Eskom GenerationFleet Renewal Project:Socio-Economic Study
Report Prepared for
Eskom
Report Number 506503/F1
Report Prepared by
February 2017
SRK Consulting: Project No: 506503 Socio-Economic Study Page i
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Eskom Generation Fleet Renewal Project: Socio-Economic Study
Eskom
SRK Consulting (South Africa) (Pty) Ltd 265 Oxford Rd Illovo 2196 Johannesburg South Africa
e-mail: [email protected] website: www.srk.co.za
Tel: +27 (0) 11 441 1111 Fax: +27 (0) 11 880 8086
SRK Project Number 506503
February 2017
Compiled by: Peer Reviewed by:
Victoria Braham Social Scientist
Adel Malebana Senior Social Scientist
Anita Bron Principal Social Scientist
Vassie Maharaj Partner
Email: [email protected]
Authors (in alphabetical order):
Victoria Braham, Anita Bron, Andrew Hart, Adel Malebana, Sue Reuther
Victoria Braham Anita Bron
Adel Malebana Vassie Maharaj
Victoria Braham, Anita Bron, Andrew Hart, Adel Malebana, Sue Reuther
SRK Consulting: Project No: 506503 Socio-Economic Study Page ii
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Executive Summary Eskom owns and operates fourteen coal-fired power stations in South Africa, and is responsible for
generation, transmission and distribution of electricity to South Africa. The majority of Eskom power
stations are nearing their end of life, and Eskom has commenced with studies to assess fleet
renewal options for dealing with these power stations.
The power stations under discussion in this study are Hendrina, Arnot and Komati in the Steve
Tshwete Local Municipality, as well as Camden power station in the Msukaligwa Local Municipality.
These power stations are situated in the Mpumalanga Province. All these power stations use coal,
sourced from local mines, for the generation of electricity. The result is that electricity generation
has been widely associated with the emissions of carbon dioxide (CO2), sulphur dioxide (SO2) and
nitrogen dioxide (NO2), which contribute to health related issues at local level, and climate change
impacts on a broader scale.
Eskom has identified four fleet renewal options that could be implemented at these four power
stations. The options are classified as follows:
Option 1A/1B, referred to as Option 1 in this report (506503/F1): Lifex and Modernisation
(Refurbishment);
Option 2, which according to technical studies, was not considered technically feasible and was
therefore not assessed as part of this study: Repower with Biomass or Gas;
Option 3A/3B, referred to as Option 3 in this report (506503/F1): Rebuild as Pulverized Fuel or
Circulating Fluidised Bed Combustion (Demolish and rebuild); and,
Option 4: Do not renew (Decommission).
Overall, Eskom seeks to ensure that the chosen fleet renewal option cost effectively contributes to
meeting the electricity demand in South Africa, thereby generating further revenue from electricity
sales. In order to assist Eskom in selecting the option that will best meet their objective, the key
objectives that the socio-economic study aim to fulfil were:
Undertake a baseline study/overview of the project’s zones of influence to understand the socio-
economic landscape locally, regionally and nationally;
Assess the socio-economic implications of the proposed project options and associated
infrastructure per power station;
Identify stakeholder issues, opportunities, potential socio-economic impacts and risks, and
areas that would require mitigation for the options;
Assess the resilience/vulnerability of the communities in the context of the options and how they
would respond to these options;
Place the socio-economic considerations of the local communities into the broader context of
national priorities and sustainable development goals (social, economic and environment);
Rate and rank the three options in light of the above information; and,
Assess the socio-economic risks of the project.
To meet the socio-economic study objectives, five components to the socio-economic study were
identified:
1. Macro-economic and socio-economic baseline analysis;
2. Identification of applicable national priorities and sustainable development goals;
SRK Consulting: Project No: 506503 Socio-Economic Study Page iii
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
3. Stakeholder analysis;
4. Assessment of impacts of the options by way of an options analysis; and,
5. Risk assessment.
The study components were informed by the application of the following methods:
Desktop review: the review of current and available secondary data sources.
Interviews with internal and external stakeholders: key informants included internal
corporate stakeholders, internal power station stakeholders, and selected external
stakeholders.
Regarding component 1 (Macro-economic and socio-economic baseline analysis), key social and
economic characteristics at play in the municipalities within which the power stations are situated
included:
There are high levels of poverty and high unemployment rates, which are associated with low
incomes for those employed;
The local and regional economy is mostly based on manufacturing, energy, mining and trade;
Across the regional zone of influence, the majority of the population is of working age and below
the ages of 35, with a high dependency rate associated with a significant youthful population
below 18 years old;
The region experiences population increases due to in-migration from within the province and
the rest of the country. Linked to this is the growth of informal settlements and the demand for
services;
Levels of education in the local zone of influence are high, however the number of those having
attained tertiary education is low and can be attributed to (amongst other reasons) lack of tertiary
education campuses in the municipalities as well as financial constraints presented by attending
tertiary institutes;
Access to health care facilities is low, with Camden power station being the only one with a
hospital within a 20km radius. The rest of the hospitals are between 40km and 53km radius of
the power stations; and,
Apart from Camden power station, all the power stations, (through the local municipality),
provide potable water, sanitation and electricity to their zones of influence.
In terms of component 2 (Identification of applicable national priorities and sustainable development
goals), as a state-owned enterprise Eskom needs to align its activities with those of government in
order to contribute towards government reaching its development targets. With the adoption of the
National Development Priorities and the associated Sustainable Development Goals, Eskom is
required to limit the emissions from their operations in an attempt to respond to national priorities.
As such, options were assessed against national priorities to determine the extent to which they
were synergistic or conflicting with the identified priorities and goals. The National Development
Plan priorities identified as most relevant to this study were therefore: social, economic, and
environmental, linking to the following Sustainable Development Goals: Goal 1 “End poverty”, Goal
4 “Inclusive and equitable quality education”, Goal 3 “Ensure healthy lives and promote well-being
for all”, and Goal 9 “Build resilient infrastructure”.
SRK Consulting: Project No: 506503 Socio-Economic Study Page iv
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Regarding component 3 (Stakeholder analysis), key stakeholders identified included:
Government, (national, provincial, district and local);
Host communities;
Competent and commenting authorities;
Neighbouring mines;
Non-Governmental Organisations,
Business forums;
Transportation forums;
Internal stakeholders; and,
Neighbouring farmers.
The high-level stakeholder analysis indicated similar stakeholder relationships and patterns
amongst the four power stations. Stakeholder forums were identified across all four power stations,
with forums representative of adjacent farmers, municipalities and receiving communities. All the
power stations indicated having continuous engagement with their stakeholders through these
forums. However, in terms of engagement with non-government organisations, Camden power
station was not strong when compared to other power stations.
In terms of component 4 (Assessment of impacts of the options by way of an options analysis) an
option analysis was used to identify and assess the potential changes and impacts of each of the
three options for each power station, in order to identify a preferred option. Seven impact categories
were identified, These were further broken down into nineteen impact sub-categories. A basic
decision matrix was developed, consisting of a set of weighted criteria to rate the options against.
The seven impact categories were:
Employment and procurement;
Environmental;
Corporate social investment and training;
Service delivery;
Coal sourcing;
Land take; and,
Regional and national economic contribution impacts.
The findings of this option analysis for all the four power stations were:
Options 1 and 3 were the preferred options in that their implementation would lead to continued
maintenance of current employment, as well as creating new employment opportunities into the
future. Both options would allow for the continuation of the Corporate Social Investment spend
through the Eskom Foundation, thus providing the beneficiaries with skills to increase their
employability, as well as access to other livelihoods opportunities such as small businesses.
However, from an environmental point of view, these two options differed in that Option 1 would
continue to use more water due to its wet cooling system, while Option 3 would be using a dry
cooling system. Both options however reduced the emissions of CO2, SO2 and NO2 due to the
installation of Flue Gas Desulphurisation.
SRK Consulting: Project No: 506503 Socio-Economic Study Page v
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
From a land take point of view, Option 1 was the most preferred option in that it would not require
additional land, whereas Option 3 would require additional land for ash storage and limestone
and gypsum quarrying.
In terms of the relationship between the power station and the communities, Options 1 and 3
were less likely to result in community dissatisfactions that would normally occur during job
losses associated with decommissioning. However, regarding Option 4, Camden and Komati
power stations were previously mothballed and later returned to service. As a result, the power
stations and communities had dealt with the impacts of decommissioning previously, and would
more likely be able to handle these impacts should Option 4 be implemented.
Having recommended Options 1 and 3 as the preferred options for each of the power station, a
rapid vulnerability assessment of the local communities was developed in order to assess the
community response to these options and how adaptive they would be to these changes. Across all
four power stations, it was found that the communities’ adaptive capacity was low to moderate,
based on their ability to cope relevant to current and future stresses, future impacts and access to
social capital and resources.
Component 5 comprised of a risk assessment to understand the threats and/or opportunities of
implementing any of the three options. The following key findings were made:
The threats that were identified and assessed per option were related to potential economic and
physical displacement, community and employees grievances, communication with
stakeholders, and continued dependency of the communities on Eskom for service delivery,
health impacts and continued CO2 emissions.
The opportunities for Options 1 and 3 were rated in accordance with maintenance of current
employment, extension of the life of the operation, development of small businesses as a result
of continued Corporate Social Investment and procurement. For Option 4, reduced health and
safety liability, sale of components and handing over of services to local municipalities were
identified as opportunities.
From an economic and social point of view, the highest threat remained the loss of direct and
indirect employment due to the implementation of Option 4 (Decommissioning). However, this
was balanced by the opportunity for improved health and safety impacts due to decreased air
emissions, dust, water contamination and other environmental and socio-economic impacts.
For Options 1 and 3, physical and economic displacement, as well as continued dependence
on Eskom to provide municipal infrastructure to local communities were identified as significant
risks.
SRK recommended that other studies, i.e. financial, engineering and technical studies, inform the
final decision regarding a preferred option. This was due to the absence of a resolute socio-
economic difference between Option 1 and Option 3.
SRK Consulting: Project No: 506503 Socio-Economic Study Page vi
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table of Contents Executive Summary ................................................................................................................................. ii
Disclaimer ................................................................................................................................................ x
List of Abbreviations ................................................................................................................................ xi
1 Introduction ............................................................................................................... 1
Background ..................................................................................................................................... 1
Overview of Renewal Options ......................................................................................................... 2
Socio-Economic Study Objectives .................................................................................................. 4
Scope of the Report ........................................................................................................................ 5
Methodology.................................................................................................................................... 6
Limitations ....................................................................................................................................... 6
2 Macro-Economic Baseline Analysis ........................................................................ 7
Energy Generation, Enabling Economic Activity and Development ............................................... 7
2.1.1 Importance and Role of Energy .......................................................................................... 7
2.1.2 Contribution by Eskom to the South African Economy ....................................................... 8
2.1.3 Costs to the South African Economy Associated with Coal-based Energy ........................ 9
Contribution to State Revenue through Taxation............................................................................ 9
Employment and Skills Development ........................................................................................... 10
Enabling and Driving Social Development and Transformation ................................................... 11
2.4.1 Role of Energy in Human Development ............................................................................ 11
2.4.2 Contribution by Eskom to South African Electrification ..................................................... 12
2.4.3 Contribution by Eskom to Transformation and Economic Empowerment ........................ 12
2.4.4 Community Development and Funding of CSI Programmes ............................................ 13
2.4.5 Regional/Local Perspective ............................................................................................... 13
Economic Implications of Decommissioning Power Stations ....................................................... 14
2.5.1 Continued Operation ......................................................................................................... 14
2.5.2 Decommissioning .............................................................................................................. 14
Opportunities for Enhancement .................................................................................................... 16
3 Socio-Economic Baseline Analysis ....................................................................... 17
Provincial Context Summary ......................................................................................................... 17
3.1.1 Demographic Overview ..................................................................................................... 18
3.1.2 Provincial Economy ........................................................................................................... 18
Regional Context .......................................................................................................................... 20
3.2.1 Introduction ........................................................................................................................ 20
3.2.2 Summary of Baseline ........................................................................................................ 20
Local ZoI Context .......................................................................................................................... 22
3.3.1 Hendrina ZoI ...................................................................................................................... 23
3.3.2 Arnot ZoI ............................................................................................................................ 24
3.3.3 Komati ZoI ......................................................................................................................... 26
3.3.4 Camden ZoI ....................................................................................................................... 27
SRK Consulting: Project No: 506503 Socio-Economic Study Page vii
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Relevant Strategies and Plans ..................................................................................................... 31
3.4.1 Eskom’s SED and CSI Plans ............................................................................................ 31
3.4.2 Municipalities’ Local Economic Development ................................................................... 32
3.4.3 Provincial Growth and Development Strategy .................................................................. 37
3.4.4 NDP Priorities and SDGs .................................................................................................. 37
4 Stakeholder Analysis .............................................................................................. 39
Stakeholder Profiling ..................................................................................................................... 39
Stakeholder Issues ....................................................................................................................... 43
5 Impact Assessment and Options Analysis ........................................................... 45
Hendrina Power Station ................................................................................................................ 47
Arnot Power Station ...................................................................................................................... 51
Komati Power Station ................................................................................................................... 54
Camden Power Station ................................................................................................................. 57
Rapid Vulnerability/Self-sustenance Assessment of Local ZoI .................................................... 60
5.5.1 Hendrina Power Station .................................................................................................... 60
5.5.2 Arnot Power Station .......................................................................................................... 61
5.5.3 Komati Power Station ........................................................................................................ 61
5.5.4 Camden Power Station ..................................................................................................... 62
6 Risk Assessment ..................................................................................................... 63
Risk Assessment Matrix Development ......................................................................................... 63
Risk Assessment .......................................................................................................................... 63
7 Conclusions and Recommendations .................................................................... 66
Conclusions and Recommendations per Focus Area of Study .................................................... 66
Response to Socio-Economic Consequences: Mitigation and Enhancement Measures ............. 71
Improving the Sustainability of the SED/CSI Initiatives ................................................................ 75
8 Sources Consulted .................................................................................................. 76
Appendices ................................................................................................................... 79
Appendix A: Interview Schedules ............................................................................. 80
Appendix B: Discussion Guides ............................................................................... 85
Appendix C: Regional Context .................................................................................. 86
Appendix D: Local Context ...................................................................................... 103
Appendix E: Options Analysis ................................................................................ 133
SRK Consulting: Project No: 506503 Socio-Economic Study Page viii
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
List of Tables Table 2-1: Employees in State Owned Enterprises in 2010 ................................................................... 10
Table 2-2: Key economic sectors of the Steve Tshwete Local Municipality ........................................... 13
Table 3-1: Population structure of the Mpumalanga Province ................................................................ 18
Table 3-2: Socio-economic summary of the four local ZoIs .................................................................... 29
Table 3-3: Relevant NDP priorities and SDGs ........................................................................................ 38
Table 4-1: Stakeholder engagement protocol ......................................................................................... 40
Table 5-1: Rating definitions.................................................................................................................... 45
Table 5-2: Weighting multiplied by rating scores .................................................................................... 45
Table 5-3: Final score definition .............................................................................................................. 46
Table 5-4: Hendrina power station options analysis ............................................................................... 48
Table 5-5: Arnot power station options analysis ..................................................................................... 51
Table 5-6: Komati power station options analysis ................................................................................... 54
Table 5-7: Camden power station options analysis ................................................................................ 57
Table 6-1: Threat risk rating .................................................................................................................... 63
Table 6-2: Opportunity risk rating ............................................................................................................ 63
Table 6-3: Risk analysis .......................................................................................................................... 64
Table 7-1: Conclusions and recommendations per study component .................................................... 67
Table 7-2: Mitigation and enhancement measures ................................................................................. 72
SRK Consulting: Project No: 506503 Socio-Economic Study Page ix
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
List of Figures Figure 1-1: Location of Arnot, Hendrina, Komati and Camden power stations .......................................... 1
Figure 1-2: Power station renewal options ................................................................................................. 3
Figure 1-3: Study components ................................................................................................................... 6
Figure 2-1: Electricity consumption by different sectors in South Africa .................................................... 8
Figure 2-2: Human Development Index versus electrification rates......................................................... 11
Figure 3-1: Social issues .......................................................................................................................... 17
Figure 3-2: Province, municipalities and wards relevant to the study ...................................................... 18
Figure 3-3: Allocation of district and local municipalities in the regional ZoI ............................................ 20
Figure 3-4: ZoI wards demarcation .......................................................................................................... 22
Figure 3-5: Hendrina power station .......................................................................................................... 23
Figure 3-6: Hendrina ZoI locality .............................................................................................................. 24
Figure 3-7: Arnot power station ................................................................................................................ 24
Figure 3-8: Arnot ZoI locality .................................................................................................................... 25
Figure 3-9: Komati power station ............................................................................................................. 26
Figure 3-10: Komati ZoI locality .................................................................................................................. 27
Figure 3-11: Camden power station ........................................................................................................... 27
Figure 3-12: Camden ZoI locality ............................................................................................................... 28
Figure 4-1: Stakeholder analysis matrix ................................................................................................... 39
Figure 4-2: Stakeholder mapping ............................................................................................................. 42
Figure 4-3: Stakeholder issues per power station .................................................................................... 44
Figure 5-1: Hendrina power station option analysis ................................................................................. 50
Figure 5-2: Arnot power station options analysis ..................................................................................... 53
Figure 5-3: Komati power station options analysis ................................................................................... 56
Figure 5-4: Camden power station options analysis ................................................................................ 59
SRK Consulting: Project No: 506503 Socio-Economic Study Page x
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
DisclaimerThe opinions expressed in this Report have been based on the information supplied to SRK
Consulting (South Africa) (Pty) Ltd (SRK) by Eskom. The opinions in this Report are provided in
response to a specific request from Eskom to do so. SRK has exercised all due care in reviewing
the supplied information. Whilst SRK has compared key supplied data with expected values, the
accuracy of the results and conclusions from the review are entirely reliant on the accuracy and
completeness of the supplied data. SRK does not accept responsibility for any errors or omissions
in the supplied information and does not accept any consequential liability arising from commercial
decisions or actions resulting from them. Opinions presented in this report apply to the site
conditions and features as they existed at the time of SRK’s investigations, and those reasonably
foreseeable. These opinions do not necessarily apply to conditions and features that may arise after
the date of this Report, about which SRK had no prior knowledge nor had the opportunity to
evaluate.
SRK Consulting: Project No: 506503 Socio-Economic Study Page xi
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
List of Abbreviations
AA Automobile Association
B-BBEE Broad-Based Black Economic Empowerment
CFBC Circulating Fluidised Bed Combustion
CO2 Carbon dioxide
CSI Corporate Social Investment
DM/s District Municipality/ies
FET Further Education and Training
GDP Gross Domestic Product
HIV/Aids Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome
HDI Human Development Index
IDP Integrated Development Plan
LED Local Economic Development
LM/s Local Municipality/ies
MDEDET Mpumalanga Department of Economic Development, Environment and Tourism
NDP National Development Plan
NGO Non-Government Organisation
NOx Nitrogen dioxide
PF Pulverized Fuel
PGDS Provincial Growth and Development Strategy
SDF Spatial Development Frameworks
SDGs Sustainable Development Goals
SED Socio-economic Development
SEP Stakeholder Engagement Plan
SMME Small Medium Micro-sized Enterprises
SOx Sulphur dioxide
SRK SRK Consulting (South Africa) (Pty) Ltd
StatsSA Statistics South Africa
TB Tuberculosis
VIP Ventilation Improved Pit
ZoI Zone of Influence
SRK Consulting: Project No: 506503 Socio-Economic Study Page 1
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
1 Introduction
Background
Eskom owns and operates thirteen power stations in South Africa, and is responsible for generation,
transmission and distribution of electricity to South Africa. Of the thirteen power stations, eleven are
located in Mpumalanga Province. Most of these power stations are nearing their end of life, and
Eskom has commenced with the Generation Fleet Renewal Project to consider whether the
continuation of these power stations could play a role in meeting the electricity demand in South
Africa cost effectively. Eskom has identified four renewal options for consideration: refurbishment,
repower with biomass or gas, demolish and rebuild, and decommission).
The selection and identification of a preferred option will have implications for Eskom, the
communities surrounding the power stations, and the country as a whole. Eskom is therefore taking
the opportunity to proactively assess and understand the potential technical, financial and socio-
economic implications of the renewal options. The socio-economic considerations are to compliment
the technical and financial studies, since the socio-economic factors may have a significant
influence on the overall success of the chosen option as well as the long-term wellbeing and
sustainability of the affected communities.
SRK Consulting (SA) (Pty) Ltd (SRK) was appointed by Eskom to complete an early pre-feasibility
stage socio-economic assessment of the renewal options for four power stations: Hendrina, Arnot,
Komati and Camden. Camden Power station is located in the Msukaligwa Local Municipality in the
Mpumalanga Province. Arnot, Hendrina and Komati power stations are located in the Steve
Tshwete Local Municipality in the Mpumalanga Province. Figure 1-1 below provides an overview of
the locations of these four power stations.
Figure 1-1: Location of Arnot, Hendrina, Komati and Camden power stations
SRK Consulting: Project No: 506503 Socio-Economic Study Page 2
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Overview of Renewal Options
As mentioned, Eskom identified four fleet renewal options:
Option 1A/1B: Lifex and Modernisation (Refurbishment);
Option 2: Repower with Biomass or Gas;
Option 3A/3B: Rebuild as PF or CFBC (Demolish and rebuild); and,
Option 4: Do not renew (Decommission)1.
Technical studies concluded that Option 2 was not technically viable, and this option is therefore
not assessed as part of this study. Figure 1-2 provides an overview of the three options under
consideration. Option 1A/1B is referred to as Option 1 in this report (506503/F1), and Option 3A/3B
is referred to as Option 3.
1 While generally known as decommissioning, this option has other variations such as:
- To continue operating the power station five years at a time until there is certainty on CO² budgets and demand profiles - Sell the power station - Mothball the plant - Utilise power plant components as spares for Eskom plants
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
ocio
-Eco
no
mic
Stu
dy
Pa
ge
3
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
1-2
: P
ow
er
sta
tio
n r
en
ew
al o
pti
on
s
SRK Consulting: Project No: 506503 Socio-Economic Study Page 4
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Socio-Economic Study Objectives
The business objective of the project is to ensure that fleet renewal cost effectively contributes to
meeting the electricity demand in South Africa, generating further revenue from electricity sales. In
light of the business objective, this pre-feasibility socio-economic study has to meet the following
key objectives:
Undertake a baseline study to understand the socio-economic landscape of the project’s Zone
of Influence (ZoI) (local and regional2), and understand the status quo in relation to the national
baseline;
Assess the socio-economic implications of the proposed project options and associated
infrastructure;
Identify stakeholder issues, opportunities, potential socio-economic impacts and risks, and
areas that would require mitigation for the options;
Assess the resilience/vulnerability of the communities in the context of the options; and,
Place the socio-economic considerations of the local communities into the broader context of
national priorities and sustainable development goals (social, economic and environment).
To meet the above key objectives, the socio-economic study needs to answer the following
secondary objectives:
Socio-Economic Baseline Assessment
Determine the socio-economic ZoI at each of the four sites;
Determine the current status of the prevailing socio-economic baseline at each of the four sites
(local and regional), historical and current social trends – population demographics, education
levels, income, migration, employment, health and social well-being, infrastructure and social
services;
Indicate labour and skills availability in the project area;
Identify predominant cultural and heritage aspects for consideration;
Establish links and integration of settlements with other regional communities;
Assess level of vulnerability/self-sustenance of communities in terms of how adaptive they will
be should any of the options be implemented;
Examine the contribution of the ZoI economy to the regional and provincial economy;
Review local development plans to establish local economic development (LED) in the area
including the nature and level of business activity, and indicating the level of dependence on
Eskom expenditure;
Determine whether or what the local institutional, legal and political aspects are; and,
Rate and rank the various options in light of the above information.
2 Regional refers to the relevant district and local municipalities, and local refers to communities adjacent to the power stations on ward level
SRK Consulting: Project No: 506503 Socio-Economic Study Page 5
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Stakeholder Engagement
Present information on stakeholder engagement including:
Identification of relevant stakeholders (local and surrounding communities)3 with an indication
of their roles and interests; and,
Indicate current stakeholder engagement with Eskom with details regarding any relevant
commitments and/or agreements between Eskom and stakeholders/authorities.
Overarching National Priorities and Sustainable Development Goals
Identify and agree on a list of relevant national priorities and sustainable development goals as
per the South African National Development Plan (NDP) 2030 and Sustainable Development
Goals (SDGs); and,
Determine the extent to which the three options (refurbish, demolish and rebuild, decommission)
is synergistic or conflicting with the identified priorities and goals.
Impact Assessment and Options Analysis
Develop a methodology to rank and weigh the various project alternatives. This will consider
the added value to the national development goals and priorities as well as other socio-
economic considerations identified in the social baseline;
Identify up and down-stream activities that may be affected by the proposed alternatives
including water use/demand; and,
Conduct a high-level analysis to determine the potential socio-economic issues for the three
alternatives (locally and regionally).
Risk Assessment
In a risk matrix, for each option, identify high-level socio-economic risks to the project, and ways
in which to address these.
Scope of the Report
To meet the socio-economic objectives, the report (506503/F1) consists of the main components
outlined in Figure 1-3. The study commenced with a project initiation meeting, where after primary
and secondary data sources were consulted to: analyse the macro-economic and socio-economic
baseline, identify national priorities and SDGs relevant to the study, and to identify analyse
stakeholders. The results informed the impact assessment and options analysis, and the risk
assessment. The report (506503F/1) is structured in accordance with the order of the study
components in Figure 1-3.
3 Due to the sensitivity of the project and the fact that it is at early pre-feasibility stage, stakeholder engagement was limitedto discussions with relevant stakeholders at the district and local municipalities and internal Eskom and power station stakeholders
SRK Consulting: Project No: 506503 Socio-Economic Study Page 6
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Figure 1-3: Study components
Methodology
Primary and secondary data sources were consulted to inform the macro-economic and socio-
economic baseline, to identify national priorities and SDGs relevant to the study, and to analyse
stakeholders. Section 8 lists the secondary data sources consulted.
In terms of primary data sources consulted, key informants were divided into the following three
categories: internal corporate stakeholders, internal power station stakeholders, and selected
external stakeholders. External stakeholders included relevant representatives from Nkangala and
Gert Sibande District Municipalities, and Steve Tshwete and Msukaligwa Local Municipalities.
Appendix A contains the details of meetings that were held.
Semi-structured interviews and discussions were conducted with these stakeholders, and a
discussion guide was developed to ensure that all the relevant aspects were covered. Appendix B
contains the discussion guides that were used.
Limitations
The limitations that apply to the socio-economic study are:
Different informants from Eskom provided contradicting information regarding the different
options;
Due to the confidentiality of the project, stakeholder engagement was limited to the two district
and two local municipalities;
Due to differences in timeframes between the socio-economic study and the technical study, it
was not possible to have an integration workshop. This report (506503/F1) uses the technical
information received from the technical team before 13 January 2017 to enhance and inform
the socio-economic study; and,
Technical studies were completed on 30 January 2017, and it is possible that information
changed since 13 January 2017.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 7
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
2 Macro-Economic Baseline Analysis Eskom, as the de facto sole power supplier to South Africa, plays a very important role in the South
African economy. Key roles of Eskom include:
Energy generation, thereby enabling economic activity and development in South Africa;
Contribution to State revenue through taxation;
Employment and skills development through direct and indirect employment and enabling of
wider socio-economic activity; and,
Enabling and driving social development and transformation in South Africa through provision
of power to previously unconnected communities, preferential procurement / employment and
funding of Corporate Social Investment (CSI) programmes.
These are briefly discussed below.
Energy Generation, Enabling Economic Activity and Development
2.1.1 Importance and Role of Energy
Energy, and electricity in particular, is a critical ingredient in modern economies, as it is an input to
nearly every good and service produced in an economy. A lack of access to a reliable source of
power is cited as a main constraint to doing business, before access to finance and corruption, by
nearly 7 out of 10 businesses in Africa (One, undated). A review of nearly 100 studies on the
relationship between energy provision and economic growth identified a clear positive correlation
between energy use and economic growth. Although the causal relationship is not always clear,
energy use is either the cause or the facilitator of economic growth. Insufficient, unreliable or costly
energy is a binding constraint for all sizes of business, especially those operating in the
manufacturing sector (CDC Group, 2016).
However, PRODUSE (2013) note that electricity is a ‘quintessential’ intermediate good and does
not represent an end in itself: it is an input factor to a large set of activities (“uses”) that can improve
welfare, increase productivity or generate income. These, however, also depend on complex
interactions and synergies between other multiple development factors, including other
infrastructure investments and enabling political, socio-economic and cultural conditions, and it is
increasingly recognised that certain “complementary” inputs or services – such as business
development services or access to finance – can increase the chances that access to electricity
leads to significant income generation and poverty alleviation.
The South African economy is relatively well developed and highly reliant on electricity. The
economy is closely linked to energy consumption, meaning that energy use tracks Gross Domestic
Product (GDP). As energy generation was cheap due to an abundance of easily accessible and
cheap coal, South Africa developed an energy intensive industry sector (Winkler 2009 in DEA,
2016). However, energy intensity decreased from 6.99 Mega joules per Rand of GDP in 2002 to
4.18 Mega joules per Rand of GDP in 2009 (DEA, 2016). In South Africa, mining and energy go
hand-in-hand, as mining is an energy intense activity and offers the country access to energy
embedded in the locally abundant coal reserves (DEA, 2016).
Energy use differs between economic sectors in South Africa (DEA, 2016) (Figure 2-1):
The industrial sector is the largest user, consuming 51.0% in 2009. Manufacturing, in particular,
is the most energy intensive sub-sector and includes several energy heavy activities such as
metal smelters, petrochemical facilities, as well as paper, sugar and pulp mills;
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 8
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
The transport sector is a significant energy user, accounting for 22.0% of energy use;
The residential or domestic sector accounted for 15.0% of national electricity consumption;
The commercial sector (including public services) uses relatively little energy at 10.0% in 2009,
but was growing at a fast rate. This sector consists of government, office buildings, financial
institutions, shops, recreation and education; and,
The agricultural sector consumed less than 2.0% in 2009; it uses liquid fuels alongside electricity
and gas.
Figure 2-1: Electricity consumption by different sectors in South Africa
Source: DEA, 2016.
The importance of electricity to the South African economy is exemplified by the estimated economic
impact of load shedding in 2007/08 and 2015. Dawie Roodt estimated that the electricity crunch
from 2007 to 2015 cost the economy more than R300 billion in lost output (Fin24, 2015). Chris
Yelland estimated the cost of Stage 14 load shedding as R20 billion per month, Stage 25 as
R40 billion per month and Stage 36 as R80 billion per month. Based on an approximate South
African GDP of R4 trillion in 2014, load shedding could have reduced GDP by approximately 1-2%
per month of load shedding (Tralac, 2015).
Considered from the aspect of pricing, the 2010 – 2013 price increases in South Africa were
estimated to result in negative impact on GDP of 1.1% and a loss of 16 000 jobs in the overall
economy, based on 2009 employment figures (Eskom, 2011).
2.1.2 Contribution by Eskom to the South African Economy
Eskom generates approximately 90.0% of the electricity used in South Africa (Eskom, 2016), and,
by indirectly enabling economic activity requiring electricity, added some R40 billion in direct value
4 Stage 1 allows for up to 1000 MW of the national load to be shed5 Stage 2 allows for up to 2000 MW of the national load to be shed6 Stage 3 allows for up to 3000 MW of the national load to be shed
Industrial51%
Transport22%
Residential15%
Commercial10%
Agriculture2%
.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 9
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
to South Africa's economy in 2014/15, with an additional R150 billion in indirect and induced value
added (KPMG, undated).
Eskom also directly sources goods and services from different industries, ranging from power plant
maintenance to business services. Procurement amounted to more than R25 billion in 2011 for
normal operations. Eskom’s capital expansion (build) programme adds further stimulus to the South
African economy. By 2014/15, Eskom had invested more than R200 billion (excluding capitalised
borrowing cost) in the build programme. Another R293 billion are expected to be invested in the
build programme by 2021. The direct, indirect and induced economic impact of Eskom’s build
programme between 2008 and 2020 was estimated at R883 billion by KPMG (undated).
A study by Quantec Research found that Eskom’s direct impact on the South African GDP as a
result of its operational and capital expenditure is 3.0%, taking into account only initial impacts and
first-round effects in the economy. When considering economy-wide (indirect and induced) effects,
Eskom’s impact is estimated to be more than 7.0% on GDP (Eskom, 2011). A KPMG study found
that Eskom’s GDP impact, due to Eskom’s generated revenue, represented 5.0% of South Africa’s
GDP in 2014/15 (KPMG, undated).
2.1.3 Costs to the South African Economy Associated with Coal-based Energy
The historic low cost of commercial energy, achieved by not internalising externalities associated
with coal, led to inefficient energy use in South Africa, accelerated national reserve depletion and
pollution and made South Africa one of the highest carbon (greenhouse gas) emitters in the world
(Winkler et al., 2006 in DEA, 2016). In comparison with the low cost at which coal-based energy
could be supplied at the time, renewable energy technologies appeared particularly expensive,
further entrenching structural reliance on centralized coal-based energy. Affordable renewable
power remained largely out of reach for the poor and rural areas and individualised off-grid, mini-
grid or micro generation opportunities were limited. A number of government policy documents have
recently promoted a large-scale switch to more environmentally sustainable energy sources (DEA,
2016).
While Eskom will undoubtedly remain critical to South African energy provision, electricity sales in
key segments, such as industry, mining and commerce, are relatively stagnant, either at or nearing
a 15-year low. Prices of a number of alternative energy generating technologies are declining and
consumers are increasingly defecting from the grid, negatively impacting Eskom’s revenue and
business model. In response to recent price increases and supply concerns, customers are
improving energy efficiency and making their own generation decisions (Eskom, 2016).
Contribution to State Revenue through Taxation
Eskom achieved a net profit after tax of R4.6 billion for the year ending 31 March 2016 (up from
R200 million in 2015), and is thus currently contributing positively to the income of the South African
Government. Eskom operations were liable for income tax of some R2.5 billion in 2016, of which
some R500 million were paid to the South African Government and some R2 billion were deferred
in 2016 (Eskom, 2016).
The effective tax rate for Eskom for the year 2016 was 35.0% (compared to 13.3% in 2015) due to
an increase in non-deductible expenditure (Eskom, 2016). For comparison, the corporate income
tax rate in South Africa in 2016 is 28.0% (SARS, 2016).
KPMG (undated) estimates that Eskom’s new build programme contributed some R85 billion to
government revenue between 2008 and 2014 and will contribute R88 billion between 2015 to 2020
through direct and indirect taxes as well as broader fiscal impacts generated through linkages with
other economic sectors.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 10
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
For many municipalities, electricity supply is also a considerable revenue stream, and some 240
local authorities buy bulk electricity from Eskom and distribute it in their areas of jurisdiction at a
marked-up price (DEA, 2016).
Employment and Skills Development
Eskom had some 48 000 direct employees (permanent staff and full-time contractors) in 2016, up
from 40 000 in 2011 (Eskom, 2016 and 2011). Together with Transnet, Eskom is one of the top
employment-generating State Owned Enterprises in South Africa (Table 2-1).
Indirect employment in sectors providing inputs to Eskom amounted to some 219 083 jobs in
2014/15, while some 290 000 induced jobs were created through the multiplier effect of Eskom’s
salaries and wages (KPMG, undated).
Table 2-1: Employees in State Owned Enterprises in 2010
State Owned Enterprise Sector Employees (in 2010)
Transnet Transport 45 564
Eskom Energy 39 222
South African Airways Transport 7 989
Denel Defence 5 067
South African Broadcasting Corporation Communication 3 346
Airports Company South Africa Transport 2 582
South African Forestry Company Forestry 2 255
South African Express Airways Transport 839
Alexkor Mining 112
Broadband Infraco Communications 79
Source: Klopper (2010).
In 2011, Eskom provided its workforce with 298 000 training days, equivalent to an average of seven
days of training per employee, which represented an investment of R998 million. In addition, Eskom
trains current and potential business partners and creates training opportunities at its major
suppliers (Eskom, 2011). Eskom also runs additional skills development programmes to train
engineers, technicians and artisans to meet Eskom’s future need for skilled workers (Eskom, 2011).
Eskom procures from a wide range of industries and service providers, including mining,
construction, cement and steel manufacturing and manufacturers of machines and other industrial
equipment. The jobs that are directly and indirectly supported through Eskom’s activities are
distributed and require a wide range of different skill sets, thereby benefitting people from different
educational backgrounds and regions and stimulating economic diversification in South Africa.
(Eskom, 2011).
At least 50.0% of procurement in Eskom’s new build programme is sourced locally (KPMG,
undated). KPMG (undated) estimates that the new build programme sustained some 763 000 direct,
indirect and induced jobs between 2008 and 2014. This figure rises to 783 000 direct, indirect and
induced jobs that are expected to be sustained by the new build programme between 2015 and
2020.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 11
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Enabling and Driving Social Development and Transformation
2.4.1 Role of Energy in Human Development
Electrification is deemed to have strong social benefits above and beyond economic growth.
Electrification, particularly of rural areas, is associated with improved literacy rates, health and
general living conditions as well as new prospects such as the ability to work at night and business
and trade expansion. Electrified households in Bangladesh have demonstrated higher improvement
on all quality of life indicators, including life longevity, per capita real income and human
development index, than households that are not electrified (GENI, 2007). In Brazil, electrification
was associated with a modest increase in house values and a significant increase in the Human
Development Index (HDI) in the connected area (Lipscomb et al, 2013).
Such improvements are achieved by allowing families to allocate time more effectively, e.g. by
reducing the time spent collecting firewood and/or extend working/learning hours into the night,
providing access to modern technology and information and enhancing people’s perception of safety
through electric lighting. The domestic burden may be reduced particularly for women, thus
contributing to a reduction in the gender gap. Improved health outcomes can be achieved by
enabling refrigeration (of medicines and food) and medical technologies. Indoor pollution can be
reduced or avoided through displacement of domestic wood and coal burning (Eskom, 2011, IEG,
2008).
However, while a better HDI is associated with higher levels of electricity access across the world,
the magnitude of the impact on HDI varies among countries with the same level of energy access
(Iyer, 2013) (Figure 2-2).
Figure 2-2: Human Development Index versus electrification rates
Source: Eskom, 2011.
As noted with regards to energy’s role in enabling of economic activity, electricity is a ‘quintessential’
intermediate good and does not represent an end in itself. Cook (2013) notes in this context that
rural electrification programmes are most effective when implemented with complementary
infrastructure, including educational initiatives that influence change to enable the users of electricity
to put energy to productive uses; such programmes are not normally part of rural electrification
programmes.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 12
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
2.4.2 Contribution by Eskom to South African Electrification
Energy inequality was deeply entrenched in South Africa by Apartheid spatial development patterns
that created ‘whites only’ towns and cities with ‘blacks only’ dormitory townships at some distance
from the main electricity networks. These spatial patterns remain in existence even where the
townships have been swallowed by urban growth, and hence perpetuate the inequitable access to
affordable energy and economic opportunities (SEA, 2011 in DEA, 2016).
Eskom connected more than four million users to electricity from 1991 to 2011 as part of its
electrification programme. By 2011, 83.0% of South African households had access to electricity,
with some 2.5 million households remaining unconnected. In the same period, Eskom brought
electricity to more than 11 000 schools and more than 350 clinics throughout South Africa. By 2016,
almost 90.0% of South African households had access to electricity (eNCA, 2016).
Initially high connection rates (averaging at 290 000 connections per year between 1994 and 2000)
slowed to less than 200 000 new connections per year on average between 2001 and 2009 (Eskom,
2011). Some 158 016 new electrification connections were achieved in 2016 (compared to 159 853
in 2015), below the target of 194 374 (Eskom, 2016). Eskom and municipalities are planning to
spend R17.6-billion between 2017 and 2020 to connect more than 840 000 additional households
to the national grid, and 70 000 households to non-grid solar electrification programmes (eNCA,
2016). Universal access to electricity is envisaged by 2025 (Eskom, 2016).
