Bulk Water Supply in Limpopo Integrating Infrastructure Delivery towards 2030 Summit Peter Mokaba Stadium 5 and 6 October 2010 A.M. Matukane

Contents Growth Points Water Resources - Dams, Transfers, Ground water ORWRDP, MCWAP, GLEWAP, LRGWS - Description, Purpose, Map, Schedule, Risks and Mitigation Regional Bulk Infrastructure Grant (RBIG) Funding Challenges

Bulk Water Supply in Limpopo Growth Points Polokwane Elias Motswaledi Makhado Lephalale Greater Tubatse Greater Tzaneen Growth Points Phalaborwa Thabazimbi Mogalakwena Marble Hall Musina Lepelle Nkumpi

Bulk Water Supply in Limpopo The growth points in red are, apart from existing supplies, currently not addressed by either Implementation Ready Studies (IRS) or by constructing of a water resource/services project. The other growth points are covered with an IRS or a phase of a regional bulk water project is under construction to alleviate the water problem The water resources and transfer schemes are to support the development of the different growth points in the province.

Bulk Water Supply in Limpopo All Growth Points must have water supply schemes: A water resource – surface and/or groundwater A water treatment plant Pump stations Regional Bulk – from source to and including bulk reservoir Internal Bulk– from bulk reservoir outlet to reticulation connection Reticulation– from internal bulk end to household meter

Bulk Water Supply in Limpopo DWA has constructed many major dams in Limpopo in the past which supply water to people and other users, namely: Nzhelele, Vondo, Damani, Lupepe-Nwanedi in Vhembe Middle Letaba, Ebenezer, Tzaneen, Thabina, Tours, Blydepoort in Mopani Mokolo, Doorndraai, Glen Alpine in Waterberg Houtrivier, Chuene, Molepo in Capricorn Vergelegen, Nkadimeng, Piet Gouws, Flag Boshielo in Sekhukhune

Bulk Water Supply in Limpopo DWA is developing the major dams in Limpopo: Inyaka (now in Mpumalanga) Nandoni in Vhembe District Flag Boshielo Raising, and De Hoop in Sekhukhune District- construction 50% completed Nwamitwa in Mopani District in planning Possible dam in Olifants river under investigation

Bulk Water Supply in Limpopo DWA is planning and developing major water transfer schemes in Limpopo from: Inyaka (now in Mpumalanga) to Acornhoek Nandoni in Vhembe District to Makhado, Matoks, Giyani, etc Flag Boshielo to Pruissen at Mokopane De Hoop in Sekhukhune District to Burgersfort, Tubatse, Lebowakgomo and Polokwane (ORWRDP) Crocodile river to Lephalale (MCWAP) Groblersdal to Moutse West

Bulk Water Supply in Limpopo Major Schemes Olifants River Water Resources Development Project (ORWRDP) Mokolo & Crocodile Water Augmentation Project (MCWAP) Groot Letaba Water Augmentation Project (GLeWAP) Luvuvhu River Government Water Scheme (LRGWS) – Nandoni Distribution Scheme Water Services

1. ORWRDP PHASE 2: DESCRIPTION & PURPOSE 88m high De Hoop Dam (R3 075 million) on Steelpoort River – Implementation by DWA Extensive bulk distribution systems (pump stations, balancing dams and pipelines) from De Hoop and Flag Boshielo Dams (R12 981 million) Implementation by TCTA Primary water supply in Middle Olifants River catchment area – Regional Bulk and Reticulation (R6 812 million) Industrial water for mining on eastern limb of Bushveld Igneous complex

1. ORWRDP (DE HOOP) REGIONAL BULK AND PRIMARY RETICULATION TO HOUSEHOLD FEASIBILITY STUDIES Bulk and Internal Bulk (Rand million) Reticulation (Rand million) Total (Rand million) MOOIHOEK TO TUBATSE AND BURGERSFORT 590 202 792 DE HOOP TO JANE FURSE AND NEBO PLATEAU 1110 422 1531 PRUISSEN TO MOKOPANE AND MOGALAKWENA LM 1141 184 1325 OLIFANTSPOORT TO CAPRICORN (LEPELLE-NKUMPI). 393 228 621 OLIFANTSPOORT TO POLOKWANE (OLIFANTS SAND) 1380 107 1487 OLIFANTSPOORT SOUTH (FETAKGOMO). 341 32 373 LEBALELO 552 130 681 TOTAL 5507 1305 6812

