INFRASTRUCTURE READINESS STUDY
EHLANZENI DISTRICT MUNICIPALITY
Project No. : EDM / 04 / 2011-12
Project Name : Driekoppies Regional Bulk Water Supply Scheme
Date : April 2015
Prepared By: Prepared For: Lubisi Consulting Engineers Ehlanzeni District Municipality 20 Branders Street 8 van Niekerk Street P O Box 12393 PO Box 3333 Nelspruit Nelspruit 1200 1200
Tel: 013 752 6416 Tel: 013 759 8500 Fax: 013 752 6418 Fax: 013 755 8539 E-mail: [email protected] Contact: Mr C T Pagiwa Contact: Mr P Du Toit
DRIEKOPPIES BULK WATER SUPPLY SCHEME AND FUTURE EXTENSIONS NKOMAZI LOCAL MUNICIPALITY
INFRASTRUCTURE READINESS STUDY
Approval
Driekoppies Bulk Water Supply Scheme And Future Extensions - Infrastructure Title Readiness Study
EDM Report No.
Consultant Lubisi Consulting Engineers
Report Status Revision 1
Date April 2015
Study Team - Lubisi Consulting
...... Mr C T Pagiwa Pr Eng Mr SP Tshuma Director Engineer Project Manager Study Leader
Ehlanzeni District Municipality Team
...... Adv M Mbatha Mr P Du Toit Municipal Manager Deputy Manager Water & Sanitation Ehlanzeni District Municipality Ehlanzeni District Municipality
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Executive Summary
Driekoppies Bulk Water Scheme serves several villages of Nkomazi Local Municipality. The scheme is located in the South-East of the Ehlanzeni District Municipality (EDM). The supply area is predominantly rural with yard stand pipes and ventilation improved pit (VIP) toilets. Current and projected population of the study area is as presented below:
Table 1: Executive Summary: Population Projection
2014 2017 2022 2027 2032 2037 Settlement Name Pop Pop Pop Pop Pop Pop Driekoppies 34 278 35 843 38 613 41 598 44 812 48 276 Middelplaas 4 415 4 617 4 973 5 358 5 772 6 218 Schulzendal 4 122 4 310 4 643 5 002 5 389 5 805 Langeloop 24 588 25 711 27 698 29 838 32 144 34 628 Aniva 779 815 878 945 1 019 1 097 Boschfontein 11 254 11 768 12 677 13 657 14 713 15 850 Skoonplaas 3 528 3 689 3 974 4 282 4 613 4 969 Jeppe's Rust 11 575 12 103 13 039 14 046 15 132 16 301 Magogeni 1 697 1 774 1 912 2 059 2 218 2 390 Buffelspruit 13 468 14 083 15 172 16 344 17 607 18 968 Schoemansdal North 2 704 2 827 3 046 3 281 3 535 3 808 Schoemansdal C 12 770 13 353 14 385 15 497 16 695 17 985 Schoemansdal 15 395 16 098 17 342 18 682 20 126 21 681 Jeppe's Reef 27 997 29 276 31 538 33 976 36 602 39 430 Total 168 568 176 268 189 890 204 566 220 375 237 407
From the inception and scoping studies, indications are that the water demand in the study area has exceeded supply and existing system capacity. The study area receives raw water from the Driekoppies Dam and the Lomati River. The calculated summer peak demand for 2017 is 34Ml/d and projected demand for 2037 is 45Ml/d. Existing Water Treatment Works (WTW) capacity is 20Ml/d, which is less than the current calculated demand. It has been noted that current operation capacity of the Driekoppies WTW is about 27Ml/d which is beyond the plant's design capacity.
There is a need to increase water supply into the Driekoppies scheme so as to meet the demand and to stop water rationing which is currently being implemented. Nkomazi Local Municipality is authorised to draw 9,646,240m3/a from the Driekoppies Dam. This abstraction volume is a total of adding up licenses from the areas covered by the Driekoppies Bulk Water Scheme. Nkomazi LM will have to apply for one license for the Driekoppies Bulk Water Scheme which will combine all available licences to allow for more allocations as demand increases with time. Below is a summary of the projected water demand for the twenty year study period:
Table 2: Executive Summary: Demand Projection
Year Population AADD – Ml/d GAADD – Ml/d SPD – Ml/d 2017 176 259 17.91 22.66 33.99 2037 237 396 23.80 30.11 45.17
There is no one license that allows for the abstraction of the required volume from the Lomati River however by combining the licenses for the different schemes, 9 646 240m3/a will be available for this development. This translates to 26.43Ml/d, when compared with the 2017 GAADD (22.66Ml/d) and the
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2037 GAADD (30.11Ml/d) shows that the above licenses will be adequate till sometime around 2027 when more allocations will have to be made available to the scheme. However, there will be a need for Nkomazi Local Municipality to apply for one license which will be able to be used to meet the full scheme demand. LCE is to assist Nkomazi Local Municipality with the application for combining the available licenses into one.
Below is the phasing for the proposed works:
Table 3: Executive Summary: Project Phasing
Phase Description 1 Upgrade of WTW to 30Ml/d Capacity 2 Upgrade of Reservoirs 3 Upgrade of Pipelines and Pump Stations 4 Upgrade of the WTW to 40Ml/d Capacity
The preliminary designs were prepared encompassing the regional scheme concept and viability. This report covers the implementation readiness state of the project. Upgrading of the bulk water supply infrastructure consisting of Driekoppies Water Treatment Works, bulk pipelines, pump-stations and storage reservoirs will be implemented in phases as presented above, over the 20 year period aligned to the projected demand patterns. The estimated cost for the entire project is R311, 581,500.68 (VAT Inclusive).
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Below is the “Implementation Readiness Study Check List” referenced for this report: ITEM CRITERIA REF 1 STRATEGIC & PLANNING ISSUES 1.1 In line with Water Service Development Plan and Integrated Development Plan? 1.1 1.2 In line with Provincial Growth & Development Strategy? 1.2 1.3 Are other parts of the water/sanitation supply chain in place 1.3 1.4 Strategic importance, delivery targets 1.4 1.5 Do all parties agree to the need and technical proposal 1.5 1.6 Level of service 1.6 1.7 Economic growth requirements 1.7 1.8 Water scarcity, etc. 1.8 1.9 Functional criticality of total scheme & specific components 1.9 1.10 Extent of cost 1.10 1.11 Available co-funding 1.11 2 SOCIAL CRITERIA 2.1 Number of households & people to be uplifted to basic & higher service levels 2.1 2.2 Number of poor households to be served & the social cost (capital & operation) 2.2 2.3 Number of jobs to be created (temporary & permanent, by gender & age category) 2.3 2.4 Affordability of proposed water tariffs ( per service level & community) 2.4 2.5 Contribution towards poverty eradication, social upliftment & health improvement 2.5 2.6 Number of associated services benefiting (e.g. schools, clinics, communal facilities) 2.6 Socio-political support for the proposed development options (per development 2.7 2.7 option) 3 ECONOMIC CRITERIA Number of current businesses & industries to be served(by type & water use 3.1 3.1 category) Expected economic value to be generated by the new businesses(GDP before & 3.2 3.2 after) as result of the project Number of SMMEs & BEE enterprises to benefit (by type & monetary value/benefit) 3.3 3.3 during project & as an indirect result of the project Regional economic benefit from the proposed water users and their value chain 3.4 integrated development objectives (socio-economic benefits, provincial growth & 3.4 development objectives, IDPs & associated sector programmes like housing) 4 TECHNICAL CRITERIA 4.1 Is the project part of a Master Plan proposal 4.1 4.2 Appropriateness and acceptability of solution 4.2 Appropriate water resource choice & adequate water allocation (confirmed/approved 4.3 4.3 by DWS, WRM re choice, water license – volume, assurance & quality) Compliance to water demand / water conservation objectives (acceptable water 4.4 losses and appropriate plans to reduce/control water demand). Is a WDM/WC 4.4 strategy/Plan in place? Optimal choice of bulk distribution networks (pipeline routes, pump stations and bulk 4.5 storage) Considering full life-cycle cost(capital, financing, operating & maintenance 4.5 cost) 4.6 Proof of best suited technology (pro’s and con’s per option) 4.6
