CLANWILLIAM WATER PROJECT PRESENTATION TITLE Presented by Name

CLANWILLIAM WATER PROJECT PRESENTATION TITLE Presented by: Name Surname Presented by: Directorate Mr D Mashitisho Date Director-General 23 May 2017

Project Background • Clanwilliam Dam was originally built in 1935 on the Olifants River in the Western Cape Province in the vicinity of Clanwilliam Town. • It was later raised to the current level, with storage capacity of 128 million m 3, in 1969 to provide for an increasing irrigation demand. The Olifants / Doring River Basin Study - Phase II – Possible Raising of Clanwilliam Dam (DWAF, 2003), which formed part of the Olifants/Doring River Basin Study Phase II, concluded that the Department investigate the feasibility of raising the dam in conjunction with the rehabilitation of the dam wall. • Raising the full supply level would increase the storage capacity and yield of the dam and improve water availability, which is currently considered inadequate for the high value crops produced under the scheme. 2

Project Background Cont. • The Feasibility Study completed in October 2007 considered the implications of raising the dam. The study found that raising the dam was technically feasible, economically viable and recommended that the existing dam wall be raised by 13 metres. By extending the dam wall on the downstream side and then raising it to the higher level. • The Record of Implementation Decision (RID) dated April 2013 indicates a capital cost estimate for the raising of the dam wall by 13 m is for an amount of R 1 830 000. 00. • Construction South provided a tender bid offer, for an amount of R 2 055 314 936. 97 (incl VAT), on the full scope of the abovementioned project in June 2013. This tender bid offer was subsequently accepted and a letter was issued to Construction South dated 10 December 2013, appointing them as contractor on the Raising of the Clanwilliam Dam project 3

Project Background Cont. • As per the programme provided by Construction South at the time of bidding on the project, the anticipated commencement date was estimated to be 02 September 2013 with a project duration of 55 months and subsequent completion date of 21 May 2018. • Construction South commenced with site establishment activities on 09 June 2014 and activities carried out by Construction South consisted of services and infrastructure as follows: A) Services • • • Contract Management Construction Plant and Equipment Management Engineering design Environmental Management Financial Management Human Resources Management Occupational Health and Safety Management Quality Management Safety Management Supply Chain Management Surveying Risk Management 4

Project Background Cont. B) • • • • Infrastructure Batch plants: Karoo, Liebherr, Icon Diesel bunded area Fence lines Laboratory Offices: contractor, engineer Parking areas and helipad Raw water treatment plant Roads (access and site) and storm water Sedimentation ponds Store and store yard Topsoil area Water and sewage lines Works areas: sub-contractors yard, precast yard, steel yard Workshops: mechanical, welding/electrical, carpenter 5

Project Background Cont. During the execution of their work, Construction South raised a number of challenges that they experienced on site. The key issue that Construction South Unit emphasised was the delay in the awards of the tenders through the current Supply Chain Management system within the Department. Another issue to note is that the delegations in terms of the appointment of National Water Act Section 76 personnel were withdrawn from the Chief Director: Construction Management, Director: Construction Support and the units Contract Managers. All appointments had to be signed by the previous DG, and/or DDG depending on the level of the appointment. Physical work which could have commenced after site establishment includes hard excavation, drilling and grouting, supply and delivery of aggregates, supply of cement and PFA, supply and delivery of formwork – all these tenders were submitted to DBAC. No work on the dam itself could have commenced without these tenders first being awarded. 6

Project Background Cont. Following the challenges highlighted by Construction South, a review of the existing implementation for the project was subsequently carried out, listing possible options to mitigate the detrimental effects on the successful implementation of the Raising of Clanwilliam Dam. The review of the existing implementation model was documented in the submission to then Director-General appraising her of the possible options available and to request approval of option 2 C. An alternative implementation model was approved by then Director. General on 19 November 2015. This model requires the procurement of a private sector contractor to construct the raising of Clanwilliam Dam. In order to apply the approved implementation model and to procure the private sector contractor as required, private contractors with CIDB Grade 9 CE from the Department of Water and Sanitation's panel of contractors under Contract W 1014 WTE were invited to respond to an invitation to tender. 7

Project Background Cont. The bid was issued on 26 August 2016 and closed on 8 November 2016. The bids received are currently in the process of being evaluated. The procurement process on an important and complex construction project such as the Raising of Clanwilliam Dam requires that a very high standard of due diligence is applied in the evaluation of bids in order to ensure compliance with both the procedural and technical requirements of the bid. Due to the complexity of the construction of the raising of the dam wall, a detailed evaluation of the technical capabilities of the bidders is also required. It is foreseen that this process will be finalised in the near future. Site establishment was completed in September 2016 and all infrastructures will be utilised by the newly appointed commercial contractor. All costs linked to work carried out by Construction South were finalised by Chief Directorate: Infrastructure Development in September 2016 8

