Department of EnergyElectrification Indaba

15-16 March 2012

Presenter: Serutle NtlatlengEnergy Department

CITY OF EKURHULENI

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Content

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• Background

• Service Delivery Backlogs

• High Level Budget Overview

• INEP Funding History and performance

• 2011/12 - Current Projects

• 2012/13 – Proposed Projects• 2013/14 – Applications to be submitted

• Challenges

• Conclusion

BACKGROUND

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TOTAL AREA 2000 KM²

TOTAL POPULATION

•STATS SA 2001 2,7 mil

•PROJECTED 2010 3 mil

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Service Delivery Backlogs

Units Units Cost

Electrification 120 000 Formal Households

R2 Billion

165 000 Informal Households

2.8 Billion

Network Upgrade - R800 Million

Street Lighting 16 000 Poles R20 Million

High mast Lighting 500 Masts R75 Million

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High Level Budget OverviewItem 2010/2011 2011/2012 2012/2013 2013/2014

CAPEX R327 million R385 million R298 million R263 million

INEP Funding History and performance

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Financial Year 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2011/2012

Amount R 4 mil R 8 952 000.00 R 0.00 R 25 mil R 100 mil R 73 mil

Status Complete Complete N/A Complete Current Planned

• 2007-2009 – DoE not happy with EMM performance – Funded projects not completed on time– Lack of communication, process alignment and failure to report

• 2009/10 – DoE withdrew funding– Intervention by other Metro’s and AMEU– Also EMM introduced new faces to electrification section – Improved communication, reporting and processes

• 2010/11 – DoE made aware of existing EMM backlog– All funded projects successfully completed– More funding made available to address the huge backlog

CURRENT PROJECT – 2011/12Current Projects STANDS DoE Funding Internal Funding Total cost Status

Esselen Park Ext 2 623 R 4 547 900.00 R 5 420 100.00 R 9 968 000.00100% Complete

Eden Park ext 5 Electrification 2450 R 17 885 000.00 R 21 315 000.00 R 39 200 000.0090% Complete

Eden Park ext 4 Electrification 199 R 1 452 700.00 R 1 731 300.00 R 3 184 000.00100% Complete

Tinasonke Electrification 719 R 5 248 700.00 R 6 255 300.00 R 11 504 000.00100% Complete

Palm Ridge Electrification Phase 1 1799 R 13 132 700.00 R 15 651 300.00 R 28 784 000.00100% Complete

Palm Ridge Electrification Phase 2 849 R 6 197 700.00 R 7 386 300.00 R 13 584 000.00100% Complete

Palm Ridge Electrification Phase 33131

R 22 856 300.00 R 27 239 700.00 R 50 096 000.0095% Complete

Winnie Mandela Tswelopele Phase 4 140 R 1 022 000.00 R 1 218 000.00 R 2 240 000.00100% Complete

Tswelopele Ext 5 1200 R 8 760 000.00 R 10 440 000.00 R 19 200 000.00100% Complete

Gelusdal Ext.3719

R 5 248 700.00 R 6 255 300.00 R 11 504 000.00 100% Complete

Chief Albert Luthuli Ext.2 267 R 1 949 100.00 R 2 322 900.00 R 4 272 000.00Contractor Appointed

Chief Albert Luthuli Ext.3 281 R 2 051 300.00 R 2 444 700.00 R 4 496 000.00Contractor Appointed

Chief Albert Luthuli Ext.5 544 R 3 971 200.00 R 4 732 800.00 R 8 704 000.00Procurement Process

Enixiweni 121 R 883 300.00 R 1 052 700.00 R 1 936 000.00100% Complete

Edayeni 90 R 657 000.00 R 783 000.00 R 1 440 000.00Contractor Appointed

Kwa-thema Ext. 3 567 R 4 139 100.00 R 4 932 900.00 R 9 072 000.00Procurement Process

TOTAL 13699 R 100 002 700.00 R 119 181 300.00 R 219 184 000.00 

More than 80% connections report by end Feb

2012/13 Proposed Projects

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Projects STANDS Subsidy Level DoE Funding

