WS Infrastructure Programme Quarterly Workshop Eastern Cape Presented by: Asanda Gidana, Lungiswa Radebe & Martin Labuschagne Programme Manager Eastern Cape Date: 31 October 2013

WS Infrastructure Program: Quarterly Workshop Contents A: Expenditure Status 2013/14 RBIG MWIG ACIP NTP B: Key Challenges C: Feedback on letter sent on 9 September 2013 D: Project to be “Fast Track” E: Projects to be Launched F: Way forward

A1. RBIG : Expenditure 2013/14

A1. RBIG : Expenditure 2013/14 (cont…)

A1. RBIG : Expenditure 2013/14 (cont…)

A2. MWIG: Expenditure 2013/14

A3. ACIP : Expenditure 2013/14 WCDM cont… Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Buffalo City Metro Municipality- WCDM R2m R1,933m (97 %) Implementation in progress Chris Hani DM –Installation of flow meters & pressure reducing valves R4.2m R2 m R1 m to Ikwezi LM WCDM (water metering) No movement i.t.o expenditur-e even though Municipality has committed to have done some work Amathole DM (Leak repairs & Comm Awareness) R500,000 More funds required Amathole DM (Mhlahlane –DM Commitment ) R400,000 R400,000 to ADM Leak repairs & Comm Awareness (NkonkobeLM) Funding shortfall

A3 : ACIP Expenditure 2013/14 WCDM cont… Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Camdeboo LM-borehole metering and installed monitoring system in Aberdeen t R1 m R684,000 (68 %) R25,000 R684,000 Implementation in progress Alfred Nzo DM -trained barefoot plumbers busy doing a meter audit and leak detection, also repairing leaks R329,000 (33%) R250,000 R579,000 Implement-ation in progress

A3. ACIP : Expenditure 2013/14 WCDM cont…. Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Kouga LM-Repairing leaking reservoirs and Kruisfontein rising main in Humansdorp R1 m R222,236.24 (22%) R153,082.56 R285,320 Implementation in progress Blue Crane Route LM -Repaired reservoirs and replaced old infrastructure, borehole monitoring equipment and installed Chlorinator R2.266 m R875,168.92 (39%) R255,000 R603,537

A3. ACIP : Expenditure 2013/14 WCDM cont… Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Joe Gqabi WCDM R1 m R316,007.71 Implementation in progress Makana LM - WCDM R2 m R736,034.76 (37%) R406,259.00 R1,032,498 Implement-ation in progress Ikwezi LM -Water Crisis Intervention R3.2 m R1,306,719 (65%)

A3. ACIP : Expenditure 2013/14 -WWTW Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Buffalo City Metro Municipality-East Bank WWTW R1 m R1 m (100%) Constructi-on in progress Sterkspruit WWTW (Joe Gqabi) R5.70 m R4,027,010 (71%) R1,340,562.37 R4,811,134.62 Construction in progress Blue Crane Route LM – upgrade of Somerset East WWTW R10 m R2,223,131.87 (22%) R1.4 m R2,522,401 Engcobo WWTW Refurbishment (CHDM) R1.2 m R28,625.00 (2%) R34,593.00 R68,524.83

A3. ACIP : Expenditure 2013/14 –WWTW cont… Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement Implementation / Construction in Progress Molteno WWTW- Raw Sewage Pump Stations Refurbishment R1.250 m R409,743 (33%) R332,310 R835,548 Construction in progress Matatiele WWTW Refurbishment (Alfred Nzo DM) R1.190 m R163,912 Construction has just started Ndlambe Refurbishment of Ndlambe Sewer Pump Stations R1.750 m R85,500 R85,000 Construction to start Sterkstroom WWTW –Phase 2 (Chris Hani DM) R3 m R796,286 R39,141.90 R768,811

A4: NTP – Expenditure 2013/14 Total AMATHOLE DISTRICT MUNICIPALITY Ngcingwane 1 034 386 1 034 386 0 0 in progress Bangweni 949 000 949 000 0 0 in progress Mangathi 729 512 729 512 0 0 progress Ntlambodaka 868 820 868 820 0 0 in progress Munyu 377 363 377 363 0 0 Complete Mqonci 199 670 199 670 0 0 Complete Mangqosinini 814 000 814 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

A4: NTP – Expenditure 2013/14 Total Ngcisininde 1 027 249 1 027 249 0 0 in progress 3 * Zagwityi 0 0 0 0 complete 6 000 000 6 00 00 1 360 650 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

A4: NTP – Expenditure 2013/14 CHRIS HANI DISTRICT MUNICIPALITY Total Sterkstroom 3 000 000 3 000 000 0 0 0 in progress WTW Cala WTW 5 000 000 5 000 000 0 0 0 progress Nkobongo 2 000 000 2 000 000 0 0 0 in progress 10 000 000 10 000 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

