1 / 24

DWA - ORWRDP - Technical Workshop Mogalakwena Regional Raw Water Scheme (MRRWS)

DWA - ORWRDP - Technical Workshop Mogalakwena Regional Raw Water Scheme (MRRWS). 21 Feb 2013 Ossie Rossouw Victor Couto Bertus Bierman. ORWRDP PH2 – SCHEME BALANCE. Polokwane. Note: Already allocated in Flag Boshielo. 9 0. 49. Mogalakwena. 140. LWUA. 77. 78.

hien
Download Presentation

DWA - ORWRDP - Technical Workshop Mogalakwena Regional Raw Water Scheme (MRRWS)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DWA - ORWRDP - Technical Workshop Mogalakwena Regional Raw Water Scheme(MRRWS) 21 Feb 2013 Ossie Rossouw Victor Couto Bertus Bierman

  2. ORWRDP PH2 – SCHEME BALANCE Polokwane Note: Already allocated in Flag Boshielo 90 49 Mogalakwena 140 LWUA 77 78 Note: Already allocated in Flag Boshielo LWUA Mines (new) LWUA Mines (new) Social (new) 39 Mooihoek 59 2B 38 31 Flag Boshielo Dam 12 Note: Already allocated in Flag Boshielo Phase 2C Mines 2D 10 13 Ml/d currently available in the existing Lebalelo system from Havercroft for Mooihoekpurification plant 133 Steelpoort 5 12 Loskop Dam Existing LWUA South 138 2C Sekhukhune Witbank Dam 27 165 • Demand • Available Water De Hoop Dam 165 DWA Data Yield Analysis Feb. 2011 coincide with DWA Recon Study, March 2012 2A

  3. COST EFFECTIVE SOLUTION - PHASE 2B Polokwane • MOGALAKWENA PIPELINE • LWUA application for extension of area of jurisdiction • Phase 2B extended beyond Pruissen to Sekhuruwe • LWUA can construct as one contract with significant savings • LWUA mine members are willing to provide significant portion of capacity for Mogalakwena Municipality free of charge Note: Already allocated in Flag Boshielo Sekuruwe 90 Mogalakwena 49 LWUA 140 77 78 2B Note: Already allocated in Flag Boshielo LWUA Mines (new) LWUA Mines (new) Social (new) 39 59 Mooihoek 38 Note: Already allocated in Flag Boshielo 31 Flag Boshielo Dam 12 Phase 2C Mines 2D 10 133 Steelpoort 5 12 Existing LWUA South Loskop Dam 138 2C Sekhukhune Witbank Dam 27 165 • Demand • Available Water De Hoop Dam 165 2A

  4. COST EFFECTIVE SOLUTION - OPTIMIZATION & UPGRADING OF LWUA INFRASTRUCTURE Polokwane • OPTIMIZATION OF LWUA EXISTING INFRASTRUCTURE • The existing LWUA pipeline from Havercroftcan support all the social and mining demands in the Phases 2E and 2D areas up until 2021 • 2021 - 2025augment 12 Ml/d (4x106 m3/a) from the De Hoop Dam side by reverse pumping through the existing LWUA pipeline up until 2025 • 2030 Demand: 28.4 Ml/d (10x106 m3/a) will need to be augmented from De Hoop Dam by 2024 with the Phase 2D pipeline or 12.5 km upgrade of the existing LWUA pipeline (35 Ml/d (13x106 m3/a)) Sekuruwe 90 Mogalakwena 49 Havercroft Weir LWUA 140 77 78 LWUA Mines (new) LWUA Mines (new) Social (new) Note: Already allocated in Flag Boshielo 39 Note: Already allocated in Flag Boshielo 59 Mooihoek 2B 38 Note: Fig 9.13 Surplus high growth – 82 Ml/d (30x106mᵌ) 31 Flag Boshielo Dam 12 Phase 2C Mines 2D 10 133 Steelpoort 5 12 Existing LWUA South Loskop Dam 138 2C Sekhukhune Witbank Dam 27 165 • Demand • Available Water Note: Fig 9.7 Upper Olifants River surplus – 110 Ml/d (40x106mᵌ) De Hoop Dam 165 Note: 60 – 100 Ml/d AMD already included in river balance 2A

