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

2. 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

3. A1. RBIG : Expenditure 2013/14

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

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

6. A2. MWIG: Expenditure 2013/14

7. A3. ACIP : Expenditure 2013/14 WCDM cont…
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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

8. A3 : ACIP Expenditure 2013/14 WCDM cont…
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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

9. A3. ACIP : Expenditure 2013/14 WCDM cont….
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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, (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, (39%)
R255,000
R603,537

10. A3. ACIP : Expenditure 2013/14 WCDM cont…
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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, (37%)
R406,259.00
R1,032,498
Implement-ation in progress
Ikwezi LM -Water Crisis Intervention
R3.2 m
R1,306,719 (65%)

11. A3. ACIP : Expenditure 2013/14 -WWTW
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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, (22%)
R1.4 m
R2,522,401
Engcobo WWTW Refurbishment (CHDM)
R1.2 m
R28, (2%)
R34,593.00
R68,524.83

12. A3. ACIP : Expenditure 2013/14 –WWTW cont…
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS 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

13. A4: NTP – Expenditure 2013/14 Total
AMATHOLE DISTRICT MUNICIPALITY Ngcingwane in progress Bangweni in progress Mangathi progress Ntlambodaka in progress Munyu Complete Mqonci Complete Mangqosinini
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

14. A4: NTP – Expenditure 2013/14 Total
Ngcisininde in progress
3 * Zagwityi complete
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

15. A4: NTP – Expenditure 2013/14 CHRIS HANI DISTRICT MUNICIPALITY Total
Sterkstroom in progress
WTW
Cala WTW progress
Nkobongo in progress
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

16. A4: NTP – Expenditure 2013/14 ALFRED NZO DISTRICT MUNICIPALITY Total
Belfort BWS non spending in progress
KwaBhaca SL non spending in progress
BWS
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

17. A4: NTP – Expenditure 2013/14 JOE GQABI DISTRICT MUNICIPALITY Total
Cleaning of in progress
leaking reservoir
Jozana neck in progress
Package plant
Sterkspruit in progress
Reservoir
Accomodation in progress
Of Hershel
pumpstation
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

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

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

20. A4: NTP – Expenditure 2013/14 Total O R TAMBO DISTRICT MUNICIPALITY
Mangwaneni Tender
Nyandeni Tender
Zandukwana Tender
Mantusini Tender
Scheme
Project Cost DWA Commitment
Budget Allocation 2013/14
BAS Expenditure 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

21. 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

22. 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.

23. 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.

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

25. 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 Regular update to be submitted as and when required.

26. 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.

27. C: Feedback on letter sent on 9 September 2013 (3)
Financial commitment for each project
AP : 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.

28. 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

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

30. 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!!!!!

31. 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!

32. MUN
REGION
HEAD OFFICE
TREASURY
WE NEED FUNDING
EISH!!

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

34. IMESA: Key Challenges

35. 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!!

36. 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!

37. 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!!

38. SOMETHING’S WRONG!!!