BUSINESS JOZINI – INGWAVUMA PLAN PROVISION OF BULK March 2009 WATER SUPPLY INFRASTRUCTURE AND PURIFIED WATER SUPPLY

BUSINESS PLAN

SUBMITTED BY :-

uMkhanyakude District Municipality PO Box 449 Mkuze 3935 Tel: 035 573 8600 Fax: 035 573 1386 Email: [email protected] Mhlathuze Water PO Box 1264 Richards Bay 3900 Tel : 035 902 1000 Fax : 035 902 1111 Email : [email protected] PD Naidoo & Associates Consulting Engineers (Pty) Ltd PO Box 1115 Richards Bay Tel : 035 – 789 0236 Fax : 035 – 789 0239

Email : [email protected]

JOZINI – INGWAVUMA

PROVISION OF BULK WATER SUPPLY INFRASTRUCTURE AND PURIFIED WATER SUPPLY

EXECUTIVE SUMMARY...... 1 1. INTRODUCTION ...... 3 1.1 Project Title...... 3 1.2 Project Name ...... 3 1.3 Location of Scheme ...... 3 1.4 Project Objectives...... 3 1.5 Purpose of Feasibility Study...... 4 1.6 Overview of Regional Planning / Studies...... 4 2. NEED DETERMINATION ...... 5 2.1 Demographics...... 5 2.1.1 Current Population ...... 5 2.1.2 Growth Projections...... 5 2.2 Demand / Need Parameters...... 6 2.2.1 Service Levels (Volumetric)...... 6 2.2.2 Flow Rates...... 6 2.2.3 Quality...... 6 3. ENGINEERING VIABILITY ...... 7 3.1 Options Considered ...... 7 3.1.1 Source ...... 7 3.1.1.1 Hydrological / Geohydrological Analysis...... 7 3.1.1.2 Water Balance (DWAF)...... 7 3.1.1.3 Medium / Long Term Sustainability...... 8 3.1.2 Infrastructure...... 8 3.1.2.1 Power Supply ...... 8 3.1.2.2 Generators ...... 8 3.1.2.3 Water Treatment ...... 8 3.1.2.4 Bulk Mains; Options...... 9 3.1.2.5 Water Reticulation ...... 13 3.1.2.6 Dispensing ...... 14 3.1.3 Water Quality ...... 14 3.2 Engineering Consideration...... 14 3.2.1 Planning Norms and Design Parameters ...... 14 3.2.2 Existing Infrastructure ...... 15 3.2.3 Proposed Infrastructure...... 16 3.2.3.1 Physical Design Considerations ...... 16 3.2.3.2 Bill of Quantities ...... 16 4. INSTITUTIONAL SUSTAINABILITY ...... 18 4.1 Community Structures...... 18 4.1.1 Organisations and Leadership Profiles...... 18 4.1.2 Level of Community Awareness and Development ...... 18 4.1.3 Income Levels and Sources of Income...... 19 4.1.4 Community Involvement...... 19 4.2 Water Service Authority ...... 19 i

4.2.1 Responsibility...... 19 4.2.2 Status and Proficiency ...... 19 4.3 Water Service Provider ...... 19 4.3.1 Section 78 Determination...... 19 4.3.2 Status and Proficiency of Selected WSP...... 19 4.3.3 Consumer Customer Relationship...... 20 4.4 Legal Requirements...... 20 4.4.1 Water Use Registration (DWAF) ...... 20 4.4.2 Project Registration (DEA) ...... 20 5. ECONOMIC / SOCIO ECONOMIC ANALYSIS...... 20 5.1 Infrastructure...... 20 5.1.1 Initial Capital Investment Cash Flow ...... 20 5.1.2 Long Term Operation and Maintenance Cost...... 22 5.1.3 Replacement / Refurbishment Cycle Cost...... 23 5.2 Social and Socio Economic Opportunities...... 23 5.3 Training, Facilitation and Capacity Building Scope of Work...... 23 5.4 Cost Estimates...... 24 5.5 Net Present Value / Socio Economic Quantification ...... 25 6. FINANCIAL VIABILITY ...... 25 6.1 Capital Investment ...... 25 6.1.1 Funding sources ...... 25 6.2 Long Term Operation and Maintenance...... 25 6.2.1 Cost Recovery ...... 25 6.2.2 Deficit Funding ...... 26 7. ENVIRONMENTAL ACCEPTABILITY ...... 26 7.1 Natural Environment Impact Assessment Scoping Exercise ...... 26 7.2 Social Environment...... 26 7.2.1 Relocation Considerations ...... 26 7.2.2 Socio-economic Opportunity Maximisation...... 26 7.3 Environmental Management Plan ...... 27 8. CONCLUSION...... 27 9. RECOMMENDATION...... 27 10. PROJECT APPROVAL...... 28 10.1 WSA Management...... 28 10.2 WSA EXCO ...... 28 11. ANNEXURES ...... 29

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JOZINI – INGWAVUMA

PROVISION OF BULK WATER SUPPLY INFRASTRUCTURE AND PURIFIED WATER SUPPLY

EXECUTIVE SUMMARY

• Purpose of Report

The purpose of this Report is to: - • Identify and determine water sources for the study area and treatment needs. • Determine the optimal solution in distributing potable water to the beneficiaries. • Investigate possible phasing of the implementation of the scheme • Provide a cost estimate for the proposed scheme together with a projected cash flow. • Determine possible socio-economic opportunities for the local communities and businesses. • Source funds for this project.

• Project Details

The study area extends from Jozini in the south, to the Mozambique border in the north. The western boundary of the area is formed by the Pongolapoort Dam and the Swaziland border. The eastern boundary is formed by the Pongola River in the south, and the boundaries of the Shemula Water Supply Scheme to the north. The area has been sub-divided into Area 1a, 1b and Area 2 as shown on drawing no. RB/080015/A/001.

The residents of this area currently do not have a reliable, sustainable, potable water supply. This study will determine how to address this need. A further study, currently in progress, will best determine the interlinking of the Shemula Scheme and this proposed scheme.

• Project Description

The recommended scheme provides for the construction of the infrastructure in 3 phases. o Phase 1a: Installation of a 1,2Ml/day package treatment plant drawing water from the Pongola River, immediately downstream of the Pongolapoort Dam. Installation of bulk mains and 6 reservoirs to supply water to the southern portion of Area 1a, as depicted on drawing no. RB/080015/A/003. Install reticulation within the area. o Phase 1: Replace the package plant with a 10Ml/day Regional WTW to serve Areas 1 and 2. Install bulk mains and 6 reservoirs to supply the remainder of Areas 1a and 1b. Install reticulation within the area. o Phase 2 Upgrade the Regional WTW to 30Ml/day. Upgrade the bulk mains to the north to allow for the phasing out of the Shemula WTW. This currently forms part of an ongoing study to optimise water supply within the study area.

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Funds are currently being sort for Phase 1 of the scheme.

• Sustainability

Supply of raw water is secure as water will effectively be abstracted from the Pongolapoort Dam. The yield of the Dam is adequate. Community leaders and the main stakeholders (Traditional Authorities and Jozini Local Municipality) are all aware of the proposed project and it has their support. O&M costs will be funded by the uMkhanyakude District Municipality. The scheme provides excellent opportunities to create employment for local residents and businesses and to promote the growth of the local economy (and SMME’s) as a result.

• Project Cost

The cost of Phase 1a has been estimated as R 277,2 million excluding VAT and Phase 1 in total, including Phase 1a, as R 591,6 million excluding VAT. This includes provision for institutional, socio-economic and environmental costs.