As such, by significantly increasing access to electricity across rural and poor urban areas, Eskom
is deemed to make a significant contribution to human and social development across South Africa.
However, affordability of electricity by households connected to the grid remains a challenge, as
exemplified by the number of illegal connections and outstanding payments. Cook (2013) also notes
that, in an international context, connection and electricity charges continue to represent serious
constraints for the poor.
Poor households still constitute a very small proportion of residential electricity consumption and
account for 0.5% of total national electricity consumption (Winkler & Tait, 2012 in DEA, 2016). At
the same time, poor households spend up to 20.0% or more of their household budget on energy,
compared with 2-3% for wealthier households (SEA, 2006 in DEA, 2016). The resulting energy
poverty, despite being connected to the grid, results in remaining challenges such as inadequate
access to appropriate and safe energy sources and appliances, hazards such as fires and burns
due to illegal connections and compromising of income-generating activities. As noted above,
electrification programmes should be accompanied by complementary programmes and an
appropriate pricing/subsidy structure.
2.4.3 Contribution by Eskom to Transformation and Economic Empowerment
South Africa's government implements a Broad-Based Black Economic Empowerment (B-BBEE)
strategy to redress the political, social and economic inequalities of the past. The fundamental
objective of the B-BBEE is to advance economic transformation and enhance the economic
participation of black people in the South African economy (DTI, undated) and to further create
capacity within the broader economic landscape at all levels through skills development,
employment equity, socio economic development, preferential procurement, enterprise
development (especially of small and medium enterprises), promoting the entry of black
entrepreneurs into the mainstream of economic activity and the advancement of co-operatives
(Economic Development Department, undated).
Eskom actively contributes to transformation and the implementation of B-BBEE through notably
preferential procurement and employment. Some 82.0% of Eskom’s procurement was spent on B-
BBEE compliant providers in 2016, and racial equity in senior management is 61.0% (Eskom, 2016).
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 13
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
2.4.4 Community Development and Funding of CSI Programmes
Eskom also contributes to community development through Corporate Social Investment (CSI)
programmes through the Eskom Foundation, with a focus on job creation, skills development and
poverty alleviation. In 2016, Eskom committed R103.6 million in CSI initiatives (on 184 projects
impacting 302 736 beneficiaries), up from R115.5 million in 2015 (on 239 projects impacting 323 882
beneficiaries) and down from R133 million (on 231 projects impacting 357 443 beneficiaries) in 2014
(Eskom, 2016).
The Eskom Foundation focuses on socio-economic development needs in the following key areas:
Support to small and medium enterprises (through networking, training and incubator support);
Education programmes (from pre-school to tertiary level);
Health support programmes (through mobile clinics and provision of equipment); and,
Community development and welfare programmes (such as funding specific needs, food
security and facilitating employee volunteering).
The effectiveness of Eskom’s CSI spending in community development will depend on a number of
factors, and analysis thereof falls outside of the scope of this study.
2.4.5 Regional/Local Perspective
The economy of the Steve Tshwete Local Municipality, where three of the four power stations are
located, is dominated by mining, manufacturing and finance (Steve Tshwete Local Municipality,
2015). While Eskom contributes to the local economy, other sectors, such as mining and steel
manufacturing, contribute significantly more to GDP and employment than the electricity/utilities
sector (see Table 2-2) (Steve Tshwete Local Municipality, 2015).
Table 2-2: Key economic sectors of the Steve Tshwete Local Municipality
Sector Contribution to GDP Contribution to Employment
Mining 45.8% 20.7%
Manufacturing 17.2% 6.5%
Community Services 9.4% 13.6%
Finance 8.7% 11.3%
Trade 7.1% 21.4%
Electricity/Utilities 5.2% 2.5%
Source: Steve Tshwete Local Municipality (2015).
Limited quantitative information is available on Eskom’s economic role at the regional/local level.
The current economic contribution of the operation of the four power stations relates primarily to:
Long-term direct employment during operations of 690 employees at Hendrina power station
and 710 employees at Arnot power station, 470 employees at Komati power station and 373
employees at Camden power station;
Indirect employment: at Eskom, this amounts to twice the number of direct employees, deemed
to support a total population 13 times the number of direct employees (Eskom, 2011); and,
Procurement spending related to operating the above power stations: as the power stations
have been operating for many years, it is assumed that many of the services procured during
operations are available in and sourced from the region, thus benefitting the local economy.
Most negative externalities (impacts) associated with electricity generation, on the other hand, are
also localised in the vicinity of the power stations, including impacts on water quality and quantity,
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 14
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
air quality (and associated costs of health care associated with respiratory diseases) and additional
mining-related impacts (such as sterilisation of farmland and compromised tourism opportunities)
(DEA, 2016).
Economic Implications of Decommissioning Power Stations
2.5.1 Continued Operation
Two end of life options include the continued operation of the power stations – either as refurbished
(Option 1) coal-fired power stations or as demolished and rebuild power stations (Option 3). Both
are discussed in this section, as the overall impacts will be similar.
The economic impacts of upgrading and continuing to operate the four power stations are likely to
be more limited than those of decommissioning the plants, and relate particularly to the following
aspects, which may manifest at a national and/or regional level:
Increase in procurement spending: It is expected that substantial procurement spending will
be made during refurbishment/modification of the power stations, far above levels associated
with ongoing operations-related procurement. As goods and services required during
refurbishment/modification are likely to differ from those required during normal operations,
procurement spending may go to different service providers than those historically working with
Eskom in the region, and possibly to providers outside of the region if the skill/service does not
exist locally. High procurement spending is expected to last over the short- to medium-term until
works are completed, whereupon lower operations-related procurement would resume;
Cost of energy: The future cost of energy, relative to the current cost, will depend on the
procurement and operating costs of the technology installed in the refurbished/modified power
stations. An increase in the cost of energy could result in reduction in economic output similar
to those estimated for historic price increases and/or stimulate further energy efficiency gains;
Energy supply: The quantity of generated energy is likely to remain stable in the long run,
assuming the refurbished/modified power stations will have a similar installed capacity and
operating workforce as the present power stations. A drop in energy-generating capacity can
be expected during the refurbishment / modification of the plants;
Employment: The number of jobs at the power plants is likely to remain stable in the long run,
assuming the refurbished/modified power stations will have a similar installed capacity and
operating workforce as the present power stations. Different skills and workforces might be
required during refurbishment/modification of the plants, which may lead to short- to medium-
term fluctuations in job opportunities in the region.
Any induced cumulative effects on coal mines in the area if power stations are modified to operate
on alternative energy, through reduced demand from the power stations, are likely to result in a
decrease in employment in the regional mining sector. Depending on the alternative energy source,
the loss of mining jobs may be compensated by increased employment in other sectors providing
the alternative energy source.
2.5.2 Decommissioning
As per section 1 of this report, decommissioning options include continuing operating the power
station for five years at a time until there is certainty on carbon dioxide (CO2) budgets and demand
profiles, selling the power station, mothball the plant or utilise power plant components as spares
for other Eskom plants. All are classified as decommissioning and are discussed in this section, as
the overall impacts will be similar, although impacts are likely to occur more gradually over a longer
timeframe with the slow stripping of power stations for spares.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 15
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
National Perspective
The key potential economic impacts at a national level of decommissioning the four power stations
are related to the following:
Reduction in energy supply: The impact is deemed minimal at a national level if the loss of
~6 500 MW installed capacity as a result of the decommissioning of the four power stations is
replaced with a similar or higher capacity at other facilities. If lost power generating capacity is
not replaced, a shortage in energy supply could result in loss of economic output similar to that
experienced during load shedding in 2007/08 and 2015;
Cost of energy: The future cost of energy, relative to the current cost, will depend on the
procurement and operating costs of the technology replacing the decommissioned power
stations. An increase in the cost of energy could result in reduction in economic output similar
to that estimated for historic price increases and/or stimulate further energy efficiency gains;
and,
Loss of jobs: The four power plants currently employ some 2 250 staff. Even if all of these jobs
are lost in decommissioning, the impact is deemed minimal at a national level if the number of
direct and indirect jobs lost at the four power stations following decommissioning is offset by
jobs created in other / new power generating industries in South Africa.
Regional/Local Perspective
The economic implications of decommissioning at a regional and local level are, to some extent, a
reversal of the impacts and benefits experienced during operation:
Loss of jobs: The number of directly and indirectly employed staff at the four power stations is
likely to reduce as soon as decommissioning begins, as it is anticipated that a smaller workforce
is required for the decommissioning phase. Depending on timing, job losses during
decommissioning of the four power stations could be cumulative with the reduction of
construction jobs experienced in the region following the construction of newly built power
stations (e.g. the Kusile construction workforce of up to 11 000 reduces to less than 1 000
operation staff); and,
Reduction in procurement spending: It is expected that substantial procurement spending
will be made during decommissioning. However, as goods and services required during
decommissioning are likely to differ from those required during operations, procurement
spending may go to different service providers than those historically working with Eskom in the
region, and possibly to providers outside of the region if the skill/service does not exist locally.
Following decommissioning, procurement spending would cease.
As the electricity / utilities sector makes a comparatively limited contribution to local GDP and
employment, the overall negative impact on the local and regional economy from decommissioning
the power stations is likely to be relatively limited. However, any induced cumulative effects from
the decommissioning on coal mines in the area, through reduced demand from the power stations,
are likely to have a higher and cumulative impact on the regional economy.
These impacts are unlikely to be offset at the local scale, as may be the case at national scale, as
jobs created in alternative energy-generating industries (e.g. renewables, nuclear or more modern
technology) may not be accessible to the existing workforce at the four power plants as they may:
Require different skills; and,
Be located in a different region of South Africa, which is likely to already have a local labour
force in need of employment.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 16
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Opportunities for Enhancement
The following measures may enhance or mitigate the economic impact from decommissioning the
four power plants:
In cooperation with the municipality, identify alternative projects that can provide continued
employment to workers after decommissioning;
In cooperation with the municipality, encourage projects and/or networks that provide training
and support for small and medium enterprises. Initiate such programmes as early as possible;
Provide workers with personal finance and skills training to manage the transition period into
new employment; and,
Maintain good communication with workers about the decommissioning process.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 17
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
3 Socio-Economic Baseline Analysis This section describes the socio-economic baseline characteristics and socio-economic trends. An
emphasis is placed on aspects that may potentially be impacted by the various options. This
information, in turn, informs the development of the criteria for assessing options. In summary, the
following key characteristics are considered in the development of the impact assessment and options
analysis (Figure 3-1):
Figure 3-1: Social issues
Provincial Context Summary
The focus of this section is to provide a context for the ZoI as identified in section 3.3. A baseline of
the province is also important as the implementation of one of the three options may potentially create
impacts on a provincial level (Figure 3-2).
Alternative Employment Opportunities:Will there be adequate opportunities for employmentelsewhere should an option result in job losses?
Procurement:Will there be sufficient alternative opportunities for local contractors should anoption result in loss of contracts with local contractors?
Service Delivery:Will local services to communities be impacted negatively?
Health Impacts:Will an option contribute to negative environmental impacts?
Education and Skills:Will there be sufficiently educated and skilled local people to work at the powerstations should the preferred option require additional staff/contractors with specific skills andexperience?
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 18
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Figure 3-2: Province, municipalities and wards relevant to the study7
3.1.1 Demographic Overview
The Mpumalanga Province comprises of three district municipalities, which are in turn, divided into 18
local municipalities. The province has a population of 4 039 939 people. The population of 2.6 million
in 1996 has grown to over 4 million in 2011, now representing approximately 8.0% of the South African
population (South African Census, 2011). Table 3-1 provides the structure of this population. Black
Africans are in the majority, representing 90.6% of the total population.
Table 3-1: Population structure of the Mpumalanga Province
Population Group Male Female Total
Black 1 781 368 1 880 850 3 662 219
White 151 557 152 038 303 595
Coloured 18 149 18 462 36 611
Indian/Asian 16 165 11 753 27 917
Other 6 817 2 780 9 597
Total 1 974 055 2 065 883 4 039 939
Source: StatsSA, 2011.
3.1.2 Provincial Economy
Economic growth
All four of the power stations under review in this report are located in Mpumalanga Province. The
Mpumalanga Province is considered the generation hub of South Africa’s electricity network due to
the concentration of power stations in this region and their close proximity to the large centres of loads.
Currently, 11 of 13 Eskom coal-fired power stations, namely, Arnot, Camden, Duvha, Grootvlei, Hendrina,
Kendal, Komati, Kriel, Matla, Majuba and Tutuka are located in the Mpumalanga Province.
7
For the purposes of this report, “Local Municipality” and “District Municipality” have been abbreviated in figures to LM and DM respectively
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 19
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
In addition to the 11 coal-fired power stations, one of the two Eskom power stations that are currently under
construction, namely, Kusile Power Station is located in the Mpumalanga Province (Eskom Transmission
Development Plan, 2016-2025).
In the mid-1990s, the Mpumalanga Province had one of the fastest growing economies in South Africa.
Although it is one of the less populated and second smallest of the provinces in the country, the
Mpumalanga Province has the fourth largest economy, based largely on the rich natural resources of
the area. However, as with the rest of the South African economy, this growth rate has slowed down
considerably (Mpumalanga Department of Economic Development, Environment and Tourism
(MDEDET), 2009).
The main industrial and manufacturing activities in the Mpumalanga Province include iron, steel,
stainless steel, petrochemicals and chemical products, agricultural products, mining, power
generation, timber and wood products and food processing. The potential for further development in
these sectors, as well as tourism, is considerable. The favourable location of the province enhances
its development potential with the Maputo Corridor linking the province to Maputo in Mozambique, the
close proximity to the substantial Gauteng market and the rail and road infrastructure allowing access
to ports at Durban and Richards Bay (Mpumalanga Provincial Government, 2016).
The Mpumalanga Province’s economy is dominated by mining, mostly coal for the Eskom power plants
located in the province, although some of the coal is sold to international clients. As a result, it benefited
from the commodity boom that lasted from 2003 to 2011 (Real Economy Bulletin, 2016). However, it
has experienced much slower growth since then. The Mpumalanga Province also has extensive heavy
industry, which forms part of the long-standing Highveld complex, and a strong commercial agricultural
sector. These industries have driven its growth since 2011.
The strength of the province’s major sectors has meant it has been mainly at, or above, the national
average for employment and income levels. Despite this, two fifths of the population (40%) –
substantially more than the national average – live in former homeland regions, where infrastructure,
employment and incomes lag behind national norms (Real Economy Bulletin, 2016).
While the Mpumalanga Province, with 4.3 million residents, accounted for 8.0% of South Africa’s
population in 2014/5, it contributed 7.0% of the GDP. In 2014, the real economy (represented by
agriculture, mining, manufacturing and construction) made up 40.0% of its output. The real economy
sector was dominated by mining, at 22.0% of the provincial economy as per Statistics South Africa
(StatsSA, 2016).
The average annual growth rate for the country and the Mpumalanga Province over the period 1996
to 2011 was 3.2% for South Africa and 2.7% for Mpumalanga, respectively. The NDP targets average
national GDP growth of over 5% up to 2030 (StatsSA, 2016).
The Mpumalanga Province had a labour force of approximately 1.9 million individuals in the third
quarter of 2015 (StatsSA, 2016). This has decreased by approximately 40 000 in the fourth quarter of
2015 (StatsSA, 2016). This is predominantly due to the international and national economic downturn.
The province has an estimated unemployment rate of 25.7% (StatsSA, 2016).
Manufacturing is the biggest contributor to
employment at 40.5%. Coal dominated mining
employment in Mpumalanga, producing mainly to
supply Eskom as well as for export. While Eskom
may take higher volumes of coal, the majority of the
profits earned come from the export market. Thus,
the dependency on coal exports is also high.
With coal mining dominating employment in
the province, the decommissioning of any
power stations will lead to significant job
losses in an already stressed socio-
economic environment.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 20
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Generally, gold mining saw job losses during the commodity boom, while platinum mining, coal and
iron ore created employment. According to Department of Mineral Resources data, total mining
employment in the Mpumalanga Province climbed from 53 500 in 2003 to 102 000 in 2011 and over
103 000 in 2015. Total employment in Mpumalanga constituted 7.5% of employment in the country in
2014 (Real Economy Bulletin, 2016). The area’s dependency on minerals and mineral prices implies
that a downturn in commodity prices may affect the economic growth of the area.
Regional Context
3.2.1 Introduction
For the purpose of this report, the regional ZoI describes the district and local municipal context of the
four Eskom power stations under discussion. The Arnot, Hendrina and Komati power stations are
located in the Steve Tshwete Local Municipality within the Nkangala District Municipality, while
Camden power station is located in the Msukaligwa Local Municipality in the Gert Sibande District
Municipality(Figure 3-3).. Appendix contains the detailed baseline description of the regional ZoI.
Figure 3-3: Allocation of district and local municipalities in the regional ZoI
3.2.2 Summary of Baseline
This section is based on StatSA (2011) information and summarises the detailed description in
Appendix C.
Nkangala District Municipality and Steve Tshwete Local Municipality
Nkangala District Municipality has six local municipalities namely, Steve Tshwete, Dr JS Moroka,
Emakhazeni, Emalahleni, Thembisile Hani and Victor Khanye;
Approximately one third of the population of Mpumalanga Province lives in the Nkangala District
Municipality;
Nkangala District Municipality has a higher average annual population growth rate than the
province;
Nkangala District Municipality is considered an energy, mining and trade hub of the province, and
contributed to close on half of the provincial GDP in 2014;
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 21
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Coal mining and energy generation are big sectors in Steve Tshwete Local Municipality, and as a
result, Steve Tshwete Local Municipality is a significant contributor to the Nkangala District
Municipality economy, contributing to a third (33.0%) of the district GDP in 2014.
Gert Sibande District Municipality and Msukaligwa Local Municipality
Gert Sibande District Municipality has seven local municipalities, namely Msukaligwa, Chief Albert
Luthuli, Dipaleseng, Dr Pixley Ka Seme, Govan Mbeki, Lekwa and Mkhondo;
Gert Sibande District Municipality’s economy is largely based on manufacturing, which contributed
to close on two thirds of the GDP in 2013; and,
Msukaligwa Local Municipality’s economy is based largely on finance, community services,
transport, trade and mining.
Regional Patterns
The following general patterns for the region are evident:
The majority of the population in the region is comprised of Black Africans;
Apart from Gert Sibande District Municipality, settlement distribution is largely urban, with
dispersed farm settlements throughout the Steve Tshwete Local Municipality in Nkangala District;
Steve Tshwete Local Municipality has a high population growth rate, which exceeds all other local
municipalities in Nkangala District Municipality;
Across the regional ZoI, the majority of the population is of working age and below the ages of 35,
with a high dependency rate associated with a significant youthful population below 18 years old;
Females account for the larger portion of the populations in all but Steve Tshwete Local
Municipality, where there is a larger male population which may be liked to high levels of migration
into Steve Tshwete Local Municipality;
Migration into the regional ZoI is above national average (0.9 migrants per 1 000 people), which
could be for a number of reasons including push factors from sending countries as well as pull
factors from South Africa, traditionally a labour intensive economy;
Land use in the regional ZoI can be broadly defined as largely residential, with more agricultural
(farm) land use occurring in Gert Sibande District Municipality and Msukaligwa Local Municipality.
Industrial land uses occurred proportionately more in Steve Tshwete Local Municipality than the
other local and district municipalities, while informal residential settlements were notably higher in
Msukaligwa Local Municipality;
Across all four municipal designations, most houses are brick structures on separate stands or
yards;
Steve Tshwete Local Municipality has the highest percentage of working-aged (15+ years)
employed people and the lowest percentage of economically inactive people;
Nkangala District Municipality has the higher unemployment rate of the two districts, however it is
marginal;
Both community services and trade feature as one of the top three employment sectors in the
regional ZoI. The locality of the municipalities on important transport and trade corridors can be
seen as the reason for the high employment in the trade sector;
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 22
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Annual household income is distributed similarly across the four district and local municipalities.
Nkangala District Municipality has the greatest prevalence of no income. However, Steve Tshwete
Local Municipality has the lowest instance of no income households. Excluding Steve Tshwete
Local Municipality, the most prescribed income bracket is R19 601-R38 200, which is classified
as a low to middle income bracket;
The level of education in all four municipalities is better than the provincial average, with Nkangala
District Municipality having the best education out of the two district municipalities;
Gert Sibande District Municipality has the higher prevalence of non-educated people over 20 years
old; primary education prevalence was higher in both the Gert Sibande District Municipality and
Msukaligwa Local Municipality, when compared to Nkangala District Municipality and Steve
Tshwete Local Municipality. Secondary education levels of Gert Sibande District Municipality are
in line with the Nkangala District Municipality in Gert Sibande District Municipality and Msukaligwa
Local Municipality, but lower than Steve Tshwete Local Municipality. Tertiary education, like much
of South Africa and Mpumalanga, is low, which can be attributed to (amongst other reasons) lack
of tertiary education campuses in the municipalities (other than Further Education and Training
(FET) colleges) as well as financial constraints presented by attending tertiary institutes;
Human Immunodeficiency Virus/Acquired immunodeficiency syndrome (HIV/Aids) is a common
cause of death across the municipalities, and Aids related deaths including Tuberculosis (TB),
pneumonia and diabetes could mean that HIV/Aids related deaths are in fact higher; and,
Road accidents and external accidental incidents feature highly and could be an indication of poor
road conditions as well as negligent driving and un-roadworthy vehicles.
Local ZoI Context
For the purpose of this report, the local ZoI is defined as municipal wards in which each Eskom power
station is located or has significant influence in. As such, the ZoI’s are defined as per Figure 3-4. For
detailed socio-economic and demographic information of each ZoI, please see Appendix D. A socio-
economic and socio-demographic summary is provided in Table 3-2.
Figure 3-4: ZoI wards demarcation
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 23
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
3.3.1 Hendrina ZoI
Overview
Hendrina power station is located in Ward 3 of the
Steve Tshwete Local Municipality, approximately
17 km North-West of Hendrina and 35km East of
Emalahleni. The first operations were
commissioned in 1970 making it the largest in the
world with ten turbines. The decommissioning
date for Hendrina power station is 20308.
Hendrina is supplied by coal from the surrounding
Optimum Colliery and Woestalleen Mines.
Additional coal is also trucked in to ensure that the
necessary stockpile levels are maintained.
Figure 3-5: Hendrina power station
Settlement Distribution and Density
The Hendrina ZoI is bordered by Emalahleni and Kriel to the west, Belfast and Carolina to the East
and Bethal and Ermelo to the South. It is situated in the Mpumalanga coal fields and as such, much
of the land in the ZoI is owned by private mining companies and Eskom. A Google Earth satellite
image from August 2016 is provided in Figure 3-6.
The Hendrina ZoI is largely urban, and the
current settlement distribution and settlement
dynamics within the Hendrina ZoI are indicative
of this. The highest concentration of settlement
is within Hendrina, Kwazamakuhle and
Pullenshope. It is evident from time-lapse
satellite imagery (Google Earth, 2016) that the
expansion of the towns and other human
settlements has, to an extent, been limited by
topography, service infrastructure and the
historical demarcation of the area.
The Hendrina ZoI is part of the N4 Maputo Corridor, and settlement in the area has been dictated by
transportation routes economics and service requirements (N11 and N4). Privately owned land with
commercial coal mining, power generation facilities and the N4 highway have limited the plausibility of
urban, residential expansion outwards in parts.
8 As per the document: Enquiry on requirements for Environmental Impact Assessment (EIA) for the Generation Fleet Renewal Programme: Option 4 Do not Renew (Eskom, 2016)
Pullenshope is considered as the ‘host’
community for Hendrina. This town was
originally constructed to house Eskom
employees. Kwazamakuhle Township and
Hendrina Town are also considered important
as they are the main receptors of fugitive dust
and air emissions from the stacks – Hendrina
power station, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 24
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
ESKOM SOCIAL BASELINE HENDRINA ZOI LOCALITY
Project No. 506503
Figure 3-6: Hendrina ZoI locality
Source: Google Earth, 25 August 2016.
3.3.2 Arnot ZoI
Overview
Arnot power station is located approximately
34km South-East of Emalahleni within Ward 7 of
the Steve Tshwete Local Municipality. The power
station is only 20km North-East of Hendrina and
therefore has many similarities, particularly in
terms of stakeholder relations and zone of
influence.
The first of six units at Arnot power station was
originally commissioned in 1971, with a current
anticipated decommissioning date of 20369.
Many parts of the power stations, including the
boilers, have already passed their anticipated life
cycle.
Figure 3-7: Arnot power station
The Exxaro Mine that has always supplied coal to the power station has now closed, therefore the
required coal supply is now transported via road and conveyor.
9 Ibid (Eskom 2016)
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 25
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Settlement Distribution and Density
StatsSA’s Census 2011 and settlement
patterns viewed on Google Earth (2016)
suggest the ZoI population lives largely in
urban areas. The highest concentration of
human settlement is within the settlements
of Arnot and Rietkuil town. It is evident that
the expansion of the towns has, to an
extent, been limited by commercial
agricultural and mining operations in the area, and many households are located on farms. Rietkuil
itself is a mining town, and has developed around coal mining operations on its peripheries. The Arnot
ZoI is bordered by Emalahleni in the northwest and is serviced by the N4 and R104 in the North of the
ward. Commercial agriculture is largely found in the north of the Arnot ZoI, with mining prevalent in the
southern quarters of the Arnot ZoI. A Google Earth image from June 2016 is provided in Figure 3-8.
ESKOM SOCIAL BASELINE ARNOT ZOI LOCALITY
Project No. 506503
Figure 3-8: Arnot ZoI locality
Source: Google Earth, 25 June 2016.
While Rietkuil is considered the host
community, Hendrina and Kwazamakhule
are also included. Arnot often partners with
Hendrina as they share this ZoI – Arnot
power station, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 26
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
3.3.3 Komati ZoI
Overview
Komati power station is located approximately
37km South of Emalahleni within Ward 4 of
the Steve Tshwete Local Municipality. The
power station is 40km South-East of
Emalahleni and is just under 20km from the
Hendrina power station.
Komati power station was one of the first
pulverised fuel firing stations and its first of
nine units was commissioned in 1961 and is
due to be decommissioned in 202610. Many
parts of the power station, including the
boilers, have already passed their anticipated
life cycle.
Figure 3-9: Komati power station
The Koornfontein Mine supplies coal to the power station, while surplus coal requirements are trucked
in from elsewhere.
Settlement Distribution and Density
The Komati ZoI is bordered by Pullenshope to the
north east and Hendrina to the east. It is situated in
the Mpumalanga coal fields and as such, much of
the land in the ZoI is owned by private mining
companies, private and commercial farm owners
and Eskom. The Komati ZoI is approximately two
thirds urban and one third rural; however, the urban
population are concentrated in Komati, in the north
of the ward. Apart from Komati town, households
are largely located on farms and disbursed.
The ward is small and land area is largely occupied by Komati Mine and power station in the north and
farms elsewhere. The settlement pattern has been largely influenced by mining and agriculture in the
area. Important road service infrastructure in and outside of the ZoI includes the R35 and the R542. A
Google Earth image from April 2016 is provided in Figure 3-10.
10 Ibid (Eskom 2016)
While Komati village and Blinkpan are
considered the host communities, and
Hendrina fall into the secondary ZoI.
Adjacent farmers are also considered to
be part of the primary ZoI.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 27
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
ESKOM SOCIAL BASELINE KOMATI ZOI LOCALITY
Project No. 506503
Figure 3-10: Komati ZoI locality
Source: Google Earth, 16 April 2016.
3.3.4 Camden ZoI
Overview
Camden power station is located approximately
19km South-East of Ermelo within Ward 11 of
the Msukaligwa Local Municipality.
The first of eight units at Camden power station
was originally commissioned in 1967. The
power station is due to be decommissioned in
2030.11 Many parts of the power stations,
including the boilers, have already passed their
anticipated life cycle.
Camden acquires its coal supply from outlying
mines, and as such is required to transport their
coal supply via road and conveyor.
Figure 3-11: Camden power station
11 Ibid (Eskom 2016)
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 28
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Settlement Distribution and Density
The Camden ZoI is bordered to the northwest by Ermelo, an economic hub. It is bordered to the east
by intensive forestry activities, which also occur in the surrounds of Sheepmoor and eastern parts of
Camden ZoI itself. The national, provincial and district roads N2, N11 R39 and R65 are the primary
transport routes in the Camden ZoI but have not resulted or stimulated ribbon development to any
degree, probably due to the agricultural focus in the area and the multitude of informal secondary sand
tracks that link homesteads and communities.
The Camden ZoI is 50:50 rural and urban. The
highest concentration of the population is within the
settlements of Camden and Sheepmoor, with
disbursed farm settlements throughout. Farming is
the predominant land use in the area and as such,
farm and homesteads are the typical settlement
types in the area, with limited urban infrastructure
and services outside of Camden and Sheepmoor. A
Google Earth image from August 2016 is provided
in Figure 3-12.
ESKOM SOCIAL BASELINE CAMDEN ZOI LOCALITY
Project No. 506503
Figure 3-12: Camden ZoI locality
Source: Google Earth, 15 August 2016.
Camden Village and Sheepmoor are
considered the host communities of the
Camden power station. However, adjacent
farmers are also considered to fall within
the primary ZoI, with Ermelo and its
surrounds, falling into the secondary ZoI.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
29
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 3
-2:
So
cio
-eco
no
mic
su
mm
ary
of
the f
ou
r lo
cal Z
oIs
Hen
dri
na Z
oI
Arn
ot
Zo
I K
om
ati
Zo
I C
am
den
Zo
I
T
he p
opula
tion
siz
e is 2
8 2
87;
It is m
ade u
p la
rgely
of
Bla
ck A
fric
an p
eop
le;
T
here
are
marg
inally
more
male
s t
ha
n f
em
ale
s;
T
he m
ajo
rity
of
the p
opula
tio
n a
re u
nder
the a
ge o
f 3
5
ye
ars
an
d t
he Z
oI
has a
n o
ve
rall
yo
ung p
op
ula
tion.
T
he p
opula
tion
siz
e is 5
817;
It is m
ade u
p la
rgely
of
Bla
ck A
fric
an p
eop
le;
T
here
are
marg
inally
more
male
s t
ha
n f
em
ale
s;
T
he m
ajo
rity
of
the p
opula
tio
n a
re u
nder
the a
ge o
f 35
ye
ars
an
d t
he a
rea c
an b
e c
lassifie
d a
s b
ein
g a
n o
vera
ll yo
un
g p
opula
tion.
T
he p
opula
tion
siz
e is 5
010;
It h
as a
majo
rity
Bla
ck A
fric
an
popu
lation;
T
here
are
more
male
s t
ha
n f
em
ale
s,
whic
h s
upp
ort
s t
he
conclu
sio
n t
hat
mig
ratio
n is h
igh in t
he a
rea;
T
he
popula
tio
n
spik
es
in
the
work
ing
age
gro
ups,
part
icu
larl
y a
mongst
the 2
0-3
4 y
ear
gro
up.
T
he p
opula
tion
is 7
269;
It h
as a
majo
rity
Bla
ck A
fric
an
popu
lation;
T
here
are
marg
inally
more
fem
ale
s t
ha
n m
ale
s;
T
he m
ajo
rity
of
the p
opula
tio
n a
re u
nder
the a
ge o
f 35
ye
ars
a
nd
the
are
a
there
fore
h
as
an
overa
ll you
ng
pop
ula
tion.
A
n i
ncre
ase i
n t
he p
opula
tio
n i
s e
vid
ent, d
ue t
o t
he i
n-
mig
ratio
n o
f pe
ople
fro
m t
he g
reate
r M
pum
ala
ng
a r
eg
ion
and fro
m n
eig
hbouri
ng S
outh
ern
Afr
ican c
oun
trie
s, a
s w
ell
as t
he n
atu
ral in
cre
ase in t
he s
ize o
f fa
mili
es;
T
he p
ort
ion o
f th
e p
opu
latio
n l
eavin
g t
he a
rea i
s t
hose
age
d b
etw
een 1
6 a
nd 2
5,
most
who l
eave i
n a
n e
ffort
to
find e
mp
loym
ent
els
ew
here
.
In
te
rms of
mig
ratio
n in
to th
e A
rnot
ZoI, it is
m
inim
al.
Ho
wever,
m
igra
nts
have
been
identified
as
larg
ely
fo
reig
ners
in
searc
h
of
livin
g
space
and
em
plo
ym
ent
opp
ort
unitie
s.
M
igra
tio
n h
as b
ee
n s
ignific
an
t and g
rad
ually
gro
win
g i
n
the K
om
ati Z
oI sin
ce 2
007. A
lthou
gh s
om
e m
igra
nts
have
com
e f
rom
within
So
uth
Afr
ica,
the m
ajo
rity
have c
om
e
from
outs
ide o
f S
outh
Afr
ica.
T
here
had
been
an
incre
ase
in
the
Cam
den
ZoI
pop
ula
tion;
M
igra
tio
n s
tatistics a
ppe
ar
to b
e i
ncom
ple
te f
or
Sta
tsS
A
Census
20
11
sta
tistics
sug
gest
there
ha
ve
be
en
no
mig
ratio
ns into
the C
am
den Z
oI
betw
een 2
007 a
nd 2
01
1;
ho
we
ver,
th
is
is
unlik
ely
if
com
pare
d
with
mig
ratio
n
pattern
s in
surr
oun
din
g w
ard
s and w
ithin
M
pum
ala
nga
pro
vin
ce.
T
he m
ajo
rity
o
f housin
g in
th
e H
endri
na Z
oI
is fo
rmal
housin
g (
brick s
tructu
res o
n a
separa
te s
tan
ds o
r yard
s),
ho
we
ver
seco
nd
to
this
is
in
form
al
dw
elli
ngs,
larg
ely
shacks;
In
flu
x and po
pula
tion gro
wth
has le
d to
an in
cre
ase in
in
form
al
dw
elli
ngs i
n i
nfo
rmal
settle
ments
and o
n f
arm
s,
wh
ich c
an b
e a
ttribute
d t
o t
he l
abo
ur
inte
nse i
ndustr
ies,
inclu
din
g m
inin
g a
nd e
nerg
y g
en
era
tio
n,
in t
he H
en
dri
na
Z
oI.
P
rim
ary
la
nd
use
in
the
A
rnot
ZoI
is
mostly
form
al
resid
entia
l;
T
he m
ajo
rity
of
housin
g in t
he A
rnot
ZoI
is f
orm
al ho
usin
g
or
brick s
tructu
res o
n s
ep
ara
te s
tands o
r yard
s,
ho
we
ver
second t
o t
his
is info
rmal d
we
llin
gs,
larg
ely
sh
acks.
Influ
x
and p
op
ula
tion
gro
wth
has l
ed t
o a
n i
ncre
ase i
n i
nfo
rma
l d
welli
ngs i
n i
nfo
rmal
settle
me
nts
an
d o
n f
arm
s.
This
can
be attribute
d to
th
e la
bo
ur
inte
nse in
dustr
ies,
inclu
din
g
min
ing a
nd e
nerg
y g
enera
tio
n,
in t
he A
rnot
ZoI.
K
om
ati
ZoI
has
varied
lan
d
uses,
most
of
wh
ich
is
resid
entia
l. H
igh i
nfo
rma
l a
nd
form
al
resid
en
tial
pattern
s
sugg
est th
at in
-mig
ratio
n is s
ignific
ant, a
nd the incre
asin
g
pop
ula
tion h
as le
d to
urb
an spra
wl
and th
e gro
wth
o
f in
form
al settle
ments
, w
here
mo
st
occupa
nts
are
rentin
g;
T
he
majo
rity
of
houses
are
fo
rmal
hou
sin
g
or
brick
str
uctu
res a
s w
ell
as i
nfo
rma
l d
we
llin
gs,
larg
ely
sh
acks,
man
y o
f w
hic
h a
re t
o b
e f
ou
nd
in K
om
ati.
C
am
den Z
oI
has m
ore
desig
nate
d f
arm
land
than a
ny o
f th
e o
ther
thre
e Z
oI’s. T
he r
em
ain
ing tw
o thir
ds o
f la
nd u
se
is f
orm
al re
sid
entia
l. A
t a t
hir
d o
f th
e p
opula
tion (
67.0
%),
th
e C
am
den Z
oI als
o h
as the h
ighest num
be
r of re
sid
ents
liv
ing r
ent
free (
mostly f
arm
work
ers
);
T
he m
ajo
rity
of
housin
g in
th
e C
am
den Z
oI
is fo
rmal
housin
g
mad
e
of
brick
on
separa
te
sta
nds
or
yard
, ho
we
ver,
tra
ditio
na
l dw
elli
ngs a
re the n
ext m
ost pre
vale
nt;
P
opu
latio
n
gro
wth
h
as
led
to
an
incre
ase
in
in
form
al
dw
elli
ngs in info
rmal settle
me
nts
and o
n farm
s, w
hic
h c
an
als
o be attribu
ted to
season
al
farm
w
ork
and e
x-f
arm
em
plo
yees
co
ntinu
ing
to
resid
e
on
farm
s
follo
win
g
term
ination o
f em
plo
ym
ent.
T
rends s
uggest th
at unem
plo
ym
ent in
the H
endri
na Z
oI is
m
odera
te,
ho
wever
only
clo
se o
n h
alf o
f th
e w
ork
ing
age
pop
ula
tion
is
em
plo
ye
d.
In
additio
n,
a
third
of
the
pop
ula
tion is n
ot
econom
ically
active;
M
ore
than h
alf o
f th
ose e
mplo
yed a
re e
mp
loyed i
n t
he
fo
rmal
secto
r. T
he
info
rmal
secto
r pro
vid
es
sig
nific
ant
em
plo
ym
ent
at
clo
se
on
a
third
of
em
plo
ym
ent
opp
ort
unitie
s;
A
bout
one i
n t
en h
ouseho
lds i
n t
he H
endri
na Z
oI
do
not
earn
an
y inco
me.
U
nem
plo
ym
ent in
the A
rnot Z
oI is
modera
te, ho
wever
only
40.0
% o
f th
e w
ork
ing a
ge p
opu
latio
n i
s e
mplo
ye
d,
an
d
40.0
% o
f th
e p
opu
latio
n is n
ot
econom
ically
active;
T
he vast
majo
rity
of
the pop
ula
tion is
em
plo
yed in
th
e
form
al secto
r;
C
lose o
n t
hre
e q
uart
ers
of
the h
ouseh
old
s e
arn
betw
een
R
19 6
01.0
0 a
nd R
307 6
00.0
0 a
nn
ually
. H
ow
ever,
a t
hir
d
of househo
lds a
re c
om
pri
se
d o
f one p
ers
on, and a
s s
uch,
dep
en
dency is
possib
ly lo
we
r th
an oth
er
wa
rds in
th
e
munic
ipa
l are
a.
T
he K
om
ati Z
oI
has t
he l
ow
est
level
of
not
econ
om
ica
lly
active
pop
ula
tion
com
pare
d
to
the
thre
e
oth
er
ZoI’s.
Em
plo
ym
ent
is estim
ate
d at
clo
se on half of
the a
dult
pop
ula
tion;
M
an
y o
f th
ose e
mplo
yed in t
he K
om
ati Z
oI
are
em
plo
ye
d
on f
arm
s;
T
he f
orm
al secto
r accounts
fo
r 80.0
% o
f th
e e
mplo
yed;
O
ne in
fiv
e h
ou
seho
lds d
o n
ot earn
an a
nn
ua
l incom
e, w
ith
clo
se o
n t
wo t
hirds o
f house
hold
s e
arn
ing a
n i
ncom
e o
f betw
een R
19 6
01.0
0 a
nd R
15
3 8
00.0
0 a
nnu
ally
.
U
nem
plo
ym
ent
in t
he C
am
de
n Z
oI
is lo
w,
with o
ne in
fiv
e
of
the a
du
lt p
opula
tion n
ot
econom
ically
active;
T
he m
ajo
rity
of
those e
mplo
yed i
n t
he C
am
den Z
oI
are
th
oug
ht
to b
e e
mplo
ye
d o
n f
arm
s;
O
ne in t
en o
f h
ouse
hold
s in t
he C
am
den Z
oI
do n
ot
earn
an
y incom
e,
an
d o
ne in f
ive e
arn
betw
een R
9 6
01.0
0 a
nd
R
38 2
00.0
0 a
nnua
lly.
