THIRD QUARTER PERFORMANCE EVALUATION REPORT OF
DRAKENSTEIN MUNICIPALITY: CONSTRUCTION OF PAARL
SOUTH AND CAROLINA BULK SEWERS
WESTERN CAPE
CHIEF DIRECTORATE: BULK INFRASTRUCTURE PROGRAMME
PERIOD: 01 OCTOBER 2014 – 31 DECEMBER 2014
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31 DECEMBER 2014
TABLE OF CONTENTS
1. INTRODUCTION ............................................................................................................. 1
2. BACKGROUND TO THE PROJECT ............................................................................... 1
2.1 Description of the project ........................................................................................... 1
2.2 Project History ........................................................................................................... 3
2.3 Project concept, design and plan............................................................................... 3
2.4 Start date – duration of the programme ..................................................................... 4
2.5 Funds previously allocated to projects ....................................................................... 4
3. PROGRESS TO DATE .................................................................................................... 5
3.1 Milestones ................................................................................................................. 5
3.2 Implementation of approved business plan ............................................................... 5
3.3 Schedules of work and phasing of activities .............................................................. 5
3.4 Capacities dedicated to the programme .................................................................... 6
3.5 Key challenges within the project .............................................................................. 6
4. PROJECT RESULTS AND BENEFICIARIES ................................................................. 7
4.1 Outcomes and outputs .............................................................................................. 7
4.2 Beneficiaries and projects results .............................................................................. 7
4.3 Jobs created.............................................................................................................. 7
5. CONCLUSIONS/LESSONS LEARNED .......................................................................... 7
5.1 Main successes and failures of the project to date .................................................... 7
5.2 Ownership and sustainability of infrastructure ........................................................... 8
5.3 Lessons learned ........................................................................................................ 8
6. RECOMMENDATIONS ................................................................................................... 8
ANNEXURE A: PROJECT IMPLEMENTATION PHOTOS .................................................... 9
ANNEXURE B: LIST OF VILLAGES EXPECTED TO BENEFIT FROM THE PROJECT .... 10
ANNEXURE C: DETAILS OF CONTRACTS ....................................................................... 11
ANNEXURE D: PROJECT PROGRAMMES ....................................................................... 12
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PROGRAMME MANAGEMENT: REGIONAL BULK INFRASTRUCTURE
1.
DECEMBER 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 an annual performance report for Schedule 6 within 45 days
after the end of each quarter.
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 performance evaluation report covering the
3rd quarter 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 performance evaluation report, covering quarter 3 of the 2014/15 fiscal year, is for the
Paarl South and Carolina Bulk Sewer a Regional Bulk Infrastructure Grant project currently
being implemented by the Drakenstein Municipality in the Western Cape Province, with
Department of Water and Sanitation (DWS) as co-funder of the social component, and
Drakenstein Municipality as funder.
2.
BACKGROUND TO THE PROJECT
2.1
Description of the project
Drakenstein Local Municipality is located approximately 50 km north east of Cape Town, in
the Western Cape Province. The municipal area includes the towns of Paarl, Wellington
and Saron (including Gouda and Hermon).
Locality Map:
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PROGRAMME MANAGEMENT: REGIONAL BULK INFRASTRUCTURE
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The project is situated at the following longitude/latitude co-ordinates:
Paarl South Phase 2:
Carolina Phase 1:
Carolina Phase 2:
Paarl South Phase 3:
Latitude: 33˚ 43’ 53,79˚S
Latitude: 33˚ 44’ 51,50˚S
Latitude: 33˚ 44’ 36,75˚
Latitude: 33˚ 45’ 23,17˚S
Longitude:
Longitude:
Longitude:
Longitude:
18˚ 58’ 27,13˚E
18˚ 58’ 11,73˚E
18˚ 59’ 37,38˚
18˚ 45’ 28,92˚E
It is in the Berg River water management area.
Paarl is the largest inland town in the Western Cape Province and is in the centre of the fruit
growing farming (mainly wine and table grapes) area. Paarl serves as a local administrative
and commercial capital for the area. Other economic activities include commercial and light
industrial
enterprises.
The
2001
census
indicates
a
population
of
108 000. Paarl lies on the eastern and western sides of the Berg River and the bulk sewer
lines follows the eastern bank of the river with a second line branching off towards the south
eastern parts of Paarl.