Funding for the capital investment will be sought as a Conditional Government Grant / Subsidy.

• Approvals

WSA Management The recommendation in Section 9 is: - SUPPORTED AND SUBMITTED TO NOT SUPPORTED COUNCIL FOR CONSIDERATION

Municipal Manager Municipal Manager

Date: Date:

WSA EXCO The recommendation in Section 9 was: - APPROVED BY EXCO NOT APPROVED BY EXCO

EXCO Resolution:…………………………………….of………………………….………………..2008

EXCO Secretariat: EXCO Secretariat:

Date: Date:

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1. INTRODUCTION 1.1 Project Title The project’s title is “Jozini – Ingwavuma; Provision of Bulk Water Supply Infrastructure and Purified Water Supply”. 1.2 Project Name

Project Project Name Project Type Latitude Longitude number N/A Jozini – Ingwavuma; Provision of Bulk Bulk water supply 27° 15’ 00” 32° 00’ 00” Water Supply Infrastructure and Purified Water Supply

1.3 Location of Scheme We refer to drawing no. RB/080015/A/001 which shows the study area, together with the Main access roads labelled Road R1, Road R2 and Road R3.

The study area is bounded by the Pongola Dam to the south and lower south west, Swaziland to the west, Mozambique and Ndumu Game Reserve to the north, the Shemula and Nondabuya Water Supply Schemes to the east and the Pongola River to the south east.

The town of Ingwavuma and the rural communities immediately surrounding the town fall within the study area but are supplied by the Shemula Water Supply Scheme.

Investigations for the installation of bulk infrastructure were confined to the area south of the Ingwavuma River.

Village / Communities Nearest Town and distance to the village Ingwavuma Located approximately in the centre of the study area but on the western edge Jozini Located immediately south of the study area, over the Pongola River

1.4 Project Objectives The objectives include: - • Provide potable water to the communities resident within the study area. • Improve health and hygiene within these communities by promotion of awareness of these matters • Determine the most efficient and economic solution to providing potable water to the beneficiaries. • Provide job opportunities during the construction phase of the project as well as more permanent opportunities during operation and maintenance once the project has been commissioned. • Provide skills training during the project implementation phase.

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• Increase community awareness of the importance of preserving water sources and supply schemes. 1.5 Purpose of Feasibility Study The purpose of this Feasibility Study is to: - • Identify and determine water sources for the study area and treatment needs. • Determine the optimal solution in distributing potable water to the beneficiaries. • Investigate the need to phase the implementation of the scheme to suit funding projections. • Provide a cost estimate for the proposed scheme together with a projected cash flow. The cost estimate will make provision for community facilitation together with skills training. • It is intended that the contract be let to a main contractor who would take ultimate responsibility for procurement of materials, provision of guarantees and insurances, work planning and progress. The main contractor will be required to employ local BEE companies and to employ EPWP procedures with the target of utilising up to 30% of available monies for BEE companies / employees. • The cost estimate will be used to prepare registration forms to source funds from MIG for this project. 1.6 Overview of Regional Planning / Studies Bigen Africa was appointed by the DBSA and Mhlathuze Water to investigate the feasibility of providing potable water to northern Zululand from a regional water treatment works (WTW). Their findings are summarised in a document titled “The Regional Bulk Water Supply Master Plan” and handed to uMkhanyakude District Municipality.

Bigen proposed construction of a regional WTW drawing raw water from the Pongola Dam. They investigated a number of options for the supply of potable water to a region stretching from Mtubatuba in the south up to the Mozambican border. This project’s study area is included in this investigation, together with the Shemula Regional Scheme and the areas within the uMkhanyakude District Municipality east of the Shemula Scheme to the Indian Ocean. The two local Municipalities are Jozini and uMhlabuyalingana.

Bigen proposed that the Shemula WTW be replaced by the Regional WTW at Jozini and that the Regional WTW supplies potable water to the whole area from the Swaziland border east to the Indian Ocean. They further proposed that bulk water mains be laid to effectively form a ring main through the area to be supplied. The western leg of the ring will supply the Shemula supply zone, the study area investigated for this report plus the area between Swaziland and the Shemula Scheme, north of the Ingwavuma River.

The phasing out of the Shemula WTW is currently being further investigated. The WTW has recently been upgraded and it may prove cost effective to retain the Shemula WTW as the source of potable water for the northern portions of the study area. The proposed regional facility would then supply the southern sections of the study area and would be upgraded as demand increased.

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2. NEED DETERMINATION 2.1 Demographics 2.1.1 Current Population The population data tabled below has been calculated from the 2001 census figures overlaid by figures of the Malaria Research Lead Programme of the Medical Research Council (MRC) of South Africa. The spatial distribution of the homesteads has been supplied to us for the areas east of the Lebombo Mountains, below a height of approximately 300m. We do not have the spatial distribution within the sub-spaces above that altitude and have worked on a gross number provided for each sub – space, as defined in the census GIS map.

We have also been given current population figures sourced by Sakisizwe, the social facilitator, from the Tribal Authorities. These figures relate generally to the tribal sub – wards. These boundaries must be determined and mapped in the field to establish the distribution of the population. These figures differ significantly from those derived for 2008 from the 2001 census data, where a growth factor of 3% was applied to the 2001 data.

We recommend that further investigations be carried out to verify the population and its spatial distribution once this project commences with preliminary design. We have adopted the 2001 MRC figures to calculate the water demand. The cost of potable water per capita will reduce if Sakisizwe’s data is more accurate.

2.1.2 Growth Projections A growth factor of 3% has been used for population projections within the study area. The 2001 census population data has been extrapolated to the years 2023 (bulk mains) and 2038 (WTW) for design purposes. The data for 2023 and 2038 is reflected in the Table in Annexure 1.

We tabulate in Annexure 1 the subspace names and populations for 2001, 2023 and 2038. The figures for 2023 have been used to calculate demands for the design of the bulk mains and the 2038 figures have been used to calculate the demands for the WTW. A 15 year horizon has been adopted for the bulk mains in line with DWAF policy for rural schemes and the 30 year horizon for the WTW to allow more comprehensive planning of a modular development of a WTW, from the 1 st phase into the future.

Population Area Settlements / Villages Population No. of households Source of Data, (refer to Annexure 1) served by Total No services Accuracy new project beneficiaries (backlog) Margin 1 Areas south of Ingwavuma 86564 12366 12366 MRC and River; Bulk mains (2023) Census 2001; Areas south of Ingwavuma 134864 19266 19266 3% growth factor River; WTW (2038) applied 2 Areas north of Ingwavuma 35779 5111 5111 River; Bulk Mains (2023) Areas north of Ingwavuma 55743 7963 7963 River; WTW (2038)

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2.2 Demand / Need Parameters 2.2.1 Service Levels (Volumetric) The following design criteria have been adopted: - • ADD (bulk) 60l/capita/day • Agricultural demand Nil • Institutional demand Nil (bulk supply) • Seasonal peak factor 1,5 • Peak factor 3 • Unaccounted for water 15% • WTW operating losses 10% • Pumping mains design flow 1,5 x ADD • Design horizon (bulk mains) 15 years • Design horizon (WTW) 30 years

We summarise hereunder the design demands for the different areas using the above data. The areas are shown on drawing no. RB/080015/A/001.