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5 INSTITUTIONAL CRITERIA 5.1 Indicate who will own the infrastructure 5.1 5.2 Confidence in the capacity of the institution to implement 5.2 5.3 Agreements on the infrastructure ownership (per scheme component) 5.3 5.4 Agreement on implementation responsibility (per scheme component) 5.4 5.5 Proof implementation capacity (e.g. capital expenditure over last 3years) 5.5 5.6 History on past implementation quality & performance (e.g. functionality audits) 5.6 5.7 Agreement on operating responsibilities (per scheme component) 5.7 5.8 Proof adequate staff numbers & skills levels (per scheme component) 5.8 5.9 History on water services interruptions (annual interruptions in household-days) 5.9 5.10 Commitments of above Institutional leadership (e.g. Municipal Mayor and Council 5.10 5.11 Cooperation agreements between key Stakeholders 5.11 5.12 Approval of Institutional arrangements 5.12 5.13 Cost recovery system (including policy on free basic water and non-payment) 5.13 5.14 Water Conservation and Demand performance by institution 5.14 5.15 Responsibilities and Accountability 5.15 6 FINANCIAL CRITERIA 6.1 Available funding (grant, loan & investment) 6.1 6.2 Funding conditions (repayment period, interest) 6.2 6.3 Financial analysis of cost projections (cash flows) 6.3 6.4 Financial modelling of projected income taking into account affordability 6.4 6.5 Proposed tariff adjustments to reconcile cost and projected income 6.5 6.6 Financial viability and expected return on investment over expected useful life 6.6 Financial status, performance and creditworthiness of municipality and implementing 6.7 6.7 agents 7 LEGAL CRITERIA 7.1 Has a water license with adequate allocation for all uses been approved 7.1 Has an environment authorization been granted for the construction of the scheme 7.2 (based on accepted environmental impact assessment and public participation 7.2 process) Have all land and property rights issues been addressed (land acquisition and 7.3 7.3 servitudes) 8 SUSTAINABILITY CRITERIA: 8.1 Financial viability 8.1 8.2 Operating and management capacity, performance & commitment 8.2 8.3 Environmental and social acceptability and impact 8.3
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Contents Overview...... viii 1 STRATEGIC & PLANNING ISSUES ...... 1 1.1 BASIC PLANNING TECHNICAL / PRELIMINARY DESIGN REPORTS ...... 1 1.2 ALIGNMENT TO GROWTH AND DEVELOPMENT STRATEGIES ...... 1 1.3 EXISTENCE OF OTHER WATER / SANITATION COMPONENTS ...... 1 1.3.1 SANITATION IN PLACE ...... 2 1.3.2 EXISTING WATER TREATMENT WORKS ...... 2 1.3.3 EXISTING BULK WATER PIPELINES ...... 2 1.3.4 EXISTING GROUND LEVEL WATER STORAGE RESERVOIRS ...... 3 1.3.5 OTHER WATER SOURCES ...... 3 1.4 STRATEGIC IMPORTANCE AND DELIVERY TARGETS ...... 3 1.4.1 DELIVERY TARGETS ...... 4 1.5 STAKE HOLDER PARTICIPATION AND BUY IN ...... 4 1.6 LEVEL OF SERVICE ...... 4 1.7 ECONOMIC GROWTH REQUIREMENTS ...... 4 1.8 WATER SCARCITY ...... 5 1.9 FUNCTIONAL CRITICALITY OF SCHEME & SPECIFIC COMPONENTS ...... 5 1.10 EXTENT OF COSTS ...... 5 1.11 Co-Funding ...... 6 2 SOCIAL CRITERIA ...... 7 2.1 Number of Households and People to be Uplifted to Basic and Higher Service Levels ...... 7 2.2 Number of Poor Households to be Served & the Social Cost (Capital and Operation) ...... 7 2.3 Number of Jobs to Be Created ...... 8 2.4 Affordability of Proposed Water Tariffs ...... 9 2.5 Contribution towards Poverty Eradication, Social Upliftment & Health Improvement ...... 9 2.6 Number of Associated Services Benefiting ...... 9 2.7 Socio-Political Support for the Proposed Development Options ...... 9 3 ECONOMIC CRITERIA ...... 9 3.1 Number of Current Businesses & Industries to Be Served...... 9 3.2 Expected Economic Value to be Generated by the New Businesses as a Result of the Project ...... 10 3.3 Regional Economic Benefit from the Proposed Water Users ...... 10 4 TECHNICAL CRITERIA ...... 10 4.1 Master Plan Compatibility ...... 10 4.2 Appropriateness and Acceptability of Solution ...... 11 4.3 Appropriate Water Resource Choice & Adequate Water Allocation ...... 11 4.4 Compliance to Water Demand / Water Conservation Objectives ...... 11 4.5 Optimal Choice of Bulk Distribution Networks ...... 12 4.5.1 Considering Full Life-Cycle Cost ...... 12 4.6 Proof of Best Suited Technology ...... 13 5 INSTITUTIONAL CRITERIA ...... 13 5.1 Ownership ...... 13 5.2 Confidence in the Capacity of the Institution to Implement...... 13 5.3 Agreements on the Infrastructure Ownership ...... 14 5.4 Agreement on Implementation Responsibility ...... 14 5.5 Proof of Implementation Capacity ...... 14 5.6 History on Past Implementation Quality & Performance ...... 14 5.7 Agreement on Operating Responsibilities ...... 14 5.8 Proof Adequate Staff Numbers & Skills Levels ...... 14 5.9 History on Water Services Interruptions ...... 15 5.10 Commitments Of Above Institutional Leadership...... 15 5.11 Cooperation Agreements between Key Stakeholders ...... 15 5.12 Approval of Institutional Arrangements ...... 16 5.13 Cost Recovery System ...... 16 5.14 Water Conservation and Demand Performance by Institution ...... 16 5.15 Responsibilities and Accountability ...... 16 6 FINANCIAL CRITERIA ...... 17 6.1 Available Funding ...... 17 6.2 Funding Conditions ...... 17 6.3 Financial Analysis of Cost Projections...... 17 v | P a g e
6.4 Financial Modelling Of Projected Income Taking Into Account Affordability ...... 18 6.5 Proposed Tariff Adjustments to Reconcile Cost and Projected Income ...... 18 6.6 Financial Viability and expected Return on Investment over Expected Useful Life...... 18 6.7 Financial Status, Performance and Creditworthiness of Municipality and Implementing Agents ...... 18 7 LEGAL CRITERIA ...... 18 7.1 Water Licenses ...... 18 7.2 Environment Authorization ...... 19 7.3 Land and Property Rights ...... 19 8 SUSTAINABILITY CRITERIA: ...... 19 8.1 Financial Viability ...... 19 8.2 Operating and Management Capacity, Performance & Commitment ...... 20 8.3 Environmental and Social Acceptability and Impact ...... 20 9 Appendices ...... 21 9.1 Langeloop Pipeline Considerations ...... 21
List of Tables Table 1: Executive Summary: Population Projection ...... i Table 2: Executive Summary: Demand Projection ...... i Table 3: Executive Summary: Project Phasing ...... ii Table 4: Overview: 2037 Population ...... viii Table 5: Existing Water Treatment Works ...... 2 Table 6: Existing Bulk Water Pipelines ...... 2 Table 7: Existing Ground Level Reservoirs ...... 3 Table 8: Construction Costs ...... 6 Table 9: Annual Households Income - STATS SA 2011 ...... 7 Table 10: Annual Households Income ...... 8 Table 11: Available Water Licenses ...... 19
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LIST OF ACRONYMS
AADD Annual Average Daily Demand BOTT Built-Operate-Train-And–Transfer CEO Chief Executive Officer CMA Catchment Management Agency CMS Catchment Management Strategy CoGTA Cooperative Governance and Traditional Affairs (previously DPLG) DEDET Department of Economic Development, Environment and Tourism DoRA Division of Revenue Act DWS Department of Water and Sanitation (Previously DWA) EPC Engineer – Procure - Construct IRP Integrated Resource Planning IRS Implementation Ready Studies IWRP Integrated Water Resource Planning IWRM Integrated Water Resource Management Kl/month Kilolitres per Month Mm3/a Million Cubic Metres per Annum NT National Treasury NWA National Water Act NWRS National Water Resource Strategy O and M Operation and Maintenance PPP Private Public Partnerships RBIG Regional Bulk Infrastructure Grant MIS Management Information System SALGA South African Local Government Association SWOT Strengths Weaknesses Opportunities and Threats WC Water Conservation WDM Water Demand Management WSA Water Services Authorities WSDP Water Services Development Plans WSI Water Services Institutions
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Overview
Lubisi Consulting Engineers were appointed by Ehlanzeni District Municipality in 2011 to carry out feasibility studies for the Driekoppies Bulk Water Supply Scheme and future extensions in an effort to centralise water treatment works and upgrade the existing infrastructure to meet the regional demand. A 20 year horizon spanning from the year 2017 to 2037 covers the study period.
Two challenges experienced at the Driekoppies water supply area are: Water rationing due to high demand for potable water Compromised water quality due to chlorinated raw water being fed into reticulation
Hence drivers for this project are: Access to basic services and Water services quality.
From enquiries, it was noted that this is partly due to ageing infrastructure which is failing to cope with growing water demand. The water quality problems are due to raw water being fed into reticulation. Water is pumped from the Lomati River into the Schoemansdal reservoir where it mixes with clear water from Driekoppies WTW. Some more raw water is pumped into reticulation from the Buffelspruit raw water pump station. The raw water from Buffelspruit pump station is chlorinated by use of an in- line gas chlorinator before being channelled into Buffelspruit for reticulation.
