National Water Resources Infrastructure

National Water Resources Infrastructure

Portfolio Committee: Water and Environmental Affairs

BRANCH BACKGROUND INFORMATION

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NWRI Branch Objective

1. The National Water Resources Infrastructure Branch (NWRIB) is responsible for the development of water resources infrastructure to meet regional, social, economic and environmental objectives for all South African citizens.

2. It is responsible for the rehabilitation, operations and maintenance of existing infrastructure to ensure proper and strategic asset management

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ELEMENTS OF THE WATER BUSINESS


1. The National Water Resources Infrastructure Branch (NWRIB) is responsible for the development of water resources infrastructure to meet regional, social, economic and environmental objectives for all South African citizens.

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Durban

Cape Town

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Major Water Resources Development Projects

MOKOLO AND CROCODILE RIVER (WEST)AUGMENTATION PROJECT

- Project cost R2.1 billion- Project close-out date, 2015

OLIFANTS RIVER WATER RESOURCESDEVELOPMENT PROJECT

- Project cost (Phase 2A) R3.1billion and (Phases 2B – 2G) R13.0 billion- Project close-out dates, 2013 & 2016 (Subject to funding)

VAAL RIVER EASTERN SUB SYSTEM AUGMENTATION PROJECT

- Project cost R3.0 billion;- Project close-out date, 2012

KOMATI WATER SYSTEMAUGMENTATION PROJECT


HAZELMERE DAM

- Project cost R116 million- Estimate project close-out date, 2016

CLANWILLIAM DAM

- Project cost R1.6 billion- Estimate project close-out date, 2016

MOOI MNGENI TRANSFER SCHEME(PHASE 2)


Description of projects

MOKOLO AND CROCODILE RIVER (WEST) AUGMENTATION PROJECT• Structures include , the building of Pipelines, Pump Station and incorporate existing Structures include , the building of Pipelines, Pump Station and incorporate existing

Exxaro infrastructureExxaro infrastructure

OLIFANTS RIVER WATER RESOURCES DEVELOPMENT PROJECT: DE HOOP DAM (PHASE 2A) AND BULK DISTRIBUTION SCHEME (PHASES 2B-2G)

• Phase 2A – Construct a 88m High Roller Compacted Concrete Dam and associated Phase 2A – Construct a 88m High Roller Compacted Concrete Dam and associated infrastructure;infrastructure;

• Phases 2B to 2G – Construct a Network of Pipelines, Reservoirs and Pump Stations.Phases 2B to 2G – Construct a Network of Pipelines, Reservoirs and Pump Stations.

VAAL RIVER EASTERN SUB SYSTEM AUGMENTATION PROJECT• Construction of a pipelines from Vaaldam to Secunda and a Pump StationConstruction of a pipelines from Vaaldam to Secunda and a Pump Station

KOMATI WATER SYSTEM AUGMENTATION PROJECT• Construction of a pipelines and a Pump StationConstruction of a pipelines and a Pump Station

Description of projects cont…

MOOI MNGENI TRANSFER SCHEME• Construction of a 37m high Composite dam, pipelines and a Pump Construction of a 37m high Composite dam, pipelines and a Pump

StationStation

HAZELMEREDAM• Increase the existing dam capacity by installing radial gatesIncrease the existing dam capacity by installing radial gates

CLANWILLIAMDAM• Increase the existing dam capacity by increasing the wall highIncrease the existing dam capacity by increasing the wall high


2. It is responsible for the rehabilitation, operations and maintenance of existing infrastructure to ensure proper and strategic asset management

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Distribution of assets

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Distribution of asset value

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Asset Class Extent Replacement Value (R bn)

Buildings 2 572 Number 2 301

Canals 8 036 km 29 073

Dams and weirs 359 Number 72 002

Measuring Facilities 3011 Number 7 381

Pipelines 1 063 km 8 044

Pump stations 57 Number 1 673

Reservoirs 51 Number 631

Treatment works 62 Number 69

Tunnels 171 km 18 354

Other 77 Number 85

State owned land 343 237 Ha 6 792

Servitudes 51 849 Ha 769

TOTAL 147 174

Extent of Assets

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NWRI

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- - - - - - - - - --

*Finance is a support function to NWRI*All Senior Manager’s posts have been advertised

Chief Directorate Structure

DIRECTORATE PURPOSE

i. Capital Projects Project management services for the planning and implementation of water infrastructure projects from the fiscus. IN some instances, this is done jointly with the TCTA in cases where there is a need for off-budget funding.

ii. Risk Management Identification of potential project risks and management of risks.

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1. Infrastructure Development -Promotes business principles in the management of infrastructure, including management of business risks and those associated with infrastructure implementation. COE: R13.4 mGoods and services: R4.0mProjects: R909.7m

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2. Engineering Services -

Provides engineering, scientific, environmental services and support through the implementation of mandated projects for existing and new water resources infrastructure - including civil, mechanical, electrical, hydrological and environmental services. COE: R44.7 mGoods and services: R13.0mMovable Assets; R1.5m

DIRECTORATE PURPOSE

i. Mechanical and Electrical Engineering

Responsible for design, specification, quality control and contract administration of mechanical, electrical and electronic (telemetry, control and communication) systems for new and existing bulk water resource infrastructure.

ii. Civil Engineering Design, specifications, quality control and site supervision during construction of new construction projects and rehabilitation of existing infrastructure; and administration of civil contracts.

