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Greater Mpofana Bulk Water Supply Scheme

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Greater Mpofana Bulk Water Supply Scheme GREATER MPOFANA BULK WATER SUPPLY SCHEME IMPLEMENTATION READINESS REPORT OCTOBER 2016 PREPARED BY Umgeni Water Telephone N° : 033 341 1203 Fax N° : 033 341 1218 Email Address : [email protected] P O Box 3235 Pietermaritzburg, 3200 310 Burger Street Pietermaritzburg, 3201 EXECUTIVE SUMMARY Context This project involves a potable bulk water supply scheme located in the Midlands area of the KwaZulu-Natal province. It is referred to as the Greater Mpofana Bulk Water Supply Scheme (GMBWSS). The Greater Mpofana Region (described in this report as the area from Mooi River to Lidgetton) does not have a reliable water supply. Much of the area relies on boreholes and run of river abstraction. With increasing demands, the future supply is not considered sustainable. Phase 1 of the project is currently under construction and will provide a sustainable bulk water supply to the towns of Mooiriver, Rosetta and Nottingham Road. Phase 2 of the project is in the final feasibility stage and will provide a sustainable bulk water supply to the towns of Lidgetton and Lions River including the rural hinterland surrounding the abovementioned towns in KwaZulu Natal. The Scheme will provide bulk water supply to large areas within the uMgungundlovu WSA boundary and will include the rural areas of Bruntville, Lidgetton, Lions River and Msinga. The scheme will also supply economic activities in the areas of Mooiriver, Nottingham Road and Rosetta and will reinforce the supply to these towns. This Implementation Readiness Report (IRS) for the GMBWSS is a prerequisite for RBIG funding so that potable water is made available to both the developing and backlog areas of Mooi River and Rosetta in the Mpofana Local Municipality and Nottingham Road, Mount West, Balgowan and Lidgetton in the uMngeni Local Municipality. Allowance has also been made for potential future supply to Msinga Local Municipality. Beneficiaries The aggregate population of the areas that will be supplied from the scheme (social component) is 91 897 and this number is projected to reach 166 459 by the year 2045. Water Source The water source for the scheme is the Spring Grove Dam from where raw water will be conveyed for purification at Umgeni Water’s Rosetta Waterworks (under construction) at Spring Grove Dam. This is a well-managed source with a degree of supply assurance exceeding 98%. The bulk water system will be owned and operated by Umgeni Water in terms of the Bulk Water Supply Agreements in place. uMgungundlovu District Municipality (UMDM) has given their support to both the project and the application for RBIG funding. Alternatives Considered Prior to the implementation of this project, several preliminary water supply investigations had been undertaken by Umgeni Water, investigating the preliminary feasibility of water resources in the area and water supply to the major towns in the study area. Numerous meetings had been held with the C:\Users\dan.naidoo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\QYK8998O\2016_09_27_IRS-Report (2).doc -i- local authorities as well as property developers working in the study area to determine the most feasible and sustainable source of water to the towns and development nodes within the study area. The following documentation was reviewed as well as background information and context of this project: 1. Correspondence between Umgeni Water and the Department of Water Affairs and Forestry (formerly known as DWAF); 2. Minutes of public meetings pertaining to the environmental processes linked to the Spring Grove Dam and Appurtenant Works; 3. The Umgeni Water Pre-Feasibility Report for the Bulk Water Supply to the Greater Nottingham Road Area (June 2005); 4. The Mooi Mgeni River Transfer Scheme Phase 2: Feasibility Study – Supporting Report 5: Water Quality report dated January 2004; 5. Feasibility Study Report – Water Supply to Nottingham Road – May 2001; 6. Nottingham Road Village Town Planning Scheme Clauses – August 1999; and 7. The Gowrie Farm Development Tribunal – Tribunal Judgement – 21st September 2001. Additional documentation relating to the Spring Grove Dam (technical and environmental reports) were downloaded from the Trans-Caledon Tunnel Authority (TCTA), who acted as implementing agents for the Spring Grove Dam on behalf of the Department of Water Affairs (DWA – formerly DWAF). Further information pertaining to the broader objectives of the GMBWSS was also obtained such as: 1. The KwaZulu Natal Wildlife C-Plan; 2. The Mpofana Municipality Final Integrated Development Plan (IDP) 2007/08; 3. uMgungundlovu District Municipality Water Services Development Plan, July 2003 4. Mpofana Municipality IDP - Projects Report (2002); and 5. The uMngeni Municipality Integrated Development