1. ORWRDP PHASE 2: SCHEDULE (Subject to availability of funding) 2A: June 2007 – Mar 2013 2B: Jul 2011 – Dec 2013 2C: Jul 2011 – June 2013 (Steel Bridge: July 2012) 2D: Jul 2011 – June 2013 2E: April 2012 – March 2014 2F: April 2012 – March 2014 2G: April 2012 – March 2014 2H: Incorporated by March 2013

PROJECT RISKS & MITIGATION 1. ORWRDP PHASE 2: PROJECT RISKS & MITIGATION Level of commitment by mines and municipalities due to effects of ongoing global recession High social demands Affordability High cost of scheme Reliance on electricity for pumping Alignment of completion of water resources & services infrastructure Implement GWW with government funding Implement WC & DM Government funding Step wise implementation within funding constraints Align with Eskom’s developments Aligned planning and water supply agreements

2. MCWAP: DESCRIPTION & PURPOSE Augmented water supply in the Lephalale area to meet the water requirements of the Medupi Power Station, and the future water requirements related to the expected growth in the Lephalale Municipality Industrial water for possible CTL plant by Sasol Phase 1 (R2 059 million) includes a new pump station at Mokolo Dam and pipeline to Medupi and Matimba Power Station, Exxaro mine and Lephalale town Sub-phase 2A (R13 455 million): Abstraction works at Vlieëpoort and BDS to Steenbokpan and Lephalale areas Sub-phase 2B (R1 590 million): Duplication of BDS Social/Commercial portion on/off-budget TCTA implementing agent Regional Bulk and Reticulation (R 330 million)

2. MCWAP: SCHEDULE (Subject to environmental authorisation and Integrated Resource Plan (IRP) for electricity) MCWAP-1: July 2011 – July 2013 MCWAP-2A: Jan 2013 – Dec 2016 MCWAP-2B and further phases: Depends on IRP and investment decisions by the private sector and other stakeholders

PROJECT RISKS & MITIGATION 2. MCWAP-1 AND 2A: PROJECT RISKS & MITIGATION Likelihood of appeals against environmental authorisation high Very tight construction programme Affordability of water by social users Delayed IRP for electricity High dependence on single resource, i.e. Mokolo Dam Concerted efforts to deal swiftly with possible appeals Efficient implementation strategies and contract management Government funding Co-operative governance Investigate and implement additional and alternatives sources

3. GLeWAP: DESCRIPTION & PURPOSE 36m high Nwamitwa Dam (R1 262 million) on Groot Letaba River – Implementation by DWA 3m raising of Tzaneen Dam (R84 million) Regional Bulk Water supply (R410 million) Provide primary water requirements in Mopani District To implement the preliminary Reserve in compliance with the National Water Act To stabilise the assurance of supply to the existing irrigation farming To improve water availability for the establishment of resource-poor irrigation farmers

(Subject to environmental authorisation and funding) 3. GLeWAP: SCHEDULE (Subject to environmental authorisation and funding) Tzaneen Dam Raising: 2013/14 Nwamitwa Dam: 2016/17 Regional Bulk: 2015/2016

3. GLeWAP: PROJECT RISKS & MITIGATION Likelihood of appeals against environmental authorisation Concerted efforts to deal swiftly with possible appeals Very tight construction programme Efficient implementation strategies and contract management Affordability of water by social users Government funding Funding constraints Phased implementation & rescheduling Skills shortage Training programmes

4. LRGWS – Nandoni Distribution Scheme: Description & Purpose The Nandoni Dam and Distribution scheme forms part of the larger Luvhuvhu River Government Water Scheme (LGWS) which also includes the Xikundu scheme The project was initiated to provide potable water to the area between Thohoyandou and Makhado after the completion of the Nandoni Dam The Nandoni Distribution projects were started in 2005 in conjunction with the Nandoni WTW after completion of the Nandoni Dam and includes: 3 bulk pipelines takes water from Nandoni WTW to various reservoirs NR6 and NN20B pipelines takes water in a northerly direction NR5 pipeline takes water in a southern and western direction Estimated cost for the completion Nandoni Distribution Scheme is R701 million

