BI-ANNUAL PERFORMANCE EVALUATION REPORT OF
VAAL GAMAGARA BULK WATER SUPPLY PROJECT
NORTHERN CAPE
CHIEF DIRECTORATE: BULK INFRASTRUCTURE PROGRAMME
PERIOD: 01 APRIL 2014 TO 30 SEPTEMBER 2014
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1
Table of Contents
INTRODUCTION .................................................................................................................... 3
2
BACKGROUND TO THE PROJECT ............................................................................................ 3
2.1
Project description .................................................................................................................. 5
2.1.1
Groundwater Investigation .......................................................................................... 5
2.1.2
Addendum to the Feasibility Study ............................................................................ 6
2.1.3
Implementation Readiness Study .............................................................................. 6
2.1.4
Phase 1 Implementation – Appointment of PSP...................................................... 7
3
AREA OF SUPPLY ................................................................................................................... 7
4
PROJECT CONTRACT AND COST ........................................................................................... 10
5
4.1
Allocated Funding for the Groundwater Investigation: ........................................................ 10
4.2
Expected Project Cost for Option 1 ....................................................................................... 10
4.3
Contract Details and Cost ...................................................................................................... 11
4.4
Funding Allocated to the Project ........................................................................................... 12
PROGRESS ON CURRENT PROJECT ....................................................................................... 12
5.1
Groundwater Investigation ................................................................................................... 12
5.2
Addendum to the Feasibility Study ....................................................................................... 13
5.3
Implementation Readiness Study.......................................................................................... 13
5.3.1
Water Use Licence Application Process ................................................................. 13
5.3.2
Environmental Impact Assessment.......................................................................... 14
5.4
Phase 1 Implementation – Appointment of PSP ................................................................... 14
6
RISKS TAKEN AND MANAGEMENT THEREOF ........................................................................ 14
7
PROJECT RESULTS AND BENEFICIARIES ................................................................................ 15
7.1
Beneficiaries .......................................................................................................................... 15
7.1.1
7.2
8
Local Authorities ......................................................................................................... 15
Employment during the Implementation of the Project....................................................... 16
KEY CHALLENGES WITHIN THE PROJECT ............................................................................... 16
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SEPTEMBER 2014
CONCLUSIONS .................................................................................................................... 16
10 RECOMMENDATIONS .......................................................................................................... 16
11 PHOTOGRAPHS ON THE IMPLEMENTATION OF THE PROJECT ............................................... 17
List of Figures
Figure 1: Supply area of Vaal Gamagara Bulk Water Supply Scheme ..................................................... 9
List of Tables
Table 1: Construction Cost (VAT excluded) ........................................................................................... 11
Table 2: Contract details: Drilling and Testing Contractors................................................................... 11
Table 3: Funding to date........................................................................................................................ 12
Table 4: Population of beneficiaries ...................................................................................................... 15
Annexures
Annexure A: Project Implementation Photos
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SEPTEMBER 2014
INTRODUCTION
In terms of Section 10(7)(b) of the Division of Revenue Act No 10 of 2014 (DORA) as
promulgated in Government Gazette No 37595 dated 26 April 2014, the transferring
national officer must submit to National Treasury a quarterly performance report for all
Programmes funded by a Schedule 6 allocation within 45 days after the end of each
quarter, in accordance of the relevant framework.
The Regional Bulk Infrastructure Grant (RBIG) is a Schedule 6 indirect conditional
grant for the benefit in kind of municipalities.
The objective of this Report is to provide a bi-annual performance evaluation report
covering the 1st half of the fiscal year of RBIG funded projects, in compliance with the
DORA. The objective of this evaluation was to determine whether the progress on the
project is commensurate with the expenditure to date as well as to determine whether
the project is still on course in terms of the original planning.
This Bi-Annual performance evaluation report, covering quarters 1 and 2 of 2014/15
fiscal year is for the Vaal Gamagara Bulk Water Supply Project, one of the Regional
Bulk Infrastructure Grant projects currently being implemented by Sedibeng Water,
with Department of Water and Sanitation (DWS).
2
BACKGROUND TO THE PROJECT
The Vaal Gamagara Water Supply Scheme (VGWS) was completed in the late sixties
with the purpose of supplying Vaal River water to the arid areas of the Gamagara
Valley near Postmasburg and north thereof. This was done to enable large scale
diamond mining at Lime Acres and the mining of iron ore and manganese at
Beeshoek, Sishen, Mamatwan, Hotazel and Blackrock. Several local authorities
receive water from the scheme of which the towns of Delportshoop, Postmasburg,
Kathu and Hotazel are the largest.
Later the addition of the Kalahari East Board, a bulk consumer of the VGWS scheme,
brought about further changes in water demand. The Kalahari East scheme was
completed in 1992 to supply domestic and stock water to an area of ± 1 412 000 ha
that includes more than 250 farms.
The VGWS scheme consists of a purification works that can purify 13.27 million m³/a
water, pumps, 11 reservoirs and 370 km of pipes that delivers water to users. The
pipeline has the capacity to convey and import approximately 15 million m³/a into the
D41J and D41K catchments. The 13.27 million m³/a water is augmented by dewatering
activities of the Kolomela, Beeshoek and Sishen mines to lower the groundwater table
to ensure safe mining conditions.
The need for a feasibility study of the VGWS scheme arose from the increase in water
demand experienced by Sedibeng Water because of new water applications and
extension of existing water allocations. The current scheme is operating at capacity
and is not able to supply the future water demand due to the increased water demand,
and the increased water supply interruptions.
The major driving force of the increased water demand is the iron ore and manganese
mining operations. These mines of the Northern Cape produce 84% of South Africa’s
iron ore and 92% of the world’s high-grade manganese deposits are in the Kalahari
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basin. Diamond and lime operations also contribute to the water demand, but to a
lesser degree.
Secondary to the expected increased water demand are water supply interruptions that
are amplified due to the aging infrastructure. The infrastructure, being more than 44
years old, is nearing the end of its useful life span.
The feasibility study was completed in August 2011 and recommends the upgrade of
the total VGWS scheme to supply the water demand of users for the planning horizon
to 2030.
The study indicated the current water demand of 13.7 million m³/a is to increase to
approximately 40 million m³/a by the year 2030. It is projected that the mining sector
will be the largest consumer; consuming approximately 63.5% of the water, whereas
the local authorities and other water users will utilise 14.7% and 21.8% respectively by
2030.
Households in the area supplied by the VGWS scheme are anticipated to increase
from 18 332 in 2010 to 31 367 in 2030 (71% increase) with a projected increase in
population from 77 316 to 129 196 over the same period.
For planning purposes a 20-year design horizon (2010 to 2030) was used. The results
of the hydraulic analyses indicated that the existing infrastructure has insufficient
capacity to accommodate the anticipated 2030 demand. A condition assessment of the
existing pipelines also confirmed the need for refurbishment.
It was assumed that the ultimate scheme must be capable of providing the total
demand from the Vaal River source. The addition of groundwater or mine dewatering
sources would therefore only provide relief in terms of operational supply and water
price.
Planning was performed for three options:



Option 1: Replace the existing scheme with a single pipeline with sufficient
capacity to supply the anticipated 2030 demand.
Option 2: Add capacity to the existing scheme to supply the anticipated 2030
demand by an additional pipeline.
Option 3: Replace the existing scheme with a double pipeline with sufficient
capacity to supply the anticipated 2030 demand.
For all three options the basis was that pumping occurs from the Water Treatment
Works (WTW) near Delportshoop to Clifton and that the rest of the scheme is supplied
from there under gravity with no booster pumps. It was also assumed that over the
pumped sector the scheme would operate at the same pressures as the existing
scheme.
All the strategic and technical alternatives studied were compared mainly on economic
grounds which results in the lowest present value of capital works, operations and
maintenance. A costing and engineering economic analysis was conducted by means
of a Unit Reference Value (URV) for each technical alternative.
From the calculations it was evident that Option 1 has the lowest URV and thus from
an engineering economic point of view, Option 1 - Replace the existing scheme with a
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single pipeline with sufficient capacity to supply the anticipated 2030 demand, is the
recommended way forward.
2.1
Project description
Subsequent to the completion of the study in August 2011, the optimization of Option 1
was considered for augmenting the water resources of the VGWS, i.e. the inclusion of
possible additional groundwater resources (SD sources) that were identified initially as
a short to medium augmentation measure as part of the original study.
Several detailed investigations were conducted of which the groundwater exploration
project was the main element. The scheme was analysed to include the SD
groundwater sources and to determine the benefit from including this additional source.
The optimization analysis of the scheme entailed the replacement of the existing
scheme with a single pipeline with sufficient capacity to supply the anticipated 2030
demand from the Vaal River and the SD groundwater sources. Two demand scenarios
were included in the further study namely the in- and exclusion of the trans-border
demand from Botswana. The options investigated are:

