supply plans for all fuels (petrol, diesel and jet fuel) indicate that nationally adequate fuel will be supplied to meet demand Oil industry will also maintain contingency stocks at their refineries which will be available to supply the market in the case of a supply disruption Operational plans have been put in place at all airports where constraints were identified 4

5. OPERATIONAL PLANS AT ORTIA OPERATIONAL PLANPROGRESS STORAGE Construction and commissioning of two new tanksComplete Tanks have now also been connected directly to hydrants Pre-filling of 2 new tanks optimal capacityInitial pre-fill proceeded successfully Tanks will be at optimal capacity on 1 June 32 full Rail Tank Cars will always be available at ORTIA in case of low stock levels Additional Rail Tank Cars have already been added to the fleet This will be implemented between 1 June to 31 July IMPROVEMENT OF TURNAROUND TIME FOR CERTIFICATION OF JET FUEL In order to improve turnaround times of certification of Jet Fuel from DJP, certification will take place at an Inland refinery instead of the coastal refineries 1 June to 31 August 5

6. OPERATIONAL PLANS AT ORTIA OPERATIONAL PLANPROGRESS IMPROVEMENT OF COORDINATION Daily demand and stock forecast which look forward 6 weeks instead of the normal 1 week window has been implemented. This will also be used for daily monitoring during the tournament In progress The granting of the exemption to the oil industry by the Competitions Commission has allows for industry forums which enable joint and coordinated planning to resume during the period of the World Cup The Logistics Planning Committee has been established to deal with daily/routine monitoring as well as to manage emergency situations Other industry forums that are necessary for effective planning are also currently taking place Routine to start in June Emergency currently in place for Transnet Strike 6

7. OPERATIONAL PLANS AT ORTIA OPERATIONAL PLANTIMEFRAME OPTIMISE USE OF LOGISTICS The pipeline from the inland refinery will be operating at maximum capacity to ensure most effective use of inland pipeline infrastructure 1 June to 31 July Additional rail deliveries will also take place from Matola to ensure increased supply to the airport (1 block train per week) 8 June to 15 July Addition of Rail Tank Cars to the current fleet means that 2 block train deliveries instead of 1 can be made to the airport per day. This will increase supply to the airport by approximately 50%. Complete Coastal companies have also increased their loading capability to ensure that they will be able to load 2 adequate fuel to make up the 2 block trains In progress Airport operator will also increase rail offloading capability at ORTIA to ensure they can offload two block trains per day Will be implemented between 1 June to 31 July 7

8. IMPACT OF TRANSNET STRIKE Products –Jet fuel least impacted as it continues to be prioritised. Contingency measures have been put in place to minimise the impact of the strike on the supply of jet fuel –Petrol and Diesel supply constrained in certain areas –LPG –Paraffin Logistics –The strike is causing challenges with regards to the ability to distribute product to the market –In certain cases logistics operating sub-optimally –For most areas the problems are not insurmountable 8

9. IMPACT OF TRANSNET STRIKE Transnet is working cooperatively with the oil industry to ensure that contingency measures are executed to ensure critical supply is maintained Most of the industry participants have given the Department assurance that despite the strike, they are still ready to supply during the World Cup and that all plans which have been made to date still stand. 9

10. ELECTRICITY 10

11. ELECTRICITY. Grid Supply: (area covered) –General Host City lighting ( incl street lights). –Hotels, Team, Base-camps, PVA. –Stadium Supply (firm supply) Precinct Supply: (area covered) –Floodlights –Broadcast Camp –Domestic Load

12. GRID SUPPLY: STATUS OF PROJECTS HOST CITYPROJECTPROJECT SCOPE Nelson Mandela Mount Road substation Project completed and energized eThekwiniOld Fort substation Project completed and energized City of Cape Town Mouille Point substation Project completed and energized City of Johannesburg Crown substation Project completed and energized MangaungWillows substation Project completed and energized

13. GRID SUPPLY: STATUS OF PROJECTS HOST CITYPROJECTPROJECT SCOPE PolokwaneBeta substationProject completed and energized Mbombela Mataffin substation. Construction 90% Commissioning 75% [Completed by 31 May 2010 ] City of Tshwane Skinner 132kV line Project completed and energized Rustenburg Waterkloof substation. Construction at 85% Commissioning 0% [ Change in the original plan to meet the June]

14. RISK: Rustenburg  Construction of feeder lines has been completed.  Installation of cables has been completed.  Installation of switchgear at Waterkloof substation in progress.  Plans to install feeder line to the substation are currently underway

15. Rustenburg Areas at risk –Grid Supply: General Host City lighting ( incl street lights). Hotels, Team, Base-camps, PVA. Alternative Plan –Original Plan  supply from Eskom substation. –Alternative  supply from another neighbouring substation. –Alternative supply to be completed by end May 2010 to ensure security of supply for Rustenburg.

16. RISK: Mbombela  Construction of the substation has been completed (100%) and the substation is energized and already supplying the stadium.  The alternative feeder that will act as backup supply is currently in progress and will be completed by 31 May 2010.  The 75% progress to date represents the total project including construction of the backup supply. All poles installed and cable stringing is at 75%.  The total progress is broken down as: o Substation - 100% (Energized and operational) o 132kV Alternative (backup) feeder line - 75%

17. PRECINT SUPPLY

18. Ten stadiums in total Each venue: (area covered) LOADGRID/ GENERATORRESPONSIBILITY FLOOLIGHTSDIESEL GEN  UPS  GRID STADIUM OWNER BROADCASTDIESEL GENERATORSLOC DOMESTICGRID  GENLOC PRECINCT SUPPLY: STATUS OF PROJECTS

19. All the precinct project have been report by LOC and Stadiums as complete. Department is undertaking site visits to audit the precinct readiness in terms of FIFA specifications.

20. CONCLUSIONS Grid Supply: –7 out of 9 grid projects completed Mbombela to be completed by end May 2010. Rustenburg to commission the alternative plan by end May 2010. Precinct Supply: –All precinct supply to reported to be completed as of 15 May 2010. –DoE to do site visit to confirm before end May 2010.

21. THANK YOU 21