Water InfrastructureSeptember 2015

EXECUTIVE SUMMARY FOR TREASURY APPROVAL: I AND FOR PUBLIC PARTICIPATION

Study Area and Project Objectives

• Study Area

– The study area includes Seshego B, Seshego C, Annadale and the Central Business District (CBD) of Polokwane City

• Project Objective

– The primary objective of the project is the reduction of un-accounted for water (currently estimated at 43%) in the three areas to acceptable levels

Replacement and upgrading of water pipes in the Seshego, Annadale and Polokwane CBD area

Study Area and Project Objectives

Needs Assessment

• Needs Assessment

– Asbestos Cement (AC) are 50 to 60 years old, reached end of design life

Frequent pipe bursts (this will increase)

High levels of water losses (this will increase)

High repair and maintenance costs (this will increase)

Existing pipe sizes may no longer be adequate to meet LoS requirements

Most water reticulation pipes in Seshego are mid-block - access for operation & maintenance crews is restricted

Option Analysis

• Pipe Laying Options

– Conventional open trench pipe laying techniques

Hand excavation

Machine excavation

– Trenchless pipe-laying techniques

Moling

Pipe bursting / pipe cracking

Slip-lining

Pipe jacking

• Pipe Material Options

– Most suitable pipe materials for replacing the AC pipes are:

unPlasticized Polyvinyl Chloride (uPVC) pipes (open trench pipe-laying techniques)

High-Density Polyethylene (HDPE) pipes (open trench pipe-laying and trenchless techniques)

Option Analysis

• Seshego B & C

– Residential area, and conventional open trench pipe-laying will be most suitable, and EPWP can be used

– unPlasticized Polyvinyl Chloride (uPVC) pipes will be most suitable

• Annadale

– Annadale (mostly residential area) conventional open trench pipe-laying will be most suitable, and EPWP can be used

– unPlasticized Polyvinyl Chloride (uPVC) pipes will be most suitable

• Central Business District (CBD)

– High density developments and limited working space, a combination of conventional open trench and trenchless pipe-laying techniques is considered most suitable for the CBD

Due Diligence

• Staffing Requirements

– No extensions are being made to the existing reticulation networks, therefore no additional staff will be required as a result of this project

– Training will be required for personnel in handling HDPE pipe repairs

• Environmental Issues

– Asbestos is a hazardous substance which poses a serious health hazard to people if it is not handled properly and is allowed to become air-borne

– Handling and disposal of materials which contain asbestos should be carried out in accordance with the Asbestos Regulations, 2001 (Regulation 155 of the OHS)

– Asbestos pipes buried in the ground are unlikely to cause a health hazard as long as they remain buried

– Where possible the replacement of AC should be done without exposing or removing the old pipes (This has been done in several towns e.g. Rustenburg)

Due Diligence

• Land Ownership

– Not likely to present any challenges as space is specifically provided for utility services

– Property owners must be consulted and notified in time in order to obtain access to their properties when replacing mid-block pipes in Seshego

• Geotechnical Issues

– Geotechnical assessments: determine excavation quantities, bedding requirements and inform selection of pipe materials

– Geotechnical investigations: undertaken during the project planning (before detailed design)

• Hydraulic Modelling of Networks

– Optimisation of pipe diameters for current and future water requirements

– Determine baseline for reduction of water losses and un-accounted for water

Due Diligence

• Selection of Pipe Replacement Technique

– Selection of replacement technique will be crucial in respect of:

project implementation timeframes

project costs

Involvement of local companies and labour

– Estimates of lengths for trenchless and open trench methods

Area Trenchless (m) Open Trench (m)

CBD 15 667 51 914

Annandale 0 17 425

Seshego 0 45 544

Due Diligence

• Integration with current & future projects

– Coordination with current and planned projects, i.e. ongoing meter replacement (part of a broader WC/WDM strategy) of the Polokwane Municipality

– Retro-fitting of water and sanitary fixtures in Seshego and other low income residential areas should also be prioritised

– Replacement of old water pipe networks should be extended to other areas in future phases

• Site Issues

– Project to be implemented in built-up areas:

• Limited working space

• Strategies required to maintain LoS to water consumers

• Minimise disruptions to other services during construction

• Traffic management

• Community liaison

Project RisksDesign Stage Risks

Risk Consequence Mitigation

Delay in completion of designs Delayed implementationIncreased costsContinued discharge of poor effluent

Clear realistic deadlines Penalty clause

Available information is inaccurate or incomplete

Incorrect conclusions and decisions Budget to verify information & further investigations

Inaccurate sizing of pipelines Pre-mature upgrading costsNon-cost effective designHigh maintenance costs

Detailed consumer profilingInvestigate current & future water useHydraulic modelling

Design errors and omissions Infrastructure fails to performAdditional funds to rectify Over-design: wasteful expenditure.

Experienced PSP +Adequate PI insurance cover

Costing errors Insufficient to complete project Appoint experienced PSP + expert review

Project Risks

Procurement Stage Risks

Risk Consequence Mitigation

Delays due to prolonged procurement processes

Delayed project completionIncreased costs

Detailed planning of procurement process

Lack of market interest to submit bids for PPP tender

Project fails to take off Advertise widely

Tender Loopholes - selection of Contractor with no capacity

Delayed project completionFailure to completeRe-tendering costs

Governed by SCM requirements

High prices - lack of clarity on project risks

Budget not sufficient Detailed investigations Workshops to clarify risks

Below cost tender price Contractor fails to complete project Rigorous evaluation - Rejection of below cost tenders

Project Risks

Construction Stage Risks

Risk Consequence Mitigation

Delays Delayed completionIncreased costs

Realistic deadlinesPenalty clause in contract

Cost overruns Increased costs Possibly higher tariffs

Detailed work plan

Poor quality of work High maintenance costs Sufficient specification, construction monitoring + rigorous acceptance testing

Contractual disputes Delayed completionIncreased costs

Minimise vague clauses in contractClear dispute resolution procedures

Exposure to asbestos Persons contracting diseasesPossible financial claims

Authorised contractorCompliance with Asbestos Regulations

Project Risks

Construction Stage Risks

Risk Consequence Mitigation

Injury to persons Injuries or fatalities Financial claims

Compliance with OHS rulesCompetent OHS personnel

Damage to adjacent services Loss of servicesInconveniencePossibility of claims

Identify exact locations of existing servicesCareful planning and execution of work

Damage to environment Environmental degradation Monitoring and controlRehabilitation measures

Industrial action by workers Delays and cost implications Appropriate insurance cover

Prolonged disruption of services Public inconveniencePossible financial losses

Alternative services provision