Option 1A - replacement of the existing scheme with a single pipeline with
sufficient capacity to supply the anticipated 2030 demand from the Vaal River and
the SD groundwater sources including Botswana

Option 1A - replacement of the existing scheme with a single pipeline with
sufficient capacity to supply the anticipated 2030 demand from the Vaal River and
the SD groundwater sources excluding Botswana
An addendum to the Feasibility Study was compiled including the groundwater
investigations, hydraulic optimization and costing of Options 1A and 1B and economic
and affordability study.
The following phases of the project entail the completion of the Implementation
Readiness Study (IRS) which includes the Water Use Licensing of the four targeted
well fields, the environmental authorities and the implementation of a communication
strategy amongst others.
Sedibeng Water is in the process of appointing a professional service provider (PSP)
for the design and construction of the most critical section of the scheme between
Kathu and Black Rock.
2.1.1 Groundwater Investigation
The groundwater investigation comprised out of two phases, namely:


Phase I – Assessment of Available Groundwater Resources
Phase II – Development of Groundwater Supply
Phase I was concluded March 2014 and information from this assessment phase will
guide the next phase. Phase II consist of the following:


Public participation processes and all relevant tasks relating to the Water Use
Licence Application (WULA).
Ground geophysical survey to pin point production borehole positions
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

SEPTEMBER 2014
Drafting of tender documentation and related contract for the appointment and
management of drilling and test contractors.
Production borehole drilling, long term test to confirm aquifer sustainability and
water quality sampling
Assessment of the sustainable water supply including the updating of the
numerical model, management recommendation for the production boreholes,
preparation and finalising of the WULA,
The main deliverable from Phase 2 will be the drilling of the production boreholes and
associated testing and licensing. Note must be taken that very little drilling of
production boreholes will be required as most of the drilling were completed in Phase
1.
2.1.2 Addendum to the Feasibility Study
After presenting the project to the Acting Director General (ADG) of DWS the project
team was tasked to compile an Addendum to the August 2011 Feasibility Study which
primary detailed the optimization of Option 1, i.e. when Option 1A and 1B.
During the optimization process, the need to take a different approach to the tariffs was
discussed. This, rather than a previous tariff study which was based on differentiated
tariffs per section of the scheme. Instead uniform tariffs per sector/user group were
suggested and this is examined during the optimization phase. Uniform tariffs per
sector/user group were examined and documented in this new tariff study as part of
the Addendum to the Feasibility Study.
2.1.3 Implementation Readiness Study
The IRS is to provide the required information, as requested by the Department of
Water and Sanitation (DWS) Regional Bulk Infrastructure Grant (RBIG) program, to
apply for a grant from DWS. The grant is required by Sedibeng Water to counter fund
the Vaal Gamagara Bulk Water Scheme.
The IRS addresses strategic and planning issues, social, economic, technical,
institutional, financial, legal criteria and sustainability criteria according to the
implementation phases.
As a result of regular interaction with stakeholders and landowners, Sedibeng Water
and Department of Water and Sanitation (DWS) (formerly known as the Department of
Water and Sanitation (DWS)) found that people were concerned about the number of
different projects in the study area and the lack of consistent messages. It was decided
to prepare a Communication and Stakeholder Engagement Strategy to regarding the
implementation of various aspects of the project. This was done through pro-active and
transparent engagement with stakeholders representing key sectors of society in the
project affected area, namely directly affected landowners, communities in the study
area, Agri-SA Northern Cape, various farmer's unions in the area, existing Water User
Associations, the mines and relevant government departments representing all
spheres of government.
Ongoing support is provided to the DWS and Sedibeng Water to ensure that meetings
take place with stakeholders on a regular basis to keep them abreast of progress.
Telephonic liaison with stakeholders also plays a critical role in ensuring that they are
informed about different actions being undertaken as part of the IRS and the different
components.
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The implementation of the strategy is being implemented and will be on-going for the
duration of the project.
As highlighted above the potential for available groundwater resources in the general
area served or proposed to be served by the pipeline to augment the bulk water supply
was investigated. Several areas were identified as possessing enhanced groundwater
development potential, these areas were designated Source Development (SD) Areas.
Authorisation is required in terms of the National Water Act, 1998 (Act 36 of 1998)
(NWA) for the abstraction of water from these groundwater resources. The NWA
requires that all water use described under section 21 be authorised. Groundwater
abstraction in this case falls within Section 21(a) and will require a water use licence
(WUL).
The Water Use Licence Application (WULA) will contain the following:


Compilation of the required technical information into one technical supporting
summary document; and
Completed water use licence forms.
The objective is as follows:



Confirmation of water uses for the planned abstraction and submission of a
WULA in accordance with the DWS External Guideline as required in terms of
the NWA for the water uses associated with the abstraction;
Compilation of a summary report; and
Submission of the WULAs and summary report to DWS
A broad environmental assessment is in the process of being conducted for the
proposed upgrade of the VGWS relating to the Phase 1 development.
2.1.4 Phase 1 Implementation – Appointment of PSP
Sedibeng Water invited suitable qualified and experienced PSP to submit tenders to
conduct the design, contract documentation and site supervision for the refurbishment
and upgrading of the existing Vaal Gamagara regional water supply scheme Phase 1A
(replace pipeline from Roscoe to the Sishen Western Expansion Project (SWEP)
pipeline and from SWEP to Kathu and Blackrock).
3
AREA OF SUPPLY
The Study Area falls within the Northern Cape Province and is mostly located within
Water Management Area (WMA) 10 with some extension to WMA 14. It covers the
area served/interacting by/with Sedibeng Water’s Vaal Gamagara Scheme.
The local authorities’ water demand are from the 18 332 households (year 2010) that
are anticipated to increase to 31 367 in 2030 (71% increase). The population is
expected to grow from 77 316 in 2010 to 129 196 in 2030.
Based on the norms, number of indigents and associated users, the social component
of the project is calculated. The portion of the pipeline that delivers water to the social
component is 6.1%. This excludes the water that is supplied to possible indigents and
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emerging farmers via the Kalahari East Scheme. This will be quantified in the near
future.
The Kalahari East Scheme currently exports water at approximately 1.8 million m³/a
from the D41J catchment (with the off-take from the Vaal Gamagara pipeline north of
Sishen mine) for stock-farming and related domestic purposes to areas.
Refer to Figure 1 indicating the area of supply.
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Regional Bulk Infrastructure Grant Programme
Figure 1: Area of Supply
Figure 1: Supply area of Vaal Gamagara
Bulk Water Supply Scheme
September 2014
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Regional Bulk Infrastructure Grant Programme
4
September 2014
PROJECT CONTRACT AND COST
The project is managed by the Department of Water and Sanitation Regional Office in
the Northern Cape and implemented by Sedibeng Water.
The total estimated project cost for Option 1B (excluding Botswana) is R 8 779 304 417
(VAT excluded) and based on the level of indigence and social water demand, the
social component has been fixed on 9.54%. This equates to R 837 545 641, which will
be allocated by the RBIG Programme. Sedibeng Water needs to secure an amount of
R7 941 758 775from other sources.
The budget of this project is divided in two stages, namely the investigation stage and
the construction stage. For the purpose of this Report Option 1B’s costs is referred to.
4.1
Allocated Funding for the Groundwater Investigation:
The estimated cost for the Assessment of Exploitable Groundwater Resources for
augmentation of the Vaal Gamagara Bulk Scheme is summarised as follows:
The expenditure for the Groundwater Exploration Project is as follows (all amounts
VAT inclusive):