Clo
se o
n h
alf o
f househo
lds h
ave
fo
ur
or
more
occup
ants
, an
d
as
such
the
househ
old
in
com
es are
often str
etc
hed and in
suffic
ien
t to
sup
port
w
hole
ho
use
ho
lds.
Hen
drin
a
Pow
er
sta
tion
curr
ently
em
plo
ys
690
peo
ple
, of w
hic
h 6
65 a
re p
erm
ane
nt. T
he m
ajo
rity
of
the
em
plo
yee
s
(97%
) are
lo
cally
sourc
ed
from
Pulle
ns H
ope.
Of
em
plo
ye
es,
76%
are
male
while
24%
are
fem
ale
. E
skom
, 20
16.
Arn
ot
curr
ently h
as 7
10 e
mplo
yees.
The m
ajo
rity
of
em
plo
yees (
93
%)
resid
e i
n R
ietk
uil.
Ap
pro
xim
ate
ly
27%
are
fem
ale
and 6
3%
ma
le.
Eskom
, 20
16.
Kom
ati p
ow
er
sta
tion c
urr
ently e
mplo
ys 4
70 p
eo
ple
,
of
whic
h 35
2 are
p
erm
an
ent.
T
he m
ajo
rity
of
the
em
plo
yees (
43
9)
are
sourc
ed fro
m E
mala
hle
ni. 6
7%
of
em
plo
yees
are
m
ale
w
hile
33
%
are
fe
ma
le.
Eskom
, 2
016.
Ca
md
en
curr
ently
has
373
em
plo
yees,
321
of
whic
h a
re p
erm
ane
nt. T
he m
ajo
rity
of
em
plo
yees
(351)
resid
e
in
Erm
elo
. A
ppro
xim
ate
ly
35
%
are
fem
ale
and 6
5%
ma
le.
Esko
m,
20
16.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
30
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Hen
dri
na Z
oI
Arn
ot
Zo
I K
om
ati
Zo
I C
am
den
Zo
I
E
ducation l
eve
ls i
n t
he H
endri
na Z
oI
are
rela
tively
hig
h.
The m
ajo
rity
of
the p
opula
tion
have a
secon
dary
sch
oo
l educatio
n (
just
over
ha
lf);
O
nly
3%
of
the c
om
munity o
ver
the a
ge o
f 20 h
ave a
ny
form
of
tert
iary
educatio
n.
E
ducation l
eve
ls i
n t
he A
rnot
ZoI
are
rela
tively
hig
h w
ith
abo
ut 10
% o
f com
munity m
em
bers
over
the
age o
f 20 n
ot
havin
g
an
y
form
of
education.
Clo
se
on
half
of
the
pop
ula
tion (
50
%)
has a
seco
ndary
scho
ol e
ducation.
The
more
co
ncern
ing facto
r in
th
e A
rnot Z
oI is
th
e fact th
at le
ss
than 5
% o
f th
e p
eo
ple
over
the a
ge o
f 2
0 h
ave a
ny f
orm
of
tert
iary
education.
O
f th
e
peop
le
over
the
ag
e
of
20,
67
%
com
ple
ted
secondary
school.
Lik
e
many
wa
rds
in
the
pro
vin
ce
, te
rtia
ry e
ducation s
uccess is d
ire;
It
appears
th
at
there
is
a
prim
ary
scho
ol
(La
ers
ko
ol
Koorf
onte
in)
in K
om
ati V
illag
e.
A
ppro
xim
ate
ly
20%
of
the
pop
ula
tion
have
a
prim
ary
educatio
n a
nd a
seco
nd
ary
schoo
l e
ducatio
n.
The m
ore
concern
ing f
acto
r in
the Z
oI
is t
he f
act
that
only
0.5
% o
f th
e c
om
mu
nity o
ver
the
ag
e o
f 20 h
ave a
ny form
of te
rtia
ry
educatio
n;
T
here
are
at le
ast tw
o p
rim
ary
schools
and o
ne s
econ
dary
schoo
l in
Sh
ee
pm
oor.
T
here
is n
o h
ospital in
the Z
oI, w
ith t
he c
lose
st
hospital in
E
mala
hle
ni
so
me 4
6 k
m a
wa
y.
There
are
tw
o c
linic
s i
n
Hen
drin
a a
nd o
ne in P
ulle
nshop
e.
T
here
is
no hospita
l in
th
e A
rnot
ZoI, w
ith th
e clo
sest
hosp
ital
in M
iddle
burg
(5
3km
aw
ay).
There
is a
clin
ic i
n
Rie
tkuil.
T
here
is n
o h
ospita
l in
th
e K
om
ati Z
oI
an
d t
he n
eare
st
hosp
itals
are
E
mala
hle
ni,
40
km
, B
eth
al,
43
km
and
E
mala
hle
ni, 4
5km
. T
here
is a
clin
ic in K
om
ati.
T
he clo
sest
hospita
l to
th
e C
am
den Z
oI
is lo
cate
d in
E
rmelo
, som
e
20km
a
wa
y.
There
is
als
o
a
clin
ic
in
Shee
pm
oor.
T
he m
ajo
rity
of
househ
old
s in
th
e H
endri
na Z
oI
have
either
munic
ipal
or
private
re
fuse
rem
oval
serv
ices.
Curr
ently
He
ndrin
a
po
we
r sta
tion
pro
vid
es
all
refu
se
re
moval
serv
ices in
P
ulle
nsh
ope and th
e W
oesta
llee
n
min
es. T
he p
ow
er sta
tion a
lso u
tilis
es the
ir o
wn la
ndfill
site
fo
r w
aste
dis
po
sal;
F
lushin
g t
oile
ts a
re u
tilis
ed b
y 6
7%
of
the h
ou
seho
lds;
C
lose
on
all
the
househ
old
s
have
access
to
a
wate
r conn
ectio
n e
ith
er
in th
eir y
ard
, w
ithin
their d
welli
ng o
r at a
com
mun
al sta
ndpip
e;
E
skom
is
th
e sole
dis
trib
uto
r of
bulk
ele
ctr
icity in
th
e
Hen
drin
a Z
oI
and e
lectr
ical
conn
ectio
ns a
re p
revale
nt
in
the a
rea,
part
icula
rly in P
ulle
nshop
e a
nd H
en
drin
a t
ow
n;
T
he m
ajo
rity
o
f house
ho
lds in
th
e Z
oI
have access to
m
unic
ipa
l ele
ctr
icity;
T
he m
ajo
rity
of
house
ho
lds r
ely
on e
lectr
icity f
or
cookin
g,
heating,
an
d lig
hting.
T
he m
ajo
rity
of
househ
old
s i
n t
he A
rnot
ZoI
have e
ither
munic
ipa
l or
pri
vate
refu
se r
em
oval serv
ices;
S
anitation s
erv
ices a
re i
mpro
ved a
nd f
lush
ing t
oile
ts a
re
utilis
ed b
y ju
st
over
two qua
rters
of
the househ
old
s in
A
rno
t Z
oI;
C
lose
on
all
househo
lds
have
access
to
a
wate
r conn
ectio
n e
ith
er
in th
eir y
ard
, w
ithin
their d
welli
ng o
r at a
com
mun
al sta
ndpip
e;
E
skom
is the s
ole
dis
trib
uto
r o
f bulk
ele
ctr
icity in the A
rnot
ZoI: T
he m
ajo
rity
of ho
use
hold
s in the Z
oI have a
ccess to
m
unic
ipa
l ele
ctr
icity;
T
he m
ajo
rity
of
househo
lds r
ely
on e
lectr
icity f
or
cookin
g,
heating,
an
d lig
hting.
R
efu
se d
isposal b
y t
he m
unic
ipalit
y o
r private
com
pan
ies
is a
fford
ed to h
alf o
f th
e h
ouse
hold
s, and is fo
cused in the
urb
an
pockets
of
the
Kom
ati
ZoI
(inclu
din
g
Kom
ati
Vill
age);
S
anitation in t
he K
om
ati Z
oI
is d
iffe
rent
in v
arious p
laces,
with
urb
an
pockets
enjo
yin
g
better
serv
ices
whe
n
com
pare
d
to
rura
l a
nd
info
rmal
settle
me
nts
. F
lushin
g
toile
ts a
re u
tilis
ed b
y a
bout
50
% o
f th
e h
ouse
hold
s;
A
bout
67%
o
f househo
lds
have
access
to
a
wate
r conn
ectio
n e
ith
er
in t
heir y
ard
or
within
their d
we
llin
g;
E
skom
is
th
e sole
dis
trib
uto
r of
bulk
ele
ctr
icity in
th
e
Kom
ati Z
oI;
E
lectr
icity
is
availa
ble
and
used
by
over
50
%
of
househ
old
s f
or
cookin
g,
heating a
nd lig
htin
g.
Ho
wever,
in
th
e i
nsta
nce o
f heating,
20
% o
f househo
lds d
o n
ot
use
ele
ctr
icity, and c
and
les s
till
account fo
r a la
rge p
erc
enta
ge
of
lighting in t
he K
om
ati Z
oI.
33%
of
ho
useho
lds
in
the
C
am
den
ZoI
have
eith
er
munic
ipa
l or
private
re
fuse
rem
ova
l serv
ices,
conce
ntr
ate
d in t
he u
rba
n p
ockets
of
Cam
den;
P
it
latr
ines
are
th
e
dom
ina
nt
sanitation
meth
od
for
househ
old
s, an
d a
s m
an
y a
s o
ne in
fiv
e h
ouse
hold
s (20%
) had n
o s
an
itation f
acili
ties;
C
lose o
n 5
0%
of househ
old
s d
o n
ot have a
ccess to p
iped
w
ate
r; th
e re
st
of
househ
old
s have access to
a w
ate
r conn
ectio
n e
ith
er
in th
eir y
ard
, w
ithin
their d
welli
ng o
r at a
com
mun
al sta
ndpip
e;
E
skom
is t
he
sole
dis
trib
uto
r of
bulk
ele
ctr
icity.
Ho
we
ver,
ele
ctr
ical
conn
ections are
no
t w
ide
ly pre
va
lent
due
to
dis
burs
ed s
ettle
ment
an
d t
he r
ura
lity o
f fa
rms;
T
he m
ajo
rity
of househ
old
s in
the Z
oI do n
ot use m
unic
ipal
ele
ctr
icity f
or
cookin
g a
nd h
eating;
T
he m
ajo
rity
of
househ
old
s r
ely
on w
ood f
or
cookin
g a
nd
heating;
T
he m
ajo
rity
of
house
ho
lds r
ely
on e
lectr
icity f
or
lighting;
C
an
dle
s a
re a
sig
nific
ant
sourc
e o
f lig
hting.
Curr
ently a
ll se
wera
ge f
rom
Pulle
nsh
op
e is t
reate
d
at
the H
en
drin
a w
ate
r tr
eatm
ent
work
s –
Hendri
na
pow
er
sta
tion,
201
6.
Hen
drin
a c
urr
ently p
rovid
es b
oth
Pulle
nsh
op
e a
nd
Woesta
lleen m
ine w
ith p
ota
ble
wate
r an
d e
lectr
icity
– H
en
drin
a p
ow
er
sta
tion,
2016.
Kom
ati c
urr
ently p
rovid
es b
oth
wate
r and e
lectr
icity
to t
he K
om
ati V
illa
ge –
Kom
ati p
ow
er
sta
tion
, 2016.
Curr
ently,
the l
ocal
mu
nic
ipa
lity i
s r
esponsib
le f
or
sanitation p
rovis
ion a
nd s
erv
ices i
n B
linkpa
n a
nd
Kom
ati V
illag
e –
Ko
mati p
ow
er
sta
tion,
201
6.
Despite a
rela
tively
hig
h e
ducation level in
the a
rea,
Hen
drin
a c
urr
ently s
truggle
s t
o s
ourc
e t
he r
equir
ed
skill
s f
rom
the local co
mm
unitie
s –
Hendri
na p
ow
er
sta
tion,
20
16.
Despite
a
po
sitiv
e
educatio
n
level
in
the
are
a,
Kom
ati curr
ently str
uggle
s to
sourc
e th
e re
quir
ed
skill
s f
rom
th
e l
oca
l co
mm
un
itie
s –
Ko
mati p
ow
er
sta
tion,
20
16.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 31
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Relevant Strategies and Plans
The development of criteria to assess options need to consider relevant strategies and plans. This
section outlines Eskom’s Socio-economic Development (SED) scope; the CSI activities of the four
power stations, followed by the LEDs of the municipalities in question, the Provincial Growth and
Development Strategy (PGDS), where after the relevant NDP and SDGs are outlined. The linkage of
the SDGs with the option selection criteria as defined in section 5 is outlined in Table 3-3.
3.4.1 Eskom’s SED and CSI Plans
Eskom’s SED Scope
Eskom’s SED scope includes initiatives, which address the following (Integrated Socio-economic
Development Policy for Eskom, 240-69723512, November 2013):
Community development;
Education;
Employment creation;
Skills development;
Technology development and access to technology;
Health;
Wealth and income creation;
Social investment; and,
Stakeholder engagement.
Of the SDGs identified (Table 3-3), Goal 1 “End poverty”, Goal 4 “Inclusive and equitable quality
education”, Goal 3 “Ensure healthy lives and promote well-being for all”, and Goal 9 “Build resilient
infrastructure” have relevance to the Eskom SED scope.
Eskom Power Stations’ SED/CSI
The four power stations have approximately R1 million annually to spend on CSI. In addition, the
Eskom Foundation also contributes R34 million per annum for SED. The focus on CSI spend leans
towards education, skills development and community development:
Hendrina’s main LED activity is the air emissions off-setting project, which involves providing
energy efficient coal burning stoves in Kwazamakhule. In addition, funding is provided to local
home-based care programmes. The power station is looking at opportunities to utilise the ash to
start brick manufacturing, and to formalise the collection of rubbish at the landfill site for recycling.
There are ongoing requests for transport from the surrounding communities.
Arnot currently has over R9 million in CSI activities earmarked for local school refurbishment and
the construction of computer labs, funding and donations to orphanages and old age homes, and
support to clinics, hospice, mobile clinics and home based care. Through the Eskom Foundation,
there is also a Contractor Academy on site who assist learners with the development of key skills,
including artisans and operators. The academy takes approximately 25 students per 18-month
cycle, to secure funding for initiatives such as education (school refurbishment, computer labs).
Komati provides donations to approved applicants. Current CSI initiatives include the construction
and maintenance of boreholes, provision of school uniforms and construction of bus shelters.
Where possible support to local farm schools is prioritised.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 32
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Camden provides donations to approved applicants. Camden has provided computers to Cebisa
secondary school and assisted Netherlands Park, as well as chairs, projectors, interactive boards
etc. to local primary and secondary schools, and donations to a local day care center.
The Eskom Foundation is also involved in initiatives such as Health Mobile Clinics, Maths Centre
for Professional Teachers, Contractor Academies, Eskom expos, etc. A welding programme to the
value of R1 434 098, was conducted for 28 community members from Ermelo to empower these
members to become employable. They were trained in basic welding training. Further training was
requested, and 18 members completed the full course. Their details were given to the power
stations to look at possible employment (Eskom Foundation Presentation, 10 July 2016).
3.4.2 Municipalities’ Local Economic Development
Nkangala District Municipality (Final Draft Integrated Development Plan (IDP) 2016/17-2020/2021)
To enhance local economic development, the focus is on job creation and poverty alleviation through:
Economic diversification;
Marketing and market research;
Institutional development;
Green economy mainstreaming; and,
Business retention, attraction and development.
Anchor projects identified by the district municipality for Steve Tshwete Local Municipality are:
Establishment of a catalytic converter plant; and,
Establishment of a steel and metal fabrication hub.
Anchor projects in other municipalities within Nkangala District Municipality are: establishment of a
glass recycling plant, bio diesel plant, shopping complex, sawmill project, fly ash beneficiation plant,
high altitude sport centre, international airport, Small Medium Macro Enterprises (SMME) hub,
business convention centre, tourism belt, mining museum and convention centre, and a theme park
development.
Current strategies and plans for the district include:
Feasibility study for an agro-processing plant;
Develop and review LED strategies;
Development of investment attraction and promotion strategies;
Feasibility study for integrated rural development strategy;
Business plan for fresh produce market (agri-hub);
Anchor projects completed; and,
Feasibility study for the fresh produce market completed.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 33
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Relevant sector specific strategies are listed as follows:
Tourism strategy
The following clusters have been identified to improve the tourism spread: Mining cluster; Eco-nature
cluster; Cultural, historic and political cluster; and, Conference and convention cluster.
Industrial strategy
The following industrial clusters are planned: Food and beverages; Non-metallic mineral products;
Metal and products of metal; Support for the ICT; and, SMME development.
Regional industrial roadmap
This roadmap provides a guideline that will stimulate industrial development and a focused approach
to economic development.
Sector interventions
Agriculture, hunting, forestry and fishing interventions: Integrate current small-
scale/emerging farmers into the commercial farming arena;
Mining: Small-scale mining, mine rehabilitation and mine procurement.
Food products, beverages and tobacco products interventions: Promote agro-processing.
Textiles, clothing and leather goods interventions: Develop a business plan for the
establishment of organic cotton textiles and clothing community hubs.
Wood and products of wood, manufacture of articles of straw, manufacture of paper and
paper products: Develop furniture training centres in appropriate local municipalities.
Agro-Pharmaceuticals: Develop an agro- pharmaceutical cluster; pharmaceuticals should focus
on developing country illnesses.
Chemicals: Undertake a feasibility study to determine which products are appropriate for
manufacturing in Nkangala.
Machinery: Determine the feasibility of machinery manufacturing.
Automotive industry: Conduct a market analysis to determine whether there will be a demand
for Nkangala’s exhaust systems.
Tourism: A study must be conducted to determine the status quo.
Corridor development opportunities
The N4 Maputo Corridor, N12 Corridor, and the Moloto Corridor hold significant opportunities for the
Nkangala District area, both in terms of economic spin-offs from the corridor, and tourism potential.
Development along these corridors could include intensive agriculture, agro-processing and hospitality
uses. The significance of the railway lines in the district in terms of export opportunities to the Maputo
and Richards Bay harbours is also investigated.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 34
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Gert Sibande District Municipality (IDP 2016-2017)
Key sectors driving the economy of the district have been identified as:
Manufacturing;
Mining;
Energy generation and supply;
Agriculture;
Forestry;
Tourism; and,
Transportation and logistics.
In terms of local economic development, the strategies are seated in the following areas:
Development and support for the agricultural sector
Establishment of commercial farmers;
Agro-processing facilities; and,
Establishment of a fresh produce market is being considered to take advantage of value chain
opportunities that it presents, e.g. storage, warehousing, transportation, and packaging.
Development Agency
The intention is to establish the Gert Sibande District Municipality Development Agency to ensure
strategic focus to deliver the municipality’s mandate for LED.
Potential Economic Development Corridors
Towns and settlements are to be linked to encourage economic development opportunities. Strategic
road and rail networks are to be maintained to support internal and external linkages.
Strategic Development Initiatives
A number of strategic development studies are discussed in the IDP, these being:
Heyshope Dam scoping study;
District Industrial Development Strategy, focusing on chemicals, plastic fabrication, and
pharmaceuticals. Industrial zones and workshops as part of the development initiatives are
mentioned;
Capital or transport equipment and metals sector development;
Mining Beneficiation Masterplan to encourage benefits and economic empowerment to the
surrounding communities;
New regional information management and tourism exhibition centre, since tourism is rated high
in the Mpumalanga Provincial Economic Growth Strategy. Linked to this is responsible tourism
development and support and the development of a regional library and exhibition centre;
Development of a district biodiesel plant;
SMME/Co-operatives Development Support;
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 35
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Development of a regional airport (Ermelo);
Promotion of urban renewal programmes within the municipality;
Promotion of the expansion of the greening economy in the district, since the municipality falls in
the Highveld’s high intervention priority area in regard. Environmental degradation because of
coal-fired power station is mentioned as one of the drivers for the promotion of clean energy
generation. In this regard, the implementation of the Air Quality Management Plan and Pollution
Control Plan have been identified as a key performance indicator to advance community well-
being;
Regional training (skills development);
Establishment of a Regional Sports Complex;
Building more united, non-racial, integrated and safer communities; and,
Comprehensive Rural Development Programme.
Steve Tshwete Local Municipality (IDP 2012-2017)
The following initiatives are of importance:
The municipality sold a total of 37 industrial sites, and the plan is to make more sites available. A
site for an industrial park has been made available. The municipality wants to specifically focus on
enhancing the stainless steel sector in Emalahleni.
In line with the district, the municipality plans to develop a green economy policy, as well as draft
green building guidelines.
Part of the local economic development strategy is to develop agriculture. The promotion of
Hydroponic farming is considered. Community Garden Projects was developed with 27
beneficiaries sponsored by Black Wattle Mine.
Developing a strong SMME sector is a focus area, with specific focus on establishing the following
hubs: industrial, agricultural, steel and metal fabrication, logistical. The intention is to make more
land available to SMMEs. New malls are planned for Mhluzi and Emalahleni. Land for industrial
stands will be acquired.
Msukaligwa Local Municipality (IDP 2016-2017)
The following plans are identified as key to economic development in the municipality:
SMME and community development support: The municipality and private sector to work together
to develop SMME.
Future local economic development projects (subject to availability of funding): The municipality
has applied for funding at the Department of Environmental Affairs to implement environmental
protection and infrastructure projects as part of the Greening Flagship projects.
Regional fruits and vegetables cold storage and distribution centre: Through funding assistance,
establish a regional fruits and vegetables cold storage and distribution centre, which will assist
small-scale producers with market opportunities.
Chicken abattoir: investigate the establishment of a regional chicken abattoir and cold storage to
support small-scale chicken producers.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 36
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Municipalities’ Electricity Situation and its Influence on the Execution of LED
The indication is that the successful implementation of the plans outlined in the IDPs rely on the coal-
fired power station operations continuing, and no consideration is given to the discontinuation of these
power stations.
Nkangala District Municipality
The IDP (2016/17-2020/2021) acknowledges that the security of coal supply for some existing coal
power stations is increasingly under threat due to better returns for coal miners through exports to
India and other Asian countries. The IDP (2016/17-2020/2021) also highlights that a reliable electricity
supply depends on a sufficient number of functioning power stations, and a reliable grid network.
Increasing local supply failures in some areas requires a more pragmatic corrective approach,
according to the IDP (2016/17-2020/2021). Strategic interventions mentioned are the Kusile project
and the Komati power station.
Gert Sibande District Municipality
The Gert Sibande IDP (2016-2017) highlights key issues pertaining to electricity, and these are
summarised as follows:
Limited capacity is available to support new developments;
Backlogs are mostly as a result of informal settlements not yet proclaimed or where township
extensions are taking place;
New houses are not immediately electrified upon completion;
Electrification in rural areas has slowed down due to a focus on building bulk electrical
infrastructure which requires major funding; and,
Additional bulk infrastructure to eradicate backlogs are required.
Flagship projects that will be implemented as part of the Planning and Economic Development
Portfolio, when funds are available, include Chief Albert Luthuli wind energy project, Mkhondo hydro
electrical power plant, and power generation from solid waste through gasification.
The IDP (2016-2017) reports that coal haulage trucks transporting coal from the mines to four power
stations within the municipal area cause damage to the roads. Maintenance requirements of these
roads place additional stress on the budget up to national and provincial level. Strategies are to reduce
the number of trucks on the road, improve on overload monitoring, and support the rail developments.
Steve Tshwete Local Municipality and Msukaligwa Local Municipality
The IDPs of the two local municipalities relevant to this study, i.e. Steve Tshwete Local Municipality
(IDP, 2012-2017) and Msukaligwa Local Municipality (IDP, 2016-2017), mainly refer to the challenges
related to the electrification of informal settlements, and provision of electricity to rural households.
Maintenance of infrastructure remains a challenge, more so of aging infrastructure.
Steve Tshwete Local Municipality’s IDP (2012-2017) reports that bulk electricity purchases remain the
main increasing factor on operating expenditure totalling R2,7-billion over the next five (5) years with
an average rate increase of 12%. The provision of electricity is guided by the Electricity Master Plan
that was developed and adopted in 2006. Eskom supplies electricity to the rural and farm dweller
homes.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 37
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
A shortage of electrical supply capacity from Eskom to newly built council substations is reportedly a
challenge. The municipality is in the process of upgrading the main electrical intake substations to
Emalahleni, Hendrina, Kwazamokuhle, and Gholfsig. Two new intake substations are being erected
in Aerorand and Nasaret (Steve Tshwete IDP, 2012-2017).
Msukaligwa IDP (2016-2017) reports that there are no electricity supply backlogs, apart from provision
of electricity to rural households. The two main substations at Ermelo and Wesselton are reportedly
insufficient to meet demand, and the supply capacity has to be increased. To address this shortfall,
the municipality has commissioned a new substation at Ermelo extension 33. Load shedding is
identified as a threat to development, as well as rising Eskom tariffs.
3.4.3 Provincial Growth and Development Strategy
The PGDS is a strategic and integrated provincial development plan that provides direction and scope
for province-wide development programmes and projects, within the context of a long-term perspective
and taking into consideration resources available and constraints.
In essence then, the PGDSs are aimed at
providing strategic directives to district and
local municipalities in formulating their more
detailed IDPs, and Spatial Development
Frameworks (SDFs). It is thus essential that
the issues and directives emanating from
PGDSs be compatible with the vision,
priority areas, and guidelines of SDFs of
local and district municipalities.
Mpumalanga has identified six priority areas of intervention as part of the PGDS, namely:
Economic development (i.e. investment, job creation, business and tourism development and
SMME development);
Infrastructure development (i.e. urban/rural infrastructure, housing and land reform);
Human resource development (i.e. adequate education opportunities for all);
Social infrastructure (i.e. access to full social infrastructure);
Environmental development (i.e. protection of the environment and sustainable development);
and,
Good governance (i.e. effective and efficient public sector management and service delivery).
3.4.4 NDP Priorities and SDGs
The NDP envisages that by 2030 South Africa will have an energy sector that promotes economic
growth and development through adequate investment in energy infrastructure. The plan also
envisages that by 2030 South Africa will have an adequate supply of electricity and liquid fuels to
ensure that economic activity and welfare are not disrupted, and that at least 95.0% of the population
will have access to grid or off-grid electricity (South African Government, Pocket Guide to South Africa
2015-2016).
The NDP priorities and SDGs that are relevant to this study were identified in consultation with Eskom
and are listed in Table 3-3. The linkage of the SDGs with the option selection criteria as defined in
section 5 is illustrated in column 4 of Table 3-3.
.
A PGDS should build on the approach established
in the NDP and engage with both district and local
municipalities to deepen the sub-provincial
application of the NDP – Department of Provincial
and Local Government, 2005.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
38
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 3
-3:
Rele
va
nt
ND
P p
rio
riti
es a
nd
SD
Gs
Ke
y
Fo
cu
s
Are
aN
ati
on
al
Deve
lop
men
t P
lan
P
rio
riti
es (
ND
P)
Su
sta
inab
le D
eve
lop
me
nt
Go
als
(S
DG
s)
Im
pac
t A
ss
es
sm
en
t an
d O
pti
on
s A
naly
sis
cri
teri
a
So
cia
l
Socia
l P
rote
ction
Go
al
1:
End p
overt
y
Go
al
2:
End h
unger
and a
chie
ve f
ood s
ecurity
Em
plo
ym
en
t an
d p
rocu
rem
en
t: C
onsid
ers
the l
evels
of
em
plo
ym
ent
and
pro
cure
ment
at
each p
ow
er
sta
tion.
Natio
n B
uild
ing
and
Socia
l C
oh
esio
n
Go
al
5: G
ende
r equa
lity a
nd e
mpo
we
r w
om
en
and g
irls
Go
al
16:
Peacefu
l an
d inclu
siv
e s
ocie
ties
LE
D a
nd
CS
I: C
onsid
ers
the p
ow
er
sta
tion's
CS
I and L
ED
activitie
s.
Hum
an S
ettle
ments
G
oa
l 6:
Access t
o w
ate
r and s
anitation
Go
al
7:
Access t
o a
fford
able
, re
liable
and
susta
inable
en
erg
y
Go
al
11:
Inclu
siv
e c
itie
s a
nd h
um
an s
ettle
ments
Se
rvic
e D
eli
very
: C
onsid
ers
serv
ice d
eliv
ery
activitie
s o
f th
e p
ow
er
sta
tion.
These s
erv
ices inclu
de w
ate
r, e
lectr
icity,
san
itation,
an
d r
efu
se r
em
ova
l.
Consid
ers
the investig
atio
n o
f altern
ative e
ne
rgy o
ptio
ns t
o a
bate
em
issio
ns.
Reg
ion
al an
d N
ati
on
al E
nerg
y In
ve
stm
en
t: O
pport
unitie
s for in
vestm
ent in
to
rene
wa
ble
and
/or
altern
ative e
nerg
y o
ptions a
t a n
ation
al le
vel.
Healthcare
G
oa
l 3:
Ensure
health
y liv
es a
nd p
rom
ote
we
ll-bein
g f
or
all
LE
D a
nd
CS
I: C
onsid
ers
the p
ow
er
sta
tion's
CS
I and L
ED
activitie
s.
Education,
Tra
inin
g a
nd
Develo
pm
ent
G
oa
l 4: In
clu
siv
e a
nd e
qu
itable
qua
lity e
duca
tion
LE
D a
nd
CS
I: C
onsid
ers
the p
ow
er
sta
tion's
CS
I and L
ED
activitie
s.
Eco
no
mic
E
conom
y a
nd
Em
plo
ym
ent
G
oa
l 1:
End p
overt
y
Go
al
2:
End h
unger
and a
chie
ve f
ood s
ecurity
Em
plo
ym
en
t an
d p
rocu
rem
en
t: C
onsid
ers
the l
evels
of
em
plo
ym
ent
and
pro
cure
ment
at
each p
ow
er
sta
tion.
Econom
ic I
nfr
astr
uctu
re
Go
al
9:
Build
resili
ent
infr
astr
uctu
re
LE
D a
nd
CS
I: C
onsid
ers
the p
ow
er
sta
tion's
CS
I and L
ED
activitie
s.
Reg
ion
al
an
d
Nati
on
al
Co
ntr
ibu
tio
n:
Consid
ers
th
e
bro
ader
socio
-econ
om
ic i
mplic
ations o
f each o
ption s
uch a
s p
ressure
on t
he n
atio
na
l po
we
r gri
d, G
DP
contr
ibutio
n a
nd loca
l and r
egio
na
l econo
mic
multip
liers
.
Co
al
So
urc
ing
: C
onsid
ers
the v
ari
ous c
oa
l-sourc
ing o
ptions.
Part
icu
lar
attention is g
iven t
o t
ruckin
g o
f coal.
En
vir
on
men
t
Enviro
nm
enta
l S
usta
inabili
ty a
nd
Resili
ence
Go
al
13:
Action t
o c
om
bat
clim
ate
chan
ge a
nd its
im
pacts
Go
al
15:
Pro
tect
susta
inab
le u
se o
f te
rrestr
ial
ecosyste
ms,
mana
ge f
ore
sts
and p
reve
nt
land
degra
dation
En
vir
on
men
tal
Imp
acts
: C
onsid
ers
the p
ow
er
sta
tio
n's
enviro
nm
enta
l im
pacts
on t
he
socio
-econ
om
ic c
onte
xt
locally
, re
gio
nally
an
d n
ationa
lly.
Inclu
des a
ir e
mis
sio
ns,
wate
r pollu
tio
n,
wate
r usa
ge a
nd d
ust
ge
nera
ted
in
th
e utilis
atio
n of
PF
and C
FB
C te
chnolo
gie
s.
Con
sid
ers
th
e po
wer
sta
tions e
xcee
din
g t
he a
lloca
ted e
mis
sio
ns c
ap a
nd t
akin
g o
n a
larg
er
respo
nsib
ility
for
overa
ll em
issio
ns i
nto
the a
tmosph
ere
an
d t
he c
limate
chan
ge p
hen
om
eno
n.
Lan
d t
ake:
Co
nsid
ers
the p
ote
ntia
l fo
r la
nd t
ake f
or
add
itio
na
l ash d
am
re
qu
irem
ents
.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 39
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
4 Stakeholder Analysis This section briefly addresses stakeholder profiling, stakeholder engagement protocols, and
stakeholder issues. The objectives of including these aspects are discussed in the sub-sections ahead.
Stakeholder Profiling
During the stakeholder identification exercise, a stakeholder analysis matrix was developed to
determine:
The extent to which the project will impact stakeholders, and/or the extent to which stakeholders
have an interest in the project;
The degree of influence that stakeholders might have over the progress (and even success) of the
project; and,
The nature of the engagement required, based on the impact/influence and impact scales of
stakeholders, i.e. consult, collaborate, inform.
As illustrated in Figure 4-1, engagement with stakeholders should intensify as impact/interest and
influence increase. The following criteria were used to place stakeholders within the matrix:
Zone of influence: Physical location relative to the project site and potential impacts. Generally,
the closer stakeholders live to a project site the higher their interest and the potential impacts of
the project;
Stakeholder values: The value stakeholders attach to the area that might be affected by the
intervention. This includes aspects such as livelihoods, resilience, land use, ownership, heritage
and sense of place; and,
Jurisdiction: The mandate/influence of institutions over regulatory and public opinion, with
attention to the area within the ZoI.
Figure 4-1: Stakeholder analysis matrix
According to Figure 4-1, depending on the stakeholder interest in the project and the level of impact
by the project, several engagement protocols should be considered as follows (Table 4-1):
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
40
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 4
-1:
Sta
keh
old
er
en
gag
em
en
t p
roto
co
l
Typ
e o
f sta
ke
ho
lde
r
Le
ve
l o
f en
gag
em
en
t
En
gag
em
en
t G
oal (s
) C
om
mu
nic
ati
on
N
atu
re o
f re
lati
on
sh
ip
Bysta
nd
er
Lo
w
inte
rest/
low
im
pa
ct
an
d
low
degre
e o
f in
flue
nce
Info
rm
Info
rm
or
educate
sta
keho
lders
O
ne-w
ay c
om
munic
ation fro
m the c
om
pan
y to
the s
takehold
er,
there
is n
o invitation t
o r
eply
or
pla
tform
to e
nga
ge f
rom
sta
keho
lder.
Short
-term
re
lationship
w
ith
sta
keh
old
ers
, usua
lly f
or
the d
ura
tion o
f th
e p
roje
ct.
Infl
uen
cer
Lo
w in
tere
st/ lo
w im
pact
an
d
hig
h d
egre
e o
f in
flu
ence
Fo
llo
wer
Hig
h i
nte
rest/ h
igh i
mpact
an
d
low
d
egre
e
of
influe
nce
- C
onsult a
nd c
olla
bora
te
Consult
Gain
in
form
ation
an
d
feedb
ack
from
sta
kehold
ers
to
in
form
de
cis
ions
ma
de
in
tern
ally
Lim
ite
d tw
o-w
ay c
om
mu
nic
ation: E
skom
asks
questions a
nd t
he s
takeh
old
ers
answ
er.
Lon
g-t
erm
in
volv
em
ent.
The
com
pan
y
com
mits
to
ongo
ing
in
form
atio
n
dis
sem
ination,
captu
ring an
d re
sp
on
din
g to
sta
keho
lder
issues a
nd c
oncern
s, in
corp
ora
te
sta
keho
lder
inputs
in
to
decis
ion-m
akin
g
pro
cess,
and p
rovid
e f
eed
back o
n d
ecis
ions
taken.
Colla
bora
te
Part
ner
with
or
conve
ne
a
netw
ork
of
sta
keh
old
ers
to
deve
lop
mutu
ally
a
gre
ed
solu
tions
and
jo
int
pla
n
of
action
Tw
o-w
ay,
or
multi-
wa
y b
etw
een c
om
pan
y/ie
s
and s
takeho
lders
. Learn
ing,
neg
otiation,
an
d
decis
ion m
akin
g o
n b
oth
sid
es.
Sta
kehold
ers
w
ork
to
geth
er
and in
flu
ence each oth
er
for
join
t action a
nd
resolu
tion o
f is
sues.
Lon
g-
term
in
volv
em
ent, w
ith th
e com
pa
ny
seekin
g d
irect
inp
ut, a
dvic
e a
nd p
art
icip
atio
n
of
a sta
ke
ho
lder.
R
eg
ard
sta
keh
old
er
as a
part
ner
and a
dvis
or.
Sh
ap
er
Hig
h i
nte
rest/ h
igh i
mpact
an
d
hig
h d
egre
e o
f in
flu
ence
Colla
bora
te
Part
ner
with
or
conve
ne
a
netw
ork
of
sta
keh
old
ers
to
deve
lop
mutu
ally
a
gre
ed
solu
tions
and
jo
int
pla
n
of
action
Tw
o-w
ay,
or
multi-
wa
y b
etw
een c
om
pan
y/ie
s
and s
takeho
lders
. Learn
ing,
neg
otiation,
an
d
decis
ion m
akin
g o
n b
oth
sid
es.
Sta
kehold
ers
w
ork
to
geth
er
and in
flu
ence each oth
er
for
join
t action a
nd
resolu
tion o
f is
sues.
Lon
g-
term
in
volv
em
ent, w
ith th
e com
pa
ny
seekin
g d
irect
inp
ut, a
dvic
e a
nd p
art
icip
atio
n
of
a sta
ke
ho
lder.
R
eg
ard
sta
keh
old
er
as a
part
ner
and a
dvis
or.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 41
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Key stakeholders identified in the key informant interviews include:
Government (National, Provincial, District and Local);
Host communities;
Competent and commenting authorities;
Neighbouring mines/businesses (e.g. Transnet);
Non-Governmental Organisations (NGOs);
Business forums;
Transportation forums (e.g. trucking companies);
Internal stakeholders; and,
Neighbouring farmers.
The high-level stakeholder analysis illustrated in Figure 4-2 indicates similar stakeholder relationships
and patterns amongst the four power stations. However, some differentiators have been identified and
are highlighted here. It was noted that Camden has less interaction with influencers (specifically
NGO’s), when compared to the other three power stations. In addition, the shapers in all four power
stations are made up largely by governmental structures, many of whom play a compliance role.
Stakeholder forums were identified across all four power stations’, ZoI, with forums representative of
adjacent farmers, municipalities and receiving communities.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
42
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
4-2
: S
takeh
old
er
map
pin
g
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 43
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Stakeholder Issues
Current issues identified by external stakeholders were discussed with the internal power station
stakeholders. The purpose of identifying these risks was to inform the selection of the relevant
options based on existing issues and how the power stations currently manage them. SRK did not
receive any grievances or comments and response reports from the power stations. As a result, the
stakeholder issues stated in the report are as provided verbally by the internal and power station
stakeholders.
These issues were considered in the impact assessment and options analysis. Most of the issues
mentioned related to environmental impacts such as water and air contamination, as well as
employment and procurement opportunities at the power stations. With the power stations sourcing
most of their labour from their immediate host communities, there are still dissatisfactions by these
communities that contractors do not employ locally, especially during scheduled power outages.
Figure 4-3 provides a list of stakeholder issues per power station. The number 0 means that a
particular issue has not been mentioned at a power station; while a 1 means that, a particular issue
was mentioned.
According to this diagram, the following issues were commonly identified across all the four power
stations:
Host communities not being able to differentiate between power station impacts and impacts
from other industries;
Groundwater pollution;
Air pollution (emission related); and,
Air pollution (dust related).
Three out of four power stations identified water pollution as a stakeholder issue. These issues
should form the basis for engaging with communities and surrounding stakeholders at the power
stations should any of the options under investigation be implemented.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 44
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Figure 4-3: Stakeholder issues per power station
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 45
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
5 Impact Assessment and Options Analysis Following the completion of the compilation of the macro-economic and socio-economic baseline,
the review of strategies and plans, and the stakeholder analysis, SRK completed the identification
and assessment of the potential changes and impacts of each of the three options for each power
station.