4. LRGWS: SCHEDULE DWA approved the accelerated plan to complete the Nandoni Distribution Scheme’s bulk water pipelines up to the Valdezia Reservoir Tender for PSPs to redesign the bulk water pipelines did close Water delivery dates are as follows: Thohoyandou CBD (via NR6 Reservoir and Rising Main) by October 2011 Mavambe to Gumbani and Mudabula (via Mavambe to Gumbani Rising Main, Gumbani Reservoir and Pump Station). Water was already being delivered as from 17 June 2010 Greater Vuwani Area(Vuwani (NR7) Reservoir and Rising Main) by August 2012 Valdezia Area (Valdezia Reservoir and Rising Main) by November 2012 Mushiri, Mahagala and Lambani (Lambani Gravity Main) by October 2011 Peri-urban areas east of Thohoyandou (NN20B Reservoir and Rising Main) by October 2011 The water from the bulk distribution systems will feed into the existing local reticulation systems

4. LRGWS: PROJECT RISKS & MITIGATION Quality control of construction Adequate site supervision including dedicated Resident Engineer Productivity of local labour Implementing management controls to increase productivity Condition of existing municipal water infrastructure Municipal infrastructure refurbished or replaced by Municipalities where critical e.g. control valves at reservoirs Extended lifespan of bulk water infrastructure (quality of materials and installation) Independent 3rd party inspectors and warrantees

Bulk Water Supply in Limpopo - RBIG Table 1: List of RBIG projects and funding for 2010/11, 2011/12 and 2012/13 Scheme District Municipality (Water Services Authority) Total Project Costs RBIG Expenditure to date (2007/8/9/10) RBIG Budget 2010/11 RBIG Budget 2011/12 RBIG Budget 2012/13 Olifantspoort WTW Capricorn 303,527,528 173,000,000 23,000,000 20,000,000 Specon BWS 74,316,000 39,500,000 19,000,000 Mametya Sekororo Mopani 214,000,000 10,000,000 7,000,000 48,000,000 51,789,000 Giyani BW Supply Drought Relief 252,000,000 54,000,000 Groblersdal Lukau BWS Greater Sekhukhune 36,208,000 30,508,523 Nebo BWS 1,379,480,000 53,934,769 28,000,000 60,000,000 77,000,000 Mooihoek/Tubatse BWS 1,000,000,000 50,956,728 13,000,000 70,000,000 Sinthumule Kutama BWA Vhembe 454,979,475 34,314,595 16,000,000 51,000,000 44,500,000 Mogalakwena BWS Mogalakwena 1,530,000,000 66,571,832 27,000,000 82,700,000   5,244,511,003 458,786,447 187,000,000 287,000,000 325,989,000

Bulk Water Supply in Limpopo - RBIG Estimated total cost of 9 projects R 5 244 511 003 Minus RBIG expenditure 2007/8/9/10 R 458 786 447 Minus RBIG Budget 2010/11/12/13 R 799 989 000 R 1 258 775 447 Shortfall for 9 current projects to be completed R 3 985 735 556

Bulk Water Supply in Limpopo - RBIG In addition to the projects being implemented, Table 2 illustrates projects at feasibility, or implementation ready study stage that were funded through the RBIG.

Bulk Water Supply in Limpopo - RBIG Scheme District Municipality (Water Services Authority) Total Project Costs RBIG Expenditure to date (2007/8/9/10) RBIG Budget 2010/11 RBIG Budget 2011/12 Ohrigstad Greater Sekhukhune 450 000 000 949 554 Lebalelo Central & North RWS 600 000 000 2 397 573 Nwamitwa RWS Scheme(Great Letaba) Mopani 644 000 000 3 122 166 Nzhelele Valley BWS Vhembe 1 983 685 Makhado West and Extension to Nandomi Dam 400 000 000 4 005 464 Matoks RWS Capricorn 1 000 000 000 2 335 362 Glen Alphine RWS 345 000 000 2 897 726 Lephalale - Bulk Water Augmentation(Eskom) Waterberg 330 000 000 5 049 991 1 000 000 Magalies Water to Waterberg 800 000 000 2 800 986 Sub Total   5 169 000 000 25 542 507