Ehlanzeni District Municipality acts as the implementing agent for Nkomazi Local Municipality for the proposed Driekoppies Regional Water Supply Scheme. Nkomazi Local Municipality is located in the South Eastern end of Ehlanzeni District Municipality within Mpumalanga Province. Of the 33 wards in Nkomazi Local Municipality, the study area covers only eleven of these wards: Ward 18, 22-29 and 31 to 33. Fourteen villages shown in the table below constitute the study area with a total projected population of 237 396 by the year 2037.
Table 4: Overview: 2037 Population
Village Name Population in 2037 Driekoppies 48 276 Middelplaas 6 218 Schulzendal 5 805 Langeloop 34 628 Aniva 1 097 Boschfontein 15 850 Skoonplaas 4 969 Jeppe's Rust 16 301 Magogeni 2 390 Buffelspruit 18 968 Schoemansdal North 3 808 Schoemansdal C 17 985 Schoemansdal 21 681 Jeppe's Reef 39 430 Total 237 396
According to STATS SA 2011 census results, the population for Nkomazi is indicated to be growing at 1.61% per annum. A 1.5% growth rate was adopted at PDR stage and has been maintained for this report. Gross average annual daily water demand for the study area has been projected to 30.11Ml/d by 2037. Driekoppies Water Treatment Works has a capacity of 20Ml/d and is supported by smaller mainly packaged plants with a combined capacity of approximately 3Ml/d.
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The existing bulk water supply system comprises of a single water treatment plant, a package plant and two pumping stations, each feeding into different villages via bulk water pipelines and storage reservoirs depending on the location. Details of the existing infrastructure are contained in the PDR document. The proposal is to centralise the water treatment works at Driekoppies WTW and retain the smaller schemes as stand by facilities. The project will include the upgrading of bulk water supply pipelines, storage reservoirs and pump stations to the 14 villages to meet the demand. It is viewed that this exercise will allow for a more efficient and economic water treatment and distribution to the community. This will also be in line with the Municipality’s goal of improving access to quality, sustainable and reliable water service to the community severely challenged by the decreasing blue drop score assessed at a low 17.2% in 2012.
The Driekoppies Dam will be the source of water for the proposed scheme. The existing Driekoppies WTW will be upgraded in two phases of 10Ml/d each to meet the growing demand. Upgrading of the existing high lift pump stations will be required to handle the increased outflow from the treatment plant. Bulk water pipelines have been re-sized including the storage reservoirs and phasing indicated for the timing for each facility upgrade. Details are contained in the PDR document issued.
The cost of the works including professional fees and VAT is estimated at R 311 581 500.68. Relevant data and information from various sources including the EDM IDP 2013/14, Nkomazi LM WSDP 2009/10, Nkomazi LM WSDP 2011/12; DWS Reference Framework 2006, STATS SA information, Ehlanzeni DM data & GIS maps have been utilised during the development of this IRS report.
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1 STRATEGIC & PLANNING ISSUES
1.1 BASIC PLANNING TECHNICAL / PRELIMINARY DESIGN REPORTS
The Driekoppies Regional Bulk Water Supply Scheme forms part of the overall Nkomazi Local Municipality Bulk Water supply program which encompasses various other schemes for the provision of bulk water to settlements within the Municipality. Lubisi Consulting Engineers, in their Basic Planning (October 2011) and Preliminary Design (April 2012 and March 2015) reports, reviewed, designed and provided recommendations for the regional scheme in line with the Ehlanzeni District IDP 2009-10 and 2011-12 and Nkomazi Local Municipality WSDP 2009-10 and 2012-13 water related objectives. It is intended to centralise the water abstraction at Driekoppies Dam and treatment at Driekoppies WTW and retain the smaller treatment plants located at various points along the Lomati River as stand by facilities. This is to achieve an efficient and economic bulk water supply system.
1.2 ALIGNMENT TO GROWTH AND DEVELOPMENT STRATEGIES
The project is in line with the District and Local Municipalities IDP’s and WSDP’s objectives of improving the access to basic services in Nkomazi in general whilst creating an enabling environment for investors through the provision of adequate, reliable and safe water in the region. This could stimulate economic growth and lead to job creation forming part of the Provincial and National Developmental objectives. As part of the United Nations Millennium Development Goals, the project will contribute towards the implementation of the key priority policies which include among others:
Women and gender equity; Empowerment of youth and people with disabilities; HIV / AIDS; Broad-Based Black Economic Empowerment (B-BBEE); Employment Equity and Transformation; Skills development; and Good Governance.
In particular the project will seek to reduce the current backlog of households without access to water and improving the availability of the resource for those areas accessing it.
1.3 EXISTENCE OF OTHER WATER / SANITATION COMPONENTS
The main objective of the project is to establish regional bulk water supply scheme in the Driekoppies area which would ultimately ensure sustainable and reliable water supply for the communities which fall within the Driekoppies Bulk Water Scheme area until the year 2037. The advantage of implementing the recommendations would be the consolidation of water supply sources and the treatment of the water which would ensure that Class 0 water in accordance with the specifications of SANS 241, is supplied.
There are two water treatment facilities in the project area. The Driekoppies WTW 20Ml/d which supplies potable water to the communities within the supply zone. The Langeloop Package Plant with a capacity of 1.8Ml/d and supplies the Langeloop community with potable water
The bulk infrastructure for the project area includes: The Driekoppies Dam, The Driekoppies WTW, Service reservoirs at localities in the demand areas, Dedicated clear water pump stations that supply the various reservoirs, Bulk supply lines, and Reticulation. network
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1.3.1 SANITATION IN PLACE
All villages covered in the study area are classified rural and do not have a fully-fledged water borne sanitation system mainly due to the current inadequate water supply. The Nkomazi Local Municipality has embarked on an on-going sanitation program involving provision of VIP toilets to all settlements with a view of eradicating the backlogs by 2016.
1.3.2 EXISTING WATER TREATMENT WORKS
Table 5: Existing Water Treatment Works
Design WTW Location Village Supplied Capacity (Ml/d) Driekoppies, Boschfontein, Skoonplaas, Magogeni, Driekoppies Jeppe’s Rust Schulzendal, Middelplaas, 20.00 Schoemansdal, Jeppe’s Reef & Buffelspruit Langeloop Langeloop 1.80
Buffelspruit Off-River Buffelspruit 2.00
Schoemansdal Off-River Schoemansdal 1.00
Shongwe Hospital Shongwe Hospital 1.00
Total 25.80
1.3.3 EXISTING BULK WATER PIPELINES
Table 6: Existing Bulk Water Pipelines
From To Reservoir/s Supplied Pipe size Type (mm)/class Driekoppies Dam Driekoppies WTW Driekoppies WTW 900 Steel
Driekoppies WTW Driekoppies Reservoir Driekoppies 450 GRP
Driekoppies Booster Boschfontein Booster Aniva, Boschfontein, 350 GRP Station Station Skoonplaas Boschfontein Booster Magogeni Magogeni 200/12 uPVC Station Driekoppies Reservoir Middelplaas Booster Middelplaas Booster 350 GRP Station Driekoppies WTW Middelplaas Reservoir Middelplaas 200/12 uPVC Middelplaas reservoir Middelplaas Booster Middelplaas Booster 160/9 uPVC Station Station Middelplaas Booster Schulzendal Schulzendal 160/16 uPVC Station Driekoppies WTW Shongwe Reservoir Shongwe 350 GRP Rising Main Off-take Schoemansdal North Schoemansdal North 200/9 uPVC Reservoir Reservoir Shongwe Reservoir Shongwe Hospital Shongwe Hospital 160/9 uPVC Reservoir
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1.3.4 EXISTING GROUND LEVEL WATER STORAGE RESERVOIRS
Table 7: Existing Ground Level Reservoirs
Reservoir Available Reservoir Village(S) Supplied Capacity Reservoir Type Location (ML) Capacity (ML) Boschfontein Aniva, Boschfontein, Skoonplaas 6.50 6.50 RC Driekoppies Driekoppies 5.00 3.00 RC Jeppe’s Reef Jeppe’s Reef 4.20 3.70 RC Magogeni Jeppe’s Rust, Magogeni 3.00 3.00 RC Langeloop Langeloop 1.65 1.65 RC Middelplaas Middelplaas 2.50 2.00 Shongwe Hospital Back-up, Schoemansdal C 4.00 4.00 RC Schoemansdal, Schoemansdal C Schoemansdal C Buffelspruit, Schoemansdal North 1.20 1.20 RC Schulzendal Schulzendal 2.50 2.50 RC Shongwe Hospital 1.80 1.80 RC Hospital Buffelspruit Buffelspruit 1.00 1.00 RC
1.3.5 OTHER WATER SOURCES
As shown in the tables above and indicated in section 1.1 of this report, there are other smaller off-river pumping stations on the Lomati River feeding into the system. The proposal is to decommission these when they attain their useful lifespan except for the Shongwe Hospital WTW which is deemed strategic for emergency purposes and the Buffelspruit Package Plant which is currently under construction.