The bulk sewer lines will be connecting areas to the south of the Paarl WWTW and
approximately 42 500 people (existing and new) will connect to these lines. The existing
bulk sewer lines cannot cope with the peak demands and some of the pipelines have also
reached the end of their product life cycle. The new bulk sewer lines will connect in the
short term a number of existing informal and affordable housing schemes and will eliminate
spillage of sewerage due to existing pipes not coping with the peak flows.
As the Berg River is a major source of irrigation water for fruit farmers downstream of Paarl
sewer spillages resulted in the deterioration of the quality of water in the river and often
does not meet the standards required for irrigation of fruit and the overseas markets have
questioned the acceptability of the produce. With the recent upgrades to the Paarl WWTW
and the current new bulk sewer lines under construction, it is anticipated that the water
quality will improve drastically.
2.2
Project History
Existing bulk sewage conveyance pipelines are nearing capacity and during the periods of
rainfall may overflow. As most the bulk sewers are located in close vicinity of the Berg
River this posed a significant risk of pollution of the Berg River. The Berg River is the major
source of irrigation water for many fruit farmers downstream of Paarl and as such any
pollution of the River will directly influence their well-being.
Furthermore, due to capacity problems, new developments cannot proceed until such time
as the sewage from these developments can be accommodated within the sewer
reticulation of Paarl.
2.3
Project concept, design and plan
In April 2007, Community Engineering Services (CES) prepared the sewer master plan for
Paarl which recommended that a new bulk sewer be constructed from the East bank of the
Berg River at the N1 National Roads to the Paarl Waste Water Treatment Works (WWTW),
a distance of approximately 12 km. The diameter of the sewer varied from 1,650 mm to
900 mm at the N1.
Furthermore the Master Plan identified the need for a new bulk sewer along Carolina Street
in the South of Paarl, approximately 4 km in length, to alleviate capacity problems in the
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Klein Drakenstein area and provide additional capacity for future developments along
Carolina Street.
The municipality identified these sewers as a priority and grouped their construction. Due
to construction processes and budgetary constraints the projects were implemented in
phases, with the first project starting in January 2010.
2.4
Start date – duration of the programme




2.5
Community Engineering Services (CES) was appointed by Drakenstein Municipality
in 2007 to prepare the sewer master plans for the Drakenstein Municipality.
Lyners Consulting Engineers and Project Managers were appointed by Drakenstein
Municipality for the Consulting Engineering Services in 2010 in terms of the Supply
Chain Management policies for the Drakenstein Municipality.
An RBIG Funding and Implementation Agreement between DWS and Drakenstein
LM were finalised.
Various contractors were appointed in February 2012 for the implementation of the
projects in terms of the Supply Chain Management policies for the Drakenstein
Municipality.
Funds previously allocated to projects
Table 1 below indicates the RBIG funding that was made available to the project to date.
Allocation
Spent
amount
2011/12
2012/13
2013/14
2014/15
Total
R299,996 (FS)
-
R39,327,824
R12,500,000
R51,827,824
R299,996 (FS)
-
R39,327,824
R12,447,306
R51,775,130
The project value was originally estimated to be approximately R207 804 454 and is cofunded by DWS and Drakenstein Local Municipality.
The latest estimate for completion of the RBIG project, as contained in the application for
additional funding submitted in November 2014, is R252 327 823:


Regional Bulk Infrastructure Grant (39.7%)
(of which R51,827,824 was made available to date and
R51,775,130 has been claimed)
Drakenstein Local Municipality co-funding to RBIG (60.3%)
R 100,174,146
TOTAL
R 252,327,823
R 152,153,677
MIG also funded a portion of the bulk sewer to the amount of R22,017,544, but this portion
is excluded from the above estimated completion amount.
All of the allocated R51,827,824 RBIG funds up to the 2014/15 financial year will be spent.
DWS is kindly requested to allocate additional funds in the 2014/15 and 2015/16 financial
years in order to complete the project.
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3.