  5. ORWRDP PH2 – PoE AGREEMENTS • Accept recon study – resource/yield • 2C – by TCTA - review line size for revised yield • 2D – not required now. 13 Ml/d of social water available now • LWUA can implement appropriate upgrade of existing LWUA infrastructure when required (2025) • Aligned to current LWUA infrastructure and associated changes/upgrades • No risk or contribution from DWA (member agreement) • 2B – to proceed

  6. MRRWS (2B+) 2B+ Proposed Scope 120Ml/d R2.4bn (2B+ 2011 scope - excl contingency) Old 2B Scope

  7. EXPECTED MEMBERSHIP • “Industrial members” - possibly 5 to 8 new members: • Anglo American Platinum Limited • Akanani Mining (Proprietary) Limited • Tameng Mining and Exploration (Pty) Limited • Lesego Platinum Mining Limited • Platreef Resources (Pty) Limited • Polokwane Iron Ore Company (Proprietary) Limited • Messina Platinum Mines Limited • Ironveld (Pty) Limited • Minmetals First Chrome Mine (Pty) Limited • “Ordinary members” - possibly 2 members: • Respective Municipalities

  8. MRRWS - SCOPE • MRRWS Scope • Historical - TCTA 2B based on ~77km pipeline delivering 60Ml/d between Flag Boshielo and Pruissen • Historical - 2011 LWUA concept assessment based on ~118km pipelines delivering 120Ml/d between Flag Boshielo, Pruissen and Sekuruwe (R2.4bn in 2011 terms indicative estimate) • Current – forecast to include ~195km of pipelines delivering 140Ml/d scheme between Flag Boshielo, Pruissen, Sekuruwe to Akanani and associated mining tee offs • Layout (map) • Bulk Potable Water • Not currently included above scope. LWUA willing to discuss the implementation as separate project funded by government • LWUA willing to support the appointed water services authority in operational readiness set up

  9. WATER REQUIREMENTS IN THE MRRWS AREA Requirement between 120Ml/d and 150Ml/d – Propose 140Ml/d Mining: ~78Ml/d Social: ~62Ml/d (39Ml/d Mog Municipality, 11Ml/d Bakenberg and 12Ml/d Agenang)

  10. MRRWS – SCOPE OPTIONS ASSESSMENT • Require life cycle cost trade offs - Capex and Opex: • Member take off points • Potable water take off points • Storage capacity and points • Power supply trade offs – pump points, member power supply points and alternate power supply points • Pipeline geotechnical data • Land negotiations • 140Ml/d design - allows for future growth requirements (20 years)

  11. MRRWS – FUNDING • Mining members can facilitate implementation of cost efficient projects. Using LWUA, risk of alternative funding cost impacts and capacity issues mitigated • Capped the governments capital contribution on raw water for potable/social - minimizes financial risk to government • LWUA overhead very low • Funding options: • Capital contribution: • Members contribute their full capital component upfront (internally or externally funded) or • Members provide guarantee to LWUA for their full capital component and fund on a 3 or 6 month basis • LWUA borrow on open market (IDC, IFC, WB, other) using member take off and capital guarantees • Take off agreement

  12. MRRWS – CAPEX ASSESSMENT • Capex and cash flow assessment requires scope to be better defined and assessed: • Finalize scheme membership • Finalize scheme capacity • Scope and do trade offs incl cost (capex/opex) and fund modelling • Select preferred option • Do design and final costing • Obtain final member approval • Run funding options in parallel