ADD – 2023 and 2038

Area 1 2 Shemula Total 2023 ADD (kl/day) 5 194 2 147 15% loss (kl/day) 779 322 Total (kl/day) (bulk mains ) 5 973 2 469 8 830 17 272 10% loss (kl/day) 597 247 883 1 727 Total (kl/day) (WTW ) 6 570 2 716 9 713 18 999 2038 ADD (kl/day) 8 092 3345 15% loss (kl/day) 1 214 502 Total (kl/day) (bulk mains ) 9 306 3 846 13 757 26 909 10% loss (kl/day) 931 385 1 376 2 691 Total (kl/day) (WTW ) 10 237 4 231 15 133 29 600

The figure for Shemula has been extracted from the design report “The Shemula 2 Community Water Supply Scheme”, drafted by Jeffares Green Parkman and the applicable growth factor applied to calculate the demand for 2023 and 2038. We have distributed the 2023 demands throughout the model, based on populations within the sub – spaces in the study area, in order to size the bulk mains.

2.2.2 Flow Rates The following design parameters have been applied: - • Seasonal peak factor 1,5 • Peak factor 3 • Pressure at stand pipes / supply points 9 bar maximum • Reservoir storage 2 days

2.2.3 Quality Water will be treated at either the package WTW or the proposed regional WTW, downstream of the Pongolapoort Dam, or the Shemula WTW. Only water of potable quality to SANS 241 will therefore be supplied.

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3. ENGINEERING VIABILITY 3.1 Options Considered 3.1.1 Source Raw Water Sources The Pongola River is only sustainable raw water source capable of supplying water to meet the estimated demands. The Pongolapoort Dam provides the necessary storage to ensure a reliable supply. The yield sustainability of the Dam was not calculated independently, with the recorded yield being accepted.

Ground water has not been considered as a source.

Potable Water Sources The only regional WTW within the study area is the Shemula WTW. This WTW has recently been upgraded and has some spare capacity as a result, but insufficient to meet the total projected demand. The plant abstracts raw water from the Pongola River downstream of the Pongolapoort Dam.

The Jozini WTW has recently been upgraded and supplies water to areas south and east of the Pongola River. These areas are currently under – supplied. Current supply schemes are presently being extended placing extra load on this plant. We propose that the Jozini WTW be retained exclusively for supply of potable water south of the Pongola River. This plant will also be supplemented in the future by the proposed regional WTW. A 50kl/hour (1,2Ml/day) package WTW will be supplied by the KZN Department of Local Government and Traditional Affairs for treatment of water for the initial phases of this planned project. The package plant will only meet approximately 60% of the demand for Area 1a (or 20% of the demand of the Area 1) and can only be considered as an interim measure as a result. We recommend that potable water from the package plant only be supplied to the southern end of Area 1.

A regional WTW may ultimately be constructed downstream of the Pongolapoort Dam to supply the northern areas of Zululand. This is the most viable permanent option as it is well situated close to a reliable source of raw water. The necessary applications for abstraction of water will have to be made both for the package plant and for the proposed permanent regional WTW. Water will be abstracted immediately downstream of a weir on the River. A study is currently in progress to determine the optimal mix of water supply to Areas 1 and 2 from both the Shemula WTW and the proposed regional WTW.

3.1.1.1 Hydrological / Geohydrological Analysis As it is proposed to withdraw water from the Pongolapoort Dam, neither hydrological nor geohydrological analyses have been carried out.

3.1.1.2 Water Balance (DWAF) DWAF controls the releases of water from the Pongolapoort Dam to provide water downstream for normal flow, for the release of water to Mozambique, immediately downstream of the Dam and for the bi-annual flooding of the pans adjacent to the Pongola River.

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3.1.1.3 Medium / Long Term Sustainability The yield of the Pongolapoort Dam had not been recalculated. The yield is adequate.

3.1.2 Infrastructure 3.1.2.1 Power Supply The supply of electricity to new facilities is restricted throughout South Africa. We approached ESKOM to determine the availability of electricity within the study area as this will impact on the location of facilities requiring power such as pump stations and water treatment works. We have supplied ESKOM with our estimated power requirements at proposed facilities.

ESKOM have telephonically responded to our enquiries and stated the following: - • The existing network serving the study area is overloaded. • ESKOM are planning to upgrade the existing networks in order to supply power to individual households throughout the region. • The upgraded network will not be able to supply power to the facilities planned for the bulk water supply. The need to install generators has been confirmed subsequently by independent enquires made by Mhlathuze Water.

ESKOM have not supplied us with plans of their networks.

All new plant will have to be powered by diesel generators for the short to medium term. These generators will be replaced in the future by ESKOM power supply but ESKOM has not confirmed any timelines for this but mention was made of 2013. Capital expenditure will be minimized the closer plants are located to Jozini as overhead power lines will be installed from Jozini to the north. It will therefore be advantageous to supply potable water to communities living in Area 1a by pumping water to the ridge from the south rather than from the north.

3.1.2.2 Generators Generators have been sized to suit the 15 year design demands for Phase 1 of the planned project. The provision of generators adds approximately R 19 million excluding VAT (at February 2009 prices) to the estimated cost of the project. These costs have been included in the estimated costs.

The panels will be designed to accommodate future power supply from ESKOM and the phasing out of the generators.

Refer to drawing no. RB/080015/A/004/- for the localities of the facilities.

3.1.2.3 Water Treatment

A 50kl/hour (1,2Ml/day) package WTW will be supplied by the KZN Department of Local Government and Traditional Affairs for treatment of water for the initial phases of this planned project. The package plant will only meet approximately 60% of the demand for

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Area 1a (or 20% of the demand of the Area 1) and can only be considered as an interim measure as a result. We recommend that potable water from the package plant only be supplied to the southern end of Area 1 (shown as the blue area on drawing no. RB/080015/A/003/-).

A regional WTW may ultimately be constructed downstream of the Pongolapoort Dam to supply the northern areas of Zululand. This is the most viable permanent option as it is well situated close to a reliable source of raw water. The necessary applications for abstraction of water will have to be made both for the package plant and for the proposed permanent regional WTW. Water will be abstracted immediately downstream of a weir on the River.

A WTW with a capacity of approximately 30 Ml/day (including allowances for losses within the works) will be required to provide potable water for the study area, assuming a 30 year design horizon for the WTW. The document “The Regional Bulk Water Supply Master Plan”, drafted by Bigen Africa, proposes a Regional WTW with a capacity of 50Ml/day for the complete area (i.e. from Mtubatuba to the Mozambican border) to be served by the works. This increases to approximately 86 Ml/day if a 30 year design horizon is used.

We have identified a site adjacent to the Pongola River that will be adequate to contain a facility of this size. The area required will be approximately 9ha to 10ha. This will house the treatment facilities, sludge dams and housing for operators. We suggest that additional land is set aside for further future expansion of the WTW, to avoid restrictions being placed on future growth of the proposed works. The area shown on drawing no. RB/080015/A/100 may include existing houses and may need to be refined if agreement cannot be reached with the occupants for them to relocate outside the planned WTW area. The package plant should be sited within the area reserved for the proposed regional works.

A plant with a capacity of approximately 10 Ml/day will be required to cater for the 15 year demands of Areas 1 and 2. This increases to approximately 15Ml/day for a 30 year design horizon for Areas 1 and 2.

A plant with a capacity of approximately 19 Ml/day will be required to cater for the 15 year demands of Areas 1 and 2 plus Shemula. This increases to approximately 30Ml/day for a 30 year design horizon for Areas 1 and 2 plus Shemula.

3.1.2.4 Bulk Mains; Options We have considered a number of issues with the design and phasing of the installation of the bulk mains that will ultimately serve the study area. These are discussed in some detail hereafter and include: - 1) The topography of the study area. 2) The demands arise from 3 separate areas i.e. i) Area 1: The area between Jozini and the Ingwavuma River, west of the Shemula Water Supply Scheme area. ii) Area 2: The area between the Ingwavuma River and the Mozambique border, west of the Shemula Water Supply Scheme area. iii) The Shemula Water Supply Scheme area.

