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Our Preparations for Expansion

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Our Preparations for Expansion Our Specialist Services After decades of expansion to meet the challenges in infrastructural development and population growth, we are ensuring that we are ready for the demands of 2020 and beyond by focusing on infrastructure refurbishment and development. Our Specialist Services Division focuses on expanding the business of Rand Water outside of our core business of bulk water supply. During the year under review, Specialist Services undertook the following projects: • Ghana Urban Water Management Contract Client: Ghana Water Company Limited (GWCL) Budget: US$103million for 5 years Funder: World Bank Project Duration: June 2006 - June 2011 In December 2004, the Government of the Republic of Ghana issued an invitation for a Bids-Management Contract for the provision of services to the urban water sector in that country. This invitation followed a general notice that Ghana had secured USD 103 million from the International Development Association to fi nance the Project. The intent was to apply part of the grant to a Multi-year Management Contract for the provision of services in the urban water sector. For this project which commenced on the 5 June 2006, Rand Water through our then subsidiary Rand Water Services (Pty) Ltd entered into a joint venture agreement with Vitens (Dutch-based company). 47 • Technical Assistance to the Democratic Republic of the Congo Client: Department of Water Affairs Budget: R22 million Funder: African Renaissance Fund Project Duration: 18 Months (from June 2011) Benefi ciary: REGIDESO The Government of South Africa has continued to strengthen its relationship with the Democratic Republic of the Congo. President Jacob Zuma and a business delegation from South Africa visited the Democratic Republic of the Congo (DRC) in June 2011 for the signing of the Binational Co-orperative agreement between the two countries. A key outcome of this agreement is to improve the water service delivery in the DRC. The African Renaissance Fund has allocated a budget of R22 million for this project and the Department of Water Affairs appointed us as the Implementing Agent. The key objectives of the project are specifi cally to increase pumping capacity of the Water Plants (replace old pumps and motors), increase reliability of supply, reduce water losses, increase availability of pumps, improve water quality in the prioritised areas and enhance equipment sustainability. We have prepared a business plan in collaboration with REGIDESO for implementation in the 2011 - 12 fi nancial year. Although most infrastructure expenditure work takes place in the form of augmentation to meet the growth in demand, other projects are initiated because of the need to reduce operations costs, improve treatment processes, enhance plant safety or extend the life of the existing assets. 48 • Rehabilitation of the Gamtoos Project Phase II Client: Department of Water Affairs Budget: R 49 million for 2010 - 11 fi nancial year Project Duration: From October 2006 to 2011 Benefi ciary: Agricultural Community We were appointed as the Professional Service Provider (PSP) to develop a rehabilitation strategy for the Gamtoos Irrigation Scheme (Eastern Cape) in October 2006 by the Department of Water Affairs. Our appointment focused on the assessment of the condition of the irrigation scheme, which was followed by the rehabilitation of the high risk elements of the system. The Gamtoos Main Conveyance system is approximately 65 kilometres long and conveys raw water from the Kouga Dam to Loerie Dam. It was constructed in the 1960s and comprises open canals with a total length of 34,8 kilometres; covered canals; 23 tunnels totalling 11.2 kilometres and 29 siphons totalling 15.7 kilometres. The Loerie Dam acts as a 'balancing' dam at the end of the system. The Valley has a GDP of R700 million per annum and is major source of agricultural products including citrus, vegetables and dairy products. The scope of our work included a detailed condition assessment of the Scheme in terms of the systems elements structural integrity, as well as external environmental factors. We utilised various specialised technologies such as Thermal Imagery and Eddy Current Scanning as part of the condition assessment tools. We conducted risk profi ling on the system elements based on the probability of occurrence and severity of impact. This resulted in ranking and prioritisation of the rehabilitation of the system elements. The project was completed and handed over to the Department of Water Affairs in 2011. The total CAPEX budget for the 3 year project was approximately R223 million. • Condition Assessment and Rehabilitation of the B7 Pipeline Client: Rand Water Budget: R 78.4 million Project Duration: May 2011 to August 2011 The project scope included; design, condition assessment and construction supervision of 25 kilometres of the 46 kilometres length of the B7 pipeline, (the pipeline consists of a 25km pre-stressed concrete section) with the objective of improving the integrity and performance of the pipeline. The B7 pipeline is a 46km steel and pre-stressed concrete pipe. It is made up of a 25 kilometres, 2.1m internal diameter (ID) pre-stressed concrete section laid in 1972 and 1973 between the Daleside reservoir and the Eikenhof pumping station. The steel section of similar diameter was laid between Zuikerbosch and the Daleside Resevoir to complete the 46 kilometres. Project implementation included; • Eddy Current Scanning and inspections to determine the condition of the pipeline. • Supply, launching and welding of pipes, for the 3.58km of slip lining. • Supply and installation of specialised rubber seals, wide joint sealing. • Longitudinal and circumferential crack repairs. • Installation of new air valves and rehabilitation of existing chambers. 