WS Infrastructure Programme Quarterly Workshop KWAZULU-NATAL Presented by: M. Ngxongo Regional Project Manager: WSRBIP Date: 31 October 2013

WS Infrastructure ProgrammeQuarterly Workshop

KWAZULU-NATALPresented by:M. NgxongoRegional Project Manager: WSRBIP

Date: 31 October 2013

WS Infrastructure Programme: Quarterly Workshop

Contents

A: Expenditure Status 2013/14

1. RBIG 2. MWIG3. ACIP4. NTP

B: Key Challenges

C: Project to be “Fast Track”

D: Projects to be Launched

E: Way forward

A1. RBIG : Expenditure 2013/14 Scheme Project Cost

DWA Commitment

Budget Allocation 2013/14

BAS Expenditure 29 Oct 2013

Invoices at Hand

Planned Cash Flow end Sept 2013

Proposed Budget

Reallocations 2013/14

Reason for Re-

allocation/ Movement

Implementation/

Construction Progress

MHLABATSHANE 327 482 000 27 900 000 4 507 255.91 14 591 991 20 450 518 23 000 000

(-4 900 000) Lack of progress Construction in progress

GREATER ESTON 192 000 000 38 000 000 23 479 724.15 14 173 722 22 598 643 38 000 000 Need additional

fundsConstruction in

progress

DRIEFONTEIN 176 101 368 44 200 000 38 421 114.03 0 15 918 355 44 200 000 Ahead of expenditure

Construction in progress

GREYTOWN 610 603 300 31 813 000 10 746 110.04 4 674 088 13 265 200 31 813 000 Construction in progress

MANDLAKAZI 163 100 000 6 928 000 893 079.72 1 355 369 6 928 000 6 928 000 Construction in progress

NONGOMA 146 891 789 43 413 000 9 787 556.92 0 15 853 100 23 412 300 (-20 000 700)

Pipe delivery only due Jan

2014Construction in progress

JOZINI 674 003 993 150 730 275 54 883 816.88 10 310 890 125 344 000 130 000 000 (-20 730 275)

Slow progress


DUKUDUKU 137 034 000 30 000 000 9 389 212.22 13 086 542 23 277 804 30 000 000 On target Construction in progress

A1. RBIG : Expenditure 2013/14 Scheme Project Cost

DWA Commitment

Budget Allocation 2013/14

BAS Expenditure

31 Sept 2013

Invoices at Hand

Planned Cash Flow end Sept

2013

Proposed Budget


Reason for Re-


Implementation/


HLABISA 208 000 000 20 000 000 17 897 391.89 3 750 941 11 627 272 30 000 000 (+10 000 000)

Finalising down to completion


GREATER MTHONJANEN

I668 849 283 32 900 000 11 306 269.66 2 450 904 18 293 420 32 900 000 Construction in

progress

LOWER TUGELA (ILEMBE)

682 610 000 80 000 000 6 998 513.88 34 458 401 76 650 000 80 000 000 On track Construction in progress

LOWER TUGELA (UW) 965 177 000 50 000 000 27 019 556.94 43 157 743 32 000 000 85 630 975

(+35 630 975)

Ahead of expenditure –

multiple contracts


BULWER 133 637 800 37 429 000 24 562 420.85 4 027 298 13 776 117 37 429 000 Multiple contracts