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3) The sources of potable water from existing or planned WTW’s. 4) Power supply.

We have summarised our recommendations in the section headed “Proposed Phasing and Distribution.”

A) Topography

The study area includes the Lebombo Mountain Range to the west. Ground levels vary between approximately 150m along the base of the foothills on the east of the range to between 600m and 750m along the top of the range.

The plains east of the range within the study area generally lie between 80m and 170m, with the ground falling towards the Pongola River. Hills within the plains rise to as high as 260m approximately.

We propose dividing Area 1 into 2 supply zones i.e. those communities resident along and on the mountain range (Area 1a) and those communities living in the lower lying plains to the east of the mountains (Area 1b). Although the whole study area can be supplied from reservoirs placed strategically along the mountain range, this would necessitate lifting all the potable water to these reservoirs. We do not recommend this as the operational costs will increase dramatically. We have therefore not explored this option further.

Ground levels within both these supply zones vary by significantly more than the maximum of 90m allowed for pressures within water reticulation. The distribution networks will therefore have to include supply sub – zones, each fed from breakwater tanks (or pressure reducing valves) and placed to restrict pressures within the reticulation to below 9bar. We have not investigated siting of these breakwater tanks but have concentrated on siting the main reservoirs.

We also recommend the installation of flow control valves on the gravity mains feeding the Shemula WTW (Reservoir A; should the Shemula WTW be phased out), Reservoir 2e (for Alternative 1) and the Shemula North Reservoir for Area 2. This is essential to avoid unnecessary expenditure on the gravity bulk main from Jozini to the north. If the flow control valves are omitted, the diameter of the gravity main must be increased over and above that which we have allowed for in our costing.

The selection of reservoir sites is also affected by whether consumers on the mountain range are supplied from the: - • Alternative 1: Northern end of the range (Ingwavuma) or from • Alternative 2: Southern end of the range nearer Jozini.

We have assumed that the pipelines’ routes will follow the existing gravel road (Road R1) along the crest of the mountain range. This will facilitate access for maintenance and operation of the bulk mains.

A1) Area 1a • Alternative 1: Ridge fed from North

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Refer to drawing number RB/080015/A/002.

Three reservoirs will be required for this alternative viz. Ingwavuma Extension, Ridge Central and Ridge South. The Ingwavuma Extension reservoir will be constructed to supplement the existing Ingwavuma Reservoir supplying the rural communities surrounding Ingwavuma. This reservoir will be constructed at the highest point within the whole supply zone. The planned Ingwavuma Reservoir can supply all of the consumers resident in Area 1b but not those resident in the southern portions of the Range during peak demand periods.

It will therefore be necessary to construct the Ridge South Reservoir to supply the residents in the southern and central areas of Area 1a. Although this reservoir can be fed under gravity from the Ingwavuma Reservoir, supply will be insufficient to meet the full demand from Ridge South Reservoir. We therefore propose construction of another reservoir, Ridge Central Reservoir, together with a pump station, Ridge Central Pump Station. Water will be pumped to Ridge South Reservoir by Ridge Central Pump Station, from Ridge Central Reservoir. Ridge Central Reservoir will be fed under gravity from the Ingwavuma Extension Reservoir.

• Alternative 2: Ridge fed from South

Refer to drawing number RB/080015/A/003.

Three reservoirs will also be required for this option viz. Ridge South, Ridge Central and Ridge North. The areas fed from the existing Ingwavuma Reservoir will remain as is and will not be linked to the proposed new bulk supply mains. This will reduce capital expenditure on rising mains, bulk gravity mains and operating expenses.

The Ridge Central Pump Station will also be constructed adjacent to the Ridge Central Reservoir but in this case, water will be pumped to the Ridge North Reservoir from the Ridge Central Reservoir. In this instance, Ridge Central Reservoir will be gravity fed from Ridge South Reservoir. Consumers within Area 1a will be supplied from the Ridge South and Ridge North Reservoirs.

• Pump Stations

The philosophy was adopted to limit pumping heads to 250m for the Shemula Scheme. This was done to ensure that the SABS 1200 standard specifications could be used for all of the civil construction works. We propose adoption of the same design philosophy to ensure continuity of the design philosophy.

Three pump stations will be required for both of the above options.

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i) Alternative 1: Ridge fed from North

We propose that new pump stations be built adjacent to the existing facilities supplying Ingwavuma Reservoir and that these replace the existing plant. The capacities of the existing reservoirs at each pump station will also have to be upgraded. We refer to these pump stations and reservoirs as 2e, 2f and 2g. Reservoir 2e will be fed under gravity by the proposed bulk main from Jozini. The new rising main will follow the route of the existing rising main. We have allowed for the new facilities to replace the existing facilities.

ii) Alternative 2: Ridge fed from South

We propose that the rising mains follow the existing gravel road (Road R1) up to the top of the Lebombo Range. We have selected pump station sites so that the pumps all operate under approximately the same conditions. Each pump station will pump to a reservoir supplying the pump station adjacent to it. We refer to these pump stations and reservoirs as Jozini Main, Ridge Stage 1 and Ridge Stage 2. Jozini Main Reservoir will also feed the proposed gravity bulk water main north from Jozini.

We have sized the reservoirs to limit the number of pump starts per hour and to ensure that the reservoirs do not run dry during normal daily operation.

A2) Area 1b

The higher ground within this area is found along its western boundaries, within the foothills of the Lebombo Mountain Range. Two roads serve this area i.e. R2 and R3. R2 lies nearest the western edge of the Area. R3 follows the eastern edge of the Area and is generally at a lower altitude than R2 along its whole length. There is no suitable high ground close to Road R3 on which reservoirs can be sited, from which the reservoirs will adequately serve their surroundings. Elevated tanks would therefore be required if this route is selected for the bulk main. We have proposed that the bulk main from Jozini to the north follow Road R2. Reservoirs can then be sited within the foothills along the route. The reticulation will generally be supplied from these reservoirs but some areas may be supplied directly off the bulk main.

This bulk main will draw water from the Jozini Main Reservoir, at a level of approximately 280m sited to the west of the main road R3 from Jozini to the north. Our investigations show that Jozini Main Reservoir cannot be located at an elevation lower than this if water is to be fed under gravity to the existing Shemula Supply Scheme Reservoir.

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We have assumed that the proposed regional WTW will be sited at a level of approximately 80m on the northern bank of the Pongola River, approximately 3km downstream of the Dam wall. This may well be revised when we receive the 100 year flood lines for the Pongola River from DWAF. DWAF have subsequently suggested that water may be abstracted from the wall. Raw water abstraction, which has been costed, may therefore not be required. Further investigations will be necessary in the preliminary design phase of this project.

The difference in levels between the Jozini Main Reservoir and the Regional WTW necessitates the construction of an intermediate reservoir between the two facilities. We have located this reservoir adjacent to an existing reservoir east of Road R3 and named it Jozini Local Reservoir. We have named the existing reservoir Othobothini Reservoir and increased its capacity to cater for an increased demand from the reservoir.

B) Demand Areas

The total average daily demand for Areas 1 and 2 and the Shemula Scheme is estimated to be approximately 200l/sec (720m 3/hour). Shemula makes up about 51% of this amount. As the Shemula WTW has recently been upgraded, it will be unlikely that the WTW will be phased out in the foreseeable future. This must be considered when sizing and planning the phasing of the bulk mains feeding the northern sections of the study area.

