Windsorton/Holpan Regional Bulk Water Supply Scheme

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Windsorton/Holpan Regional Bulk Water Supply Scheme DIKGATLONG MUNICIPALITY Windsorton/Holpan Regional Bulk Water Supply Scheme Implementation Readiness Report October 2014 FINAL DRAFT Document Number 225730YN0/Final Draft01 COMPILED FOR: COMPILED BY: Dikgatlong Municipality WorleyParsons RSA (Pty) Ltd Private Bag X5 Contact person: E Deysel BARKLY WEST 4 Sidney Street Kimberley 8375 PO Box 183, Kimberley, 8301 South Africa Tel No : +27 (0) 53 531 0671 Telephone: +27 (0)53 831 4199 Fax No: +27 (0) 53 531 0624 Facsimile: +27 (0)53 831 4199 email: [email protected] © Copyright 2013 WorleyParsons DIKGATLONG MUNICIPALITY Disclaimer This report has been prepared on behalf of and for the exclusive use of Dikgatlong Municipality, and is subject to and issued in accordance with the agreement between Dikgatlong Municipality and WorleyParsons RSA. WorleyParsons RSA accepts no liability or responsibility whatsoever for it in respect of any use of or reliance upon this report by any third party. Copying this report without the permission of Dikgatlong Municipality and WorleyParsons RSA is not permitted. PROJECT 225730 - IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME WORLEY- CLIENT REV DESCRIPTION ORIG REVIEW PARSONS DATE DATE APPROVAL APPROVAL Issued for internal review E Deysel F van N/A 2014-10-06 N/A Loggerenberg Page i DIKGATLONG MUNICIPALITY IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME EXECUTIVE SUMMARY The primary objective of this report is to illustrate how the proposed upgrading of the Windsorton WTW and the establishment of a bulk water supply line to Holpan meets the prescribed requirements to qualify for RBIG funding. The Dikgatlong Municipality is applying for RBIG funding to co-fund the capital cost associated to the project. The upgrading of the Windsorton WTW and the construction of the bulk water supply pipeline to Holpan is seen as an essential service that the Dikgatlong Municipality has to supply to the two communities. As the current WTW is being operated at full capacity, the risk of not supplying good quality water is increasing daily. The sustainability of the groundwater source supplying Holpan during drought periods is not defined. The project is also in line with the strategic planning documentation including the Reconciliation Strategy and the IDP. The estimated total cost of the project is R 43 850 618.38 (including VAT). The cost per capita, based on the estimated future population of 8 501, is R 5 158.30 per person and the unit cost of the potable water is R 7.00 /kℓ, which compares favourably with industry guidelines. Based on the norms, number of indigents, associated users and enabling economic environment the social component of the project was calculated as 72.94%. The social component of the project is thus calculated as R 31 984 641.05 (including VAT).The social component will be funded through DWAS RBIG programme and counter funded to an amount of R 11 865 977.33 (VAT included) by the Dikgatlong Municipality. An amount of R 16 500 000.00 was approved for the 2015/2016 financial year by DWS and it is expected that the deficit will be funded by DWS in the following financial year. The Municipality will provide the balance of the project funds. The funding agreement will be finalized once DWS has confirmed their contribution to the project through the RBIG program. The proposed activities in the scope of works do not constitute a listed activity in terms of Government Notice No R386 and therefore no environmental authorization is required. The Dikgatlong Municipality is the owner of the property on which the existing and proposed upgraded WTW are located, and there is no land ownership or other legal issues have to be resolved in this regard. Permission has been obtained from the Department of Transport, Roads and Public Works to cross road R347 and construct a rising main pipe line inside the road reserve. P:\D-Tikdata\Projekte\225730yn0 - Holpan Feasibilty Study\Ir Report_2012 Holpan\Irs 2014\1. Report\1. Irs Holpan Complete 2014 09 25.Doc Page i DIKGATLONG MUNICIPALITY IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME The intent of all parties involved with this infrastructure development is to provide a cost effective solution in terms of construction as well as operating costs. As such the technical design proposed is the best suited to deliver quality potable water to the Windsorton and Holpan communities incorporating the client’s operational and maintenance requirements. Following the completion of this study it is proposed that the “Windsorton/Holpan Regional Bulk Supply Scheme” project is approved to be implementation ready and that it qualifies for RBIG funding in terms