The Pugh Matrix Method, a quantitative, multi-dimensional decision analysis technique, is used to
compare the three options against the current baseline in order to identify a preferred option. To do
this, a basic decision matrix was developed, consisting of a set of weighted criteria to rate the
potential options against. Seven criteria were identified and further expanded, ending with 19 sub-
criteria.
The performance of each option for each power station was rated against these sub-criteria on a
scale from 1 to 5, as per Table 5-1.The rating was multiplied by the weighting, to give an overall
score. The weighting was done on a scale from 1 to 3, where a category with a weighting of 3 is
more important than a category with a weighting of 1. The maximum score that can be reached is
15, and the minimum score is 1 as per Table 5-2. The higher the final score of sub-criteria, the
better/more ideal the change/impact of the option in regards to the sub-criteria under assessment.
Table 5-1: Rating definitions
Rating Definition
1 The power station will be responsible for significant and sustained negative impact/change
2 The power station will be responsible for a small negative impact/change
3 The power station will be responsible for limited positive or negative socio-economic impacts/changes
4 The powers station will be responsible for positive (possibly intermittent) socio-economic impacts/changes
5 The power station will be a significant contributor to the socio-economic environment
Table 5-2: Weighting multiplied by rating scores
We
igh
tin
g 3 3 6 9 12 15
2 2 4 6 8 10
1 1 2 3 4 5
1 2 3 4 5
Rating
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 46
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
As mentioned, the final score of each sub-category was completed by multiplying the weighting by
the rating. The final rating score was placed into three categories, as per Table 5-3.
Table 5-3: Final score definition
Score Definition
1-5
Poor -The outcome will result in overall negative socio-economic changes/impacts. Increased grievances and community/stakeholder dissatisfactions, and stakeholder instability, could occur.
6-10 Medium - The outcome will result in manageable socio-economic changes/impacts. Some grievances may still occur.
11-15 Good -The outcome will have potentially positive socio-economic results.
As mentioned, seven impact categories with 19 impact sub-categories in total were identified to
assess the options against. These are:
Employment and Procurement Impacts
o Direct employment – current and expected total number of permanent employees and
contractors; and,
o Procurement – current and expected services provided to the power stations such as
trucking, catering, maintenance, etc.
Environmental Impacts
o Air emissions – current and expected reported grievances related to stack emissions
based;
o Fugitive dust – current and expected reported grievances related to dust emanating from
the ash dams and stockpiles;
o Surface water pollution – current and expected reported grievances related to
contamination of surrounding water sources;
o Ground water pollution – current and expected reported grievances related to
contamination of groundwater due to seepage; and,
o Water usage – current and expected water requirements for the power station.
CSI and Training Impacts
o CSI contribution – current and expected contribution of the Eskom Foundation to the socio-
economic development of the area; and,
o Education and training – current and expected training and upskilling of employees per site.
Service Delivery Impacts
o Water – current and expected provision of potable water to local communities and
municipalities;
o Electricity – current and expected provision of electricity to local communities and the
municipalities;
o Sanitation – current and expected provision of water treatment works to the municipality
and maintenance of infrastructure; and,
o Waste removal – current and expected provision of waste removal services and land fill
sites.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 47
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Coal Sourcing Impacts
o Trucking – current and expected transportation of coal from source to stockpiles (negative
impacts related to safety, environment, damage to roads and nuisance impacts).
Land Take Impacts
o Current and expected environmental impacts linked to the potential loss of biodiversity and
wetland health; and,
o Current and expected socio-economic impacts linked to potential economic and/ physical
displacement.
Regional and National Economic Contribution Impacts
o Power supply – current and expected capacity available to the national power grid;
o GDP contribution – current and expected contribution to the GDP; and,
o Local and regional economic multipliers – current and expected cumulative contribution to
the local economy.
The options analysis against these criteria is summarised in this section, and the details are
documented in Appendix E. These options, as discussed in section 1 of this report, are listed again
below:
Option 1: Lifex and Modernisation (Refurbishment);
Option 2 : Repower with Biomass or Gas;
Option 3: Rebuild as PF or CFBC (Demolish and rebuild); and,
Option 4: Do not renew (Decommission).
Hendrina Power Station
Hendrina power station is analysed against the assessment criteria in the table below, as illustrated
in Figure 5-1.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 48
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table 5-4: Hendrina power station options analysis
Socio-economicCriteria
Hendrina Overall Assessment
Employment andProcurement
Options 1 and 3 will result in a medium to high positive impact. Hendrina power station currently employs a total of 690 employees, 670 of which reside in Pullenshope, which is ± 4km away from the power station. Pullenshope is a settlement that came into existence to house Eskom employees. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be higher for Option 3 (Fleet Renewal Assumptions, 2016).
Additionally, Hendrina provides procurement opportunities for coal trucking and several other businesses such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc., which in turn provide spin-off employment opportunities to the local and regional communities. Sourcing of components for the refurbishment and rebuild (Options 1 and 3) could potentially lead to additional jobs, although for a short period.
Implementing Option 4 at Hendrina power station will lead to loss of employment for the community of Pullenshope (670), which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 2000 dependents of these employees. This also has a potential to result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional and national scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country.
Environmental Impacts
Options 1 and 3 will result in a continuation in environmental impacts, particularly fugitive dust with a rating of 2 and surface water pollution with a rating of 4, if not properly managed. Due to the continuation of wet cooling for Option 1, a lot more water will be used as compared to Option 3, which will use a dry cooling system, resulting in water shortages and/or restrictions for other users. On the other hand, groundwater and surface water pollution from operations of the power station will further limit the amount of potable water available for domestic use. Because Hendrina power station supplies potable water to the Pullenshope community and Hendrina, demand for additional water at the power station might affect these communities, especially during drought periods and water restrictions.
Option 4 will result in a medium rating for air emissions, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users.
LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities.
ServiceDelivery
Hendrina power station supplies potable water, electricity and waste removal services to Pullenshope and Woestalleen mines. Water and electricity are supplied to the municipality who then provide it to the community. The power station assists with waste removal and utilises their landfill site. Sewerage is treated at the Eskom treatment plant.
Options 1 and 3 have the potential to maintain or increase the provision of services to the surrounding communities and the municipality, resulting in a positive socio-economic impact to the area.
Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, thus potentially limiting access of these services for the community.
Coal Sourcing Hendrina power station sources its coal from the surrounding mines of Optimum and Woestalleen. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities could potentially decrease should Option 4 be implemented.
Land Take Option 1 will require additional land for the storage of ash, gypsum and limestone. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders.
Option 3 will also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 49
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Socio-economicCriteria
Hendrina Overall Assessment
grievances, deterioration of relationships between the power station and communities, disturbance/ loss of existing livelihoods and vulnerability of those affected.
Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view.
Local and Regional Economic Multipliers
Options 1 and 3 will allow for Hendrina power station to continue contributing to the national and regional power supply in the area, thus maintaining the status quo.
With Option 4, it is possible that Hendrina will no longer contribute towards the national grid thus reducing capacity and access. Contribution to the economy will also decline significantly. Other service providers that are reliant on the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3.
Recommended option based on social situation analysis:
Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses.
However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both
options however reduce the emissions of CO2, sulphur dioxide (SOx), and nitrogen dioxide (NOx
due to the installation of FGD.
In terms of the relationship between the power station and the communities, these Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning.
From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum.
Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
50
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
5-1
: H
en
dri
na p
ow
er
sta
tio
n o
pti
on
an
aly
sis
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 51
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Arnot Power Station
Arnot power station is analysed against the assessment criteria in the table below, as illustrated in
Figure 5-2.
Table 5-5: Arnot power station options analysis
Socio-economicCriteria
Arnot Overall Assessment
Employment andProcurement
Arnot power station currently employs a total of 710 employees, 94.0% (666) residing in Rietkuil. Arnot power station also provides procurement opportunities for coal trucking and several other businesses, which in turn provide employment to about 300 people. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. Coal was previously supplied to Arnot from Exxaro (this mine has now closed). Arnot power station now trucks in all of their coal requirements (sourced from Glencore and Goedehoop mines). However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be higher for Option 3 (Fleet Renewal Assumptions, 2016).
Options 1 and 3 will result in a medium to good positive impact to the local communities, current employees and business service providers of the power station such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc, which in turn provide additional jobs regionally and locally. During the construction phase of the units being refurbished or rebuilding the power station (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time.
Implementing Option 4 at Arnot power station could lead to job losses for current employees in the community of Rietkuil and surroundings (666), which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 2 000 dependents of these employees. Job losses could potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country.
Environmental Impacts
Options 1 and 3 may result in continuation in environmental impacts, particularly fugitive dust and surface water pollution, which have ratings of 3 and 4 respectively and could both lead to continued negative impact to the surrounding community, if not managed.
Water usage for Option 1 will be higher as it will be continuing with the wet cooling systems, whereas Option 3 will be using dry cooling for the installation of FGD technologies that will enable Eskom to meet new emissions requirements. As a result, Option 1 will potentially result in water shortages and/or restrictions for other users especially in the wake of climate change and resultant impacts.
Option 4 will result in a medium rating for air emissions and fugitive dust, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users. There will however, still be residual groundwater and air quality impacts from the existing waste facilities.
LED and CSI Options 1 and 3 will allow the Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities.
ServiceDelivery
Arnot power station supplies potable water, and electricity to Rietkuil and Arnot mines at heavily subsidised rates. Other services such as waste removal are managed by the municipality. All upkeep and maintenance are also well managed by the municipality.
Options 1 and 3 have the potential to maintain or increase the provision of services to the Rietkuil and Arnot mine, resulting in a positive socio-economic impact to the area.
Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, potentially limiting access of these services for the community should there be capacity constraints at the municipality.
Coal Sourcing Arnot power station sources its coal from Goedehoop mine. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads,
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 52
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Socio-economicCriteria
Arnot Overall Assessment
grievances by local farmers and communities, social ills associated with trucking such as prostitution could potentially decrease should Option 4 be implemented.
Land Take Option 1 will require additional land for the storage of ash, gypsum and limestone. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders.
Option 3 will require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/loss of existing livelihoods and vulnerability of those affected.
Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view.
Local and Regional Economic Multipliers
Options 1 and 3 will allow for Arnot power station to continue contributing to the national and regional power supply in the area, thus maintaining the status quo. With Option 4, it is possible that Arnot power station will no longer contribute towards the national grid thus reducing capacity and access. Contribution to the economy will also decline significantly. Other service providers that are reliant on the continued operation of the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3.
Recommended option based on social situation analysis:
Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment levels, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses.
However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both
options however reduce the emissions of CO2, SOx, and NOx, due to the installation of FGD.
In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning.
From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum.
Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
53
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
5-2
: A
rno
t p
ow
er
sta
tio
n o
pti
on
s a
naly
sis
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 54
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Komati Power Station
Komati power station is analysed against the assessment criteria in the table below, as illustrated
in Figure 5-3.
Table 5-6: Komati power station options analysis
Socio-economicCriteria
Komati Overall Assessment
Employment andProcurement
Options 1 and 3 will result in a medium to good positive impact on the local communities, current employees and business service providers of the power station. Komati power station currently employs a total of 470 employees, 439 (93.0%) of which reside in Emalahleni. However, both Options 1 and 3 will not require
permanent employees during the refurbishment and rebuilding process. The impact on employees will be similar for both options (Fleet Renewal Assumptions, 2016).
Additionally, Komati provides procurement opportunities for coal trucking and several other businesses such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc, which in turn provide further employment opportunities locally and regionally. No labour will be lost for Option 1 and 3, and continuous employment will be maintained for an additional 50 years. During the construction phase of the units being refurbished or the rebuilding of the power station (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time.
Implementing Option 4 at Komati power station could lead to job losses for the communities within the ZoI. Currently Komati employs a total of 439 people from the local areas, which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 1 500 dependents of these employees. Job losses could potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes.
However, on a regional scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country.
Environmental Impacts
Options 1 and 3 will result in continuation in environmental impacts, particularly air emissions and groundwater pollution with a rating of six and a medium impact to the surrounding communities, if not properly managed. Although FGD will be installed to abate emissions, this installation will require a lot more water since the wet cooling system will continue. This will potentially result in water shortages and/or restrictions for other users. Surface water pollution and fugitive dust remain high, with grievances received from local farmers who also claimed that the power station was responsible for fluoride pollution in the water, which was killing cattle.
Option 4 will result in a medium rating for air emissions and fugitive dust, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users.
LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund.
However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities.
ServiceDelivery
Komati power station supplies potable water, and electricity to Komati at heavily subsidised rates. Other services such as waste removal are managed by the municipality. All upkeep and maintenance are also well managed by the municipality.
Options 1 and 3 have the potential to maintain or increase the provision of services to the Komati Village and the municipality, resulting in a positive socio-economic impact to the area.
Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, thus potentially limiting access of these services for the community due to possible capacity constraints at the municipality.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 55
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Socio-economicCriteria
Komati Overall Assessment
Coal Sourcing Komati power station sources its coal from the Koornfontein mine (Optimum) and surplus trucked in. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities, social ills associated with trucking such as prostitution could potentially decrease should Option 4 be implemented.
Land Take Option 1 will require additional land for the storage of ash, gypsum and lime. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders.
Option 3 might also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/ loss of existing livelihoods and vulnerability of those affected.
Option 4 will not require additional land and is therefore the most preferred option from this point of view.
Local and Regional Economic Multipliers
Options 1 and 3 will allow for Komati power station to continue contributing to the national and regional power supply in the area, thus maintaining the status quo. With Option 4, it is possible that Komati will no longer contribute towards the national grid thus reducing capacity and access. Contribution to the local economy in terms of payments of rates and taxes to the municipality will also decline significantly. Other service providers that are reliant on the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3.
Recommended option based on social situation analysis:
Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses.
However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both
options however reduce the emissions of CO2, SOx, and NOx due to the installation of FGD.
In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning.
From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum.
Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
56
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
5-3
: K
om
ati
po
we
r sta
tio
n o
pti
on
s a
naly
sis
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 57
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Camden Power Station
Camden power station is analysed against the assessment criteria in the table below, as illustrated
in Figure 5-4.
Table 5-7: Camden power station options analysis
Socio-economicCriteria
Camden Overall Assessment
Employment andProcurement
Options 1 and 3 will result in a medium to high positive impact. Camden power station currently employs a total of 373 employees, 363 of them coming from within Mpumalanga Province. Although 351 of employees reside in Ermelo, it is not clear if all of them are permanent residents or if they have migrated to the area to seek employment. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be similar for both options (Fleet Renewal Assumptions, 2016).
With the life span increasing to 70 years, the employment created and procurement opportunities will be prolonged. Additionally, Camden provides procurement opportunities for coal trucking and several other businesses, which in turn provide employment to about 300 people. During the construction phase of the units being refurbished or the power station being rebuilt (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time.
Option 4 will result in a significant loss of employment for the current employees of Camden, which will potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes.
However, on a regional and national scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country.
Environmental Impacts
Options 1 and 3 will result in continuation in environmental impacts, which will be more than the status quo. Fugitive dust and surface water pollution will be the same for all the three options. However, surface water pollution for all the options remains a big environmental issue, with a rating of 3 out of 15.
Option 1 will use a lot more water than the other 2 options, which might result in water shortages and/ or restrictions for other users.
With Option 4, environmental impacts of air emissions, fugitive dust will decrease, whereas water usage for the operation will reduce significantly, and can be freed up for other users in the region such as mining, farming and domestic use.
LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities.
ServiceDelivery
Camden power station supplies water to the Vunene Mine and to Camden Village Army Base, with the Department of Public Works paying for this service for the Army Base. Water from Camden is not supplied to the Municipality and the community. Not all other services are provided by Camden. As a result, none of the options will have a negative impact to the community and Municipality, thus maintaining the existing status quo. On the other hand, should the life of the power station be extended due to Options 1 and 3, there is a possibility of the power station staring to provide these services to the municipality, or contributing.
Coal Sourcing Coal from Camden is sourced from Vunene Mine, ± 12km from Camden. In total, road trucks- meaning coal trucks moving coal from Vunene to Camden (12km distance) are 200 to 300 per day, while trucks offloading the train internally at Camden (no public road) are 300 to 400 per day. This in total processes about 700 trucks per day.
On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities could potentially decrease should Option 4 be implemented.
Land Take Option 1 will require additional land for the storage of ash, gypsum and lime. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 58
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Socio-economicCriteria
Camden Overall Assessment
Option 3 might also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land takes could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/loss of existing livelihoods and vulnerability of those affected.
Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view.
Local and Regional Economic Multipliers
Options 1 and 3 will allow for Camden power station to continue contributing to the national and regional power supply in the area, thus maintaining the status quo. With Option 4, it is possible that Camden will no longer contribute towards the national grid thus reducing capacity and access. Contribution to the local economy in terms of payments of rates and taxes to the Municipality will also decline significantly. Other service providers that are existent due to the power station might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3.
Recommended option based on social situation analysis:
Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses.
However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both
options however reduce the emissions of CO2, SOx, and NOx, due to the installation of FGD.
In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning.
From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum.
Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
59
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
5-4
: C
am
den
po
wer
sta
tio
n o
pti
on
s a
naly
sis
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 60
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Rapid Vulnerability/Self-sustenance Assessment of Local ZoI
Due to the pre-feasibility level of this study, as well as the socio-economic and situational similarities
between the power stations, determining vulnerability and communities’ resilience to the changes
brought about by each option for each of the power stations will be discussed here.
In summary, the communities adjacent to all the power stations have adaptive capacities ranging
from low to moderate. As such, for Options 1 and 3 communities vulnerability would ultimately be
lower. However, Option 4 will increase the vulnerability of the communities, especially due to the
lack of skills, high dependency rates, etc. The common patterns that might develop would be the
outmigration of the retrenched employees to the new build power stations in Limpopo Province or
to Gauteng Province, or elsewhere in search of employment.
For the purpose of this report, the following definitions apply to this assessment:
Community: Social system interactions encompassed within a definite geographic space;
Vulnerability: State of susceptibility to harm, powerlessness, and marginality of both physical
and social systems; and,
Adaptive capacity: Ability of a social system to respond/recover and/or absorb impacts12.
The vulnerability assessment is not reflected as an assessment criterion, since it will result in a
double count of aspects contained in the assessment criteria identified. Based on the information in
this report (506503/F1) the following existing stresses to the system have been noted:
Existing stresses to the system
Dependency on power stations for service delivery;
Significant levels of poverty, particularly in communities surrounding Camden;
Poor housing infrastructure: a large percentage of the communities living in informal settlements
including Kwazamakuhle;
High local unemployment;
Low skills level; and,
“one sector economy”: i.e. reliance on coal supply and energy generation.
Following careful consideration of the above existing socio-economic stresses and projected
changes, as well as narrative supplied in the socio-economic baseline, each power station’s
vulnerability and adaptive capacity is dealt with in the sub sections to follow.
5.5.1 Hendrina Power Station
Hendrina is an important local employer and the second biggest employer of the three power
stations after Arnot, directly employing 670 people from Pullenshope alone. Should the power
station be decommissioned, a large percentage of the Pullenshope community will be without a job,
many of whom are breadwinners for large households. This, along with a dependency on the power
station for the delivery of potable water, electricity and sanitation leave the Pullenshope community
highly vulnerable to change, specifically decommissioning. Pullenshope has grown around the
Hendrina power station, although it is also home to a number of people employed in other economic
activities, including mining and logistics. It can thus be assumed that the adaptive capacity of the
Pullenshope community can be deemed low to moderate, however, the broader receiving
12
Definitions sourced at: Colburn, L. (2011). Resilience, vulnerability, adaptive capacity and social capital.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 61
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
community for the Hendrina power station, which includes Hendrina town, is considered to comprise
a slightly more diversified economy, and as such, moderate to fair adaptive capacity is to be
assumed.
Important to note is the growth and existence of informal settlements in the greater receiving area
of the Hendrina power station, specifically the Kwazamakuhle township. Limited socio-economic
conditions, legacies of segregated South Africa, and ongoing reliance on parastatals and non-
governmental entities for the maintenance and formalisation thereof continue to hinder the
stabilisation of informal settlements in the receiving communities, which reduce the overall adaptive
capacity of the Hendrina power station’s receiving community. As with Arnot, Hendrina’s receiving
communities stands to lose larger socio-economic standpoints, specifically from an employment
and service delivery perspective. Options 1 and 3 would suggest the least impact in a socio-
economic vulnerability sense when compared to Option 4, however, greater thought and action
would increase adaptive capacity in terms of dependency on a “single” economy and non-diversified
economic activities.
5.5.2 Arnot Power Station
The towns of Arnot and Rietkuil were initially developed to accommodate employees at the Arnot
power station, later growing to accommodate employees on the surrounding mines as well. As such,
both towns are still reliant on the power station for direct and indirect employment, as well as service
delivery. Arnot provides sanitation, potable water and electricity to both Rietkuil and Arnot Villages,
as well as maintenance of parks and sidewalks in Rietkuil. As a result, the communities have come
to rely heavily on the power station for socio-economic opportunities and services. This has resulted
in a significant dependency on the power station, which renders the communities vulnerable to
changes at the operation, should they occur.
Coupled with this, existing socio-economic conditions (high unemployment and poverty levels, low
skills levels and poor housing and health care facilities) highlight the communities’ low adaptive
capacity and ability to absorb changes.
Therefore, the communities’ adaptive capacity can be considered low to moderate13. Should Options
1 or 3 be chosen, it will be far easier for the communities to adapt to changes as in both options,
the power station will continue to operate and carry employment status quo and service delivery.
However, should Option 4 go ahead, communities stand to lose 710 direct jobs and 600 plus indirect
employment and procurement opportunities.
5.5.3 Komati Power Station
Komati power station, although not as large as Arnot and Hendrina, is still a significant socio-
economic contributor to the regional and local economy of the receiving community, specifically in
terms of employment. Currently, the Komati power station provides 470 direct jobs. As experienced
in receiving communities for both Arnot and Hendrina, Komati power station provides electricity,
sanitation and potable water for receiving communities (including to the informal settlement of
Kwazamakuhle township).
However, on a spatial scale, Komati can be considered less significant to human settlement in terms
of local economics and social significance. While the communities of Komati and Blinkpan are the
closest receiving communities to the power station, the size of each is significantly smaller than both
Arnot and Hendrina. Furthermore, while not the sole alternative economic contributor to the local
13 Adaptive capacity deemed to be between non-resilience (low) to reasonably resilient (moderate). Capacity has been based on ability to cope relevant to current and future stresses, future impacts and access to social capital and resources.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 62
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
economy; mines such as Goedehoop (located adjacent to the Komati power station) are greater
contributors to the local employment pool, when compared to the Komati power station.
When all of the above considerations, compared with other socio-economic factors are drawn into
this vulnerability assessment, like the previous two power stations, Options 1 and 3 remain the
options more likely to be preferred by receiving communities. As such, Komati power station’s
receiving community can be deemed to carry a moderate to fair adaptive capacity to Options 1 or
3, however, a change due to Option 4 could potentially see adaptive capacity slipping to low to
moderate.
5.5.4 Camden Power Station
The apparent rural status quo of Camden suggests that while the power station is an important
contributor to the regional economy, farming and other livelihood activities leave the communities’
adaptive capacity moderate to fair. While the existing socio-economics of the receiving community
are poor, the local economy is more diversified and not necessarily as reliant on the power station
as the other three power stations. Camden is the lowest employer of the three power stations (373
permanent) and, although a significant employer to the surrounding community, it is not the biggest
employer. The social baseline study indicates farm labour to be the largest employer of the local
community.
An exception to this, however, is areas where adaptive capacity of the local communities of Camden
and Sheepmoor remain highly dependent on the power station not only for service delivery (potable
water and electricity in isolated parts of the receiving community) but also for limited housing,
infrastructure and training opportunities.
The receiving area of Camden power station has the poorest existing socio-economic conditions
and municipality funding shortfalls (district and local). Although it does not have the lowest adaptive
capacity directly related to this project, it is imperative to note that Camden power station’s receiving
community continues to experience socio-economic issues over and beyond what can be directly
related to the power station. As such, should Option 4 (decommissioning) be considered, the
receiving community might be seen as highly vulnerable to any social capital and/or community
change, regardless.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 63
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
6 Risk Assessment
Risk Assessment Matrix Development
A socio-economic risk assessment was completed for each option and was informed by the results
of the economic and socio-economic context as well as the results of the options analysis. These
factors informed the identification and characterisation of threats and opportunities.
A 5x5 matrix was used to identify and characterise the threats and opportunities by assessing the
consequence and probability thereof. This technique is primarily a Probability-Consequence Matrix
where each threat/opportunity is assessed against defined scales and placed on a matrix where the
calculation thereof represents the relative significance of the threat/opportunity, allowing it to be
ranked. Table 6-1 is the key to the characterisation of the threats and Table 6-2 the key to the
characterisation of the opportunities.
Table 6-1: Threat risk rating
Table 6-2: Opportunity risk rating
Risk Assessment
The risk assessment per option is reflected in Table 6-3.
Risk Rating Risk Level
21 to 25 High
13 to 20 Significant
6 to 12 Medium
1 to5 Low
A low risk exists that management’s objectives may not be achieved.
Monitor risk, no further mitigation required.
Guidelines for Risk Matrix
A high risk exists that management’s objectives may not be achieved.
Appropriate mitigation strategy to be devised immediately.
A significant risk exists that management’s objectives may not be achieved.
Appropriate mitigation strategy to be devised as soon as possible.
A moderate risk exists that management’s objectives may not be achieved.
Appropriate mitigation strategy to be devised as part of the normal management process.
Opportunity
Rating Opportunity Level
21 to 25 High
13 to 20 Significant
6 to 12 Medium
1 to5 Low
A low opportunity exists that management’s objectives may not be achieved.
Appropriate strategy to be devised immediately if linked to threat
Guidelines for Opportunity Matrix
A high opportunity exists that management’s objectives may be achieved.
Appropriate strategy and monitor opportunities/related/policies/plans
A significant opportunity exists that management’s objectives may be achieved.
Appropriate strategy to be devised as as part of the normal management process.
A moderate opportunity exists that management’s objectives may not be achieved.
Appropriate strategy to be devised as soon as possible
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
64
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 6
-3:
Ris
k a
naly
sis
Th
reat/
Op
po
rtu
nit
y
Desc
rip
tio
n
Ca
use
(s)
C
on
seq
uen
ce(s
)
Co
nseq
uen
ce r
ati
ng
(1-5
) 1
is l
ow
co
nse
qu
en
ce
a5
is
hig
h c
onsequence
Pro
bab
ilit
y r
ati
ng
(1-5
) 1
is low
co
nse
qu
en
ce
a5
is h
igh
co
nseq
ue
nce
Ra
tin
g
Op
tio
n 1
: L
ifex a
nd
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Pote
ntia
l econom
ic
and
/o
r ph
ysic
al dis
pla
cem
ent
A
dditio
na
l la
nd
req
uire
ments
fo
r constr
uctio
n o
f ne
w a
sh d
am
s l
ead
ing t
o
involu
nta
ry d
ispla
cem
ent
Constr
uction
of
additio
nal
ash
dam
/s
and/o
r in
frastr
uctu
re
Could
im
pact
on o
pera
tio
n a
nd c
onstr
uctio
n t
imelin
es
Budg
et
implic
ations f
or
resettle
ment
Socia
l unre
st
Reputa
tionald
am
ag
e/r
isk
44
16
Com
mun
ity an
d em
plo
ye
e u
nre
st
and d
isru
ption
P
ote
ntia
l jo
b
loss
duri
ng
do
wntim
e
to
com
ple
te r
efu
rbis
hm
ent
Pote
ntia
l lo
ss
of
em
plo
ym
ent
duri
ng
do
wntim
e
Could
impact o
n o
pera
tion a
nd c
onstr
uctio
n tim
elin
es, as
we
ll as b
ud
get
42
8
Inade
qu
ate
com
munic
atio
n
with
sta
keho
lders
P
ote
ntia
l in
eff
ective com
mu
nic
ation w
ith
sta
keho
lders
could
le
ad
to
confu
sio
n,
unre
alis
tic e
xp
ecta
tions a
nd u
nre
st
Lack o
f cle
ar
enga
gem
ent
str
ate
gy
Loss o
f sta
keh
old
er
supp
ort
Rep
uta
tio
nal d
am
ag
e
35
15
Incre
ase
d h
ealth im
pacts
D
ue
to
incre
ased
fugitiv
e
dust
leve
ls,
hea
lth-r
ela
ted
impacts
cou
ld
pote
ntially
in
cre
ase
Continue
d
op
era
tio
ns
from
coal
as
a
sourc
e o
f en
erg
y
Incre
ase
d nu
mber
of
trucks,
specific
ally
duri
ng c
onstr
uction
Continue
d a
nd
in
cre
ased en
vironm
enta
l im
pacts
fr
om
contin
ue
d
ope
rations
an
d
from
insta
llatio
n o
f F
GD
(additio
nal
ash,
gypsum
, dis
po
sal fa
cili
ties)
respective
ly
Health im
pacts
and incre
ased
grieva
nces
24
8
Continue
d d
ep
end
ency o
n E
skom
fo
r serv
ice d
eliv
ery
C
urr
ently
Eskom
pro
vid
es
munic
ipal
serv
ices t
o local com
mu
nitie
s
Lack
of
resourc
es
within
lo
cal
munic
ipa
litie
s t
o a
ddre
ss g
row
ing s
erv
ice
re
qu
irem
ents
Rep
uta
tio
nal
dam
ag
e d
ue t
o p
erc
eiv
ed r
esp
onsib
ility
to
E
skom
for
serv
ice d
eliv
ery
Fin
ancia
l im
plic
ations
45
20
Incre
ase
d C
O2 e
mis
sio
ns
Incre
ase
d
CO
² b
y-p
roduct
due
to
ne
w
techno
log
y r
eq
uirem
ents
for
Option 1
A
ll units w
ill n
eed t
o b
e i
nsta
lled w
ith a
F
GD
to r
educe s
ulp
hur
dio
xid
e e
mis
sio
ns.
Ho
wever,
in
sta
lling
FG
D
will
in
cre
ase
re
lative
CO
2
em
issio
ns
from
th
e
po
we
r sta
tions
Exce
ed
ing
the
C
O2
em
issio
ns
cap
resultin
g
in
no
n-
com
plia
nce a
nd p
en
alis
atio
n
24
8
Op
tio
n 3
: R
eb
uil
d a
s P
F o
r C
FB
C (
Dem
oli
sh
an
d r
eb
uild
)
Pote
ntia
l econ
om
ic a
nd/o
r p
hysic
al
dis
pla
cem
ent
A
dditio
na
l la
nd
req
uire
ments
fo
r constr
uctio
n o
f ne
w a
sh d
am
s l
ead
ing t
o
involu
nta
ry d
ispla
cem
ent
Constr
uction
of
additio
nal
ash
dam
/s
and/o
r in
frastr
uctu
re
Could
im
pact
on o
pera
tio
n a
nd c
onstr
uctio
n t
imelin
es
Budg
et
implic
ations f
or
resettle
ment
Socia
l unre
st
Reputa
tionald
am
ag
e/r
isk
54
20
Com
mun
ity an
d em
plo
ye
e u
nre
st
and d
isru
ption
P
ote
ntia
l jo
b
loss
duri
ng
do
wntim
e
to
com
ple
te r
efu
rbis
hm
ent
Pote
ntia
l lo
ss
of
em
plo
ym
ent
duri
ng
do
wntim
e
Could
impact o
n o
pera
tion a
nd c
onstr
uctio
n tim
elin
es, as
we
ll as b
ud
get
43
12
Inade
qu
ate
com
munic
atio
n
with
sta
keho
lders
P
ote
ntia
l in
eff
ective com
mu
nic
ation w
ith
sta
keho
lders
could
le
ad
to
confu
sio
n,
unre
alis
tic e
xp
ecta
tions a
nd u
nre
st
Lack o
f cle
ar
enga
gem
ent
str
ate
gy
Loss o
f sta
keh
old
er
supp
ort
Rep
uta
tio
nal d
am
ag
e
35
15
Incre
ase
d h
ealth im
pacts
D
ue
to
incre
ased
fugitiv
e
dust
leve
ls,
hea
lth-r
ela
ted
impacts
cou
ld
pote
ntially
in
cre
ase
Additio
na
l ash d
am
s a
nd s
tockpile
s w
ill b
e
constr
ucte
d
Incre
ase
d nu
mber
of
trucks,
specific
ally
duri
ng c
onstr
uction
Health im
pacts
an incre
ase
d g
rievances
24
8
Incre
ased C
O²
em
issio
ns
Incre
ased
CO
2
by-p
rod
uct
due
to
ne
w
techno
log
y r
eq
uirem
ents
for
Option 3
A
ll units w
ill n
eed t
o b
e i
nsta
lled w
ith a
F
GD
to r
educe s
ulp
hur
dio
xid
e e
mis
sio
ns.
Ho
wever,
in
sta
lling
FG
D
will
in
cre
ase
re
lative
CO
2
em
issio
ns
from
th
e
po
we
r sta
tions
Exce
ed
ing
the
C
O2
em
issio
ns
cap
resultin
g
in
no
n-
com
plia
nce a
nd p
en
alis
atio
n
24
8
Continue
d d
ep
end
ency o
n E
skom
fo
r serv
ice d
eliv
ery
C
urr
ently
Eskom
pro
vid
es
munic
ipal
serv
ices t
o local com
mu
nitie
s
Lack
of
resourc
es
within
lo
cal
munic
ipa
litie
s t
o a
ddre
ss g
row
ing s
erv
ice
re
qu
irem
ents
Rep
uta
tio
nal
dam
ag
e d
ue t
o p
erc
eiv
ed r
esp
onsib
ility
to
E
skom
for
serv
ice d
eliv
ery
Fin
ancia
l im
plic
ations
45
20
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
65
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Th
reat/
Op
po
rtu
nit
y
Desc
rip
tio
n
Ca
use
(s)
C
on
seq
uen
ce(s
)
Co
nseq
uen
ce r
ati
ng
(1-5
) 1
is l
ow
co
nse
qu
en
ce
a5
is
hig
h c
onsequence
Pro
bab
ilit
y r
ati
ng
(1-5
) 1
is low
co
nse
qu
en
ce
a5
is h
igh
co
nseq
ue
nce
Ra
tin
g
Op
tio
n 4
: D
o n
ot
ren
ew
(D
eco
mm
issio
nin
g)
Loss
of
dir
ect
and
indirect
em
plo
ym
ent
Due t
o t
he d
ecom
mis
sio
nin
g a
nd c
losure
of
po
wer
sta
tio
ns,
jobs w
ill n
o l
on
ger
be
availa
ble
Decom
mis
sio
nin
g o
f po
we
r sta
tions
Lack o
f socia
l clo
sure
pla
n
Rep
uta
tio
nal d
am
ag
e
Loss o
f sta
keh
old
er
supp
ort
Socia
l unre
st
Fin
ancia
l im
plic
ations
55
25
Safe
ty r
isks a
round e
xis
ting s
ites
Decom
mis
sio
ned
sites
will
re
quire
monitori
ng
and
mana
gem
ent
for
a
pro
tracte
d p
eri
od
Una
uth
orised a
ccess t
o d
ecom
mis
sio
ne
d
sites
Lack o
f socia
l clo
sure
pla
n
Opport
un
istic s
ettle
ment
Pote
ntia
l fo
r in
jurie
s o
r fa
talit
ies
Rep
uta
tio
nal d
am
ag
e
Litig
ation r
isk
Fin
ancia
l im
plic
ations
52
10
Inade
qu
ate
com
munic
atio
n
with
sta
keho
lders
P
ote
ntia
l in
eff
ective com
mu
nic
ation w
ith
sta
keho
lders
could
le
ad
to
confu
sio
n,
unre
alis
tic e
xp
ecta
tions a
nd u
nre
st
Lack o
f cle
ar
enga
gem
ent
str
ate
gy
Lack o
f socia
l clo
sure
pla
n
Loss o
f sta
keh
old
er
supp
ort
Rep
uta
tio
nal d
am
ag
e
45
20
OP
PO
RT
UN
ITIE
S
Op
tio
n 1
A/1
B:
Lif
ex a
nd
Mo
dern
isati
on
(R
efu
rbis
hm
en
t) a
nd
Op
tio
n 3
A/3
B:
Re
bu
ild
as
PF
or
CF
BC
( D
em
olis
h a
nd
re
bu
ild
)
Main
tenance
and/o
r in
cre
ase
of
curr
ent
em
plo
ym
ent
num
bers
M
ain
tain
ing
exis
ting
direct
and
ind
irect
em
plo
ym
ent
positio
ns
Refu
rbis
hm
ent
or
rebu
ild
of
exis
tin
g
po
we
r sta
tion
In
cre
ase in
con
tracto
r opport
unitie
s d
uri
ng r
efu
rbis
hm
ent
or
rebu
ild
Main
tain
curr
ent
socio
-econ
om
ic b
ase
line
34
12
Exte
nsio
n o
f lif
e o
f opera
tion
E
xte
ndin
g
the
lif
e
of
the
opera
tion
will
pro
long
em
plo
ym
ent
opp
ort
unitie
s,
CS
I spen
d
and
regio
na
l socio
-eco
nom
ic
deve
lopm
ent
Exte
nsio
n o
f th
e o
pera
tio
ns b
y 5
0 y
ears
as
a r
esult o
f re
furb
ishm
ent
or
rebuild
M
ain
tenance o
r enha
ncem
ent
of
reputa
tio
n
44
16
Develo
pm
ent
of
SM
ME
’s
Continue
d o
pe
ration w
ill a
llow
for
furt
her
deve
lopm
ent
of
local busin
esses
Exte
nsio
n o
f th
e o
pera
tio
ns b
y 5
0 y
ears
as
a r
esult o
f re
furb
ishm
ent
or
rebuild
Availa
bili
ty o
f ash f
or
brickm
akin
g
Main
tenance o
r enha
ncem
ent
of
reputa
tio
n
23
6
Op
tio
n 4
: D
o n
ot
ren
ew
(D
eco
mm
issio
nin
g)
Red
uced h
ea
lth a
nd s
afe
ty lia
bili
ty
If
pro
perl
y
man
age
d,
deco
mm
issio
nin
g
shou
ld r
esu
lt i
n d
ecre
ased a
ir e
mis
sio
ns,
dust,
wate
r conta
min
atio
n
and
oth
er
envir
onm
enta
l and
socio
-econom
ic
impacts
Decom
mis
sio
nin
g w
ith
out
dem
olis
hin
g
If p
roperl
y m
an
age
d,
impro
ve
d r
eputa
tion
Red
uced f
inan
cia
l re
sponsib
ilities
44
16
Sale
of
com
po
nents
an
d s
alv
age
D
ue to
d
ecom
mis
sio
nin
g,
pa
rts m
ay be
sold
or
re-u
sed
at
oth
er
opera
tions
Decom
mis
sio
nin
g w
ith
out
dem
olis
hin
g
Cost
savin
g
33
9
Han
din
g o
ver
of
serv
ices t
o l
oca
l m
unic
ipa
litie
s
Follo
win
g
de
com
mis
sio
nin
g,
additio
nal
serv
ices w
ou
ld be h
an
de
d o
ver
to lo
cal
munic
ipa
litie
s
Decom
mis
sio
nin
g w
ith
out
dem
olis
hin
g
Cost
savin
g
42
8
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 66
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
7 Conclusions and Recommendations This section summarises the conclusions and recommendations per study component, and then
proposes mitigation and enhancement measures to manage potential impacts.
Conclusions and Recommendations per Focus Area of Study
The findings of this study related to each option are provided in this section, for all the four power
stations. With the level of information available at the time of writing this report, it is important to
note that these are only indicative and should not be regarded as conclusive. Input from other
studies such as the technical and financial specialist reports is required to increase SRK’s
confidence level.
The conclusions are based on the following key components as per the scope of work and are
further discussed in Table 7-1.