Areas 1 and 2 currently do not have reliable potable water supplies and should therefore enjoy priority with respect to development of supply schemes to serve them. Ingwavuma and the rural communities surrounding it fall within Area 2 and receive water from the Shemula Scheme.

The proposed bulk main that will supply Area 2 passes through Area 1. Area 1 will therefore be supplied with potable water before Area 2 is supplied. Should the Shemula WTW be identified as the better supply to Area 2, this could affect when Area 2 receives water.

3.1.2.5 Water Reticulation

The water reticulation required to distribute potable water from the main reservoirs identified and costed in this study, to the residents within the supply areas, should be designed and constructed in alignment with the provisions of the IDP of the Jozini Municipality.

The reticulation has not yet been designed but will be designed to supply 25l per capita per day via community standpipes. Bulk mains have been sized to provide 60l per capita per day.

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The cost estimate for reticulation has been obtained by allowing a cost of R 1881 per capita for the 2023 projected population. The cost will be revised once reticulation design has been done.

3.1.2.6 Dispensing

Potable water will be supplied via community standpipes sited to provide water to residents at a maximum walking distance of 200m.

3.1.3 Water Quality The scheme has not been designed to supply water for agricultural use. There is no institutional demand of significance within the area. Supply of potable water to SANS 241 has therefore only been considered.

3.2 Engineering Consideration 3.2.1 Planning Norms and Design Parameters • Materials

A variety of pipe materials have been costed for installation in the various components of the Scheme. This arises from consideration of costs, availability, as well as the topography. The rising mains have been costed as steel due to the topography and rocky nature of the terrain. uPVC pipes have been costed for the gravity mains, for pipe diameters of 400mm and less. GRP pipes have been costed for gravity mains of diameter greater than 400mm.

• Safety Margins

• Supply of electricity for the WTW and pump stations is a matter of concern. Diesel generators have been costed at all facilities requiring power. Only a duty generator has been allowed for with no standby power available, in the event of failure of the duty plant. Approximately R 17,1 million extra (excluding VAT and contingencies) will be required for the provision of standby plant.

Benefit will be derived from the retention of the Shemula WTW, as the study area will be supplied from two plants. It will be unlikely for both plants to fail or shut down simultaneously. In the event of failure of one or other WTW, the other plant will continue operation, thus lessening the impact on consumers, should they only be supplied from one plant. This will not be of benefit for water supply to Phase 1a.

• Bulk reservoirs have been sized to provide 48 hours storage.

• A seasonal peak factors of 1,5 and a summer peak factor of 3 have been used.

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• Access for O & M

Investigations for the installation of bulk infrastructure were confined to the area south of the Ingwavuma River. As access for the operation and maintenance of any completed scheme is of paramount importance, bulk pipeline route investigations were restricted to the main access roads between the north and south. These are identified on the drawing as Roads R1, R2 and R3.

R1 follows the ridge of the Lebombo Mountain range. The altitude along the ridge varies between 560m and 746m approximately. R1 is a gravel road in poor condition.

R2 follows the base of the foothills to the east of the Lebombo Mountain range. This road used to be the main access road serving the communities north of Jozini. The altitude along this road varies between 120m and 260m approximately. R2 is in fairly poor condition.

R3 is asphalt surfaced and replaced R2 as the main road serving the communities north of Jozini. The road is in fair condition. The altitude varies between 80m at its northern extremity and 170m near the Pongola Dam. The majority of this road falls between 80m and 110m in height.

• Site Selection for WTW

Raw water will be abstracted downstream of the Pongola Dam. Options considered included abstraction of water from the irrigation canal following the southern bank of the river and from the Pongola River at the weir approximately 1km downstream of the Dam wall. This point is favoured by DWAF.

Suitable sites available for the WTW are restricted by topography, the 100 year flood line and either urban or rural development. Urban development is restricted to the southern bank of the Pongola River. The site identified will ultimately house a WTW with a 30 year design life.

A 50kl/hour package treatment plant will be supplied to the uMkhanyakude District Municipality to provide potable water to consumers in the initial stages of the project. This will be replaced by the regional WTW once funding for its construction is made available.

The District Municipality will be required to enter into negotiations with the Tribal Authorities to obtain a site for the WTW. We estimate that an area of approximately 10ha will be required for the WTW. Drawing no. RB/080015/A/100 shows the preferred location and the area required. The site can only be finalised on receipt of the 1:100 year flood lines from DWAF and after negotiations with all relevant role players.

3.2.2 Existing Infrastructure The study area bounds and also includes areas currently supplied from the Shemula WTW. This infrastructure will be retained and linked to this scheme. Drawing no. RB/080015/A/001 shows the approximate boundaries of the Shemula Scheme, together with the boundaries of the study area.

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There are a number of other small, local schemes drawing water from springs or boreholes. These have been reported by the social facilitator as generally not functioning, largely as a result of water committees no longer playing a role within the community. This reticulation will be retained within the scheme’s reticulation, if still in good condition.

3.2.3 Proposed Infrastructure 3.2.3.1 Physical Design Considerations • The majority of the specific design considerations are discussed in section 3.1.2. • 3 pump stations have been provided to lift the water from the main supply reservoir (Jozini Main) to the ridge of the Lebombo Mountains. Lifts of less than 250m have been designed. This is in accordance with the existing main feeding water from the Shemula scheme to Ingwavuma. This also simplifies contract documentation and construction specifications as the SABS 1200 standard civil construction specifications can be used for the whole project. • An investigation is currently in progress to determine the optimal solution to supply water to Area 2, north of Ingwavuma. Options of water supply to the area include supply from the existing Shemula WTW and the Regional plant just downstream of Pongolapoort Dam.

Proposed Phasing and Distribution

We propose the following phasing of the construction of a regional scheme to supply Areas 1, 2 and Shemula: - • Construct the gravity bulk main from Jozini north in 2 phases. The 1 st phase will cater for demand from Areas 1 and 2. The 2 nd phase will replace Shemula WTW, if this is determined to be the optimal solution in the continuing investigation. Construction of this phase must be planned to coincide with the Shemula WTW reaching its full supply potential. • Construct a 10Ml/day WTW as the minimum to supply Areas 1 and 2. The supply of water from the regional plant is currently under review and the option of supplying water to Area 2 from the Shemula WTW may be more efficient. When the Shemula plant reaches capacity, a 30Ml/day plant will be required to cater for the Shemula ADD in addition to the growth, should the Shemula plant be phased out. We have costed a 10Ml/day plant followed by a 30Ml/day plant. A 20Ml/day plant will be required if the Shemula WTW is phased out immediately with the next phase being a duplication of the original 20Ml plant. • Supply Area 1a from the south. The existing Ingwavuma pumping scheme can then remain as is. The phasing that should be considered for the pumping schemes is to stagger installation of pumps. The rising mains proposed are 200mm Ø and will be replaced by 2no. 150mm pipes if their installation is phased, with little saving. • We propose a 600mm Ø pipe for the high lift rising main from the WTW to the Jozini Local Reservoir and from Jozini Local to Jozini Main Reservoir. This can also be phased by installing 2 no. 400mm Ø pipelines in parallel; this phased option has been included in the cost estimates. This phased installation should be undertaken simultaneously with the upgrading of the WTW and the gravity bulk mains.

3.2.3.2 Bill of Quantities The cost estimates tabled below are for Phases 1 and 2. The costs reflected under Phase 1a are for the development of the area that may be supplied by the package

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WTW. The costs in phase 1 are inclusive of the costs in Phase 1a. The costs in Phase 2 are additional to those of Phase 1. Costs exclude VAT.

