WS Infrastructure Programme Quarterly Workshop Eastern Cape Presented by: Asanda Gidana, Lungiswa Radebe & Martin Labuschagne Programme Manager Eastern Cape Date: 31 October 2013 Contents A: Expenditure Status 2013/14 1. 2. 3. 4. RBIG MWIG ACIP NTP B: Key Challenges C: Feedback on letter sent on 9 September 2013 D: Project to be “Fast Track” E: Projects to be Launched F: Way forward A1. RBIG : Expenditure 2013/14 Scheme Project Cost DWA Commitment Budget BAS Planned Cash Proposed Invoice s at Total Expenditure Allocation Expenditure Flow end Sept Revised Budget Hand to date 2013/14 30 Sept 2013 2013 2013/14 Reason for Re-allocation/Movement Implementation/ Construction PROJECTS ON IMPLEMENTATION PHASE 11,739,246 N/A Implementaion Readiness 6,307,594 12,500,000 N/A Construction 23,000,000 54,800,110 87,000,000 N/A Construction 4,630,795 5,300,000 4,630,795 7,630,795 N/A Construction 20,000,000 2,672,830 9,000,000 20,000,000 4,038,401 8,000,000 Graaf-Reinet Emergency WSS 29,400,000 11,739,246 4,243,276 3,826,758 Steytlerville Water Supply Scheme 70,000,000 10,307,594 6,307,594 4,461,621 Ndlambe Regional Bulk Water Supply 879,000,000 87,000,000 50,540,848 Sundays River Bulk Water Supply 80,210,407 7,630,795 Xhora East Water Supply 258,541,305 Mncwasa Bulk Water Supply 264,188,000 4,259,262 4,243,276 2,672,830 15,000,000 Claims for Qtr 1 paid from MIG. Project wil recover on Qtr 3&4 Construction 15,000,000 Claims for Qtr 1 paid from MIG. Project wil recover on Qtr 3&4 Construction 4,038,401 Ibika Water supply 49,000,000 5,070,000 3,946,852 772,976 5,446,852 4,719,828 5,070,000 Construction Cluster 4 CHDM Bulk Water Supply 353,914,000 41,041,206 17,793,546 1,096,091 8,206,787 18,889,637 41,041,206 N/A Construction Cluster 9 CHDM Bulk Water Supply 196,000,000 25,702,494 8,444,107 6,398,733 9,093,351 14,842,840 25,702,494 N/A Construction A1. RBIG : Expenditure 2013/14 (cont…) Scheme Project Cost DWA Commitment Budget BAS Planned Cash Proposed Invoice s at Total Expenditure Allocation Expenditure Flow end Sept Revised Budget Hand to date 2013/14 30 Sept 2013 2013 2013/14 Cluster 6 CHDM Bulk Water Supply 324,000,000 31,152,194 Hofmeyer Ground Water Supply 64,000,000 10,481,211 Middleburg Ground Water Supply 14,512,194 15,988,702 4,300,000 0 5,481,211 WSA is currently delaying the award of Material Supply contract. 331,352 1,621,456 N/A Construction 62,115,000 Part of 12/13 advance is currently be cleared, although NT did not approve the rollover Construction 87,896,700 Claims for Qtr 1 paid from MIG. Project wil recover on Qtr 3&4 Construction 40,000,000 Claims for Qtr 1 paid from MIG. Project wil recover on Qtr 3& 4 Construction 331,352 800,000 24,854,615 443,998,000 57,115,000 37,352,506 OR Tambo Mthatha KSD Bulk Water Supply 600,000,000 88,896,700 46,432,992 50,000,000 13,079,471 13,330,432 3,745,908 1,436,919 49,000,000 23,000,000 Mount Ayliff Bulk Water Supply Scheme 183,000,000 15,052,731 4,896,709 7,000,000 Mbizana Regional Bulk Water Supply 780,000,000 83,000,000 62,125,235 24,800,000 35,204,942 Matatiele Bulk Water Supply Scheme 182,000,000 Total 4,975,929,133 10,079,870 932,557 575,890,497 282,281,265 67,721,771 50,682,938 50,178,900 14,516,390 4,896,709 31,152,194 N/A Implementation/ Construction 10,100,000 1,621,456 Xonxa Bulk Water Supply OR Tambo Mthatha KSD Sanitation 1,476,508 Reason for Re-allocation/Movement 15,052,731 N/A Resources increased on the existing contracts, therefore increasing production rate 97,330,177 101,807,594 5,000,000 932,557 10,079,870 N/A 225,189,984 350,003,036 575,890,497 Construction Tender Construction Construction Design A1. RBIG : Expenditure 2013/14 (cont…) Scheme Project Cost DWA Commitment Proposed Budget BAS Planned Cash Invoices at Budget Allocation Expenditure Flow end Sept Total Expenditure