Total 5 085 490 533 593 313 275 239 892 023 146 037 889 395 982 429 593 313 275

INVOICE STATUS AS AT 29 OCTOBER 2013

5

PROJECT NAME APPROVED 2013/14 BUDGET

PROPOSED 2013/14 BUDGET

WITH R/O FINANCE ON HAND-WSS TOTAL

BAS - 29 OCT 2013

MHLABATSHANE 27 900 000 23 000 000 9 135 092.52 9 964 154.13 19 099 246.65 4 507 255.91

GREATER ESTON 38 000 000 38 000 000 37 653 446.65 0.00 37 653 446.65 23 479 724.15

DRIEFONTEIN 44 200 000 44 200 000 38 421 114.03 0.00 38 421 114.03 38 421 114.03

GREYTOWN 31 813 000 31 813 000 10 924 916.86 4 495 281.61 15 420 198.47 10 746 110.04

MANDLAKAZI 6 928 000 6 928 000 2 248 448.03 0.00 2 248 448.03 893 079.72

NONGOMA 43 413 000 23 412 300 9 787 556.92 0.00 9 787 556.92 9 787 556.92

JOZINI 150 730 275 130 000 000 56 838 890.89 8 355 815.03 65 194 705.92 54 883 816.88

DUKUDUKU 30 000 000 30 000 000 14 159 345.95 8 316 408.72 22 475 754.67 9 389 212.22

HLABISA 20 000 000 30 000 000 18 138 060.47 3 510 272.40 21 648 332.87 17 897 391.89

GREATER MTHONJANENI 32 900 000 32 900 000 11 306 269.66 2 450 904.16 13 757 173.82 11 306 269.66

LOWER TUGELA (ILEMBE) 80 000 000 80 000 000 30 946 476.75 10 510 437.69 41 456 914.44 6 998 513.88

LOWER TUGELA (UW) 50 000 000 85 630 975 70 177 299.67 0.00 70 177 299.67 27 019 556.94

BULWER 37 429 000 37 429 000 28 536 592.39 53 125.84 28 589 718.23 24 562 420.85

TOTALS 593 313 275 593 313 275 338 273 511 47 656 400 385 929 911 239 892 023

A2. MWIG: Expenditure 2013/14Scheme Budget

Allocation 2013/14

BAS Expenditure 30 Sept 2013

Invoices at Hand


2013

Proposed Budget


Reason for Re-allocation/ Movement

Implementation/


SISONKE

Mangwaneni Water Project

5,480,000.00 231,160.59 250,000.00 N/a N/a Construction

Pakkies Ext Phase 2

2,056,000.00 - - - N/a N/a Tender stage

Mqatsheni Stepmore Water Project


Mkhunya Water Project

1,957,000.00 - - - N/a N/a Preliminary Design stage

Greater Paninkukhu Water Project


Total 13,701,000.00 1 515 000 231,160.59 250,000.00 0 0


Allocation 2013/14

BAS Expenditure

30 Sept 2013

Invoices at Hand


2013

Proposed

Budget Realloca

tions 2013/14

Reason for Re-


Implementation/


UMKHANYAKUDE

KwaMsane Bulk Pipeline 7 500 000.00 223 358.29 150 000.00 N/A N/A Prelim. Design

Mabibi Scheme Refurbishment 3 000 000.00 180 000.00 121 116.48 N/A N/A Detailed

Design

District WCWDM 3 000 000.00 80 000.00 247 840.23 N/A N/A Construction

Ingwavuma Interim Water Supply 3 000 000.00 468 803.96 N/A N/A Prelim.

Design

Hluhluwe Phase 2 Refurbishment 500 000.00 110 000.00 - N/A N/A Prelim.

Design

Matshamhlophe Scheme Refurbishment 1 000 000.00 50 000.00 N/A N/A Prelim.