Adherence to overarching national priorities and sustainable development goals;
Baseline information of the four power stations and vulnerability assessment;
Contribution to the local, regional and national economy;
Contribution to the national power grid;
Engagement with stakeholders;
Risk assessment; and,
Generation collaboration between local, regional and national contexts.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
67
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 7
-1:
Co
nclu
sio
ns a
nd
reco
mm
en
dati
on
s p
er
stu
dy c
om
po
nen
t
Op
tio
n
1:
Lif
ex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3:
Reb
uild
as
PF
o
r C
FB
C
(Dem
oli
sh
an
d R
eb
uil
d)
O
pti
on
4
: D
o
no
t re
new
(D
ec
om
mis
sio
nin
g)
Ke
y F
ocu
s A
rea:
Ad
he
ren
ce t
o N
DP
s a
nd
SD
Gs
Conclu
sio
ns
Option
1
mee
ts
the
socia
l and
econ
om
ic
requ
irem
ents
of th
e N
DP
, w
hic
h furt
her
rela
te
to S
DG
s p
rovid
ed in T
able
3-3
of
this
report
. C
ontinue
d e
mplo
ym
ent
is i
n a
lignm
ent
with
S
DG
s
1
and
2.
Ho
we
ver,
fr
om
an
envir
onm
enta
l poin
t of
vie
w,
the
pote
ntial
usag
e o
f m
ore
wate
r d
ue to F
GD
insta
llatio
ns
and c
ontinue
d w
et
coo
ling s
yste
ms m
ight
be
in
conflic
t w
ith S
DG
6,
wh
ich w
ill f
urt
her
limit
access
for
oth
er
wate
r users
, especia
lly
com
munitie
s r
ely
ing
on the p
ow
er
sta
tio
ns for
wate
r sup
ply
. In
additio
n,
CO
2
em
issio
ns
associa
ted w
ith
FG
D a
re a
lso in
contr
adic
tion
to
S
DG
13,
and as a re
su
lt,
this
w
ill lik
ely
re
sult
in
po
we
r sta
tions
exceed
ing
the
allo
cate
d
em
issio
ns
cap,
an
d
takin
g
on
a
larg
er
respo
nsib
ility
for
overa
ll em
issio
ns into
th
e a
tmosph
ere
.
Continuin
g w
ith
coal a
s a
fuel f
or
these p
ow
er
sta
tions
mea
ns
that
altern
ative
energ
y
optio
ns,
wh
ich
could
pote
ntia
lly b
e c
heap
er
and m
ore
susta
ina
ble
will
not be in
vestig
ate
d,
in c
on
tra
dic
tio
n w
ith
SD
G 7
.
Option
1
mee
ts
the
socia
l and
econ
om
ic
requ
irem
ents
of th
e N
DP
, w
hic
h furt
her
rela
te
to S
DG
s p
rovid
ed in T
able
3-3
of
this
report
. C
ontinue
d e
mplo
ym
ent
is i
n a
lignm
ent
with
S
DG
s
1
and
2.
Ho
we
ver,
fr
om
an
envir
onm
enta
l poin
t of vie
w, O
ption 3
will
use
m
ore
wa
ter
than c
urr
ent
usa
ge d
ue t
o F
GD
in
sta
llatio
ns.
Ho
wever,
it
will
use l
ess w
ate
r th
an O
ptio
n 1
beca
use i
t w
ill b
e u
sin
g a
dry
coolin
g s
yste
m,
This
, ho
weve
r, w
ill s
till
be in
conflic
t w
ith S
DG
6,
whic
h w
ill fu
rther
limit
access
for
oth
er
wate
r users
, especia
lly
com
munitie
s r
ely
ing
on the p
ow
er
sta
tio
ns for
wate
r sup
ply
. In
additio
n,
CO
² em
issio
ns
associa
ted w
ith
FG
D a
re a
lso in
contr
adic
tion
to
S
DG
13 an
d,
as a re
sult,
this
w
ill lik
ely
re
sult
in
po
we
r sta
tions
exceed
ing
the
allo
cate
d
em
issio
ns
cap,
an
d
takin
g
on
a
larg
er
respo
nsib
ility
for
overa
ll em
issio
ns into
th
e a
tmosph
ere
.
Continuin
g w
ith
coal a
s a
fuel f
or
these p
ow
er
sta
tions
mea
ns
that
altern
ative
energ
y
optio
ns,
wh
ich
could
pote
ntia
lly b
e c
heap
er
and m
ore
susta
ina
ble
will
not be in
vestig
ate
d,
in c
on
tra
dic
tio
n w
ith
SD
G 7
.
Pote
ntia
l jo
b lo
sses r
ela
ted t
o t
his
option a
re
in o
ppositio
n t
o t
he S
DG
s 1
, 2,
6 a
nd 7
. A
s a
re
sult, le
ve
ls o
f povert
y a
re lik
ely
to incre
ase,
especia
lly b
ecause th
e fo
ur
po
we
r sta
tions
are
the m
ain
em
plo
yers
of
the s
urr
oun
din
g
com
munitie
s.
Com
parin
g t
his
to t
he r
egio
nal
and n
atio
nal
conte
xt, th
ese jo
b lo
sses are
le
ss
sig
nific
ant,
especia
lly
if
altern
ative
po
we
r/
repla
cem
ent
sta
tions
will
be
esta
blis
he
d
els
ew
here
in
th
e
cou
ntr
y
an
d
pro
vid
e j
obs.
The n
egative a
spect
to t
his
for
the
local
com
munitie
s
is
that
these
com
munitie
s m
ight
not
necessarily
have t
he
skill
s to c
om
pete
for
these n
ew
jobs w
ith n
ew
te
chno
logie
s,
and m
ight
not
be a
ble
to m
ove
to
wh
ere
these jobs w
ill b
e.
If t
hey f
ollo
w t
he
jobs,
there
is
still
pote
ntia
l fo
r socia
l ill
s
deve
lop
ing s
uch a
s fam
ily d
isru
ptio
ns c
aused
b
y m
igra
tio
n.
Ho
wever,
due t
o d
iscontin
ue
d
opera
tions
of
the
pow
er
sta
tions,
envir
onm
enta
l concern
s i
nclu
din
g w
ate
r an
d
CO
² em
issio
ns w
ill im
pro
ve.
Reco
mm
end
ations
Info
rmation
rela
ting
to
the
level
of
skill
s
requ
ired fo
r th
e options w
as not
availa
ble
. H
ow
ever,
sho
uld
th
ere
be a
nee
d fo
r n
ew
skill
s
sets
fo
r th
is
optio
n,
Eskom
shou
ld
consid
er
pro
vid
ing
skill
s
to
curr
ent
em
plo
yees
and
surr
oun
din
g
com
munity
mem
bers
in
pre
para
tio
n
for
the
imple
menta
tion
of
this
optio
n.
This
could
be
don
e t
hro
ugh t
he E
skom
Fou
ndation.
Info
rmation
rela
ting
to
the
level
of
skill
s
requ
ired fo
r th
e options w
as not
availa
ble
. H
ow
ever,
sho
uld
th
ere
be a
nee
d fo
r n
ew
skill
s
sets
fo
r th
is
optio
n;
Eskom
shou
ld
consid
er
pro
vid
ing
skill
s
to
curr
ent
em
plo
yees
and
surr
oun
din
g
com
munity
mem
bers
in
pre
para
tio
n
for
the
imple
menta
tion
of
this
optio
n.
This
could
be
don
e t
hro
ugh t
he E
skom
Fou
ndation.
Re-t
rain
ing o
f exis
tin
g e
mplo
ye
es i
n p
ota
ble
skill
s
to
affo
rd
them
op
port
un
itie
s
for
em
plo
ym
ent
els
ew
here
, or
altern
ative
liv
elih
oods,
is i
mport
ant. R
e-t
rain
ing s
ho
uld
id
eally
b
e
alig
ne
d
with
lo
cal
skill
s
deve
lopm
ent
and/o
r em
po
we
rment
initia
tives.
Altern
atively
, pla
ns
for
rede
plo
ym
ent
of
em
plo
ye
es to
neig
hbori
ng
po
we
r sta
tions,
or
severa
nce
packa
ges fo
r th
ose w
ho a
re r
ead
y t
o f
ind a
ltern
atives o
n
their o
wn s
ho
uld
be p
ut
in p
lace.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
68
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Op
tio
n
1:
Lif
ex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3:
Reb
uild
as
PF
o
r C
FB
C
(Dem
oli
sh
an
d R
eb
uil
d)
O
pti
on
4
: D
o
no
t re
new
(D
ec
om
mis
sio
nin
g)
Ke
y F
oc
us
Are
a:
Ba
se
lin
e i
nfo
rma
tio
n o
f th
e f
ou
r p
ow
er
sta
tio
ns
an
d v
uln
era
bil
ity a
ss
es
sm
en
t
Conclu
sio
ns
The s
ocio
eco
nom
ic d
ata
for
the f
our
po
we
r sta
tions
has
revea
led
ke
y
socio
-econ
om
ic
str
esses p
er
po
wer
sta
tion,
alb
eit i
n s
lightly
diffe
rent
levels
. T
hese are
d
epe
nd
ency o
n
the
po
wer
sta
tions
for
se
rvic
e
deliv
ery
, sig
nific
ant
levels
of
povert
y,
poor
housin
g
infr
astr
uctu
re,
hig
h l
oca
l un
em
plo
ym
ent
an
d
low
leve
ls o
f skill
s. B
ased o
n this
info
rmation,
this
optio
n m
ight
not
be a
ble
to c
hang
e t
his
socio
-econ
om
ic
sta
tus,
but
could
possib
ly
main
tain
the c
urr
ent sta
tus q
uo, ensuri
ng that
these com
mu
nitie
s are
n
ot
furt
her
pushe
d
into
povert
y.
The s
ocio
eco
nom
ic d
ata
for
the f
our
po
we
r sta
tions
has
revea
led
ke
y
socio
-econ
om
ic
str
esses p
er
po
wer
sta
tion,
alb
eit i
n s
lightly
diffe
rent
levels
. T
hese are
d
epe
nd
ency o
n
the
po
wer
sta
tions
for
se
rvic
e
deliv
ery
, sig
nific
ant
levels
of
povert
y,
poor
housin
g
infr
astr
uctu
re,
hig
h l
oca
l un
em
plo
ym
ent
an
d
low
leve
ls o
f skill
s. B
ased o
n this
info
rmation,
this
optio
n m
ight
not
be a
ble
to c
hang
e t
his
socio
-econ
om
ic
sta
tus,
but
could
possib
ly
main
tain
the c
urr
ent sta
tus q
uo, ensuri
ng that
these com
mu
nitie
s are
n
ot
furt
her
pushe
d
into
povert
y.
The s
ocio
eco
nom
ic d
ata
for
the f
our
po
we
r sta
tions
has
revea
led
ke
y
socio
-econ
om
ic
str
esses p
er
po
wer
sta
tion,
alb
eit i
n s
lightly
diffe
rent
levels
. T
hese are
d
epe
nd
ency o
n
po
we
r sta
tions for
serv
ice d
eliv
ery
, sig
nific
an
t le
vels
of povert
y, p
oor
housin
g in
frastr
uctu
re,
hig
h l
ocal
une
mplo
ym
ent
an
d l
ow
leve
ls o
f skill
s.
Based
on
this
in
form
ation,
if
no
t pro
perl
y m
ana
ged,
this
optio
n w
ill p
ote
ntially
in
cre
ase th
e le
vels
of
povert
y in
th
e are
a,
thus g
oin
g a
gain
st
the S
DG
s 1
, 2 6
and 7
.
Reco
mm
end
ations
Eskom
shou
ld
consid
er
pro
vid
ing
skill
s
to
curr
ent
em
plo
ye
es
and
surr
ou
ndin
g
com
munity m
em
bers
in
pre
para
tio
n fo
r th
e
imple
menta
tion
of
this
optio
n.
This
could
be
don
e t
hro
ugh t
he E
skom
Fou
ndation.
Eskom
shou
ld
consid
er
pro
vid
ing
skill
s
to
curr
ent
em
plo
ye
es
and
surr
ou
ndin
g
com
munity m
em
bers
in
pre
para
tio
n fo
r th
e
imple
menta
tion
of
this
optio
n.
This
could
be
don
e t
hro
ugh t
he E
skom
Fou
ndation.
Pota
ble
skill
s t
rain
ing f
or
exis
ting e
mplo
ye
es
to
aff
ord
th
em
opport
unitie
s
for
re-
em
plo
ym
ent
els
ew
here
, or
altern
ative
liv
elih
oods i
s i
mport
ant. A
ltern
ative
ly,
pla
ns
for
redep
loym
ent
of
em
plo
ye
es
to
neig
hb
ouri
ng po
we
r sta
tions,
or
severa
nce
packa
ges fo
r th
ose w
ho are
re
ad
y to
fin
d
altern
atives s
hould
be p
ut
in p
lace.
Ke
y F
ocu
s A
rea:
Co
ntr
ibu
tio
n t
o t
he lo
cal,
reg
ion
al an
d n
ati
on
al
eco
no
my
Conclu
sio
ns
As p
art
of
Eskom
, th
ese f
our
po
wer
sta
tion
s
contr
ibute
sig
nific
antly t
o t
he e
conom
y o
f th
e
are
a. In
tota
l, E
skom
add
ed s
om
e R
53 b
illio
n
in re
ven
ue to
govern
ment
in financia
l year
201
4/1
5.
When
consid
eri
ng
direct
and
in
duced
effects
, i.e.
goods
and
serv
ices,
Eskom
’s i
mpa
ct
was e
stim
ate
d t
o b
e m
ore
th
an 5
% o
f th
e G
DP
in fin
ancia
l year
201
4/1
5
(KP
MG
R
eport
, undate
d).
T
his
optio
n
will
m
ain
tain
th
e
curr
ent
sta
tus
quo
but
als
o
contin
ue
the
contr
ibutio
n
of
the
po
wer
sta
tions to
wa
rds th
e G
DP
fo
r a pro
long
ed
peri
od o
f tim
e.
As p
art
of
Eskom
, th
ese f
our
po
wer
sta
tion
s
contr
ibute
sig
nific
antly t
o t
he e
conom
y o
f th
e
are
a. In
tota
l, E
skom
add
ed s
om
e R
53 b
illio
n
in re
ven
ue to
govern
ment
in financia
l year
201
4/1
5.
When
consid
eri
ng
direct
and
in
duced
effects
, i.e.
goods
and
serv
ices,
Eskom
’s i
mpa
ct
was e
stim
ate
d t
o b
e m
ore
th
an 5
% o
f th
e G
DP
in fin
ancia
l year
201
4/1
5
(KP
MG
R
eport
, undate
d).
T
his
optio
n
will
m
ain
tain
th
e
curr
ent
sta
tus
quo
but
als
o
contin
ue
the
contr
ibutio
n
of
the
po
wer
sta
tions to
wa
rds th
e G
DP
fo
r a pro
long
ed
peri
od o
f tim
e.
Imple
me
nting
th
is
option
will
le
ad
to
a
decre
ase i
n t
he c
ontr
ibution o
f th
ese p
ow
er
sta
tions
to
the
natio
nal
and
regio
nal
econ
om
y.
This
im
pact
will
be
felt
more
in
tensely
at th
e r
egio
nal a
nd lo
cal scale
, th
us
furt
her
lead
ing
to
decre
ased
financia
l capacity o
f th
e p
rovin
ce a
nd m
unic
ipa
lity t
o
pro
vid
e s
erv
ice
s t
o t
he local com
munitie
s.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
69
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Op
tio
n
1:
Lif
ex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3:
Reb
uild
as
PF
o
r C
FB
C
(Dem
oli
sh
an
d R
eb
uil
d)
O
pti
on
4
: D
o
no
t re
new
(D
ec
om
mis
sio
nin
g)
Reco
mm
end
ations
Main
tain
the s
tatu
s q
uo.
Main
tain
the s
tatu
s q
uo.
In c
onsultation
with o
ther
pa
rtners
such a
s
govern
ment, lo
cal busin
esses s
uch a
s m
ines
and o
ther
ke
y p
laye
rs i
n t
he r
egio
n,
ide
ntify
and p
lan f
or
altern
ative m
ea
ns o
f ensuri
ng
contin
ue
d c
ontr
ibution t
o t
he e
con
om
y o
f th
e
regio
n.
Ke
y F
ocu
s A
rea:
Co
ntr
ibu
tio
n t
o t
he N
ati
on
al
Po
wer
Gri
d
Conclu
sio
ns
Shou
ld this
option b
e im
ple
me
nte
d, th
e life o
f th
e
po
we
r sta
tion
will
b
e
incre
ase
d
to
60
ye
ars
, th
us c
on
tinuin
g to a
ddre
ss the e
xis
tin
g
po
we
r constr
ain
ts in
th
e cou
ntr
y.
It is
als
o
possib
le
that
duri
ng
this
tim
e,
altern
ative
po
we
r gen
era
tion o
ptions c
ou
ld b
e f
ou
nd i
n
oth
er
are
as.
Shou
ld this
option b
e im
ple
me
nte
d, th
e life o
f th
e
po
we
r sta
tion
will
b
e
incre
ase
d
to
60
ye
ars
, th
us c
on
tinuin
g to a
ddre
ss the e
xis
tin
g
po
we
r constr
ain
ts in
th
e cou
ntr
y.
It is
als
o
possib
le
that
duri
ng
this
tim
e,
altern
ative
po
we
r gen
era
tion o
ptions c
ou
ld b
e f
ou
nd i
n
oth
er
are
as.
Takin
g the four po
we
r sta
tions o
ff the n
ationa
l po
we
r grid w
ill r
educe the n
atio
nal c
apacity o
f ele
ctr
icity
pro
vis
ion
associa
ted
with
load
shed
din
g a
nd th
e pote
ntial
incre
ase in
th
e
cost of energ
y. H
ow
ever,
it is
anticip
ate
d that
the ne
w build
po
we
r sta
tion
s (M
edupi
an
d
Kusile
) m
ight
augm
ent
for
the
loss o
f po
we
r gen
era
ted
at
these
po
we
r sta
tions,
thus
main
tain
ing t
he
curr
ent
sta
tus q
uo.
Reco
mm
end
ations
Main
tain
the s
tatu
s q
uo.
Main
tain
the s
tatu
s q
uo.
Investigate
th
e pote
ntial
for
incre
asin
g th
e
capacity
of
the
ne
wly
built
po
we
r sta
tions
(Medu
pi
an
d
Kusile
) to
augm
ent
en
erg
y
supp
ly.
Ke
y F
ocu
s A
rea:
En
gag
em
en
t w
ith
sta
keh
old
ers
Conclu
sio
ns
This
option
will
re
qu
ire
exte
nsiv
e
eng
ag
em
ent
with s
takeho
lders
in a
n a
ttem
pt
to m
anag
e e
xpecta
tio
ns a
nd
fears
but
als
o
keep
lines
com
munic
atio
n
ope
n
an
d
transpare
nt, a
nd g
rievances m
onitore
d.
This
option
will
re
qu
ire
exte
nsiv
e
eng
ag
em
ent
with s
takeho
lders
in a
n a
ttem
pt
to m
anag
e e
xpecta
tio
ns a
nd
fears
but
als
o
keep
lines
com
munic
atio
n
ope
n
an
d
transpare
nt, a
nd g
rievances m
onitore
d.
This
option
will
re
qu
ire
exte
nsiv
e
eng
ag
em
ent
with s
takeho
lders
in a
n a
ttem
pt
to m
anag
e e
xpecta
tio
ns a
nd
fears
but
als
o
keep
lines
com
munic
atio
n
ope
n
an
d
transpare
nt, a
nd g
rievances m
onitore
d.
Reco
mm
end
ations
Each
po
wer
sta
tion
is
allo
cate
d
a
com
munic
atio
ns m
anager/
offic
er
wh
o s
hou
ld
be
lea
din
g
this
engagem
ent
with
sta
keho
lders
. T
he
develo
pm
ent
of
a
Sta
kehold
er
Engagem
ent
Pla
n
(SE
P)
to
guid
e
these
eng
ag
em
ents
is
im
port
ant,
coup
led w
ith t
he p
rop
er
iden
tification o
f ke
y
sta
keho
lders
who w
ill p
ote
ntia
lly b
e a
ffecte
d
by t
his
option.
The S
EP
should
als
o p
rovid
e
guid
ance
on
is
sues
surr
oun
din
g
ke
y
messag
es
and
man
agin
g
sta
keho
lde
r re
lations
and
expecta
tions.
A
grieva
nce
s
Each
po
wer
sta
tion
is
allo
cate
d
a
com
munic
atio
ns m
anager/
offic
er
wh
o s
hou
ld
be
lea
din
g
this
engagem
ent
with
sta
keho
lders
. T
he
develo
pm
ent
of
a
Sta
kehold
er
Engagem
ent
Pla
n
(SE
P)
to
guid
e
these
eng
ag
em
ents
is
im
port
ant,
coup
led w
ith t
he p
rop
er
iden
tification o
f ke
y
sta
keho
lders
who w
ill p
ote
ntia
lly b
e a
ffecte
d
by t
his
option.
The S
EP
should
als
o p
rovid
e
guid
ance
on
is
sues
surr
oun
din
g
ke
y
messag
es
and
man
agin
g
sta
keho
lde
r re
lations
and
expecta
tions.
A
grieva
nce
s
Each
po
wer
sta
tion
is
allo
cate
d
a
com
munic
atio
ns m
anager/
offic
er
wh
o s
hou
ld
be
lea
din
g
this
engagem
ent
with
sta
keho
lders
. T
he
develo
pm
ent
of
a
Sta
kehold
er
Engagem
ent
Pla
n
(SE
P)
to
guid
e
these
eng
ag
em
ents
is
im
port
ant,
coup
led w
ith t
he p
rop
er
iden
tification o
f ke
y
sta
keho
lders
who w
ill p
ote
ntia
lly b
e a
ffecte
d
by t
his
option.
The S
EP
should
als
o p
rovid
e
guid
ance
on
is
sues
surr
oun
din
g
ke
y
messag
es
and
man
agin
g
sta
keho
lde
r re
lations
and
expecta
tions.
A
grieva
nce
s
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
70
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Op
tio
n
1:
Lif
ex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3:
Reb
uild
as
PF
o
r C
FB
C
(Dem
oli
sh
an
d R
eb
uil
d)
O
pti
on
4
: D
o
no
t re
new
(D
ec
om
mis
sio
nin
g)
resolu
tion pro
cess shou
ld fo
rm part
of
the
SE
P.
The
SE
P
should
ta
ke
into
account
that
sta
keho
lder
gro
ups m
ight
respon
d d
iffe
rently
to d
iffe
rent
options.
Ap
pro
pri
ate
info
rmatio
n
and
messag
es
shou
ld
be
develo
pe
d
accord
ingly
.
resolu
tion pro
cess shou
ld fo
rm part
of
the
SE
P.
The
SE
P
should
ta
ke
into
account
that
sta
keho
lder
gro
ups m
ight
respon
d d
iffe
rently
to d
iffe
rent
options.
Ap
pro
pri
ate
info
rmatio
n
and
messag
es
shou
ld
be
develo
pe
d
accord
ingly
.
resolu
tion pro
cess shou
ld fo
rm part
of
the
SE
P.
The
SE
P
should
ta
ke
into
account
that
sta
keho
lder
gro
ups m
ight
respon
d d
iffe
rently
to d
iffe
rent
options.
Ap
pro
pri
ate
info
rmatio
n
and
messag
es
shou
ld
be
develo
pe
d
accord
ingly
.
Ke
y F
ocu
s A
rea:
Ris
k a
ss
essm
en
t
Conclu
sio
ns
Pote
ntial r
isks to E
skom
rela
ting to this
option
are
p
ote
ntial
econ
om
ic
and
ph
ysic
al
dis
pla
cem
ent,
com
munity
dis
satisfa
ctions,
unm
anag
ed
exp
ecta
tio
ns
and
co
ntinu
ed
dep
en
dence f
or
serv
ices b
y t
he m
un
icip
alit
y
and
local
co
mm
unitie
s.
Co
nseq
ue
nces
of
these r
isks a
re r
eputa
tiona
l d
am
ag
e a
nd t
he
lo
ss o
f a S
ocia
l Lic
ense t
o O
pera
te,
bu
dget
implic
atio
ns
for
resettle
me
nt,
com
munity
dis
satisfa
ctions,
wh
ich
could
als
o
lea
d
to
opera
tions a
nd
constr
uction t
ime d
ela
ys.
Pote
ntial r
isks to E
skom
rela
ting to this
option
are
p
ote
ntial
econ
om
ic
and
ph
ysic
al
dis
pla
cem
ent;
com
munity
dis
satisfa
ctions,
unm
anag
ed
exp
ecta
tio
ns
and
co
ntinu
ed
dep
en
dence f
or
serv
ices b
y t
he m
un
icip
alit
y
and
local
co
mm
unitie
s.
Co
nseq
ue
nces
of
these r
isks a
re r
eputa
tiona
l d
am
ag
e a
nd t
he
lo
ss o
f a S
ocia
l Lic
ense t
o O
pera
te,
bu
dget
implic
atio
ns
for
resettle
me
nt,
com
munity
dis
satisfa
ctions,
wh
ich
could
als
o
lea
d
to
opera
tions a
nd
constr
uction t
ime d
ela
ys.
Pote
ntial r
isks to E
skom
rela
ting to this
option
are
loss o
f dir
ect
and i
ndire
ct
em
plo
ym
ent,
safe
ty risks aro
und decom
mis
sio
ned sites,
and
unm
an
ag
ed
sta
keh
old
er
exp
ecta
tions.
Consequ
ences o
f th
ese r
isks a
re r
eputa
tion
al
dam
age a
nd t
he l
oss o
f a S
ocia
l L
icense t
o
Opera
te,
com
munity dis
satisfa
ctions,
wh
ich
could
als
o
result
in
litig
ation
risks,
and
financia
l im
plic
ations
for
ke
epin
g
the
sites
secure
d.
Reco
mm
end
ations
Pro
per
and
pla
nne
d
en
gagem
ent
with
sta
keho
lders
is r
equir
ed a
s p
art
of
the S
EP
. T
his
pla
n s
ho
uld
als
o p
rovid
e g
uid
ance o
n
issues s
urr
oun
din
g k
ey m
essages r
eg
ard
ing
th
e r
isks id
entified a
nd m
anagin
g s
takehold
er
rela
tions a
nd e
xp
ecta
tio
ns g
oin
g f
orw
ard
.
Pro
per
and
pla
nne
d
en
gagem
ent
with
sta
keho
lders
is r
equir
ed a
s p
art
of
the S
EP
. T
his
pla
n s
ho
uld
als
o p
rovid
e g
uid
ance o
n
issues s
urr
oun
din
g k
ey m
essages r
eg
ard
ing
th
e r
isks id
entified a
nd m
anagin
g s
takehold
er
rela
tions a
nd e
xp
ecta
tio
ns g
oin
g f
orw
ard
.
Pro
per
and
pla
nne
d
en
gagem
ent
with
sta
keho
lders
is r
equir
ed a
s p
art
of
the S
EP
. T
his
pla
n s
ho
uld
als
o p
rovid
e g
uid
ance o
n
issues s
urr
oun
din
g k
ey m
essages r
eg
ard
ing
th
e r
isks id
entified a
nd m
anagin
g s
takehold
er
rela
tions a
nd e
xp
ecta
tio
ns g
oin
g f
orw
ard
.
Ke
y F
ocu
s A
rea:
Nati
on
al,
reg
ion
al
an
d lo
cal
gen
era
tio
n c
oll
ab
ora
tio
n
Conclu
sio
ns
Shou
ld
Optio
n
1
be
imple
mente
d,
it
is
possib
le
that
togeth
er
with
the
ne
w
bu
ild
pro
jects
(M
edupi
an
d
Kusile
,)
there
could
pote
ntially
be s
urp
lus e
nerg
y f
or
the c
ou
ntr
y,
lea
din
g t
o c
hea
per
ele
ctr
icity o
vera
ll.
Shou
ld
Optio
n
2
be
imple
mente
d,
it
is
possib
le
that
togeth
er
with
the
ne
w
bu
ild
pro
jects
(M
edupi
an
d
Kusile
,)
there
could
pote
ntially
be s
urp
lus e
nerg
y f
or
the c
ou
ntr
y,
lea
din
g t
o c
hea
per
ele
ctr
icity o
vera
ll.
If O
ption 3 is
im
ple
me
nte
d fo
r an
y of
the
po
we
r sta
tion
s,
the
loss
of
genera
tio
n
capacity n
atio
nw
ide w
ill b
e a
ugm
ente
d b
y th
e
supp
ly f
rom
th
e n
ew
build
po
we
r sta
tions.
Reco
mm
end
ations
Main
tain
the s
tatu
s q
uo.
Main
tain
the s
tatu
s q
uo.
Impacts
re
lating
to
local
em
plo
ym
ent
an
d
local
eco
nom
ic
develo
pm
en
t should
ta
ke
pre
ce
dence
over
nation
wid
e
energ
y
requ
irem
ents
.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 71
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Response to Socio-Economic Consequences: Mitigation and Enhancement Measures
Pursuit of any of the three options assessed in this report will result in a variety of socio-economic
consequences. A number of these will be negative overall, with significant impacts on communities
and other stakeholders, and with the potential to generate negative sentiment, community
dissatisfaction and potential push back in the form of legal or other forms or recourse. In some
cases, the execution of specific options may have a net positive medium to long-term outcome.
Table 7-2 lists a series of mitigation and enhancement measures that might be considered for
particular options, at affected sites. The measures are described, and the context in which they
apply is outlined. The relevance of the measure to each of the options is then assessed. Whilst
socio-economic consequences vary somewhat from location to location, the variation is not
significant enough to warrant discussion site by site.
Some of these would be led and implemented by Eskom, whilst others could be undertaken in
partnership with others. Many of the mitigation and enhancement measures require significant lead-
time, and planning for implementation should begin timeously. The costs of the mitigation and
enhancement measures discussed here are not calculated for the purposes of this report, but the
potential for a cost should be taken into account in the evaluation of options.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
72
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le 7
-2:
Mit
igati
on
an
d e
nh
an
cem
en
t m
easu
res
Mit
igati
on
/En
han
cem
en
t M
easu
re
Co
nte
xt
Re
leva
nc
e
Op
tio
n
1A
/1B
: L
ifex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3A
/3B
: R
eb
uil
d as P
F o
r C
FB
C
(Dem
olish
an
d R
eb
uild
)
Op
tio
n
4:
Do
n
ot
ren
ew
(D
ec
om
mis
sio
nin
g)
Em
plo
yee
redeplo
ym
ent
and/o
r severa
nce
pla
nnin
g
and
im
ple
menta
tion
.
Inclu
des:
C
onsultatio
n a
nd e
nga
gem
en
t
P
lan
nin
g a
nd im
ple
me
ntin
g r
ede
plo
ym
ent
to o
ther
functions/o
pera
tions
P
lan
nin
g a
nd im
ple
me
ntin
g b
enefit
continu
ation/r
ep
lacem
ent
P
lan
nin
g a
nd im
ple
me
ntin
g s
evera
nce o
ptio
ns
Direct
em
plo
ym
ent
(perm
anent
and
contr
act)
Arr
ang
em
ents
fo
r te
mpora
ry
red
eplo
ym
ent
or
short
-term
la
y-o
ff
duri
ng r
efu
rbis
hm
ent
Arr
ang
em
ents
fo
r m
ediu
m
term
re
de
plo
ym
ent
and
fu
nction-r
ela
ted
se
ve
ran
ce
Full
red
ep
loym
ent
an
d
severa
nce
pla
nnin
g
and im
ple
menta
tion
Pre
-clo
sure
counselli
ng
an
d
capacity
build
ing
(short
te
rm
and
perm
anent
clo
sure
).
Inclu
des:
C
om
mun
icatio
n o
n o
pera
tion s
hort
sta
ffin
g a
nd/o
r clo
sure
arr
an
gem
ents
C
ou
nselli
ng o
n r
etire
ment
pla
nnin
g,
investm
ent, m
one
y
mana
gem
ent, d
ebt
man
ag
em
ent
A
dvic
e o
n s
mall
busin
ess d
evelo
pm
ent
and m
ana
gem
en
t
S
kill
s a
ssessm
ent
and t
arg
ete
d e
nh
ancem
en
t
Direct
em
plo
ym
ent
(perm
anent
and
contr
act)
Sm
all
se
rvic
e
pro
vid
ers
(e
specia
lly
em
po
we
rme
nt
com
panie
s)
Cou
nselli
ng
and
com
munic
atio
n
appro
pri
ate
to
part
ial
or
short
-term
clo
sure
Cou
nselli
ng
and
com
munic
atio
n
appro
pri
ate
to
m
ediu
m
-term
clo
sure
Cou
nselli
ng
and
com
munic
atio
n
appro
pri
ate
to
perm
anent
clo
sure
.
Full
suite o
f m
easure
s
Contr
acto
r /
serv
ice pro
vid
er
redeplo
ym
ent
and/o
r capacity build
ing
(latter
especia
lly in t
he c
ase o
f em
po
we
rment
contr
acto
rs).
Inclu
des:
C
onsultatio
n a
nd e
nga
gem
en
t
P
lan
nin
g a
nd im
ple
me
ntin
g r
ede
plo
ym
ent
to o
ther
functio
ns /
opera
tions
P
lan
nin
g a
nd im
ple
me
ntin
g b
usin
ess c
ou
nselli
ng f
or
sm
all
and
vuln
era
ble
co
ntr
acto
rs /
pro
vid
ers
Pro
cure
ment
Arr
ang
em
ents
fo
r te
mpora
ry r
ede
plo
ym
ent
A
rrang
em
ents
fo
r m
ediu
m
term
re
de
plo
ym
ent
and
possib
le
loss
of
conta
cts
du
e
to
chan
ges in f
un
ction
Full
red
eplo
ym
ent and /
or
busin
ess c
ounse
lling
Clo
sure
–re
late
d
sta
keho
lder
enga
gem
ent
(curt
aile
d
opera
tions,
tem
pora
ry a
nd p
erm
anent
clo
sure
).
Inclu
des e
ngag
em
ent
with:
E
mplo
ye
es (
se
e a
bove)
Loca
l govern
ment
S
upp
ly c
hain
contr
acto
rs
Direct
em
plo
ym
ent
Pro
cure
ment
LE
D a
nd C
SI
Serv
ice d
eliv
ery
Coal sourc
ing
Lan
d t
ake
As
appro
pri
ate
fo
r curt
aile
d op
era
tions an
d
tem
pora
ry c
losure
As
appro
pri
ate
fo
r m
ediu
m-t
erm
clo
sure
As
appro
pri
ate
fo
r perm
anent
clo
sure
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
73
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Mit
igati
on
/En
han
cem
en
t M
easu
re
Co
nte
xt
Re
leva
nc
e
Op
tio
n
1A
/1B
: L
ifex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3A
/3B
: R
eb
uil
d as P
F o
r C
FB
C
(Dem
olish
an
d R
eb
uild
)
Op
tio
n
4:
Do
n
ot
ren
ew
(D
ec
om
mis
sio
nin
g)
Loca
l busin
ess a
nd s
erv
ice p
rovid
ers
R
eg
ula
tors
Asset
transfe
r pla
nnin
g a
nd
im
ple
menta
tio
n (w
here
a
sse
ts can be
don
ate
d/s
old
/tra
nsfe
rre
d t
o m
itig
ate
im
pacts
).
Inclu
des:
In
vento
ry o
f assets
(m
ovable
and im
movab
le)
In
form
ation o
n t
he u
se a
nd m
ana
gem
ent
of
imm
ovable
assets
Leg
al arr
ang
em
ents
for
asse
t tr
ansfe
r
S
takeho
lder
co
nsultation r
ega
rdin
g a
sset
transfe
r
C
ap
acity b
uild
ing f
or
asset
mana
gem
ent
(as n
ecessa
ry)
Direct
em
plo
ym
ent
Pro
cure
ment
LE
D a
nd C
SI
Serv
ice d
eliv
ery
Lim
ite
d
op
port
unity
for
asset
transfe
r, e
xcept
for
redu
nda
nt
assets
Modera
te
opp
ort
unity fo
r asset
tra
nsfe
r
Opport
un
ity
for
exte
nsiv
e
asset
tra
nsfe
r
Earl
y e
ng
ag
em
ent
and
care
ful
pla
nnin
g
requ
ired
to
secure
pote
ntial
Lan
d
access,
land
use,
and
lan
d
reh
abili
tatio
n
pla
nnin
g
and
im
ple
menta
tion
.
Inclu
des:
D
ete
rmin
atio
n o
f la
nd r
equ
ire
ments
, la
nd u
ses,
and
reh
ab
ilita
tion
respo
nsib
ilities u
nder
app
lica
ble
optio
ns
M
obili
sation o
f la
nd –
rela
ted e
ng
ag
em
ent
and p
lan
nin
g u
nder
app
lica
ble
options (
resettle
ment
action p
lan
nin
g in
the c
ase o
f dis
pla
cem
ent, land u
se a
nd la
nd b
eneficia
tio
n p
lann
ing w
he
re
lan
d m
ight
be r
ele
ased f
or
oth
er
uses,
and r
ehab
ilita
tion p
lannin
g
in t
he c
ase o
f clo
sure
Lan
d use a
nd
la
nd
ta
ke
Lan
d t
ake a
nd
land u
se
chan
ge u
nlik
ely
Lan
d
take
possib
le
for
expan
de
d
or
reconfigure
d
opera
tions
Beneficia
tio
n
possib
le
if
land
is
rele
ased
Full
clo
sure
and
re
ha
bili
tatio
n r
equ
ired
Opport
un
ity
for
lan
d
ben
eficia
tion
an
d
altern
ative la
nd
use
Serv
ice s
usta
inabili
ty p
lannin
g a
nd im
ple
me
nta
tion.
Inclu
des:
In
vento
ry o
f se
rvic
es p
rovid
ed
or
support
ed b
y t
he
opera
tion
(e
ducation,
he
alth,
wate
r an
d s
anitatio
n,
hou
sin
g,
security
/po
licin
g,
infr
astr
uctu
re m
ain
ten
an
ce
)
In
form
ation o
n m
ana
gem
ent
and c
osts
R
eq
uirem
ents
for
tem
pora
ry o
r perm
an
ent
op
era
tio
n a
nd
main
tenance b
y o
ther
part
ies
N
eg
otiatio
n (
allo
win
g s
uff
icie
nt
tim
e)
with o
rganis
ations a
ssum
ing
tem
pora
ry o
r p
erm
an
ent
resp
onsib
ility
Serv
ice d
eliv
ery
P
lan
nin
g
for
possib
le
tem
pora
ry
serv
ice
dis
ruption r
equ
ired
Pla
nnin
g f
or
possib
le
mediu
m t
erm
serv
ice
dis
ruption r
equ
ired
Pote
ntial
to
transfe
r serv
ice
respo
nsib
ilities
to
oth
er
part
ies
Full
transfe
r of
serv
ice
re
spo
nsib
ilities
requ
ired
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
74
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Mit
igati
on
/En
han
cem
en
t M
easu
re
Co
nte
xt
Re
leva
nc
e
Op
tio
n
1A
/1B
: L
ifex
an
d
Mo
dern
isati
on
(R
efu
rbis
hm
en
t)
Op
tio
n
3A
/3B
: R
eb
uil
d as P
F o
r C
FB
C
(Dem
olish
an
d R
eb
uild
)
Op
tio
n
4:
Do
n
ot
ren
ew
(D
ec
om
mis
sio
nin
g)
Econom
ic s
usta
inabili
ty p
lann
ing (
local a
nd r
egio
na
l).
Inclu
des:
P
rom
otio
n o
f econom
ic d
ivers
ific
atio
n (
thro
ugh inclu
siv
e s
ocia
l deve
lopm
ent
pla
nn
ing a
nd d
evelo
pm
ent
part
ners
hip
s).
M
ediu
m
to long t
erm
measure
E
sta
blis
hm
ent
of
dura
ble
multi-sta
keh
old
er
develo
pm
ent
institu
tio
ns (
for
exam
ple
a D
eve
lopm
ent
Fou
ndatio
n w
ith m
ultip
le
private
secto
r, p
ub
lic s
ecto
r a
nd c
om
mu
nity p
art
icip
ants
)
LE
D a
nd C
SI
Loca
l and
reg
ion
al
deve
lopm
ent
Susta
inabili
ty
pla
nn
ing
re
leva
nt
for
futu
re
clo
sure
Susta
inabili
ty
pla
nnin
g re
levant
for
futu
re c
losu
re
Shou
ld
sta
rt
we
ll in
adva
nce
of
decom
mis
sio
nin
g
if
possib
le
Enviro
nm
enta
l m
ana
gem
ent
pla
nnin
g.