Hand Reallocations 2013/14 31 Sept 2013 2013 2013/14 Reason for Re-allocation/Movement Implementation/ Construction PROJECTS ON STUDY PHASE Nahoon Dam / East Coast Bulk Water Supply 3,084,000 1,134,465 1,100,000 1,134,465 3,084,000 N/A Implementation Readiness Ikwezi Bulk Water Supply 2,000,000 282,633 600,000 282,633 2,000,000 N/A Feasibility Kirkwood Water Treatment Works 882,000 0 220,000 0 882,000 N/A Feasibility Misgund Bulk Water Supply 1,300,000 2,500 450,000 2,500 1,300,000 N/A Feasibility Ingquza Hill Regional Bulk Water Supply Scheme 1,000,000 0 350,000 0 1,000,000 N/A Feasibility Ntabankulu Bulk Water Supply 1,000,000 0 220,000 0 1,000,000 N/A Feasibility Sterkspruit Bulk Water Supply 2,500,000 0 660,000 0 2,500,000 N/A Feasibility James Kleynhans BWS 2,000,000 0 451,402 2,000,000 Goods and services 500,000 129,540 230,691 500,000 Total 0 4,975,929,133 14,266,000 590,156,497 720,743 451,402 230,691 1,650,289 283,931,554 1,172,145 68,893,916 3,729,540 228,919,524 2,101,691 352,104,727 14,266,000 590,156,497 Feasibility N/A Feasibility A2. MWIG: Expenditure 2013/14 A3. ACIP : Expenditure 2013/14 WCDM cont… Scheme Project Cost DWA Commitme nt Buffalo City Metro MunicipalityWCDM Budget Allocation 2013/14 BAS Expenditur e@ 25th October 2013 R2m R1,933m (97 %) Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocations 2013/14 Reasons for Reallocation / Movement R1,933m Implementat ion / Construction in Progress Implementat ion in progress Chris Hani DM – Installation of flow meters & pressure reducing valves R4.2m R2 m 0 0 R1 m to Ikwezi LM WCDM (water metering) Amathole DM (Leak repairs & Comm Awareness) R500,000 R500,000 R500,000 0 R500,000 0 Amathole DM (Mhlahlane – DM Commitment ) R400,000 R400,000 0 0 0 R400,000 to ADM Leak repairs & Comm Awareness (NkonkobeLM) No movement i.t.o expenditur-e even though Municipality has committed to have done some work More funds required Funding shortfall A3 : ACIP Expenditure 2013/14 WCDM cont… Scheme Project Cost DWA Commit ment Budget Allocation 2013/14 BAS Expenditu re@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocati ons 2013/14 Reasons for Reallocati on / Movemen t Implemen tation / Constructi on in Progress Camdeboo LM-borehole metering and installed monitoring system in Aberdeen t R1 m R1 m R684,000 (68 %) R25,000 R684,000 Implementa tion in progress Alfred Nzo DM -trained barefoot plumbers busy doing a meter audit and leak detection, also repairing leaks R1 m R1 m R329,000 (33%) R250,000 R579,000 Implementation in progress A3. ACIP : Expenditure 2013/14 WCDM cont…. Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditure @ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Kouga LMRepairing leaking reservoirs and Kruisfontein rising main in Humansdorp R1 m R1 m R222,236.24 (22%) R153,082.56 R285,320 Implementa tion in progress R2.266 m R875,168.92 (39%) R255,000 R603,537 Implementa tion in progress Blue Crane Route LM Repaired reservoirs and replaced old infrastructur e, borehole monitoring equipment and installed Chlorinator Propose d Budget Realloca tions 2013/14 Reasons for Reallocati on / Movemen t Implement ation / Constructi on in Progress A3. ACIP : Expenditure 2013/14 WCDM cont… Scheme Budget Allocatio n 2013/14 BAS Expendit ure@ 25th October 2013 Invoices at Hand Joe Gqabi WCDM R1 m 0 R316,007.71 Makana LM WCDM R2 m R736,034. 