2011/2012 FY
2012/2013 FY
2013/2014 FY
2014/2015 FY
R 9 414 837
R16 534 283
R25 308 305
R 2 502 003
The expenditure for the 2014/2014 amounts to R 2 502 003.39 (VAT included) with an
allocated budget of R35 million.
4.2
Expected Project Cost for Option 1
The expected construction cost as per proposed phase is as indicated in the Table 1.
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Table 1: Construction Cost (VAT excluded)
Phase 1
2015 - 2016
Description
Phase 2
2017 - 2018
Final
2019 - 2022
TOTAL
Construction Costs
Pump Stations
Rising Mains
Gravity Mains
Reservoirs
Sumps
Water Treatment Works
Abstraction Works
Telemetry
Substations
SD Groundwater
319 584 838
2 527 500
50 000 000
77 455 504
390 463 040
269 383 503
208 260 000
8 375 000
2 527 500
2 992 000
576 904 841
212 333 103
1 107 033 093
614 751 664
20 075 000
638 501 500
31 318 696
5 055 000
6 827 200
-
289788607
1497496133
1203720005
208260000
28450000
638501500
31318696
10110000
9819200
626904841
SUB-TOTAL A
372 112 338
1 536 361 388
2 635 895 257
4544368982
SUB TOTAL B (landscaping,
miscellaneous, P&G, contingencies and
design fees)
348 216 321
1 037 210 905
2 849 508 208
4 234 935 434
TOTAL COST OPTION 1B
720 328 659
2 573 572 293
5 485 403 465
8 779 304 417
8.2%
29.3%
62.5%
100.00%
PERCENTAGE OF TOTAL COST
4.3
Contract Details and Cost
The contract details for the Groundwater Exploration Project are mentioned in the table
below:
Table 2: Contract details: Drilling and Testing Contractors
Contract no
245460YNB/1
245460YNB/2
Contract name
Drilling of
Exploration/Monitoring/Production
Boreholes
Testing of
Exploration/Monitoring/Production
Boreholes
Contractor
Environmental Drilling and Remediation
Services CC
Groundwater Solutions CC t/a AB
Pumps
Contract award start date
20 June 2012
20 June 2012
Completion date
Expected March 2014 - Not fixed
Expected March 2014 - Not fixed
Completion extension
No
No
Actual completion date
31 March 2014
31 March 2014
Contract value (including
VAT)
R 24 488 308.05 (Final amount invoiced)
R 3 546 525.20 (Final amount
invoiced)
Completion
100%
100%
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4.4
SEPTEMBER 2014
Funding Allocated to the Project
The Groundwater Exploration project cost is R51.3 million and the completion date is
31 March 2014.
Table 3: Funding to date
Approved
amount
budget
*2011/12
*2012/13
*2013/14
R9 414 837
R16 534 283
R25 308 305
2014/2015
R35 000 000
Total
R86 257 424
*Actual expenditure
No counter funding is secured at this stage and the project is completely funded from
RBIG. Sedibeng is however in the process of investigation different funding models.
The budget allocation of the 2014/2015 FY is divided in two sectors namely:


Vaal Gamagara pipeline investigations (IRS, communication strategy, completion
of drilling, completion of groundwater reports and WULA) – R5 million.
The design, procurement and construction management of Phase 1
implementation – R30 million.
The total budget allocated to this project amounts R35 million.
5
PROGRESS ON CURRENT PROJECT
No formal performance evaluation was conducted however regular Project Team
meeting are conducted consisting among other of the following people





5.1
Kobus Streuders
Ian Hassenjager
Frans Wiegmans
Elmar Deysel
Antoinette Pietersen
Department of Water and Sanitation
Sedibeng Water
Golder Associates
WorleyParsons RSA
Golder Associates
Groundwater Investigation
The exploration drilling was concluded March 2014. The study reports were submitted
to the project team for approval.
Based on the results of the groundwater investigations the following summary
conclusions and recommendations are made to augment bulk water supply to the
VGWS:
The combined long term sustainable groundwater abstraction to augment the VGWS
amounts to 11 200 536 m3/a, with an additional short term peak supply (4 months per
year) of 3 222 064 m3/a.
SD1 Study Area:

A WULA should be submitted to develop the 22 production boreholes (scenario
B) to abstract 5 329 584 m3/a on a sustainable basis over the long term with an
additional peak / short term supply (four months per year) of 1 314 000 m3/a
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
SEPTEMBER 2014
(6 643 584 m3/a combined long and short term peak supply) to augment water
supply to the VGWS
The groundwater chemical classification for SD1 study area is calcium
magnesium bicarbonate type of water (Ca, Mg) (HCO3)2 representing unpolluted
potable water suitable for long term human consumption
SD2 Study Area:

A WULA should be submitted to develop 21 production boreholes to abstract 3
689 712 m3/a on a sustainable basis over the long term with an additional peak /
short term supply (four months per year) of 1 808 064 m3/a, (5 497 776 m3/a
combined long and short term supply) to augment water supply to the VGWS

The groundwater chemical classification for the SD2 study area is calcium
magnesium bicarbonate type of water (Ca, Mg) (HCO3)2, representing
unpolluted potable water suitable for long term human consumption
SD4 – Study Area

A WULA should be submitted to develop the production of 15 boreholes to
abstract 2 181 240 m3/a on a sustainable basis over the long term to augment
water supply to the VGWS

The groundwater samples from newly drilled boreholes were analysed for
physical parameters, macro and micro-determinants, with potable water quality
concentrations suitable for long term human consumption
5.2
Addendum to the Feasibility Study
A first draft of the Addendum to the Feasibility Study was submitted for comments to
the project team on the 18 August 2014 including the Affordability study. An updated
Affordability study was again submitted on the 9 September 2014
The proposed implementation plan was concluded and form part of the Addendum
report. The recommendations made are based on a workshop with the project team
where different options were discussed and the best case scenario established to
ensure that the any available spare capacity is utilised in the most efficient manner and
to ensure that the demand of the system is met as swiftly as possible. The
implementation plan was conducted excluding Botswana however their inclusion will
not influence the construction actions but will have an effect on the implementation
cost.
5.3
Implementation Readiness Study
The IRS is in the process of being finalised and expected completion date is end of
February 2014. The sub tasks of the IRS are listed below.
5.3.1 Water Use Licence Application Process
The pre-application consultation meeting with DWS took place on Monday 29
September 2014. Once the process and way forward WAS discussed at the meeting
Golder will commence with completion of the Water Use Application Forms as well as
the compilation of the Summary Report that will provide the supporting documentation
for the application for the SD4 area. It is anticipated that this process will take about 2
months.
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SEPTEMBER 2014
Once the forms have been completed we will require landowner signatures. Provided
there are no delays with obtaining landowner consent it should be possible to submit
the application for SD 4 in December 2014.
5.3.2 Environmental Impact Assessment
The environmental assessment process is well underway. The Basic Assessment
Report was submitted to the Department and awaits reference no.
5.4
Phase 1 Implementation – Appointment of PSP
As mentioned above, tenders are expected by the 23 May 2014 with appointment of
the PSP by end of September 2014.
6
RISKS TAKEN AND MANAGEMENT THEREOF
A number of potential risks were identified during the course of the IRS and actions put
in place to facilitate the management of the risks, namely:

Lack of awareness regarding the IRS: As mentioned earlier, the IRS has several
components and people living in the study area were not aware of the project’s
different aspects and phases. A Communication Strategy was developed to
identify key groups of stakeholders, clarify roles and responsibilities within the
project team and identify appropriate methods and actions to be implemented to
create better awareness of the project and ensure that stakeholders had a direct
line of communication with the project team. Regular meetings were convened
with key role-players to ensure that they were kept informed of the project and
the progress as milestones were achieved.

Perception that water belongs to the people/farmers: Through meetings with key
role players such as the mines, Water User Associations, organised and informal
agriculture, local government departments and local communities with
stakeholders in the project area, the theme of water as a precious commodity
belonging to the government and being managed by the government was
emphasised. However, more work still needs to be done to help people to
understand that the DWS is the national custodian of the country’s water
resources.

Potential future opposition against the VGG Bulk Water Infrastructure Scheme:
Many landowners, during the groundwater assessment study indicated that
whereas it was in order for the DWS to commission the study to determine
whether a viable water resource exists in the study area, they would strongly
oppose the project should it ever go into a full environmental impact assessment
study and water use licence application process. Landowners are concerned that
their future existence and means of livelihood will be threatened and taken away
if the VGG pipeline is augmented by groundwater. Already, landowners in the
Kuruman area are concerned about perceived fast-dwindling groundwater due to
the mining operations at Sishen.
There is a risk that landowners may not want to sign the water use licence
application (WULA) forms once the WULA process starts. Attempts have been
made to avoid farm properties where this issue was voiced, however, in other
cases landowners who were accommodating towards the groundwater study,
clearly indicated that they would oppose such project should it proceed. This will
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require ongoing management through adequate communications
maintaining constructive relationships with all key stakeholders in the area.