DIRECTORATE PURPOSEiii. Integrated Environmental Engineering

Project implementation done according to social, economic and ecological best practices for sustainable water resources infrastructure development, operation, maintenance and rehabilitation. This include the use of our infrastructure for hydro-power and eco-tourism purposes through PPP.

iv. Technical Engineering Support Services

Supplies technical support services for new projects as well as betterments/ alterations/ decommissioning of existing bulk water infrastructure projects.

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3. Construction Management-

Provides actual construction services to DWA through the use of an internal construction company. Services supplied by this company include the building of new infrastructure and rehabilitation of existing infrastructure.COE: R33.2mGoods and services: R26.9mMovable Assets: R58.5m

DIRECTORATE PURPOSEi. Construction Support Construction of new water resources

infrastructure; and supply administrative, human resource , financial; and safety and security support for 5 Construction Units

ii. Construction Equipment(sub-directorate)

Fleet management, manufacture and refurbish mechanical equipment; as well as procurement, operation, maintenance, rebuilding and disposal of construction equipment

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4. Infrastructure Operations and Maintenance -

The strategic purpose of the Operations and Maintenance component is to ensure that the bulk water resource infrastructure is operated and maintained in a safe and sustainable manner. COE: R479.2 mGoods and services: R717.1mProjects: R1.3b

DIRECTORATE PURPOSE

1. Strategic Asset Management

Technical Support Services for four clusters (Operations, Mechanical, Electrical and Civil Engineering) for the operation, maintenance, refurbishment and rehabilitation of existing bulk water resource infrastructure. Acts as custodian of all departmental dams by ensuring dam safety standards are adhered to.COE: R26.4mGoods and services: R35.5mProjects: R349mMovable assets: R3.5m

ii. Northern Operation

Ensures that bulk water resource infrastructure is operated and maintained in a safe and sustainable manner. The function is split into three area offices (Hartbeespoort, Groblesdal and Tzaneen). Revenue: R378mCOE: R142 mGoods and services: R78mProjects: R107.4mMovable Assets: R4.7m

iii. Eastern Operations

Ensures that bulk water resource infrastructure is operated and maintained in a safe and sustainable manner in KwaZulu-Natal. Revenue: R243mCOE: R38.7 mGoods and services: R123mProjects: R48.5mMovable Assets: R2m

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DIRECTORATE PURPOSE

iv. Central Operations

Ensures that bulk water resource infrastructure is operated and maintained in a safe and sustainable manner in Gauteng, Free State and the Northern Cape Regions.Revenue: R1.4bCOE: R203 mGoods and services: R410mProjects: R606mMovable Assets: R7.3m

v. Southern Operations

Ensures that the bulk water resource infrastructure in the Eastern and Western Cape Provinces is operated and maintained in a safe and sustainable manner. The Southern Operations Directorate manages a number of bulk water supply schemes that can be roughly divided into Urban Supply Systems, Irrigation Schemes and Stand-Alone Schemes.Revenue: R308mCOE: R67.8 mGoods and services: R78mProjects: R118mMovable Assets: R3.2m

Entity links

ENTITY LINKS WITH ENTITY

Trans-Caledon Tunnel Authority Responsible for implementation of off-budget projects

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International obligations

INTERNATIONAL OBLIGATION PROGRESS ON IMPLEMENTATION

LHWP Phase 2 includes the design and implementation of Polihali weir and dam, road construction, pump storage, and project management unit

KOBWA

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OVERVIEW: BRANCH PERFORMANCE PLAN FOR 2012/13

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Strategic Objective: To ensure the availability of water supply

Output: Augmentation projects developed for energy, domestic, mining, agriculture & industrial sectors

PERFORMANCE INDICATOR

TARGET FOR 2011/12 PROGRESS IN 2011/12

TARGET FOR 2012/13

Percentage of project completed as per project implementation programme

Olifants River Water Resource Development Project (ORWRDP Phase 2A) 90%

86% 99%

Cost allocated: R285million

Olifants River Water Resources Development Project (ORWRDP Phase 2C-D) (Bulk distribution works)3%

4% 30%

Cost allocated: R300 million

Vaal River Eastern Sub-System Augmentation Project (VRESAP)100%

100% Commissioned – final snags addressed

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TARGET FOR 2011/12

PROGRESS IN 2011/12 TARGET FOR 2012/13


Mokolo and Crocodile River (west) Water Augmentation Project (Phase 1) (MCWAP-1)

13%

13% 45%


Komati Water Supply Augmentation Project (KWASAP)