76 (37%) R406,259.00 R2 m R1,306,71 9 (65%) Ikwezi LM Water Crisis Interventio n Project Cost DWA Commitm ent R3.2 m Planned cashflow end October 2013 Proposed Budget Reallocati ons 2013/14 Reasons for Reallocati on / Moveme nt Implementation / Construction in Progress Implementation in progress R1,032,498 Implement-ation in progress Implementation in progress A3. ACIP : Expenditure 2013/14 -WWTW Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocatio ns 2013/14 Reasons for Reallocatio n/ Movement Implement ation / Constructi on in Progress Buffalo City Metro Municipality -East Bank WWTW R1 m R1 m (100%) 0 0 Construction in progress Sterkspruit WWTW (Joe Gqabi) R5.70 m R4,027,010 (71%) R1,340,562.3 7 R4,811,134.6 2 Construction in progress Blue Crane Route LM – upgrade of Somerset East WWTW R10 m R2,223,131.8 7 (22%) R1.4 m R2,522,401 Construction in progress Engcobo WWTW Refurbishme nt (CHDM) R1.2 m R28,625.00 (2%) R34,593.00 R68,524.83 Construction in progress A3. ACIP : Expenditure 2013/14 –WWTW cont… Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e@ 25th October 2013 Invoices at Hand Planned cashflow end October 2013 Proposed Budget Reallocatio ns 2013/14 Reasons for Reallocatio n/ Movement Implement ation / Constructi on in Progress Molteno WWTWRaw Sewage Pump Stations Refurbishme nt R1.250 m R409,743 (33%) R332,310 R835,548 Matatiele WWTW Refurbishme nt (Alfred Nzo DM) R1.190 m 0 R163,912 Ndlambe Refurbishme nt of Ndlambe Sewer Pump Stations R1.750 m 0 R85,500 R85,000 Construction to start Sterkstroom WWTW – Phase 2 (Chris Hani DM) R3 m R796,286 R39,141.90 R768,811 Construction in progress Construction in progress Construction has just started A4: NTP – Expenditure 2013/14 AMATHOLE DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress Ngcingwane 1 034 386 1 034 386 0 0 in progress Bangweni 949 000 949 000 0 0 in progress Mangathi 729 512 729 512 0 0 progress Ntlambodaka 868 820 868 820 0 0 in progress Munyu 377 363 377 363 0 0 Complete Mqonci 199 670 199 670 0 0 Complete Mangqosinini 814 000 814 000 Total A4: NTP – Expenditure 2013/14 Scheme Project Cost DWA Commitme nt Ngcisininde 1 027 249 3 * Zagwityi 0 Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress 1 027 249 0 0 in progress 0 0 0 complete Total 6 000 000 Invoices at Hand 6 00 00 1 360 650 A4: NTP – Expenditure 2013/14 CHRIS HANI DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress Sterkstroom 3 000 000 WTW 3 000 000 0 0 0 in progress Cala WTW 5 000 000 5 000 000 0 0 0 progress Nkobongo WTW 2 000 000 2 000 000 0 0 0 in progress Total 10 000 000 10 000 000 A4: NTP – Expenditure 2013/14 • ALFRED NZO DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 Belfort BWS 7 000 000 7 000 000 KwaBhaca SL 8 000 000 BWS 8 000 000 Total 15 000 000 15 000 000 BAS Expenditur e 31 Sept 2013 0 0 Invoices at Hand Planned Cash Flow end Sept 2013 0 2 853 630 0 2 571 896 Proposed Budget Reallocatio ns 2013/14 5 000 000 5 000 000 10 000 000 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress non spending in progress non spending in progress A4: NTP – Expenditure 2013/14 • JOE GQABI DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress Cleaning of 4 472 000 leaking reservoir 4 472 000 0 0 0 in progress Jozana neck 2 445 000 Package plant 2 445 000 0 0 0 in progress Sterkspruit Reservoir 1 400 000 0 0 0 in progress 450 000 0 0 0 in progress 1 400 000 Accomodation 450 000 Of Hershel pumpstation Total 1 500 000 A4: NTP – Expenditure 2013/14 • JOE GQABI DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress Cleaning of 4 472 000 leaking reservoir 4 472 000 0 0 0 in progress Jozana neck 2 445 000 Package plant 2 445 000 0 0 0 in progress Sterkspruit Reservoir 1 400 000 0 0 0 in progress 450 000 0 0 0 in progress 1 400 000 Accomodation 450 000 Of Hershel pumpstation 1 500 000 A4: NTP – Expenditure 2013/14 • O R TAMBO DISTRICT MUNICIPALITY Scheme Mvimvane Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress 2 000 000 0 0 Tender 0 Tender 1,203,500.00 1 203 500.00 0 0 Qaukeni Farm 1,359,356.00 1 359 356.00 0 0 Sithebe 414,700.00 414 700.00 0 0 0 0 Tender Bomvu 941,700.00 941 700 .00 0 0 0 0 Tender Msana 399,740.00 399 740.00 0 0 0 0 Tender Tshisana 934,900.00 934 900.00 0 0 0 0 Tender 77 888.00 