PHASE 1a Item Unit Quantity Amount WTW (package plant) Ml/day 1,2 R 0 Pump stations including raw water abstraction No. 6 R 18 317 417 Diesel Generators No. 6 R 7 827 571 Bulk storage reservoirs and bulk mains R 93 168 909 Reticulation network @ R 1881 pp R 33 432 333 Infrastructure Cost R 152 746 230 Planning, design and supervision (based on R 39 595 157 escalated costs) Institutional and socio-economic costs R 1 600 000 Environmental costs R 500 000 Sub -total R 194 441 387 CPA R 31 785 718 Sub -total R 226 227 105 Contingencies 15% R 33 934 066 TOTAL CAPITAL COST R 260 161 171

PHASE 1 complete (includes Phase 1a) Item Unit Quantity Amount WTW (extension) Ml/day 10 R 33 527 886 Pump stations including raw water abstraction No. 7 R 32 135 926 Diesel Generators No. 7 R 18 580 019 Bulk storage reservoirs and bulk mains R 168 406 002 Reticulation network @ R 1881 pp R 63 815 095 Infrastructure Cost R 316 464 928 Planning, design and supervision (based on escalated costs) R 79 524 741 Institutional and socio-economic costs R 2 400 000 Environmental costs R 700 000 Sub -total R 399 089 669 CPA R 138 925 229 Sub -total R 538 014 899 Contingencies 15% R 80 702 235 TOTAL CAPITAL COST R 618 717 133

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PHASE 2 (excluding Phase 1) Item Unit Quantity Amount WTW (extension) Ml/day 30 R 102 846 779 Pump stations including raw water abstraction No. 8 R 7 596 820 Diesel Generators No. 8 R 0 Bulk storage reservoirs and bulk mains R 133 402 801 Reticulation network @ R 1881 pp R 30 608 656 Infrastructure Cost R 274 455 056 Planning, design and supervision (based on escalated costs) R 99 769 541 Institutional and socio-economic costs R 1 200 000 Environmental costs R 300 000 Sub -total R 375 724 597 CPA R 852 255 065 Sub -total R 1 227 979 662 Contingencies 15% R 184 196 949 TOTAL CAPITAL COST R 1 412 176 611

4. INSTITUTIONAL SUSTAINABILITY 4.1 Community Structures 4.1.1 Organisations and Leadership Profiles The study area incorporates 3 Traditional Authorities namely, Mathenjwa Traditional Authority, Nyawo Traditional Authority and the Mngomezulu Traditional Authority with 39 sub-wards all falling within the Jozini Local Municipality.

Communication within the community relies on the traditional structures and local municipal councillors. This method is functional within the study area. Both parties have been contacted concerning the proposed project.

The existing minor water schemes within the area are poorly affected by the lack of or dormant water committees and in addition by water committees not fully understanding their function.

A community awareness programme will have to be undertaken to ensure all parties area aware of their roles and responsibilities.

The area is rural with the traditional leadership still playing a strong role. Women are however actively engaged in community affairs. Their role may need to be strengthened by facilitation and negotiation within some of the communities.

4.1.2 Level of Community Awareness and Development The most important element of the study was to establish the extent of community participation and awareness around the current water provision in the area. In this regard, meetings were held with various community leadership structures including the

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Traditional Authorities to ascertain the level of awareness and the existence of Water Committees, their roles, functions and influence in the extension of the scheme to cover under-served communities.

In this regard, we were able to establish that most of the dysfunctional water sources such as boreholes were to some degree influenced by the lack of or dormant water committees that did not understand and or perform their roles as required.

It should be noted that only limited interaction has taken place with the beneficiary communities to date, due to time and budgetary constraints. Local enumerators were employed to interview a random sample of the residents totalling approximately 35% of the population within each sub-ward. A questionnaire was supplied to the enumerators by Sakisizwe. This document contained all the relevant queries to be posed to the interviewees by the enumerators.

4.1.3 Income Levels and Sources of Income The questionnaire included queries concerning sources of income. The sources included subsistence farming, migrant workers, tourism, social grants and piece work.

The average income is approximately R 1500 per household.

4.1.4 Community Involvement The communities have to date only been involved with initial enquiries to determine the level of support for water supply within the study area. A more through programme will be required should the project proceed.

4.2 Water Service Authority 4.2.1 Responsibility The WSA has a duty to all consumers and potential consumers in its area of jurisdiction to ensure efficient, affordable, economical and sustainable access to water services. It also has the duty to draft a water services development plan (WSDP). Details are contained in the Water Services Act no. 108 of 1997.

4.2.2 Status and Proficiency The WSDP is being reviewed in line with the IDP.

4.3 Water Service Provider 4.3.1 Section 78 Determination

The Section 78 is currently being reviewed and implemented.

4.3.2 Status and Proficiency of Selected WSP UDM are the WSP within the majority of the area. A minor portion of the study area, bordering on the eastern shore of the Dam, falls within the Zululand District Municipal

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area. This area is not populated and currently not served by a water scheme. Some tourist lodges may be developed within this area and cost recovery from these entities should be relatively simple.

UDM gazetted their byelaws in November 2006 and are in the process of rolling these out to the communities within the Municipal boundaries.

The WSP’s are: - • Bulk Mhlathuze Water • Reticulation UDM

4.3.3 Consumer Customer Relationship The byelaws, as gazetted by uMkhanyakude District Municipality in November 2006, set out these relationships.

4.4 Legal Requirements 4.4.1 Water Use Registration (DWAF) The proposed scheme registration data has been submitted to DWAF for approval.

4.4.2 Project Registration (DEA) The proposed scheme has to be registered with DAEA and / or DEA. Both the proposed WTW and portions of the proposed bulk mains (pipes of diameter greater than 350mm) will require an Environmental Scoping and / or an Impact Assessment. This process may take approximately 12 months to complete and will be carried out during the project design phase.

5. ECONOMIC / SOCIO ECONOMIC ANALYSIS 5.1 Infrastructure 5.1.1 Initial Capital Investment Cash Flow The table below only reflects the cash flows for Phase 1a and Phase 1b that together comprise Phase 1 of the proposed project. The cash flow for Phase 2 has not been included as the cost estimate and cash flow may be affected by the findings of the study currently in hand concerning the use of the Shemula WTW and final determination of its supply area.

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Cash Flow Month Phase 1a 1b 1 complete 1 R 1 699 798 R 1 699 798 2 R 1 699 798 R 1 699 798 3 R 1 699 798 R 1 699 798 4 R 1 699 798 R 1 699 798 5 R 1 699 798 R 1 699 798 6 R 1 699 798 R 1 699 798 7 R 8 359 898 R 8 359 898 8 R 8 359 898 R 8 359 898 9 R 8 359 898 R 8 359 898 10 R 8 359 898 R 8 359 898 11 R 8 359 898 R 8 359 898 12 R 8 359 898 R 8 359 898 13 R 6 660 100 R 1 663 733 R 8 323 832 14 R 6 660 100 R 1 663 733 R 8 323 832 15 R 6 660 100 R 1 663 733 R 8 323 832 16 R 6 660 100 R 1 663 733 R 8 323 832 17 R 6 660 100 R 1 663 733 R 8 323 832 18 R 6 660 100 R 1 663 733 R 8 323 832 19 R 6 660 100 R 1 663 733 R 8 323 832 20 R 6 660 100 R 1 663 733 R 8 323 832 21 R 6 660 100 R 1 663 733 R 8 323 832 22 R 6 660 100 R 1 663 733 R 8 323 832 23 R 6 660 100 R 1 663 733 R 8 323 832 24 R 6 660 100 R 1 663 733 R 8 323 832 25 R 6 660 100 R 6 660 100 26 R 6 660 100 R 6 660 100 27 R 6 660 100 R 6 660 100 28 R 6 660 100 R 6 660 100 29 R 6 660 100 R 6 660 100 30 R 6 660 100 R 6 660 100 31 R 6 660 100 R 6 660 100 32 R 6 660 100 R 6 660 100 33 R 6 660 100 R 6 660 100 34 R 6 660 100 R 6 660 100 35 R 6 660 100 R 6 660 100 36 R 6 660 100 R 6 660 100 37 R 6 660 100 R 6 660 100 38 R 6 660 100 R 6 660 100 39 R 6 660 100 R 6 660 100 40 R 6 660 100 R 6 660 100 41 R 6 660 100 R 6 660 100 42 R 6 660 100 R 6 660 100 43 R 14 107 965 R 14 107 965 44 R 14 107 965 R 14 107 965 45 R 14 107 965 R 14 107 965 46 R 14 107 965 R 14 107 965 47 R 14 107 965 R 14 107 965 48 R 14 107 965 R 14 107 965