31 DECEMBER 2014
PROGRESS TO DATE
The performance evaluation was conducted on 22 January 2015 by a team consisting out
of the following people:






3.1
Simpiwe Mashicila
Nombhedesho (Penina) Sihlali
Thomas Meso
A Mbewu
Andre Kowalewski
Lawrence Stewart
DWS – Regional Office (Western Cape)
DWS – Regional Office (Western Cape)
DWS – Head Office
DWS – Regional Office (Western Cape) (Student)
Drakenstein Municipality
Lyners Consulting Engineers
Milestones
Planned date for
completion
FS/IRS/Design/EIA
Name of Organization
compiling/ developing
Product
Date FS/IRS/Design
/EIA approved
Feasibility Study
Lyners
Completed Jan 2012
26 Oct 2012
Implementation Readiness
Study
Lyners
Completed Aug 2012
26 Oct 2012
Preliminary Design
Lyners
Completed Aug 2012
31 Aug 2013
GNEC / Aurecon
Completed Apr 2010
Amendment: Mar 2013
Aurecon
Completed Apr 2010
Mar 2012
Aug 2012
Sep 2012
Mar 2012
Aug 2012
Completed Sep 2012
Sep 2012
EIA
WULA
Operation and Maintenance
Plan
Financial Funding Plan
Design
Drakenstein Municipality
Lyners
Drakenstein Municipality
Lyners
Lyners
Contract details are summarized in Annexure C: Details of Contracts
3.2
Implementation of approved business plan
In 2010 Drakenstein Municipality awarded Contract to Lyners Consulting Engineers for the
Consulting Engineering Services of the Paarl South and Carolina Bulk Sewers.
3.3
Schedules of work and phasing of activities
The progress as at 31 December 2014 is as follows:
Paarl South Phase 2 Bulk Sewer: This project is mainly funded by additional funding by
Drakenstein Municipality and the project is 100% completed. Practical Completion and
Completion were certified and only snags and a claims dispute are being attended to
currently.
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Carolina Bulk Sewer Phase 1: This project is 100% completed and Practical Completion
was certified on 08 April 2014 and Completion on 24 October 2014. Only snags are
currently being attended to.
Carolina Bulk Sewer Phase 2: This project is approximately 95% completed and
completion for the various components was certified practically completed as follows:




Phase 2 (Portions 1 to 6) (600 mm dia pipes)
Flume
Portion 4 Phase 1 (1 050 mm dia pipes)
Portion 5 Phase 1 (1 050 mm dia pipes)
-
05 September 2014
09 May 2014
08 April 2014
09 December 2014
Paarl South Phase 3 Bulk Sewer: The feasibility stage, conceptual design, detail designs
and tender documentation have been completed. Tenders were received, adjudicated and
Drakenstein Municipality awarded the construction of Phase 3 (Portions 1, 2, 4 and 5) to
Vakala Construction (Pty) Ltd for the amount of R 46 831 637- 67, contingencies, escalation
and VAT included. Phase 3 (Portion 3) has now to be constructed as a later phase as all
the RBIG funding has not yet been approved and allocated. Refer to the applications for
increased funding already submitted to DWS in November 2014.
3.4
Capacities dedicated to the programme
The project is managed by the Drakenstein Local Municipality. Drakenstein LM appointed
Lyners Consulting Engineers and Project Managers as the consulting engineers who are
managing the contracts.
The RBIG funding is managed by the DWS Regional Office.
Regular site meetings are held and representatives of DWS and Drakenstein Municipality
are attending the meetings. Monthly progress payment certificates and professional
accounts are submitted and progress reports are submitted to DWS.
3.5
Key challenges within the project
The main challenges, which are also considered as risks and which were dealt with during
the project were:
a)
Access to last section of Portion 5 Phase 1 (1 050 mm dia pipe) was not available
until 30 September 2014 due to landowner who has not removed the vines. Work,
however, resumed on 01 October 2014 and was completed on 09 December 2014.
b)
Geotechnical investigations for Paarl South Bulk Sewer Phase 3 indicated extremely
poor and difficult soil conditions for excavations and bedding of the new pipeline.
Specials measures had to be allowed for in the tender document to cater for these
conditions.
c)
As most of the pipeline route for Paarl South Bulk Sewer Phase 3 will be through the
Arboretum, special measures had to be provided in the tender document to protect
the exotic trees from the various countries around the world, which have an
additional cost to the project.
d)
In Paarl South Bulk Sewer Phase 3 (Portion 3) project the crossing of the
Drakenstein Mall Road and the N1 National Road by means of pipe jacking will be a
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PROGRAMME MANAGEMENT: REGIONAL BULK INFRASTRUCTURE
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challenging exercise to be executed by pipe jacking specialists because of the
length of this pipe jack.
e)
Two river crossings will have to be undertaken (Wildepaardejagts and Berg River).
f)
The sewer diversion structures to be constructed under Paarl South Bulks Sewer
Phase 3 will be challenging as work will be executed in between and around the old
bulk sewer lines, still in operation. Special over-pumping will be required.