49 • Removal and Prevention of Struvite Build in Waste-Water Pipelines Client: Johannesburg Water Budget: R 200,000.00 Project Duration: Will commence in the 2011 - 12 fi nancial year. Johannesburg Water has partnered with Rand Water and a Memorandum of Understanding (MoU) exists with respect to the implementation of new and innovative technologies and solutions in the water and sanitation sector with the objective of improving the current operations of Johannesburg Water. A key and urgent project which has been identifi ed by Johannesburg Water, is the removal and prevention of Magnesium Ammonium Phosphate build-up (struvite) in their wastewater pipelines. The formation of struvite occurs in the Biological Nutrient Removal (BNR) plant at Olifantsvlei Wastewater Treatment Works which is an anaerobic treatment plant. Rand Water has been requested by Johannesburg Water to develop innovative processes for the removal of struvite using chemical treatment with the ultimate objective of implementing it on their existing network on a larger scale. The Specialist Services Division and the Scientifi c Services Division of Rand Water will work in collaboration with Johannesburg Water to design and develop a solution for the removal of struvite from waste-water pipelines. • Investigate Low Water Supply Pressures Client: Joe Gqabi District Municipality Budget: R 6 million Project Duration: May 2011 to November 2011 Rand Water has been appointed by Joe Gqabi District Municipality as an implementing agent to investigate and resolve low water supply pressures in Aliwal North. Our work includes designing a feasibility study, planning and design and implementation of the construction work. The Joe Gqabi (previously Ukhahlamba District Municipality) is the Water Services Authority in the north western region of the Eastern Cape. It has an area of jurisdiction that includes four local municipalities. The District Municipality appointed Rand Water for support in resolving the existing low water supply pressures. During the meeting held in early March 2010, the representatives of the two municipalities explained the background and need for an improved water pressure, possibly via an elevated water tower. A new residential area was also to be developed close to the Municipality's existing Springs Reservoir site which is at nearly the same level as the existing reservoir. Low water pressure was identifi ed as a key challenge on this project, as some households were experiencing periods with no, or low water supply, when the reservoir was at a low level during peak demands. Furthermore, additional housing in the area was also being planned for by the Municipality. An initial budget of R3 million was allocated to appoint Rand Water for the investigation work during 2010 - 2011. After the investigative works, the revised budget for the project has been estimated at R4.5 million. 50 • Supply and Installation of Mag Flow Meters Client: Nelson Mandela Bay Metropolitan Municipality Budget: R 1.1 million Project Duration: August 2010 to November 2010 The scope of our work included the supply and installation of magfl ow meters on two critical lines viz. the Emerald Hill Rising Main (600mm Internal Diameter) and the Airport Rising Main (300mm Internal diameter). The critical aspect of the project was the removal of a section of an existing pipeline and for installing a replacement rig. • Operations and Maintenance of a Pipeline at Sasol in Secunda Client: SASOL Budget: R 336 000.00 Project Duration: February 2011 to January 2012 Rand Water has been involved with the design, construction supervision and operations and maintenance of a water pipeline to the SASOL plant in Secunda. This project ended on 31 January 2011, but has been extended for an additional year. Rand Water’s revised role in the project is to operate and maintain this bulk water pipeline on behalf of Sasol. • Operations of the Grootvlei Raw Water Treatment Plant Client: Eskom Budget: R 10.6 Million Project Duration: September 2010 – August 2013. The Grootvlei Raw Water Treatment Works purify water from the Vaal Dam and pump it to the Grootvlei Power Station by means of a 45 kilometres buried pipeline. This water is treated at the Power Station and is used during its cooling processes. The initial three year contract which included maintenance, was awarded to Rand Water in January 2007.
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