26%

26%

Cost allocated: Off budget

Mdloti River Development (Raising of Hazelmere Dam) 10%

10% 42%


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TARGET FOR 2011/12



Olifants-Doorn River Water Resources Project: Raising of Clanwilliam Dam

1%

1% 8%


Mooi-Mgeni Transfer Scheme (MMTS- Phase 2)

26%

26% 70%


Greater Letaba River Water Resources Project(GLeWAP)(N’wamitwa Dam)3%

0% RID outstanding

8%


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TARGET FOR 2011/12



Greater Letaba River Water Resources Project: (Raising of Tzaneen Dam)

0%

0%RID outstanding

8%


(Mopani emergency works)

0%

0%RID outstanding

17%

Cost allocated:R70 million

Lesotho Highlands Water Projects Phase II

Establish Project management Unit; approve Project Charter; appoint designers

Designers appointed Complete design of advanced infrastructure


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TARGET FOR 2011/12


% of infrastructure maintained as per maintenance plan

80% 52% Delays in appointment of maintenance contracts

Shortage of technical skills

90%

Number of Conveyance systems rehabilitated

6 2Delays in procuring PSP services

Lack of technical skills

5•S1 Balancing Dam-Oranje-Riet - Northern Cape•Qamata GWS 5, Ncora GWS 2, Fish Sunday GWS Klipfontein Canal Eastern Cape•Vlakfontein Canal -Mpumalanga•Voelvlei GWS -Western Cape


Number of rehabilitated dams

8 9 5 dams

Cost allocated: R 350 million

Risks

Risk Treatment

1. Qualified Audit opinion for the NWRI Branch

1) Ensure that the policy management system is in place and used to develop and maintain the Branch's policies. Due date: 30 November 2012

2) Commence the review of all policies and procedures. Due date: 01 April 2012

3) Implementation and maintenance of the NWRIB finance turnaround strategy.Due Date: 31 March 2012 and on-going

4) Finalisation of the funding model and business modelsDue Date: 30 June 2012

5) Develop SHEQ policies and procedures. Due Date: 31 January 2013

6) Customisation and implementation of the latest version of SAP. Due Date: 31 October 2012

7) Review, and approve the new delegations of authority. Due Date: 31 March 2012

Risk Risk Treatment

2. Inability by the Branch to attract and retain the required skilled, knowledgeable and experienced people within the organisation that will address the current professional and technical staff profile

1) Ensure that the required recruitment and retention strategy and plan is developed for the Branch. Due date: 31 March 2012

2) Regular reports from Chief Directorates concerning vacancies and status of filling of key positions and recommend the filling of those vacancies as a matter of urgency.Due date: 31 March 2012, and on-going

3) Ensure that Branch can leverage on Occupation Specific Dispensation (OSD) to retain and attract technical scarce resourcesDue date: 31 March 2012 and ongoing

Risk Risk Treatment3. Inability to

guarantee sustainable provision and maintenance of bulk raw water to customers due to the aging and current condition of the water resource infrastructure - ineffective strategic water infrastructure asset management

1) Ensure that the required EPP and water infrastructure plan are in place together with associated contingency and redundancy plansDue date: 30 November 2012

2) Ensure that appropriate funding is requested in order to undertake required preventative as well as backlog maintenance for 2012/2013Due date: 31 November 2012

3) Situational analysis undertaken in order to draw attention to the gravity of the water infrastructure condition, potential penalties by Eskom and this used as an appropriate lobbying mechanism - use made of the asset management report Due date: 31 March 2012

4) Obtaining Cabinet buy-in on the seriousness of the Water Resource Infrastructure situation via the intervention actions of the DWA accounting officer - cabinet submission Due date: 30 September 2012

5) Ensure that strategic asset management has a formal IAM strategy, framework, system in place and that appropriate asset management life-cycle models are usedDue date: 30 October 2012

6) Management should also design and implement procedures to ensure that the revaluation of assets is correctly accounted for in the financial statements and that the disclosure made in the financial statements comply with IAS16. Due date: 31 January 2012

7) Implementation of an asset information management system.Due date:31 March 2013

8) Ensure review of Asset Management Plan on annual basis.Due date: 01 April 2012

9) Finalise the integrated infrastructure plan Due Date: 31 March 2012

10) Revision of the pricing strategy + the issue of cappingDue date: October 2012

11) An adjustment to procurement landscape/legislationDue Date: 31 March 2012

12) Develop long-term operations and maintenance plansDue Date: 31 March 2012

Risks Risk Treatment4. Inability by the Branch to continue to live out its mandate after a business, financial, information technology or natural disaster has occurred.

1) Ensure that a business continuity implementation plan (BCP) is developed for the Branch which includes business recovery, disaster recovery, incident management, emergency management and crisis management + measuring and monitoring systemDue date: 31 March 2013, and on-going

5. Inability to complete approved new augmentation projects developed for energy, domestic, mining & industrial sectors as timeously planned and within budget and specifications

1) Integrated governance /institutional structure for project implementation - finalDue date: 31 July 2012

2) Infrastructure funding model to be developed and implementedDue Date: 01 April 2012

Documents

National Water Resources Infrastructure