QUARTERLY PERFORMANCE EVALUATION REPORT OF SINTHUMULE KUTAMA BULK WATER PROJECT LIMPOPO CHIEF DIRECTORATE: BULK INFRASTRUCTURE PROGRAMME PERIOD: 01 OCTOBER 2014 TO 31 DECEMBER 2014 2 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 TABLE OF CONTENTS 1. Introduction 2. Background 2.1 2.2 2.3 2.4 2.5 3. Progress to date 3.1 3.2 3.4 3.5 4. Outcomes and outputs Beneficiaries and project results. Conclusions / Lessons Learned 5.1 5.2 6. Implementation of approved business plan Schedules of work and phasing of the activities 3.3 Risks taken and management thereof Capacities dedicated to the programme Key challenges within the project Project result and beneficiaries 4.1 4.2 5. Description of project Project History Project concept, design and plan Start date – duration of the programme Fund previously allocated to project Main successes and failures of the project to date Ownership and sustainability of infrastructure works Recommendations ANNEXURE A: Project Implementation Photos ANNEXURE B: List of villages expected to benefit from the Project ANNEXURE C: Details of contracts awarded ANNEXURE D: Project schedule ANNEXURE E: Details of job opportunities 3 REGIONAL BULK INFRASTRUCTURE GRANT 1 _______ __ 31 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 a quarterly performance report for Schedule 6 allocation within 45 days after the end of each quarter to the National Treasury. 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 quarterly performance evaluation report covering the third 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 three of the 2014/15 fiscal year, is for the Sinthumule Kutama Bulk Water Supply Project in Vhembe District Municipality. 2 BACKGROUND 2.1 Description of the Project The Sinthumule Kutama project is part of Luvhuvhu Government Water Scheme. The project entails the detail design and the implementation of the Bulk Water Supply (BWS) for Makhado, Sinthumule Kutama, the Air Force Base and its residential area, the Sinthumule Kutama villages to the west of Makhado Town which includes all extensions in the town, Tshikota and the Kutama Sinthumule Maximum Security Prison. The project starts at the Valdezia reservoir, 29 km to the east of Makhado and ends at the villages of Sinthumule and Mabudu 30 km to the west of Makhado Town. The area falls within the Water Services Authority of Vhembe District Municipality in the Limpopo Province. 2.2 Project History The Sinthumule/Kutama area consists of 18 rural villages with approximately 101,472 inhabitants according to Department of Water Affairs as at 2003. Prospects for future development in the Sinthumule/Kutama area have been discussed and identified as one of the key drivers for the project. The following two major development trends were established: a) b) A tendency for spontaneous urbanisation taking place in the Madombidzha area which is situated less than 15 km to the south of Makhado. An important urban development node (due to the accessibility of the area), which is situated at Tshikwarani at the junction of Makhado/Vivo road and the tar road straddling the Sinthumule/Kutama area. Other factors that were identified that would play an important role in decisions regarding further development of settlements and establishment of residential areas are: 4 REGIONAL BULK INFRASTRUCTURE GRANT (i) (ii) (iii) (iv) 2.3. _______ __ 31 December 2014 The availability of funds Employment opportunities Income levels Accessibility Project Concept, Design and Plan The Makhado Local Municipality (LM) is experiencing water shortages in the Makhado West area as well as other areas west of Valdezia Reservoir. The Nandoni Dam (originally Mutoti Dam) was the origin of the Luvhuvhu Government Water Scheme (LGWS). A White Paper published the developmental requirements and confirmed the allocations to the scheme area. The bulk water study determined the demand over the 20-year period until 2030 taking into consideration economic and population growth. The planned bulk water infrastructure in the Makhado West Area Covers the following area: Elim/Vleifontein Regional Water Scheme (RWS) (NN22) Makhado RWS (NN5) – The town of Makhado, Tshiota and environs, including the maximum security prison, Sinthumule Kutama RWS (NN16) The Air Force Base located approximately 20 km south west of Makhado, and Tshitale RWS (NN10) The Makhado West Bulk Water Scheme will comprise of the following: 2.4 Stage 1 – Sinthumule Kutama encompassing:o Pipeline from Mowkop to AFB Makhado o Pipeline to TSHIKONDOBO Reservoir o New 10 Mℓ reservoir at Mowkop Stage 2 – Bluegumspoort encompassing:o Borehole development, pipelines to the