Mindalore Project Charter -Project Charter 15.09.2014

PREPARED FOR: WATER AND SANITATION, MOGALE CITY LOCAL MUNICIPALITY PO BOX 94 KRUGERSDORP, 1740 TEL: +27 (0)11 668 0724 FAX: +27 (086) 6922903

PREPARED BY: MORAD CONSULTING (PTY) LTD 274 VOORTREKKER ROAD NOORDHEUWEL, 1739 TEL: +27 (0) 11 954 3835 FAX: +27 (0) 11 954 6565

MOGALE CITY LOCAL MUNICIPALITY

MINDALORE WATER PIPELINE REPLACEMENT, 22KM, 75MM, ASBESTOS CEMENT PROJECT

PROJECT CHARTER/SCOPE BRIEF/BUSINESS PLAN

SEPTEMBER 2014

GAUTENG PROVINCE

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Contents

1. EXECUTIVE SUMMARY ........................................................................................................................ 4

2. BACKGROUND AND PROBLEM STATEMENT .............................................................................. 5

3. OUTLINE BUSINESS CASE ................................................................................................................. 5

5. PROJECT SCOPE .................................................................................................................................. 6

6. REGULATORY REQUIREMENTS ....................................................................................................... 7

6.1 Environmental Impact Assessment .......................................................................................................... 7

6.2 Geotechnical Studies ................................................................................................................................ 7

7. CONSTRAINTS AND ASSUMPTIONS ............................................................................................... 7

7.1 Physical Constraints .................................................................................................................................. 7

7.2 Financial Constraints .......................................................................................................................... 7

8. STAKEHOLDERS AND COMMUNICATION ..................................................................................... 8

9. PROJECT MANAGEMENT TEAM STRUCTURE ............................................................................. 8

10. PROJECT FINANCES ...................................................................................................................... 8

11.1 Professional Fees .................................................................................................................................... 8

11.2 Cost Estimate and Work Breakdown Structure .................................................................................... 10

11.3 Cash Flow Projection ............................................................................................................................ 11

11. PLACES OF WORK ......................................................................................................................... 11

12. SITE CLEARANCE ........................................................................................................................... 11

13. DELIVERABLES ............................................................................................................................... 12

14. MILESTONES .................................................................................................................................... 12

15. SUCCESS CRITERIA ....................................................................................................................... 12

16. REPORTING REQUIREMENTS AND MEETING SCHEDULE ................................................. 13

17. GUIDELINES AND STANDARDS .................................................................................................. 14

18. QUALITY ASSURANCE AND CODE OF CONDUCT ................................................................ 14

19. RISK MANAGEMENT ...................................................................................................................... 15

20.1 Health and Safety Risks ........................................................................................................................ 15

20.2 Financial Risks ....................................................................................................................................... 15

20. PROJECT APPROVAL REQUIREMENTS ................................................................................... 15

21. PROJECT SPONSOR ...................................................................................................................... 15

22. ACCEPTANCE .................................................................................................................................. 16

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Table of Tables

Table 1: (Source: Extract from Mogale City Local Municipality Strategic Plan 2012-2017) ............................... 5

Table 2: (Source: Extract from Mogale City Local Municipality Strategic Plan 2014-2018) ............................... 5

Table 3: Project Management Team Structure .................................................................................................. 8

Table 5: Professional Fees .................................................................................................................................. 9

Table 6: Cost Estimate and Work Breakdown Structure .................................................................................. 10

Table 7: Cash Flow Projection .......................................................................................................................... 11

Table 8: Reporting Deliverables ....................................................................................................................... 12

ANNEXURE A: Appointment Letter

ANNEXURE B: Fee Proposal

ANNEXURE C: Water Balance Results

ANNEXURE D: Tables from MCLM Strategic Plan

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1. EXECUTIVE SUMMARY

MORAD Consulting Engineers was appointed by Mogale City Local Municipality for the

Mindalore Water Pipeline Replacement Project. This Project Charter forms part the

Consultants appointment and covers the strategy for the planning, designing, tender

documentation and contract administration of the water pipelines replacement in

Mindalore, Zone 24 as per the subject project requirements.

Mogale City Local Municipality is experiencing unaccounted for water losses in most of

its areas including Mindalore, zone 24. Morad did a water balance exercise in Mogale

City to establishing extend of water loses. The results showed losses of up to 28.8%

for the year 2011. The Municipalitys 2012-2017 and 2014-2018 strategic plans also

indicate water losses of 31% and 33% respectively. The ultimate goal of Municipality

strategic plan is to curb water losses to 15% at most.

To achieve these strategic goals, Mogale City Local Municipality assigned Morad

Consulting the Mindalore water pipeline replacement project.

The project comprises of the elimination of the 110mm, 90mm and 75mm diameter

class 9 asbestos cement lines and the installation of class 12, 420m of 200mm dia

uPVC pipe, 390m of 160mm dia uPVC pipe, 4450m of 90mm uPVC pipe and

13700m of 7 5 mm uPVC pipe on the Municipal servitude.

The allocated budget for the project during this financial year is R7 652 173.00, all

inclusive. Therefore, we recommend that the project be executed in phases, with the

first phase having 750m of 90mm Dia uPVC and 2750m of 75mm uPVC pipes to be

laid for about 200 stands. The total project cost estimate for the construction of this

phase would be R6 272 681.29 including contingencies and VAT. The professional

fees would be R1, 377,391.14 including VAT. The duration of the construction will be

6 months.

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2. BACKGROUND AND PROBLEM STATEMENT

Morad undertook a water balance exercise in Mogale City with the view of establishing

the extend of water loses in the area. The water balance results showed high water

loses of up to 28.8% for the year 2011. The Municipalitys 2012-2017 strategic plan

also showed that for the year 2011/2013, the losses had increased to about 31%.

Furthermore, the 2014-2018 strategic plan indicates that the losses have further

increased to 33% at this point in time. The results of the water balance exercise and

the tables extracted from the Municipality strategic plans are attached in appendix C

and appendix D respectively.

Amongst other mitigation measures that could be done, Morad recommended pipe

replacement of the old class 9 AC pipes with class 12 uPVC pipes.

3. OUTLINE BUSINESS CASE

According to the Municipalitys 2014-2018 strategic plan on how to ensure quality

service delivery, at this point in time, Mogale City water los is sitting at 33%. The

previous year it was sitting on 31%. This shows a gradual increase in water losses.

The MCLM Strategic Plan, strategic goals for 2012-2017 and 2014-2018 are as

follows;

Strategic Objective

Performance Indicator

Requirement

Baseline/Current

Target 12/13

Target 13/14

Target 14/15

Target 15/16

Target 16/17

Water (Urban and peri-urban)

Potable water loss(%) (norm 15)

15 31 25 20 18 15 15

Table 1: (Source: Extract from Mogale City Local Municipality Strategic Plan 2012-2017)

Strategic Objective

P