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Month Phase 1a 1b 1 complete 49 R 14 107 965 R 14 107 965 50 R 14 107 965 R 14 107 965 51 R 14 107 965 R 14 107 965 52 R 14 107 965 R 14 107 965 53 R 14 107 965 R 14 107 965 54 R 14 107 965 R 14 107 965 55 R 14 107 965 R 14 107 965 56 R 14 107 965 R 14 107 965 57 R 14 107 965 R 14 107 965 58 R 14 107 965 R 14 107 965 59 R 14 107 965 R 14 107 965 60 R 14 107 965 R 14 107 965 61 R 14 107 965 R 14 107 965 62 R 14 107 965 R 14 107 965 63 R 14 107 965 R 14 107 965 64 R 14 107 965 R 14 107 965 65 R 14 107 965 R 14 107 965 66 R 14 107 965 R 14 107 965 TOTAL R 260 161 171 R 358 555 963 R 618 717 133

5.1.2 Long Term Operation and Maintenance Cost The O&M costs have been based on the following percentages of capital cost: -

Calculation Percentages Discipline Percentage of Capital Cost Mechanical 4% Electrical 4% Pipe Lines 1,5% Structures 1%

O&M Costs; Total infrastructure Description Phase 1a Phase 1 Phase 2 (Package plant) Mechanical cost R 494 437 R 469 691 R 1 362 844 Add package WTW R 247 423 R - R - WTW labour & treatment costs R 752 227 R 1 518 856 R 3 515 478 Electrical cost R 211 063 R 332 150 R 950 143 Pipe costs (bulk) R 1 074 543 R 1 578 971 R 2 754 536 Pipe costs (reticulation) R 501 485 R 455 741 R 459 130 Reservoirs costs R 242 532 R 23 843 R 161 983 Estimated Total R 3 523 710 R 4 379 251 R 9 204 113

The O&M costs per phase are accumulative with the previous phase.

No provision has been made for electrical power consumption in the above. It is anticipated that ESKOM will supply power to the facilities during the operation of Phase

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1. The operational costs of the generators have been tabled hereunder, both for the Phase 1a (package plant operation) and Phase 1b (full WTW operation).

Generator Operational Costs Installation fuel cost Fuel Costs Maintenance Costs (rand/l) (rand/annum) (rand/annum) Phase 1a (Package Plant operation) R 10 R 8 230 000 R 120 100 Phase 1b (10Ml/day WTW operation) R 10 R 17 451 000 R 0 . The generator running costs per phase are accumulative with the previous phase.

The O&M costs for Phase 2 of the project have not been calculated as these will depend on whether or not the Shemula WTW will be retained and used to supply water to Area 2.

5.1.3 Replacement / Refurbishment Cycle Cost No allowance has been made for the replacement of the generators as we expect that ESKOM will be able to supply power to the sites before the generators must be replaced. The estimates allow for replacement / refurbishment of the electrical panels, pumps and mechanical plant at the WTW for the recommended option.

Items Phase 1A Phase 1B Phase 2 Mechanical R 6 878 477 R 10 878 538 R 29 886 924 Electrical R 5 306 253 R 7 658 968 R 20 836 476 Total R 12 184 730 R 18 537 506 R 50 723 400

The replacement / refurbishment costs per phase are accumulative with the previous phase. Costs exclude VAT.

5.2 Social and Socio Economic Opportunities The bulk regional planning for water supply within uMkhanyakude District Municipality (UDM) is currently in progress. This involves the adjacent District Municipalities. UDM’s WSDP is currently also under review and this project will be considered together with other IDP priorities. The co-ordination necessary for the successful bulk regional planning of water supply provides sufficient opportunity for the required synchronization with other development proposals within the region.

5.3 Training, Facilitation and Capacity Building Scope of Work Training, facilitation and capacity building will be divided between accredited and non- credited trainers, dependant on the skills required and availability of approved companies. Training will be geared towards the construction industry (particularly in the water related fields), both in the technical and administrative fields. The following fields will be considered: - • Sub –contractors • Semi –skilled personnel • Labourers • Project steering committees • Operation and maintenance

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The following skills, amongst others, will be considered: - • Clerical • Book keeping • Community liaison / administration • Plumbing • Carpentry • Steel fixing • Excavation • Health and Safety • Water treatment • Concreting

Health related matters will be addressed by the Department of Health through schools and the distribution of flyers.

It is anticipated that the split between accredited and non – accredited training will involve approximately the following personnel: -

Training Male Female Youth Accredited 15 15 20 Non – accredited 300 200 200

5.4 Cost Estimates The estimates below reflect that the supply of water to Area 1a is more economical from the south than from the north. This has therefore been selected as the preferred option.

Option 1; Phase 1: Option 2; Phase 1 Item (Area 1a supplied (Area 1a supplied Phase 2 from North) from South) Infrastructure Cost R 279 499 532 R 252 649 834 Contingencies (15%) R 63 815 095 R 63 815 095 Planning, design and R 343 314 627 R 316 464 928 R 274 455 056 supervision P & G’s (20%) Institutional and socio- R 51 497 194 R 80 702 235 R 184 196 949 economic costs Environmental costs R 79 636 363 R 79 524 741 R 99 769 541 TOTAL CAPITAL COST R 2 400 000 R 2 400 000 R 1 200 000 Refurbishment / R 700 000 R 700 000 R 300 000 replacement cost Annual recurring cost R 477 548 184 R 479 791 904 R 559 921 547

Estimates exclude VAT.

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5.5 Net Present Value / Socio Economic Quantification

Option 1 Option 2 Total Capital Cost R 477 548 184 R 479 791 904 Refurbishment / Replacement Cost R 33 866 682 R 30 722 236 Annual Recurring Cost R 10 717 363 R 7 902 961 Net Present Value (8% inflation; R 694 322 222 R 619 507 324 15% interest; 20 years) Socio-economic Opportunities The opportunities are common to both options and are summarised in section 5.3 above.

6. FINANCIAL VIABILITY

6.1 Capital Investment 6.1.1 Funding sources

Funding Source Basic Level of Service Higher Level of Service Conditional Government Grant Phase 1a: R 260 161 171 / Subsidy Phase 1 complete: R 618 717 133 Conditional Donor Grant Municipal Budget Grant Municipal Loans TOTAL Phase 1a: R 260 161 171 Phase 1 complete: R 618 717 133

Estimates exclude VAT. The costs for Phase 1 complete include the costs for Phase 1a.