collection reservoir o Pump Station and pump line o Gravity line (including balance & pressure break tanks) Stage 3 - Valdezia to Mowkop Conveyance encompassing:o Gravity line from Valdezia to the booster pump station o Booster pump stations and pump line to Mowkop reservoir Stage 4 – T1 to Elim/Vleifontein encompassing – not yet determined. Start date – duration of the programme The implementation of the Sinthumule Kutama Bulk Water Supply started during the 2007/2008 financial year. The scheme might be completed in 2016/2017 financial year. 5 REGIONAL BULK INFRASTRUCTURE GRANT 2.5 _______ __ 31 December 2014 Fund previously allocated to project The estimated cost to complete the project - stage 1 - is estimated at R149 million. The RBIG as part of the indicative allocations has accommodated the total cost of the project. The allocations are indicated in the Table 1: Table 1: Allocation and Expenditure from 2007/08 to 2014/2015 financial years Financial Year Allocated/ Expenditure (R.00) 2007/2008 5 000 000 2008/2009 15 000 000 2009/2010 14 314 595 2010/2011 16 000 000 2011/2012 39 263 867 2012/2013 15 000 000 2013/2014 24 430 404 2014/2015 40 129 511 Total Amount R169 138 377 The expenditure for the project in 2014/2015 was on the consulting fees, part of the material for D1 and for the remedial work. The total cost to complete stage 3 which is comprised of D1 and D2 is estimated at R513 million from the technical report that has been recommended for implementation by DWS. The D1 and D2 are co-funded between DWS and Vhembe District Municipality. DWS is contributing R249 million and Vhembe about R264,3 million. 3 PROGRESS TO DATE The performance evaluation for the Sinthumule Kutama project took place 21 January 2015 at the Albasini Dam. The meeting was attended by the below mentioned representatives. Name Organization E. Llale M. Montwedi N. Matshinyatsimbi N. Raudzingana M. Seboya B. Ramanyeme R. Gillmer W. Tuhna W. Nematshema T. Shirindza V. Qwabe D. Viljoen O. Mthethwa S. Maneli N. Osmers M. Nekhudzhiga J. Kruger H. Nemudivhiso DWS R/O DWS H/O DWS R/O DWS R/O DWS R/O DWS Vhembe DWS H.O DWS RRU Rendeals 4 VDM DWS R/O DWS CN DWS CN DWS CN DWS CN DWS Vhembe DWS CN DWS 6 REGIONAL BULK INFRASTRUCTURE GRANT _______ P. Louw Muditambi T. Masakona 3.1 __ 31 December 2014 R4 VDM VDM Implementation of approved business plan The project has been planned by Rendeals Four Consulting supported by Aurecon (Pty) Ltd. The milestones achieved are mentioned in Table 2: Table 2: Milestones Product Feasibility Study Name of Organization compiling/ developing Rendeals Consulting Implementation Readiness Study Preliminary Design Planned date for Date completion FS/IRS/Design/EIA FS/IRS/Design/EIA approved Four May 2009 Rendeals Four March 2010 Consulting Rendeals Four Consulting March 2007 May 2009 March 2010 March 2010 As indicated earlier, the already identified and well defined scopes are for Stages 1, 2 and 3. Stage 2 has been put on hold and implementation is pursued on Stage 1 and Stage 3. Progress on the implementation of the business plan is on Stage 1 on different contracts and Stage 3. Stage 1: Mowkop to Sinthumule Kutama Table 3: Progress on Implementation Project Project Description A Comments Outstanding 1.Equipping of four (4) boreholes Final certificate None situated in Nooitgedacht well field issued 2. Installation of associated work such as electrical power supply to boreholes, water supply and pumping via radio link, installation of new pre-cast pump houses and installation of associated pipe work, water meter pressure gauges within the pump house. B1 3. Installation of approximately 3.4km of pumping line from Nooitgedacht well field to a proposed balancing facility at Madombidzha village. 1. Installation of approximately 6.1 Final certificate None km of pumping line from the issued 7 REGIONAL BULK INFRASTRUCTURE GRANT Project B2 B3 B4 B5 _______ Project Description __ 31 December 2014 Comments Madombidzha pump station to the 3.5 Mℓ Madombidzha reservoir. 2. Connection of the existing command reservoir at Madombidzha (Zone A) 1. Installation of approximately 6.3 km (Chainage 6.134 km to 12.459 km west connector) of pumping line from the Madombidzha reservoir to the location where the pipeline splits to go to the Makhado Air force Base and the Sinthumule Kutama villages Fittings and valves rejected. Follow-up on the completion of the project. The process of contractor’s termination is underway. 1. Installation of approximately 7.940 Final certificate km (Chainage 12.459 km to 20.399 issued km west connector) of pumping line from the Madombidzha reservoir to the location where the pipeline splits to go to the Makhado Air Force Base reservoir. 