MOHLAKENG PUMP STATION AND ASSOSIATED INFRASTRUCTURE IMPLEMENTATION READINESS STUDY August 2015 TABLE CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 0 1. INTRODUCTION ................................................................................................................................ 1 2. SCOPE OF THE PROJECT ............................................................................................................. 1 3. METHODOLOGY FOR THE PROJECT ......................................................................................... 2 4. BACKGROUND TO MOHLAKENG OUTFALL SEWER PROJECT .......................................... 2 4.1 Overview of the Project ................................................................................................................. 2 4.2 Westonaria Regional Bulk Sewer Scheme ................................................................................ 2 5. PROGRESS ON THE DEVELOPMENT WESTONARIA REGIONAL SEWER SCHEME ..... 3 5.1 Emergency Refurbishment of the Plant ...................................................................................... 3 5.2 Construction of the Extension of Hannes Van Niekerk ............................................................ 3 5.3 Implementation of Zuurbekom WWTW ....................................................................................... 3 5.4 Proposal of the Urgent Construction of Mohlakeng Outfall Sewer ......................................... 4 6. STRATEGIC AND PLANNING ISSUES ......................................................................................... 4 6.1 Alignment with WSDP and IDP .................................................................................................... 4 6.2 Existing Water and Sanitation Supply Chain ........................................................................... 10 6.3 Alignment with Provincial Growth and Development Strategy .............................................. 11 6.5 Agreement of Need ...................................................................................................................... 12 6.6 Level of Service ............................................................................................................................ 12 6.7 Economic Growth Requirements ............................................................................................... 13 6.8 Functional Criticality of Total Scheme and Specific Components ........................................ 14 6.9 Extent of the Cost ......................................................................................................................... 14 6.10 Available Co-funding .................................................................................................................... 14 7. SOCIAL FACTORS .......................................................................................................................... 15 7.1 The benefitting population:.......................................................................................................... 15 i 7.3 Gini Coefficient ............................................................................................................................. 18 7.4 Job creation ................................................................................................................................... 19 7.5 Proposed water and sanitation tariffs ........................................................................................ 20 7.6 Poverty eradication, Social upliftment and Health Improvement .......................................... 21 7.7 Education Facilities ...................................................................................................................... 21 7.8 Health Facilities ............................................................................................................................ 22 7.9 Recreational Facilities ................................................................................................................. 22 8. ECONOMIC CRITERIA ................................................................................................................... 22 8.1 Economic Sector Analysis .......................................................................................................... 22 8.2 Gross Value Added (GVA) ......................................................................................................... 23 8.3 Economic Growth ......................................................................................................................... 24 8.4 Gross Domestic Product (GDP-R) ............................................................................................ 24 8.5 Location Quotient ......................................................................................................................... 25 8.6 Employment Levels ..................................................................................................................... 26 8.7 Disposable Income ....................................................................................................................... 29 8.8 Economic Criteria Possible Economic Benefits ....................................................................... 30 9. TECHNICAL CRITERIA .................................................................................................................. 33 9.1 Conformity of the Master Plan .................................................................................................... 33 9.2 Appropriateness and Acceptability of Solution ........................................................................ 34 9.3 Appropriate water resource choice & adequate water allocation ......................................... 37 9.4 Compliance to water demand / water conservation objectives. ............................................ 37 9.5 Optimal choice of bulk distribution networks ............................................................................ 37 9.6 Proof of best suited technology (pro‟s and con‟s per option) ................................................ 38 10. INSTITUTIONAL CRITERIA ....................................................................................................... 38 10.1 Asset Ownership .......................................................................................................................... 38 10.2 Confidence in Institutional Capacity .......................................................................................... 38 10.3 Agreement on Infrastructure Ownership ................................................................................... 39 10.4 Agreement on Implementation Responsibility ......................................................................... 39 ii 10.5 Confidence in Implementation Capacity ................................................................................... 39 10.6 History on past Implementation Quality and Performance .................................................... 40 10.7 Agreement on Operating Responsibility ................................................................................... 40 10.8 Proof of adequate staff numbers and skills level ..................................................................... 40 10.9 History on water service interruptions ....................................................................................... 40 10.10 Commitment for the above by institutional leadership ........................................................ 41 10.11 Approval of Institutional Agreement and cooperation between stakeholders ................. 41 10.12 Cost Recovery System ............................................................................................................ 41 10.13 Water Conservation and Demand performance by institution ........................................... 41 10.14 Responsibility and accountability ........................................................................................... 41 10.14.1 The Department of Water and Sanitation ......................................................................... 41 10.14.2 The Water Services Authority – Westonaria Local Municipality.................................... 42 10.14.3 Rand Water ........................................................................................................................... 42 11. FINANCIAL CRITERIA ................................................................................................................ 42 11.1 Available funding .......................................................................................................................... 42 11.2 Conditions and criteria of the RBIG ........................................................................................... 43 11.3 Fit for Mohlakeng Outfall Sewer within the RBIG conditions ................................................. 44 11.4 Budget required ............................................................................................................................ 44 11.4.1 Project costing .......................................................................................................................... 45 11.4.2 Budget Challenge for Westonaria Local Municipality ......................................................... 46 11.5 Capital and operations cost .......................................................................................................