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Gert Sibande District Municipality

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Gert Sibande District Municipality DEPARTMENT OF WATER AFFAIRS GERT SIBANDE DISTRICT MUNICIPALITY REGIONAL BULK INFRASTRUCTURE GRANT PROGRAMME REGIONAL BULK WATER SUPPLY FOR MSUKALIGWA LOCAL MUNICIPALITY CONTRACT: GSDM 52/2010 IMPLEMENTATION READY STUDY (IRS) PHASE 3 REPORT: REGIONAL BULK WATER SUPPLY FOR MSUKALIGWA LOCAL MUNICIPALITY Revision 10 – 13February 2015 Prepared by: In association with: Tumber Fourie Consulting Engineers cc LMS Services PO Box 15110 PO Box 2775 Nelspruit, 1211 Newcastle, 2940 Tel: 013-752 7475 Tel: 082-807 4356 Fax: 013-752 2036 Fax: 086-613 3299 Gert Sibande District Municipality Msukaligwa Local Municipality PO Box 1748 PO Box 48 Ermelo Ermelo 2350 2350 Tel. 017-801 3500 Tel. 017-801 7000 Fax 017-801 3851 Fax: 017-811 1207 Contract GSDM 52/2010: IRS (Rev 10) – Regional Bulk Water Supply for MLM EXECUTIVE SUMMARY Msukaligwa Local Municipality (MLM) has through funding from MIG, GSDM and own initiatives ensured that access to water for all has improved over the past years but there are still challenges in ensuring access to water more especially in the semi-urban and rural areas of the municipality. It is estimated that about 6 000 households have access to an inadequate level of water supply and close to 3 000 households have no formal service of water supply. Msukaligwa Local Municipality (MLM) has been considered for funding assistance through the Department of Water Affairs (DWA) Regional Bulk Infrastructure Grant (RBIG) programme with a main objective being to consider the creation of regional bulk water supply schemes in the MLM area which would ultimately ensure a sustainable and reliable water supply for all the communities of MLM for the next 20 years. This multi-scheme project is known as the Bulk Water Supply Ermelo/Wesselton, Breyten/Chrissiesmeer, Nganga/Warburton, Lothair/Silindile Scheme situated within the Msukaligwa Local Municipality (MLM). This multi-scheme project comprises two sub schemes. The one sub scheme entails the clustering of Breyten/Kwazanele; Chrissiesmeer/Kwachibikulu; Warburton/Nganga and Lothair/Silindile into one regional scheme, supplying them with water from Torbanite Dam augmented from the Westoe, Morgenstond and Jericho Dams via the Upper Komati Pipeline tap-off from the Camden-Kriel Pipeline close to the Camden power station. The second sub scheme entails the supplying of Ermelo/Wesselton with water from the Brummer and Douglas Dams augmented from the Westoe, Morgenstond and Jericho Dams via the Camden-Kriel Pipeline at DWA Rietfontein reservoir. The Camden-Kriel Pipeline is also known as the Usutu-Vaal Transfer Scheme Pipeline or the Vaal River Eastern Subsystem (VRESS). The project will serve a projected population of 161,160 people in the greater Ermelo/Wesselton; Breyten/Kwazanele; Chrissiesmeer/Kwachibikulu; Warburton/Nganga and Lothair/Silindile areas by 2033 for an estimated VAT inclusive project cost of R 499,590,873. This Implementation Ready Study (IRS) Phase 3 Report summarises key elements of the project. The objectives and requirements for the Implementation Ready Study (IRS) Phase 3 Report are included in the checklist below and are described in the referenced sections of this Report. The table below has been used as a checklist and the topics listed in the table have been described in more detail in the IRS Phase 3 Report by way of a short summary on each issue. The table also lists the relevant report section reference in the column on the right hand side. It should be noted that a number of the requirements specified have been determined in the previous IRS Study Phases 1, 2A and 2B. In such instances this IRS Phase 3 Report briefly highlights the required inputs and provides direct references to the other reports for more detailed information. Compiled by Tumber Fourie in association with LMS Services i Contract GSDM 52/2010: IRS (Rev 10) – Regional Bulk Water Supply for MLM The Implementation Ready Study Phase 3 criteria checklist is as follows: REFERENCE IMPLEMENTATION READINESS STUDY CRITERIA CHECKLIST IN REPORT 1 Strategic and Planning issues 1.1 Business plan / technical report 1.1 1.2 Project’s strategic alignment 1.2 1.3 Other components of water supply 1.3 1.4 Strategic importance, delivery targets 1.4 1.5 Stakeholder acceptance of technical proposal 1.5 1.6 Level of service 1.6 1.7 Economic growth requirements 1.7 1.8 Water source shortages 1.8 1.9 Functional criticality 1.9 1.10 Extent of cost 1.10.1 - 1.10.3 1.11 Available co-funding 1.11 2 Social Issues 2.1 Service level improvements 2.1 2.2 Number of poor households to be served 2.2 2.3 Number of jobs to be created 2.3 2.4 Affordability of proposed water tariffs 2.4 2.5 Contribution towards poverty