1.4 STRATEGIC IMPORTANCE AND DELIVERY TARGETS
Main drivers of this project are: Access to basic services and Water services quality. Detailed and in depth discussion of these drivers was presented in the PDR report under section 1.6
The project forms part of the Municipality’s IDP and WSDP objectives to create an enabling environment for local as well as international investors by providing reliable water supply, thus contributing to economic growth and job creation. These objectives are also in line with the Provincial Growth and Development Strategy, the National Development Plan and the United Nations Millennium Development Goals to ensure the implementation of the Key Priority Policies of:
Women and gender equity; Empowerment of youth and people with disabilities; HIV/AIDS; Broad-Based Black Economic Empowerment (B-BBEE); Employment Equity and Transformation; Skills development; and Good Governance
The project particularly addresses equitable access to safe drinking water.
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1.4.1 DELIVERY TARGETS
The target for this project will be to ensure that all consumers receive at least the basic level of service. This will include providing adequate water treatment, distribution and storage facilities within the supply area. Water rationing is practiced in almost the entire supply area hence the need to upgrade the infrastructure so as to eradicate water rationing. The provision of adequate water treatment capacity will ensure adequate potable water supply which will in turn stop pumping of raw water into the water supply system.
1.5 STAKE HOLDER PARTICIPATION AND BUY IN
Consultations with the key stakeholders namely Nkomazi LM and DWS formed part of the basic planning processes. Meetings were held to discuss and assess the proposals tabled and approval obtained at the different stages. In view of the various sometimes conflicting source documents, agreement on information to use for design purposes was agreed by engaging the key stakeholders. DWS was consulted and meetings held to discuss and agree on the parameters to use particularly:
Population figures to use – agreed to use GIS 2007 figures with a 1.5% annual growth rate for projections.
Through Nkomazi Local Municipality the local community was appraised of the intentions and permission to utilise tribal land in specific cases like new reservoir sites obtained. The Nkomazi LM Technical Director was taken to all sites where proposed works were to be developed. This was also utilised as an opportunity to engage with the local leadership for land use approval ahead of the planned implementation.
It can be concluded that all stakeholders agree with the technical proposal as submitted. Verbal approvals were given; written approvals and / or council resolutions will be presented as soon as they are made available.
1.6 LEVEL OF SERVICE
The project seeks to provide three levels of service in-line with income levels. The lowest being the social water (80l/c/d), followed by 120l/c/d and finally 150l/c/d. This will be supported by the municipality’s plan to implement billing of water services. The municipality is currently conducting consultations on the implementation of cost recovery system in the rural areas of the Nkomazi Municipality where the study area falls.
1.7 ECONOMIC GROWTH REQUIREMENTS
The study area is in rural residential settlements where there is very little or no industrial activity to impact on economic growth. However the villages under study constitute approximately 30% of the whole of Nkomazi’s population. It is evident that economic activity is very limited in the study area and can be attributed to investor unwillingness to operate in areas where there is water rationing despite the favourable population present. The villages have therefore remained “dormitories” mainly for the sugar cane industry that thrives in Nkomazi. It can therefore be safely assumed that with a reliable and adequate water supply that this scheme will provide, investors especially those taping into the sugar industry will find it worthwhile to extend economic activity in the settlements resulting in a definite economic growth for the area.
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1.8 WATER SCARCITY
The Nkomazi LM currently has licenses for 9,646,240 m3/a however this is a sum of several licenses for different schemes lying within the Driekoppies Bulk Water Supply scheme. This allocation can be used for the proposed development since the proposed scheme covers all areas serviced by the small schemes as well. However, there will be a need to apply for a license for the bulk scheme which combines all the individual licences. The allocation of 9,646,240 m3/a translates to 26.43Ml/d. This will be adequate till around 2027 when more allocations will have to be secured in order to meet the water demand.
1.9 FUNCTIONAL CRITICALITY OF SCHEME & SPECIFIC COMPONENTS
Water demand has already surpassed the available water from the water treatment works hence the need to upgrade the water treatment plant to stop the current overloading that may be impacting negatively on water quality. To further support the drop in the water quality, the blue drop score for Nkomazi LM has been decreasing over the years and was rated 17.2% in 2012 against targets of 95%. The entire bulk water supply infrastructure is in need of upgrade since its capacity is less than what is recommended.
To allow for sustainable and economic operation and maintenance of the bulk supply infrastructure, the following will be incorporated during the design phase:
Duty and stand by pumps All pumping stations will be equipped with at least a duty and a stand by pump. This will ensure continuous water supply even during breakdown of one of the pumping units.
Bulk Metering Bulk meters will be installed for measuring and monitoring of water distribution. With supply to some of the villages like going through several village reservoirs, there will be a need for monitoring of water distribution so as to allow for equitable distribution of potable water.
48hr Reservoir Storage 48hr storage reservoirs will be established within communities to allow for stabilisation of water supply even during maintenance periods.
Use of uPVC Pipes only PVC pipes will be specified for all pipe upgrades because of their desirable characteristics which include ease of availability, durability and other desirable characteristics discussed at PDR stage.
1.10 EXTENT OF COSTS
The tables below show the estimated implementation costs. Costs below include Professional fees, contingences and VAT:
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Table 8: Construction Costs
Cost Estimate Item Description Size Rate (R) 1 Preliminary and General 29 462 857.26
2 Reservoirs – Concrete Tank.
2.1 Mhloshana 1.0 1 800 000.00 1 800 000.00 2.2 Skoonplaas 1.0 1 800 000.00 1 800 000.00 2.3 Driekoppies 5.0 1 800 000.00 9 000 000.00 2.4 Jeppe’s Reef 2.0 1 800 000.00 3 600 000.00 2.5 Langeloop 3.5 1 800 000.00 6 300 000.00 2.6 Shongwe 5.0 1 800 000.00 9 000 000.00 2.7 Buffelspruit 2.0 1 800 000.00 3 600 000.00 2.8 Repair of Driekoppies Reservoir Sum 720 000.00 720 000.00 3 Pipelines
Cost Includes Supply and Installation
3.1 560mm mPVC including fittings 7 512 1 973.33 14 823 654.96 3.2 500mm mPVC including fittings 6 600 1 566.13 10 336 458.00 3.3 450mm mPVC including fittings 5 560 1 409.52 7 836 931.20 3.4 350mm uPVC including Fittings 4 954 831.25 4 118 012.50 3.5 315mm uPVC including Fittings 4 750 748.13 3 553 617.50 3.6 160mm uPVC including fittings 8 760 380.00 3 328 800.00 3.7 125mm uPVC including fittings 8 500 296.88 2 523 437.50 3.8 Miscellaneous @ 15% sum 6 978 136.75
4 Driekoppies WTW Upgrade 24 3 400 000.00 81 600 000.00 5 Pump station upgrades Sum 18 000 000.00
6 E lectrical Sum 7 500 000.00
Sub -Total 225 881 905.67
7 Contingencies (10%) 22 588 190.57
Sub-Total Construction Cost 248 470 096.24
8 Basic Professional Fee @ 10% 24 847 009.62
Total Estimated Cost (excluding VAT) 273 317 105.86
9 VAT (14%) 38 264 394.82
Total Estimated Cost (including VAT) 311 581 500.68
1.11 Co-Funding
RBIG covers costs of the social component of the proposed development which is:
80 l/c/d for all indigent consumers 25 l/c/d for all non-indigent consumers Water supply for all institutions community halls, police stations, clinics etc.
It has been estimated that 67% of the proposed development will be for the provision of social water with the balance of 33% being economic component of the scheme. RBIG will therefore fund 67% of the total cost of the project and the balance has to be sourced.
No. Source of Funds Percentage / % Amount / R 1 RBIG 67 208,759,605.50 2 Nkomazi LM 33 102,821,895.20
Co-funding amounting to R102, 821,895.20 will have to be sourced to cover for the economic water proposed in this development. Resolutions on the availability of the co- funding are still to be deliberated upon through Nkomazi LM Council.
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By implementing the proposed developments, the local municipality will be able to provide water services to all consumers. This, coupled with the Municipality’s plan to implement cost recovery measures within the rural areas, will allow the municipality to collect revenue which will allow for the sustainable operation and maintenance of the bulk water infrastructure. Existing infrastructure is no longer adequate to meet the water demand hence the increase in illegal connections leading to financial losses by the municipality. There will be a need to find means to co-fund the project should the Municipality fail to do so, so as to allow for sustainable water supply to areas covered by the Driekoppies bulk water scheme.
2 SOCIAL CRITERIA
2.1 Number of Households and People to be Uplifted to Basic and Higher Service Levels
The scheme is expected to serve a total of 176,259 people by 2017 and 237,396 by 2037; these numbers include both the indigent and non-indigent consumers. Assuming household density of 4 individuals; 44,065 households will benefit by 2017 and 59,349 households by 2037.
2.2 Number of Poor Households to be Served & the Social Cost (Capital and Operation)
According to the Municipal Indigent Policy, Indigents are defined as those households who, due to a number of socio-economic factors, are unable to make a full monetary contribution towards services provided by Municipalities.