Plan (IDP) 2007/08. The above documentation was reviewed in terms of relevance to the initial Terms of Reference for the GMBWSS Feasibility Study. Preliminary work for the supply of water to the GMBWSS study area included the review of the Mooi-Mngeni Transfer Scheme Phase 1 (MMTS-1 – refer to Figure 2) pipeline at the Gowrie break pressure tank in Nottingham Road, Spring Grove Dam or Mearns Weir at Mooi River as a possible water resource to supply water to Nottingham Road and Mooi River, with a possible extension of the water supply pipelines from Mooi River to Muden and from Nottingham Road to Lions River. The Pre-Feasibility Study concluded that the optimal location of the water treatment works would be at the Mearns Weir, failing which and depending upon water availability, the 2nd choice for the location of the water treatment works would be at the Gowrie MMTS-1 break-pressure tank (depending upon water availability). The Spring Grove Dam was not initially selected as a source of raw water because at the time of the Pre-Feasibility Study, the construction of the Spring Grove Dam was not foreseen within the near future. With the implementation of the Spring Grove Dam by the TCTA, the Terms of Reference for this project specified the Spring Grove Dam as the raw water source for the GMBWSS. C:\Users\dan.naidoo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\QYK8998O\2016_09_27_IRS-Report (2).doc -ii- Purpose of this Project The purpose of this project is to: • Discuss the options that have been considered for a sustainable water supply to the beneficiary communities. • Describe the proposed levels of service. • Describe the schemes to be implemented • Furnish a capital cost estimate for the bulk water system. • Furnish an implementation programme to generate a realistic cash flow for the project; • Furnish O&M costing estimates to ensure the sustainability of installed infrastructure. Funding Request The overall project value is R 954 948 000 (including interest capitalised, escalation and VAT). Based on the norms, number of indigents, associated users and enabling economic environment the social component of the project was calculated at 66%. The social component of the project amounts to R 627 000 000 (including VAT). The project will be counter-funded by Umgeni Water Capex to the amount of R 327 948 000 (including VAT) in respect of the commercial component of the project. Umgeni Water will be the owner of the bulk infrastructure and will be the operator in terms of conditions of the existing Bulk Supply Agreements with the WSAs. The funding mix is based on the repayment of the project costs including operating costs over a 20 year repayment period. In order to ensure a repayment of the debt incurred over a 20 year period. Environmental approvals are in place for Phases 1 to 3 of the scheme and processes are underway or planned for the remainder of the project in line with the programme. Land owner consultations are being pro-actively managed and wayleaves are in place ahead of and during construction. Agreements have been obtained with Eskom on the supply of bulk electricity to each of the key pump stations making up the project. Significant savings will accrue in some supply zones due to the elimination and reduction of pumping. Recommendation Following the completion of this project, it is proposed that the “Greater Mpofana Bulk Water Supply Scheme” is implementation ready and that it qualifies for RBIG funding in terms of DWS requirements. C:\Users\dan.naidoo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\QYK8998O\2016_09_27_IRS-Report (2).doc -iii- TABLE OF CONTENTS Page N° EXECUTIVE SUMMARY .......................................................................................................................... i 1 INTRODUCTION ...................................................................................................................... 1 1.1 Background ............................................................................................................................... 1 1.2 Specific Targets of the Intervention .......................................................................................... 1 1.3 Alternatives Considered............................................................................................................ 1 2 THE PROJECT AREA .............................................................................................................. 4 2.1 Physical Characteristics of Study Area ..................................................................................... 4 2.2 Climate ...................................................................................................................................... 5 2.3 Topography, Geology and Soils ..............................................................................................
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