eradication, social upliftment and health 2.5 improvement 2.6 Number of associated services benefiting 2.6 2.7 Socio-political support for the proposed project 2.7 3 Economic Issues 3.1 Current businesses and industries to be served 3.1 3.2 Expected economic value to be generated 3.2 3.3 Benefit to SMMEs and BBBEE enterprises 3.3 3.4 Regional economic benefit 3.4 4 Technical Issues 4.1 Project Linkage to Master Plan 4.1 4.2 Appropriateness and acceptability of solution 4.2 4.3 Appropriate water resource choice and adequate water allocation 4.3 4.4 Compliance to water demand / water conservation objectives 4.4 4.5 Optimal choice of bulk distribution networks 4.5 4.6 Proof of best suited technology 4.6.1 – 4.6.2 5 Institutional Issues 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 infrastructure ownership 5.3 5.4 Agreement on implementation responsibility 5.4 Compiled by Tumber Fourie in association with LMS Services ii Contract GSDM 52/2010: IRS (Rev 10) – Regional Bulk Water Supply for MLM REFERENCE IMPLEMENTATION READINESS STUDY CRITERIA CHECKLIST IN REPORT 5.5 Proof of implementation capacity 5.5 5.6 History on past implementation quality and performance 5.6 5.7 Agreement on operating responsibilities 5.7 5.8 Proof of adequate staff numbers and skills levels 5.8 5.9 History on water services interruptions 5.9 5.10 Commitments for above by institutional leadership 5.10 5.11 Cooperation agreements between key stakeholders 5.11 5.12 Approval of institutional arrangements 5.12 5.13 Cost recovery 5.13 5.14 Water conservation and demand performance by institution 5.14 5.15 Responsibilities and accountability 5.15 6 Financial Issues 6.1 Available funding 6.1 6.2 Funding conditions 6.2 6.3 Financial analysis of cost projections 6.3 6.4 Financial model (Cash Flow) 6.4 6.5 Financial status, performance and creditworthiness 6.5 6.6 Non-Payment rate on all services 6.6 6.7 Monetary income streams 6.7 7 Legal Issues 7.1 Water license with adequate allocation 7.1 7.2 Environmental impact assessment 7.2.1 – 7.2.2 7.3 Property rights issues 7.3.1 – 7.3.2 8 Sustainability Issues 8.1 Financial viability 8.1 8.2 Operating and management capacity, performance and commitment 8.2 8.3 Environmental and social acceptability and impact 8.3.1 – 8.3.2 Compiled by Tumber Fourie in association with LMS Services iii Contract GSDM 52/2010: IRS (Rev 10) – Regional Bulk Water Supply for MLM INDEX EXECUTIVE SUMMARY ....................................................................................................... i 1. STRATEGIC AND PLANNING ISSUES ......................................................................... 1 1.1 Business Plan/ Technical Report ............................................................................ 1 1.2 Project’s Strategic Alignment .................................................................................. 3 1.3 Other Components of Water Supply ....................................................................... 3 1.4 Water Supply Delivery Targets................................................................................ 8 1.5 Stakeholder Acceptance of Technical Proposal ...................................................... 9 1.6 Level of Service ...................................................................................................... 9 1.7 Economic Growth Requirements ........................................................................... 10 1.8 Shortage of Water Sources ................................................................................... 11 1.8.1 Ermelo Wesselton .......................................................................................... 11 1.8.2 Warburton/Nganga ........................................................................................ 12 1.8.3 Water Conservation and Demand Management ............................................ 12 1.9 Functional Criticality .............................................................................................. 12 1.9.1 Ermelo/Wesselton .......................................................................................... 13 1.9.2 Warburton/Nganga ........................................................................................ 13 1.9.3 General Advantages ...................................................................................... 13 1.10 Social and Economic composition of the water demand........................................ 13 1.11 Extent of Cost ....................................................................................................... 15 1.11.1 Project Cost ................................................................................................... 15 1.11.2 Operation and Maintenance Costs ................................................................
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