Design

Borehole Programme 9 074 000.00 R 280 000.00 N/A N/A Tender stage

TOTAL 27 074 000 .00 8 675 000 1 392 162.25 518 956.71

A2. MWIG: Expenditure 2013/14Scheme Budget Allocation

2013/14BAS

Expenditure 30 Sept 2013

Invoices at Hand


2013

Proposed Budget



Implementation/


UTHUKELA

Ezakheni/Emnambithi WCDM

R 3 861 383.00 0.00 R 3 861 383.00 N/A N/A Tender Stage

Umhlumayo R 6 901 680.02 0.00 R 6 901 680.02 N/A N/A Construction

Okhahlamba and Indaka boreholes

R 605 700.00 0.00 R 605 700.00 N/A N/A Design stage

Ezakheni ER 5 229 653.00 0.00 R 5 229 653.00 N/A N/A Tender stage

Total R14 000 000 2 061 000 0.00 16 598 416.02


Allocation 2013/14


Invoices at Hand


2013

Proposed

Budget Reallocations

2013/14


Implementation/


ILEMBE

KwaChili/Shangase Bulk Water Supply Augmentation

R19 292 293 R259 384,20 R82 060,20 R341 444,40 N/A N/A Construction

KwaDukuza Water Mains

Replacement

R21,000,000 R1,094,955.43 R2,308,629.24 R1 094,955.43N/A N/A

Bid Specification

TOTALS 40 292 293 3 563 000 2 390 689 1 436 399

UMZINYATHI N/A N/A

KwaSithole ( Stratford Farm) Water Scheme

R 12 041 953 R1,105,300.50 R 1,500.000.00 N/A N/A Construction

KwaSithole ( Stratford Farm) Water Scheme

R 12 041 953 R1,105,300.50 R 1,500.000.00 N/A N/A Construction

Nondwenii Water Treatment Works

R4,000,000.00 R1,109,543.12 R1,800.000.00 N/A N/A Construction

TOTALS R28 083 906 3 181 999 R3 320 144.12 R4 800 000 R0.00


Allocation 2013/14


Invoices at Hand


2013

Proposed Budget



Implementation/


ZULULAND DM

Kwankulu Rural Water Supply 12 652 021.99 546 729.54 546 729.54

N/A N/APrelim. Design

Dindi 07 Rural Water Supply 262 419.04 121 116.48 121 116.48

N/A N/APrelim. Design

Godlamkomo Rural Water Supply 536 987.17 247 840.23 247 840.23 N/A N/A Prelim. DesignHlopenkulu Rural Water Supply 1 548 571.81 714 725.45 714 725.45 N/A N/A Prelim. DesignEsikhumbeni Rural Water Supply - - - N/A N/A Prelim. Design

Henenende Water Supply R 15 000 000.00 R 1 267 785.40

R 285 915.24 N/A N/A Construction

Lomo Rural Water Supply R 100 000.00 R 0.00 R 108 892.80

N/A N/A Tender Docs

TOTALS R30 100 000 3 846 000 R2 898 197 R2 025 219 ????


Allocation 2013/14


Invoices at Hand


2013

Proposed Budget



Implementation/


UGU DM Extension of

Maphumulo water supply ( Ntukwini,

Qumbu ) R21 257 000 R0.00 R2, 343. 986 N/A N/A Construction

Totals 5 550 000 0 2 343 986

A3. ACIP : Expenditure 2013/14 Scheme Project Cost

DWA Commitment

Budget Allocation

2013/14

BAS Expenditure

29 October

2013

Invoices at Hand

Planned Cash Flow

end October 2013

Proposed Budget


Reason for Re-


Implementation/


SISONKE DM

Hlanganani / Polela 1 580 000 1 580 000 1 212 935 0 1 580 000 2 550 000

(+970 000)Initial allocation small

Construction

Underberg 970 000 970 000 0 0 0 0 (- 970 000)

Refurbished using MIG Cancelled

UMZINYATHI DM

Tugela Ferry 810 000 810 000 0 281 536 810 000 810 000 N/A Construction

ZULULAND DM Thulasizwe Hospital 430 000 430 000 28 893 0 178 893 430 000 N/A Construction

Itshelejuba Hospital 210 000 210 000 32 192 0 132 192 210 000 N/A Construction

AMAJUBA DM

Tweediedale 1 120 000 1 120 000 0 1 078 106 840 000 1 078 106 (-41 894) Savings Complete


DWA Commitment

Budget Allocation

2013/14

BAS Expenditure

29 October

2013

Invoices at Hand

Planned Cash Flow

end October 2013

Proposed Budget


Reason for Re-


Implementation/


NEWCASTLE LM

Kilbarchan 1 460 000 1 460 000 0 10 146 250 000 1 460 000 N/A Construction

Madadeni 4 420 000 4 420 000 0 152 000 1 100 000 4 420 000 N/A Construction

UTHUNGULU DM Owen Sithole Agric 1 120 000 1 120 000 0 0 250 000 1 120 000 N/A Construction

Catherine Booth 490 000 290 000 0 0 0 290 000 N/A Construction

Kwabadala 960 000 470 000 0 0 150 000 470 000 N/A Construction

UMKHANYAKUDE DM

Bethesda Hospital 2 820 000 2 820 000 0 0 567 200 2 836 000

(+16 000)Tender results

Contract awarded 16

October 2013

Hlabisa 2 300 000 2 300 000 0 0 500 000 2 500 000 (+200 000)

Tender results

Contract awarded 16

October 2013

Ingwavuma 2 000 000 2 000 000 0 0 460 000 2 300 000 (+300 000)

Tender results

Contract awarded 16

October 2013


DWA Commitment

Budget Allocation

2013/14

BAS Expenditure 29 October

2013

Invoices at Hand

Planned Cash Flow

end October 2013

Proposed Budget


Reason for Re-


Implementation/


UMKHANYAKUDE DM

KwaMsane 1 900 000 1 900 000 0 0 0 0 (-1 900 000)

DM re-prioritised Cancelled

Manguzi Hospital 1 520 000 1 520 000 0 0 0 0

(-1 520 000)DM re-

prioritised Cancelled

Mseleni 1 480 000 1 480 000 0 0 0 0 (-1 480 000)