6.2 Long Term Operation and Maintenance 6.2.1 Cost Recovery uMkhanyakude District Municipality’s bylaws were gazetted in November 2006. The following apply: - • Free basic services 6kl/household/month • Indigent Policy An income ceiling of R 800 per month per household applies • High level of individual household Water will be metered and billed services • Institutional service delivery Water will be metered and billed

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O&M Cost Rand per Annum Estimated O&M cost Phase 1a: R 11 871 175 Phase 1: R 21 963 529 Phase 2: not estimated Anticipated cost recovery 5% Annual deficit Phase 1a: R 11 277 616 Phase 1: R 20 865 353

Estimates exclude VAT. Costs are accumulative from phase to phase. The major portion of the cost estimates consists of fuel for the diesel generators viz. approximately 69% of Phase 1a costs and 79% of Phase 1 costs.

6.2.2 Deficit Funding

Funding Source Basic Level of Service Higher Level of Service Municipal Budget Phase 1a: R 11 277 616 Phase 1: R 20 865 353 Municipal Loans TOTAL Phase 1a: R 11 277 616 Phase 1: R 20 865 353

Estimates exclude VAT. Costs are accumulative from phase to phase.

7. ENVIRONMENTAL ACCEPTABILITY 7.1 Natural Environment Impact Assessment Scoping Exercise An EIA has not yet been undertaken. This will be done during the design phase of the proposed project. It is anticipated that the impact on the environment will not be significant, should the necessary attention be applied during the design phase. In addition, water main routes will largely be confined to existing thoroughfares where the environment has already been impacted to some extent. The area identified for the proposed WTW has also been impacted. The site will be selected to minimise further negative impact on the environment.

7.2 Social Environment 7.2.1 Relocation Considerations It is not anticipated that relocation of existing residents will be required due to the nature of the project. 7.2.2 Socio-economic Opportunity Maximisation The bulk regional planning for water supply within uMkhanyakude District Municipality (UDM) is currently in progress. This also involves the adjacent District Municipalities. UDM’s WSDP is currently also under review and this project will be considered together with other IDP priorities.

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7.3 Environmental Management Plan An EMP has still to be drafted for the project and will be undertaken during the design phase. Issues of concern include restriction of construction activities to the work area; erosion of areas impacted by construction during and after works are complete; littering; avoiding areas of indigenous forest and environmental importance (that must still be identified); worker health and safety matters and liaison with local residents and community structures during construction.

8. CONCLUSION • Water need o Domestic 17477 households (bulk mains) 27299 households (WTW) o Institutional Nil o Agricultural Nil • Water Source Pongolapoort Dam • Raw Water Storage Pongolapoort Dam • Treatment Conventional WTW (30 year design horizon) 15 Ml/day for Areas 1 & 2 30 Ml/day for Areas 1, 2 and Shemula • Dispensing Not in project scope • Total Capital Cost Phase 1a: R 260 161 171 Phase 1 complete: R 618 717 133 (including Phase 1a) The estimates exclude VAT and include CPA over a 4 year period. Funding • Conditional Government Grant Phase 1a: R 260 161 171 Phase 1 complete: R 618 717 133 (including Phase 1a) Estimated O&M Cost Phase 1a: R 11 871 175 Phase 1: R 21 963 529 Phase 2: not estimated

Estimates exclude VAT.

9. RECOMMENDATION It is recommended that the project described in Section 8 above be implemented to provide water services to the communities within the Jozini Municipality in the Mathenjwa, Nyawo and the Mngomezulu Traditional Authority areas at a total capital cost of R 618,7 million excluding VAT.

It is recommended that the Phase 1 of the project start with Phase 1a, at an estimated capital cost of R 260,2 million excluding VAT, starting in the 2009/10 financial year and finishing in the 2012/13 financial year.

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It is further recommended that Phase 2 of this project be linked into the IDP priority list of uMkhanyakude District Municipality.

10. PROJECT APPROVAL 10.1 WSA Management The recommendation in Section 9 above is: - SUPPORTED AND SUBMITTED TO NOT SUPPORTED COUNCIL FOR CONSIDERATION

Municipal Manager Municipal Manager

Date: Date:

10.2 WSA EXCO The recommendation in Section 9 above was: - APPROVED BY EXCO NOT APPROVED BY EXCO

EXCO Resolution:…………………………………….of………………………….………………..2008

EXCO Secretariat: EXCO Secretariat:

Date: Date:

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11. ANNEXURES

Annexure 1: Population Projections Annexure 2: Drawings RB/080015/A/001 Study Area RB/080015/A/002 Proposed Water Supply; Area 1 (Area 1A Supplied from North) RB/080015/A/003 Proposed Water Supply; Area 1 (Area 1A Supplied from South) RB/080015/A/004 Proposed Water Supply; Area 1 (Area 1A Supplied from South); Phases 1A and 1B RB/080015/A/005 Proposed Water Supply; Area 1; Phase 2 (Area 1A Supplied from South) RB/080015/A/006 Proposed Water Supply; Area 1; (Area 1A Supplied from South); Phase 1A, 1B and 2 RB/080015/A/100 General Layout

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ANNEXURE 1

Table 1: Population Projections Sub – space Population 2001 2023 2038 Areas north of Ingwavuma River Bomvini 364 697 1087 Dinabanye 707 1355 2111 Dubulwayo 1108 2123 3308 Ekuhlehleni 1022 1958 3051 Khume 555 1063 1657 Kwa Dinabanye 795 1523 2373 Mabona 348 667 1039 Manyiseni 2581 4945 7705 Mathenjwa 1805 3459 5388 Mathenjwa SP 502 962 1499 Mayaluka 608 1165 1815 Mbadleni 115 220 343 Mkhanyeni 285 546 851 Mpolimpoli 290 556 866 Mshonisalanga 1238 2372 3696 Ngoyameni 1609 3083 4803 Ngoyameni 415 795 1239 Nhlabezinde 481 922 1436 Nkungwini 1810 3468 5403 Nonjinjikazi 224 429 669 Okhlaweni 0 0 0 Oshabeni 1811 3470 5406 Totals 18673 35778 55745

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Sub – space Population 2001 2023 2038 Areas south between Jozini and Ingwavuma River Bhekindoda 3194 6120 9535 Gwaliweni 1686 3231 5033 Ingwavuma SP 1097 2102 3275 Kwa-Mbone 1072 2054 3200 Lebombo 806 1544 2406 Machobeni 1810 3468 5403 Magugu 285 546 851 Mahlabeni 1242 2380 3708 Mbondla 5243 10046 15652 Mngomezulu 0 0 0 Mngomezulu SP 0 0 0 Mombeni 2587 4957 7723 Msinini 1816 3480 5421 Mthonjeni 2959 5670 8833 Ndabeni 2201 4217 6570 Nondabuya 5864 11236 17505 Ntabayengwe 1048 2008 3129 Othobothini 5489 10517 16386 Pikinini Nyamazane 884 1694 2639 Posheni 814 1560 2430 Sihlangwini 2941 5635 8780 Siweni 156 299 466 Yangweni 1551 2972 4630 Zulwini 432 828 1290 Totals 45177 86564 134864

Mngomezulu, Mngomezulu SP and Okhlaweni fall within the area supplied from the Shemula WTW around Ingwavuma. We have therefore reflected zero population for these sub – spaces. Some of the sub – space boundaries cross the Shemula WTW supply area boundary. We have calculated a pro – rata population spread within these sub – spaces based approximately on the distribution of the areas of the sub – spaces within and outside the Shemula WTW supply area.

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ANNEXURE 2

DRAWINGS

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