Infrastructure Intelligence 2012

Incorporating Local Government Supplier

Unpacking provincial budgets and sector opportunities

MERCEDES-BENZ

Versatile

Reliable

Safe

We spend a lot of time and effort ensuring that the quality of our GRP pipes is up to standard P10

The official magazines of:

2012 infrastructure news

infrastructure4

PUBLISHER Elizabeth Shorten ASSOCIATE PUBLISHER Ferdie Pieterse EDITOR Candice Landie HEAD OF DESIGN Frédérick Danton SENIOR DESIGNER Hayley Mendelow CHIEF SUB-EDITOR Claire Nozaic SUB-EDITOR Patience Gumbo PRODUCTION MANAGER Antois-Leigh Botma PRODUCTION CO-ORDINATOR Jacqueline Modise FINANCIAL MANAGER Andrew Lobban (ACIS, FCIBM) ADMINISTRATION Tonya Hebenton DISTRIBUTION COORDINATOR Asha Pursotham SUBSCRIPTION MANAGER Nomsa Masina

in association with

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The Institute of Municipal Engineering of Southern Africa (IMESA) The Institute of Waste Management of Southern Africa (IWMSA) The Water Institute of Southern Africa (WISA)

www.infrastructurene.ws

Contents Cover story Mercedes-Benz Sprinter Versatile, reliable, safe 8

PRINTERS United Litho Johannesburg +27 (0)11 402 0571 ADVERTISING SALES Jenny Miller +27 (0)11 467 6223 _______________________________________________

PUBLISHER MEDIA No. 4, 5th Avenue, Rivonia 2056 PO Box 92026, Norwood 2117 t +27 (0)11 233 2600 f +27 (0)11 234 7274/5 richard@3smedia.co.za • www.3smedia.co.za © Copyright 2011. All rights reserved. _________________________________________________ IMESA CONTACTS IMESA ADMINISTRATION OFFICER Ingrid Botton P O Box 2190, Westville, 3630 t +27 (0)31 266 3263 • f +27 (0)31 266 5094 imesa@webstorm.co.za • www.imesa.org.za BORDER BRANCH SECRETARY Melanie Matroos t +27 (0)43 705 2401 • f +27 (0)43 743 5266 melaniem@buffalocity.gov.za EAST CAPE BRANCH Elsabé Koen t +27 (0)41 505 8005 • f +27 (0)41 581 2300 elsabek@africoast.com KWAZULU-NATAL BRANCH SECRETARY Rita Zaayman Tel: +27(0)31 311 6382 NORTHERN PROVINCE BRANCH SECRETARY Cornel Taljaard t +27 (0)82 899 8341 • f +27 (0)11 675 1324 cornel@rchc.co.za SOUTHERN CAPE KAROO BRANCH SECRETARY Henrietta Oliver t +27(0)79 390 7536 • f 086 536 3725 imesa.southcape@gmail.com

Hot seat Fiberpipe Why GRP pipes are good for you 10

Infrastructure budgets Gauteng ................................................................................................................................................ 14 Western Cape ............................................................................................................................... 16 KwaZulu-Natal ............................................................................................................................... 18 Northern Cape ............................................................................................................................. 20 Mpumalanga................................................................................................................................... 22 Limpopo................................................................................................................................................ 23 Eastern Cape ................................................................................................................................. 24 Free State .......................................................................................................................................... 26 North West ....................................................................................................................................... 28

Consulting engineers Industry waits for promised R844 billion infrastructure budget ........................................................................................................... 32

Civil engineering & construction Expertise and wisdom for the betterment of SA .............................. 38 Infrastructure’s past and the real current issues ........................... 43

WESTERN CAPE BRANCH SECRETARY Erica van Jaarsveld t +27 (0)21 938 8455 • f+27 (0)21 938 8457 erica.van_jaarsveld@capetown.gov.za

Water, environment & solid waste

FREE STATE AND NORTHERN CAPE BRANCH SECRETARY Wilma Van Der Walt t +27(0)83 457 4362 • f 086 628 0468 imesa.fsnc@gmail.com

Solid waste, hazardous waste and renewable energy .............. 48 How long before the war on water hits SA?............................................ 53 Innovative safeguarding of tap and waste water .............................. 59

REST OF SOUTHERN AFRICA REPRESENTATIVE Andre Muller imesa@webstorm.co.za

Intelligent equipment

All material herein Infrastructure Intelligence is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the Institute of Municipal Engineering of Southern Africa or the publishers.

The next generation of construction equipment ............................... 67 Automated versus manual mode ......................................................................... 69 Environmental equipment for the professional .................................. 72

INFRASTRUCTURE INTELLIGENCE 2012

1

INDEX ADVERTISERS A-Z

ABS Wastewater Technology Air Products SA Bigen Africa Dezzo Roofing DuPont Southern Africa Dynamic Fluid Control EFG Engineers Envitech Solutions Eqstra Construction (Terex) Eqstra Construction (Sleipner) ERWAT Fiberpipe Fibertex Goba Hansen Industrial Gearboxes Isuzu Trucks SA Kaytech Komatsu Lichenry Construction Linde Material Handling

46 27 OBC 25 IBC 50 34 48 64 66 60 10, 11 25, 44, 53 30 52 68 36 70 40 67

Mercedes-Benz SA Much Asphalt National Asphalt Netzech SA North European Equipment Odour Control Quality Laboratory Services Rainbow Reservoirs Sanyati Schneider Electric SEW Eurodrive SHIP Synthetic Sports Surfaces Technicrete Tecroveer Turf-Ag Vela VKE Vermeer Equipment Suppliers Water & Sanitation Services Water Institute of Southern Africa

OFC 39 41 54 2 51 49 57 45 56 58 59 29 42 55 62 35 72 IFC 63

INFRASTRUCTURE INTELLIGENCE 2012

3

INDEX CLIENTS BY REGION

AREA

COMPANY

PAGE

GAUTENG Aeroton

SEW Eurodrive

58

Bapsfontein

ERWAT

60

Bartlett

Sanyati

45

Benoni

Envitech Solutions

48

Benoni

Dynamic Fluid Control

50

Centurion / Bon Accord

National Asphalt

41 10, 11

Germiston

Fiberpipe

Glenharvie

Tecroveer

55

Jet Park

ABS Wastewater Technology

46

Jet Park

Hansen Industrial Gearboxes

52

Kempton Park

Air Products SA

27

Kempton Park

Eqstra Construction (Terex & Sleipner)

64, 66

Kempton Park

North European Equipment

2

Linbro Park

Linde Material Handling

67

Melrose Arch

DuPont Southern Africa

IBC

Meyerton

Linchery Construction

40

Midrand

Water Institute of Southern Africa

63

Modderfontein

Vermeer Equipment

72

Pretoria

Bigen Africa

OBC

Pretoria

Vela VKE

35

Roodepoort

Technicrete

42

Sunninghill

Goba

30

Woodmead

Isuzu Trucks SA

68

Woodmead

Water & Sanitation Services

IFC

Zwartkops

Mercedes-Benz South Africa

OFC

Cliffdale

National Asphalt

41

Hammarsdale

Fibertex

25, 44, 53

New Germany

Dezzo Roofing

25

Pinetown

Kaytech

36

Polokwane

Rainbow Reservoirs

57

Rustenberg

Quality Laboratory Services

49

Cape Town

Much Asphalt

39

Durbanville

EFG Engineers

34

Knysna Industrial

Synthetic Sports Surfaces

29

Montague Gardens

Turf-Ag

62

KWAZULU-NATAL

LIMPOPO

NORTH WEST

WESTERN CAPE

4

INFRASTRUCTURE INTELLIGENCE 2012

INDEX SERVICE & PRODUCT BY TYPE

ADVISORY & MANAGEMENT Air Products SA ...........................................27 Bigen Africa ............................................. OBC Dynamic Fluid Control ..................................50 Goba ..........................................................30 Rainbow Reservoirs ....................................57 Vela VKE.....................................................35 AERATION ABS Wastewater Technology ........................46 Tecroveer....................................................55 ARTIFICIAL TURF Synthetic Sports Surfaces ...........................29 ASPHALT & ROAD BINDERS EFG Engineers ............................................34 Kaytech ......................................................36 Much Asphalt..............................................39 National Asphalt .........................................41 ASSET MANAGEMENT Bigen Africa ............................................. OBC Vela VKE.....................................................35 AUDITS Vela VKE.....................................................35 BIOSOLIDS TREATMENT Tecroveer....................................................55 BULK SERVICES Air Products SA ...........................................27 Bigen Africa ............................................. OBC Linchery Construction..................................40 CIVIL CONSULTING Bigen Africa ............................................. OBC EFG Engineers ............................................34 Envitech Solutions ......................................48 Eqstra Construction (Terex & Sleipner)... 64, 66 Goba ..........................................................30 Kaytech ......................................................36 Tecroveer....................................................55 Vela VKE.....................................................35 COASTAL MANAGEMENT Kaytech ......................................................36 DESALINATION ABS Wastewater Technology ........................46 Fiberpipe ............................................. 10, 11

ENERGY EFFICIENCY ABS Wastewater Technology ........................46 Bigen Africa ............................................. OBC EROSION PROTECTION EFG Engineers ............................................34 Fibertex ............................................... 24, 96 Kaytech ......................................................36 Technicrete .................................................42 Vela VKE.....................................................35 FORKLIFT SUPPLIERS Linde Material Handling ...............................67 GEOTECHNICAL ENGINEERING Envitech Solutions ......................................48 Kaytech ......................................................36 Sanyati .......................................................45 Vela VKE.....................................................35

KERBS Bigen Africa ............................................. OBC EFG Engineers ............................................34 Linchery Construction..................................40 Technicrete .................................................42 LAND REHABILITATION Envitech Solutions ......................................48 Fibertex ............................................... 24, 96 Kaytech ......................................................36 Linchery Construction..................................40 LANDFILL ENGINEERING Envitech Solutions ......................................48 Fibertex ............................................... 24, 96 Kaytech ......................................................36 North European Equipment ............................2 Vela VKE.....................................................35