DM re-prioritised Cancelled

St Lucia 2 620 000 0 2 686 185 0 N/A +2 686 185 Roll-over not approved

2012/13 completed

project

Mkuze 3 060 000 0 1 697 815 0 N/A +1 697 815Roll-over

not approved

2012/13 completed

project

ILEMBE DM

Vukile High School 100 000 100 000 0 0 25 000

(-75 000 ) Savings

TOTALS 31 370 000 25 000 000 5 658 010 1 521 788 24 883 103

15

A3. ACIP - Acceleration – Action PlansProject Name Description of project

Refurbishment of Madadeni WWTW

Madadeni WWTW

Implementing Agent Newcastle LM

Problem Late award due to protracted SCM processes within the LM

Impact on project If the appointed contractor fails to perform, the project won’t be completed within the financial year

Action Plan by DWA LM requested to ask the contractor to work weekends and holidays

Action Plan by IA To put pressure on the contractor to expedite refurbishment work

Re-allocation none

Completion date Feb 2014

Project Name Description of project Refurbishment of KilbarchanWWTW

Kilbarchan WWTW

Implementing Agent Newcastle LM


Impact on project If the appointed contractor fails to perform, the project won’t be completed within the financial year

Action Plan by DWA LM requested to ask the contractor to work weekends and holidays

Action Plan by IA To put pressure on the contractor to expedite refurbishment work

Re-allocation none


16

A3. ACIP - Acceleration – Action PlansProject Name

Description of project Refurbishment of Bethesda Hospital WWTW, Hlabisa Hospital WWTW, Ingwavuma WWTW, Kwamsane WWTW, Manguzi Hospital WWTW and Mseleni WWTW

Bethesda Hospital WWTW, Hlabisa Hospital

WWTW, Ingwavuma WWTW, Kwamsane

WWTW, Manguzi Hospital WWTW and Mseleni

WWTW

Implementing Agent Umkhanyakude DM

Problem Failure of DM to spend on 2012/13 financial year has resulted in spending 2013/14 budget on 2012/13 projectsLate award of contracts

Impact on project Reduction in the number of plants to be refurbished for the 2013/2014 financial year

Action Plan by DWA DM requested to ask the contractor to work weekends and holidaysClosely monitor contractors’ performance so as to reallocate funds if the performance is poor

Action Plan by IA To put pressure on the contractor to expedite refurbishment workRe-allocation None yet as the budget has been already reduced by spending on last financial year’s projects


Project NameDescription of project Refurbishment of Kwabadala WWTW, catherine Booth Hospital WWTW and Owen Sithole Agric. College

WWTW

Kwabadala WWTW, catherine Booth Hospital WWTW and Owen Sithole Agric. College WWTW

Implementing Agent Uthungulu DM


Impact on project If the appointed contractors fail to perform, the project won’t be completed within the financial year

Action Plan by DWA DM requested to ask the contractor to work weekends and holidays

Closely monitor contractors’ performance so as to reallocate funds if the performance is poorAction Plan by IA To put pressure on the contractor to expedite refurbishment workRe-allocation none