Criteria for Identification a) Total household income of all occupants must be less than the equitable share which has been allocated to council (subject to annual adjustments by council or other spheres of government) per month; R1,800.00 per month b) The applicant must have an active account with the Municipality; c) The application must own a single property. d) Non-Profit Organisations (NGOs) within the Nkomazi Municipality
Table 9: Annual Households Income - STATS SA 2011
Annual Household Income Monthly Household Income Number Percentage
No income No income 4 115 19% R 1 - R 4800 R 0 - R 160 1 567 7% R 4801 - R 9600 R 161 - R 320 2 479 11% R 9601 - R 19 600 R 321 - R 653 4 710 21% R 19 601 - R 38 200 R 654 - R 3 183 4 253 19% R 38 201 - R 76 400 R 3 184 - R 6 366 2 212 10% R 76 401 - R 153 800 R 6 367 - R 12 816 1 457 7% R 153 801 - R 307 600 R 12 816 - R 25 633 784 4% R 307 601 - R 614 400 R 25 634 - R 51 200 247 1% R 614 001 - R 1 228 800 R 51 167 - R 102 400 64 0% R 1 228 801 - R 2 457 600 R 102 401 - R 204 800 28 0% R 2 457 601 or more R 204 801 or more 31 0% Unspecified Unspecified 4 0% Total 21 951 100%
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Table 10: Annual Households Income
No income R 1 - R 4800 R 4801 - R 9600 R 9601 - R 19 600 R 19 601 - R 38 200 R 38 201 - R 76 400 R 76 401 - R 153 800 R 153 801 - R 307 600 R 307 601 - R 614 400 R 614 001 - R 1 228 800
From the above extract of the Nkomazi LM’s indigent policy, it can be estimated that 14 998 indigent households will benefit from the proposed development. The estimate is based on 2011 STATA SA census.
2.3 Number of Jobs to Be Created
The Langeloop and Buffelspruit Package Plants will serve as standby facilities once the development at the Driekoppies WTW reaches full capacity. There is therefore going to be staff shuffling as the package plants are transferred from being constant supply to standby facilities. Personnel responsible for the package plants will then be transferred to areas where there is a need, like the Driekoppies WTW. Staff development will have to be carried out for the shuffling process to be implemented successfully.
On overall, a balance is expected between job losses and recruitments which at the end will lead to no job losses. More jobs are expected to be created during the project implementation stage:
Temporary (in 6 month Contracts Over Permanent (for Operation and Grade Implementation Period) Maintenance of Installations) Number of Individuals Man-Hours Clerical 8 2 400 1 Labourers 120 36 000 6 Semi-Skilled 12 3 600 4 Skilled 11 3 300 2 Managerial 6 1 800 0 Supervisors 8 2 400 2 Total 230 49 500 15
Jobs created are estimates at this stage based on the various sub projects to be implemented. On completion there will be jobs created to operate the upgraded water treatment works and for the maintenance of the additional pump stations and reservoirs.
Employment is to be carried out equitably between males and females. Semi-skilled labour will be preferred to come from the local communities and this will be specified in procurement documents during the construction stage. After the construction phase, the employment methods will be in line with Nkomazi LM employment guidelines for gender equity. In all cases unemployed youths and the disabled will be given priority including single household leaders.
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2.4 Affordability of Proposed Water Tariffs
The project is providing water to mainly poor rural households and Nkomazi LM currently does not bill any of the villages. Water is provided at no cost to all consumers. However according to the IDP, plans are under way to progressively start billing all consumers for water services. The municipality is currently at the consultation stage with relevant stockholders.
After taking into consideration capital, asset replacement, overhead, production, repair and maintenance costs, it was noted that it will cost the Municipality R15, 80 to produce a kilo litre of water. This assumes 67% of the capital costs are covered by RBIG and co funding is sourced for the balance of the capital costs. Factoring the water equitable share will bring the tariff down to about R6, 20 per Kilo litre. This is the tariff which the municipality has to effect for sustainable operation and maintenance of the scheme.
2.5 Contribution towards Poverty Eradication, Social Upliftment & Health Improvement
A total 230 temporary and 15 permanent jobs created will be the main poverty alleviation contribution of this project. Availability of potable water improves the environment for doing business which potentially leads to investment and upliftment of life in the area. By providing treated water to the entire population, the project will directly contribute to health improvement of the communities.
2.6 Number of Associated Services Benefiting
The table below indicates the number of institutions within the study area that will be benefitting from the upgrade.
Institution/Facility Estimated No. Schools 14 Colleges 1 Clinics 14 Hospitals 1 Police Stations 2 Community Centres (e.g. Thusong centres) 1 Sporting Centres (Stadiums etc.) 0
2.7 Socio-Political Support for the Proposed Development Options
The project has been prioritised by both the District and Local Municipalities as part of their service provision programs. The project was identified for RBIG funding from DWS, an indication that it has support at National Level.
3 ECONOMIC CRITERIA
3.1 Number of Current Businesses & Industries to Be Served
It is the Department of Water Affair’s responsibility to issue licences for non-domestic users. The area under study as indicated in this document is predominantly rural residential with no industries. The main activity in Nkomazi in general is farming with sugar cane farming being the dominating activity. Industries related to this activity falls outside the study area.
Due to the above, the economic value of the project will start being realised once the Local Municipality takes over the provision of water to Industry and businesses and collects revenue from billing. At this stage it is not possible to predict the quantity or nature of new business and industry that will be established as a result of the upgrade.
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3.2 Expected Economic Value to be Generated by the New Businesses as a Result of the Project
There are a number of small business enterprises operating mainly from homesteads. Of note, with notable water use, is the home based car washes and brick making fields. A number of bed and breakfast (B&B) facilities and guest lodges are also present in some of the villages. The table below summarises the main SMME and BEE Enterprises that are in existence and expected to become more viable with a secure and guaranteed water supply.
ENTERPRISE Estimated No. B&B 14 Lodge 3 Car Wash 30 Brick Moulding 10 Other home based industries 5
Being home based and mainly informal, it is not possible to indicate the monetary benefit that each type of business is likely to derive from the project. However, during the construction period, these informal industries and businesses are likely to experience increased volumes as contractors will use their services and products. After the construction phase, the businesses will benefit from the more reliable and secure water supply.
3.3 Regional Economic Benefit from the Proposed Water Users
It has been pointed out in this report that the villages under study are located strategically to support the sugar cane industry in Nkomazi. It is therefore anticipated, that with a guaranteed water supply, economic activity linked to the sugar industry will be stimulated. This will in turn feed into the national GDP.
According to the proposals in the PDR, there will be capacity for other users besides the households primarily targeted after the upgrading of the Water Treatment Works to 40Ml/d. Reservoirs are strategically located at high levels to enable reticulation to all areas in specific villages without the need of costly pumps. There are still vacant areas available which could be utilised to expand the housing programs in line with provincial and national objectives.
4 TECHNICAL CRITERIA 4.1 Master Plan Compatibility
Driekoppies Regional Bulk Water Supply Scheme feeds into the overall Nkomazi LM Bulk Water Supply Regional Schemes centred on four main sites namely
1. Driekoppies Water Treatment Works Driekoppies Dam Lomati River 2. Masibekela Water Treatment Works Masibekela Weir Komati River 3. Tonga Water Treatment Works Komati River Weir Komati River 4. Nyathi Water Treatment Works Komati River Weir Komati River
The schemes will be operating independently and supply specific zones that they supply based on the feasibility and economic analysis carried out for each region. The aim is to centralise the treatment works for each region for effective management of the available water resources. This project forms part of the Department of Water and Sanitation’ Water Master Plan and appears on the 2011/12 water master plan.
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4.2 Appropriateness and Acceptability of Solution
After consultation and interaction between Ehlanzeni DM and Nkomazi LM, maintaining the status quo and upgrading the WTW and pipelines was noted as the best way forward.
The option utilises most of the available infrastructure and is the best option when compared with other alternatives. Upgrades of the WTW will be carried out by constructing modules similar to the existing, with slight modifications. This will allow for ease of operation and maintenance by the available staff without any need for specialised training.
4.3 Appropriate Water Resource Choice & Adequate Water Allocation
The Driekoppies Dam proved to be the appropriate water source since its already part of the existing infrastructure. Again, available licences allow for the abstraction of 9,646,240m3/a which translates to 26.43Ml/d. The Gross Average Annual Daily Demand for 2027 has been estimated as 27Ml/d hence the need for application for additional allocations for 2027 and beyond. There is still time for this to be processed without hindering the proposed developments.
4.4 Compliance to Water Demand / Water Conservation Objectives
Nkomazi LM has not yet implemented a formal WC and WDM program. It has however been captured in their IDP for 2011-12 as a priority program. It is an accepted understanding within the Municipality that WC and WDM provides a strategic approach to optimise the use of resources by focusing on economic efficiency, ecological sustainability and social equity that this program is being prioritised.