and
Project funding and responsibility: At this stage it is not yet clear which institution
will be responsible for the funding of the VGG Bulk Water Infrastructure Pipeline
Scheme and, as a result it is not certain who will be responsible for the
implementation of the project. Once this is known, a project steering committee
meeting will be arranged to inform the members accordingly.
The Communication Strategy will continue to control information flow and manage
expectations.
7
PROJECT RESULTS AND BENEFICIARIES
The project beneficiaries are mentioned below:
7.1
Beneficiaries
The beneficiaries of the water in the Vaal Gamagara pipeline consist of 5 main groups:





7.1.1
Local Authorities/Municipalities (Dikgatlong, Kgatelopele, Tsantsabane,
Gamagara, Ga-Segonyana, Joe Morolong).
Mining houses (Petra Diamonds, BHP Billiton, Kumba Iron Ore, Kgalagadi
Manganese, National Manganese, PMG Mining, Kudumani Manganese
Resources, Tarnisani Dynamic Mining Company, Diro Minerals, United
Manganese of Kalahari, Sedibeng Iron Ore, Tshipi e Ntle Manganese and Amari
Resources).
Agriculture – mainly stock watering along the scheme, farmer and domestic use.
The largest user of agriculture water is the Kalahari East scheme.
Government water supply to Lohatla Military Base and Koopmansfontein
Experimental Farm.
The possible water supply to Botswana with an off-take from Blackrock.
Local Authorities
The population of the Local Authorities to benefit from the scheme are listed in the
Table below.
Table 4: Population of beneficiaries
Towns
Population 2030
Indigent
population
Indigent users
2030
Koopmansfontein
195
100.0%
195
Vaal Gamagara
276
72.7%
201
Delportshoop and Longlands
21,901
72.7%
15,922
Postmasburg and Beeshoek
42,876
55.2%
23,668
Olifantshoek
11,230
55.2%
6,199
Kathu and Dingleton
45,478
48.0%
21,829
Hotazel
7,240
66.4%
4,807
Blackrock
2,097
66.4%
1,392
16
REGIONAL BULK INFRASTRUCTURE GRANT PROGRAMME
7.2
SEPTEMBER 2014
Employment during the Implementation of the Project
Since the work at this stage is specialised no local labour is utilized.
For the construction phase the following employment is expected:


8
Temporary employment: 4 005 300 person days (approx. 2 200 temporary jobs
over a 5 year construction period)
Permanent employment: 52 direct jobs
200 Indirect jobs
510 Induced jobs
KEY CHALLENGES WITHIN THE PROJECT
The funding of the total project can be listed as the major challenge.
Another challenge is the inclusion of Botswana. It is unclear whether Botswana should
be included in the design.
9
CONCLUSIONS
The Groundwater Exploration project is completed and study reports submitted. The
finalization or the reports will be during October 2014
The Addendum to the Feasibility Study was submitted as a first draft. The report will be
finalized during October 2014.
The expenditure for the 2014/2015 financial year (FY) is R 1 994 827.13 (VAT
included). It is expected that an additional R 1 500 000.00 (VAT included) will be
required to complete the IRS.
The Water Use Licensing of the SD4 area is underway as well as the EIA for Phase 1
development.
The IRS report is being compiled and will be updated as information become available
and expected to be concluded February 2014.
10
RECOMMENDATIONS
The critical section of the scheme is between Kathu and Blackrock. Sedibeng Water is
currently obtaining bids for the appointment of a professional service provider for the
design and construction management of this section. It is recommended that funds are
obtained for the construction of this section amounting to approximately R650 million.
Funds for the next phases have to be secured to ensure the sustainable supply of
water to the consumers. A session with the ADG of DWSS was arranged and a way
forward will be detriment.
17
REGIONAL BULK INFRASTRUCTURE GRANT PROGRAMME
11 PHOTOGRAPHS ON THE IMPLEMENTATION OF THE PROJECT
Drilling sites
Finishing of Exploration Borehole Site (shallow and
deep borehole) as Monitoring Facility
Test Pumping of New Borehole in SD2 Area
SEPTEMBER 2014