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Bulk Water Supply in Limpopo

Integrating Infrastructure Delivery towards 2030

Summit

Peter Mokaba Stadium

5 and 6 October 2010

A.M. Matukane

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Contents

1. Growth Points

2. Water Resources - Dams, Transfers, Ground water

3. ORWRDP, MCWAP, GLEWAP, LRGWS

- Description, Purpose, Map, Schedule, Risks and Mitigation

4. Regional Bulk Infrastructure Grant (RBIG)

5. Funding

6. Challenges

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Bulk Water Supply in Limpopo

Growth Points

1. Polokwane

2. Elias Motswaledi

3. Makhado

4. Lephalale

5. Greater Tubatse

6. Greater Tzaneen

Growth Points

7. Phalaborwa

8. Thabazimbi

9. Mogalakwena

10.Marble Hall

11.Musina

12.Lepelle Nkumpi

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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.

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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

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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

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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

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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

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Bulk Water Supply in Limpopo

Major Schemes1. Olifants River Water Resources

Development Project (ORWRDP)2. Mokolo & Crocodile Water Augmentation

Project (MCWAP)3. Groot Letaba Water Augmentation Project

(GLeWAP)4. Luvuvhu River Government Water Scheme

(LRGWS) – Nandoni Distribution Scheme 5. Water Services

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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

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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

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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

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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

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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)

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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

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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

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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

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3. GLeWAP: SCHEDULE(Subject to environmental authorisation and funding)

• Tzaneen Dam Raising: 2013/14• Nwamitwa Dam: 2016/17• Regional Bulk: 2015/2016

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3. GLeWAP: PROJECT RISKS & MITIGATION

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

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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– 3 bulk pipelines takes water from Nandoni WTW to various reservoirs– NR5 pipeline takes water in a southern and western direction

• Estimated cost for the completion Nandoni Distribution Scheme is R701 million

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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

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4. LRGWS: PROJECT RISKS & MITIGATION

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

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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

2011/12RBIG Budget

2012/13

Olifantspoort WTW Capricorn 303,527,528 173,000,000 23,000,000 20,000,000 0

Specon BWS Capricorn 74,316,000 39,500,000 19,000,000 0 0

Mametya Sekororo Mopani 214,000,000 10,000,000 7,000,000 48,000,000 51,789,000

Giyani BW Supply Drought Relief Mopani 252,000,000 0 54,000,000 0 0

Groblersdal Lukau BWSGreater

Sekhukhune 36,208,000 30,508,523 0 0 0

Nebo BWSGreater

Sekhukhune 1,379,480,000 53,934,769 28,000,000 60,000,000 77,000,000

Mooihoek/Tubatse BWSGreater

Sekhukhune 1,000,000,000 50,956,728 13,000,000 48,000,000 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 60,000,000 82,700,000

    5,244,511,003 458,786,447 187,000,000 287,000,000 325,989,000

Table 1: List of RBIG projects and funding for 2010/11, 2011/12 and 2012/13

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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

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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.

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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 Budget2011/12

Ohrigstad Greater Sekhukhune

450 000 000 949 554 0 0

Lebalelo Central & North RWS

Greater Sekhukhune

600 000 000 2 397 573 0 0

Nwamitwa RWS Scheme(Great Letaba)

Mopani 644 000 000 3 122 166 0 0

Nzhelele Valley BWS Vhembe 600 000 000 1 983 685 0 0

Makhado West and Extension to Nandomi Dam

Vhembe 400 000 000 4 005 464 0 0

Matoks RWS Capricorn 1 000 000 000 2 335 362 0 0

Glen Alphine RWS Capricorn 345 000 000 2 897 726 0 0

Lephalale - Bulk Water Augmentation(Eskom)

Waterberg 330 000 000 5 049 991 1 000 000 0

Magalies Water to Waterberg

Waterberg 800 000 000 2 800 986 0 0

Sub Total   5 169 000 000 25 542 507 1 000 000 0

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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

R 5 169 000 000

Total Shortfall R 9 154 735 556

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Bulk Water Supply in Limpopo

FUNDING• The dams are funded by National Treasury• Funds not so easily available for RBIG and Reticulation

through MIGExample: • 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.

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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.

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Life cycle planning Cost of the Business

Planning Design Procure Construct Operate Maintain Refurb.

0,2% 2% 17% 44%

Typical % of Total Cost over the Life of Water Supply InfrastructureTypical % of Total Cost over the Life of Water Supply Infrastructure

37% Financing Cost

Based on actual local government case study (Paul le Roux)Based on actual local government case study (Paul le Roux)

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Limpopo PictureRand (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% 120.0

Total 300.0

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Needs Classification/Definition – Water Services

Community with no

water services at all

ExtensionU

pgrade

Infrastru

cture

needs

O&M needs

Resource needs

Ma

na

ge

me

nt

Refurbishm

ent Deman

d

man

agem

ent

Local s

ource

development

Regional Bulk

Internal Bulk

Sew

erag

e w

orks

Pur

ifica

tion

plan

ts

Interim

Permanent

Illegal settlement

Formal rural Housing ProgramBackyard dwelling

Shared services

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Needs Classification/Definition - Sanitation

Households with no

sanitation services at

all

RDP – Pit/less

than VIP

Basic but not

appropriate

Infrastru

cture

needs

O&M needs

Existing Services that

needs to be replaced

Ma

na

ge

me

nt

Refurbishm

ent Bucke

ts

Other

Other

Programmes

Health Sanitation

needs

Sch

ools

S

anita

tion

need

s

Interim

Permanent

Illegal settlement

Formal rural Housing ProgramBackyard dwelling

Shared services

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Backlog on Water: Households

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

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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

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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

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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

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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