of DWS requirements. P:\D-Tikdata\Projekte\225730yn0 - Holpan Feasibilty Study\Ir Report_2012 Holpan\Irs 2014\1. Report\1. Irs Holpan Complete 2014 09 25.Doc Page ii DIKGATLONG MUNICIPALITY IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME LIST OF ABBREVIATIONS AADD Average Annual Daily Demand BEE Black Economic Empowerment CoGTA Cooperative Governance and Traditional Affairs DEADP Department of Environmental Affairs and Development Planning Dia Diameter DM District Municipality DWS Department of Water and Sanitation EIA Environmental Impact Assessment EMP Environmental Management Plan GDPR Regional Gross Domestic Product IDP Integrated Development Plan Kℓ Kiloliter LM Local Municipality LOS Level of Service NRW Non-Revenue Water MoA Memorandum of Agreement O&M Operation and Maintenance PSP Private Service Provider RBIG Regional Bulk Infrastructure Grant ROD Record of Decision SANS South African National Standards SMME Small, Medium and Micro Enterprises TSE Treated Sewage Effluent WCDM Water Conservation and Demand Management WULA Water Use License Application WSDP Water Services Development Plan WTW Water treatment works WWTW Waste water treatment works P:\D-Tikdata\Projekte\225730yn0 - Holpan Feasibilty Study\Ir Report_2012 Holpan\Irs 2014\1. Report\1. Irs Holpan Complete 2014 09 25.Doc Page iii DIKGATLONG MUNICIPALITY IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME CONTENTS 1 INTRODUCTION.................................................................................................. 11 1.1 BACKGROUND ................................................................................................... 11 1.2 STUDY AREA ...................................................................................................... 12 1.3 STUDY PURPOSE AND OBJECTIVES .............................................................. 12 2 STRATEGIC AND PLANNING ISSUES ............................................................. 13 2.1 ALIGNMENT WITH IDP AND WSDP .................................................................. 13 2.2 Water supply chain .............................................................................................. 13 2.3 STRATEGIC IMPORTANCE AND DELIVERY TARGETS .................................. 14 2.4 Agreement of parties ............................................................................................ 18 2.5 Level of service .................................................................................................... 18 2.6 Economic growth requirements ........................................................................... 19 2.7 Water scarcity ...................................................................................................... 19 2.8 FUNCTIONAL CRITICALITY OF TOTAL SCHEME AND SPECIFIC COMPONENTS 19 2.9 EXTENT OF COST .............................................................................................. 21 2.10 AVAILABILITY OF CO-FUNDING ....................................................................... 25 3 THE SOCIAL CRITERIA ..................................................................................... 26 3.1 Number of households and people to be uplifted to basic and higher service levels 26 3.2 Number of poor households to be served ............................................................ 39 3.3 Estimated number of jobs to be created .............................................................. 47 3.4 Affordability of the proposed water tariffs ............................................................ 49 3.5 Contribution towards poverty eradication, social upliftment and health............... 53 P:\D-Tikdata\Projekte\225730yn0 - Holpan Feasibilty Study\Ir Report_2012 Holpan\Irs 2014\1. Report\1. Irs Holpan Complete 2014 09 25.Doc Page iv DIKGATLONG MUNICIPALITY IMPLEMENTATION READINESS REPORT - WINDSORTON/HOLPAN REGIONAL BULK WATER SUPPLY SCHEME 3.6 Number of associated services benefiting ........................................................... 56 3.7 Socio-political support for the proposed development ......................................... 58 3.8 Social component................................................................................................. 59 4 ECONOMIC CRITERIA ....................................................................................... 65 4.1 Number of businesses and industries to be served ............................................. 65 4.2 Expected economic value to be generated by new business .............................. 66 4.3 Number of SMMEs and BEE enterprises to benefit from project ........................ 76 4.4 Regional economic benefit from proposed project .............................................. 78 5 TECHNICAL
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