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Implementation Ready Study

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Implementation Ready Study MATZIKAMA MUNICIPALITY IMPLEMENTATION READY STUDY RBIG Report Phase 3: Klawer Bulk Water Infrastructure 262020KD0 June 2012 COMPILED FOR: COMPILED BY: Municipal Manager WorleyParsons RSA (Pty) Ltd Matzikama Municipality Contact person: . Mr HJ Mulder Private Bag 98 31 Allen Drive, Loevenstein 7530 Vredendal PO Box 398, Bellville 7535 8160 South Africa Telephone: +27 (0)21 912 3000 Telephone: +27 (0)27 201 3300 Facsimile: +27 (0)21 912 3222 Facsimile: +27 (0)27 201 2811 email: [email protected] ABN 61 001 279 812 © Copyright 2012 WorleyParsons Incorporating KV3 ENGINEERS MATZIKAMA MUNICIPALITY Disclaimer This report has been prepared on behalf of and for the exclusive use of Matzikama Municipality, and is subject to and issued in accordance with the agreement between Matzikama 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 Matzikama Municipality and WorleyParsons RSA is not permitted. PROJECT 262020KD0 - IMPLEMENTATION READY STUDY WORLEY- CLIENT REV DESCRIPTION ORIG REVIEW PARSONS DATE DATE APPROVAL APPROVAL A Issued for internal review 16-May-12 N/A HJ Mulder JJ Botha JCF Prins B Draft for Approval 8-Jun-12 N/A HJ Mulder JJ Botha JCF Prins p:\waterdept\klawer\262020 kd0 - rbig\g data\rbig reports work files\phase 3 - irs\26202v002rev01.docm (semir)Page i MATZIKAMA MUNICIPALITY IMPLEMENTATION READY STUDY RBIG REPORT PHASE 3: KLAWER BULK WATER INFRASTRUCTURE CONTENTS 1. INTRODUCTION ................................................................................................................ 1 1.1 PURPOSE OF THIS REPORT ........................................................................................... 1 1.2 BACKGROUND .................................................................................................................. 2 1.2.1 LOCALITY .......................................................................................................................... 2 1.2.2 EXISTING BULK WATER SUPPLY ................................................................................... 3 1.2.3 BULK WATER SUPPLY REQUIREMENTS ....................................................................... 4 2. STRATEGIC AND PLANNING ISSUES............................................................................. 4 2.1 ALIGNMENT WITH IDP AND WSDP ................................................................................. 4 2.2 ALIGNMENT WITH PDGDS, WFGD AND TURN AROUND STRATEGY ........................ 5 2.3 ASSOCIATED WATER INFRASTRUCTURE .................................................................... 6 2.4 STRATEGIC IMPORTANCE .............................................................................................. 6 2.5 TECHNICAL OPTION ........................................................................................................ 7 2.6 LEVEL OF SERVICE.......................................................................................................... 8 2.7 ECONOMIC GROWTH REQUIREMENTS ........................................................................ 8 2.8 WATER SCARCITY ........................................................................................................... 8 2.9 PROJECT FUNCTIONALITY ............................................................................................. 9 2.10 CAPITAL AND OPERATING COSTS ................................................................................ 9 2.11 AVAILABLE CO-FUNDING .............................................................................................. 10 3. SOCIAL CRITERIA........................................................................................................... 10 3.1 BASIC SERVICES BACKLOGS ....................................................................................... 10 3.2 POOR HOUSEHOLDS TO BE SERVICED ..................................................................... 11 3.3 JOB CREATION ............................................................................................................... 11 3.4 AFFORDABILITY OF PROPOSED WATER TARIFFS .................................................... 12 3.5 CONTRIBUTION TOWARDS POVERTY ERADICATION............................................... 13 3.6 ASSOCIATED SERVICES ............................................................................................... 14 KLAWER MUNICIPALITY CLINIC ................................................................................................... 14 P:\Waterdept\Klawer\262020 Kd0 - Rbig\G Data\Rbig Reports Work Files\Phase 3 - Irs\26202v002rev01.Docm Page ii 2012-06-07 MATZIKAMA MUNICIPALITY IMPLEMENTATION READY STUDY RBIG REPORT PHASE 3: KLAWER BULK WATER INFRASTRUCTURE 3.7 SOCIO-POLITICAL SUPPORT ........................................................................................ 