Water Conservation and Water Demand Management process is deemed critical across the whole of South Africa in the wake of diminishing potable water resources. WC and WDM play an important role in ensuring environmental sustainability, socio-economic equity and efficiency. Across South Africa Water loss is generally high with figures of up to 40% common in some areas. Illegal connections are rampant resulting in failure for the authorities to account for water that would have been processed and fail to plan accurately for developmental purposes despite the obvious revenue loss.
Water Conservation focuses on the efficiency of available water resources with the key components being:
i. Dam storage optimisation, rehabilitation and control of undesirable growths in the dam ii. Community education and awareness. iii. Water quality management including minimising pollution and controlling storm water infiltration
Water Demand Management focuses on the most beneficial solutions to water supply by way of implementing strategies or programs that influence the usage of water to economical and sustainable levels. The key strategies include the following;
i. Flow and pressure management, including night flow assessment and optimisation. ii. Leak monitoring, repair, planned and preventive maintenance. iii. Metering, billing and effective pricing and collection.
Prior to commencement of construction work, WCWDM program will be drawn up to focus on the following major items deemed applicable to the circumstances of Driekoppies:
a. Leak detection and repair of all identified leaks. b. Installation and maintenance of flow meters on bulk lines with reliable reporting mechanisms. c. Installation of pressure reducing and flow sensitive equipment to control demand patterns. d. Zoning of bulk schemes and reticulation networks for effective monitoring and billing.
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e. Regular security inspections for illegal connections and policing of identified vulnerable areas. f. Community awareness campaigns and educational programs g. Effective billing, collection and rapid establishment of fault reporting systems supported by rapid responds reaction teams. h. Introduction of by-laws and regulations supported by education campaigns and incentives for compliance.
The proposed project ties in with WC/WDM objectives as it:
Replaces old infrastructure hence reducing losses (Water Conservation) Puts in place flow measuring devices which will allow for accounting for water used (Water Demand management) Optimises the water network to reduce unnecessary high pressures in the network Introduces a telemetry system for the management of water levels in the reservoirs
4.5 Optimal Choice of Bulk Distribution Networks
The upgrade of the Bulk Water supply system is intended to augment potable water supply into the study area. The existing bulk distribution networks will not be altered. The project will serve to upgrade the WTW and replace small / undersize pipelines. New pipeline routes will follow existing pipelines if servitudes are available.
The bulk of the work will be upgrades hence new infrastructure will be developed within existing pipes' servitude. This has limited the available options to the confines of existing infrastructure
4.5.1 Considering Full Life-Cycle Cost
The proposed development will be implemented in well-established villages and communities, options were limited besides aligning to the existing services as far as practicable. Developments to be carried out included:
1. Water Treatment Works - Selected site within existing demarcated area for the purpose and in close vicinity to the source with no requirement for new EIA’s.
2. Pipelines - All pipeline routes preferred to follow road reserves where servitudes are available and easily accessible even during maintenance.
3. Reservoirs All reservoirs sited in the highest points of villages to be served and where existing reservoirs are located.
4. Pump Stations Preferred to be located in secure manned areas where power supply is available. Existing stations' sites satisfied this and were in line with the rest of the infrastructure.
The only notable option that was considered is the Langeloop supply line summarised below:
Option 1: Supply from Driekoppies Reservoir Site Directly To Langeloop Reservoir Site.
Pipeline will be pumping main going through privately owned land requiring servitude. Advantage is to reduce the size of the Driekoppies to Boschfontein pipeline and overall distance is 3km shorter,
Option 2: Supply from Boschfontein Reservoir site directly to Langeloop Reservoir site.
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Gravity pipeline and traversing along road reserve with existing servitude. Disadvantage is 3km longer and vulnerability to illegal connections as it will pass through Aniva village.
Option 2 remains favourable at this stage. Even though capital costs were lower for the pumping main, the life cycle costing showed that the gravity pipeline was the more economical option. Capital costs and life cycle costing has been presented under appendices for reference. It must be noted that there is no other viable water source besides the Driekoppies Dam and WTW.
4.6 Proof of Best Suited Technology
Considerations that are notable to ensure that optimal choices were made included:
1. Water Treatment Works – selected site within existing demarcated area for the purpose and in close vicinity to the source with no requirement for new EIA’s.
2. Pipelines – all pipeline routes preferred to follow road reserves where servitudes are available and easily accessible even during maintenance. Depths kept within reasonable levels not to be too costly during construction and maintenance and not too shallow to encourage illegal connections.
A decision had to be made between HDPE and uPVC pipes. uPVC pipes were selected owing to their price which is much lower (20% less) than that of HDPE pipes, and also considering their relative low weight, uPVC pipes are strong and durable. This makes uPVC pipes suitable for all types of long-term applications, including domestic water, sewerage, storm water and deep underground piping systems. UPVC pipes can tolerate a range of temperatures, resulting in fewer burst pipes and other maintenance issues.
Under normal circumstances, uPVC pipes possess high resistance to impact damage when compared to pipes made from clay, concrete and most other conventional materials. Even though uPVC pipes do exhibit a reduction in impact strength at very low temperatures, the impact strength remains more than adequate, usually exceeding that of alternate pipe materials. The long-term tensile strength is twice that of iron, steel or other thermoplastic pipe material.
3. Reservoirs – All reservoirs sited in the highest points of villages to be served and targeted where there are existing reservoirs.
4. Pump stations – Preferred to be located in secure manned areas where power supply is available.
5 INSTITUTIONAL CRITERIA
5.1 Ownership
Nkomazi Local Municipality as the Water Services Provider (WSP) and Water Services Authority (WSA) is expected to be the owner of the infrastructure. EDM will be the Implementing Agent of the scheme. As discussed previously in this report, funding will be from DWS through the RBIG program with co-funding from Nkomazi LM. DWS, in-line with their policies, will therefore be required to transfer the project to the Implementing Agent who will in turn transfer it to the WSP for Operation and Maintenance upon successful completion of the implementation program. 5.2 Confidence in the Capacity of the Institution to Implement
EDM has demonstrated its suitability to discharge its implementing responsibility by successfully completing several Regional Bulk Water Supply and Sanitation projects over
Page | 13 the last 5 years, even prior to the advent of the RBIG programme. Ehlanzeni District Municipality has successfully completed similar Regional Bulk Water Supply Schemes over the years and is tasked with several others. This is proof enough of their capabilities as an Implementing Agent hence the confidence given to them by DWS for such schemes.
5.3 Agreements on the Infrastructure Ownership
The ownership of the infrastructure will be transferred to Nkomazi Local Municipality on successful implementation. Council resolutions from both the District and Local Municipalities will form the backbone of the ownership agreements to be put in place.
5.4 Agreement on Implementation Responsibility
It is the responsibility of Ehlanzeni District Municipality to implement the project in line with the RBIG requirements. Ehlanzeni District Municipality has been appointed as the Implementing Agent.
5.5 Proof of Implementation Capacity
Ehlanzeni District Municipality has successfully completed similar Regional Bulk Water Supply Schemes over the years and is tasked with several others. This is proof enough of their capabilities as an Implementing Agent hence the confidence given to them by DWS for such schemes. Below is a list of projects that that have been successfully completed by EDM:
Upgrade of the Lomati Dam in Umjindi local Municipality Vlakbult Water Bulk: upgrading of the Bulk Infrastructure from Asbestos to uPVC Upgrading of Sabie and Skukuza Water Purification Plant in Kruger National Park Construction of Hoyi Reservoir and Elevated Tank Bulk water Intervention in Nkomazi Local Municipality
EDM also has a technical department with registered engineering professionals and qualified technicians with extensive experience in water supply projects.
5.6 History on Past Implementation Quality & Performance
Ehlanzeni District Municipality has had clean a Clean Audit Opinion report for five years unabatedly. EDM is one of few municipalities to have obtained and maintained the clean audit report in the whole country. This is evidence enough of the good quality and performance that EDM delivers.
5.7 Agreement on Operating Responsibilities
It is a constitutional mandate and obligation that WSA be responsible for the operation, maintenance and management of water related infrastructure in their areas of jurisdiction. Nkomazi Local Municipality, as the Water Services Authority, falls under this bracket and is no exception to the rule. However, Nkomazi LM will have to appoint a service provider if they cannot run the bulk water scheme.
5.8 Proof Adequate Staff Numbers & Skills Levels
It is acknowledged that there is a staff and skills gap for the effective operation and maintenance of water infrastructure in Nkomazi. Nkomazi Local Municipality has it on record within their IDP taken measures to address the gaps and fill up vacant positions. Short term measures are already in place which has enabled the Municipality to provide the services mainly through assistance from CoGTA and the Ehlanzeni DM. The use of Professional
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Engineering Service Providers for the high level skills demanding areas is in place and has gone a long way in alleviating this National challenge.