HOUSING DEVELOPMENT Bigen Africa ............................................. OBC Kaytech ......................................................36

LANDFILL MANAGEMENT Envitech Solutions ......................................48 Kaytech ......................................................36 North European Equipment ............................2

IMPACT ASSESSMENTS Bigen Africa ............................................. OBC

LINER PROTECTION Kaytech ......................................................36

INDUSTRIAL CLEAN-UPS Envitech Solutions ......................................48

MASONRY Technicrete .................................................42

INDUSTRIAL GEARBOXES Hansen Industrial Gearboxes .......................52

MECHANICAL CONSULTING SEW Eurodrive ............................................58 Tecroveer....................................................55

INDUSTRIAL WASTEWATER ABS Wastewater Technology ........................46 Bigen Africa ............................................. OBC Dynamic Fluid Control ..................................50 Fiberpipe ............................................. 10, 11 Tecroveer....................................................55 Water & Sanitation Services ....................... IFC INSTRUMENTS & EQUIPMENT North European Equipment ............................2 SEW Eurodrive ............................................58 Tecroveer....................................................55 INTEGRATED PLANNING Bigen Africa ............................................. OBC IRRIGATION SYSTEMS EFG Engineers ............................................34 Fiberpipe ............................................. 10, 11 Turf-Ag .......................................................62

MUNICIPAL ENGINEERING ABS Wastewater Technology ........................46 Bigen Africa ............................................. OBC Dynamic Fluid Control ..................................50 EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner)... 64, 66 Fiberpipe ............................................. 10, 11 Kaytech ......................................................36 North European Equipment ............................2 Tecroveer....................................................55 MUNICIPAL INFRASTRUCTURE DEVELOPMENT ABS Wastewater Technology ........................46 Bigen Africa ............................................. OBC Dynamic Fluid Control ..................................50 EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner) 64, 66 Goba ..........................................................30

DRAINAGE ABS Wastewater Technology ........................46 EFG Engineers ............................................34 Fibertex ............................................... 24, 96 Kaytech ......................................................36 Linchery Construction..................................40 Technicrete .................................................42 ELECTRICAL CONSULTING ABS Wastewater Technology ........................46 Bigen Africa ............................................. OBC SEW Eurodrive ............................................58 Vela VKE.....................................................35

INFRASTRUCTURE INTELLIGENCE 2012

5

INDEX SERVICE & PRODUCT BY TYPE

TECHNICAL ASSESSMENT EFG Engineers ............................................34 Vela VKE.....................................................35 TECHNOLOGY Air Products SA ...........................................27 Tecroveer....................................................55 TRANSPORTATION STUDIES EFG Engineers ............................................34 URBAN/RURAL DEVELOPMENT Bigen Africa ............................................. OBC EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner)... 64, 66 Rainbow Reservoirs ....................................57 Vela VKE.....................................................35 ODOUR & EMISSION CONTROL Odour Control .............................................51 PAVING EFG Engineers ............................................34 Fibertex ............................................... 24, 96 Linchery Construction..................................40 National Asphalt .........................................41 Technicrete .................................................42 Vela VKE.....................................................35 PIPES, PUMPS & VALVES ABS Wastewater Technology ........................46 Dynamic Fluid Control ..................................50 EFG Engineers ............................................34 Fiberpipe ............................................. 10, 11 Turf-Ag .......................................................62 PLANT & EQUIPMENT Eqstra Construction (Terex & Sleipner)... 64, 66 Linchery Construction..................................40 North European Equipment ............................2 Rainbow Reservoirs ....................................57 SEW Eurodrive ............................................58 Tecroveer....................................................55 Vermeer Equipment Suppliers ......................72 PRECAST CONCRETE Technicrete .................................................42 PROJECT MANAGEMENT Bigen Africa ............................................. OBC EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner)... 64, 66 Vela VKE.....................................................35 RECYCLING Envitech Solutions ......................................48 Vermeer Equipment Suppliers ......................72 REINFORCEMENT & LOAD SUPPORT Kaytech ......................................................36 RENEWABLE ENERGY Air Products SA ...........................................27 Envitech Solutions ......................................48 RETAINING WALLS

6

INFRASTRUCTURE INTELLIGENCE 2012

Kaytech ......................................................36 Technicrete .................................................42 RISK MANAGEMENT CONSULTANTS Bigen Africa ............................................. OBC

Vela VKE.....................................................35 Water & Sanitation Services ....................... IFC WASTE COLLECTION Envitech Solutions ......................................48 WASTE DISPOSAL

ROAD REHABILITATION Bigen Africa ............................................. OBC EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner) 64, 66 Fibertex ............................................... 24, 96 Kaytech ......................................................36 Linchery Construction..................................40 National Asphalt .........................................41 Vela VKE.....................................................35 ROADS & STORM WATER Bigen Africa ............................................. OBC EFG Engineers ............................................34 Eqstra Construction (Terex & Sleipner)... 64, 66 Kaytech ......................................................36 Linchery Construction..................................40 Technicrete .................................................42 Vela VKE.....................................................35 ROOFING Dezzo Roofing .............................................25 Technicrete .................................................42 SEWAGE & EFFLUENT TREATMENT ABS Wastewater Technology ........................46 Air Products SA ...........................................27 Bigen Africa ............................................. OBC Dynamic Fluid Control ..................................50 EFG Engineers ............................................34 ERWAT .......................................................60 Fiberpipe ............................................. 10, 11 Hansen Industrial Gearboxes .......................52 Kaytech ......................................................36 Linchery Construction..................................40 Tecroveer....................................................55 Water & Sanitation Services ....................... IFC

Envitech Solutions ......................................48 WASTE TO ENERGY Air Products SA ...........................................27 Envitech Solutions ......................................48 Vermeer Equipment Suppliers ......................72 WASTEWATER HANDLING Dynamic Fluid Control ..................................50 ERWAT .......................................................60 Fiberpipe ............................................. 10, 11 Kaytech ......................................................36 SEW Eurodrive ............................................58 Tecroveer....................................................55 Water & Sanitation Services ....................... IFC WATER DISINFECTION Air Products SA ...........................................27 Tecroveer....................................................55 Water Institute of Southern Africa .................63 WATER QUALITY MONITORING ERWAT .......................................................60 Quality Laboratory Services .........................49 Tecroveer....................................................55 Water Institute of Southern Africa .................63 WATER STORAGE SUPPLY Water Institute of Southern Africa .................63 WATER TREATMENT Air Products SA ............................................. 27 Bigen Africa ............................................... OBC Dynamic Fluid Control.................................... 50 ERWAT ........................................................ 60 Fiberpipe................................................ 10, 11

SHEQ TRAINING & EDUCATION Air Products SA ...........................................27

Hanna Instruments ....................................... 54 Tecroveer .................................................... 55

STOPE SUPPORT SYSTEMS Technicrete .................................................42

Water & Sanitation Services ........................... IFC Water Institute of Southern Africa.................... 63

COMPANY ABS Wastewater Technology Air Products SA Bigen Africa Dezzo Roofing DuPont Southern Africa Dynamic Fluid Control EFG Engineers Envitech Solutions Eqstra Construction (Terex & Sleipner) ERWAT Fiberpipe Goba Isuzu Trucks SA Kaytech Linchery Construction Linde Material Handling Mercedes-Benz South Africa Much Asphalt National Asphalt Northern European Equipment Quality Laboratory Services Rainbow Reservoirs Sanyati Synthetic Sports Surfaces Technicrete Tecroveer Turf-Ag Vela VKE Vermeer Equipment Suppliers Water & Sanitation Services Water Institute of Southern Africa

Non-profit organisation for professionals in the water sector

Water quality monitoring Water & liquid storage reservoirs

Material handling equipment, forklifts Commercial vehicles

Commercial vehicles Geosynthetic manufacturers & suppliers

Valve supplier

Industrial gas manufacturer & supplier

Other

Page 46 27 OBC 25 IBC 50 33 48 64,66 60 10,11 30 68 36 40 67 OFC 39 41 2 49 57 45 29 42 55 62 35 72 IFC 63

INDEX SERVICES PROVIDED

INFRASTRUCTURE INTELLIGENCE 2012

7

Water & wastewater

Technology & communication

Solid waste

Service delivery

Rural development & land reform

Risk management

Public works

Public transport

Plant & equipment

Local government

Infrastructure development

Financing infrastructure

Environmental

Energy

Electrical

Consultants

Construction

Civil engineering

Bitumen & asphalt

Agriculture, forestry & fisheries

COVER STORY

AMBULANCES – MERCEDES-BENZ STYLE

There was jubilation in Jabulani, one of Soweto’s 36 suburbs, when 20 new MercedesBenz Sprinter ambulances were handed over to Johannesburg’s Emergency Medical Ser vices depar tment.

Sprinter to T HE JABULANI FIRE station is the busiest of three fire stations in Soweto, with in excess of 3 000 medical emergency calls a month. Most of these are maternity calls, assault cases, burns from shack fires and various home-related incidences. Other emergencies include motor vehicle accidents and rescue services arising from flooding of rivers and dams.

It’s not surprising that there was delight in Jabulani (an isiZulu word for ‘rejoice’) when the new ambulances were delivered. Private emergency services companies reported that in the past, ambulances had to be summoned from all over Gauteng in order to service Soweto residents. The Sprinter ambulances were supplied by Mercedes-Benz Commercial Vehicles Centurion dealership and are maintained by technicians at the company’s state-of-the-art facilities. The ambulance conversions were undertaken by TFM Industries.

8

INFRASTRUCTURE INTELLIGENCE 2012

COVER STORY

the rescue Versatility, reliability and safety The versatile Sprinters should not only improve response times, but are much safer than the smaller pickup-based ambulances in operation throughout the country today. The benefits of large van-type ambulances include crew com-

conversion includes the 309 CDI, 315 CDI and 318 CDI panel van models, which once again passed the stringent SANS regulated rollover tests – SANS 1563 specification – that primarily test the strength of the superstructures for roll-over protection.