A4: NTP – Expenditure 2013/14 ALFRED NZO DISTRICT MUNICIPALITY Total Belfort BWS 7 000 000 7 000 000 0 0 2 853 630 5 000 000 non spending in progress KwaBhaca SL 8 000 000 8 000 000 0 0 2 571 896 5 000 000 non spending in progress BWS 15 000 000 15 000 000 10 000 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

A4: NTP – Expenditure 2013/14 JOE GQABI DISTRICT MUNICIPALITY Total Cleaning of 4 472 000 4 472 000 0 0 0 in progress leaking reservoir Jozana neck 2 445 000 2 445 000 0 0 0 in progress Package plant Sterkspruit 1 400 000 1 400 000 0 0 0 in progress Reservoir Accomodation 450 000 450 000 0 0 0 in progress Of Hershel pumpstation 1 500 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

A4: NTP – Expenditure 2013/14 JOE GQABI DISTRICT MUNICIPALITY Cleaning of 4 472 000 4 472 000 0 0 0 in progress leaking reservoir Jozana neck 2 445 000 2 445 000 0 0 0 in progress Package plant Sterkspruit 1 400 000 1 400 000 0 0 0 in progress Reservoir Accomodation 450 000 450 000 0 0 0 in progress Of Hershel pumpstation 1 500 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress

A4: NTP – Expenditure 2013/14 O R TAMBO DISTRICT MUNICIPALITY Mvimvane 1,203,500.00 1 203 500.00 0 0 2 000 000 0 0 Tender Qaukeni Farm 1,359,356.00 1 359 356.00 0 0 0 Tender Sithebe 414,700.00 414 700.00 0 0 0 0 Tender Bomvu 941,700.00 941 700 .00 0 0 0 0 Tender Msana 399,740.00 399 740.00 0 0 0 0 Tender Tshisana 934,900.00 934 900.00 0 0 0 0 Tender Ezinkumbini 77,888.00 77 888.00 0 0 0 0 Tender Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress

A4: NTP – Expenditure 2013/14 Total O R TAMBO DISTRICT MUNICIPALITY Mangwaneni 1209 348.00 1 209 348.00 0 0 0 0 Tender Nyandeni 1 265 189.60 1 265 189.60 0 0 0 0 Tender Zandukwana 676 500.00 675 500.00 0 0 0 0 Tender Mantusini 1 417 178.40 1 417 178.40 0 0 0 0 Tender 10 000 000 10 000 000 2 000 000 Scheme Project Cost DWA Commitment Budget Allocation 2013/14 BAS Expenditure 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocations 2013/14 Reason for Re-allocation/ Movement Implementation/ Construction Progress Total

B: Key Challenges RBIG Implementing Agent Lack of Required/Expected Capacity by other WBs. Non-compliance of WBs with Implementing Agent Fees, as per Departmental Delegations. Contractors Incompetent Contractors appointed in some projects. Lack of Financial Capacity and cashflow management by some contractors Approval of Feasibility/ IRS Delays in approval process of projects as study phase. IA Agreements Lack of common understanding of certain clauses within the standard agreements. Lack of ESKOM power supply by project Negative effect on project programming, as a result of ESKOM delays

B: Key Challenges MWIG Delays in appointment of service providers due to WSAs’ SCM processes. Lack of progress and expenditure by most WSAs. Some WSAs want to change Business Plans due to communities refusing the level of service i.e. demanding water reticulation (standpipes) instead of water tanks. WSAs wanting to shift funds in between projects. NTP Procurement processes by the municipalities take very long, so the projects implementation starts very late.

B: Key Challenges ACIP The main challenge in all municipalities is proper metering of BULK, ZONE and DOMESTIC METERING This makes the determination of water losses and water savings basically impossible!!!!! Technical and Finance sections not working together aggravates the problem!!! Meter readings atrocious in most municipalities!! Region understaffed in WCDM section!!!!! Technical Sections of the WSAs often have high vacancy rate and incompetent staff. Lack of proper leaderships within WSAs WCDM not prioritised or given necessary attention, i.t.o. Resourcing. High staff turnover.

B: Key Challenges ACIP Inefficiency of procurement processes within WSAs Protests resulting into VANDALISM (e.g BLUE CRANE ROUTE MUNICIPALITY)

C: Feedback on letter sent on 9 September 2013 Provincial Planning Committees EC Planning Committee in place (to be expanded to include ACIP, MWIG &NTP); meets quarterly Revised ToR distributed to ECPC members on 31 July 2013 – adoption to be finalized Chairperson of ECPC is the DWA RPM:RBIG ECPC in place since 22 July 2011 Budget re-allocation & acceleration plans for RBIG & ACIP AP 2.1: Revised again in October 2013 for adjustments AP 2.2: Funds to be moved from slow-moving projects to fast-moving projects, whilst attending to slow projects’ barriers. Acceleration/ recovery plans were developed and submitted early October 2013. Regular update to be submitted as and when required.