0 0 0 0 Tender Ezinkumbini 77,888.00 A4: NTP – Expenditure 2013/14 • O R TAMBO DISTRICT MUNICIPALITY Scheme Project Cost DWA Commitme nt Budget Allocation 2013/14 BAS Expenditur e 31 Sept 2013 Invoices at Hand Planned Cash Flow end Sept 2013 Proposed Budget Reallocatio ns 2013/14 Reason for Reallocation/ Movement Implementa tion/ Constructio n Progress Mangwaneni 1209 348.00 1 209 348.00 0 0 0 0 Tender Nyandeni 0 0 0 0 Tender Zandukwana Mantusini Total 1 265 189.60 1 265 189.60 676 500.00 675 500.00 0 0 0 0 Tender 1 417 178.40 1 417 178.40 0 0 0 0 Tender 10 000 000 10 000 000 2 000 000 B: Key Challenges RBIG • Implementing Agent • Lack of Required/Expected Capacity by other WBs. • Non-compliance of WBs with Implementing Agent Fees, as per Departmental Delegations. • Contractors • Incompetent Contractors appointed in some projects. • Lack of Financial Capacity and cashflow management by some contractors • Approval of Feasibility/ IRS • Delays in approval process of projects as study phase. • IA Agreements • Lack of common understanding of certain clauses within the standard agreements. • Lack of ESKOM power supply by project • Negative effect on project programming, as a result of ESKOM delays B: Key Challenges MWIG • Delays in appointment of service providers due to WSAs’ SCM processes. • Lack of progress and expenditure by most WSAs. • Some WSAs want to change Business Plans due to communities refusing the level of service i.e. demanding water reticulation (standpipes) instead of water tanks. • WSAs wanting to shift funds in between projects. NTP Procurement processes by the municipalities take very long, so the projects implementation starts very late. ACIP B: Key Challenges The main challenge in all municipalities is proper metering of BULK, ZONE and DOMESTIC METERING This makes the determination of water losses and water savings basically impossible!!!!! Technical and Finance sections not working together aggravates the problem!!! Meter readings atrocious in most municipalities!! Region understaffed in WCDM section!!!!! Technical Sections of the WSAs often have high vacancy rate and incompetent staff. Lack of proper leaderships within WSAs WCDM not prioritised or given necessary attention, i.t.o. Resourcing. High staff turnover. B: Key Challenges ACIP •Inefficiency of procurement processes within WSAs •Protests resulting into VANDALISM (e.g BLUE CRANE ROUTE MUNICIPALITY) C: Feedback on letter sent on 9 September 2013 • Provincial Planning Committees – EC Planning Committee in place (to be expanded to include ACIP, MWIG &NTP); meets quarterly – Revised ToR distributed to ECPC members on 31 July 2013 – adoption to be finalized – Chairperson of ECPC is the DWA RPM:RBIG – ECPC in place since 22 July 2011 • Budget re-allocation & acceleration plans for RBIG & ACIP – AP 2.1: Revised again in October 2013 for adjustments – AP 2.2: Funds to be moved from slow-moving projects to fastmoving projects, whilst attending to slow projects’ barriers. Acceleration/ recovery plans were developed and submitted early October 2013. Regular update to be submitted as and when required. C: Feedback on letter sent on 9 September 2013 (2) • Preparing for Audits – AP 3.1 – AP 3.3: Busy sorting out project files for Audit Readiness, however the absence of administrative support is posing a limitation towards the expected outcomes, within the stipulated timeframes. Target date: 15/12. • Transferring of assets & assessment of completed projects – AP 4.1: It is the understanding of the RO that Asset Mngt (NO) is already dealing with this issue. – AP 4.2: Mthatha BW Intervention, Coffee Bay, Tsomo RDP South, Mbhashe BWS & Tsomo RDP2 North- capacity limitations affect this task. Assistance needed. C: Feedback on letter sent on 9 September 2013 (3) • Financial