PRESENTATION TITLEPresented by:Name SurnameDirectorateDate

Presentation to the Portfolio Committee on Water and Sanitation

on the Bucket Eradication Programme

Steven ArumugamActing Director-General: NWRIDate: 23 May 2017

BUCKET TOILET BACKLOG AND PROGRESS SUMMARY AS AT 19 MAY 2017

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DWS verified Bucket Eradication Target 52 249

LESS – Completed Work as at 19 May 2017 26 957

Outstanding Work to be completed 25 292

To be completed by May 2017Implementing Agents – 10 899

DWS – 14 393

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APPOINTMENT OF IMPLEMENTING AGENTS FOR THE ERADICATION OF BUCKETS

• Troika suggested the use of Public Entities to commence implementation of the programme in 2013 with a view of replacing all buckets by March 2014 (6 months)

• Original scope – dry sanitation – revised scope (Water borne sanitation)

• The change in scope Inevitably has both a time and cost implication

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PHASING OUT OF IA’S

•EC

•Implementing Agent : NURCHA•Completion Date: June 2015 (Closing off Project)

•LP •Implementing Agent : LEPELLE•Completion Date: Completing remaining Units

•FS•Implementing Agent : BLOEM WATER /BABEREKI•Completion Date: May 2016 AND ON-GOING

•NC

•Implementing Agent : MISA•Completion Date: September 2015 (IA terminated Contract of

Contractor)

•NC

•Implementing Agent : SEDIBENG WATER•Completion Date: June 2017

•NW

•Implementing Agent : MAGALIES WATER•Completion Date: December 2014

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PROJECT PACKAGING AND IMPLEMENTATION

PROVINCE CONTRACTOR NUMBER OF PROJECTS

COMPLETED PROJECTS

Eastern Cape DWS Contractor 3 3

Free StateBloemwater / Babereki 13 1

DWS Contractor 12 3

Northern Cape Sedibeng Water Board 2 0

DWS Contractor 16 9

North West DWS Contractor 2 2

TOTAL 48 18

PROJECT METHODOLOGY AND SCOPE

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7

Ince

ption

Proj

ect P

eak

Proj

ect C

lose

-Out

Sept 2015 Sept 2016 March 2018

• Introduction of the National Approach to Munic’s

• Participation of SMME’s in projects

• Disputes over labour rates• Productivity of labour• Material availability

• Outstanding Designs vs completed designs

• Very difficult soil conditions (no feasibility since its

formalised areas)• Review of design based on

soil conditions• Close proximity of houses

use manual excavations• Extent of the work to be

performed excessive• Funding to complete project

slow progress for 2 months

THE PROJECT CYCLE

PROJECT FLOW• By MARCH 2015, 98% of toilet structures were completed with

reticulation in progress• Installation of services (Work in progress) excessive to conclude by

March 2015 however, only 5 projects (quick win) were concluded;• Toilets will only be flushing once reticulation is complete• BEP did not meet the proposed target date – overflow into the next

financial year as work progress and toilets are connected• Aged infrastructure / Replacement of infrastructure

Mar /Apr 16

2015/16 2016/17

March 2018Sept 2015 Sept 2016

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BEP PERFORMANCEDWS Contractors

Province Target Units Completed

Flushing /Handed

over

Not yet Flushing / handed

over

Structures to be

constructed

Reticulation(% completed on Average )

Water Sewer

NC 7 618 7 134 5 278 1 856 484 92% 94%

EC 3 319 3 319 3 319 0 0 100% 100%

NW 223 223 223 0 0 100% 100%

FS 13 880 13 698 1827 11 871 182 56% 67%

TOTAL 25 040 24 374 10 647 13 727 6669

BEP PERFORMANCEImplementing Agents

Province Target Units Completed

Flushing /Handed

over

Not yet Flushing / handed

over

Structures to be

constructed

Reticulation(% completed on Average )

Water Sewer

NC 1 114 1 114 0 1114 0 98% 98%

FS 9 785 3204 430 2 774 6 581 WIP WIP

TOTAL 10 899 4 318 430 3 888 6 581

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CASHFLOW PROJECTION FOR BEP2013/14