2. Connection of the existing Air Force Base reservoir to the system. 1. Installation of approximately 5.5 Km (Chainage 0.000 km to 5.500 km East connector) of pumping line from the Nooitgedacht pump station to the location where the pipeline connect to section B5 before the railway crossing at Makhado Town. 1. Installation of approximately 5.500 km (Chainage 5.500 km to 11.000 km East connector) of pumping line from the location where the pipeline connect to section B4 before the railway crossing at Makhado Town to the location where it connects to line B6 adjacent to the Kutama Sinthumule prison. Outstanding Remedial work by the contractor. None Pipe has been None tested and the pipe line is operational from the pump station to Madombidzha Resevior Final certificate None issued 2. Pipe jacking under the National Road N1 and the railway line B6 1. Installation of approximately 5.5 Final certificate None km (Chainage km 7.600 to Mowkop issued Reservoir) of pumping line from the location where the pipeline connect to line B5. B6 1. Installation of approximately 2.5 Final certificate None 8 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 Project Project Description Extensi on km (Chainage 12.459 km to issued Sinthumule Kutama Village) of gravity line from the Air Force split to Ha-Ramantsha. B7 Installation of 9.4 km of gravity from Ha-Ramantsha to Ha-Madonga village and existing command reservoir (Zone B) Installation of 9.4 km of gravity from Ha-Madonga village to Maduba village and existing command reservoir (Zone C) 1. Construction of 10 Mℓ concrete reservoir Mowkop B8 C2 2A D1 D2 Comments Outstanding Final certificate None issued Final certificate None issued Sealing of the floor joints and rim beam to floor is completed. The contractor for joining two reservoirs has been appointed and site handover will be done on the 26th January 2015. This is a three months contract ending April 2015 Erection of collection tank, pump The works are house and associated works completed and then vandalised before issuance of completion certificate. Construction of 17km of gravity The contractor is pipeline from Valdezia to Mowkop to on site and first Pump station 1 certificate for site establishment and pipe has been submitted. Linking of two reservoir Testing of reservoir Determination of what is needed at what costs to ensure functionality. The Nooitgedacht boreholes are to be installed with better security fencing. The land evaluation has been approved by VDM and the negotiations with the land owners are in progress Advertisement Construction of 12.9km of pumping All Civil, electrical and 9 REGIONAL BULK INFRASTRUCTURE GRANT Project _______ Project Description __ 31 December 2014 Comments Outstanding main including 1 pump station and a & mechanical appointment of 10ml suction reservoir designs are contractor for completed D2 material supply Implementation photos are attached as Annexure A Stage 2: Bluegumspoort (Zoutpansberg) Scheme The scope for Stage 2 is mentioned below: Drilling and equipping of six production boreholes 1.5 km of 110 mm diameter uPVC connecting boreholes to collection reservoir Pump station 6.1 km of 200 mm diameter uPVC pumping main to balancing reservoir 11.3 km of 250 mm diameter uPVC gravity main to Mowkop reservoir Estimated construction value as determined in 2007/08 is about R27.6 m. Stage 2 is still stalled due to the EIA including negotiations with the farmers. Stage 3: Project D1 and D2 The scope for stage 3 is mentioned below: Construction of 17 km of gravity pipeline from Valdezia Reservoir to Pump Station (D1) Construction of 12.9 km of pumping main including 1 pump station and 1x10 Mℓ suction reservoir (D2). D1 Project is under construction and the civil and mechanical as well as electrical designs for project D2 are also completed. The only outstanding is Electrical and Mechanical works which is designed by Aurecon. 