commitment for each project – AP 5.1-5.3: Process followed whenever there is a project recommended for implementation or when there is a change in approved scope of work. – It is the understanding that a submission should be made to Capex when budget is exceeded by more than 15%. NO need to formalize this in writing – Currently working with SCM & Finance to differentiate between a project value and a financial commitment. C: Feedback on letter sent on 9 September 2013 (4) • Performance evaluation of RBIG projects – AP 6.1: Training of M&E staff on performance evaluation still outstanding. Performance evaluation currently done by project management office – AP 6.2: All performance evaluation reports have been submitted, except ORT: KSD Water and Sanitation (to be submitted on 31/10) • Provincial bulk master planning – AP 7.1: Person nominated to manage the PBMP: Mr M. Vonco and Mrs A. Gidana • ACIP guidelines – Indicate whether ACIP document was circulated to any external stakeholders; also whether any comments were provided on the document D: Projects to “Fast Track” RBIG • Greater Mbizana RBWS • Ndlambe BWS • KSD PI • James Kleynhans BWS D: Projects to “Fast Track” ACIP The only WCDM not doing well is CHRIS HANI DM. They had a dispute with the DWA on the fact that their allocation was reduced from R4M to R2M. A reply had been sent to the DM in July 2013 after which it took long for the DM to reply. A Business Plan to do awareness and assessment of Waterdown pipeline was only received on October. The DM is of the opinion that they will be able to spend the funding before the end of the financial year! COMMUNICATION ON HIGH LEVEL NEEDED!!!!! E: Projects to be Launched RBIG • Coffee Bay Water Supply Scheme IKWEZI - ACIP • The DWA initially sent a letter to Ikwezi DM indicating that R1M is available for WCDM, however the DM was in dire need for water resources to be developed. The funding was thus used for the drilling of boreholes and to equip them. • However it was mentioned last week that R1M is still available for WCDM • Due to short time meters will be bought since very little metering has been done in Ikwezi which is a huge problem! TREASURY HEAD OFFICE REGION EISH!! MU N WE NEED FUNDING TREASURY HEAD OFFICE REGION ADEQUATELY STAFFED ADEQUATELY CAPACITATED, WELL FUNCTIONING MUNICIPALITY WE WANT TOP UP FUNDING ONTO REVENUE IMESA: Key Challenges F: Way forward A new way of funding projects should be considered since all municipalities are crying for funding but do not have sufficient technical staff to properly implement projects. It is a problem every year, especially where there are no consultants to assist them! Pressure then gets put on understaffed regional personnel to ensure performance and spending! DWA HQ and the Region should have meetings on high level to ensure that the municipality has the ability to implement projects worth millions of rands!!!!! Otherwise DWA must do the implementation for them!! F: Way forward EXTERNAL ASSISTANCE, PSP’s, RRU, WATER BOARDS, OLD BULL SYSTEM??? LET US STOP THROWING MONEY AT OUR PROBLEMS AND FIRTST SOLVE THE PROBLEM LET US FIRST GET THE CAPACITY RIGHT AT THE MUNICIPALITIES PEOPLE WANT SERVICES NOT PROJECTS! F: Way forward A new way of funding projects should be considered since all municipalities are crying for funding but do not have sufficient technical staff to properly implement projects. It is a problem every year, especially where there are no consultants to assist them! Pressure then gets put on understaffed regional personnel to ensure performance and spending! DWA HQ and the Region should have meetings on high level to ensure that the municipality has the ability to implement projects worth millions of rands!!!!! Otherwise DWA must do the implementation for them!! SOMETHING’S WRONG!!!