The Sprinter’s outstanding safety is based partly on measures that reduce the risk of accidents (safe handling, effective braking and intelligent driver assistance systems such as adaptive ESP), and partly on a highstrength passenger safety cell. The Sprinter has a very rigid body structure that preserves the occupant survival space in the event of an accident.

The strength of the Sprinter is exemplified by the A and B pillars, whose internal structure is made of high-tensile steel, in line with internal

The versatile Sprinters should not only improve response times, but are much safer than the smaller pickupbased ambulances fort, increased storage capabilities, increased working space, speed, visibility, and design and layout flexibility.

Four-wheel drive vehicles are available in this category and more than one stretcher patient can be transported comfortably.

Different stretcher options and layouts are also available. The Sprinter range for ambulance

The Sprinters for Soweto are the ideal base vehicle for ambulances used in Mercedes-Benz accident long-distance transfers

safety standards. This goes far beyond the statutory safety requirements.

Community care Mercedes-Benz vans once again showed the company’s commitment towards the importance of active and passive safety, and the importance of safety in public transportation.

The Sprinters for Soweto are the ideal base vehicle for ambulances used in longdistance transfers, mobile intensive care units or high-care environments, as well as vehiclerelated accident cases and major disasters.

The ambulances will service the whole of Soweto, which is home to more than 1.3 million people in the south-western townships of Johannesburg, and are to be rotated among the fire stations of Jabulani, Dobsonville and Diepsloot. The Jabulani fire station has a rich history as it was the only fire station that provided emergency services to the area during the 1970s.

MEDIA ENQUIRIES Zamani Mbatha t +27 (0)12 677 6042 zamani.mbatha@daimler.com

Infrastructure Inteliigence offers advertisers an ideal platform to ensure maximum exposure of their brand.

Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Jenny Miller on +27(0)11 467 6223 to secure your booking.

INFRASTRUCTURE INTELLIGENCE 2012

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HOT SEAT

FIBERPIPE THE FLOWTITE AND VECTUS RANGE

When a reinforced solution is all Leading glassfibre reinforced pipe (GRP) manufacturer, Fiberpipe owes the durability and reliability of its products to state-of-the-art manufacturing technology and strict quality control standards. Candice Landie chats to managing director Hein Momberg on Fiberpipe’s history, change of headquarters and product range.

BELOW Offloading GRP pipes is easy due to its lightweight material composite BELOW RIGHT GRP fittings are quick and easy to manufacture and since the materials can be moulded to any shape, they can be designed according to specification

What is Fiberpipe’s history and how was the technology introduced? The company was founded in 2002 by a Saudi Arabian company called Saudi Arabian Amiantit Company (SAAC) to extend its global footprint. The company set up a factory in South Africa that manufactured GRP, PVC and HDPE pipe types. Due to low profit margins, manufacturing on the PVC and HDPE ranges was subsequently shut down. The company purchased the Flowtite technology, which was developed in Norway, and we still make use of this technology today. In 2008, as we all know, the world economy collapsed. Since 2008, business was very slow and we weren’t profitable. SAAC decided to consolidate its position in Europe and the Middle East, and an MBO was put together.

Effective 1 April 2011, all the documents for the buy-out were signed and we started operating as Fiberpipe. We bought all the assets from Amitech and started on a clean slate.

Why did the company move from Alrode to Germiston?

We were looking for a sale and leaseback agreement at Alrode, but were unsuccessful. We were then offered a very good price for the Alrode premises, which are actually two plots combined. The offer came through in September last year and by October, the sale was finalised. We had to move by 15 December, which didn’t leave us much time. Production stopped from September as the factory had to be stripped. Over the December/January period we started assembling the machines in order to get started again on production, which eventually kicked off in mid-February on the Flowtite range. While moving the factory, we refurbished the Flowtite machine, we replaced all the PLCs – the brain of the equipment. With regard to electronics, the machines have been completely upgraded and we’re now running on the latest software and technology from Norway. Production on the Vectus line is yet to begin.

How does the new technology aid production?

It saves a bit more material and allows for more consistency.

There are also more monitoring points on the line so you get better feedback of what is happening during the manufacturing process. Overall, the quality and consistency has improved. There are a couple of new pipe designs that we can run now, which we weren’t able to do previously. We had been running on electronic cards that were 30 years old. This was high-risk as there were no spares, and the cards could not be repaired if

10

INFRASTRUCTURE INTELLIGENCE 2012

HOT SEAT

that will do…. they failed. It’s very reassuring to be working on modern technology again. The cost to upgrade the electronics was around R1 million.

Do you offer any aftersales support or value-add service? Yes, Fiberpipe offers an additional advisory service at no charge to our customers.

When we had a new contract or project, we would send out a field technician to train the contractor on the installation of the pipe. When I took over in 2007, I realised it wasn’t enough because contractors would follow the installation training while we were on site and would revert back to their old methods the moment we left.

Fiberpipe then embarked on an expansion drive and we appointed more people in order to supervise all installations. For example, if it’s a long-term project, we find a person from the area and train him accordingly. He will remain on site for the duration of the project with a checklist and report, ticking off as the installation goes along. We currently have our eye on between 70 to 80% of our pipes that go into the ground.

What applications are Fiberpipe products best suited for? Both the Flowtite and Vectus are ideal for potable water and raw water applications as well as sewer. Because these are larger diameter pipes, you will find them being used predominantly along the main lines: from a river to a treatment works and from a treatment works to a reservoir. Our pipes are also suited for work on desalination plants and the

transportation of sea water for abalone farms.

What quality standard inspection do the pipes undergo? We spend a lot of time and effort ensuring that the quality of the pipes is up to standard. According to the standard by which we adhere, one pipe in every 100 must be tested. But Fiberpipe doubles the rules set by the standards and conduct tests on one pipe in every 50. Our products undergo three inspections before the pipe leaves the factory. Things go wrong – it’s a factory. But most of the things that do go wrong don’t actually affect the quality of the pipe, just the visual appearance. If you send a pipe out to site that has visible defects, however, the client is not going to be satisfied. So, here at Fiberpipe, we spend a lot of time and effort ensuring our pipes leave the factory in excellent condition. We’ve been using the same transport people for 10 years, so they have been properly trained in how to handle our pipes during transit.

What is your supply base?

Do you service Africa?

40% of Fiberpipe’s production goes into Africa. We’ve done big projects in Zambia, and we’ve also done some new projects in terms of hydropower, so we’re branching out into different areas. We do a lot of work in Namibia and Zimbabwe.

The biggest problem in Africa is money. They have all these projects that require pipes, but they don’t have the money.

On the plus side, we have a big advantage on steel, which

is our main competitor. There Vectus pipes are manufactured with Bell & Spigot joints and can be pressureare applications where steel is tested at every joint a better pipe and applications where PVC is a more suitable our pipes are UV protected so pipe, so every pipe type has the pipes can be exposed to its place in the market. But an the elements with no adverse advantage when going into Africa effects. Most importantly, our is the fact that we can nest our pipes are energy efficient. pipes, which happens quite often. Because the pipe is so smooth Customer want a 9 km pipeline on the inside, water flows

Our pipes are UV protected so the pipes can be exposed to the elements with no adverse effects of 1.1 m, and we say no, have 3 km of 1.2 m diameter pipe, 3 km of 1.1 m and 3 km of 1 m, and lay them in the right places.

We put all those pipes into one so clients only pay a third of the transport costs. With steel, however, you cannot nest the pipes due to weight and coating issues.

What’s the guarantee on your GRP pipe? The standard guarantee is one year, but in special cases we’ve given up to five years. There have been pipes that were pulled out of the ground, lying there for 50 years, that were still in good condition.

The minimum design spec on our pipes is 50 years, but over the years with having taken pipes out of the ground and retesting, we have found that we have a 120-year design spec. There’s no corrosion on our GRP pipes;

through a lot more efficiently, reducing pumping costs, which results in lower electricity costs.

Going forward, what is your vision for the company?

Fiberpipe will concentrate on making GRP pipes and we want to improve the technology on the Vectus range because we are still running on very old technology.

But finding the right people who have done the research is a challenge. Overall, we want to manufacture the best pipe at the best price. Fiberpipe’s GRP is a relatively new technology in South Africa, so we spend a lot of time trying to change people’s mind about the product. Regardless, we have about 1 600 km pipe in the ground, which is impressive for a relatively new company.

Please contact us on +27(0)11 065 2300 and/or www.fiberpipe.co.za

INFRASTRUCTURE INTELLIGENCE 2012

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INFRASTRUCTURE BUDGET

14

GAUTENG

WESTERN CAPE

16

KWAZULU-NATAL

NORTHERN CAPE

20

MPUMALANGA

LIMPOPO

22

23

EASTERN CAPE

FREE STATE

18

24

26

NORTH WEST

28 INFRASTRUCTURE INTELLIGENCE 2012

13

INFRASTRUCTURE BUDGET

GAUTENG

Aggregate revenue of R73.5 billion for 2012/13 “We expect South Africa’s recovery to achieve a 3.6% economic growth in 2013 and 2014, but these are modest rates of expansion relative to the social and developmental challenges we face and the opportunities that our mineral wealth and human capabilities offer.”

Finance Minister Pravin Gordhan

G

AUTENG GOVERNMENT’S Appropriation Bill for 2012 was presented on 6 March 2012 by the MEC for Finance, MG Nkomfe. The

the outcomes-based performance management system, which underpins the 2012/13 Provincial Appropriation Bill as follows: • to balance unlimited needs with limited resources available • to eliminate wasteful spending and ensure availability of funds for provincial outcomes • to direct resources towards effective programmes and improve the livelihoods of residents • to allow commitments that can be met with available resources • to instil fiscal discipline, improve provincial finances and restore financial viability in the provincial health department • to allocate resources to infrastructure projects that are ready for implementation.

Gauteng is committed to eliminating wasteful expenditure in infrastructure spending, which generally emanates from lack of effective planning and weak project management economic crisis that continues to be felt worldwide poses a major challenge for South Africa as the country’s economic projections are contingent upon global economic growth. Gauteng provincial government’s developmental focus is on building Gauteng Provincial modern infrastrucGovernment intends to reinforce human ture; to achieve settlements efforts by this, the provaccelerating the delivery of ince has adopted housing opportunities

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INFRASTRUCTURE INTELLIGENCE 2012

The 2012 Medium Term Expenditure Framework (MTEF) will take the current provincial government to the end of its term.