14 4. ECONOMIC CRITERIA .................................................................................................... 15 4.1 BUSINESS & INDUSTRIES SERVICED.......................................................................... 15 4.2 ECONOMIC STIMULATION AND EFFECT ON GDP ..................................................... 15 4.3 SMME AND BEE ENTERPRISES TO BENEFIT ............................................................. 16 4.4 REGIONAL BENEFIT ....................................................................................................... 16 5. TECHNICAL CRITERIA ................................................................................................... 17 5.1 MASTER PLANNING ....................................................................................................... 17 5.2 APPROPRIATENESS AND ACCEPTABILITY ................................................................ 17 5.3 WATER RESOURCE ....................................................................................................... 17 5.4 WATER DEMAND MANAGEMENT AND CONSERVATION .......................................... 18 5.5 BULK DISTRIBUTION ...................................................................................................... 21 5.6 TECHNOLOGY ................................................................................................................ 21 6. INSTITUTIONAL CRITERIA ............................................................................................. 22 6.1 OWNERSHIP ................................................................................................................... 22 6.2 CAPACITY OF INSTITUTION TO IMPLEMENT .............................................................. 22 6.3 AGREEMENTS ON INFRASTRUCTURE OWNERSHIP ................................................ 23 6.4 AGREEMENT ON IMPLEMENTATION RESPONSIBILITY ............................................ 23 6.5 PROOF OF IMPLEMENTATION CAPACITY .................................................................. 23 6.6 HISTORY OF IMPLEMENTATION CAPACITY ............................................................... 24 6.7 OPERATING RESPONSIBILITY ...................................................................................... 24 6.8 PROOF OF ADEQUATE NUMBERS AND SKILLS LEVELS .......................................... 24 6.9 HISTORY ON WATER SERVICES INTERRUPTIONS ................................................... 25 6.10 COMMITMENT BY INSTITUTIONAL LEADERSHIP ....................................................... 26 6.11 COOPERATION AGREEMENT BETWEEN KEY STAKEHOLDERS ............................. 26 6.12 APPROVAL OF INSTITUTIONAL ARRANGEMENTS .................................................... 27 6.13 COST RECOVERY SYSTEM .......................................................................................... 27 6.14 WATER CONSERVATION AND DEMAND MANAGEMENT PERFORMANCE BY INSTITUTION .................................................................................................................................. 28 P:\Waterdept\Klawer\262020 Kd0 - Rbig\G Data\Rbig Reports Work Files\Phase 3 - Irs\26202v002rev01.Docm Page iii 2012-06-07 MATZIKAMA MUNICIPALITY IMPLEMENTATION READY STUDY RBIG REPORT PHASE 3: KLAWER BULK WATER INFRASTRUCTURE 6.15 RESPONSIBILITY AND ACCOUNTABILITY ................................................................... 29 7. FINANCIAL CRITERIA ..................................................................................................... 29 7.1 AVAILABLE FUNDING ..................................................................................................... 29 7.2 FUNDING CONDITIONS ................................................................................................. 30 7.3 FINANCIAL ANALYSIS OF PROJECTED CASH FLOWS .............................................. 30 7.4 AFFORDABILITY ............................................................................................................. 31 7.5 PROPOSED WATER TARIFFS ....................................................................................... 31 7.6 FINANCIAL VIABILITY ..................................................................................................... 32 7.7 FINANCIAL STATUS AND CREDIT WORTHINESS ....................................................... 32 8. LEGAL CRITERIA ............................................................................................................ 33 8.1 WATER USE LICENSE ...................................................................................................
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