R’0002014/15

R’0002015/16

R’0002016/17

R’0002017/18

R’000TOTALR’000

Allocation 650 000 899 177 975 399 422 000 328 000 3 274 576

Expenditure650 000

(transferred to IA’s)

281 779 998 466 831 390 190 616 2 952 251

Roll-over -389 300

(not approved

)- -

Forfeited - 617 398 - -

• In 2015/16 some R206,1m was paid to IA’s whom should have completed projects in 2014/15 thus reducing the R975,3m allocation effectively to R769,2m;

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BUCKET ERADICATION PROGRAMMEPROPOSED PROJECT COMPLETION

Target Completed

Flushing

To be completed

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

FS 13 880 13 698 1827 182

NC 7618 7 134 5 278 484

EC 3319 3 319 3 319 0 - - - -

NW 223 223 223 0 - - - -

TOTAL 25040 24 374 10 647 66612

BEP EXPENDITURE: CONTRACTORS

PROVINCE BOQ EXPENDITURE TO DATE

AVAILABLE TO DATE

OUTSTANDING BALANCE

Eastern Cape 260 280 260 280 -

Free State 1 609 410 931 328137 384

678 082

Northern Cape 857 477 522 831 334 646

North West 16 369 16 369 -

TOTAL 2 743 536 1 730 808 137 384 875 344

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BEP EXPENDITURE: IA’S

PROVINCE ALLOCATIONR’000

EXPENDITURE TO DATE

OUTSTANDING BALANCE

R’000

LimpopoLepelle Northern

Water134 876 117 752 17 124

MISA 4 536 - 4 536

Northern CapeSedibeng Water 36 324 7 430 28 894

TOTAL 175 736 125 182 50 554

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VARIATION ORDERS RECEIVED - DWS TURNKEY CONTRACTORS

PROVINCE VARIATION ORDERS AT HAND OUSTANDING BALANCE R’000

Free State 9 417 9 417

Northern Cape 61 763 61 763

TOTAL 71 180 71 180

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BEP COST – PROJECT MANAGERS

PROVINCE

TOTAL VALUE PROJECT

MANAGERS R’000

AMOUNT PAID TO PROJECT

MANAGERS PROJECT MANAGEMENT FEES BASED ON PROJECT

COSTOUTSTANDING BALANCE(8%)

R’000

Eastern Cape 20 822-

20 822

Free State 99 12410 071

89 053

Northern Cape 63 61822 455

41 163

TOTAL 183 564 32 526 151 03816

SHORTFALL SUMMARY

SERVICE PROVIDERALLOCATION

R’000

DWS-Turnkey Contractors 875 344

Implementing Agents 50 554

Project Managers 151 038

Variation Orders 71 180

TOTAL 1 148 116

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WATER SERVICES INFRASTRUCTURE GRANT (WSIG) ALLOCATION 2017/18 FY

PROVINCE ALLOCATION

Free State 256 400 000.00

Northern Cape 71 600 000.00

TOTAL 328 000 000.00

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REGIONAL BULK INFRASTURE GRANT (RBIG) ALLOCATION 2017/18 FY

PROVINCE ALLOCATION

Eastern Cape 12 000 000.00

Free State 204 877 624.00

Northern Cape 17 000 000.00

TOTAL 233 877 624.00

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NATIONAL TREASURY RESPONSE

• Numerous engagements with National Treasury were done,

• National Treasury directed the Department to revise its budget allocation on WSIG to cover the budget shortfall,

• The Department was only able to allocate R328 million towards the programme

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MOTIVATION FOR ADDITIONAL FUNDING

• With 97% Top Structures (Toilets) built approximately 43% of such are currently connected and flushing;

• Infrastructure is already installed in all the projects • Un-connected toilets will be subject to use like a pit

latrine / bucket toilet and risk spillages and pollution;• High risk of vandalism on constructed toilets and

reticulation;• Increase in cost of completing the project• Litigations from contractors / claims for standing time

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The End – Thank YouWATER IS LIFE – SANITATION IS DIGNITY