Therefore, the current provincial government will use the 2012 MTEF to consolidate its programmes that support the Programme of Action towards 2014.

Revenues and budget allocations Gauteng’s total receipts reflect aggregate revenues of R73.5 billion, R79.2 billion and R85 billion for the financial years 2012/13, 2013/14 and 2014/15 respectively. These amounts consist of direct transfers from the National Treasury as well as projected provincial collections. During the 2012/13 financial year, national government transfers will be represented by the equitable share at 73.2%, conditional grants at 21% and 5.8% by provincial own revenue collections.

The equitable share rises from R50.9 billion in the 2011/12 financial year to R62.9 billion in the 2014/15 financial year, which represents an average growth of 7.3% over the MTEF. On the other hand, conditional grants increase by an average of 14.1% over the same period. Provincial own receipts will increase from R3.1 billion in 2011/12 to R3.8 billion in 2014/15, which represents an annual average growth rate of 7.2% over the MTEF. Protecting infrastructure investments The Gauteng government has adopted a different approach towards infrastructure investment for 2012/13. This new approach will have the following doctrines: The provincial treasury will protect infrastructure baseline budgets. To this end, R30.6 billion will be allocated towards infrastructure investments over the MTEF. This is a combination of both the provincial equitable share and conditional grant funding.

The 2012 fiscal framework provides a necessary platform for the province to manage its fiscal trajectory in a sustainable manner.

Gauteng is committed to eliminating wasteful expenditure in infrastructure spending, which generally emanates from cost escalations, project scope creep, lack of effective

INFRASTRUCTURE BUDGET

R1 billion has been planning and weak allocated for the project manageupgrade of roads over the MTEF ment. Star ting with the 2012/13 budget, funding will be allocated to projects that demonstrate their readiness for implementation.

Furthermore, alternative delivery mechanisms were considered in formulating the 2012 infrastructure budget.

Incapacity to deliver on infrastructure projects must be addressed in order to ensure that scarce resources are directed towards economic development.

During the 2012/13 State of the Province Address, Gauteng’s Premier emphasised that capacity to manage infrastructure projects in the province will be improved. This includes strengthening in-house technical capacity, building effective project management skills and leveraging from strategic partnerships.

The premier said that it is against this background that the province will capacitate all infrastructure delivery departments. The

Department of Roads and Transport has been allocated R20 million for recruiting qualified and registered engineers from all disciplines

and other technical experts. A further R15 million has been set aside for the Department of Infrastructure in this regard.

INFRASTRUCTURE SPEND EDUCATION • R4.3 billion has been allocated over the medium term for the construction of new schools and the maintenance and upgrading of existing schools.

Included in this infrastructure investment amount is an allocation of R120 million for the construction of the Magaliesberg Boarding School, which is expected to be completed during the 2013/14 financial year.

HEALTH • R6.1 billion will be allocated for the implementation of health infrastructure programmes over the 2012 MTEF. For the 2012/13 financial year, R1.4 billion has been made available for the construction of new health facilities, maintenance and the rehabilitation of existing facilities. Of this amount, R850 million will be set aside for maintenance and the remainder will be allocated as follows: • planning and implementation of renovations to the Garankuwa, SG Lourens, Bona Lesedi and Ann Latsky Nursing Colleges • construction of the new Natalspruit, Zola and Bertha Gxowahospitals, and for the procurement of equipment.

RURAL COMMUNITIES • Key outputs and programmes identified to support the outcome of creating vibrant and sustainable rural communities within Gauteng include: • Providing appropriate farming infrastructure and coordinating this with other departments during the 2012/13 financial year, including: - R12 million for the implementation of school-related programmes - R30 million for designing and maintaining our infrastructure on rural roads.

• Improving support for farmers and cooperatives so that they can participate in the economy through flower, poultry and hydroponic agri-parks, and increase their involvement in the Maize Triangle, including: - R20.7 million and R63.1 million set aside for the agri-parks and Maize Triangle respectively for the 2012/13 financial year - R3 million has been allocated during the same period for the establishment of the West Rand Agricultural College and to promote agricultural knowledge and skills.

HUMAN SETTLEMENTS • Gauteng intends to reinforce human settlements efforts by: • accelerating the delivery of housing opportunities • improving access to basic services • utilising government land more efficiently.

Over the medium term, R173 million will be set aside for the development of physical infrastructure in the 20 Prioritised Township Programme. Alexandra and Evaton are part of the Urban Renewal Programme, hence R330 million has been made available to implement various projects in these areas over the MTEF. This is to acquire 20 land parcels for developing well-located human settlements during the 2012/13 financial year.

SMART CITY INNOVATIONS • A knowledge-based economy is vital for driving competitiveness and growth in the province and in support of ‘smarter’ developments, R15 million will be invested in infrastructure that supports Smart City innovations during the 2012/13 financial year. Furthermore, feasibility investigations of the G-Link Broadband solution have been completed and technology partners will now be sought for the roll-out phases.

TOURISM • R4 million has been allocated to upgrade the Maropeng infrastructure upgrade and another R7 million annually over the MTEF will be allocated to the establishment of a visitor centre and Nelson Mandela Centre of Memory at Constitutional Hill. Other tourism projects include upgrades at the Sterkfontein Caves. All projects are estimated for completion by 2014.

ROADS • R1 billion has been allocated over the MTEF for the upgrade of Voortrekker Road (R55), Malibongwe Road (K154), William Nicol Drive, Leondale Road (R103), Adcock Road and the Mamelodi/Hans Strydom intersection. R68.8 million over the MTEF has been made available for the construction of walkways and bicycle lanes.

PUBLIC ACCESS • Provincial government will implement qualitative services and integrated delivery programmes by improving public access to government services.

This will be achieved by implementing the Gauteng Spatial Development Framework, service delivery framework, integrated public transport system, integrated infrastructure development and integrated human settlement plans. R3.5 million is allocated during the 2012/13 financial year for this purpose, which progressively increases to R3.9 million in 2014/15.

SERVICE DELIVERY PROJECT MANAGEMENT • For improved quality of service delivery, R1.5 million over the MTEF will be made available to monitor frontline service delivery. This involves the development of an evaluation framework and training of frontline officials in the departments of Health and Education.

INFRASTRUCTURE INTELLIGENCE 2012

15

INFRASTRUCTURE BUDGET

WESTERN CAPE

7.95% increase from last year’s budget In 2010/11, for the second consecutive year, every department of the Western Cape government achieved an unqualified audit from the AuditorGeneral, making it the only province to secure this achievement.

A

PART FROM BEING the only province to receive an unqualified audit, the Western Cape is the only province to have spent more of its total budget – just over 99% – ensuring increased service delivery for its citizens. This success is achieved

• Programme 1: Administration receives 21.54% of the budget, or R33.243 million, to give strategic direction and quality financial support to the treasury team as a whole.

• Programme 2: Sustainable Resource Management receives 44.21%, or R68.204 million, to ensure that the province’s budget and its financial assets are professionally managed, and to ensure that budgets across the board are utilised effectively and efficiently.

• Programme 3: Assets and Liabilities Management receives 19.86%, or R30.639 million, to ensure that accounting systems, physical assets and supply chain management systems are effectively managed.

• Programme 4: Financial Governance receives 14.39%, or R22.22 million, to develop and drive financial practices that support the province’s goal of reaching level three financial maturity by 2015.

R37 million was allocated for basic services in the Western Cape’s lead municipalities, which are ready to implement through the implementation of a year-round system that tracks progress within the province.

Provincial Treasury Provincial Treasur y has been allocated R154.286 million for the coming year – a 7.95% increase on last year’s budget. The four programmes of Provincial Treasury aim to steer The province’s strategic approach to human the Western Cape settlements delivery is government towards to ensure that everyone living in informal becoming a skilful and settlements, backyards effective instrument of and overcrowded families in the Western public policy. The proCape has access to grammes will receive the basic services by 31 following funding: March 2014

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INFRASTRUCTURE INTELLIGENCE 2012

Human settlements With a provincial housing backlog of some 500 000 units, the Western Cape has made

maximum provision for human settlements in the upcoming financial years. The province’s strategic approach to human settlements delivery is in line with the national Outcome 8 for Human Settlements, with a focus to ensure that everyone living in informal settlements, backyards and overcrowded families in the Western Cape has access to basic services by 31 March 2014.

The Urban Settlement Development Grant (USDG) was created at the beginning of the 2011/12 financial year by top-slicing 20% (R502.2 million) of the Human Settlement Development Grant (HSDG) and combining it with the Municipal Infrastructure Grant for cities. This equates to approximately 5 000 fewer serviced sites and 5 000 fewer houses per year, which is roughly the difference between the 2008/2009 targets and the 2010/2011 targets. This grant is disbursed directly to the City of Cape Town and is the main reason the HSDG for this year is R1.638 billion, and not R2.141 billion, as was projected in previous Medium Term Expenditures (MTEFs).

The servicing of sites in the city is now funded by the USDG. So, in addition to the 10 656 sites, the city will service approximately 6 000 sites under the USDG in 2012/13 and over

INFRASTRUCTURE BUDGET

WINELANDS DISTRICT BREEDE VALLEY • 807 sites were planned and 300 delivered. 581 top structures were planned and 581 delivered. 100% of the R43 million allocated was disbursed.

An additional R6 million to provide basic services in informal settlements was received.

DRAKENSTEIN • 858 sites were planned and 293 delivered. 899 top structures were planned and 169 delivered. 88% of the budget (or R57 million) of R65 million was disbursed, as R19 million was allocated for bulk services.

LANGEBERG • 16 sites were planned and all were delivered. 188 top structures were planned and 161 delivered. 100% of the R13.6 million budget was disbursed.

STELLENBOSCH • 536 sites were planned and 250 delivered. 70 top structures were planned and 20 are being completed. 84% of the budget (or R16.3 million) of R19.4 million was disbursed. Allocation was reduced from R28 million to R19 million due to delays in implementation of the Klapmuts Project following disputes over the awarding of contracts and bulk infrastructure challenges.

