1. STANDING COMMITTEE ON APPROPRIATIONS Water Trading Entity 1 Briefing on the 4 th Quarter Expenditure Report for the Financial Year 2011/12

2. 222 CONTENTS 1.Purpose 2.4 th Quarter Expenditure Report for the Financial Year 2011/12 3.Challenges and Achievements 4.Budget Allocation 2012/13

3. 333 PURPOSE To provide a brief overview of the 4 th Quarter performance, challenges and achievements for the Financial Year 2011/12.

4. 4 th Quarter Expenditure Report for the Financial Year 2011/12

5. 555 NWRI AUGMENTATION FUNDED PROJECTS (including Support) AS AT 31.12.2012 Project Name Adjusted Annual budget Actual Expenditure Under/(Over) Expenditure %Comments R 000 NWRI Support 125 540 125 339 201100% Financial Management 126 186 126 080 106100% ORWRDP2A (De Hoop Dam) 506 222 506 170 52100% The expenditure for the De Hoop Dam construction which went according to plan ORWRDP BDS 450 067 -100% An amount of R375 million was paid to TCTA for ORWRDP BDS ( Sub Phase 2C planning, design and the accompanying work as per the MOA and invoice.) Nandoni Dam 400 218 18255% Dam Safety Rehabilitation Programme (DSRP) 262 677 262 591 86100% Clanwilliam Dam Raising 8 622 -100% Funds were transferred to the SANRAL for the road deviation. Must happen before breaking ground MCWAP-1 257 047 -100% The amount of R15 million was paid per invoices from TCTA. GLeWAP Phases 2 and 3 (Tzaneen Dam Raising & Nwamitwa Dam) - - -0% Hazelmere Dam Raising 3 622 -100% The preparatory and pre-implementation studies were done for this project. SAP 47 181 -100% Subtotal 1 787 564 1 786 937 627100% VAT 250 259 250 171 88100% TOTAL 2 037 823 2 037 108 715100% Programme 3 Actual Expenditure as at 31 March 2012

6. Challenges and Achievements 2011/12

7. 777 De Hoop Dam Construction 1.On the Olifants River Water Resources Development Projects (ORWRDP) the realigned R555 road was handed over to the Limpopo Road Agency Limited for operation and maintenance as the custodian of provincial roads. 2.The entire dam foundation is now covered with concrete, while the concrete in the river section is above the old R555 level. 3.The placement procedures were refined and the contractor broke the South African record by placing 103 000 m 3 of concrete in a single month. More than a 1 000 persons were employed at the peak of construction. ORWRDP (Bulk Distribution System) 1.The Olifants River Water Resources Development Project (Phase 2) Bulk Distribution System (ORWRDP-2 BDS) is at a Detail Design & Construction Phase. 2.The water delivery milestone for Phases 2C & 2H is scheduled for December 2013.

8. 888... Continuing 3. The implementation of the remaining project phases -Phases 2D, 2B, 2F and 2G- depends on the availability of funding. Project completion is likely to extend to end 2015. 4. TCTA has received a revised Directive which limits TCTA to implementing Phase 2C. 5. The evaluation exercise on the communal land along the first 10km of Phase 2C has been done. 6. The reporting on the performance of Socio-Economic Development targets will be done once construction commences. 7. A facilitation process is being implemented between government and the mines to investigate the most viable implementation plan for the other sub- phases of the ORWRDP-2 BDS.

9. 9 Mokolo and Crocodile River (West) Water Augmentation Project (Phase 1) (MCWAP Phase 1) 1.The MCWAP Phase 1 is at a Construction Phase, which commenced in September 2011. 2.The existing Mokolo water infrastructure operated by Exxaro has been acquired by TCTA for incorporation into the new government water work. 3.The contractor has completed the site establishment activities and the main construction activities have started, the first pipes were laid in March 2012. 4.The remaining two loans will become effective once DWA has issued the “stipulati” letters required by the funders. 5.The first pipes were to be placed in March 2012, which is approximately 6 weeks behind programme. Pipe manufacturing proceeded and the deliveries to site have commenced. The works are being closely monitored. 6.The environmental baseline studies have been completed. The Environmental Control Officer is monitoring TCTA’s implementation of the project against the approved Environmental Management Plans.

