Contact Sam Shabalala Municipal Manager: Emfuleni LM

1. Contact Sam Shabalala Municipal Manager: Emfuleni LM Sedibeng Regional Sanitation Scheme Project Status

2. Items to be covered • 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

3. Project Objectives • 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

4. 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 PROJECT BACKGROUND PRIO PPMO

5. 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 ACTIONS TAKEN BY THE PPMO

6. 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 Professional Team

7. Roadmap Construction activities Start date Q2 2011 End date Q4 2015

8. 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 Delivered and Outstanding items

9. 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 Delivered and Outstanding items

10. 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 Delivered and Outstanding items

11. 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 Delivered and Outstanding items

12. PRIORITY SUPPORT INTERVENTION ISSUES AND RISKS

13. PRIORITY SUPPORT INTERVENTION ISSUES AND RISKS

14. PRIORITY SUPPORT INTERVENTION ISSUES AND RISKS

15. PRIORITY SUPPORT INTERVENTION ISSUES AND RISKS

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

17. Transitional Challenges

18. Transitional Challenges

19. 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 Integration of approaches

20. 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 Integration of approaches

21. 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 Support to Emfuleni LM

22. 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 Support to Emfuleni LM

23. The following table highlights the funding for the interim projects Funding Transition

24. 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 Long Term Project Funding

25. Thank You