WITZENBERG • 569 sites were planned and 476 delivered. No top structures were planned. 100% of the budget of R20.6 million was disbursed. The number of sites was reduced to 476 due to planning issues on the Tulbagh Project. An additional R2 million to accelerate the Tulbagh Project was received.

OVERBERG DISTRICT CAPE AGULHAS • 541 sites were planned and 184 delivered. 125 top structures were planned and 251 delivered. 159% of the budget (or R31.2 million) was disbursed. An additional R5 million to accelerate the Bredasdorp Project was received.

OVERSTRAND • 108 sites were planned and all were delivered. 191 top structures were planned and all delivered. 91% of the budget (or R13.9 million) of R15.2 million was disbursed.Due to planning delays on new projects in Overstrand, the allocation was reduced to R15 million.

SWELLENDAM • 105% of the budget (or R2.1 million) of R2 million was disbursed. Work has commenced on site on the Swellendam Railton Project.

Allocation was reduced by R4 million.

THEEWATERSKLOOF • 138 sites were planned and all were delivered. 234 top structures were planned and 200 delivered. 100% of the budget of R38.9 million was disbursed. An additional R5 million to accelerate the Grabouw UISP was received.

CENTRAL KAROO DISTRICT BEAUFORT WEST • Work commenced on a new project of 240 sites in Kwamandlenkosi. The reduced budget of R120 000 for planning has been disbursed.

LAINGSBURG • 39 sites were planned and are under construction. 100% of the budget of R0.7 million was disbursed.

PRINCE ALBERT • 60 sites were planned and all were delivered. 60 top structures were delivered. 86% of the budget (or R5.3 million) of R6.2 million was disbursed.

An additional R3 million was allocated to accelerate the Klaarstroom Project of 60 units.

EDEN DISTRICT BITOU • Work commenced on the Kranshoek project with approximately 10% of the 401 sites serviced. 252 top structures in Bitou were planned and 195 delivered. 100% of the budget of R16.3 million was disbursed. The Kranshoek project had to be fast-tracked, which was made possible by the department’s commitment to assist with bulk infrastructure to the value of R3 million.

GEORGE • 1 100 sites were planned on the Thembalethu Project, which commenced in April 2012. 1 234 top structures were planned and 1 046 delivered. 100% of the budget of R77 million was disbursed. An additional R30 million was received to complete the Pacaltsdorp and Touwsranten projects, as well as to provide basic services in Thembalethu and to accelerate the Thembalethu Project, ultimately providing 4 300 sites.

HESSEQUA • 500 sites were planned, and all delivered. 32 top structures were planned, and all delivered. 150% of the budget, or R26.4 million of R17.6 million was disbursed. Construction of houses on the Heidelberg Project has been fast-tracked.

KANNALAND • 125 sites were planned and 250 delivered. 132% of the budget (or R6.9 million) of R5.2 million was disbursed. The servicing of sites was fast-tracked with all 250 completed within the year.

KNYSNA • 500 sites were planned and 320 delivered. 439 top structures were planned and 364 delivered. 100% of the budget of R63 million was disbursed. An additional R19 million was received to accelerate the Vision UISP Project of 1 393 sites and to provide basic services in its informal settlements.

MOSSEL BAY • 850 sites were planned and 100 delivered. 284 top structures were planned and 136 delivered. 84% of the budget (or R40.6 million) of R48 million was disbursed. An additional R7 million was received to provide basic services in the informal settlements.

OUDTSHOORN • 328 sites were planned and 178 delivered. 178 top structures were planned and 139 delivered. 61% of the budget (or R8.4 million) of R13.7 million was disbursed. The allocation has been reduced by R2 million due to delays in the submission of project applications to the department.

WEST COAST DISTRICT BERG RIVER • 82 sites were planned and all were delivered. 328 top structures were planned and all delivered. 91% of the budget (or R13.8 million) of R15.1 million was disbursed. An additional R3.4 million to accelerate the Piketberg project of 328 sites was received.

SALDANHA • 978 sites were planned and 384 delivered. 298 top structures were planned and 192 delivered. 100% of the budget of R41 million was disbursed. Will receive an additional R12.5 million for the George Kerridge UISP Project of 978 sites.

MATZIKAMA • 388 sites were planned and all delivered. 121% of the budget or R10.7 million of R8.9 million was disbursed.

CEDERBERG • 250 sites were planned and 100 are under construction. 100% of the budget or R7.5 million was disbursed.

SWARTLAND • 50 sites were planned on the Abbotsdale Project, which has not commenced. 268 top structures were planned and all delivered. 100% of the budget or R14 million was disbursed. The delays have been on the widening of the N7 road reserve preventing approval for the Abbotsdale project. Allocation was reduced by R7 million due to delays in the implementation of the Abbotsdale Project of 350 sites.

9 000 sites in 2013/14. The city will also provide access to basic services on a shared basis to about 2 000 backyard families and 4 000 informal settlement households under the USDG in 2012/13.

The plans for the municipalities have been created, housing pipelines reprioritised, agreements have been signed, and projects approved. In addition, R37 million was

allocated for basic services in the following lead municipalities, which are ready to implement, and face the greatest need: Breede Valley (R6 million), Stellenbosch (R9 million), Overstrand (R6 million), George (R6 million), Knysna (R7 million) Mossel Bay (R6 million).

To mitigate the major challenges of human settlements delivery of working with project time frames of between five to six years, a

complex bureaucratic environment, and the reliance on effective, actionable planning from the municipalities, the Western Cape provincial government has several major business processes and strategic interventions planned.

Allocations to municipalities are now based on the readiness of projects, instead of on predetermined amounts for which the municipalities create projects to spend the allocation.

INFRASTRUCTURE INTELLIGENCE 2012

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INFRASTRUCTURE BUDGET

KWAZULU-NATAL

Boost for education and Job creation in KwaZulu-Natal has declined considerably but through massive investment in infrastructure in a counter cyclical manner, the province hopes to counteract the negative impact of the economic downturn.

S

OUTH AFRICA IS PART of the second fastest growing region in the world, therefore it makes sense to seize opportunities on the African continent. Shifts in the global economy provide considerable opportunities for domestic growth and employment within the mining, manufacturing and agricultural sectors, with emerging markets now accounting for more than 40% of global impor ts, expor ts and industrial production.

On 9 March 2012, Ina KwaZulu-Natal MEC for Cronjé, MEC for Finance, KZN Finance, Ina Cronjé, delivered the provincial government’s budget. A year ago, National BELOW LEFT R7.56 billion will be Cabinet adopted the New Growth Path as a budgeted over the 2012/13 MTEF on roadmap to job creation and on 11 November various education infrastructure projects BELOW RIGHT The transport department 2011 the draft National Development Plan plans to spend R16.959 billion over was unveiled, setting out 13 key imperatives, the 2012/13 MTEF on numerous roads which must inform in the province’s budget infrastructure projects

“KwaZulu-Natal is poised to boom.”

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spend. Making this list was the expansion of infrastructure and the transformation of urban and rural spaces.

The budget allocation for Provincial Treasur y increased from R510.024 million in 2011/12 to R625.123 million in 2014/15, which is an annual average nominal growth of 7.0% and 1.7% in real terms.

The province’s planned infrastructure spend budget addresses both social infrastructure development as well as economic infrastructure. The importance of infrastructure investments has been articulated in the 2012 State of the Nation Address, and KwaZulu-Natal is therefore budgeting R13.451 billion in 2012/13, which will rise to R15.556 billion in 2014/15 on various infrastructure projects.

“KwaZulu-Natal is poised to boom,” says Cronjé. She urges all departments within the province to commit to spending taxpayers’ monies wisely.

INFRASTRUCTURE BUDGET

human settlements INFRASTRUCTURE INVESTMENTS AGRICULTURE, ENVIRONMENTAL AFFAIRS AND RURAL DEVELOPMENT • R46.961 million, R101.356 million and R108.613 million respectively will be allocated for the following: • expansion of the fencing programme (2012/13: R11 million; 2013/14: R12 million; 2014/15: R13 million) • irrigation schemes (2012/13: R9 million; 2013/14: R10 million; 2014/15: R11 million) • road maintenance by Ezemvelo KwaZulu-Natal Wildlife in protected areas as well as a contribution to the expansion of protected areas in KwaZulu-Natal (2012/13: R12.513 million; 2013/14: R64.186 million; 2014/15: R68.685 million) ECONOMIC DEVELOPMENT AND TOURISM • Infrastructure investments particularly in logistics and agri-business will be managed by the Dube TradePort Corporation (DTP). Amounts of R50 million, R180 million and R220 million have been allocated to the DTP for this purpose over the three years. Operational costs of the Agri-business Development Agency (2012/13: R21.591 million; 2013/14: R22.851 million; 2014/15: R24.257 million).

A further R40 million per annum will be made available to the province to finance strategic projects that can showcase KwaZulu-Natal as an investment and tourism destination of choice.

TRANSPORT • The department plans to spend R16.959 billion over the 2012/13 MTEF on numerous infrastructure projects. The key focus area of the 2012/13 MTEF is the maintenance backlog, with a particular focus on the main corridors, namely: • Roads of national importance, such as the P318 Sani Pass, which is the only road link between KwaZulu-Natal and Lesotho. Phase 1 comprises of upgrading 14 km of gravel road to blacktop standards, of which approximately 7 km have been upgraded to date. The remaining 7 km will be completed over the 2012/13 MTEF. • The African Renaissance Roads Upgrading Programme (ARRUP), which encompasses the upgrading of roads to blacktop standard. The following are some projects currently in progress: - Main Road P700 located between Ulundi and Empangeni. The project entails the upgrading of 95 km of gravel road to a blacktop surface. Approximately 32 km have been completed to date, and the remaining 63 will be completed over the 2012/13 MTEF. - Main Road P230 from Empangeni to Eshowe. The project entails the upgrading of 31.3 km of gravel road to a blacktop surface and the construction of one underpass road.