At preliminary design stage, it was noted that the Driekoppies WTW will be Class C plant at completion of the proposed development. This is according to the Regulations relating to Compulsory National Standards for Process Controllers and Water Services Works by Department of Water Affairs(Oct 2013). It is further stated in the regulations document that there will be a need for the following workers at the WTW as a minimum for the operation of the WTW:
1 x Trainee 2 x Maintenance Workers with a maintenance certificate 1 x maintenance worker with at least five years’ experience 1 x Grade III supervisor and 1 x Grade IV weekly supervisor
The list above shows staff required specifically for the WTW. Below is a list of staff available for the operation and maintenance of the Driekoppies WTW.
8 Process Controllers 1 Superintendent(Class III) 1 Senior Superintendent (Class IV) 12 Workers responsible for Maintenance
With 6 workers required at a time to operate the Driekoppies WTW and Nkomazi LM having 22 workers responsible for the Driekoppies WTW, it can be concluded that there is adequate staff for the operation of the WTW. There are three shifts in a day meaning each shift has 7 workers. However, there will be a need for training of personnel since they will be responsible for a bigger and slightly different scheme. Some of the workers are currently responsible for the pumping stations at Buffelspruit and Schoemansdal hence will need to be trained to suit their new positions.
Even though it is reported that there is adequate staff for the operation and maintenance of the Driekoppies WTW, there will still be a need to hire more staff especially at technical management level.
5.9 History on Water Services Interruptions
The study area has experienced and continues to experience frequent water supply interruptions at all its settlements. The causes for the interruptions have ranged from: Frequent pipe breaks that are caused by aging infrastructure pipe delivery mains; O&M failures caused by insufficient asset management skills; O&M failures caused by budgetary constraints; and This was established from site visits, interviews with operators and use of the complaints register. All this was provided by the Nkomazi LM.
5.10 Commitments Of Above Institutional Leadership
This is achieved via council resolutions by the Local and District Municipalities. Separate agreements signed up by other stakeholders will reinforce this commitment. The resolutions and agreements constitute the approval for the project.
5.11 Cooperation Agreements between Key Stakeholders
Key stakeholders namely DWS through the RBIG program and Ehlanzeni District Municipality have shown the cooperation and agreement in principle for the implementation of the project. Basic Assessments and Preliminary Designs through the District Municipality and DWS have been carried out successfully.
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5.12 Approval of Institutional Arrangements
This is achieved via council resolutions by the Local and District Municipalities. Separate agreements signed up by other stakeholders will reinforce this commitment. Resolutions and Agreements constitute approval for the project.
5.13 Cost Recovery System
The area under study is predominantly rural and there is no cost recovery being implemented by Nkomazi LM. However the Local Municipality has indicated in its 2011-12 IDP that plans are under way to implement water billing as a long term strategic policy. The implementation timing of this will be guided by the level of service that the Local Municipality will have managed to attain over the years.
5.14 Water Conservation and Demand Performance by Institution
Nkomazi Local Municipality has not adopted a formal WC &WDM program although some functions of this program are by default in place like water quality control and replacement of ageing infrastructure as on-going processes. There is potential to implement WC/WDM measures in the Driekoppies Water Supply Scheme area. According to the Reconciliation Strategy for Driekoppies, preliminary assessments indicated that the system losses are high hence there is a potential to save some water. This can be achieved if the water use is reduced to the BMP levels. In order to save this amount, the following intervention measures will be required:
1. Implementing Pressure and Leakage Management (PLM) intervention measures that reduce water leakages in the bulk and reticulation network infrastructure; 2. Undertaking a consumer use reduction programme through an education and awareness campaign, promoting the benefits of improving water use efficiency. This should be undertaken based on a comprehensive Knowledge Attitude and Practices (KAP) survey so that the campaign is focused on the stakeholders‟ attitude towards water use; 3. Developing a consumer metering and meter renewal programme for the Driekoppies Water Supply Scheme area;
4. Implementing increasing block tariff (IBT) structure and by-laws in order to influence consumer use reduction.
5.15 Responsibilities and Accountability
This is a joint function between the District and Local Municipalities where specific responsibilities have been assigned to each party.
Ehlanzeni District Municipality is responsible for the implementation of the bulk water supply scheme and development of initiatives and strategies for the sustainable use of the water resources. These will be adopted by Nkomazi Local Municipality through agreements and council resolutions. The Ehlanzeni District Municipality has captured these in their IDPs and will measure performance against the set targets.
Nkomazi Local Municipality is tasked to adopt agreed strategies and encompass them in their own IDPs. The Local Municipality is required to avail adequate structures within their administration and financial organs to fully support the initiatives and strategies as adopted. They are to observe their constitutional mandate in terms of service provision and ensure that budgets are available for adopted programs.
All parties are to be accountable for their tasks and operate in a transparent manner for the communities their serve and all stakeholders.
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6 FINANCIAL CRITERIA
6.1 Available Funding
It is anticipated that 67%of the construction costs will be sourced from the RBIG scheme with the balance of 33% being sourced by the local municipality as co-funding. However council resolutions on the co-funding will serve as guideline of the availability of funding by the Local Municipality.
6.2 Funding Conditions
The funding for the project will be subject to the conditions applicable to the RBIG programme, based on: Compliance to water resource policy and legislation; Proven implementation readiness Illustration of the need for funding; Presentation of a financial plan showing the combination of available finds and financing arrangements and overall financial viability; Available co-funding; Ownership of infrastructure; Adequate capacity by the WSA; Demonstration of institutional commitment; Fulfilling all the legal criteria of water use licensing and environmental acceptability; Commitment to put WC /WDM Plans in place; Commitment to put acceptable asset management plans; Linkages to the Municipality’s IDP and WSDP; and Specification of the amount of involvement of SMMEs and B-BBEE enterprises.
The Co-funding is expected to come from the municipality and depending on the source of funds, additional conditions will be derived.
6.3 Financial Analysis of Cost Projections
Below are the projected costs of project implementation in four phases.
Cost Phase 1 Phase 2 Phase 3 Phase 4 Total Category Construction 40 800 000.00 35 820 000.00 78 999 048.41 40 800 000.00 196 419 048.41 Costs P & G 6 120 000.00 5 373 000.00 11 849 857.26 6 120 000.00 29 462 857.26 Contingencies 4 692 000.00 4 119 300.00 9 084 890.57 4 692 000.00 22 588 190.57 Professional 5 161 200.00 4 531 230.00 9 993 379.62 5 161 200.00 24 847 009.62 Fees Vat @ 14% 7 948 248.00 6 978 094.20 15 389 804.62 7 948 248.00 38 264 394.82 Total 64 721 448.00 56 821 624.20 125 316 980.48 64 721 448.00 311 581 500.68
Operation and Maintenance (O&M) of the proposed scheme was discussed extensively on section 7 of the PDR. O&M costs and plans were presented together with day to day activities, monthly checks and annual checks as well. It was estimated that at 2015 prices, it will cost about R7, 7mill to operate and maintain the Driekoppies bulk water infrastructure. Further details are in the PDR document.
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6.4 Financial Modelling Of Projected Income Taking Into Account Affordability
The Municipality receives grant funding from National Treasury and other sector departments. Some of the funds are unconditional i.e. equitable share and some are conditional. Capital grants are used for approved business plans only.
6.5 Proposed Tariff Adjustments to Reconcile Cost and Projected Income
There is currently no cost recovery on water services rendered by Nkomazi LM within the supply area however the municipality has plans to exercise such in the near future. For sustainability, a tariff of about R15, 80 / Kl will have to be effected but with the water equitable share, this can be brought down to about R6, 20 / Kl.
6.6 Financial Viability and expected Return on Investment over Expected Useful Life
Installation of supply system will most certainly uplift the moral and the willingness of the community to pay for services. This results in a positive influence on people to become economically and environmentally sensitive, which ensures sustainable development in any community. This is necessary to ensure the long-term affordability of water supply and cost recovery for operations and maintenance. The financial viability of this project can only be ascertained when the equitable share is used for provision of water services since the area consists of about 70% indigent consumers.
A proposed tariff of R6.20 / Kl will allow the Municipality to recover costs incurred in the provision of water services to the community. This assumes that a sum of R 3mill is used from the equitable share for water provision.
6.7 Financial Status, Performance and Creditworthiness of Municipality and Implementing Agents
The capital investment is to provide the infrastructure necessary for the municipality to provide basic level of service. Beside the capital investment that will be funded through RBIG funds, the municipality will need to budget for the operation and maintenance costs of managing the new infrastructure.
The O & M cost will be covered from the revenue collection system to be implemented by the local municipality. Part of the O & M costs will be covered by government subsidies as the municipality will be providing a basic water allocation up to 6kL/household/ month. In order to improve billing, collection and minimizing O&M cost, a WCWDM Business Plan will be compiled and implemented before construction work commences. The aim of the business plan will be to address the water losses and manage the water demand in the project area.