C: Feedback on letter sent on 9 September 2013 (2) Preparing for Audits AP 3.1 – AP 3.3: Busy sorting out project files for Audit Readiness, however the absence of administrative support is posing a limitation towards the expected outcomes, within the stipulated timeframes. Target date: 15/12. Transferring of assets & assessment of completed projects AP 4.1: It is the understanding of the RO that Asset Mngt (NO) is already dealing with this issue. AP 4.2: Mthatha BW Intervention, Coffee Bay, Tsomo RDP South, Mbhashe BWS & Tsomo RDP2 North- capacity limitations affect this task. Assistance needed.

C: Feedback on letter sent on 9 September 2013 (3) Financial commitment for each project AP 5.1-5.3: Process followed whenever there is a project recommended for implementation or when there is a change in approved scope of work. It is the understanding that a submission should be made to Capex when budget is exceeded by more than 15%. NO need to formalize this in writing Currently working with SCM & Finance to differentiate between a project value and a financial commitment.

C: Feedback on letter sent on 9 September 2013 (4) Performance evaluation of RBIG projects AP 6.1: Training of M&E staff on performance evaluation still outstanding. Performance evaluation currently done by project management office AP 6.2: All performance evaluation reports have been submitted, except ORT: KSD Water and Sanitation (to be submitted on 31/10) Provincial bulk master planning AP 7.1: Person nominated to manage the PBMP: Mr M. Vonco and Mrs A. Gidana ACIP guidelines Indicate whether ACIP document was circulated to any external stakeholders; also whether any comments were provided on the document

D: Projects to “Fast Track” RBIG Greater Mbizana RBWS Ndlambe BWS KSD PI James Kleynhans BWS

D: Projects to “Fast Track” ACIP The only WCDM not doing well is CHRIS HANI DM. They had a dispute with the DWA on the fact that their allocation was reduced from R4M to R2M. A reply had been sent to the DM in July 2013 after which it took long for the DM to reply. A Business Plan to do awareness and assessment of Waterdown pipeline was only received on October. The DM is of the opinion that they will be able to spend the funding before the end of the financial year! COMMUNICATION ON HIGH LEVEL NEEDED!!!!!

E: Projects to be Launched RBIG Coffee Bay Water Supply Scheme IKWEZI - ACIP The DWA initially sent a letter to Ikwezi DM indicating that R1M is available for WCDM, however the DM was in dire need for water resources to be developed. The funding was thus used for the drilling of boreholes and to equip them. However it was mentioned last week that R1M is still available for WCDM Due to short time meters will be bought since very little metering has been done in Ikwezi which is a huge problem!

MUN REGION HEAD OFFICE TREASURY WE NEED FUNDING EISH!!

HEAD OFFICE REGION ADEQUATELY STAFFED TREASURY HEAD OFFICE REGION ADEQUATELY STAFFED ADEQUATELY CAPACITATED, WELL FUNCTIONING MUNICIPALITY WE WANT TOP UP FUNDING ONTO REVENUE

IMESA: Key Challenges

F: Way forward A new way of funding projects should be considered since all municipalities are crying for funding but do not have sufficient technical staff to properly implement projects. It is a problem every year, especially where there are no consultants to assist them! Pressure then gets put on understaffed regional personnel to ensure performance and spending! DWA HQ and the Region should have meetings on high level to ensure that the municipality has the ability to implement projects worth millions of rands!!!!! Otherwise DWA must do the implementation for them!!

F: Way forward EXTERNAL ASSISTANCE, PSP’s, RRU, WATER BOARDS, OLD BULL SYSTEM??? LET US STOP THROWING MONEY AT OUR PROBLEMS AND FIRTST SOLVE THE PROBLEM LET US FIRST GET THE CAPACITY RIGHT AT THE MUNICIPALITIES PEOPLE WANT SERVICES NOT PROJECTS!

F: Way forward A new way of funding projects should be considered since all municipalities are crying for funding but do not have sufficient technical staff to properly implement projects. It is a problem every year, especially where there are no consultants to assist them! Pressure then gets put on understaffed regional personnel to ensure performance and spending! DWA HQ and the Region should have meetings on high level to ensure that the municipality has the ability to implement projects worth millions of rands!!!!! Otherwise DWA must do the implementation for them!!

SOMETHING’S WRONG!!!