• The Operation KuShunquthuli programme focuses on transport infrastructure development in rural areas. The department has identified key projects that will stimulate growth by linking rural communities to the provincial hubs of activity. Some of the projects include the following: - Main Road P127 from Impendle to Himeville. The project entails the upgrading of 55 km of gravel road to a blacktop surface, of which 16 km have been completed to date - Main Road P73 between Sipofu and Ixopo. The project entails the upgrading of 75 km of gravel road to blacktop standards, of which 10 km have been completed. The balance will be upgraded over the 2012/13 MTEF. • The Pedestrian Bridge Programme, which was implemented with the aim of ensuring that communities have access to schools, health facilities and amenities. The department will construct 13 pedestrian bridges per annum over the MTEF.

HUMAN SETTLEMENTS • The department will spend R9.098 billion over the 2012/13 MTEF on infrastructure projects as follows: • Attention will be focused on 17 municipalities with the highest prevalence of informal settlements in KwaZulu-Natal, and those located in areas closest to opportunities that will give rise to the establishment of new settlements, new towns and new economic opportunities will be prioritised, and will focus on finding well-located and appropriate land.

• The Vulindlela rural housing development project accelerates housing delivery in rural areas and is expected to have a yield of 25 000 units over the long-term (construction is anticipated to be completed by 2017). The department anticipates building 2 908 units in 2012/13 in respect of this project.

• The Cornubia project is designed to implement integrated sustainable human settlements, while also contributing to the upgrading and eradication of informal settlements. Cornubia will continue to be implemented in 2012/13, with 653 sites and 647 houses projected to be procured and constructed respectively.

PUBLIC WORKS • The budget increases from R1.268 billion in 2011/12 to R1.461 billion in 2014/15, reflecting an average annual nominal growth of 4.8% and 0.4% in real terms. Allocation has been made for, among others, a wide-range of community-based greening activities such as ‘waste-preneurs’ and reforestation projects.

PROVINCIAL TREASURY • The development of the Pietermaritzburg and Ulundi airports will continue. These projects receive funding of R16.027 million and R20 million respectively in 2012/13. The Pietermaritzburg Airport development in 2012/13 includes the establishment of a new terminal building, a new apron and link taxiways and a hangar development. The main objective in developing the Ulundi Airport is to achieve and maintain Category 4 Status for the airport. The capital injection of R30 million (R10 million allocated in 2011/12 and the balance of R20 million in 2012/13) is to upgrade the main runway, upgrade fire and rescue facilities, upgrade the terminal building and install landing and navigation systems.

HEALTH • The infrastructure budget over the 2012/13 MTEF is R6.116 billion, allocated as follows: • rebuilding of the greater Edendale hospital complex and the design and construction of the Dr John Dube and Dr Pixleyka Seme district hospitals • rehabilitation of the children’s hospital in eThekwini • rehabilitation, renovation and maintenance of its existing health facilities, including the upgrade of the accident and emergency unit at Addington, new casualty/ trauma units at various district hospitals throughout the province, the upgrading of various general and TB wards at district hospitals, and routine maintenance at health institutions • construction of the Madadeni Psychiatric Hospital in Newcastle as well as a Provincial Pharmaceutical Supply depot, which is essential for holding sufficient stock.

EDUCATION • R7.560 billion will be budgeted over the 2012/13 MTEF on various infrastructure projects, allocated towards the provision of classrooms, toilets, computer rooms, laboratories and media centres. The department will continue to implement existing infrastructure programmes and initiate new programmes based on new needs and new policy directives.

Funding for maintenance and repairs grows substantially over the 2012/13 MTEF. The department has registered an intention to enter into a Public-Private Partnership (PPP) arrangement for schools and offices. The project is intended as a pilot and will encompass the design, delivery, rehabilitation, as well as maintenance and funding over the life span of the assets. To ensure that there is coordination in infrastructure investments and delivery, provincial government has established an infrastructure coordination work group led by Public Works and representing all infrastructure delivery agents including national state-owned enterprises. The main objectives of this work group is to ensure alignment of infrastructure plans of local, provincial and national government, as well as assist in removing blockages in infrastructure projects and provide technical support to ensure infrastructure delivery. This work group will work closely with the existing Infrastructure Crack Team located in Provincial Treasury and will also use expertise from the Infrastructure Development Improvement Programme.

INFRASTRUCTURE INTELLIGENCE 2012

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INFRASTRUCTURE BUDGET

NORTHERN CAPE

Demand for municipal The immediate challenge for the Northern Cape is to find ways of restructuring the provincial economy to result in rapid economic growth and the creation of decent jobs.

T

HE MANUFACTURING and construction industries accounted for the highest growths in 2006 at 5.6 and 4.1% for South Africa and the Northern Cape respectively. Though both economies contracted by -1.5% and -3.2% in 2009 as a result of the global turmoil, they improved to

“The systems that are under greatest pressure are procurement, billing and revenue collection, staff appointments, and the planning and zoning functions.�

J Block (MPL), MEC for Finance, Economic Development and Tourism to the Provincial Legislature

The Northern Cape’s investment in infrastructure aims to eliminate the significant backlog of services that are needed such as electricity

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INFRASTRUCTURE INTELLIGENCE 2012

2.9# and 1.9% respectively in 2010. During 2011, the provincial economy grew by 2.4% and the national economy grew by 3.1%. Both economies are projected to decline in 2012 before they pick up in 2013.

The tertiary sector continues to be the main

contributor towards the gross domestic product of the Northern Cape, with an average rate of 50%, followed by primary and secondary sectors at 33% and 7% respectively for the period 2001 to 2010. The agriculture industry remains the second highest employer in the province after community services. Mining was the highest contributor at an average rate of 26%. Because of the contraction and gradual decline in mining, which has negatively affected Namakwa district, the provincial government has identified fishing and mariculture as an alternative to boost the economy.

Local government In his Northern Cape Appropriation Bill address on 6 March 2012, John Block (MPL), the MEC for Finance, Economic Development and Tourism to the Provincial Legislature, said that while there are many examples of councils, mayors and municipal managers striving to provide effective leadership and making progress with strengthening governance, there are instances where serious governance shortcomings still remain. The systems that are under greatest pressure are procurement, billing and revenue collection, staff appointments, and the planning and zoning functions.

There is an urgent need for all municipalities to pay greater attention to maintaining their existing assets. Systems of asset management and levels of spending on repairs and maintenance need to be improved. To assist in financing this spending it is important that tariffs for the trading services are cost reflective, incorporating all the input costs associated with the production of those services. The clarification of the institutional responsibility for electricity distribution should lay the foundation for improved management of electricity assets.

Municipalities need to revisit how they fund their capital budgets. Generally, national capital grants are intended to finance the rollout of infrastructure for addressing service delivery

INFRASTRUCTURE BUDGET

infrastructure backlogs and extending access to basic services. Municipalities are still expected to fund the ongoing development and extension of infrastructure related to the economic and trading services for which they are responsible. To do so, municipalities need to examine the balance between their operating budgets and capital budgets, and ensure that they structure their operating budgets to generate the surpluses required to fund infrastructure.

Infrastructure delivery The Northern Cape’s investment in infrastructure aims to eliminate the significant backlog of services that need to be provided, while keeping pace with new demands that are created as the economy grows and living patterns change.

Over the next three years, provincial government plans to invest R5.557 billion towards building roads, hospitals, clinics, schools, agricultural infrastructure, and arts and culture and sporting facilities. During the 2012/13 financial year, the province will spend R1.842 billion on infrastructure building and maintenance, which is more than double what was spent in the 2008/09 financial year.

However, the capacity to plan and implement the infrastructure budget still poses a challenge. The province has therefore requested National Treasury to assist the Department of Roads and Public Works with additional engineering capacity, and the request is receiving favourable consideration.

The overall adjusted capital budget for the year ending 31 March 2012 was R1.596 billion; revised estimated spending was R1.559 billion or 97.7%. This represents an improvement on current spending compared with 79.7% of the previous financial year. Key challenges relating to infrastructure as we reported in the past could not be resolved speedily and includes, but is not limited to, the following areas: • The lack of clearly defined roles and responsibilities of departments in relation to infrastructure delivery resulting in silo approaches and leading to failure to employ the skills that are needed.

• Forward planning and the achievement of the alignment model is impaired by ad hoc changes in priorities and infrastructure

budgets and plans are also not aligned making institutionalisation of alignment model problematic.

• Human resources management and development in relation to infrastructure delivery is not being dealt with by the provincial departments as a strategic resource but rather as an administrative matter.

• The focus of the staffing of infrastructure units in departments is mostly on post provisioning and existing staffing levels and not on efficiency levels, performance or competence. There is an urgent need for post provisioning norms in infrastructure units.

• Capacity in the line departments to undertake a number of key activities in any given financial year – that is, planning for future years, conducting feasibility studies, project design, initiating procurement for the next year, while managing or implementing current infrastructure projects, is lacking.

The provincial infrastructure grant has been increasing rapidly over the years, however, the skills, knowledge and expertise required for the successful implementation of the projects is lagging behind, especially the planning and alignment of projects with the budgets.

To address this challenge, the province has partnered with National Treasury, which has provided technical assistants for each major infrastructure department, including Provincial Treasury, to address issues of planning and alignment.

In Cooperative Governance, Human Settlements and Traditional Affairs, the focus remains to promote and facilitate sustainable, integrated human settlements and

infrastructure develThe arid Kalahari and Karoo makes opment for effective up a vast area of the service delivery.

Northern Cape – the largest province in Key priorities for the South Africa department are provision of houses and sanitation as well as implementation of the Operation Clean Audits 2014, together with other stakeholders. In the 2012/13 financial year, this department has been allocated R582.761 million, including conditional grants. This includes an amount of R322.602 million in respect of

During the 2012/13 financial year, the province will spend R1.842 billion on infrastructure building and maintenance.

More than double what was spent in the 2008/09 financial year the Integrated Housing and Human Settlement Development Grant and Housing Disaster Relief Fund of R16.949 million.