3.2 Schedules of work and phasing of the activities The scheme comprises of 3 stages which have been defined and the fourth one is still to be defined. Stage 2 has been halted to allow for the discussions of issues with the farmers and also the conclusion on the EIA. Stage one is almost complete except for the project A2, B2 and C2. A list of Contractors who participated in the implementation of different projects is attached as Annexure B. C2 which is the new reservoir will be linked with the old reservoir to use the overflow water for testing of the reservoir. After which the overflowing water might be reticulated to some parts of the pipeline to ensure access to water to some of the Madombidzha villages. The schedules for the current projects being C2 in Stage 1 and D1 and D2 in Stage 3 are attached as Annexure C. There are no fixed schedules for A2, B2 and B4 as the Consultant is still in the process of determining what needs to be done to ensure that the infrastructure is functional and also determine the cost. These activities when determined will be implemented from the R25 million allocation in 2014/2015 RBIG. It is anticipated that they will be finalised during 2014/2015 financial year. 10 REGIONAL BULK INFRASTRUCTURE GRANT 3.3 _______ __ 31 December 2014 Risks taken and management thereof Table 4: The risks for the projects are mentioned below: Risks Management Testing of the reservoir is due and Valdezia to Mowkop pipeline is not yet completed to ensure that Mowkop reservoir is tested. Lack of capacity for the municipality to manage the construction contracts 3.4 DWS Construction has been contracted to fill the Mowkop reservoir with water so as to test the water tightness DWS Construction appointed by the Municipality to implement the projects Capacities dedicated to the programme The below mentioned human resources capacity is dedicated to the projects and programme within Vhembe. 3.5 Water Services Authority – Vhembe District Municipality. Water Services Provider – Vhembe District Municipality. Funding – DWS – Regional Bulk Infrastructure Grant (RBIG) and Limpopo CoGTA, District Municipality (co-funding). Regulator – DWS. Overall Programme and Project Management –District Municipality and DWS. Design, contract administration and construction monitoring – Rendeals Four Consulting Construction work – DWS Construction and Shatsane IT Systems. Key challenges within the project Below are the challenges for the projects in the municipality: There are delays of procurement of material for construction in DWS The delays in addressing the costs for A2, C2 and B4 immediate access of water by communities Delays in decision making in the municipality might have a negative effect on the authorisation of the invoices for the work that DWS construction would have completed and require payment for. 4 PROJECT RESULTS AND BENEFICIARIES 4.1 Outcome and outputs The community of Makhado and Sinthumule Kutama village will have access to acceptable quantities and quality of water when the projects are completed in 2016/2017. However the completion of the remedial actions with fast track access of water to Madombidza community. The achievement of the outcomes is dependent on the availability of capital funding. 11 REGIONAL BULK INFRASTRUCTURE GRANT 4.2 _______ __ 31 December 2014 Beneficiaries and project results The list of villages that are to benefit from the Sinthumule Kutama projects is attached as Annexure B. The total number of households and people to benefit are still to be confirmed. The number of people employed is attached in Annexure E. 5 CONCLUSIONS /LESSONS LEARNED 5.1 Main successes and failures of the project to date The Municipality acknowledged its capacity to implement the project and requested DWS Construction to implement on its behalf. 5.2 Ownership and sustainability of infrastructure works The projects are to be owned by the Vhembe District municipality. The challenge is the arrangements for maintenance and operations. 6 RECOMMENDATIONS The following are recommended: Follow-up should be made on the completion of A2, B4 and C2 to ensure that quick wins in accessing water by the communities is real. Litigation for project B2 to be finalised so that the project can be finalised to ensure access to water by the communities from the pipeline. Confirmation to be made on the testing of water tightness by Rendeals Four. Procurement for material D2 to be fast tracked. The consultant to develop an overall project plan with procurement plan and cashflow. 12 REGIONAL BULK INFRASTRUCTURE GRANT _______ ANNEXURE A: Project Implementation Photos Construction truck Excavator busy excavating the pipe trenches __ 31 December 2014 13 REGIONAL BULK INFRASTRUCTURE GRANT _______ Bomag and compactors Water tanker __ 31 December 2014 14 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 Annexure B List of Villages expected to benefit from the project Scheme Area Village Name DWS Classification Sinthumule Kutama NN16 Madaheni Makhita Moembeni Diteleni Midorini Tshikhodobo Zamenkom Ha-Manavhela Siyawoodza Tshikwarani B Dzumbathoho Tshikwarani Vulamabadzhi Raphalu Muduluni Thembanyhilo Dzumbathoho Diteleni Ha-Madodonga Lufukula Muraleni Block A Muraleni Block B Muraleni Block C Ha-Mamburu Ravele Ha-ramantsha Ramakhuba Gogobole