WS Infrastructure Programme Quarterly Workshop North West Presented by: Neo Thulo Programme Manager North West Date: 31 October 2013.

WS Infrastructure Programme

Quarterly WorkshopNorth West

Presented by:Neo ThuloProgramme Manager North West

Date: 31 October 2013

WS Infrastructure Programme: Quarterly Workshop

ContentsA: Expenditure Status 2013/14

1. RBIG 2. MWIG3. ACIP4. NTP

B: Key Challenges

C: Feedback on letter sent on 9 September 2013 regarding RBIG/ACIP Programme management developments and requirements.

D: Project to be “Fast Track”

E: Projects to be Launched

F: Way forward

A1. RBIG : Expenditure 2013/14 Code Scheme

Project Cost DWA Commitment

Budget Allocation 2013/14

BAS Expenditure 23 October 2013

Invoices in Hand

Total expenditure

(incl invoices in hand)

Planned cash flow end Oct

2013

Proposed Budget Re-allocation

2013/14

Reason for Re-allocation / Movement

Revised budget allocation

2013/14

Implementation/ Construction

NWR005 Madibeng Bulk Water Supply 380,885,000 18,300,000 9,689,904 347,941 10,037,845 11,494,974 -17,700,000Detail design &

construction on upgrade36,000,000 Construction

NWR017 Pilanesberg Bulk Water Supply 470,000,000 200,000,000 24,480,123 4,575,821 29,055,944 42,243,109 58,000,000Contracts commencing

later than expected142,000,000 Construction

NWR013 Koster Waste Water Treatment Works upgrade 86,000,000 2,000,000 0 0 0 0 -2,201,000Detail design &

commence implementation

4,201,000Implementation

Readiness

NWR002 Ratlou Local Municipality Bulk Water Supply 218,090,000 10,700,000 0 0 0 550,000 3,000,000 Delay in finalising IRS 7,700,000Implementation

Readiness

NWR014 Mafikeng South Bulk Water Supply 175,830,000 5,000,000 4,575,843 0 4,575,843 4,575,843 -20,900,843Kick-start construction on

WTW25,900,843 Tender

NWR009 Taung/ Naledi Bulk Water Supply 606,754,000 109,700,000 23,341,401 45,910,710 69,252,111 36,516,807 -25,300,000Progress on project

improved135,000,000 Construction

NWR008 Greater Mamusa Bulk Water Supply 212,100,000 16,656,000 415,769 642,165 1,057,934 1,046,433 6,456,000RSMDM still finalis ing IRS

matters10,200,000

Implementation

Readiness

NWR010 Ventersdorp Bulk Water Supply 34,700,000 15,400,000 913,483 5,629,970 6,543,453 3,359,940 1,400,000R6 million counter funding

from VLM off-set DWA expenditure

14,000,000 Construction

NWR015 Wolmaransstad Waste Water Treatment Works 117,000,000 13,044,000 0 1,472,388 1,472,388 0 11,571,600Changing IA, MHLM under

administration1,472,400 Design

Sub Total 2,301,359,000 390,800,000 63,416,522 58,578,996 121,995,518 99,787,106 14,325,757 376,474,243

A1. RBIG : Expenditure 2013/14 (2) Code Scheme

Project Cost DWA Commitment

Budget Allocation 2013/14

BAS Expenditure 23 October 2013

Invoices in Hand

Total expenditure

(incl invoices in hand)

Planned cash flow end Oct

2013

Proposed Budget Re-allocation

2013/14

Reason for Re-allocation / Movement

Revised budget allocation

2013/14

Implementation/ Construction

NWR004 Moretele Bulk Water Supply 300,000 0 0 0 0 -5,150,000IA progressed far on

project5,450,000 Feasibility

NWR011 Bojanala Bulk Water Supply Consolidation 500,000 0 0 0 0 500,000Magalies Water carries out

master plan for Bojanala area

0 Master Plan

NWR016Potchefstroom Waste Water Treatment Works

upgrade600,000 0 512,712 512,712 500,000 -1,910,000

All work to IRS will be

completed by February 2013

2,510,000 Feasibility

NWR018 Kagisano Molopo Bulk Water Supply 600,000 0 0 0 0 0PSP to be appointed in

November600,000 Feasibility

NWR007 Management Support 320,000 0 319,000 319,000 80,000 0 320,000 Management

RRU 2,180,000 644,806 0 644,806 0 0 2,180,000 Management

Goods and services 200,000 13,567 0 13,567 905 0 200,000 Management

Sub Total 0 4,700,000 658,373 831,712 1,490,085 580,905 -6,560,000 11,260,000

Total 2,301,359,000 395,500,000 64,074,895 59,410,708 123,485,603 100,368,011 7,765,757 387,734,243