7 LEGAL CRITERIA
7.1 Water Licenses
The Nkomazi local Municipality has several Water use licenses for the different schemes which will fall within the Driekoppies Bulk Water Supply scheme as shown below:
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Table 11: Available Water Licenses
REGISTERED WATER REGISTERED DWS FILE REGISTERED SUB- WATER REGISTRATION WATER USE VOLUME NUMBER SCHEME RESOURCE NUMBER USER NO. (m³/A)
1 LANGELOOP LOMATI 1,325,000 2 BUFFELSPRUIT LOMATI 2,838,240 DWS MPUM: 24058332 27/2/2/X14G/008 DRIEKOPPIES 3 DRIEKOPPIES A&B LOMATI 3,145,000 SCHEME 4 SCHOEMANSDAL NORTH LOMATI 568,000 5 SHONGWE LOMATI 1,770,000 TOTAL FOR DRIEKOPPIES SCHEME 9,646,240
There is no single bulk license that allows for the abstraction of the required volume from the Lomati River however by combining the licenses for the different schemes as shown in the table above, 9 646 240m3/a will be available for this development. This translates to 26.43Ml/d, when compared with the 2017 GAADD (22.66Ml/d) and the 2037 GAADD (30.11Ml/d) shows that the above licenses will be adequate till sometime around 2027 when more allocations will have to be made available to the scheme. However, there will be a need for Nkomazi Local Municipality to apply for one license which will be able to be used to meet the full scheme demand. LCE is to assist Nkomazi Local Municipality with the application for combining the available licenses into a single license.
7.2 Environment Authorization
The implementation of a Bulk Regional Water Supply Scheme will trigger various activities as listed in the Environmental Conservation Act of 1989. A specialist environmental consultant was appointed on behalf of EDM to conduct a detailed investigation on the study area and to advice on the necessary phases and procedures to be followed as per the environmental Management Act (Act No. 107 of 1998). The appointed specialist was responsible for the submission of applications and this project has received the environmental authorisation for implementation. Records of Decision are attached under appendices for reference.
7.3 Land and Property Rights
This aspect affects
Skoonplaas and Mhloshana Reservoir sites – Nkomazi LM Technical Director has consulted and obtained agreement from the Traditional Leaders in whose land falls under their jurisdiction.
The rest of the proposed infrastructure is falling within existing servitudes. A copy of the written approval will be availed by Nkomazi LM. The land falls under Tribunal Authority and a verbal go ahead had been given during site visits conducted with representatives from the authority.
8 SUSTAINABILITY CRITERIA:
8.1 Financial Viability
The project is expected to be funded by the RBIG program with co-funding from the District and Local Municipality as it is reaching rural poor communities. The costs detailed in the report have been based on prevailing market prices making the cost estimates reasonably accurate. The financial viability for the project can only be achieved by making use of the equitable share for water services since almost 70% of the consumers within the supply area are considered as indigent as well as billing of water services. A tariff of R6, 20 / Kl will allow the municipality to recover costs incurred.
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8.2 Operating and Management Capacity, Performance & Commitment
Commitment has been demonstrated by the WSP in terms of putting mechanisms in place for the effective operation and management of the scheme as discussed in section 5 of this report.
8.3 Environmental and Social Acceptability and Impact
An application was submitted to the Department of Economic Development, Environment and Tourism (DEDET) numbered 17/2/3/E-238 with NEAS reference number MPP/EIA/00000736/2013 for the Driekoppies Bulk Water Scheme. Key factors considered in making the decision included:
a) Ecological Impact b) Sustainability c) Need and desirability
After consideration and of the information and factors listed above, DEDET made the following findings:
a) According to the basic assessment report submitted, the proposed development was considered to be environmentally, economically and socially sustainable. b) Mitigation measures and recommendations outlined in the basic assessment report and environmental management programme prepared for the activity are appropriate and practical for implementation, and is anticipated that they will reduce the significance of potential impacts.
The environmental authorisation for the proposed development was then issued.
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Lubisi Consulting 21 Driekoppies Bulk Scheme - Infrastructure Readiness Study Report
9 Appendices
9.1 Langeloop Pipeline Considerations
Pumping Main Estimate Costing
Cost Estimate Item Description Size Qty (R) 1 Preliminary and General 631,600.13 2 Pipelines 2.1 uPVC underground including fittings 315mm dia 5,590 5,492,175.00
2.2 Miscellaneous sum 823,826.25
3 Driekoppies Booster Pump station 3.1 Building works Sum 1 100,000.00 Pumping unit @ 255m3/hr and 4m Pumping 3.2 Sum 1 500,000.00 Head including all Electricals Sub-Total 7,547,601.38 4 Contingencies (10%) 754,760.14 Sub-Total Construction Cost (present) 8,302,361.51 5 Basic Professional Fee 830,236.15 Total Estimated Cost (excluding VAT) 9,132,597.66 6 VAT (14%) 1,278,563.67 Total Estimated Cost (including VAT) 10,411,161.34 TOTAL ESTIMATED COST (including VAT) 10,411,161.34
Gravity Main Estimate Costs
Cost Estimate Item Description Size Qty (R) 1 Preliminary and General 918,588.38 2 Pipelines 2.1 uPVC underground including fittings 315mm dia 8,130 7,987,725.00
2.2 Miscellaneous sum 1,198,158.75
3 Booster Pump station 3.1 Building works Sum 0 0.00 3.2 Pumping unit Sum 0 0.00 Sub-Total 10,104,472.13 4 Contingencies (10%) 1,010,447.21 Sub-Total Construction Cost (present) 11,114,919.34 5 Basic Professional Fee 1,111,491.93 Total Estimated Cost (excluding VAT) 12,226,411.27 6 VAT (14%) 1,711,697.58 Total Estimated Cost (including VAT) 13,938,108.85 TOTAL ESTIMATED COST (including VAT) 13,938,108.85
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Life Cycle Costing Option 1-Pumping 2-Gravity
1.0 Initial Investment Costs a) Water Treatment Works 0.00 0.00 b) Booster Stations 600,000.00 - c) Pipe Laying 6,947,601.38 10,104,472.13 d) Other Costs 100,000.00 -
2.0 Running Costs a) Energy Price (2011) R per Kwhr 3.45 0.00 b) Weighted Average Power of Equipment / Kw 12.82 - c) Average Operation Hours per Year 5,840 - d) Energy Cost per Annum 258,403.76 - e) Labour Costs per Annum 1,080,000.00 336,000.00
3.0 Maintenance a) Pump station: 54,988.01 - b) Pipeline: 38,238.01 50,522.36 c) Civil Works: 19,119.00 25,261.18
4.0 Other a) Lifetime in Years 30 30 b) Interest in % 5.5 5.5 c) Inflation in % 6 6
Present LCC Value 51,170,064.61 22,457,978.36
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Lubisi Consulting 23 Driekoppies Bulk Scheme - Infrastructure Readiness Study Report
AADD GAADD SPD
Driekoppies Bulk
WaterScheme
Losses(10%)
Demand(l/c/d) Demand(l/c/d)
2017(Ml/d) 2037(Ml/d) Treatment Water 2017(Ml/d) 2037(Ml/d) 2017(Ml/d) 2037(Ml/d)
2017Population 2037Population Distribution
Losses(15%)
Water Demand Water Demand Water Demand Water Demand Water Demand Water Demand Water
SummerPeakFactor
2017CapitaPer Water 2037CapitaPer Water Settlement Name Low (res.) 119 600 80 161 083 80 9.57 12.887 15% 10% 12.103 16.302 1.5 18.155 24.452 Medium (res.) 47 029 120 63 341 120 5.64 7.601 15% 10% 7.139 9.615 1.5 10.709 14.423 High (res.) 9 631 150 12 971 150 1.44 1.946 15% 10% 1.827 2.461 1.5 2.741 3.692 Institutions Clinics 5 800 5 800 0.004 0.004 15% 10% 0.005 0.005 1.5 0.008 0.008 Hospitals 1 0.6 1 0.6 0.600 0.600 15% 10% 0.759 0.759 1.5 1.139 1.139 Schools - Primary 22 9450 22 9450 0.208 0.208 15% 10% 0.263 0.263 1.5 0.394 0.394 Schools - Secondary 8 6750 8 6750 0.054 0.054 15% 10% 0.068 0.068 1.5 0.102 0.102 Community Halls 5 3750 5 3750 0.019 0.019 15% 10% 0.024 0.024 1.5 0.036 0.036 Municipal and Government 2% 0.33 2% 0.45 0.33312 0.44867 15% 10% 0.4214 0.5676 1.5 0.6321 0.8513 Business and Industry business 1 37864 1 37864 0.038 0.038 15% 10% 0.048 0.048 1.5 0.072 0.072 Industry Total 176 259 237 396 17.91 23.80 22.66 30.11 33.99 45.17
Social Water Based on 2037: 161 083 x 80 = 12, 89 Ml 76 312 x 25 = 1,91 Ml Institutional Water = 0,885 Ml Total = 15,69 Ml
Implying that ( 15,69/23,36) = 0,672 or 67% is Social Water for the Driekoppies Scheme
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