  13. MRRWS – PROPOSED CAPEX MODEL • Capital cost • Aligned to the current LWUA Constitution and Membership Agreement (incl member voting rights) • The parties will need to agree to an equitable capital contribution based on capacity and point of supply and the associated scope/deliverables • Members accepted that a social component of raw water intended for potable water, be funded as follows: • Mining members: 58% (35/60 l/c/d) and • Government: 42% (25/60 l/c/d) • Applies to the capital cost for the section between Flag Boshielo Dam to Pruissen. Opex to be covered by the domestic users • Beyond Pruissen no allocation agreements have been reached

  14. MRRWS – COST MODEL • Operating Cost • Aligned to the current LWUA Constitution and Agreement • Opex (O&M) constitutes fixed and variable costs: • Fixed costs: • Working capital • Personnel cost • Consultant fees • Variable costs: • Raw water cost • Electricity costs according to demand • Maintenance costs and • Personnel costs associated with overtime • The Olifants River regional tariff principals are to be defined by DWA in conjunction with LWUA/JWF and other stakeholders asap – risk mitigation

  15. PROPOSED PROGRAMME / DELIVERY STRUCTURE • LWUA PM and Procurement processes - adapted to suit member requirements

  16. CURRENT SCHEDULE • Proposed compressed (Optimistic) schedule with a parallel PFS/FS considered - key milestone dates: • Complete the CS in Q3 2013 and review/approval/funding Q4 2013 • Conduct a PFS/FS for completion in Q1 2015 and review, approval and funding in Q3 2015 • Run legislative requirements (EIA, etc.) between Q3 2014 and Q3 2015 and • 24 month construction period allowing first water to be available in Q4 2017 • Currently 3 months late due to delayed approval of area of operation • Optimistic Schedule – Q4 2017

  17. KEY PROGRAMME CONCERNS • Approval by DWA of the implementing agency – time • Alignment (members) – scope, time and cost • Reviews and approvals (members) - time • Funding (members) – time and cost • Legislative requirements (EIA, servitudes, etc) - time

  18. POSSIBLE SCHEDULE RISK MITIGATIONS AND FURTHER OPPORTUNITIES • Approve implementing agent immediately - risk • Agree on demand/scope - risk • Sharing of existing survey, design and environmental information - opportunity • Improved authority (government) turn around times – EIA, borrow pit, servitudes, etc - opportunity • Improved member review, approval and funding turn around times: • Industrial and Ordinary members - opportunity • Option to proceed with study using government funding (part R500m – apportioned contribution to scheme) - opportunity • Run funding model assessment in parallel with upfront study work - opportunity • Option to skip concept study and move into PFS (opportunity) however first need: • Defined scope (140Ml/d and possible growth) • Define trade off options to be assessed • Get member commitment

  19. BEST PRACTICE PROJECT MANAGEMENT • FEL 3 – Single option detailed assessment • Each Programme & Project • PEP and Charter for Selected Option • FEL 2 – Option assessment • Each Programme & Project • SWP/PEP and Charter for Selected Option • FEL 1 – Business Case • Overall • Each Programme • Study Work Plan/Project Execution Plan and Charter for Options • Project Lifecycle Time Influence

  20. CASH FLOW • Based on current Optimistic schedule and 6 month member rolling funding

  21. MRRWS RISKS

  22. DWA CAPACITY BUILDING • LWUA willing to assist DWA with capacity building • Need to better understand DWA requirements for skills development • Propose that DWA second staff to the programme and LWUA provide training as agreed between the parties • DWA cover cost of DWA secondees • Opt for an EPC model with LWUA conducting the Management • LWUA (members) determine the selection process for EPC and suppliers

  23. MRRWS – WAY FORWARD • Obtain approval on extension to area of operation • Obtain historical data/information not previously shared • Commitment and funding for front end loading (studies) • Set up project steering committee • Recruit owners team members • Define DWA capacity building needs and process • Secure support consulting services • Update the Concept study • Review and approve the updated Concept study • Define and agree funding models • Proceed with Pre-feasibility Study/Feasibility Study • Review and approve the Pre-feasibility Study/Feasibility Study (incl funding vehicles) • Approval and funding for execution • Design, procure, fabricate, construct and commission

  24. QUESTIONS

More Related