Contact

Sam Shabalala

Municipal Manager: Emfuleni LM

Sedibeng Regional Sanitation Scheme

Project Status

Project Objectives Project Background before PPMO Actions taken by PPMO Professional Team Roadmap Delivered and Outstanding items Priority Support Intervention Issues and Risks Transitional Challenges Integration of approaches Support to Emfuleni

Create a regional infrastructural capacity for bulk sanitation for the Sedibeng region

Institute interim measures to address immediate/emergency problems

Deliver effective solutions that will eradicate the pollution into the Vaal River and its tributaries

Unlock development projects that require sanitation services

Facilitate local economic development and socio-economic upliftment via the SRSS programme

Emfuleni had an appointed a Transaction Advisor (TA) for the identification of a Technical solution to resolve the long term sanitation issues in Sedibeng. This TA was also tasked to complete the Section 78 (3) study in order to identify the possibility of a Public Private Partnership. The appointed TA was active in Emfuleni from June 2008. On analysis of their progress it was established that documents produced by the TA was presented for Municipal approvals by the TA. All documents were presented to committees at various levels however without the mandatory approvals. It was further established that the Section 78(3) study was not progressing due to data unavailability

It was established that in order to address the interim issues a second consulting team was deployed by the Department of Water Affairs (DWA). This consultant provided services on an adhoc basis and no alignment existed between the interim measures and the proposed long term solution

The PPMO further found that no emergency procurement processes were in place to accelerate the requirements of the interim projects

A capacity check at the various plants highlighted that the plants lacked operational capacity to run the plants

General project administration and integration was lacking

The TA has been tasked to complete the Section 78(3) on an accelerated path. Various contact sessions were arranged to accumulate the data required

All documents produced without approvals has been presented at the relevant committees and all approvals obtained

All mandatory Public information sharing sessions for the Environmental and Section 78 (3) processes have been held

All the long term and interim project requirements have been integrated and a comprehensive project list produced. All MIG applications for interim projects have been submitted for funding

A project specific Section 79 committee has been put into place to deal with Emergency procurement and other project needs

Rand Water was consulted and as of the 1 October 2009 brought on board to assist Emfuleni with operation capacity at the various plant

All internal project administration and integration issues have been addressed

Provincial Project Management Office – Siris Engineering – Appointed by DLG&H

Long term Solution – Arcus Gibb Consulting Engineers – Appointed by Emfuleni Local Municipality

Interim Measures – Aurecon Consulting Engineers – Appointed by DWA

Construction activities

Start date Q2 2011

End date Q4 2015

Long term Solution – Arcus Gibb Consulting Engineers – Appointed by Emfuleni Local Municipality

Delivered items

◦ Arcus Gibb was appointed to do the feasibility study for a long term solution for the SRSS

◦ The technical feasibility study was completed in June 2009 but has not been approved

◦ The section 78(1) and (2) was completed in February 2009

◦ Site selection report and high level flows was only approved by the ELM in September 2009.

◦ The EIA process started after the site selection report

Long term Solution – Arcus Gibb Consulting Engineers – Appointed by Emfuleni Local Municipality

Outstanding items The financial feasibility of the project was presented by

Kagiso to National Treasury in draft however the final documents need to be completed

interim measures and the O&M of the infrastructure : Aurecon was appointed by DWAE to assist ELM.

Delivered items

◦ Rietspruit WCW projects list / contracts produced. Advertised and tenders/quotations were received by Metsi-a-Lekoa. Some contractors appointed, others will be appointed soon.

◦ Aurecon also assisted with the compilation of an SLA between CoJ and ELM. SLA presently with the ELM legal department

Interim measures and the O&M of the infrastructure : Aurecon was appointed by DWAE to assist ELM.

Outstanding items

◦ Infiltration study on the existing reticulation not complete due maintenance problems on the reticulation and the excessive rains

Challenge PMO Intervention

PMO Activity Provincial Input

Council Input

1. Incapacity to operate plants

• Rand Water O&M Agreement

• Legal support to compile agreements

• Ensure that necessary contracts are signed• O&M funding

2. Non compliance of plants

• Priority project identified• Rand Water agreement to implement projects

• Emergency procurement• Implement Rand Water Agreement

• Approval of MIG Projects

3. Litigation by Minister and interested groups against Emfuleni

• Provision of Legal support• Acceleration of key projects

4. Institutional capacity

• Establish an autonomous ME• Training• Strengthening Council oversight over projects

• Submission of Ring fencing proposal to DLG&H• RW Capacity building programme• Weekly Section 79 Committee

Challenge PMO Intervention

PMO Activity Provincial Input

Council Input

5. SLA between CoJ and Emfuleni

• Address CoJ non payments• Finalise SLA

• Quantify capital and operation commitments • Meeting between parties

• Input to budgetary cycle

6. Process to implement Long term solution

• Feasibility study completion• EIA process• Section 78 process

• Letter of non performance issued to Arcus Gibb

• EIA approvals

7. Implementation of capacity enhancing projects

• Coordinate the various expansion plans of CoJ, Emfuleni, Midvaal• Quantify impact of DLG&H pending developments in the South• Quantity capital contributions by each party