Operation Kgotso Pula Nala In 2011, R10 million was dedicated to assist struggling municipalities meet their service delivery obligations. This amount was subsequently paid in installments to the affected municipalities based on the business plans they had prepared and progress certificates of what they had achieved. Although not included in the Appropriation Bill, R50 million was set aside for Operation Kgotso Pula Nalato be utilised by the Departments of Roads and Public Works, and Cooperative Governance, Human Settlements and Traditional Affairs.

The two departments have been mandated to prepare a business case that outlines what needs to be done to revitalise townships within the province.

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INFRASTRUCTURE BUDGET

MPUMALANGA

Economic growth and development implementation Mpumalanga’s economy is expected to grow at a rate of 2.8% in 2012, with the provincial GDP expected to grow at a rate of 3.7% in 2013 and 4.2% in 2014.

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HILE THE RATE OF unemployment in the country decreased in 2011, Mpumalanga’s unemployment rate remained at a high of 27.7%. On the positive side, the Gert Sibande District Municipality is expected to record an annual GDP growth of 3.9% during the 2010 to 2015 period, and a growth rate of 3.5% is anticipated for both Ehlanzeni and Nkangala District Municipalities during the same period. The BELOW LEFT R3.51 billion has been allocated towards the fastest growing Provincial Department of industries within Public Works, Roads and the province, at Transport for the effective implementation of all 4% and higher in mandates BELOW RIGHT terms of real gross The Mpumalanga Economic Growth and Development value-added growth Path implementation makes in the same period, provision for rural service delivery development should be transport,

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trade, construction and utilities. The challenge for the province is to achieve a target of 70 000 new jobs per annum. The Mpumalanga Economic Growth and Development Path implementation makes provision for: • the improvement of education and skills development – the implementation of the Provincial Human Resource Development Strategy can be highlighted in this regard • the delivering of quality health care and improving the health profile of its citizens • the creating of decent work and expanding employment-creating programmes • rural and agricultural development, with the Comprehensive Rural Development Programme as the main driver of strategic interventions • the expansion of public infrastructure investment programmes.

Infrastructure investment Public works, roads and transport: A total budget of R3.51 billion has been allocated towards the Provincial Department of Public Works, Roads and Transport for the effective implementation of all mandates relating to: • maintenance of government buildings and road infrastructure • provision of wood and coal for hospital boilers • integrated transport infrastructure • provision of scholar transport.

Tourism and parks: A special allocation of R50.606 million has been made available to the Mpumalanga Tourism and Parks Agency.

R44 million of this allocation will go towards revitalisation of the first four priority nature reserves, namely: • Blyde River Canyon Nature Reserve • Songimvelo Nature Reserve • Manyeleti Nature Reserve • Loskop Dam Nature Reserve.

The remaining R6.606 million will cover programme costs related to the implementation of both tourism and conservation mandates.

Human settlements: In order to facilitate the creation of integrated sustainable human settlements, the provincial Department of Human Settlements has been allocated a budget of R1.164 billion. The Comprehensive Rural Development Programme will be supported by the People’s Housing Programme with a target of 5 300 units. The provincial share of the Human Settlements Development Grant of R589 000 is provided for the repair of storm-damaged infrastructure. Mpumalanga Provincial Government is committed to fostering effective financial oversight, monitoring and quality reporting in order to enable timely interventions in favour of societal development, thereby making every cent count.

INFRASTRUCTURE BUDGET

LIMPOPO

Expansion of social and economic infrastructure “Limpopo is ready to benefit from government’s large-scale infrastructure programme. There is the plan to develop and integrate rail road and water infrastructure in two main areas in Limpopo. This programme will help unlock the potential for mining in coal, palladium, platinum, chrome and other scarce minerals.”

Limpopo MEC for Treasury, David Masondo, during his 2012/13 budget speech.

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N DECEMBER 2011, Cabinet took a decision to intervene in the management of Limpopo’s finances and it has helped stabilise the province’s finances. In addition, provision has been made in the provincial budget for improved financial management and a review of organisational structures.

Limpopo’s budget for the 2012/13 financial year is R46.8 billion, of which R4.8 billion will go towards human settlements and R4.6 billion to roads infrastructure and the maintenance of office buildings in the same financial year.

The Department of Education will receive the largest share of the provincial budget –

nursing colleges. Another sector to receive a budget increase is the Department of Roads and Transport, from R3.6 billion to R3.7 billion for the 2012/13 financial year, which will be set aside for the building and maintenance of improved transport infrastructure. Included in the priorities for the current Medium-Term Expenditure Framework budget are the R33 and R37 roads, which provide very important links between Lephalale and the N11.

Economic developments including the Medupi Power Station and Project Mafutha are situated along these routes. Funds will also be allocated towards the construction of intermodal facilities in Thohoyandou, Giyani and Burgersfort.

The Department of Public Works has been allocated R859 million, which will be used to provide leadership on infrastructure development and maintenance in Limpopo, while the department of Cooperative Governance, Human Settlements and Traditional Affairs has been allocated R2.4 billion, of which R1.5 billion is a conditional grant for Housing and Human Settlements.

The budget for Sports, Arts and Culture is R288 million and includes the provision of library infrastructure.

Masondo says that all institutions of government need to spend prudently and realign their budgets to ensure bias towards pro-poor frontline government services. He says the preparation of the provincial budget was dependent on hard work and input from a number of stakeholders and role players. Consideration had to be taken in light of the provincial budget deficit, bank overdraft position and trade-offs.

The Department of Public Works has been allocated R859 million, which will be used to provide leadership on infrastructure development

All institutions of government need to spend prudently and realign their budgets to ensure bias towards propoor frontline government services R22.1 billion – as Limpopo considers education to be a top priority. Agriculture has been allocated R1.6 billion, while R315 million is allocated to Provincial Treasury in order to improve overall financial management within Limpopo.

The Department of Economic Development, Environment and Tourism will receive R888 million and will also finalise the provincial mineral beneficiation strategy to ensure that unprocessed minerals are not exported.

The allocation to the Department of Health increases from R11.5 billion to R11.9 billion for 2012/13, to R12.6 billion in 2013/14 and R13.8 billion in 2014/15. This department benefits from a 26% budget share due to the number of priorities outlined within the department, which includes building more

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EASTERN CAPE

Education, health, and With a budget of R56.2 billion, R5 billion of which will be allocated towards infrastructure development, the Eastern Cape is prominently featured on the national development agenda.

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N THE BUDGET allocation speech on 7 March 2012, Eastern Cape Finance MEC, Phumulo Masualle, announced a R5 billion budget allocation for infrastructure development in the 2012/13 financial year and this amount is set to increase to R5.7 billion by 2014/15. The province’s six priority programme areas Eastern Cape Finance are job creation, MEC, Phumulo Masualle rural development, infrastructure development, local government, education and health, and provincial planning.

The planned infrastructure projects will help boost investments by state-owned enterprises and hence address the issues of

“On the growing list of infrastructure developments within the province is the R7.5 billion that has been invested in port developments”

In the year ahead, the Eastern Cape’s rural development focus will focus on access roads

poverty and unemployment within the province.

Infrastructure development projects include improvement to provincial roads, schools and hospitals, and the budgets are well covered by conditional grants from national government.

The Eastern Cape’s largest provincial government infrastructure project is the upgrading of Nelson Mandela Hospital in Mthatha at a cost of R4 billion and is due for completion in 2013.

The province’s largest economic infrastructure project is the new Ngqura Port container terminal being implemented by Transnet at a cost of R10 billion and is also due for completion in 2013. New major projects that are at an advanced stage of negotiation include the N2 toll road, the Coega-Gauteng logistics corridor and the upgrading of East London Harbour. Other recent investments in the Eastern Cape include: • a R2.4 billion private-sector driven wind generation project in Cookhouse, which will contribute no less than 135 MW to the national grid • the R3.3 billion renewable energy projects championed by the East London Industrial Development Zone (IDZ) • the R1 billion FAW automotive investment • the R4.2 billion Kalagadi Resources 320 000 t/year high-carbon ferromanganese smelter at the Coega IDZ

Departmental allocations On the growing list of infrastructure developments within the province is the R7.5 billion that has been invested in port developments to date, and an addition R20 billion has been allocated for ports, rail and back-ofport infrastructure over the next few years.

Sanral has allocated R1.8 billion towards road infrastructure in the 2012/13 financial year, while Eskom has allocated R2.8 billion in the same financial year towards distribution and transmission infrastructure within the province. More than R20 million has been set aside for detailed feasibility and design of the Umzimvubu Dam and hydropower project, in terms of the Department of Water Affairs’ (DWA) sector plan.

The Eastern Cape provincial government has also set aside funds for its own infrastructure

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INFRASTRUCTURE BUDGET

public works take centre stage investment with the bulk of the budget allocated towards education, health, roads and public works – a Medium Term Expenditure Framework (MTEF) allocation of R16.2 billion. The provincial Department of Roads and Public Works received R3.7 billion in 2012/13 (R11.8 billion over the MTEF) for infrastructure maintenance projects, repairs of flood-damaged roads (R166 million) and continued construction of capital projects (R172 million).

In addition, R7.3 billion has been allocated over the next three years towards housing and human settlements infrastructure, bringing the provincial allocation to R23.5 billion over the next three years. The provincial Department of Human Settlements received R2.5 billion for the 2012/13 financial year (R8.2 billion over the MTEF) for use on informal settlement upgrading, rural development, affordable rental housing and social housing, and the supply of affordable housing finance. The urban settlements development infrastructure grant will target improving bulk infrastructure within the Buffalo City and Nelson Mandela Bay metros.

The Department of Health was allocated R15.1 billion in 2012/13 (R48.9 billion over the MTEF) to maintain the health infrastructure, including equipment, while R1.3 billion has been allocated to the Department of Transport for the 2012/13 financial year (R4.2 billion over the MTEF) for improving the provision of public transport, providing scholar transport for learners, providing capacity for management of government fleet services and improving traffic management.

The province’s Rural Development Strategy extends beyond agricultural development, encompassing an integrated package aimed at raising rural incomes. In the year ahead, the Eastern Cape’s rural development focus will focus on: • creating sustainable human settlements in rural communities, with a package of housing, access roads, water reticulation, sanitation and electrification • rolling out agricultural infrastructure such as fencing and dipping tanks • continuing with the programme to revitalise irrigation schemes

• food security • supporting the commercialisation of primary production, which is linked to agro-processing investment • small town revitalisation.