Inclu
des:
D
ete
rmin
atio
n o
f enviro
nm
enta
l m
an
agem
en
t le
gal re
quir
em
ents
, ta
sks a
nd r
esp
onsib
ilities u
nd
er
diffe
rent
options (
inclu
din
g
perm
anent
clo
sure
)
P
repara
tion o
f re
vis
ed e
nvir
on
menta
l p
erm
itting p
rocesses a
nd
imple
menta
tion
arr
ang
em
ents
for
diffe
rent
options
B
riefin
g o
f re
gu
lato
rs r
eg
ard
ing p
lans a
nd im
ple
me
nta
tio
n
C
losure
an
d r
ehab
ilita
tion p
rogra
mm
e (
if r
eq
uire
d)
P
ublic
and s
takeho
lder
bri
efin
g o
n m
an
ag
em
ent
arr
an
gem
ents
M
onitori
ng a
rra
ngem
ents
Enviro
nm
enta
l im
pacts
M
ana
gem
ent
larg
ely
und
er
exis
ting fra
me
work
and p
lans
Req
uirem
ent
for
a
full
Enviro
nm
enta
l Im
pact
Assessm
ent
and
a
Waste
M
anag
em
ent
Lic
ence,
as w
ell
as th
e
revis
ion o
f th
e W
ate
r U
se
Lic
ence a
nd A
tmosph
eric
Em
issio
ns L
ice
nce
Mana
gem
ent
substa
ntially
unde
r e
xis
tin
g
fra
me
wo
rk
and p
lans
Req
uirem
ent fo
r a full
Enviro
nm
enta
l Im
pact
Assessm
ent
and
a
Waste
M
ana
gem
ent
Lic
ence,
as
well
as
the
revis
ion
of
the
W
ate
r U
se
Lic
ence
and
Atm
ospheri
c
Em
issio
ns L
ice
nce
Opport
un
ity
to
impro
ve
tech
nolo
gy
and
ma
na
gem
ent
regim
es
Full
clo
sure
envir
onm
enta
l m
ana
gem
ent
pla
nnin
g
and
imple
menta
tio
n
requ
ired.
De
pen
din
g
on t
he s
evera
l optio
ns
for
“Do n
ot
Re
ne
w”
Arn
ot and H
endrina w
ill
requ
ire a
nd a
for
a f
ull
Enviro
nm
enta
l Im
pact
Assessm
ent
and
a
Waste
M
an
agem
ent
Lic
ence
for
additio
na
l sto
rage
facili
ties
and
w
here
the p
lan
t is
sold
, th
e a
pplic
able
lic
ences
will
n
ee
d
to
be
tr
ansfe
rred
follo
win
g
the
applic
ab
le
am
en
dm
ent
pro
cess
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 75
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Improving the Sustainability of the SED/CSI Initiatives
Following the review of the information received from the power stations and the Eskom Foundation,
the following recommendations could be made to improve the sustainability of the initiatives.
Multi-stakeholder collaboration: Collaboration between the power stations, Eskom, the
district and local municipalities, surrounding mines and other businesses is important to ensure
that resources are pooled and the impact of the projects are increased. The collaboration goal
could be to share project costs, management responsibilities and information;
Engagement with potential beneficiaries/communities: Assess community needs and
strengths and tailor the SED initiatives accordingly. This could also be through identifying
materials available locally for projects e.g. ash dams;
Research regarding local resources: Investigate the use of waste from power station
activities (grey water and recycled water) for vegetable gardening. Where there is excess water
from the power stations, investigate how this water can be used for community use. In installing
FGD components, consider the use of synthetic gypsum for establishing small businesses using
cement and grout, making wallboards, structural fill, mining applications, and road aggregate;
Diversification of economic activities: Promote economic diversification through inclusive
social development planning and development partnerships to ensure that projects identified
are not directly related to power station existence;
Food security projects: Identify land-based projects such as agriculture and stock farming to
respond to SDG2 of ending hunger and achieving food security; and,
Monitoring and evaluation: Following the implementation of the SED projects, conduct a post
implementation survey with the beneficiaries to assess the effectiveness of these projects and
to implement corrective measures where necessary.
Prepared by
Adel Malebana Anita Bron
Senior Social Scientist Principal Social Scientist
Reviewed by
Vassie Maharaj
All data used as source material plus the text, tables, figures, and attachments of this document
have been reviewed and prepared in accordance with generally accepted professional engineering
and environmental practices.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 76
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
8 Sources Consulted Aids.gov. 2016. Who is at Risk for HIV? Available online: https://www.aids.gov/hiv-aids-
basics/prevention/reduce-your-risk/who-is-at-risk-for-hiv/
Automobile Association of South Africa. (2016). AA Reports on Road Conditions (pp. 1-18).
Automobile Association of South Africa. Available online:
https://www.aa.co.za/content/Weekly%20Road%20Report.pdf
CDC Group. (2016). What are the links between power, economic growth and job creation?
Available online:
http://www.cdcgroup.com/Documents/Evaluations/Power%20economic%20growth%20and%20job
s.pdf
Colburn, L. (2011). Resilience, Vulnerability, Adaptive Capacity and Social Capital.
Cook, P. (2013). Rural Electrification and Rural Development. Available online: 9781447146728-
c2.pdf
Department of Environmental Affairs (2016): Winkler, 2009; SEA 2011; Winkler & Tait, 2012. 2nd
South Africa Environment Outlook. A report on the state of the environment. Executive Summary.
Available online: https://www.environment.gov.za/otherdocuments/reports or file://DEA_-
_Main_doc_-_Chapter_12_ZnNWB.pdf (Chapter 12)
Department of Health. (2013). Mpumalanga: Gert Sibande District Profile (pp. 1-25). Department of
Health. Available online: https://www.health-e.org.za/wp-content/uploads/2012/04/Gert-Sibande-
District-Profile.pdf
Department of Trade and Industry (undated). Economic Empowerment. Available online:
https://www.thedti.gov.za/economic_empowerment/bee.jsp
Economic Development Department (undated). Available online:
http://www.economic.gov.za/about-us/programmes/economic-policy-development/b-bbee
eNCA (2016). Nearly 90 percent of SA households have electricity, says Eskom. Available online:
https://www.enca.com/south-africa/stats-show-that-nearly-90-percent-of-sa-households-have-
electricity-says-eskom
Eskom. (undated). Eskom Transmission Development Plan (2016-2025)
Eskom. (2011). The Eskom factor. Available online:
http://www.eskom.co.za/OurCompany/SustainableDevelopment/Documents/EskomFactor.pdf
Eskom. (2013). Integrated socio-economic development policy – 24069723512
Eskom. (2016). Integrated Report 31 March 2016. Available online:
http://www.eskom.co.za/IR2016/Documents/Eskom_integrated_report_2016.pdf
Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for
the Generation Fleet Renewal Programme: Option 1, Refurbish current Power Stations within
existing footprints
Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for
the Generation Fleet Renewal Programme: Option 3, Demolish and Rebuild (PF and CFBC)
Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for
the Generation Fleet Renewal Programme: Option 4, Do not Renew
Eskom. (2016). Sustainability Mapping at Eskom: Eskom’s Sustainable Development Framework-
240101385485
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 77
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Eskom Fleet Renewal Project Team. (2016). Fleet Renewal Assumptions. Excel spreadsheet.
Eskom Foundation. (2016). Presentation: Eskom DPE Meeting Presidential Siyahlola. Monday, 18
July 2016
Fin24. (2015). Eskom is load shedding SA's GDP - World Bank. 14 April 2015. Available online:
http://www.fin24.com/Economy/Eskom-is-load-shedding-SAs-GDP-World-Bank-20150414
GENI. (2007). Rural Electrification, Human Development and the Renewable Energy Potential of
China. Available online: http://www.geni.org/globalenergy/research/china-development/china-
development.pdf
Gert Sibande District Municipality. (2016). Gert Sibande District Municipality 2016/2017 Draft IDP
(pp. 1-500). Available online: http://www.gsibande.gov.za
IEG. (2008). The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits.
Available online: http://siteresources.worldbank.org/EXTRURELECT/Resources/full_doc.pdf
Iyer, Srinivasan. (2013). Energy access and human development. Available online:
http://www.in.undp.org/content/dam/india/docs/human-
development/Energy%20access%20and%20human%20development%20IC4HD_Session%204_I
yer.pdf
Klopper H. (2010). Research Report on State Owned Enterprises. Available online:
http://www.thepresidency.gov.za/electronicreport/downloads/volume_4/business_case_viability/B
C1_Research_Material/State_Owned_Enterprises_July_2010.pdf
KPMG. (undated). SD Value Assessment for Eskom: An economic impact analysis for Eskom on
the South African economy
Lipscomb M., Mobarak A.M., Barham T. (2013). Development Effects of Electrification: Evidence
from the Topographic Placement of Hydropower Plants in Brazil. Available online:
http://faculty.som.yale.edu/mushfiqmobarak/papers/development%20effects%20of%20electrificati
on.pdf
News24. 2013. Mpumalanga's Gert Sibande district has highest HIV rate. Available online:
http://www.news24.com/Archives/City-Press/Mpumalangas-Gert-Sibande-district-has-highest-HIV-
rate-20150430
Mpumalanga Department of Economic Development & Tourism (MDEDET). 2009.
Msukaligwa Local Municipality. (2016). Msukaligwa Local Municipality 2016-2017 IDP (pp. 1-194).
Available online:
http://www.msukaligwa.gov.za/MsukWeb/Documents/Reports/2016%202017%20IDP.pdf
NFM, A. (2013). Traditional breadwinner families, largest group in poverty. Available online:
http://www.nfm.org.uk/index.php/about-nfm/news/260-traditional-breadwinner-families-largest-
group-in-poverty
Nkangala District Municipality. (2016). Nkangala District Municipality 2016/17-2020/21 Final Draft
Integrated Development Plan (pp. 1-316). Available online:
http://www.nkangaladm.gov.za/index.php/2014-02-25-17-38-07/viewcategory/13-idp-reports
One (undated). Available online: https://www.one.org/us/2013/07/16/4-ways-electricity-can-
jumpstart-african-economic-development/
Pheladi, B. (2015). Many pupils still walk long distances to school. The Citizen. Available online:
http://citizen.co.za/361621/bp-walking-to-school/
PRODUSE. (2013). The Impact of Electricity Access on Economic Development: A Literature
Review. Available Available online:
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 78
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
http://www.produse.org/imglib/downloads/PRODUSE_study/PRODUSE%20Study_Literature%20
Review.pdf
Real Economy Bulletin. (2016) Fin24. 2015. Shocking cost of SA’s universities. (2015). Available
online: http://www.fin24.com/Economy/Shocking-cost-of-SAs-universities-20150118
SARS (2016). Available online: http://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Companies-
Trusts-and-Small-Business-Corporations.aspx.
South African Government. (2016). Pocket Guide to South Africa 2015-2016: Energy and Water.
Available online:
http://gcis.gov.za/sites/www.gcis.gov.za/files/docs/resourcecentre/pocketguide/PocketGuide15-
16SA_water.pdf
Statistics South Africa. (2016). The South Africa I Know, The Home I Understand.Statssa.gov.za.
Available online: http://www.statssa.gov.za/
Statistics South Africa. (2011) Census 2011; Interactive data in SuperCROSS (Version 2011). South
Africa: SuperCROSS
Steve Tshwete Local Municipality. (2016). Steve Tshwete Local Municipality 2012-2017 Integrated
Development Plan 2016/17 IDP Review (pp. 1-326). Available online:
http://www.stevetshwetelm.gov.za/IDP/20162017/IDP%20201617%20Final.pdf
Steve Tshwete Local Municipality (2015). Steve Tshwete Local Municipality. 2012-2017 Integrated
Development Plan. 2015-26 IDP Review. Available online:
http://www.stevetshwetelm.gov.za/IDP/2015/idp%20final%20201516.pdf
Tralac. (2015). The economic consequences of load shedding in South Africa and the state of the
electrical grid. 11 February 2015. Available online: https://www.tralac.org/discussions/article/7000-
the-economic-consequences-of-load-shedding-in-south-africa-and-the-state-of-the-electrical-
grid.html
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 79
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendices
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 80
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendix A: Interview Schedules
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 81
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Stakeholder Engagement
The Senior Consultant Socio-economic Development, the Eskom Fleet Renewal Project Manager,
Ms Beauty Mazibuko, sent letters of introduction to the internal stakeholders and the stakeholders
at the power stations. The letter provided a brief background to the project, requesting their
attendance to meetings with SRK, and indicating the input required. For external stakeholders, the
Senior Manager for Stakeholder Management in Mpumalanga, Mr. Simangaliso Shongwe, invited
the IDP and LED Managers of the four municipalities within which the power stations fall. He also
accompanied SRK to these meetings.
Eskom Corporate Stakeholders
Meetings were held with the Eskom corporate stakeholders as reflected in Table A-1.
Table A-1: Meetings conducted with Eskom corporate stakeholders
Date of meeting
Purpose Meeting attendees Designation
15 September 2016
Engineering Technical Team meeting to provide a broad technical overview of the different options.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Gina Downes Corporate Consultant: Environmental Economics
Tshifhiwa Tshamano Group Technology: Engineering
15 September 2016
Environmental Department meeting to gain an understanding of the different environmental implications of each of the options.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Gina Downes Corporate Consultant: Environmental Economics
Tobile Bokwe Environmental Management
Kristy Langerman Environmental Management
Warren Funston Environmental Management
15 September 2016
Stakeholder engagement (Primary Energy) meeting to provide an overview of stakeholders at the different sites, how they are engaged, and what their issues are.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Sebata Zondo Stakeholder Management and Communication Practitioner
15 September 2016
Eskom Development Foundation meeting to provide inputs regarding the CSI activities at each of the sites, and the implications of each of these options on the current CSI activities.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Brenda Kruger Eskom Development Foundation
16 September 2016
Water Department meeting to provide input into water usage requirements per project site, and potential water requirements per option.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Dheneshree Lalla Chief Chemical Engineer : Chemical Centre of Excellence
Nthabiseng Dingaan Chemical Centre of Excellence
Annikie Moganelwa Boiler Auxiliary: Mechanical Engineer
Beauty Mazibuko
Gina Downes
Tshifhiwa Tshamano
Beauty Mazibuko
Gina Downes
Tobile Bokwe
Kristy Langerman
Warren Funston
Beauty Mazibuko
Sebata Zondo
Beauty Mazibuko
Brenda Kruger
Beauty Mazibuko
Dheneshree Lalla
Nthabiseng Dingaan
Annikie Moganelwa
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 82
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Date of meeting
Purpose Meeting attendees Designation
16 September 2016
Fuel Sourcing (Primary Energy Department) meeting to provide information regarding different sources of coal per station currently, and the sourcing requirements for each of the options.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Keith London Fuel Sourcing PED
16 September 2016
Project Manager to provide a broad overview of the project.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Beth O’ Connor Chief Advisor: Project Development
23 September 2016
Stakeholder Management to provide an overview of stakeholders at the different sites and how they are engaged.
Beauty Mazibuko Senior Consultant: Socio-economic Development
Vanessa Carpel Corporate Affairs Business Partner
30 September 2016
Eskom Water Supply meeting to understand sources of water for each of the power stations.
Gina Downes Corporate Consultant: Environmental Economics
Mpetjane Kgole Sustainability Manager: Water
Frits Thynsma Chief Technologist: Mechanical
Ian Midgley Chief Consultant: Water
Beauty Mazibuko
Keith London Fuel Sourcing PED
Beauty Mazibuko
Beth O’ Connor
Beauty Mazibuko
Vanessa Carpel
Gina Downes
Mpetjane Kgole
Frits Thynsma
Ian Midgley Chief Consultant: Water
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 83
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Eskom Power Station Stakeholders
The following key stakeholders at the power stations were identified:
Power station managers;
Engineering managers;
Environmental managers;
Communications managers;
Maintenance managers; and,
Finance managers.
SRK conducted meetings at the four power stations as per Table A-2 below. The purpose of these
meetings was to get an understanding of the technical, environmental and community issues
regarding each power station.
Table A-2: Meetings conducted at the Eskom power stations
Power station and date of meeting
Purpose Meeting attendees Designation
Hendrina Power Station
19 September 2016
The purpose of these meetings was to get an understanding of the technical, environmental and community issues regarding each power station.
Justice Ramagoma Environmental Manager
Aubrey Sambo Communications Manager
Morongwe Raphasha Engineering Manager
Ashwin Rampersad Acting Power station Manager
Arnot Power Station
21 September 2016
Beauty Mazibuko Climate Change and Sustainable Development Advisor
Teboho Ntshabiseng Communications Manager
Mariam Joseph Environmental Manager
Tshepo Mokgatle Engineering Manager
Komati Power Station
22 September 2016
Thabile Mahlangu Communications Manager
Lawrence Machebe Environmental Coordinator
Camden Power Station
7 October 2016
Sifiso Mzulwini Acting Engineering Manager
Fikile Sithole Environmental Coordinator
Augustine Sebothoma Maintenance Manager
Arnold Geuns Senior Manager Engineering and Maintenance
Thandiwe Mzoyi (Telecon)
Communication Officer
Mosekami Mokgala Finance Manager
Justice Ramagoma Environmental Manager
Aubrey Sambo Communications Manager
Morongwe Raphasha Engineering Manager
Ashwin Rampersad
Beauty Mazibuko
Teboho Ntshabiseng Communications Manager
Mariam Joseph Environmental Manager
Tshepo Mokgatle Engineering Manager
Thabile Mahlangu Communications Manager
Lawrence Machebe Environmental Coordinator
Sifiso Mzulwini
Fikile Sithole Environmental Coordinator
Augustine Sebothoma Maintenance Manager
Arnold Geuns
Thandiwe Mzoyi Thandiwe Mzoyi Thandiwe Mzoyi (Telecon)
Mosekami Mokgala Finance Manager
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 84
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
External Stakeholders
Eskom Climate Change and Sustainable Development (Eskom Fleet Renewal Project Team) raised
concerns regarding the possible pre-mature engagement of external stakeholders, which could
potentially lead to unmanaged stakeholder expectations of the project. Secondly, the project is still
at an early pre-feasibility phase and is treated as confidential. It was therefore decided that only the
relevant representatives at the district and local municipalities within which the power stations fall
would be interviewed. These are Gert Sibande and Nkangala District Municipalities, as well as
Msukaligwa and Gert Sibande Local Municipalities. The LED and IDP personnel were identified as
key informants to the socio-economic status as well as the social development of the areas under
discussion. Local communities were not engaged.
Table A-3 provides a list of meetings with the district and local municipalities.
Table A-3: Meetings with external stakeholders
Date of meeting
Organisation Meeting attendees Designation
28 September 2016
Eskom Simangaliso Shongwe Stakeholder Engagement
Gert Sibande District Municipality
Pretty Chiloane Senior LED Manager
Msukaligwa Local Municipality Bongani Zwane IDP Manager
30 September 2016
Eskom Mpumalanga Smangaliso Shongwe Senior Advisor Stakeholder Management
Nkangala District Municipality Bheki Matimba Municipal Economist
Nkangala District Municipality Prince Magana Spatial Planning and Land Use
Steve Tshwete Local Municipality
Mike Nkosi LED Manager
Eskom Simangaliso Shongwe
Pretty Chiloane Senior LED Manager
Msukaligwa Local Municipality Bongani Zwane IDP Manager
Eskom Mpumalanga Smangaliso Shongwe
Nkangala District Municipality Bheki Matimba Municipal Economist
Nkangala District Municipality Prince Magana
Mike Nkosi LED Manager
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 85
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendix B: Discussion Guides
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Technical Discussion Guide 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Technical Team
Purpose
Establish a detailed overview of the 4 options that are being considered for each of the
power stations
Get an understanding of the current status of each power station
Cross reference certain findings with other internal discussions.
1 What is the current status of each Power Station?
1.1 Are they all coal fired? Where do they source this coal from and how is it transported
to site?
1.2 How long have they been in operation?
1.3 What is their current life expectancy and employment figures and/ or projections?
1.4 Does each plant have the same importance in the Eskom ‘fleet’ or are some
considered more strategically important?
2 Can you provide us with an overview of the 4 options that are being considered?
SRK Consulting Page 2
Author/Reviewer Technical Discussion Guide 3-Feb-17
2.1 What fuel source will be used for each option? (coal, biofuel, gas etc.)
2.2 Where would this fuel be sourced from?
2.3 How would this be transported to the site?
2.4 What timelines does each option have from start to finish?
2.5 Will the options at different sites be implemented simultaneously or will they be
phased?
2.6 Would any of the options require an expansion of the existing plant footprint?
Ownership of surrounding land in case of expansion and engagement with current
landowners?
2.7 What are the environmental impacts (air pollution, noise) of each option? (to be
confirmed with environmental team)
2.8 What are the water implications of each option? Will they require more or less water?
What will the implications be for surrounding communities and where would the water
be sourced from? (to be confirmed with the water team)
3 Would any of the options require additional employees or are they more
mechanised hence requiring fewer employees?
3.1 What preliminary plans are in place in cases of retrenchments?
3.2 What labour requirements will be considered should mechanisation take place?
4 From a purely technical and financial perspective, which options are currently
favoured and why?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Environmental Impacts Discussion Guide 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Environmental Impacts
Purpose
Get an understanding of what the current and future environmental impacts might be.
Look in particular at impacts such as dust and noise.
1 What current environmental authorisations do the power stations have?
1.1 What new authorisations will be required for each of the new options?
1.2 Is there any current modelling particularly around air pollution?
1.3 What sort of monitoring is done around each of the power stations? Are there records
of this monitoring?
2 What is the role of the environmental officer at each of the power stations?
3 What current community grievances do the power stations encounter from an
environmental perspective?
3.1 Dust and air pollution in particular
3.2 Are the surrounding communities aware and active around environmental issues?
3.3 Have there been any health issues and/or claims at any of the power stations?
3.4 Are environmental NGOs active around any of the power stations?
4 Have there been any incidents and/or claims of water pollution emanating from
any of the power stations?
4.1 How do the power stations actively mitigate the possibility of water contamination
4.2 Is there ongoing monitoring of pollution?
5 Do any of the power stations contribute to any environmental causes?
SRK Consulting Page 2
Author/Reviewer Environmental Impacts Discussion Guide 3-Feb-17
5.1 Do any of the power stations have long term rehabilitation plans and closure plans?
6 Depending on the preferred option, what sort of mitigation measures do you think
might be necessary?
7 From a purely environmental perspective, what would the preferred option be?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Stakeholder Engagement Discussion Guide 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Stakeholder Engagement
Purpose
Get an understanding of the key stakeholders at each of the four sites and how Eskom
engages with them
Look in particular at the stakeholder engagement programmes for communities at all
the four Power Stations
1 Key stakeholders and organisations at each of the sites (database)
1.1 Who are the key stakeholders?
1.2 How do you define a key stakeholder?
1.3 What is the importance or role of these stakeholders in Eskom’s operations?
2 Is there a stakeholder engagement plan for the communities at the four sites and
how does it work in terms of the following?
2.1 Focus of engagement
2.2 Means of engagement
2.3 Frequency of engagement
3 Would any of the options require additional employees or are they more
mechanised hence requiring fewer employees?
3.1 What preliminary plans are in place in cases of retrenchments?
3.2 What labour requirements will be considered for each of the options?
4 What relationships exist between Eskom and their key stakeholders and
organisations? Is it positive, negative or neutral?
SRK Consulting Page 2
Author/Reviewer Stakeholder Engagement Discussion Guide 3-Feb-17
5 Stakeholder networks: What relationships are there between the key
stakeholders?
6 Stakeholders’ power and influence: Which stakeholders have the influence in the
communities to positively or negatively affect the operations?
7 Stakeholder issues at each of the four Power Stations?
7.1 What are the key issues?
7.2 How can these issues be resolved and by whom?
7.3 Have there been times where operations had to stop because of stakeholder issues?
How was this resolved?
8 What engagement strategy is being planned to communicate the options to the
key stakeholders and by when?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Water Discussion Guide 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Water
1 Where do the Power Stations get their supply of water from?
2 Do the Power Stations have Water Use Licences?
2.1 Are the Power Stations currently adhering to the conditions of the WUL?
2.2 If not, what management measures have been put in place to ensure adherence?
3 Do any of the stations currently supply surrounding communities and/or
municipalities with water?
3.1 Is this potable water or is it utilised for other purposes such as agriculture?
3.2 Do the communities pay for the water?
3.3 Are there any existing agreements regarding this and with whom?
3.4 How long are these agreements for?
4 What challenges are the Power Stations experiencing regarding water currently,
and how are these being managed?
4.1 How will these affect the options under discussion?
5 Are there any water saving mechanisms that the Power Stations are already
embarking on, and how will these affect any of the options discussed?
6 Which of the 4 options will have significant water implications and how? Will there
be a requirement for more or less water?
SRK Consulting Page 2
Author/Reviewer Water Discussion Guide 3-Feb-17
6.1 If they require more water, will this have any potential implications on the
communities’ current water supply?
6.2 Will they continue getting water, or if they do not pay for water currently, will there be
a need to start paying for water?
6.3 If water is no longer available for the communities based on the demands for any of
the options, are there any specific plans for alternative water supply? Will the
municipalities have the resources to supply additional water if required?
7 What happens during drought periods, do any of the communities that rely on
Eskom for water supply experience water restrictions? How is this communicated
to the communities and what are the reactions?
8 Have there been instances at any of the Power Stations where communities
expressed concerns regarding the quality of water and how are these managed?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Eskom Foundation Discussion Guide 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Eskom Foundation
Purpose
Get an understanding of the key focus areas of the Eskom Foundation
Look in particular at the programmes in communities surrounding the four power
stations and their impacts
1 What is Eskom Foundation’s current involvement at the four Power Stations?
1.1 Which communities and which groups are beneficiaries?
2 Current status of these projects/ programmes per site?
3 Criteria for selecting key beneficiaries and how does one qualify to become a
beneficiary?
4 What are the impacts of these projects and programmes on the surrounding
communities in terms of:
4.1 Employment
4.2 Skills development
4.3 Capacity building
4.4 Procurement
4.5 Other?
5 Have there been any incidences where the projects or programmes could not be
implemented and how was this managed?
6 Who are the key developmental partners at the four sites?
7 What are the key developmental priorities for each of the 4 sites into the future?
8 How resilient are the communities in these areas in terms of their capacity to
absorb change?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Nkangala and Steve Tshwete 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Nkangala and Steve Tshwete Municipalities
Purpose
Socio-economic information for communities surrounding Hendrina, Komati and Arnot
Power Stations.
Key stakeholders and community groups at the above power stations and how the
Municipalities engage with them.
Potential impacts of the above power stations on the municipalities and surrounding
communities
1 Socio-economic data of the affected communities- demographics, employment,
income, skills, education, health, services, infrastructure etc.
2 What are the communities and key stakeholders around Hendrina, Komati and
Arnot Power Stations? What are their needs, issues, interests and what power or
influence do they potentially wield?
3 How are these stakeholders engaged by the municipalities?
4 What community issues and grievances are commonly recorded and how are
these addressed?
5 Is there a structured engagement process between the power stations and the
Municipalities and how is this carried out?
6 Are there any commitments made by the municipalities to the surrounding
communities and what are the implications for the different options?
7 What are the current CSI, IDP and LED commitments made by the Municipalities
to the surrounding communities? Do the power stations play a role in this
process?
SRK Consulting Page 2
Author/Reviewer Nkangala and Steve Tshwete 3-Feb-17
8 How dependent are the surrounding communities and the municipality on the
Power Stations, and how will these be affected by the different options? E.g. water
provision, employment etc.
9 What were the social and economic impacts of the mothballing of Power Stations
and the Return to Service?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
Author/Reviewer Gert Sibande and Msukaligwa 3-Feb-17
Eskom Generation Fleet Renewal Project:
Socio-Economic Study
Discussion Guide: Gert Sibande and Msukaligwa Municipalities
Purpose
Socio-economic information for communities surrounding Camden Power Station.
Key stakeholders and community groups at the above power stations and how the
Municipalities engage with them.
Potential impacts of the above power stations on the municipalities and surrounding
communities
1 Socio-economic data of the affected communities- demographics, employment,
income, skills, education, health, services, infrastructure etc.
2 What are the communities and key stakeholders around Camden Power Station?
What are their needs, issues, interests and what power or influence do they
potentially wield?
3 How are these stakeholders engaged by the municipalities?
4 What community issues and grievances are commonly recorded and how are
these addressed?
5 Is there a structured engagement process between the power stations and the
Municipalities and how is this carried out?
6 Are there any commitments made by the municipalities to the surrounding
communities and what are the implications for the different options?
7 What are the current CSI, IDP and LED commitments made by the Municipalities
to the surrounding communities? Do the power stations play a role in this
process?
SRK Consulting Page 2
Author/Reviewer Gert Sibande and Msukaligwa 3-Feb-17
8 How dependent are the surrounding communities and the municipality on the
Power Stations, and how will these be affected by the different options? E.g. water
provision, employment etc.
9 What were the social and economic impacts of the mothballing of Power Stations
and the Return to Service?
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
HARA Eskom Fleet – Hendrina PS 19 Sept 2016
Generation Fleet Renewal Project- Socio-Economic Study
Hendrina Power Station, 19 September 2016
Distribution: Andrew Hart (SRK Consulting)
Beauty Mazibuko (Eskom)
Ashwin Rampersad (Eskom)
Justice Ramagoma (Eskom)
Morongwe Raphasha (Eskom)
Agenda
1 Welcome and Introduction
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of the Hendrina Power Station
4.1 Technical/Engineering
4.1.1 Technical overview
4.1.2 Employment (direct and indirect)
4.1.3 Fuel sourcing
4.1.4 Strategic importance
4.2 Environmental
4.2.1 Air pollution
4.2.2 Water pollution and supply
4.2.3 Management plans and authorisations
4.2.4 Grievances and resolution
4.3 Stakeholder/community
4.3.1 Definition of the Zone of Influence (host communities)
4.3.2 Engagement and interactions (include local communities and municipality)
4.3.3 Grievances and resolution
4.3.4 Current CSI/LED
5 General discussion and questions
6 Way forward and meeting close
Notice prepared by: Andrew Hart
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
HARA Eskom Fleet – Arnot PS 21 Sept 2016
Generation Fleet Renewal Project- Socio-Economic Study
Arnot Power Station, 21 September 2016
Distribution: Andrew Hart (SRK Consulting)
Beauty Mazibuko (Eskom)
Shamiel Jappie (Eskom)
Mariam Joseph (Eskom)
Tshepo Mokgatle (Eskom)
Agenda
1 Welcome and Introduction
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of the Arnot Power Station
4.1 Technical/Engineering
4.1.1 Technical overview
4.1.2 Employment (direct and indirect)
4.1.3 Fuel sourcing
4.1.4 Strategic importance
4.2 Environmental
4.2.1 Air pollution
4.2.2 Water pollution and supply
4.2.3 Management plans and authorisations
4.2.4 Grievances and resolution
4.3 Stakeholder/community
4.3.1 Definition of the Zone of Influence (host communities)
4.3.2 Engagement and interactions (include local communities and municipality)
4.3.3 Grievances and resolution
4.3.4 Current CSI/LED
5 General discussion and questions
6 Way forward and meeting close
Notice prepared by: Andrew Hart
SRK House
265 Oxford Road
Illovo 2196
P O Box 55291
Northlands 2116
South Africa
T: +27 (0) 11 441 1111
F: +27 (0) 11 880 8086
www.srk.co.za
MALA Eskom Fleet – Camden Power Station 06 October 2016
Generation Fleet Renewal Project: Socio-economic Study
Camden Power Station, 07 October 2016 at 08:45-09:45
Distribution: Beauty Mazibuko (Eskom), Adel Malebana (SRK), Ulindi Muller (Eskom),
Fikile Sithole (Eskom), Gerda Janse van Vuuren, (Eskom), Sifiso Mzuliwini (Eskom)
Thabiso Mpongo (Eskom)
Agenda
1 Welcome and introductions
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of Camden Power Station
4.1 Technical and engineering
4.1.1 Technical Overview
4.1.2 Employment (direct and indirect)
4.1.3 Fuel Sourcing
4.1.4 Strategic Importance
4.2 Environmental
4.2.1 Air pollution
4.2.2 Water pollution and supply
4.2.3 Management plans and authorisations
4.2.4 Grievances and resolutions
4.3 Stakeholder/ Community
4.3.1 Definition of the Zone of Influence (host communities)
4.3.2 Engagement and interactions (local communities and the municipality
4.3.3 Grievances and resolutions
4.3.4 Current CSI/LED
5 General discussions and questions
6 Way forward and meeting close
Notice prepared by: Adel Malebana
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 86
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendix C: Regional Context
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 87
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Regional Context: District and Local Municipal
Summary
For the purpose of this report, the regional ZoI describes the district and local municipal context of
the four Eskom power stations. The Arnot, Hendrina, and Komati power stations are located in the
Steve Tshwete Local Municipality within the Nkangala District Municipality, while Camden power
station is located in the Msukaligwa Local Municipality in the Gert Sibande District Municipality
(Figure C-1 and Figure C-2).
Figure C-1: Allocation of district and local municipalities in the regional ZoI
District Context
Nkangala District Municipality
Nkangala District Municipality is one of three district municipalities in Mpumalanga Province, and
has its seat in Emalahleni in the Steve Tshwete Local Municipality. The Nkangala District
Municipality is further comprised of six local municipalities (Delmas, Dr J.S. Moroka, Emalahleni,
Emakhazeni, Steve Tshwete, and Thembisile). The Nkangala District Municipality contributes
32.0% to the overall Mpumalanga province and has a higher average annual population growth rate
than the province (Nkangala District Municipality IDP, 2016/2017).
Gert Sibande District Municipality
Gert Sibande District Municipality, like Nkangala District Municipality, is one of three district
municipalities in the Mpumalanga Province, with its administrative seat in Ermelo in the Msukaligwa
Local Municipality. It is the largest district municipality in the province spatially, and covers a total of
40.0% of Mpumalanga’s surface area. It is made up of seven local municipalities (Govan Mbeki,
Albert Luthuli, Mkhondo, Msukaligwa, Lekwa, Pixley Ka Seme and Dipaleseng).
Important transport corridors in the Gert Sibande District Municipality are the N11, N3 and the
N17/N2, all of which are significant national and regional trade and transport routes.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
88
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Fig
ure
C-2
: L
ocality
of
po
wer
sta
tio
ns
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 89
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Local Context
Steve Tshwete Local Municipality
Steve Tshwete Local Municipality is located in the central part of Nkangala District Municipality,
150km east of Pretoria on the N4. Its towns are critical to numerous transport and development
corridors, including the Maputo Corridor (N4), Emalahleni/Steelpoort Mining Resource Link and
Emalahleni/Bethal/Richards Bay Corridor. Much of the economy and communication services of the
Steve Tshwete Local Municipality are focused on these transport corridors. The Steve Tshwete
Local Municipality is divided into three spatial settlement types, including:
The small agricultural service villages which service the rural and farming community, including
Kwa-Makalane, Mafube and Doornkop;
Leisure towns of Presidentsrus and Kranspoort, where development is regulated to prevent
identity and aesthetic loss; and,
Towns and villages associated with power stations and mine operations, which have been
developed by Eskom. These include Rietkuil, Pullenshope and Komati, all of which form part of
this specific study’s ZoIs. Other mine-based towns such as Blinkpan, Naledi and Lesedi are
home to many mine employees, and like the Eskom towns, are centres for social services and
amenities.
Coal mining and energy generation are big sectors in the Steve Tshwete Local Municipality, and as
a result, Steve Tshwete Local Municipality is a significant contributor to the Nkangala District
Municipality economy, contributing 35.0% to the district GDP in 2014. This is second only to
Emalahleni Local Municipality at 48.0% (Nkangala District Municipality IDP, 2016/2017).
Msukaligwa Local Municipality
The Msukaligwa Local Municipality is the third largest economy in Gert Sibande District Municipality
and comprises both rural and urban settlements, farmlands and nature reserves. The administrative
seat of the Msukaligwa Local Municipality is in Ermelo, which is 19.5km northwest of the Camden
power station. The Msukaligwa Local Municipality accounts for 14.3% of the Gert Sibande District
Municipality population, and the economy is based largely on finance, community services,
transport, trade and mining. Important centres include Ermelo, Breyten, Davel, Sheepmoor,
Chrissiesmeer, Lothair and Warburton (Municipalities of South Africa, 2016).
Like the Steve Tshwete Local Municipality, Msukaligwa Local Municipality is a transport hub in terms
of National roads, and its roads systems radiate outwards from Ermelo towards numerous trade
centres and ports, including Johannesburg (N17), Durban, Richards Bay (N2/N11) and Swaziland
(N17).
The age and gender composition of the population is a key
determinant of population change and dynamics. Age
distribution is an important indicator of both current and future
needs regarding education, health care for children and
elderly, employment opportunities for those in the economic
age group and provision of social services such as pensions
to those in need.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 90
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Demography
A summary table of demographic indicators collected from StatsSA Census 2011, with inputs from
IDP’s has been provided in Table C-1. Indicators across both districts and local municipalities
suggest the following general patterns for the region:
The majority of the population in the region is comprised of Black Africans;
Excluding Gert Sibande District Municipality, settlement distribution is largely urban, with
dispersed farm settlements throughout the Steve Tshwete Local Municipality;
Steve Tshwete Local Municipality has a high population growth rate, which exceeds all other
local municipalities in Nkangala District Municipality;
Across the regional ZoI, the majority of the population is of working age and below the ages of
35, with a high dependency rate associated with a significant youthful population below 18 years
old; and,
Females account for the larger portion of the populations in all but the Steve Tshwete Local
Municipality, where there is a larger male population, which may be liked to high levels of
migration into the Steve Tshwete Local Municipality discussed later on in this report.
SR
K C
on
su
ltin
g:
Pro
ject
No
: 5
06
50
3 S
IA E
sko
m F
lee
t R
en
ew
al
Pa
ge
91
BR
AV
/MA
LA
/HA
RA
/BR
AN
/MA
VA
F
INA
L S
IA R
epo
rt_
Esko
m_
srk
_5
06
50
3_0
3022
017
Fe
bru
ary
20
17
Tab
le C
-1:
Su
mm
ary
de
mo
gra
ph
ic t
ab
le f
or
dis
tric
t an
d lo
cal m
un
icip
aliti
es a
pp
licab
le t
o t
he r
eg
ion
al Z
oI
Are
a
(km
2)
Po
pu
lati
on
siz
e
Pers
on
s /
km
2
Se
ttle
me
nt
typ
e (
%)
20
01-2
01
1
Gro
wth
rate
(%
)
Po
pu
lati
on
Str
uctu
re
(%)
Ag
e(%
) G
en
der
rati
o (
%)
Urb
an
T
rad
itio
nal /
Farm
%
Po
pu
lati
on
g
rou
p
%A
ge g
rou
p
%F
M
Nkan
gala
D
istr
ict
Mu
nic
ipality
16 7
58
1 3
08 1
29
78
62.9
37.1
2.5
Bla
ck A
fric
an:
87.9
0-1
4 y
ears
28.5
51.9
48.1
White
9.9
15-6
4 y
ears
66.5
India
n/A
sia
n
0.7
65+
years
: 5.0
C
olo
ure
d
1.1
Oth
er
0.4
Ste
ve
Tsh
wete
L
ocal
Mu
nic
ipality
3 9
76
229 8
31
58
88.7
11.3
4.8
Bla
ck A
fric
an:
73.6
0-1
4 y
ears
25.0
48.0
52.0
White
21.8
15-6
4 y
ears
70.7
India
n/A
sia
n
1.6
65+
years
: 4.3
C
olo
ure
d
2.6
Oth
er
0.4
Gert
S
iban
de
Dis
tric
tM
un
icip
ality
31 8
41
1 0
43 1
94
33
39.0
61.0
1.5
Bla
ck A
fric
an:
88.6
0-1
4 y
ears
31.6
51.8
48.2
White
9.0
15-6
4 y
ears
63.9
India
n/A
sia
n
1.1
65+
years
: 4.5
C
olo
ure
d
1.0
Oth
er
0.3
Msu
kali
gw
a
Lo
cal
Mu
nic
ipality
6 0
16
149 3
77
25
80.1
19.9
1.8
Bla
ck A
fric
an:
88.1
0-1
4 y
ears
30.4
50.4
49.6
White
9.8
15-6
4 y
ears
65.5
India
n/A
sia
n
1.1
65+
years
: 4.1
C
olo
ure
d
0.6
Oth
er
0.4
So
urc
e:
Sta
tsS
A,
20
11
.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 92
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Migration
Migration into the regional ZoI is above national average (0.9 migrants per 1 000 people), which
could be for a number of reasons including push factors from sending countries as well as pull
factors from South Africa, traditionally a labour intensive economy. Mining, industry and agriculture,
which are prevalent in the region would all attract outside work seekers in search of employment.