Tshiozwi Madombidzha Depot village Dzumbathoho Madombidzha Zone 2 Madombidzha Zone 1 Madombidzha Zone 3 Rathidili Ha-Magau Mutayhani Raliphaswa Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Rural Spatial Rationale Classification Growth Point (Y/N) N N Y N Y Y N Y N N N Y Y Y Y N Y Y N N N N N N Y Y Y Y Y Y Y N Y Y Y Y Y Y Y 15 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 Annexure C: Contractors for the projects CONTRACT NO. AND NAME VDM/MIG/LP005/05/08/A Sinthumule Kutama VDM/MIG/LP005/05/08/B1 Sinthumule Kutama VDM/MIG/LP005/05/08/B2 Sinthumule Kutama VDM/MIG/LP005/05/08/B3 Sinthumule Kutama VDM/MIG/LP005/05/08/B4 Sinthumule Kutama VDM/MIG/LP005/05/08/B5 Sinthumule Kutama VDM/MIG/LP005/05/08/B6 Sinthumule Kutama VDM/MIG/LP005/05/08/2A Sinthumule Kutama VDM/MIG/LP005/05/08/C Sinthumule Kutama VDM/Tech/08/06/2010/02 CONTRACTOR CONTRACT VALUE (incl. VAT) CONTRACT AWARD / START DATE PLANNED COMPLETION DATE ACTUAL COMPLETION DATE EXPENDITURE AS AT December 2014 (incl. VAT) % COMPLETION SA Mamba Earthworks R1 983 859 .35 11 November 2007 03 December 2007 August 2008 R1 924 266 .80 100% BEM/SELBY JV R13 647 490.35 22 August 2007 11 November 2008 September 2008 R13 186 453 .23 100% Niloti Construction R10 779 999.80 22 August 2007 18 June 2008 Termination is underway R8 349 054 .24 77% De Guel Construction R7 689 040.08 22 August 2007 11April 2008 February 2009 R7 249 752 .81 100% Capstain Trading R12 515 758.93 26 May 2008 26 November 2008 June 2009 R11 292 789 .13 100% BEM Construction R20 001 452.79 26 May 2008 26 November 2008 June 2009 R20 068 994 .19 100% BEM/SELBY JV R15 938 185.68 15 April 2009 05 August 2009 testing R13 972 472 .75 98% Mmakoto Business Enterprise R5 708 603.76 12 September 2008 12 September 2009 vandalised R3 270 431 .25 100% NW Civils R8 151 501.03 11 July 2007 16 June 2008 Terminated R4 501 058 .58 52% Shatsane Systems Solutions (Pty) Ltd R9545 240.43 8 November 2011 4 May 2012 15 May 2014 Snagging to be completed 99% ANNEXURE D 10ML RESERVOIR (C2) SCHEDULE REGIONAL BULK INFRASTRUCTURE GRANT _______ ANNEXURE C 10ML RESERVOIR (C2) SCHEDULE 16 __ 31 December 2014 17 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 ANNEXURE D: D1 (GRAVITY MAIN) AND D2 (RISING MAIN SCHEDULE 18 REGIONAL BULK INFRASTRUCTURE GRANT _______ __ 31 December 2014 ANNEXURE E: Details of job opportunities Consulting Engineer managing the project Decent job opportunities for Consulting Engineer employees at various occupational levels: Decent = Full time for at least 5 months or more Decent job opportunities No Adult Men Pers Actual on cost on Days job opportuni ties Managerial Ongoing No Adult Women Pers Actual on cost on Days job opportu nities No Youth Men Pers Actual on cost on Days job opportu nities No Youth Women Per Actual son cost on Da job ys opportuni ties No Disabled Pers Actual on cost on Days job opportuni ties TOTAL No Pers on Days 0 0 1 7 Other Ongoing 0 0 Other New 0 0 TOTAL Ongoing 0 0 TOTAL New 1 7 Managerial New 1 7 R 58 800 19 REGIONAL BULK INFRASTRUCTURE GRANT _______ Summary of Decent Job Opportunities Decent job Decent job opportunities opportunities for people employed at Adult Men various No Pers Actual occupational levels: on cost on Decent = Full time Days job for at least 5 months opportunit or more ies __ 31 December 2014 Adult Women Perso Actual n cost on Days job opportu nities No No Youth Men Perso Actual n cost on Days job opportu nities Youth Women Pers Actual on cost on Days job opportu nities No Disabled Pers Actual on cost on Days job opportunit ies No N o TOTAL Pers Actual on cost on Day job s opportu nities Clerical Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Clerical New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Labourers Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Labourers New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Managerial Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Managerial New 1 7 R 58 800 0 0 R0 0 0 R0 0 0 R0 0 0 R0 1 7 R 58 800 Semi-Skilled Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Semi-Skilled New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Skilled Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Skilled New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Supervisor Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Supervisor New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Other Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 Other New 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 TOTAL Ongoing 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 0 0 R0 TOTAL New 1 7 R 58 800 0 0 R0 0 0 R0 0 0 R0 0 0 R0 1 7 R 58 800