4.
PROJECT RESULTS AND BENEFICIARIES
4.1
Outcomes and outputs
New bulk sewer that will service Paarl South and Carolina together with the planned new
developments for the municipality.
The bulk sewer project is aimed at eradicating 3000 erven of low cost housing backlogs of
the Drakenstein Municipality communities. It is anticipated to be achieved by 2017.
4.2
Beneficiaries and projects results
When completed, the project will provide water services to over 42 500 people within the
service area, which include existing as well as future developments.
The completed project will service the following areas:


4.3
South Paarl (Klein Drakenstein, Carolina and Paarl Southern of the N1); and
Carolina Street (Klein-Drakenstein and Carolina)
Jobs created
In the period October to December 2014 four new jobs were created and an additional
587 man days achieved.
For the entire project period since inception 294 jobs have been created and 89 992 man
days achieved.
Total labour cost on the project up to December 2014 is approximately R12,579,069.00 and
from October 2014 to December 2014 approximately R138,532.00.
See Annexure E for Job opportunities.
5.
CONCLUSIONS/LESSONS LEARNED
5.1
Main successes and failures of the project to date


Despite extreme wet conditions, deep excavations and relative flat gradients,
pipelines in Carolina Phase 1 and 2 were laid to specification and minimum
deviations occurred.
Good safety record and minimum environmental findings were recorded.
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PROGRAMME MANAGEMENT: REGIONAL BULK INFRASTRUCTURE
5.2
31 DECEMBER 2014
Ownership and sustainability of infrastructure
Drakenstein Municipality will take over after Practical Completion. Drakenstein Municipality
maintenance team will do the O&M. Engineer Wastewater Services take ownership.
5.3
Lessons learned




6.
Ensure that daily level controls are done at various stages to ensure pipes are laid
within tolerances.
Any crossing of Berg River should be scheduled in summer period (important for Paarl
South Phase 3 project).
Ensure land owners complete their obligations in terms of the servitude contracts
timeously.
Contractors to be motivated to start snagging of completed portions earlier, as
completion of snags took too long.
RECOMMENDATIONS
The municipality has submitted an application to DWS for increased funds in order to
implement Paarl South Phase 3 Bulk Sewer in full as soon as possible to ensure that all
areas planned for connection/change over to the new bulk sewers can connect. Tenders
for Phase 3 (Portions 1, 2, 4 and 5) had now been received and the contract awarded. As
soon as the additional funds had been secured, the balance of Phase 3 will also go out on
tender.
In 2014/15 financial year an amount of R12,447,306 of the allocated R12.5 million RBIG
funds have been spent. Drakenstein Municipality respectfully request that the balance of
the RBIG contribution of 39.7% of the total RBIG project value, as fully detailed in the
application for additional funds and submitted to DWS in November 2014, be approved in
order to complete Phase 3 of the project. It is advisable that funds are condensed through
DORA.
9
ANNEXURE A: PROJECT IMPLEMENTATION PHOTOS
Reinstatement at Paryskloof Road
Carolina Phase 2
Completed 600mm diameter pipeline
at Amstelhof School
Completed 1 050 mm dia pipeline in
Portion 4 Phase 1
Completed 1 050 mm dia pipeline in
Portion 5 Phase 1
Completed flume
Completed 1 050mm diameter
pipeline in Portion 1 Phase 1
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ANNEXURE B: LIST OF VILLAGES EXPECTED TO BENEFIT FROM THE PROJECT
When completed, the project will provide water services to over 42 500 people in
approximately 4 344 existing and 5 772 future households within the service area.