Project Background Cont. Date constructed Description Storage capacity (million m 3) Service area irrigation (ha) 1923 Barrage across the Olifants River 6. 55 8 500 1935 The first Clanwilliam Dam 69. 86 9 114 128 (Live storage of 122) Estimated at 15 000 344 Existing plus irrigation for resource poor farmers (70% of extra yield) 1966 2014 Existing dam raised by 6. 1 m (3 m with concrete and the balance provided by 13 crest sluices) To be raised by 13 m 9

Project Background Before and After 10

Project Description and Scope • • • Raise the dam by 13 m thereby increasing the annual yield of the dam by 70 m 3; Relocate a section of the N 7 directly affected by the raised dam structure as well as the New Full Supply Level (NFSL); Raise secondary provincial roads (such as the old Cape Road and the Algeria Access Road) affected by the NFSL; Ensure the Renbaan Road providing access to farmers and residential properties is maintained despite the new NFSL; Upgrade and expand the conveyance system downstream of Bulshoek dam (this aspect is in the feasibility study stage); and Upgrade the existing hydro power station - to be done by others. 11

Reasons for Raising the Dam Safety Requirements • In order to comply to best practice dam safety standards, the Department of Water Affairs is required to implement remedial measures Additional water • A better assurance of supply for existing agriculture/farming • Additional water for resource-poor farmers in the area (75% of additional yield • Ecological reserve 12

Project Location Clanwilliam Dam is located on the Olifants River in the Western Cape, approximately 2 km south west of the town of Clanwilliam. The existing structure is a concrete gravity dam, consisting of a controlled ogee gravity spillway with 13 vertical crest gates. The length of the wall is 255 m. The total spillway length is 117, 58 m, including the piers between the gates. The dam was raised in 1964 with vertical crest gates. Tensioned cables were supplied to ensure stability of the dam wall. 13

Project Technical information 14

Project Technical information Cont. 15

Land Matters Properties affected Property identified for construction site Expropriated properties • 150 properties affected of which 13 are state owned • Valuation on affected properties has started • Citrusdal Beleggings identified for construction site • Notice of expropriation served on the owner on 9 June • Compensation paid to owner • Citrusdal Beleggings • Jan Dieseldorp • Kransvlei Familie Trust 16

Institutional Arrangements General Construction Industry Arrangement/Standards Agent / Consulting Engineer Contract Client / Employer Contractor Memorandum of Understanding 17

Project Governance Structure Consultants / Engineers Civil Specification Scope CLIENT CD: CM Construction Units Bill of Quantities Cost Variation Orders Mo. U Program 18 Time

Socio-Economic Development ELEMENTS: • Procurement Plan – to support local, BEE and SMME development in the area; • Job Creation Plan – the creation of job opportunities through direct physical construction activities and indirect spin-off effects created by the suppliers of goods and services; • Skills Development Plan – empowering employees through knowledge transfer and formal training programmes; and • Environmental Innovation Advancement Plan Job Creation nt Procureme lls nt Ski pme lo eve D Socio-economic Development 19

Project Costs The Raising of Clanwilliam Dam is estimated to cost approximately R 2. 2 billion and excludes: • • • Alignment of the N 7; Secondary Roads; Land & Infrastructure; Construction engineering supervising costs; Project Management costs; Heritage expert costs; Environmental Impact Assessment Practitioner; Environmental Control Officer; Hydro-power plant over and above the civil structure Communications; and Escalation (inflation) 20

Project Risks Delay in the start date of the project( i. e. 01 October 2014) has resulted in a one year delay of the project (due to the sequence of seasons in the area) Environmental Management Plan outstanding Appointment of the Environmental Control Officer Appointment of Project Manager Ensuring continuous supply of water for irrigation, domestic use, as well as environmental releases during construction Keeping the existing hydro-power plant in operation Close proximity of the existing N 7 affects design ad construction efforts and the new N 7 impacts on quarry development 21

MONTHLY COST OF EMPLOYEES STATIONED AT CLANWILLIAM DAM The total cost incurred by Construction South for the month of February 2017 on the specified site is: Cost element name Direct Labour Overheads Equipment: Charge. Out Rate Operating Lease: Land & Building (Accommodation) Municipality Service Water & Electricity S&T KM Claim Hire of Security Services Monthly Costs 1, 218, 300. 34 647, 548. 65 129, 441. 17 269, 825. 64 13, 252. 60 24, 683. 16 31, 557. 74 175, 270. 49 2, 509, 879. 79 Grand Total There is a total of 53 DWS: Construction South personnel, with 13 personnel on contract and 40 permanent employees 22