Bulk Water Supply in Limpopo - RBIG Minus RBIG expenditure 2007/8/9/10 R 25 542 507 Minus RBIG Budget 2010/11/12/13 R 1 000 000 R 26 542 507 Estimated total cost of 9 IRS projects to implement R 5 169 000 000 Shortfall for 9 current projects to be completed R 3 985 735 556 Shortfall for 9 current IRS projects to be constructed Total Shortfall R 9 154 735 556

Bulk Water Supply in Limpopo FUNDING The dams are funded by National Treasury Funds not so easily available for RBIG and Reticulation through MIG Example: De Hoop is funded at R3 billion by National Treasury. Bulk Distribution and reticulation to Households require R20 billion. R1.2 billion is available from 2007 to 2013 through RBIG and MIG. Shortfall of R18.8 billion is needed to serve 2 million people and mining. Mines and Municipalities not in a position to sign off take agreements with DWA.

Bulk Water Supply in Limpopo Example: RBIG is funding a pipe line from Steelbridge to Jane Furse – 70% completed Sekhukhune DM with MIG is on tender for WTW at Steelbridge and 10 Megaliter reservoir at Jane Furse for completion July 2012. DWA has to do Phase 2C pipe from De Hoop Dam to Steelbridge for completion July 2012 depending on funding from National Treasury.

Life cycle planning Cost of the Business Design Procure Construct Operate Maintain Refurb. Typical % of Total Cost over the Life of Water Supply Infrastructure 0,2% 2% 17% 44% 37% Financing Cost Based on actual local government case study (Paul le Roux)

Limpopo Picture Rand (bil) Identified Projects including: 59.3 ORWRDP (De Hoop) MCWAP (Lephalale) GLeWAP (Nwamitwa) Waste Water Treatment Works Capital = 20% 60.0 O&M 20 years = 40% 120.0 Financing 20 years = 40% Total 300.0

Needs Classification/Definition – Water Services Water services Programme O&M needs Infrastructure needs Resource needs Upgrade Management Refurbishment management Demand Extension Community with no water services at all Local source development Bulk Infrastructure Housing Programme Illegal settlement Regional Bulk Interim Formal rural Housing Program Water resource development Internal Bulk Backyard dwelling Sewerage works Purification plants Shared services Permanent

Needs Classification/Definition - Sanitation Sanitation services programme O&M needs Infrastructure needs Existing Services that needs to be replaced Basic but not appropriate Management Refurbishment RDP – Pit/less than VIP Buckets Households with no sanitation services at all Other Other Programmes Housing Programme Illegal settlement Other Programmes Interim Formal rural Housing Program Water resource development Health Sanitation needs Backyard dwelling Schools Sanitation needs Shared services Permanent

Backlog on Water: Households Priority (Infrastructure Status) Priority Adequate 0 No Water Services 1 Inadequate Infrastructure: Need Extensions 2 Inadequate Infrastructure: Need Upgrade 3 Inadequate Resources 4 Inadequate Management: O & M 5 Inadequate Management: Refurbishment 6 Inadequate Housing: Interim 7 Inadequate Housing: Permanent 8

LIMPOPO WATER CHALLENGES EQUITABLE SHARES Currently R5 / kiloliter (1000 liters) ORWRDP at Nebo estimated R25 / kiloliter (1000 liters) 85% indigents to get 6 kiloliter free 200 000 households (4 people / hh) x 6kl x 12months x R20 = R288 mil per year

STRATEGIC TARGETS / BACKLOG ERADICATION PROGRESS AND CHALLENGES Total Water Business – Industry, Agriculture, Tourism and People Single Purpose Dams Water Services Provider – Cross Border Issues WSDP requirements – Water Resource Planning & Internal Strategic Perspective Priorities of backlogs Eradicate per priority Water Resource shortfall (De Hoop) Funding shortfall – RBIG, MIG, ACIP Water Services Reference Framework - MIG Projects outstanding Redesign EQUITTABLE SHARE formula

STRATEGIC TARGETS / BACKLOG ERADICATION PROGRESS AND CHALLENGES Cont….. Materials availability Manpower Inexperienced PSPs and Contractors Supply Chain Not enough resources to support Population Growth Population development require higher water needs

THANK YOU Bernie Badenhorst badenhb@dwaf.gov.za Tel 015-2901218 Cell 083 627 5912 c\:My Documents\Dept Premier\Premier’s Intergovernmental Forum 2010-10-06