Palm Ridge Electrification Phase 4A1779

R 10 000/con R 17 790 000.00

Palm Ridge 33/11/6.6kV, 2x20MVA Sub 0 N/A R 31 292 899

Daveyton 132/11kV, 2x40MVA Sub 0N/A R 23 917 101

TOTAL 1779 N/A R 73 mil

The projects have been submitted to DoE and site inspection is schedules

2013/14 Applications

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20 000 connections/annum will help reduce the backlog

Current Projects STANDS DoE Funding Internal Funding Total cost Status

Palm Ridge Electrification Phase 4B 2365 R 23 650 000.00 R 14 190 000.00 R 37 840 000.00Contractors appointed

Palm Ridge Electrification Phase 5 3321 R 33 210 000.00 R 19 926 000.00 R 53 136 000.00 Design Stage

Palm Ridge Electrification Phase 6 6372 R 63 720 000.00 R 38 232 000.00 R 101 952 000.00 Design Stage

Mayfield Ext.1 1860 R 18 600 000.00 R 11 160 000.00 R 29 760 000.00 Design Stage

Mayfield Ext.6 2040 R 20 400 000.00 R 12 240 000.00 R 32 640 000.00 Design Stage

Mayfield Ext.7 800 R 8 000 000.00 R 4 800 000.00 R 12 800 000.00 Design Stage

Mayfield Ext.8 1134 R 11 340 000.00 R 6 804 000.00 R 18 144 000.00 Design Stage

Mayfield Ext.9 560 R 5 600 000.00 R 3 360 000.00 R 8 960 000.00 Design StageMayfield Ext.11 318 R 3 180 000.00 R 1 908 000.00 R 5 088 000.00 Design StageEkuthuleni 400 R 4 000 000.00 R 2 400 000.00 R 6 400 000.00 Design Stage

Chief Albert Luthuli Ext.6 3983 R 39 830 000.00 R 23 898 000.00 R 63 728 000.00 Design Stage

Kwa-Thema Ext 5 ***   R 0.00 R 0.00 R 0.00 FeasibilityLangaville Ext 10 ***   R 0.00 R 0.00 R 0.00 FeasibilityEsselen Park Ext ***   R 0.00 R 0.00 R 0.00 FeasibilityVila Lisa Ext ***   R 0.00 R 0.00 R 0.00 FeasibilityJohn Dube Village   R 0.00 R 0.00 R 0.00 Feasibility

Clayville Ext 45 2196 R 21 960 000.00 R 13 176 000.00 R 35 136 000.00 BNG

Windmill Park Ext 16-20 2000 R 20 000 000.00 R 12 000 000.00 R 32 000 000.00 BNG

TOTAL 27349 R 273 490 000.00 R 210 587 300.00 R 437 584 000.00  

Challenges – Municipal Level

Finance department can only allow DORA approved projects to be initiated for implementation

The growing backlog of formal townships without access to electricity due to high rate of formalisation

The growing backlog of informal settlements due to high rate of urbanisation

The growing backlog of infrastructure maintenance and upgrading due to aging networks and demand

Illegal connections causing network failures due to overloading

High levels of theft and damage to infrastructure put pressure on already stretched resources

Challenges – DoE Level

Bare minimum specification compromising the quality of service

Designs for pure overhead systems vs. underground & high-breed systems

20Apms supply vs. 40/60Amps supply

Revenue enhancement initiatives e.g. split metering, protective boxes, etc.

Policy constraints e.g. 80% occupation, relocation of services

Electrification of informal settlement

Funding levels, both cost/conn and INEP allocation

Reporting requirements i.e. MM Signature, Social Indexes

Short notice for approved projects on DORA

Conclusion

EMM had performance challenges on the INEP

Indication are that performance on INEP is improving

Good communication and reporting are key for the success of the municipality on the INEP

The municipality is faced with a huge backlog and requires special intervention from DoE

EMM is committed to work closely with DoE in eradicating the electrification backlog.

THANK YOU

QUESTIONS

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