StatsSA census data suggests that there are a significant number of migrants coming from outside
of South Africa into the ZoI region (StatsSA, 2011). Figure C-3 below illustrates the in migration of
people from outside of South Africa between 2001 and 2011 into the ZoI region.
ESKOM SOCIAL BASELINE MIGRATION INTO REGIONAL ZOI FROM OUTSIDE
OF SOUTH AFRICA
Project No. 506503
Figure C-3: Migration into regional ZoI from outside of South Africa
Source: StatsSA, 2011.
Land Use
As outlined in Table C-2, land use in the regional ZoI can be broadly defined as largely residential,
with more agricultural (farm) land use occurring in the Gert Sibande District Municipality and
Msukaligwa Local Municipality. Industrial land uses occurred proportionately more in Steve Tshwete
Local Municipality than the other local and district municipalities, while informal residential
settlements were notably higher in Msukaligwa Local Municipality. Very little vacant land or parks
and recreational land was observed in any of the municipalities (StatsSA, 2011).
2007 2008 2009 2010 2011 Total
NDM 2 616 3 651 3 936 4 224 5 505 19 932
STLM 606 891 918 921 1 305 4 641
GSDM 1 458 1 839 2 241 2 391 2 964 10 893
MLM 210 267 285 303 336 1 401
0
5 000
10 000
15 000
20 000
25 000
No
of
mig
ran
ts
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 93
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table C-2: Land use in the regional ZoI
Land Use % of land
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
Formal Residential 54.7 80.8 61.5 67.1
Informal Residential 6.4 7.3 5.0 11.2
Traditional Residential 31.1 - 16.3 -
Farms 4.5 8.8 14.8 19.7
Parks and Recreation 0.0 0.1 0.1 0.1
Collective Living Quarters 1.1 1.1 0.7 1.2
Industrial 0.6 1.5 0.4 0.4
Small Holdings 1.1 - 0.8 -
Vacant 0.2 0.0 0.2 0.1
Commercial 0.4 0.5 0.4 0.1
Source: StatsSA, 2011.
Housing
Across all four municipal designations, most houses are brick structures on separate stands or
yards. However, traditional dwellings are more prevalent in Camden power station’s district and
local Municipalities, where perhaps the presence of more rural, farm-based livelihoods are apparent
and there are less mines and industry. Informal dwellings, in keeping with the higher population
growth rates and more labour intensive job opportunities, are more prevalent in the Nkangala District
Municipality and Steve Tshwete Local Municipality (StatsSA, 2011). A full breakdown of housing
types is provided in Table C-3.
Table C-3: Housing types in the regional ZoI
Type of main dwelling No. of houses per type
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
House or brick structure on a separate stand or yard
271 206 46 875 184 248 28 362
Traditional dwelling/hut/structure made of traditional materials
8 646 1 101 27 144 3 993
Flat in block of apartments 6 537 2 148 5 295 1 275
Cluster house in complex 1 407 504 723 87
Townhouse 2 895 1 092 1 299 156
Semi-detached house 1 374 441 1 260 51
House/flat/room in backyard 7 512 2 247 3 744 687
Informal dwelling/shack (in backyard) 15 849 4 014 13 509 1 509
Informal dwelling (shack not in backyard)
33 666 5 175 32 424 4 206
Room/flatlet not in back yard but on a shared property
4 419 624 1 311 213
Caravan or tent 435 114 321 54
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 94
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Employment
As illustrated in Table C-4, employment in the regional ZoI is varied. The Steve Tshwete Local
Municipality has the highest percentage of working-aged (15+ years) employed people at 52.9%
and the lowest percentage of economically inactive people (30.9%). The Nkangala District
Municipality has the higher unemployment rate of the two districts, however it is marginal.
Dependency on the employed population can be assumed high, with all four municipalities occupied
by upwards of 30.0% not economically active people (StatsSA, 2011).
Table C-4: Employment levels in the regional ZoI
% of population
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
Employed 40.9 52.9 38.9 42.6
Unemployed 17.5 13.0 16.5 15.6
Discouraged work-seeker 4.9 3.1 5.3 5.4
Not economically active 36.7 30.9 39.4 36.4
Source: StatsSA, 2011.
Employment Sectors
A comprehensive breakdown of employment per sector is provided in Table C-5. Both community
services and trade feature as one of the top three employment sectors in the regional ZoI. The
locality of the municipalities on important transport and trade corridors can be seen as the reason
for the high employment in the trade sector.
Community services are a big employment sector in most parts of South Africa, with many social
service requirements and resources responsible for local and district population’s social services
and well-being. This is particularly true of the Nkangala District Municipality, which has a rapidly
growing population. Excluding the Msukaligwa Local Municipality, mining is also a significant
employment sector. In Msukaligwa Local Municipality, due to its rurality and land use, agriculture is
the second largest employment sector (StatsSA, 2011).
Table C-5: Employment sectors in the regional ZoI
Sector
% of population
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
Agriculture 3.4 5.6 9.9 20.3
Mining 18.3 22.7 8.4 9.8
Manufacturing 7.1 12.6 10.6 5.4
Utilities 3.8 2.2 1.5 0.7
Construction 7.0 6.7 6.7 5.3
Trade 20.0 19.4 22.1 17.7
Transport 4.5 3.1 3.6 5.4
Finance 11.5 6.7 9.8 5.7
Community Services 13.6 13.7 18.3 20.8
Private Household 10.7 7.2 9.1 8.9
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 95
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Income
Annual household income is distributed similarly across the four municipalities (See Figure C-3).
The greatest prevalence of no income was found in the Nkangala District Municipality. However, the
Steve Tshwete Local Municipality had the lowest instance of no income households. Excluding the
Steve Tshwete Local Municipality, the most
prescribed income bracket was R19 601-
R38 200, which is classified as a low to
middle income bracket. This, along with the
remaining prescription to income brackets
suggests that the municipalities are made
up of households, which have relatively to
extremely low incomes, which are
exceeded by the needs and means by
which households require to live. This is
further exacerbated by household size, where larger households have very little income to equally
distribute amongst dependants as household size increases (NFM, 2013). Steve Tshwete Local
Municipality has the largest percentage of middle to upper income earners when compared to
Msukaligwa Local Municipality.
ESKOM SOCIAL BASELINE ANNUAL HOUSEHOLD INCOME IN THE REGIONAL
ZOI
Project No. 506503
Figure C-3: Annual household income in the regional ZoI
Source: StatsSA, 2011.
0
5
10
15
20
25
30
35
40
45
NDM STLM GSDM MLM
% o
f h
ou
seh
old
s
Municipality
none
R 1 - R 9 600
R 9 601 - R 38 200
R 38 201 - R 76 400
R 76 401 - R 307 600
R 307 601 - R 614 400
Over R 614 001
Household income is a useful variable to consider
because it brings to light the fact that although
households are comprised of individual members
of the community, income earning individuals are
not spread equally throughout these households.
Low or no income makes a household more
vulnerable.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 96
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Education
The level of education in all four
municipalities (Table C-6) is better than
the provincial average, with Nkangala
District Municipality having the best
education out of the two district
municipalities. In the Nkangala District
Municipality IDP 2016/2017, Steve
Tshwete Local Municipality is listed as the local municipality with the highest number of people over
20 with a matric, the highest matric pass rate, as well as the second lowest percentage of non-
educated people in the province (Nkangala District Municipality IDP 2016/2017).
The Gert Sibande District Municipality has the higher prevalence of non-educated people over 20;
however, primary education was higher in both the Gert Sibande District Municipality and
Msukaligwa Local Municipality when compared to Nkangala District Municipality and Steve Tshwete
Local Municipality. Secondary education levels were in line with the Nkangala District Municipality
in Gert Sibande District Municipality and Msukaligwa Local Municipality, but lower than Steve
Tshwete Local Municipality. Tertiary education, like much of South Africa and Mpumalanga, is low
which can be attributed to (amongst other reasons) lack of tertiary education campuses in the
municipalities (other than Further Education and Training (FET) colleges) as well as financial
constraints presented by attending tertiary institutes.
Table C-6: Highest education level achieved in regional ZoI
% of population over 20 years
NoSchooling
Primary Secondary Certificate/Diploma with less than Matric
Tertiary
Nkangala District Municipality
9.6 32.6 55.8 0.4 1.6
Steve Tshwete Local Municipality
7.2 27.8 61.7 0.6 2.7
Gert Sibande DistrictMunicipality
10.4 35.4 52.3 0.3 1.7
Msukaligwa Local Municipality
9.9 33.7 54.4 0.4 1.7
Source: StatsSA, 2011.
The presence of rural, farm schools in the Gert Sibande District Municipality and Msukaligwa Local
Municipality provide many in the municipality with an education. In both instances of the Gert
Sibande District Municipality and Msukaligwa Local Municipality, primary school facilities exceed
secondary facilities (Gert Sibande District Municipality, 2016). This is reflected in the figures in Table
C-7, where there is a decline in level of education following primary school. As such it can be said
there is a link between the number of schools available and the number of students who are then
able to attend school.
The figures for Steve Tshwete Local Municipality are concerning, with a total of 45 schools, even
though the municipality has the best education levels of all four municipalities concerned. All four
municipalities have an FET college, but as mentioned previously, no university tertiary institution.
Skills levels are an important indicator, because employment of local personnel is important for local
economic development.
It could therefore be assumed that the number of educational facilities in the four municipalities does
not allow for the growth of the skills base in the area, which appears low.
Education and literacy levels are key indicators
of development in a population. Education
attainment levels as well as access to
education facilities are also important indicators
to take into account.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 97
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table C-7: Educational facilities in the regional ZoI
Municipality Primary School
Secondary School
Combined School
Tertiary / FET Total
Nkangala District Municipality
218 102 - 1 (5 FET campus’)
321
Steve Tshwete Local Municipality
25 19 - 1 (FET) 45
Gert Sibande District Municipality
150 77 - 1 228
Msukaligwa Local Municipality
96 12 7 1 116
Source: StatsSA, 2011; Msukaligwa Local Municipality IDP 2016/2017; Steve Tshwete Local Municipality IDP 2016/2017; Gert Sibande District Municipality Draft IDP 2016/2017; Nkangala District Municipality IDP 2016/2017.
Health
Healthcare Infrastructure
The healthcare facilities available to municipalities are illustrated in Table C-8. Both districts have a
similar number of facilities available, however the large populations in the districts, compounded by
accessibility mean these facilities are inadequate to cope with the populations healthcare needs.
Lack of beds, staff and chronic medication are all issues identified in IDPs for municipalities. Steve
Tshwete Local Municipality and Msukaligwa Local Municipality have very few healthcare facilities,
and only four mobile clinics each.
Table C-8: Healthcare facilities in the regional ZoI
Municipality Government Hospital
Private Hospitals
Primary Healthcare Clinics
MobileClinics
Total
Nkangala District Municipality
9 - 86 21 116
Steve Tshwete Local Municipality
1 0 13 4 18
Gert Sibande District Municipality
9 - 81 28 118
Msukaligwa Local Municipality
1 1 10 4 16
Source: Msukaligwa Local Municipality IDP 2017/2017.
Common Ailments
The top ten most common causes of death in three of the municipalities (excluding Msukaligwa
Local Municipality) are listed in Table C-9. It is clear that HIV/Aids is a common cause of death
across the municipalities, and that Aids related deaths including TB, pneumonia and diabetes could
mean that HIV/Aids related deaths are in fact higher.
Road accidents and external accidental incidents feature highly and could be an indication of poor
road conditions as well as negligent driving and un-roadworthy vehicles.
The presence of stillbirth/premature births are concerning, and highlights birthing shortfalls in the
municipalities, in which resources, including beds, midwives and accessibility remain a problem for
the majority of the population.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 98
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table C-9: Common ailments in the regional ZoI
Common ailment Municipality
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
Pneumonia Data not
immediately
available in
desktop format.
Acute respiratory infections Data not
immediately
available in
desktop format.
Bronchitis and bronchopneumonia
Immunesuppression/HIV/Aids
Head injuries arising from motor vehicle accidents
Gastro cardiac conditions/ heart disease
Diabetes
Mellitus
Stillbirths/prematurity
Tuberculosis
Diarrhoeal/intestinal disease
Road injuries
Meningitis/Encephalitis
Cerebrovascular disease
External causes of accidental injury
Source: Nkangala District Municipality IDP 2016/2017; Steve Tshwete Local Municipality IDP, 2016/2017; Department of Health, 2013
HIV/Aids
The HIV/Aids prevalence in the Nkangala District Municipality is the lowest in the province, however
HIV/Aids it nevertheless high. The prevalence has increased from 27.2% in 2010 to 34.5% in 2013
(7.0% increase). Rapid economic development, population growth, immigration, low education
levels and social pathologies (including crime and prostitution) can be linked to the increase over
the past few years. Access and inadequate protective and preventative knowledge in the rural parts
of the municipality are exacerbating factors. Steve Tshwete Local Municipality has experienced the
second highest increase in HIV/Aids prevalence in the Nkangala District Municipality (by 24.0%),
from 28.8% in 2010 to 52.2% in 2013 (Nkangala District Municipality IDP 2016/2017 and Steve
Tshwete Local Municipality IDP, 2016/2017).
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 99
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
In comparison, the Gert Sibande District Municipality has the highest HIV/Aids rate among women
(46.0% in 2012) which has repercussions for mother to child transfer levels in the district. Gert
Sibande District Municipality also has the highest infection rate in Mpumalanga, which as a province
has the second highest infection rate next to KwaZulu Natal (Department of Health, 2013).
Additionally, Gert Sibande District Municipality has a significant vulnerable group: namely HIV/Aids
orphans, who account for the largest orphan group in the district (Gert Sibande District Municipality
IDP, 20176/2017). According to the Department of Health, in 2013, Msukaligwa Local Municipality
had an HIV prevalence rate of 38.0%. Both the Gert Sibande District Municipality and the
Msukaligwa Local Municipality have been identified and are now involved in the National Health
Insurance pilot project, which aims to improve health infrastructure and services in areas where they
are most needed. Part of this includes the role out of anti-retroviral drugs, HIV/Aids testing and
counselling for those infected with the virus (News24, 2013).
Services Infrastructure
Transport
Transport covers both the road infrastructure and public transport system operating in the ZoI.
The main access roads in the ZoI are the N2 and N17. Provincial and regional roads include the
R35, R39, R65 and R542. There are a number of dirt roads that criss-cross the area linking these
official roads to settlements and amenities. The servicing of the provincial and district roads is the
responsibility of the Department of Transport, Nkangala District Municipality, Steve Tshwete Local
Municipality, Gert Sibande District Municipality and the Msukaligwa Local Municipality in their
respective municipal areas. The roads in the area are generally in a varied condition, ranging from
very poor (secondary and district roads that experience high volumes of heavy vehicle traffic as well
as those within informal settlements) to fair (in the case of the N2) condition. Based on Automobile
Association of South Africa (AA) assessment of the roads, a summary of the road types and
condition is summarised in Table C-10 (AA, 2016).
It should be noted that several of these roads are currently being upgraded or will be upgraded in
the future as part of general maintenance and improvement projects.
Table C-10: Provincial and district roads within the regional ZOI
Road Surface Type Road Condition
N2 Tar Fair to poor; uneven in places
N17 Tar The road is in fair to poor condition, uneven and potholed in places
R65 Tar Fair
R35 Fair to poor, subsistence in areas
R39 Tar Fair
Source: AA, 2016.
The primary form of transport throughout the area is walking. Public transport in the ZoI includes
private busses and mini bus taxis. Private busses do not service the outer lying areas of the regional
ZoI and generally stick to the provincial roads. Poor road conditions impact on the wear and tear of
the mini bus taxis and limit their services provided to the outer lying rural areas. As such, people
walk long distance to get to where they need to be.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 100
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Refuse Removal
Refuse removal services in the municipalities (Table C-11) are varied, with Steve Tshwete Local
Municipality having the most comprehensive removal services available, which is significantly better
than the district access, which can be deemed as low (49.7%). The percentage of people with no
access to refuse removal is low overall, however the use of households own refuse dumps is above
20.0% in all municipalities except Steve Tshwete Local Municipality (StatsSA, 2011). Rurality is
listed in both the Nkangala District Municipality and the Msukaligwa Local Municipality as a
constraint in access for refuse removal systems into areas that currently are not serviced
(Msukaligwa Local Municipality IDP, 2016/2017; Nkangala District Municipality IDP, 2016/2017).
Refuse removal access to those that are not serviced was listed in all four municipalities IDPs as an
issue and priority area.
Table C-11: Refuse facilities in the regional ZoI
Type of refuse removal % of households
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
Refuse removed by municipality or private company
49.7 86.3 64.6 66.9
Own refuse dump 39.8 9.6 25.0 20.9
No refuse removal 6.3 2.4 8.0 8.1
Other 4.2 1.7 2.5 4.1
Source: StatsSA, 2011.
Sanitation
As illustrated in Table C-12, a small percentage of the regional ZoI does not have access to any
sanitation facilities (below 3.0% in Nkangala District Municipality and Steve Tshwete Local
Municipality and 6.0% in Gert Sibande District Municipality and Msukaligwa Local Municipality).
However, access to flush toilet facilities is low (51.9%) in the Nkangala District Municipality when
compared to the other three municipalities. Steve Tshwete Local Municipality has the highest
percentage of people using flush toilets (84.6%), but also the highest number of people forced to
use bucket toilet for their ablutions (3.2%), an indication of high poverty and poor service delivery
experienced by those households. Although sanitation is improving in the regional ZoI according to
IDP’s, the use of pit toilets is still significant, particularly in the Nkangala District Municipality
(StatsSA, 2011).
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 101
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table C-12: Sanitation facilities in the regional ZoI
Type of sanitation
% of households
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
None 2.5 2.1 5.2 5.1
Flush toilets connected to a sewage system
49.4 82.6 65.8 74.7
Flush toilets with a septic tank
2.3 2.0 2.1 2.4
Pit toilets with ventilation
10.7 3.3 10.7 3.6
Pit toilet without ventilation
32.7 5.7 14.4 12.3
Chemical toilets 1.1 1.2 2.2 0.8
Bucket toilet system 1.3 3.2 0.8 1.2
Source: StatsSA, 2011.
Water
As provided in Table C-13, both the Steve Tshwete Local Municipality and Msukaligwa Local
Municipality have, generally, better access to piped water. Steve Tshwete Local Municipality has
the smallest instances of no access to piped water (1.8%), while Msukaligwa Local Municipality has
the highest number of households without access to piped water. The most prescribed source in
three of the municipalities is piped water in the house, however in the Nkangala District Municipality,
piped water in the yard is fractionally more (StatsSA, 2011).
In the Msukaligwa Local Municipality IDP (2016/2017), access to piped water is considered a
challenge due to the rurality of the local municipality; with projects underway to ensure that borehole
water can be accessed on farms. This is further challenging for the Msukaligwa Local Municipality
because there is resistance from landowners to allow access to boreholes on their property for
distribution to residents of rural Msukaligwa Local Municipality (Msukaligwa Local Municipality IDP
2016/2017). Water supply is a development priority in Steve Tshwete Local Municipality and access
to piped water on and off site increased from 88.9% in 1996 to 98.2% in 2011 (Steve Tshwete Local
Municipality IDP, 2016/2017).
Table C-13: Water sources in the regional ZoI
Source of Water % of households
Nkangala DistrictMunicipality
Steve Tshwete Local Municipality
Gert Sibande DistrictMunicipality
Msukaligwa Local Municipality
No access to piped water 7.3 1.8 8.9 9.4
Piped water inside the house
40.6 62.2 44.3 53.0
Piped water in the yard 41.6 23.5 37.0 25.0
Communal standpipe 11.0 12.5 9.9 12.5
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 102
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Electricity
Access to electricity for lighting is the highest electrical usage across the municipalities (Figure C-
4). Steve Tshwete Local Municipality has the largest percentage of households with access to
electricity for cooking, heating and lighting, however, electricity for heating remains moderate
(63.0%) (StatsSA, 2011).
ESKOM SOCIAL BASELINE ELECTRICITY ACCESS FOR COOKING, HEATING
AND LIGHTING IN THE REGIONAL ZOI
Project No. 506503
Figure C-4: Electricity access for cooking, heating and lighting in the regional ZoI
Source: StatsSA, 2011.
Electricity for cooking Electricity for heating Electricity for lighting
NDM 73.2 60.4 85.7
STLM 81.8 63.0 90.8
GSDM 62.9 49.4 83.4
MLM 49.1 42.7 74.7
0
10
20
30
40
50
60
70
80
90
100
% o
f p
op
ula
tio
n
Usage format (%)
NDM
STLM
GSDM
MLM
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 103
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendix D: Local Context
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 104
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Hendrina ZoI
Population Structure
StatsSA 2011 Census data shows that the population of the Hendrina ZoI is 28 287. Although no
figure was available it was stated in the Steve Tshwete Local Municipality IDP that there had been
an increase in the populations of wards 1, 2, 3 and 5. Reasons cited for the increase included the
in-migration of people from the greater Mpumalanga region and from neighbouring Southern African
countries, as well as the natural increase in the size of families (Steve Tshwete Local Municipality
IDP, 2016/2017). The portion of the population leaving the area is those aged between 16 and 25
who leave in an effort to find employment (StatsSA, 2011). A breakdown of population structure per
population group is provided in Table D-1 and represents a majority Black African population.
Table D-1: Population structure of Hendrina ZOI
Race Wards 1, 2, 3 and 5
Number
Black African 25 326
Coloured 228
Indian/Asian 99
White 2634
Total 28 287
Source: StatsSA, 2011.
Age and Gender
Attempting to understand the age distribution and gender stratification within the Hendrina ZoI is an
important process as this can help to determine future needs in terms of employment, service
delivery and health care.
The structure of the population in the ZoI appears to indicate that the majority of the population are
under the age of 35 years (Figure D-1) and the ZoI has an overall young population. There are
marginally more males than females in the population within the ZoI (StatsSA, 2011).
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 105
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
ESKOM SOCIAL BASELINE AGE TO GENDER DISTRIBUTION IN HENDRINA
ZOI
Project No. 506503
Figure D-1: Age to gender distribution in Hendrina ZoI, 2011
Source: StatsSA, 2011.
While a young population provides for a potentially physically strong workforce, this is also the age
bracket most likely to contract HIV/Aids (Aids.gov, 2016). This results in associated health and social
problems. Additionally, this age bracket is most likely to become despondent if tertiary education
and employment opportunities are lacking, which can lead to social pathologies, such as crime.
Finally, the high proportion of the population under the age of 15 increases the level of dependency
in the Hendrina ZoI.
Migration
In terms of migration into the Hendrina ZoI, migrants have been identified as largely foreigners (see
Table D-2) in search of living space and employment opportunities (StatsSA, 2011).
Table D-2: Migration into Hendrina ZoI
Province 2007 2008 2009 2010 2011
M F M F M F M F M F
Gauteng 3 3 - - - - - - - -
Mpumalanga 3 3 9 - - 3 3 3 3 -
Limpopo - - - - - - - - - 3
Outside SA 6 6 24 15 3 21 30 12 48 27
Sub-total 12 12 33 15 3 24 33 15- 51 30-
Grand Total 24 48 27 48 89
Source: StatsSA, 2011.
20 15 10 5 0 5 10 15
0 9
10 19
20 34
35 49
50 64
65 79
80+
% of population
Agegroup
Female
Male
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 106
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Land Use and Ownership
As illustrated in Figure D-2, the major land use in the Hendrina ZoI is formal residential, which makes
up 87.7% of all land use. Ownership statistics from the StatsSA 2011 Census indicate that 39.0%
of the population rented accommodation, while 44.0% of the population occupy their properties rent-
free (StatsSA, 2011).
Land use
Wards
1, 2, 3 and 5
%
Formal Residential 87.7
Informal Residential 5.5
Traditional Residential -
Farms 3.7
Parks and Recreation -
Collective Living Quarters -
Industrial 2.8
Small Holdings -
Vacant -
Commercial 0.4
Figure D-2: Land use and ownership in the Hendrina ZoI
Source: StatsSA, 2011.
Housing
The Hendrina ZoI consists of 8 106 households (StatsSA, 2011). These households include free
standing formal structures, informal structures generally constructed from corrugated iron, and
traditional structures built using materials such as mud, stone, and sticks using traditional methods.
As indicated in Table D-4, the majority of housing in the Hendrina ZoI is formal housing (brick
structures on a separate stands or yards), however second to this is informal dwellings, largely
shacks. Influx and population growth has led to an increase in informal dwellings in informal
settlements and on farms, which can be attributed to the labour intense industries, including mining
and energy generation, in the Hendrina ZoI.
The Steve Tshwete Local Municipality is currently assisting the community with the roll out of
housing in a number of housing programmes, specifically the social housing and gap housing
initiatives. Social housing projects aim to provide 10 000 housing units in the next 10 years to low
income households, while the gap housing initiative includes a loan funded gap housing programme
and a self-help housing programme (Steve Tshwete Local Municipality IDP, 2016/2017).
39%
6%11%
44%
Ownership
Rented
Owned but notyet paid off
Occupiedrent-free
Owned andfully paid off
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 107
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-4: Housing types in Hendrina ZoI
Type of main dwelling
Wards 1, 2, 3 and 5
Number
House or brick structure on a separate stand or yard 6 777
Traditional dwelling/hut/structure made of traditional materials 117
Flat in block of apartments 90
Cluster house in complex 6
Townhouse 24
Semi-detached house 3
House/flat/room in backyard 57
Informal dwelling/shack (in backyard ) 351
Informal dwelling (shack not in backyard e.g. in an informal settlement or on a farm) 624
Room/flatlet (not in back yard but on a shared property) 48
Caravan or tent 9
Source: StatsSA, 2011.
Employment
Trends identified from an analysis of the available data sources (Table D-5) suggest that
unemployment in the Hendrina ZoI is moderate, however only 44.6% of the working age population
is employed. In addition, 32.2% of the population are not economically active, which indicates high
dependency on those that are employed (StatsSA, 2011).
Table D-5: Employment levels in the Hendrina ZoI
Employment level Wards 1, 2, 3 and 5
%
Employed 44.6
Unemployed 17.3
Discouraged work-seeker 5.9
Not economically active 32.2
Source: StatsSA, 2011.
Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people
available to be employed in skilled occupations. Much of those employed in the Hendrina ZoI are
employed on farms.
Table D-6: Employment sectors in Hendrina ZoI
Sector Wards 1, 2, 3 and 5
%
Formal 58.9
Informal 28.2
Private household 12.9
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 108
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-6 suggests that more than half of
those employed are employed in the
formal sector (58.9%), while 12.9% are
engaged in subsistence, home based
activities. The informal sector provides
significant employment at 28.2%
(StatsSA, 2011). The majority of
temporarily and formally employed people
in the area work in the local area.
Household Income
According to the StatsSA 2011 Census data and as provided in Table D-7, only 12.4% of households
in the Hendrina ZoI do not earn any income, while 29.2% respectively earn between R9 601.00 and
R38 200.00 (StatsSA, 2011). However, 35.0% of households are comprised of one person, and as
such, dependency is lower than other wards in the municipal area. This is indicative of migrant
labourers and those living in small rooms and informal room lets in informal settlements. Other
means of supplementing household incomes includes the growing of fruit and vegetables and the
keeping of livestock, and 14.0% of the population rely on a household-based income.
Table D-7: Annual household income in Hendrina ZoI
IncomeWards 1, 2, 3 and 5
%
None 12.4
R 1 – R 4800 3.2
R 4801-R 9600 6.0
R 9601-R 19 600 11.6
R 19 601 – R38 200 17.6
R 38 201- R 76 400 20.0
R 76 401- R 153 800 15.3
R 153 801-R 307 600 9.1
R 307 601-614 400 3.5
R 614 001 – R 1 228 800 0.8
R 1 228 801 – R 2 457 600 0.4
Over R 2 457 600 0.3
Source: StatsSA, 2011.
Education
Education levels in the Hendrina ZoI are relatively high with only 7.4% of community members over
the age of 20 not having any form of education. The majority of the population have a secondary
school education (55.7%). The more
concerning factor in the Hendrina ZoI is the fact
that only 3.1% of the community over the age of
20 have any form of tertiary education (StatsSA,
2011). This is mainly due to the fact that tertiary
education it is too expensive for most
households to afford (Fin24, 2015). Education
statistics are included in Table D-8.
Despite a relatively high education level in the
area, Hendrina currently struggles to source
the required skills from the local communities
– Hendrina Power station, 2016.
Hendrina Power station currently employs
690 people, of which 665 are permanent.
The majority of the employees (97%) are
locally sourced from Pullens Hope. 76% of
employees are male while 24% are female
- Eskom, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 109
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-8: Highest level of education for people over 20 years of age in Hendrina ZoI
Highest level of education attained Wards 1, 2, 3 and 5
%
No education 7.4
Primary School 33.4
Secondary School 55.7
Certificate/Diploma (without matric) 0.4
Tertiary Education 3.1
Source: StatsSA, 2011.
The exact number of schools in the Hendrina ZoI was not immediately known to the specialist.
The distance that some learners are required to walk to school will have detrimental effects on
access to education. Having to walk in excess of 10km daily is likely to reduce a learner’s desire
and ability to access education. Additionally, the high proportion of learners walking to school raises
issues of road safety and makes them susceptible to criminal activity (Pheladi, 2015). This is not
necessarily true of the Hendrina ZoI, however may be relevant for the few living in more rural parts
of the Hendrina ZoI.
Health Infrastructure
There is no hospital in the ZoI, with the closest hospital in Ermelo. There are two clinics in Hendrina
and one in Pullenshope. There are no clinics in ward 2, and upgrades are required to clinics in wards
1 and 5 (Steve Tshwete Local Municipality, 2016).
Issues raised by the community in ward 1, 2, 3 and 5 in terms of health infrastructure related
specifically to the absence of a mobile clinic and 24-hour clinic service in each ward (Steve Tshwete
Local Municipality, 2016).
Services and Infrastructure
Refuse Removal
As indicated in Table D-9, the majority of households in the Hendrina ZoI have either municipal or
private refuse removal services (87.8%). Only 1.7% of households do not have any sort of refuse
removal and therefore households are well serviced, which is in line with ease of access for services
in urban areas (StatsSA, 2011). Currently Hendrina provides all refuse removal services in
Pullenshope and the Woestalleen mines. The power station also utilises their own landfill site for
waste disposal.
Table D-9: Refuse facilities in the Hendrina ZoI
Type of refuse removal Wards 1, 2, 3 and 5
%
Refuse removed by municipality or private company 87.8
Own refuse dump 10.5
No refuse removal 1.7
Other 3.0
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 110
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Sanitation
The availability and access to sanitation services is an important social service, and can often be
an indicator of a community’s social wellbeing. From Table D-10 it is clear that sanitation services
are improved and flushing toilets are utilised by 61.4% of the ZoI, and only 5.3% of households had
no sanitation facilities (StatsSA, 2011). Issues raised by communities in the ZoI in the 2016/2017
IDP for Steve Tshwete Local Municipality
suggest that most farms in the Hendrina
ZoI have no access to sanitation
infrastructure. Recent government
programmes have introduced Ventilation
Improved Pit Latrines (VIPs) into
communities. The lack of flushing toilets
is due mainly to infrastructural constraints such as limited access to running water (Steve Tshwete
Local Municipality, 2016).
Table D-10: Sanitation facilities in Hendrina ZoI
Type of sanitation Wards 1, 2, 3 and 5
%
None 5.3
Flush toilets connected to a sewage system 58.3
Flush toilets with a septic tank 3.1
Pit toilets with ventilation 9.0
Pit toilet without ventilation 19.7
Chemical toilets 2.6
Bucket toilet system 2.1
Source: StatsSA, 2011.
Water
The availability and access to reliable and clean drinking water is one of the fundamental services
required by communities. Access to piped water is good in the Hendrina ZoI, and only 1.6% of
households do not have access to piped
water. An estimated 98.4% of households
had access to a water connection either
in their yard, within their dwelling or at a
communal standpipe (StatsSA, 2016).
Areas without access were generally
more remote homesteads on farms. See
Table D-11 for complete statistics.
Table D-11: Water sources in the Hendrina ZoI
Source of water Wards 1, 2, 3 and 5
%
No access to piped water 1.6
Piped water inside the house 56.9
Piped water in the yard 32.0
Communal standpipe 9.5
Source: StatsSA, 2011.
Currently all sewerage from Pullens Hope is
treated at the Hendrina water treatment
works – Hendrina power station, 2016.
Hendrina currently provides both
Pullenshope and Woestalleen mine with
potable water and electricity – Hendrina
power station, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 111
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Electricity
Eskom is the sole distributor of bulk electricity in the Hendrina ZoI and electrical connections are
prevalent in the area, particularly in Pullenshope and Hendrina town. The availability of electricity
as an energy source is vitally important as households utilise it for cooking, heating and lighting. A
summary of StatsSA Census 2011 in Table D-12 concludes that:
The majority of households in the ZoI have access to municipal electricity; and,
The majority of households rely on electricity for cooking (69.8%), heating (66.6%) and lighting
89.7%).
Table D-12: Energy sources for cooking, heating and lighting in the Hendrina ZoI
Energy Source
Wards 1, 2, 3 and 5
%
Cooking Heating Lighting
Electricity 69.8 66.6 89.7
Gas 1.5 1.5 0.5
Paraffin 2.6 0.7 0.4
Candles - - 9.2
Wood 2.2 2.6 -
Charcoal 23.8 28.3 -
Solar 0.2 0.2 0.3
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 112
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Arnot ZoI
Population Structure
StatsSA Census 2011 data and Table D-13 shows that the population of the ZoI is 5 817, made up
largely of Black African people (StatsSA, 2011).
Table D-13: Population structure of Arnot ZoI
Race Ward 7
Number
Black African 4 677
Coloured 42
Indian/Asian 3
White 1 095
Total 5 817
Source: StatsSA, 2011.
Age and Gender
The age distribution and gender structure of the population in the Arnot ZoI indicates that the
majority of the population are under the age of 35 years (Figure D-3) and the area can be classified
as having an overall young population. There are marginally more males than females in the
population within the Arnot ZoI (StatsSA, 2011).
ESKOM SOCIAL BASELINE AGE TO GENDER DISTRIBUTION IN ARNOT ZOI
Project No. 506503
Figure D-3: Age to gender distribution in Arnot ZoI
Source: StatsSA, 2011.
20 15 10 5 0 5 10 15 20
0 9
10 19
20 34
35 49
50 64
65 79
80 +
% of population
Agegroup
Male
Female
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 113
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Migration
In terms of migration into the Arnot ZoI, it is minimal. However, migrants have been identified as
largely foreigners in search of living space and employment opportunities. Table D-14 represents
migration statistics (StatsSA, 2011).
Table D-14: Migration into Arnot ZoI
Province 2007 2008 2009 2010 2011
M F M F M F M F M F
Mpumalanga - - 3 - - - - - 3 -
Limpopo - - - - 3 - - - - -
Outside SA - - - - 9 6 3 - - 9
Sub-total - - - - 12 6 3 - 3 9
Grand Total - 3 18 3 12
Source: StatsSA, 2011.
Land Use and Ownership
As indicated in Figure D-4, primary land use in the Arnot ZoI is formal residential (62.1%), however
a significant amount of land is used for farming (24.9%) and industrial activities (13.1%). The land
use data supports economic sectors active in the area, as well as ownership statistics, which
suggest 53.0% of the population is renting (StatsSA, 2011). This would indicate a larger migrant
and or labour force renting in the area where they work.
Land use Ward 7
%
Formal Residential 62.1
Informal Residential -
Traditional Residential -
Farms 24.9
Parks and Recreation -
Collective Living Quarters -
Industrial 13.1
Small Holdings -
Vacant -
Commercial -
Figure D-4: Land use and ownership in Arnot ZoI
Source: StatsSA, 2011.
53%
14%
16%
17%
OwnershipRented
Owned butnot yet paidoffOccupiedrent-free
Owned andfully paid off
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 114
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Housing
The Arnot ZoI consists of 1 461 households (StatsSA, 2011). These households include free
standing formal structures, informal structures generally constructed from corrugated iron and
traditional structures built using materials such as mud, stone, and sticks using traditional methods.
The majority of housing in the Arnot ZoI is formal housing or brick structures on a separate stands
or yards, however second to this is informal dwellings, largely shacks. A comprehensive account of
housing types in the Arnot ZoI is illustrated in Table D-15 (StatsSA, 2011). Influx and population
growth has led to an increase in informal dwellings in informal settlements and on farms. This can
be attributed to the labour intense industries, including mining and energy generation, in the Arnot
ZoI.
Like the Hendrina ZoI, the Steve Tshwete Local Municipality is currently assisting the community
with the roll out of housing in a number of housing programmes, specifically the social housing and
gap housing initiatives. Social housing projects aim to provide 10 000 housing units in the next 10
years to low income households, while the gap housing initiative includes a loan funded gap housing
programme and a self-help housing programme (Steve Tshwete Local Municipality IDP,
2016/2017).
Table D-15: Types of housing in Arnot ZoI
Type of main dwelling Ward 7
Number
House or brick structure on a separate stand or yard 1 326
Traditional dwelling/hut/structure made of traditional materials 120
Flat in block of apartments 6
Cluster house in complex -
Townhouse -
Semi-detached house 3
House/flat/room in backyard 6
Informal dwelling/shack (In backyard) 3
Informal dwelling (shack not in backyard e.g. in an informal settlement or on a farm)
9
Room/flatlet (not in back yard but on a shared property) 3
Caravan or tent -
Source: StatsSA, 2011.
Employment
Trends identified from an analysis of the
available data sources and represented in
Table D-16 suggest that unemployment in
the Arnot ZoI is moderate, however only
38.9% of the working age population is
employed. A high percentage (39.2%) of the
population is not economically active, which
indicates high dependency on those that are
employed (StatsSA, 2011).
Arnot currently has 710 employees. The
majority of employees (93%) reside in
Rietkuil. Approximately 27% are female
and 63% male – Eskom, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 115
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-16: Employment levels in Arnot ZoI
Employment level Ward 7
%
Employed 38.9
Unemployed 16.5
Discouraged work-seeker 5.4
Not economically active 39.2
Source: StatsSA, 2011.
Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people
available to be employed in skilled occupations. Much of those employed in the Arnot ZoI are
employed on farms. Employment per sector is detailed in Table D-17.
Table D-17: Employment sectors in Arnot ZoI
Sector Ward 7
%
Formal 80.2
Informal 10.4
Private household 9.4
Source: StatsSA, 2011.
The vast majority of the population is employed in the formal sector (80.2%), while 9.4% are
engaged in subsistence, home based activities. The informal sector employs 10.4% (StatsSA,
2011). The majority of temporarily and formally employed people in the area work in the local area.
Household Income
According to the StatsSA 2011 Census data and illustrated in Table D-18, only 6.2% of households
in the Arnot ZoI do not earn any income, while 70% earn between R19 601.00 and R307 600.00.