A2. MWIG: Expenditure 2013/14

SchemeProject Cost

DWA Commitment

Budget Allocation

2013/14

BAS Expenditure(=Transfers) 30 Sept 2013

Invoices at Hand

(WSA Exp)

Planned Cash Flow end Sept 2013

Proposed Budget

Reallocations 2013/14

Reason for Re-

allocation/ Movement

Implementation/

Construction Progress

Itsoseng BWS (NMMDM) R 7 017 000 R 7 017 000 R - R - R 2 806 800 R - None Committed

Lokaleng WS (NMMDM) R 4 100 000 R 4 100 000 R 4 000 000 R - R 1 640 000 R - None Committed

Olienhout Park and Borakalalo (NMMDM)

R 2 700 000 R 2 700 000 R - R - R 1 080 000 R - None Committed

Logaleng WS (NMMDM) R 3 300 000 R 3 300 000 R - R - R 1 320 000 R - None Committed

Ottosdal WS (NMMDM) R 2 800 000 R 2 800 000 R - R - R 700 000 R - None Committed

Maganeng / Ntshwanahatshe BWS (Dr RSM DM)

R 8 700 000 R 8 700 000 R 870 000 R - R - None Committed

Total R 28 617 000 R 28 617 000 R 4 870 000 R - R 7 546 800 R - R -

A3. ACIP : Expenditure 2013/14

SchemeProject Cost

DWA Commitment

Budget Allocation

2013/14

BAS Expenditure 30 Sept 2013

Invoices at Hand

Planned Cash Flow end Sept 2013

Proposed Budget

Reallocations 2013/14

Reason for Re-

allocation/ Movement

Implementation/

Construction Progress

Ottosdal Water Reticulation R 2 000 000 R 2 000 000 R - R - R 1 718 000 R - None Committed

Kgetleng: WCDM interventions R 4 000 000 R 4 000 000 R 960 255 R 1 197 967 R 1 001 487 R - None Construction

Madibeng: WCDM interventions R 2 000 000 R 2 000 000 R - R - R 1 750 000 R - None Construction

Moretele: WCDM Interventions R 2 000 000 R 2 000 000 R - R - R 1 187 000 R - None Construction

Moses Kotane: WCDM interventions

R 5 000 000 R 5 000 000 R - R - R 1 750 000 R - None Construction

Refurbishment of Motswedi WWTW

R 1 500 000 re-allocated R - already re-

allocated insufficient progress

N/A

Refurb of Mafikeng/Mmabatho Sewage P/S's

R 5 000 000 re-allocated R - R - R - already re-

allocated insufficient progress

N/A

Refurbishment of Koster WWTW

R 6 000 000 R 6 000 000 R 1 203 897 R 2 210 228 R - None Construction

Refurbishment of Lichtenburg WWTW

R 4 500 000 R 4 500 000 R - R 3 013 664 R 886 000 R - None Construction

Total R 32 000 000 R 25 500 000 R 960 255 R 5 415 528 R 10 502 715 R -

Note: BAS expenditure of R 3.4 million in Oct

A4: NTP – Expenditure 2013/14

SchemeBudget

Allocation 2013/14

TransferredDWA Q2

WSA Expenditure 30 Sept 2013

Invoices at Hand

Planned Cash Flow end Sept 2013

Proposed Budget

Reallocations 2013/14

Reason for Re-

allocation/ Movement

Implementation/

Construction Progress

Moretele LM R 3 000 000 R 3 000 000 R - R - R 1 200 000 R - None Adjudication

Madibeng LM R 8 650 000 R 4 500 000 R - R 338 478 R 1 800 000 R - None Construction

Moses Kotane LM R 5 300 000 R 5 300 000 R - R - R 1 700 000 R - None Adjudication

NMMDM R 14 000 000 R 12 000 000 R - R - R 2 000 000 R - None Adjudication

Dr RSM DM R 9 000 000 R 9 000 000 R - R - R 1 800 000 R - None Adjudication

Total R 39 950 000 R 33 800 000 R - R 338 478 R 8 500 000 R -

Note: Except for Moses Kotane, transfers done in September 2013

B: Key ChallengesRBIG• Taung – delays due to community delays &

project held hostage to get to Department of Agriculture

• Ventersdorp - Difficulty to get payment for pledged counter funding

• Various projects – Inability of WSAs to counter fund

• Pilanesberg – Delayed start on contracts having negative effect on progress / expenditure