The completed project will service the following areas:

South Paarl (Klein Drakenstein, Carolina and Paarl Southern of the N1); and
Carolina Street (Klein-Drakenstein and Carolina)
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31 DECEMBER 2014
ANNEXURE C: DETAILS OF CONTRACTS
CONTRACT
NO. AND
NAME
CONTRACTO
R
CONTRACT
VALUE
(incl. VAT)
CONTRACT
AWARD /
START
DATE
PLANNED
COMPLETION DATE
ACTUAL
COMPLETION
DATE
EXPENDITURE
AS AT
DEC 2014
(incl. VAT)*
%
COMPLETION
Paarl South
Phase 2
WK
Construction
R68,682,663**
(RBIG & DM)
Feb 2011
Nov 2014
26 Nov 2015
R53,946,563**
78.5%
R22,017,544
(MIG)
Feb 2011
Nov 2014
26 Nov 2015
R22,017,544
100%
R75,964,107
83.75%
R32,252,197
99.83%
R29,941,896***
89,31%
R90,700,207
Carolina
Phase 1,
CES
25/2012
Carolina
Phase 2,
CES
26/2012
Exeo
Khokela
JVZ
Construction
JV
R32,306,884
R33,525,455
Dec 2012
Mar 2013
Apr 2014
24 Oct 2014
Phase 2 (600 mm dia
pipes)
05 Sep 2014
05 Sep 2014
Portion 4 Phase 1
(1050 mm dia pipes)
08 Apr 2014
08 Apr 2014
Flume
09 May 2014
09 May 2015
Portion 5 Phase 1
(1 050 mm dia pipes)
19 Dec 2014
Paarl South
Phase 3
Vakala
Construction
NOTES:
*
**
***
R46,831,638
Feb 2015
11 Dec 2014
May 2016
Retention monies withheld have been included as expenditure
All figures include 14% VAT
Claims in dispute and amount can change
Final measurements in progress
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ANNEXURE D: PROJECT PROGRAMMES
NOTE:
Paarl South Bulk Sewer Phase 2:
Certified Completed; number of claims still in dispute
Carolina Bulk Sewer Phase 1:
Certified Completed
Carolina Bulk Sewer Phase 2:
Phase 2 (600 mm dia pipes)
(1 050 mm dia pipes) - Certified Practical Completed
Flume, Portion 4 Phase 1 (1 050 mm dia pipes) and
Portion 5 Phase 1 (1 050 mm dia pipes) all certified
Completed
Paarl South Bulk Sewer Phase 3: Tenders were received for Phase 3 (Portion 1, 2, 4 and 5)
and the contract was awarded to Vakala Construction (Pty)
Ltd. Construction to start beginning February 2015 and
estimated completion by May 2016.
Phase 3 (Portion 3) designed and awaiting approval of
funds before it can go out on tender.
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Carolina Phase II
2014/2015 - QUARTER 3
Decent job opportunities for the financial year 2014/15
Decent job opportunities for
people employed at various
occupational levels: Decent
= Full time for at least 5
No
months or more
Adult Men
Adult Women
Person Actual cost on job
Days
opportunities
No
Youth Men
Actual cost on
No
job
opportunities
Person
Days
Person
Days
Youth Women
Actual cost on
job
opportunities
Person
Days
No
Disabled
TOTAL
Actual cost on
Actual cost on
Person
No
No
job
job
Days
opportunities
opportunities
Person
Days
Actual cost on job
opportunities
Clerical Ongoing
0
-
R 0.00
0
-
R 0.00
Clerical New
0
-
R 0.00
0
-
R 0.00
Labourers Ongoing
9
454
R 102 188.00
9
454
Labourers New
0
-
R 0.00
0
-
R 0.00
Managerial Ongoing
0
-
R 0.00
0
-
R 0.00
Managerial New
0
-
R 0.00
0
-
R 0.00
Semi-Skilled Ongoing
1
51
R 12 036.00
1
Semi-Skilled New
0
-
R 0.00
0
-
Skilled Ongoing
2
102
R 24 308.00
2
102
Skilled New
0
-
R 0.00
0
-
R 0.00
Supervisor Ongoing
0
-
R 0.00
0
-
R 0.00
Supervisor New
0
-
R 0.00
0
-
R 0.00
Other Ongoing
0
-
R 0.00
0
-
R 0.00
Other New
0
-
R 0.00
0
-
R 0.00
TOTAL Ongoing
TOTAL New
TOTAL
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0
12
607 R
607
51
138 532.00
0
0
0
0
0
R 0.00
0
0
0
0
0
0 12
607
R 0.00
0
0
0
0
0
R 0.00
0
0
0
0
0
0
-
R 138 532.00
0
0
0
0
0
R 0.00
0
0
0
0
0
0 12
0
607
R 102 188.00
R 12 036.00
R 0.00
R 24 308.00
R 138 532.00
R 0.00
R 138 532.00