However, 35.0% of households are comprised of one person, and as such dependency is lower
than other wards in the municipal area (StatsSA, 2011). This household size is indicative of migrant
labourers and those living in small rooms and informal room lets in informal settlements. Other
means of supplementing household incomes includes the growing of fruit and vegetables and the
keeping of livestock.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 116
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-18: Annual household income in Arnot ZoI
IncomeWard 7
%
None 6.2
R 1 – R 4800 2.2
R 4801-R 9600 3.6
R 9601-R 19 600 8.4
R 19 601 – R38 200 12.0
R 38 201- R 76 400 19.6
R 76 401- R 153 800 20.8
R 153 801-R 307 600 17.6
R 307 601-614 400 7.4
R 614 001 – R 1 228 800 1.2
R 1 228 801 – R 2 457 600 0.4
Over R 2 457 600 0.4
Source: StatsSA, 2011
Education
Table D-19 suggests education levels in the Arnot ZoI are relatively high with only 7.4% of
community members over the age of 20 not having any form of education. The majority of the
population have a secondary school education (55.7%). The more concerning factor in the Arnot
ZoI is the fact that only 3.1% of the community over the age of 20 have any form of tertiary education
(StatsSA, 2011). This is mainly due to the fact that tertiary education it is too expensive for most
households to afford (Fin24, 2015).
Table D-19: Highest level of education for people over 20 years of age in Arnot ZoI
Highest level of education attained Ward 7
%
No education 7.4
Primary School 33.4
Secondary School 55.7
Certificate/Diploma (without matric) 0.4
Tertiary Education 3.1
Source: StatsSA, 2011.
The exact number of schools in the Arnot ZoI was not immediately known to the specialist.
Health Infrastructure
There is no hospital in the Arnot ZoI, with the closest hospital in Ermelo, and other healthcare
facilities are not immediately apparent on facility maps for the Arnot ZoI, however there is a clinic in
Rietkuil (Google Earth, 2016).
Issues raised by the community in the Arnot ZoI did not address healthcare facilities and
infrastructure.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 117
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Services and Infrastructure
Refuse Removal
The majority of households in the Arnot ZoI have either municipal or private refuse removal services
(75.7%). Only 2.2% do not have any sort of refuse removal and therefore households are well
serviced, which is in line with ease of access for services in urban areas (StatsSA, 2011). Refuse
facilities are outlined in Table D-20.
Table D-20: Refuse facilities in Arnot ZoI
Type of refuse removal Ward 7
%
Refuse removed by municipality or private company 75.7
Own refuse dump 20.7
No refuse removal 2.2
Other 1.4
Source: StatsSA, 2011.
Sanitation
The availability and access to sanitation services is an important social service, and can often be
an indicator of a community’s social wellbeing. Table D-21 displays the StatsSA 2011 Census data
for sanitation in the Arnot ZoI. Sanitation services are improved and flushing toilets are utilised by
82.3% of the Arnot ZoI, and only 0.6% of households had no sanitation facilities (StatsSA, 2011).
Issues raised by communities in the Arnot ZoI in the 2016/2017 IDP for Steve Tshwete Local
Municipality suggest that waterborne sanitation facilities are required in Sikhululiwe Village (Steve
Tshwete Local Municipality, 2016).
Table D-21: Sanitation facilities in Arnot ZoI
Type of sanitation Ward 7
%
None 0.6
Flush toilets connected to a sewage system 80.4
Flush toilets with a septic tank 1.8
Pit toilets with ventilation 6.5
Pit toilet without ventilation 8.7
Chemical toilets 0.6
Bucket toilet system 1.4
Source: StatsSA, 2011.
Water
The availability and access to reliable and clean drinking water is one of the fundamental services
required by communities. As per Table D-22, access to piped water is good in the Arnot ZoI, and
only 3.2% of households do not have access to piped water. A total of 96.8% of households had
access to a water connection either in their yard, within their dwelling or at a communal standpipe
(StatsSA, 2011). Areas without access included Sikhululiwe Township, which has poor service
delivery (Steve Tshwete Local Municipality, 2016).
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 118
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-22: Water sources in Arnot ZoI
Source of Water Ward 7
%
No access to piped water 3.2
Piped water inside the house 57.6
Piped water in the yard 26.5
Communal standpipe 12.7
Source: StatsSA, 2011.
Electricity
Eskom is the sole distributor of bulk electricity in the Arnot ZOI, and household access to electricity
is good. The availability of electricity as an energy source is vitally important as households utilise
it for cooking, heating and lighting. A summary of StatsSA Census 2011 statistics concludes that:
The majority of households in the ZoI have access to municipal electricity; and,
The majority of households rely on electricity for cooking (81.6%), heating (80.9%) and lighting
(91.6%).
Access to electricity in Arnot ZoI is summarised in Table D-23.
Table D-23: Energy sources for cooking, heating and lighting in Arnot ZoI
Energy Source
Ward 7
%
Cooking Heating Lighting
Electricity 81.6 80.9 91.6
Gas 0.4 0.6 0.4
Paraffin 1.4 0.4 0.4
Candles - - 7.4
Wood 10.0 10.4 -
Charcoal 6.2 7.3 -
Solar 0.2 0.2 0.2
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 119
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Komati ZoI
Population Structure
As per Table D-24, the population of the Komati ZoI is estimated at 5 010 according to the StatsSA
2011 Census data. It has a majority Black African population and the white population second most
represented group in the ZoI (StatsSA, 2011).
Table D-24: Population structure of Komati ZoI
Race Ward 4
Number
Black African 3 966
Coloured 45
Indian/Asian 15
White 948
Other 6
Total 5 010
Source: StatsSA, 2011.
Age and Gender
There are more males than females in the Komati ZoI (StatsSA, 2011), which supports the
conclusion that migration is high in the area due to males seeking migrant work on mines and in
some instances, farms. The population spikes in the working age groups, particularly amongst the
20-34 year groups, which is another indication of immigration (Figure D-5).
ESKOM SOCIAL BASELINE AGE TO GENDER DISTRIBUTION IN KOMATI ZOI
Project No. 506503
Figure D-5: Age to gender distribution in Komati ZoI
Source: StatsSA, 2011.
30 20 10 0 10 20
0 9
10 19
20 34
35 49
50 64
65 79
80 +
% of population
Agegroup
Male
Female
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 120
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Migration
Migration has been significant and gradually growing in the Komati ZoI since 2007 (Table D-25).
Although some migrants have come from within South Africa, the majority (123 known migrants)
have come from outside of South Africa (StatsSA, 2011). This is a trend across the country and
within Mpumalanga Province, and is a result of neighbouring countries working population travelling
to find perceived better living space and employment opportunities.
Table D-25: Migration into Komati ZoI
Province 2007 2008 2009 2010 2011
M F M F M F M F M F
North West - - 3 - - - - - - -
Mpumalanga - - - 3 - - - - 3 -
Outside SA 9 6 12 15 12 21 3 3 18 24
Unspecified 3 3 9
Sub-total 9 6 18 18 12 21 6 3 27 27
Grand Total 15 36 33 9 54
Source: StatsSA: Census 2011
Land Use and Ownership
As indicated in Figure D-6, the Komati ZoI has varied land uses, most of which is residential. (of
which 54.0% is formal and 27.6% informal). Land used for farming accounts for 17.4% of the Komati
ZoI. High informal and formal residential patterns suggest that in-migration is significant, and the
increasing population has led to urban sprawl and the growth of informal settlements, where most
occupants are renting (StatsSA Census, 2011).
Land use Ward 4
%
Formal Residential 54.0
Informal Residential 27.6
Traditional Residential -
Farms 17.4
Parks and Recreation -
Collective Living Quarters -
Industrial 1.1
Small Holdings -
Vacant -
Commercial -
Figure D-6: Land use and ownership in Komati ZoI
Source: StatsSA, 2011.
67%3%
19%
11%
Ownership
Rented
Owned butnot yet paidoff
Occupiedrent-free
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 121
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Housing
As per Table D-25, the Komati ZoI consists of 1 137 households. Unlike some neighbouring wards,
the Komati ZoI has very few traditional dwellings. The majority of houses are formal housing or brick
structures as well as Informal dwellings, largely shacks, many of which are to be found in Komati
(StatsSA, 2011). Influx and population growth has led to an increase in informal dwellings in informal
settlements and on farms, which can be attributed to the labour intense industries, including mining
and energy generation, in the Komati ZoI.
Table D-25: Types of housing in the Komati ZoI
Type of main dwelling Ward 4
Number
House or brick structure on a separate stand or yard 1 137
Traditional dwelling/hut/structure made of traditional materials 21
Flat in block of apartments 9
Cluster house in complex 6
Townhouse -
Semi-detached house 18
House/flat/room in backyard 36
Informal dwelling/shack: In backyard 45
Informal dwelling (shack; not in backyard e.g. in an informal settlement or on a farm) 624
Room/flatlet not in back yard but on a shared property 3
Caravan or tent 3
Source: StatsSA, 2011.
Employment
The Komati ZoI has the lowest level of not economically employed population compared to the three
other ZoI’s (see Table D-26). Employment is estimated at 56.5% of the population, a positive
statistic. Only 14.7% are unemployed, however the 25.6% of the population that is not economically
active will be reliant on members of the household that are, thus creating a significant dependency
ratio for the ZoI (StatsSA, 2011).
Table D-26: Employment levels in Komati ZoI
Employment level Ward 4
%
Employed 56.5
Unemployed 14.7
Discouraged work-seeker 3.2
Not economically active 25.6
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 122
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people
available to be employed in skilled occupations. Many of those employed in the Komati ZoI are
employed on farms. A summary of employment per sector is in Table D-27.
Table D-27: Employment sectors in Komati ZoI
Sector Ward 4
%
Formal 82.1
Informal 12.4
Private household 5.5
Source: StatsSA, 2011.
The formal sector accounts for 82.1% of
all employment in the Komati ZoI, with
only 12.4% working in the informal
sector (StatsSA, 2011). Compared to
surrounding wards, the Komati ZoI has
a low number of people employed by
private households, indicating less
reliance on subsistence livelihoods.
Household Income
As indicated in Table D-28, a notable percentage of households do not earn an annual income
(17.9%), with the largest percentage of those earning an income of between R19 601.00 and
R153 800.00 annually (57.0%). With 55.3% of households only averaging one person, dependency
is relatively low in single households; however, in the 24.1% of households that have three or more
occupants, dependency can be expected to be higher (StatsSA, 2011).
Table D-28: Annual household income in Komati ZoI
IncomeWard 4
%
None 17.9
R 1 – R 4800 2.0
R 4801-R 9600 2.8
R 9601-R 19 600 6.4
R 19 601 – R38 200 16.7
R 38 201- R 76 400 23.4
R 76 401- R 153 800 16.9
R 153 801-R 307 600 8.9
R 307 601-614 400 3.7
R 614 001 – R 1 228 800 0.8
R 1 228 801 – R 2 457 600 0.3
Over R 2 457 600 0.3
Source: StatsSA, 2011.
Komati power station currently employs 470
people, of which 352 are permanent. The
majority of the employees (439) are sourced
from Emalahleni. 67% of employees are male
while 33% are female - Eskom, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 123
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Education
Table D-29 suggests education levels in
the Komati ZoI are positive, with 63.3%
having completed secondary school
over the age of 20. Only 7.9% of the
population over 20 have not received
any formal education. Like many wards
in the province, tertiary education
success is dire at only 0.7% of the population (StatsSA, 2011). This is again due to tertiary education
costs (Fin24, 2015) and accessibility constraints for those wards and municipalities that do not have
tertiary facilities in close proximity (Pheladi, 2015).
Table D-29: Highest level of education for people over 20 years of age in Komati ZoI
Highest level of education attained Ward 7
%
No education 7.9
Primary School 27.9
Secondary School 63.3
Certificate/Diploma (without matric) 0.2
Tertiary Education 0.7
Source: StatsSA, 2011.
According to the Steve Tshwete Local Municipality, there is the need for either an additional or new
school in the Komati ZoI, and as such it has been listed as an urgent community need (Steve
Tshwete Local Municipality, 2016). It appears that there is a primary school (Laerskool Koorfontein)
in Komati Village, where the majority of the population reside (Google Earth, 2016). Rurality of farm
communities is listed as a constraint to education progress in the ZoI, and initiatives have been put
in place to improve public transport accessibility to schools in and around the ZoI. These include
the grading of roads in rural areas of the ZoI to allow learners to travel to and from school using
means other than walking, often across great distances (Steve Tshwete Local Municipality, 2016).
Health Infrastructure
There is no hospital in the Komati ZoI and the nearest hospital is in Ermelo. The clinic in the ZoI
(located in Komati) requires maintenance, however while this was listed as a need by the
municipality, it was not a raised as a concern by the community (Steve Tshwete Local Municipality,
2016).
Services Infrastructure
Refuse Removal
Referring to Table D-30, refuse disposal by the municipality or private companies is afforded to
55.1% of the population, and is focused in the urban pockets of the Komati ZoI (including Komati
Village). Only 1.8% of households that do not have any sort of refuse removal, while a significant
39.9% have their own refuse dumps (StatsSA, 2011). This is a hygiene concern and as such a
health hazard, as stagnant refuse can both pollute and degenerate the land and water on/in which
it sits.
Despite a positive education level in the area,
Komati currently struggles to source the
required skills from the local communities –
Komati power station, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 124
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-30: Refuse facilities in Komati ZoI
Type of refuse removal Ward 4
%
Refuse removed by municipality or private company 55.1
Own refuse dump 39.9
No refuse removal 1.8
Other 3.2
Source: StatsSA, 2011.
Sanitation
Sanitation in the Komati ZoI is varied (Table D-31); with urban pockets enjoying better services
when compared to rural and informal settlements. The availability and access to sanitation services
is an important social service, and can often be an indicator of a community’s social wellbeing.
Flushing toilets are utilised by 55.7% of the Komati ZoI, and a significant 18.1% of households had
no sanitation facilities available to them
(StatsSA, 2011). Issues raised by
communities in the Komati ZoI in the
2016/2017 IDP for Steve Tshwete Local
Municipality, did not identify sanitary needs;
however, statistics suggest the delivery of
sanitation can be improved upon (Steve
Tshwete Local Municipality, 2016).
Table D-31: Sanitation facilities in Komati ZoI
Sanitation type Ward 4
%
None 18.1
Flush toilets connected to a sewage system 55.4
Flush toilets with a septic tank 0.3
Pit toilets with ventilation 1.9
Pit toilet without ventilation 20.0
Chemical toilets 0.5
Bucket toilet system 3.9
Source: StatsSA, 2011.
Water
The availability and access to reliable and
clean drinking water is one of the
fundamental services required by
communities. Access to piped water is good
in Komati ZoI (see Table D-32). There are
5.2% of households that do not have access
to piped water and 61.3% of households
that have access to a water connection either in their yard or within their dwelling. Communal
standpipes provide a substantial portion of the population with water at 33.6% (StatsSA, 2011).
Komati currently provides both water and
electricity to the Komati Village – Komati
power station, 2016.
Currently, the local municipality is responsible
for sanitation provision and services in Blinkpan
and Komati Village – Komati power station,
2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 125
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-32: Water sources in Komati ZoI
Source of Water Ward 4
%
No access to piped water 5.2
Piped water inside the house 50.1
Piped water in the yard 11.2
Communal standpipe 33.6
Source: StatsSA, 2011.
Electricity
Eskom is the sole distributor of bulk electricity in the Komati ZoI. Electricity is available and used by
over 56.0% of households for cooking, heating and lighting. However, in the instance of heating,
18.5% of households have no resources available to them, and candles still account for a large
percentage of lighting in the Komati ZoI (37.4%). The availability of electricity as an energy source
is vitally important for households, and is described in Table D-33 (StatsSA, 2011). The Steve
Tshwete Local Municipality IDP for 2016/2017 indicated that Eskom had identified 373 houses in
the following areas for future electrification, many of which are located in the rural localities of the
Komati ZoI:
Big House Farm: 52;
Bronsy Farm: 18;
Haasfontein Farm:15;
Dericky's Farm: 15;
Gelug Farm: 20;
Mahlathini Farm: 180;
Schoeman Farm: 29;
Geluk Farm:8;
Komati: 12;
Driefontein Farm: 13; and,
General: 11.
Table D-33: Energy sources for cooking, heating and lighting in Komati ZoI
Energy Source
Ward 4
%
Cooking Heating Lighting
Electricity 54.4 52.8 56.5
Gas 1.1 1.1 0.2
Paraffin 33.9 5.7 5.3
Candles - - 37.4
Wood 1.2 3.8 -
Charcoal 9.2 18.5 -
Solar 0.2 0.2 0.2
None 0.2 18.5 0.5
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 126
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Camden ZoI
Population Structure
National census data (illustrated in Table D-34) shows that the population of the Camden ZoI is
7 269 (StatsSA, 2011). Although no figure was available it was stated in the Msukaligwa Local
Municipality 2016/2017 IDP that there had been an increase in the Camden ZoI population. Reasons
cited for the increase include the in-migration of people from the greater Mpumalanga region and
from neighbouring Southern African countries, as well as the natural increase in the size of families
(Msukaligwa Local Municipality, 2016). The largest portion of the population leaving the area is
those aged between 16 and 25 who leave in an effort to find employment.
Table D-34: Population Structure of Camden ZoI
Race Ward 11
Number
Black African 7 122
Coloured 18
Indian/Asian 18
White 111
Total 7 269
Source: StatsSA, 2011.
Age and Gender
Attempting to understand the age distribution and gender stratification within the Camden ZoI is an
important process. The structure of the population in the Camden ZoI appears to indicate that the
majority of the population are under the age of 35 years (Figure D-7) and the area can be classified
as having an overall young population. There are marginally more females than males in the
population within the ZoI (StatsSA, 2011).
ESKOM SOCIAL BASELINE AGE TO GENDER DISTRIBUTION IN CAMDEN ZOI
Project No. 506503
Figure D-7: Age to gender distribution in Camden ZoI
Source: StatsSA, 2011.
-15 -10 -5 0 5 10 15
0 - 9
10 - 19
20 - 34
35 - 49
50 - 64
65 - 79
80 +
% of population
Ag
e g
rou
p
Male
Female
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 127
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
While a young population provides for a potentially strong workforce, this is also the age bracket
most likely to contract HIV/Aids (Aids.gov, 2016), resulting in associated health and social problems,
and also the age bracket most likely to become despondent if tertiary education and employment
opportunities are lacking, which can lead to social problems, such as crime. In addition, the high
proportion of the population under the age of 15 increases the level of dependency in the Camden
ZoI.
Migration
Migration statistics appear incomplete for the Camden ZoI. StatsSA Census 2011 statistics suggest
there have been no migrations into the Camden ZoI between 2007 and 2011 (StatsSA, 2011);
however, this is unlikely if compared with migration patterns in surrounding wards and within
Mpumalanga province.
Land Use and Ownership
In terms of land use (see Table D-35), Camden ZoI has more designated farmland (37.7%) than
any of the other three ZoI’s. The remaining 62.34% of land use is formal residential. At 34.0%, the
Camden ZoI also has the highest number of residents living rent free (StatsSA, 2011), which is
indicative of a community typically living on the farms they are employed on, with their families.
Table D-35: Land use and ownership in Camden ZoI
Land use Ward 11
%
Formal Residential 62.3
Informal Residential -
Traditional Residential -
Farms 37.7
Parks and Recreation -
Collective Living Quarters -
Industrial -
Small Holdings -
Vacant -
Commercial -
Source: StatsSA, 2011.
Housing
The Camden ZoI consists of 1 527 households (see Table D-36). These households include free
standing formal structures, informal structures generally constructed from corrugated iron and
traditional structures built using materials such as mud, stone, and sticks using traditional methods.
The majority of housing in the Camden ZoI is formal housing made of brick on separate stands or
yard, however, traditional dwellings are the next most prevalent (StatsSA, 2011). Population growth
has led to an increase in informal dwellings in informal settlements and on farms, which can also be
attributed to seasonal farm work and ex-farm employees continuing to reside on farms following
termination of employment.
The Msukaligwa Local Municipality is currently assisting the farm community in Sheepmoor with the
consolidation and subdivision of land for housing; however dilapidated Reconstruction and
Development Programme (RDP) housing and lack of housing have been raised as issues by the
communities living in Sheepmoor and the KwaMahlafuna and De Emigrattie farm areas (Msukaligwa
Local Municipality, 2016).
27%
12%
34%
27%
Ownership
Rented
Owned but notyet paid off
Occupied rent-free
Owned and fullypaid off
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 128
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-36: Types of housing in the Camden ZoI
Type of main dwelling Ward 11
Number
House or brick structure on a separate stand or yard 873
Traditional dwelling/hut/structure made of traditional materials 540
Flat in block of apartments -
Cluster house in complex -
Townhouse -
Semi-detached house -
House/flat/room in backyard 36
Informal dwelling/shack: In backyard 21
Informal dwelling (shack; not in backyard e.g. in an informal settlement or on a farm) 57
Room/flatlet not in back yard but on a shared property -
Caravan or tent -
Source: StatsSA, 2011.
It should be noted that the above table represents the type of structure of the main dwelling. Many
traditional homesteads in the Camden ZoI have more than one building on their property. Extra
buildings per homestead are likely to be used for housing extended family, ablution facilities and for
livestock such as chickens. Typically, the majority of these buildings would be made from traditional
materials and/or informal materials.
Employment
Trends identified from an analysis of
the StatsSA Census 2011 statistics
(Table D-37), suggest that
unemployment in the Camden ZoI is
low, however 41.5% of the population
are not economically active, which
indicates high dependency on the
31.6% of the population that are
employed (StatsSA, 2011).
Table D-37: Employment levels in Camden ZoI
Employment level Ward 11
%
Employed 31.6
Unemployed 17.8
Discouraged work-seeker 9.0
Not economically active 41.5
Source: StatsSA, 2011.
Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people
available to be employed in skilled occupations. Much of those employed in the Camden ZoI are
thought to be employed on farms. Table D-38 provides a summary of the above (StatsSA, 2011).
Camden currently has 373 employees, 321 of
which are permanent. The majority of employees
(351) reside in Ermelo. Approximately 35% are
female and 65% male – Eskom, 2016.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 129
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-38: Employment sectors in Camden ZoI
Sector Ward 11
%
Formal 69.8
Informal 23.5
Private household 6.7
Source: StatsSA, 2011.
Household Income
According to StatsSA 2011 Census data (illustrated in Table D-39), only 10.2% of households in the
Camden ZoI do not earn any income, while 42.5% earn between R9 601.00 and R38 200.00
(StatsSA, 2011). There are however 47.2% of households with four or more occupants, and as such
the household incomes is often stretched and insufficient to support whole households. This puts
an enormous amount of pressure on higher income earning individuals who often support the entire
household. Other means of supplementing household incomes includes the growing of fruit and
vegetables and the keeping of livestock, and 6.9% of the population rely on a household-based
income (StatsSA, 2011).
Table D-39: Annual monthly income in Camden ZoI
IncomeWard 11
%
None 10.2
R 1 – R 4800 3.6
R 4801-R 9600 10.0
R 9601-R 19 600 18.6
R 19 601 – R38 200 23.9
R 38 201- R 76 400 18.1
R 76 401- R 153 800 10.0
R 153 801-R 307 600 4.1
R 307 601-614 400 1.3
R 614 001 – R 1 228 800 -
R 1 228 801 – R 2 457 600 -
Over R 2 457 600 0.4
Source: StatsSA, 2011.
Education
Education levels in Camden ZoI
communities are moderate (Table D-40)
with 15.2% of community members over the
age of 20 not having any form of education.
Approximately 42.6% of the population
have a primary education and 41.5% a
secondary school education. The more
concerning factor in the ZoI is the fact that only 0.5% of the community over the age of 20 have any
form of tertiary education (StatsSA, 2011). This is mainly due to the fact that there is no tertiary
institution in the Msukaligwa Local Municipality and tertiary education is not readily available in the
more rural areas as it is too expensive for most households to afford (Fin24, 2015).
Education level in the area are not high
and as such, Camden currently struggles
to source the required skills from the local
communities – Camden power station,
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 130
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Table D-40: Highest level of education for people over 20 years of age in Camden ZoI
Highest level of education attained Ward 11
%
No education 15.2
Primary School 42.6
Secondary School 41.5
Certificate/Diploma (without matric) 0.1
Tertiary Education 0.5
Source: StatsSA, 2011.
Desktop studies suggest there are two primary schools and one secondary school in Sheepmoor
(Msukaligwa Local Municipality IDP 2016/2017).
The distance that some learners are required to walk to school will have detrimental effects on
access to education. Having to walk in excess of 10km daily is likely to reduce a learner’s desire
and ability to access education. Additionally, the high proportion of learners walking to school raises
issues of road safety and makes them susceptible to criminal activity (Pheladi, 2015). This is
particularly the case in an area with urban pockets and large rural spaces such as the Camden ZoI.
Health Infrastructure
The closest hospital to the Camden ZoI is located in Ermelo, and as such, there are no hospitals in
the Camden ZoI. There is a clinic in Sheepmoor; however, it does not open on weekends according
to community members and operates for 8 hours a day, Monday to Friday (Msukaligwa Local
Municipality SDF, 2010 and Msukaligwa Local Municipality IDP, 2016/2017).
Services Infrastructure
Refuse Removal
As illustrated in Table D-41, only 16.9% of households in the Camden ZoI have either municipal or
private refuse removal services, concentrated in the urban pockets of Camden. A moderate number
of households in the Camden ZoI do not have any sort of refuse removal (15.4%) and therefore
households are forced to dispose of their own refuse in their own refuse dumps (64.1%). This is
generally done by either burying or burning it. Sheepmoor does not have a refuse removal service
(Msukaligwa Local Municipality IDP 2016/2017; StatsSA, 2011).
Table D-41: Refuse facilities in Camden ZoI
Type of refuse removal Ward 11
%
Refuse removed by municipality or private company 16.9
Own refuse dump 64.1
No refuse removal 15.4
Other 3.6
Source: StatsSA, 2011.
A lack of suitable refuse removal has both environmental and community health implications, and
the without regular servicing, refuse builds up can to the point that it spills over onto the area around,
it creating unhygienic conditions.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 131
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Sanitation
The availability and access to sanitation services is an important social service, and can often be
an indicator of a community’s social wellbeing. From the StatsSA Census 2011 data (Table D-42) it
is clear that pit latrines are the dominant sanitation method per household throughout the Camden
ZoI, and that as many as 19.4% of households had no sanitation facilities (StatsSA, 2011). Issues
raised by communities in Camden ZoI in the 2016/2017 IDP for Msukaligwa Local Municipality
suggest that low cost housing in Sheepmoor was without functioning sewerage systems, and as
such the community are forced to rely on pit latrines and in some instances, no facilities at all. The
KwaMahlafuna and De Emigrattie farm areas had new VIP toilets installed recently, but complained
they had since become full and could no longer be used (Msukaligwa Local Municipality, 2016).
Table D-42: Sanitation facilities in Camden ZoI
Type Ward 11
%
None 19.4
Flush toilets connected to a sewage system 21.5
Flush toilets with a septic tank 3.1
Pit toilets with ventilation 12.5
Pit toilet without ventilation 41.4
Chemical toilets 1.4
Bucket toilet system 0.8
Source: StatsSA, 2011.
Water
The availability and access to reliable and clean drinking water is one of the fundamental services
required by communities. Access to piped water is poor in the Camden ZoI (see Table D-43), and
46.9% of households do not have access to piped water. However, 53.1% of households had access
to a water connection either in their yard, within their dwelling or at a communal standpipe (StatsSA,
2011). Areas without access are generally more remote homesteads on farms, which rely on
boreholes for water. Sheepmoor residents claim these boreholes dry up in winter, resulting in water
insecurity (Msukaligwa Local Municipality, 2016).
Table D-43: Water sources in Camden ZoI
Source of Water Ward 11
%
No access to piped water 46.9
Piped water inside the house 20.8
Piped water in the yard 18.3
Communal standpipe 14.0
Source: StatsSA, 2011.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 132
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Electricity
Eskom is the sole distributor of bulk electricity in the Camden ZoI. However, electrical connections
are not widely prevalent in the Camden ZoI due to disbursed settlement and the rurality of farms.
The availability of electricity as an energy source is vitally important as households utilise it for
cooking, heating and lighting. A summary of StatsSA Census 2011 statistics in Table D-44
concludes that (StatsSA, 2011):
The majority of households in the ZoI do not use municipal electricity for cooking and heating;
The majority of households rely on wood for cooking (60.5%) and heating (66.1%);
The majority of households rely on electricity for lighting (62.0%); and,
Despite this, candles are a significant source of lighting at 36.9%.
Table D-44: Energy sources for cooking, heating and lighting in the Camden ZoI
Energy Source
Ward 11
%
Cooking Heating Lighting
Electricity 37.2 31.8 62.0
Gas 0.6 0.6 0.2
Paraffin 0.4 0.4 0.6
Candles - - 36.9
Wood 60.5 66.1 -
Charcoal 1.3 1.2 -
Solar - - 0.4
Source: StatsSA, 2011.
The Msukaligwa Local Municipality IDP (2016/2017) indicated that electrification was required in
parts of Sheepmoor as well as farm area in KwaMahlafuna and De Emigrattie. The IDP suggests
that this challenge is a result of some land owners are not willing to contribute towards electrification
of their farm dwellers accommodation. Five electrification projects (funded by Eskom) had been
undertaken in the following settlements:
34 units Thandanani Khululekani;
24 units Mbalenhle;
37 units Sizenzela;
31 units on The Siyanyakaza; and,
25 units on Hooland- Thuthukani.
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 133
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
Appendix E: Options Analysis
Wei
gh
tin
g (
1-3)
Sta
tus
Qu
oR
atin
gO
pti
on
1:
Ref
urb
ish
men
t
Rat
ing
:
Op
tio
n 1
Op
tio
n 3
: D
emo
lish
and
Reb
uild
Rat
ing
:
Op
tio
n 3
Op
tio
n 4
:
Dec
om
mis
sio
n
Rat
ing
:
Op
tio
n 4
Po
or
Med
ium
Go
od
Dire
ct E
mpl
oym
ent
25
105
104
81
25
1015
Pro
cure
men
t3
412
412
515
13
510
15
Air
Em
issi
ons
23
63
63
65
105
1015
Fug
itive
Dus
t 2
24
12
12
24
510
15
Sur
face
Wat
er P
ollu
tion
14
44
44
44
45
1015
Gro
und
Wat
er P
ollu
tion
31
32
62
61
35
1015
Wat
er U
sage
3
26
13
39
515
510
15
CS
I Con
trib
utio
n2
48
48
48
12
510
15
Edu
catio
n an
d T
rain
ing
13
33
33
31
15
1015
Wat
er
34
123
94
123
95
1015
Ele
ctric
ity
34
124
124
122
65
1015
San
itatio
n 2
36
36
36
36
510
15
Was
te R
emov
al
13
33
33
33
35
1015
Coa
l Sou
rcin
g T
ruck
ing
23
63
63
64
85
1015
Env
ironm
enta
l 2
36
36
24
36
510
15
Soc
io-e
cono
mic
32
62
61
33
95
1015
Pow
er S
uppl
y 3
412
412
39
13
510
15
GD
P C
ontr
ibut
ion
33
93
93
91
35
1015
Eco
nom
ic M
ultip
liers
33
93
93
91
35
1015
1-5
Poo
r -
The
out
com
e w
ill h
ave
an o
vera
ll ne
gativ
e so
cio-
econ
omic
impa
ct. I
ncre
ased
grie
vanc
es a
nd c
omm
unity
dis
satis
fact
ion
coul
d oc
cur.
6-10
Med
ium
- T
he o
utco
me
will
res
ult i
n m
anag
eabl
e so
cio-
econ
omic
impa
cts.
Som
e gr
ieva
nces
may
stil
l occ
ur.
11-1
5G
ood
- T
he o
utco
me
will
hav
e a
pote
ntia
lly p
ositi
ve s
ocio
-eco
nom
ic r
esul
t
Land
Tak
e
Reg
iona
l and
Nat
iona
l
HE
ND
RIN
A P
OW
ER
ST
AT
ION
So
cio
-eco
no
mic
Co
nsi
der
atio
ns
Em
ploy
men
t and
Pro
cure
men
t
Env
ironm
enta
l Im
pact
s
LED
and
CS
I
Ser
vice
Del
iver
y
Wei
gh
tin
g (
1-3)
Sta
tus
Qu
oR
atin
gO
pti
on
1:
Ref
urb
ish
men
tR
atin
g:
Op
tio
n
1
Op
tio
n 3
: D
emo
lish
an
d
Reb
uild
Rat
ing
:
Op
tio
n 3
Op
tio
n 4
:
Dec
om
mis
sio
n
Rat
ing
:
Op
tio
n 4
Po
or
Med
ium
Go
od
Dire
ct E
mpl
oym
ent
25
105
104
81
25
1015
Pro
cure
men
t3
412
412
515
13
510
15
Air
Em
issi
ons
24
83
63
65
105
1015
Fug
itive
Dus
t 2
36
24
24
36
510
15
Sur
face
Wat
er P
ollu
tion
13
33
33
34
45
1015
Gro
und
Wat
er P
ollu
tion
31
32
62
61
35
1015
Wat
er U
sage
3
26
13
412
515
510
15
CS
I Con
trib
utio
n2
48
48
48
12
510
15
Edu
catio
n an
d T
rain
ing
14
44
44
41
15
1015
Wat
er
34
123
94
123
95
1015
Ele
ctric
ity
34
124
124
122
65
1015
San
itatio
n 2
36
36
36
36
510
15
Was
te R
emov
al
13
33
33
33
35
1015
Coa
l Sou
rcin
g T
ruck
ing
22
42
42
44
85
1015
Env
ironm
enta
l 2
36
36
24
36
510
15
Soc
io-e
cono
mic
34
123
92
65
155
1015
Pow
er S
uppl
y 3
39
39
26
13
510
15
GD
P C
ontr
ibut
ion
33
93
93
91
35
1015
Eco
nom
ic M
ultip
liers
33
93
93
91
35
1015
1-5
Poo
r -
The
out
com
e w
ill h
ave
an o
vera
ll ne
gativ
e so
cio-
econ
omic
impa
ct. I
ncre
ased
grie
vanc
es a
nd c
omm
unity
dis
satis
fact
ion
coul
d oc
cur.
6-10
Med
ium
- T
he o
utco
me
will
res
ult i
n m
anag
eabl
e so
cio-
econ
omic
impa
cts.
Som
e gr
ieva
nces
may
stil
l occ
ur.
11-1
5G
ood
- T
he o
utco
me
will
hav
e a
pote
ntia
lly p
ositi
ve s
ocio
-eco
nom
ic r
esul
t
Reg
iona
l and
Nat
iona
l
AR
NO
T P
OW
ER
ST
AT
ION
Land
Tak
e
LED
and
CS
I
So
cio
-eco
no
mic
Co
nsi
der
atio
ns
Em
ploy
men
t and
Pro
cure
men
t
Env
ironm
enta
l Im
pact
s
Ser
vice
Del
iver
y
Wei
gh
tin
g (
1-3)
Sta
tus
Qu
oR
atin
gO
pti
on
1:
Ref
urb
ish
men
t
Rat
ing
:
Op
tio
n 1
Op
tio
n 3
: D
emo
lish
an
d
Reb
uild
Rat
ing
:
Op
tio
n 3
Op
tio
n 4
:
Dec
om
mis
sio
n
Rat
ing
: O
pti
on
4P
oo
rM
ediu
mG
oo
d
Dire
ct E
mpl
oym
ent
25
104
84
81
25
1015
Pro
cure
men
t3
412
412
515
13
510
15
Air
Em
issi
ons
23
63
63
65
105
1015
Fug
itive
Dus
t 2
36
24
24
36
510
15
Sur
face
Wat
er P
ollu
tion
13
33
33
33
35
1015
Gro
und
Wat
er P
ollu
tion
31
32
62
61
35
1015
Wat
er U
sage
3
26
13
39
515
510
15
CS
I Con
trib
utio
n2
48
48
48
12
510
15
Edu
catio
n an
d T
rain
ing
12
22
22
21
15
1015
Wat
er
34
123
94
123
95
1015
Ele
ctric
ity
34
124
124
122
65
1015
San
itatio
n 2
24
24
24
24
510
15
Was
te R
emov
al
12
22
22
22
25
1015
Coa
l Sou
rcin
g T
ruck
ing
23
63
63
64
85
1015
Env
ironm
enta
l 2
24
24
12
24
510
15
Soc
io-e
cono
mic
31
31
31
31
35
1015
Pow
er S
uppl
y 3
515
515
412
13
510
15
GD
P C
ontr
ibut
ion
33
93
93
91
35
1015
Eco
nom
ic M
ultip
liers
33
93
93
91
35
1015
1-5
Poo
r -
The
out
com
e w
ill h
ave
an o
vera
ll ne
gativ
e so
cio-
econ
omic
impa
ct. I
ncre
ased
grie
vanc
es a
nd c
omm
unity
dis
satis
fact
ion
coul
d oc
cur.
6-10
Med
ium
- T
he o
utco
me
will
res
ult i
n m
anag
eabl
e so
cio-
econ
omic
impa
cts.
Som
e gr
ieva
nces
may
stil
l occ
ur.
11-1
5G
ood
- T
he o
utco
me
will
hav
e a
pote
ntia
lly p
ositi
ve s
ocio
-eco
nom
ic r
esul
t
Land
Tak
e
Reg
iona
l and
Nat
iona
l
KO
MA
TI P
OW
ER
ST
AT
ION
So
cio
-eco
no
mic
Co
nsi
der
atio
ns
Em
ploy
men
t and
Pro
cure
men
t
Env
ironm
enta
l Im
pact
s
LED
and
CS
I
Ser
vice
Del
iver
y
Weighting(1
3)
StatusQuo
Rating:Status
Quo
Option1:
Refurbishment
Rating:
Option1
Option3:Demolish
andRebuild
Rating:Option3
Option4:
Decommission
Rating:
Option4
Poor
Medium
Good
Dire
ct E
mpl
oym
ent
25
104
84
81
25
1015
Pro
cure
men
t3
412
412
515
13
510
15
Air
Em
issi
ons
24
84
84
85
105
1015
Fug
itive
Dus
t 2
48
36
36
36
510
15
Sur
face
Wat
er P
ollu
tion
13
33
33
33
35
1015
Gro
und
Wat
er P
ollu
tion
32
63
93
91
35
1015
Wat
er U
sage
3
26
13
39
515
510
15
CS
I Con
trib
utio
n2
48
48
48
12
510
15
Edu
catio
n an
d T
rain
ing
13
33
33
31
15
1015
Wat
er
33
93
93
92
65
1015
Ele
ctric
ity
33
93
93
92
65
1015
San
itatio
n 2
12
12
12
12
510
15
Was
te R
emov
al
11
11
11
11
15
1015
Coa
l Sou
rcin
g T
ruck
ing
22
42
42
44
85
1015
Env
ironm
enta
l 2
36
36
24
36
510
15
Soc
io-e
cono
mic
33
93
92
63
95
1015
Pow
er S
uppl
y 3
39
39
39
13
510
15
GD
P C
ontr
ibut
ion
33
93
93
91
35
1015
Eco
nom
ic M
ultip
liers
33
93
93
91
35
1015
15
610
1115
Poor
Theoutcomewillhaveanoverallnegativesocioeconomicim
pact.Increasedgrievancesandcommunitydissatisfactioncouldoccur.
Medium
Theoutcomewillresultinmanageablesocioeconomicim
pacts.Somegrievancesmaystilloccur.
Good
Theoutcomewillhaveapotentiallypositivesocioeconomicresult
Land
Tak
e
Reg
iona
l and
Nat
iona
l
CAMDENPOWERSTATION
SocioeconomicConsiderations
Em
ploy
men
t and
Pro
cure
men
t
Env
ironm
enta
l Im
pact
s
LED
and
CS
I
Ser
vice
Del
iver
y
SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 134
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017
SRK Report Distribution Record
Report No. 506503/F1
Copy No. Electronic
Name/Title Company Copy Date Authorised by
Beauty Mazibuko Eskom Electronic 03/02/2017 MAVA
Gina Downes Eskom Electronic 03/02/2017 MAVA
Approval Signature:
This report is protected by copyright vested in SRK (South Africa) (Pty) Ltd. It may not be reproduced
or transmitted in any form or by any means whatsoever to any person without the written permission
of the copyright holder, SRK.
Beauty Mazibuko Eskom Electronic 03/02/2017 MAVA
Gina Downes Eskom Electronic 03/02/2017 MAVA