10. 10 Mooi Mngeni Transfer Scheme (MMTS) Phase 2 1.The Mooi-Mgeni Transfer Scheme (Phase 2) (MMTS-2) is at the Construction Phase, which commenced in February 2011 2.Funding agreements were concluded and executed on 16 May 2011 with the EIB, AFD and KFW. 3.Most of the conditions precedents to drawdown have been fulfilled. TCTA is awaiting confirmation from the lenders on that all conditions to drawdown have been fulfilled. The inter-creditor agreement and the Security Cession between the funders have also been signed and executed. 4.The revolving credit facility agreement was signed on 16 May 2011 with DBSA. A disbursement request to the value of R250 million was submitted to DBSA on 5 March 2012 and the finalisation of the matter is in progress. 5.A restriction by the Department of Environmental Affairs (DEA) on the number of trucks of a maximum of 30 per day allowed to transport crushed stone from the quarry in Pietermaritzburg to site has been lifted. 6.The impoundment of water in the dam is planned for December 2012 with water delivery milestone in April 2013.

11. BUDGET ALLOCATION FOR AUGMENTATION-FUNDED PROJECTS (2012/13)

12. 12 PROGRAMME 3 BUDGET 2012/13 Programme 3 TOTAL Augmentation R 2.3 billion ( Vat inclusive) TOTAL AUGMENTATION NWRI R1.9 billion Projects R1.33 billion Support R367 million NWRI VAT R237 million TOTAL OTHER AUGMENTATION R339 million ( Vat inclusive) Water Resource Management R159 million KOBWA R180 million

13. 13 PROJECT NAME Total Project Budget Project cost to date ENE Comments 2012/132013/142014/15 R'000 ORWRDP (Ph 2A) - De Hoop Dam 3,074,000 2,719,584 284,52743,368 -Completion December 2012 -Build houses for affected families -Finalizing construction activities around the Dam ORWRDP BDS - Bulk distribution (Sub Phases 2C and 2D) 2,585,000658,111300,092684,942703,954 -Completion March 2014 -Installation of pipes -Cash flow challenges, current financial year R1.2 billion is required. GLeWAP Phase 1 (Nwamitwa Dam and Tzaneen Dam) 1,325,00059,491233,471212,015 -Completion March 2018 -Site establishment -Raising of Tzaneen Dam Dam Safety Rehabilitation Programme2,800,0001,582,470349,820347,762405,000 -Continuous projects -Rehabilitation of dams Water Resources Project Raising of Clanwilliam Dam1,830,0009,82950,849317,956520,056 -Completion May 2017 -N7 re-alignment -Dam wall raising MCWAP-12,138,000435,48887,800103,35993,797 -Completion August 2015 -Construction of a 46 km,1m diameter pipeline -Cash flow must be reprioritised to other projects. -MCWAP-2 to commence to comply with SONA Development Raising of Hazelmere Dam162,0004,12543,10037,80035,088 -Completion September 2014 -The installation of the crest gates -Civil work for safety and stability of dam wall. -Acquisition of additional land in the dam basin Mopani DM Emergency Works220,00070,175-- -Refurbish dilapidated infrastructure ERP system upgrade from version 4.7 to ECC6 205,00050,00070,17587,719- -Completion March 2014 -Upgrade and development of new modules NWRI Support 205,309 216,662 236,753 Financial Management 161,281 155,080 190,465 TOTAL14,564,0005,459,607 1,696,494 2,289,524 2,427,113 VAT 237,509 320,533 339,796 TOTAL 1,934,003 2,610,057 2,766,909 AUGMENTATION FUNDED PROJECTS BUDGET 2012/13 (including support)

14. END