• Identify alternative efficiency remediators• Integrate funding and plans

Challenge PMO Intervention

PMO Activity Provincial Input

Council Input

8. Delayed approval of the Site Selection Report

9. Payment made on outstanding items on the section 78(3) study

Execute a payment recon with ELM

Ensure aligned in the next payment by ELM

10. Outstanding section 78 (3)

•Follow up with ELM on the letter of demand

Request a meeting with ELM

11. Infiltration study will go into the rainy season that could distort the results of the study.

•Request an updated crushed plan from Eurocon

Challenge PMO Intervent

ion

PMO Activity Provincial Input

Council Input

12. The SLA between CoJ and ELM that has not been signed delays the process of payment from CoJ to ELM

Identify issues causing the delay

Raise it as an item in the next progress meeting with the ELM and Eurocon

13. ELM must notify DWA in writing of the situation to enable DWA to notify Aurecon to speed up the performance on progress

• Facilitate with ELM the letter to DWA

• Raise it as an item but also draft a letter on behalf of ELM

14. Increasing the capacity at the Sebokeng WCW with the first 50 Ml/d to accommodate City of Johannesburg and Midvaal LM requirements. These costs will be R500 million

15. Align medium-term capacity requirements at the Sebokeng WCW in anticipation of the decommissioning of the Ennerdale WCW by CoJ.

THESE ARE CRITICAL RISKS THAT MUST BE ADDRESSED TO MEET IMMEDIATE REGIONAL AND LOCAL DEVELOPMENTAL NEEDS

Risk Responsible party

Mitigation strategy

1. Doornkuil Township development in Midvaal with 18500 stands at projected additional 12 Ml/d capacity requirement at Sebokeng WCW

2. Development of 6600 stands in Uitvlucht, Risiville and MacKay on the eastern side of Emfuleni draining to Leeukuil WCW with projected additional 4,3Ml/d treatment capacity requirement

3. Moratorium on developments in Emfuleni to the value of R 3,6 billion that cannot be approved before the infrastructure is upgraded.

4. Determining pending developments in South from CoJ and DLG&H

Risk Responsible party Mitigation strategy

5. Potential objections to the EIA and section 78 processes relating to the planned regional scheme

6. Finalizing SLA between Joburg Water and Emfuleni and outstanding payments

7. Escalating Court case costs against Emfuleni for WCW’s non compliance, may impact on regional sewer scheme programme

8. Determining and negotiating capital contributions with affected parties (CoJ, Midvaal LM, DLG&H, Emfuleni LM and Private Developers).

Implement the proposed short-term interim measures as well as components of the long-term scheme

Reduce flows by means of a water conservation and demand management programmes

Increase treatment capacity by installing temporary treatment facilities and the use of remediators and modifications to the existing WCW’s

The projected future flows in the Region should be re-evaluated against actual developments and confirmed projects that have materialised over the past year

The current capacity of the existing WCW’s as well as possible modifications to enhance their capacity in the short-term needs to be investigated

The DWA should be approached to negotiate revised licences for all the WCW’s – that will take into account the situation that will exist until the new works have been commissioned

The sources of high organic loads are identified and monitored in order to reduce the load discharged into the sanitation system

For the implementation of the Interim Measures the need arose for support to Emfuleni Local Municipality.

Aurecon will assist with the project management of the capital expenditure, according to the DWA appointment.

Rand Water to assist with the implementation of these projects, on the Interim Measures

Rand Water to assist with expert advise for O&M to attain regulatory compliance

Rand Water to do O&M on WCW’s using existing staff as well as transfer of skills to the existing personnel.

Rand Water agreement only for the period until the Long Term Solution is implemented or upon attainment of compliance at WCWs.

DWA utilizing Regional Bulk Infrastructure Grant to provide funding support.

DLG&H and Treasury providing project management, feasibility studies , transaction advisory support and oversight

The following table highlights the funding for the interim projects

Interim Requirements Emfuleni Sub Totals Total CostTotal funding requirement for Interim Measures 304,377,949.10R DWA Funded 2009/2010 12,500,000.00R MIG Funded 2009/2010 19,500,000.00R Remaining portion that is unfunded 272,377,949.10R Priority Emergency 68,457,949.10R Priority Urgent 198,520,000.00R Priority Medium 5,400,000.00R

Interim Requirements Midvaal Sub Totals Total CostTotal funding requirement for Interim Measures 45,000,000.00R Adding treatment capacity 40,000,000.00R Other urgent repairs needed 5,000,000.00R

The estimated cost of the whole project is R3b.

To date no source of funds has been established however the following approach is proposed by Emfuleni LM

◦ DWA funding – Emfuleni would like DWA to fund R30m per annum for three years to support the interim measures

◦ MIG funding – Emfuleni would like MIG to fund R100m per year for three years for the short term interventions

◦ Rand Water funding – Emfuleni would like the support of all parties to appoint Rand Water to provide R1b in funding for the medium term interventions

Emfuleni LM strongly believes that these interventions can defer the construction of the full scheme for a further 10 years

Thank You