CITY OF EKURHULENI Department of Energy Electrification Indaba

CITY OF EKURHULENI Department of Energy Electrification Indaba 15 -16 March 2012 Presenter: Serutle Ntlatleng Energy Department 1

Content • 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 2

BACKGROUND TOTAL AREA 2000 KM² TOTAL POPULATION • STATS SA 2001 2, 7 mil • PROJECTED 2010 3 mil 3

Service Delivery Backlogs Units Cost Electrification 120 000 Formal Households R 2 Billion 165 000 Informal Households 2. 8 Billion Network Upgrade - R 800 Million Street Lighting 16 000 Poles R 20 Million High mast Lighting 500 Masts R 75 Million 4

High Level Budget Overview Item 2010/2011/2012/2013/2014 CAPEX R 327 million R 385 million R 298 million R 263 million 120000000 10000 80000000 2010 / 2011 60000000 2011 / 2012 / 2013 40000000 2013 / 2014 20000000 0 Lighting Revenue enhancement Energy efficiency Network enhancement Operational requirements Substations Electrification 5

INEP Funding History and performance Financial Year 2007/2008/2009 Amount R 4 mil Status Complete 2009/2010/2011 R 8 952 000. 00 R 0. 00 Complete N/A 2011/2012 R 25 mil R 100 mil R 73 mil Complete Current Planned • 2007 -2009 – Do. E not happy with EMM performance – Funded projects not completed on time – Lack of communication, process alignment and failure to report • 2009/10 – Do. E withdrew funding – Intervention by other Metro’s and AMEU – Also EMM introduced new faces to electrification section – Improved communication, reporting and processes • 2010/11 – Do. E made aware of existing EMM backlog – All funded projects successfully completed – More funding made available to address the huge backlog 6

CURRENT PROJECT – 2011/12 Current Projects STANDS Do. E Funding Internal Funding Total cost Esselen Park Ext 2 623 R 4 547 900. 00 R 5 420 100. 00 R 9 968 000. 00 Eden Park ext 5 Electrification 2450 R 17 885 000. 00 R 21 315 000. 00 R 39 200 000. 00 Eden Park ext 4 Electrification 199 R 1 452 700. 00 R 1 731 300. 00 R 3 184 000. 00 Tinasonke Electrification 719 R 5 248 700. 00 R 6 255 300. 00 R 11 504 000. 00 Palm Ridge Electrification Phase 1 1799 R 13 132 700. 00 R 15 651 300. 00 R 28 784 000. 00 Palm Ridge Electrification Phase 2 849 R 6 197 700. 00 R 7 386 300. 00 R 13 584 000. 00 R 22 856 300. 00 R 27 239 700. 00 R 50 096 000. 00 Winnie Mandela Tswelopele Phase 4 140 R 1 022 000. 00 R 1 218 000. 00 R 2 240 000. 00 Tswelopele Ext 5 R 8 760 000. 00 R 10 440 000. 00 R 19 200 000. 00 R 5 248 700. 00 R 6 255 300. 00 R 11 504 000. 00 Palm Ridge Electrification Phase 3 Gelusdal Ext. 3 3131 1200 719 Chief Albert Luthuli Ext. 2 267 R 1 949 100. 00 R 2 322 900. 00 R 4 272 000. 00 Chief Albert Luthuli Ext. 3 281 R 2 051 300. 00 R 2 444 700. 00 R 4 496 000. 00 Chief Albert Luthuli Ext. 5 544 R 3 971 200. 00 R 4 732 800. 00 R 8 704 000. 00 Enixiweni 121 R 883 300. 00 R 1 052 700. 00 R 1 936 000. 00 Edayeni 90 R 657 000. 00 R 783 000. 00 R 1 440 000. 00 Kwa-thema Ext. 3 567 R 4 139 100. 00 R 4 932 900. 00 R 9 072 000. 00 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 Status 100% Complete 90% Complete 100% Complete 95% Complete 100% Complete Contractor Appointed Procurement Process 100% Complete Contractor Appointed Procurement Process

2012/13 Proposed Projects STANDSSubsidy Level Palm Ridge Electrification Phase R 10 000/con 4 A 1779 Palm Ridge 33/11/6. 6 k. V, 0 N/A 2 x 20 MVA Sub Daveyton 132/11 k. V, 2 x 40 MVA 0 Sub N/A TOTAL 1779 N/A Do. E Funding R 17 790 000. 00 R 31 292 899 R 23 917 101 R 73 mil The projects have been submitted to Do. E and site inspection is schedules 8

2013/14 Applications Current Projects STANDS Do. E Funding Internal Funding Total cost Status Palm Ridge Electrification Phase 4 B 2365 R 23 650 000. 00 R 14 190 000. 00 R 37 840 000. 00 Contractors 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. 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 Mayfield Ext. 11 Ekuthuleni 560 318 400 R 5 600 000. 00 R 3 180 000. 00 R 4 000. 00 R 3 360 000. 00 R 1 908 000. 00 R 2 400 000. 00 R 8 960 000. 00 R 5 088 000. 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 *** Langaville Ext 10 *** Esselen Park Ext *** Vila Lisa Ext *** John Dube Village R 0. 00 R 0. 00 Feasibility 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. 00 R 12 000. 00 R 32 000. 00 BNG TOTAL 27349 R 273 490 000. 00 R 210 587 300. 00 R 437 584 000. 00 20 000 connections/annum will help reduce the backlog 9

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 – Do. E Level Bare minimum specification compromising the quality of service Designs for pure overhead systems vs. underground & high-breed systems 20 Apms supply vs. 40/60 Amps 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 Do. E EMM is committed to work closely with Do. E in eradicating the electrification backlog.

THANK YOU & QUESTIONS 13