A4: NTP – Expenditure 2013/14 Project Name (2013/2014) WSA

DWA commitment to

project cost

Approved DWA 2013/2014

Funding

Actual Expenditure

To DateTransferred as at

end OctoberPlanned

Cashflow end Sept

Proposed Reallocation

Implementation progress

Enseleni WWTW uMhlatuze 2,785,000 2,785,000 514,163 844,770 696,250 No 18.46%Ngwelezana WWTW uMhlatuze 2,040,000 2,040,000 149,021 618,791 510,000 No 7.30%Vulindlela WWTW uMhlatuze 2,385,000 2,385,000 203,546 723,439 596,250 No 8.53%Gledhow Ilembe 11,139,000 11,139,000 1,348,737 7,797,300 2,784,750 No 12.11%Newcastle WWTW Newcastle 8,000,000 8,000,000 345,207 5,600,000 2,000,000 No 4.32%Charlestown WWTW Newcastle 1,682,000 1,682,000 - 1,177,400 420,500 No 0.00%Eden Wilds WWTW Ugu 1,200,000 1,200,000 - 840,000 300,000 No 0.00%Umzinto WWTW Ugu 1,800,000 1,800,000 - 1,260,000 450,000 No 0.00%Red Desert WWTW Ugu 2,565,000 2,565,000 - 1,795,500 641,250 No 0.00%Jozini WTW uMkhanyakude 3,500,000 3,500,000 416,842 2,450,000 875,000 No 11.91%Jozini WWTW uMkhanyakude 2,022,000 2,022,000 - 1,415,400 505,500 No 0.00%Mbazwane WTW uMkhanyakude 3,500,000 3,500,000 770,111 2,450,000 875,000 No 22.00%Nondweni WTW uMzinyathi 3,000,000 3,000,000 1,601,838 2,100,000 750,000 No 53.39%Witkop WTW uMzinyathi 3,000,000 3,000,000 334,127 2,100,000 750,000 No 11.14%Silutshane WTW uMzinyathi 5,442,000 1,500,000 727,465 1,050,000 375,000 No 48.50%Archie Rodel WTW Uthukela 6,000,000 6,000,000 113,626 4,200,000 1,500,000 No 1.89%King DiniZulu WWTW uThungulu 3,124,000 3,124,000 - 2,163,000 781,000 No 0.00%Nongoma WWTW Zululand 6,295,000 6,295,000 3,262,705 4,406,500 1,573,750 No 51.83%Nongoma WTW Zululand 2,526,000 2,526,000 536,098 1,768,200 631,500 No 21.22%Nkongolwane WTW Zululand 5,133,876 4,321,284 473,114 - 480,143 No 10.95%Emondlo WTW Zululand 5,245,124 2,578,716 32,234 - 286,524 No 1.25%Dannhauser WTW Amajuba 1,500,000 1,500,000 415,379 1,050,000 375,000 No 27.69% TOTALS FOR KZN 83,884,000 76,463,000 11,244,214 45,810,300 18,157,417 14.71%

A4: Graphical Representation NTP, KZN

Zululand uMkhanyakude Ugu uThungulu Umzinyathi Amajuba Uthukela iLembe Newcastle uMhlatuze0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Allocation2013/14

Target, END SEPTTransferred END SEPTActual Expenditure

A4: Progress per WSA

WSAAllocation2013/14 Target,

END SEPTTransferred

END SEPTActual

Expenditure

Zululand 15,721,000 3,930,250 2,646,300 4,304,151

uMkhanyakude 9,022,000 2,255,500 2,706,600 1,186,953

Ugu 5,565,000 1,391,250 1,669,500 0

uThungulu 3,124,000 781,000 2,163,000 0

Umzinyathi 7,500,000 1,875,000 2,250,000 2,663,431

Amajuba 1,500,000 375,000 450,000 415,379

Uthukela 6,000,000 1,500,000 1,800,000 113,626

iLembe 11,139,000 2,784,750 3,341,700 1,348,737

Newcastle 9,682,000 2,420,500 2,904,600 345,207

uMhlatuze 7,210,000 1,802,500 937,000 866,730

Total 76,463,000 19,115,750 20,868,700 11,244,214

B: Key Challenges

RBIG• Irregular appointment of ISD Consultants.• Funding shortfall of projects• Final approval of the Greater Bulwer Scheme• Sluggish in flow of co-funding portion of funding• Additional cost of project value due to terminated

contracts.• Non-Performing DM’s – UGU DM. they are under

resourced resulting in poor management.

B: Key Challenges

RBIG–DMs delaying to pay contractors, and contractors constantly have to leave site e.g. uMzinyathi DM contractors

MWIG–Delays have been experienced in getting environmental approvals (e.g. KwaSithole Project)–Delays have been experienced in appointing specialised contractors (e.g. Nondweni WTW)–Project has been hampered with rain (e.g. Nondweni WTW)

B: Key Challenges on NTPNTP• Protracted SCM procedures within WSAs. Unreasonable

amount of time to get contractor appointed• Having to initiate, implement and close out a project all within

the space of a year• Weak WSAs i.e. inherent problems in their finance and PMU

departments• Non compliance of WSAs – inability to submit invoices and

supporting documentation timeously• Non payment of contractors by WSAs due to poor project

management within the WSAs• Lack of skilled human resources within the WSAs

C: Project to be “Fast Track”

•ZULULAND DM: –Mandlakazi WTW to enable reliable supply to Hlabisa

D: Projects to be Launched

• Middledrift WTW – 26 November 2013• Hlabisa BWS – 30 November 2013

E: Way forward

• National office to advice in time if additional funding will be made available for the ZDM projects that will be half complete should additional funding not be made available i.e. Mandlakazi WTW, as well as the completion of uSuthu BWS

25

END

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Documents

WS Infrastructure Programme Quarterly Workshop KWAZULU-NATAL Presented by: M. Ngxongo Regional Project Manager: WSRBIP Date: 31 October 2013