B: Key ChallengesRBIG• Maquassi Hills placed under administration – to

change IA (6 months delay)• Duplicate appointments of PSPs by WSA for one

project, overlapping project area – redefinition of scope & delay in finalising IRS process

• Not able to pay DWACU through LOGIS – submission to be provided to CFO by 4 November 2013

B: Key ChallengesMoretele LM:(1) Commitment done by WSA but no IA appointment – invoices

cannot be rendered (ACIP)(2) Transfers received in September only (WSOS)Madibeng LM:(3) Commitment done by WSA but no IA appointment – invoices

cannot be rendered (ACIP)(4) Transfers received in September only (WSOS)Moses Kotane LM:(5) Transfers received in July but contract not yet adjudicated

(WSOS)(6) Delayed commitments (now done) requires additional planning

and effort to fast track the project (ACIP)

B: Key ChallengesNMMDM:(1) Delayed payments of contractors results in several delays and

performance challenges(2) Transfers received in September only (WSOS)(3) Previous allocation spending to be resolved and committed in

context of new funding (WSOS)(4) Long delays in commitment by WSA requires extra effort to fast

track project implementation (5) Issues concerning approval of VO delays payment to contractors

and implementation of work (ACIP, MWIG)Dr RSM DM:(6) Transfers received in September only (WSOS)(7) Delays in procurement processes – tender not launched yet

(MWIG)

C: Feedback on letter sent on 9 September 2013

• Provincial Planning Committees– NW Planning Committee in place (to be expanded

to include ACIP, MWIG &NTP); meets quarterly– Revised ToR presented to NWPC on 7 August 2013

– adoption to be finalized– Chairperson of NWPC is the DWA Regional Head– NWPC in place since 21 September 2011

• Budget re-allocation & acceleration plans for RBIG & ACIP– AP 2.1: Revised again in October 2013 for

adjustments– AP 2.2: To be provided by 8 November 2013

C: Feedback on letter sent on 9 September 2013 (2)

• Preparing for Audits– AP 3.1 – AP 3.3: In process

• Transferring of assets & assessment of completed projects– AP 4.1: To be provided – AP 4.2: Maquassi Hills BWS

C: Feedback on letter sent on 9 September 2013 (3)

• Financial commitment for each project– AP 5.1: Completed– AP 5.2: Submission to Capex on existing projects:

• Taung / Naledi RBWSS

– AP 5.3: Submissions made to Capex previously:• Ventersdorp BWS• It is the understanding that a submission should be

made to Capex / PMU when budget is exceeded by more than 15%

C: Feedback on letter sent on 9 September 2013 (4)

• Performance evaluation of RBIG projects– AP 6.1: Training of M&E officials still to be done – AP 6.2: All performance evaluation reports were submitted

before 25 October 2013

• Provincial bulk master planning– AP 7.1: N Thulo and J Ratombo will manage the PBMP

• ACIP guidelines– ACIP document still to be circulated to any external

stakeholders; and comments to be provided on the document by 8 November 2013

D: Projects to “Fast Track”

• Pilanesberg RBWSS• Taung / Naledi RBWS• Mamusa RBWS• Wolmaransstad WWTW & bulk outfall sewer

D: Projects to “Fast Track”

1. Moretele WCDM (ACIP – R 2 000k)

2. Madibeng WCDM (ACIP – R 2 000k)

3. Moses Kotane Refurbishment (WSOS – R 5 300k

plus Other - R 700k (RRU + MISA))

4. Moses Kotane WCDM (ACIP – R 5 000k)

5. NMMDM - Ottosdal Water Augmentation (ACIP –

R 2 000k)

E: Projects to be Launched

• Pilanesberg RBWSS: Phase 1 (28 November 2013)

• There are no new projects to be launched for ACIP/MWIG due to the current project status in the FY2013/14

F: Way forward

• Ensure by means of regular interactions through DWA project progress meetings, that the municipalities are aware of the conditions of the grants and to commit/execute project to ensure the successful completion of all projects in terms of the conditional key dates

• For slow progress, region to issue (and elevate if necessary) non-compliance notices

• Consider earlier transfers of Schedule 5B to avoid that procurement delays affect programme performance