“Our transformation effort is far from over and we continue to make steady progress,” said Masualle. “Every budget is very much

about trade-offs and how R7.3 billion has been allocated over we resource our priorithe next three years ties. If we are to see our towards housing and human settlements transformation through to infrastructure its logical conclusion, we must tilt the balance away from consumption spending towards investment spending to grow and transform our productive base.”

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INFRASTRUCTURE BUDGET

FREE STATE

Increased monitoring According to the Free State provincial government, increasing pressure on municipalities to accelerate the provision of quality and essential basic services must be done in order to address the glaring infrastructure backlog.

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NADEQUATE INFRASTRUCTURE has been partly responsible for the lack of productive investment in the Free State, as infrastructure development has a

planning, execution and project management of large infrastructure projects.

The Free State MEC for Finance, Seiso Mohai, said that the province must spend the allocated infrastructure budgets and must deliver quality infrastructure within the set timelines. He also added that technology, in terms of both skills and information communication technology (ICT) infrastructure, is one area that requires serious attention in order to improve efficiencies within the provincial economy, attract investment and create jobs. “The Free State will not

“The Free State will not benefit from its strategic geographic location unless there are dramatic improvements to its infrastructure” Seiso Mohai, MEC for Finance, Free State In order to deal with the capacity constraints regarding infrastructure delivery in the province, an assessment of the capacity and ability of key departments to deliver infrastructure will be undertaken

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multiplier effect in growing and developing an economy. Since the benefits of infrastructure can be so huge, the challenge is to improve

INFRASTRUCTURE BUDGET

and capacity building benefit from its strategic geographic location unless there are dramatic improvements to its infrastructure, including roads, rail and ICT,” Mohai says.

As part of the Free State’s effort to monitor and oversee infrastructure projects, the following has been implemented: • the department managed to hold three provincial infrastructure review meetings • an Infrastructure Delivery Improvement Programme was rolled out in four departments, namely Provincial Treasury, Department of Health, Department of Education and the Department of Public Works • a technical advisor was deployed to the Department of Police, Roads and Transport from November 2011 in order to build infrastructure capacity by means of transfer of skills • 49 infrastructure sites around the province were visited.

Infrastructure challenges Unfortunately, mismanagement of infrastructure projects by municipalities in the Free State is a problem. Provincial Treasury’s support to the municipalities will extend to the following areas: • assisting seven municipalities with issues of supply chain management • focusing energies of municipalities on effective budgeting, improved cash flow management and effective administration of indigent management to avert incorrect revenue projections (R43 million in debt was reduced through concerted efforts) • coordinating efforts to build technical competence and skills in financial management • monitoring infrastructure delivery and spending on conditional grants.

The Free State has a huge infrastructure backlog. What has undermined the province’s capacity to fast-track infrastructure delivery is the lack of integrated planning driven by technical capacity and the lack of (and coordination of) resources between different spheres of government. More efforts will be spent on the consolidation of monitoring of infrastructure delivery and the spending of conditional grants by all departments. Part of Provincial Treasury’s

approach will involve the crafting of an integrated infrastructure delivery model, which seeks to strengthen reporting, coordination and monitoring processes across departments.

Departmental allocations The total projected expenditure for the next three years – the 2012 Medium Term Expenditure Framework (MTEF) period – amounts to R78.767 billion and this amount is broken down as follows: • R24.870 billion in 2012/13 • R26.290 billion in 2013/14 • R27.607 billion in 2014/15.

Health care: The provincial Department of Health has been allocated an amount of R7.383 billion in 2012/13, R7.856 billion in 2013/14 and R8.354 billion in 2014/15.

Cumulatively, the department will spend well above R23.5 billion over the next few years and this allocation makes provision for the continued improvement of health infrastructure.

Tourism and environmental affairs: To stimulate economic growth and job creation, the Department of Economic Development, Tourism and Environmental Affairs has been allocated R436.894 million in 2012/13, R441.801 million in 2013/14 and R457.694 million in 2014/15. The department will spend more than R1.336 billion over the 2012 MTEF and part of this allocation will be directed towards the development of an ICT hub, the ongoing revitalisation of resorts and the fencing of reserves.

Infrastructure development: In order to deal with the capacity constraints regarding infrastructure delivery in the province, an assessment of the capacity and ability of key departments to deliver infrastructure will be undertaken. The province will strengthen implementation and monitoring of Expanded Public Works Programme (EPWP) with a view to create much-needed work opportunities.

An amount of R1.269 billion is allocated to the Department of Public Works in 2012/13, R1.362 billion in 2013/14 and R1.423 billion in 2014/15. The following priorities are funded in this department’s allocation: • payment of property rates to municipalities • payment of leases

• ongoing maintenance of government buildings • continuation of EPWP. Roads and transport: Continued improvement of the Free State’s road conditions remains a critical priority within the province and savings will continue to be redirected towards roads infrastructure.

The allocation to the Department of Police, Roads and Transport amounts to R1.755 billion in 2012/13, R1.910 billion in 2013/14 and grows to R2.011 billion in 2014/15. The allocation for this department will mainly cover provincial roads infrastructure. Cumulatively, the department will spend more than R5.677 billion over the MTEF, which will also cover the following: • provincial road maintenance • transport infrastructure • weighbridges.

Human settlements: Over the coming 2012 MTEF, the Free State Department of Human Settlements will be allocated R3.3 billion to cater for the housing needs of its communities.

The department has been allocated R1.058 billion in 2012/13, R1.135 billion in 2013/14 and R1.135 billion in 2014/15.

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NORTH WEST

Weaknesses in service A planning commission has been implemented by the premier of the Nor th West; this will assist greatly in aligning plans of provincial and local government over a long period of time – and will have a greater impact on the rollout of infrastructure projects.

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N HER 2012 provincial budget speech on 6 March 2012, North West MEC for Finance, Lorato Mabe, admitted that the province presented a few weaknesses in its capacity to deliver on infrastructure projects.

For several years, the province has been struggling with capital expenditure and spending of conditional grants. The North West provincial government will place the six roads identified by the president and the premier on its priority list. These roads will be constructed by Sanral (South African National Roads Agency Limited).

The resources that are available in the Provincial Revenue Fund for road construction will be diverted to other roads that will not be constructed The North West Department by national governof Human Settlements ment. With regard received R1.199 billion for to electricity, the the 2012/13 financial year

R10.825 billion earmarked by Eskom over a five-year period will also make great impact on the expansion of electricity in the province.

Some of North West’s entities have not contributed much to government’s effort to develop the provincial economy, and is currently under review by the Presidential Commission. The province will use the final report to restructure and derive maximum benefit from its entities at a lesser cost.

According to the North West budget speech, businesses have failed government by either delivering poor quality goods or services, and this has retarded the necessary growth in capital investment on the side of government. The province is left asking the question: Is business ready to work with government on our priorities of infrastructure development, water provision and sanitation, alternative sources of energy

and telecommunications? The North West has not accelerated its spending on conditional and infrastructure funds.

Financial mismanagement Financial management in municipalities remains one of the province’s serious challenges. The audit outcomes for 2009/10 among municipalities in the North West have worsened. Most municipalities could not submit or submitted the financial statements late or struggled to submit compliant statements.

Some have not submitted financial year statements for two years and this, undoubtedly, compromises accountability.

Municipalities that have submitted statements received bad audit reports. Some have incurred huge debts with service providers that provide bulk services and do not pay monthly.

As a result, provincial government has dispatched Thuthuka Project internship students to assist municipalities under distress. In addition, Provincial Treasury has employed students who have completed their internship on 12-month contracts to assist all municipalities with capacity issues.

Expenditure proposals The following are budget proposals that result from the bids that departments submitted in line with government priorities. Needs are unlimited and funding will never be enough for all the needs.

• budget to support funding for government key outcomes • provision for key provincial priorities, that is: - infrastructure development and maintenance, e.g. roads - maintenance of social and economic infrastructure - provision of water and sanitation - provision of alternative sources of energy.

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INFRASTRUCTURE BUDGET

delivery capacity The fiscal space in which the province operates is very tight and is worsened by the incapacity to deliver timeously on its priorities. The North West will therefore partner with members of the private sector and has made R486 million available over the MTEF (Medium Term Expenditure Framework) for water and sanitation, and alternative sources of energy to augment resources from national government.

The Depar tment of Human Settlements received R1.199 billion for the 2012/13 financial year. The funds are inclusive of the Integrated Housing and Human Settlement Development Grant. This department has serious challenges because more people are being evicted from farms and settle informally

in the surrounding townships thus the target for the provision of housing continues to be extended.

The Economic and Infrastructure Development cluster has been allocated R4.359 billion or 17% of the provincial fiscus while the Depar tment of Public Works, Roads and Transport is allocated R3.082 billion for 2012/13. The department is allocated a R594 million roads maintenance grant and R61 million for infrastructure maintenance.

The Department of Agriculture and Rural Development has been allocated R851 million for the 2012/13 financial year. Given the

province’s challenges of water and energy service delivery, the allocation for these priorities

The fiscal space in which the province operates is very tight and is worsened by the incapacity to deliver timeously on its priorities will be R328 million over the MTEF. The funding is intended to augment the funds from national government. The total infrastructure funding for this department amounts to R352 million, and increases to R402 million in the 2014/15 financial year.

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CONSULTING ENGINEERING

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CONSULTING OVERVIEW

INDUSTRY WAITS FOR PROMISED R844 BILLION

Lack of public sector expenditure

EXPENDITURE OVERVIEW – GOVERNMENT AND PPPs ACTUAL EXPENDITURE ON INFRASTRUCTURE, including all three tiers of government, Public Private Partnerships (PPPs) and non-financial public enterprises (Airports Company South Africa, Eskom, Trans-Caledon Tunnel Authority, Rand Water, Transnet and Central Energy Fund), decreased by 12.7% year-on-year in 2010/11 to R177 billion. An analysis of the expenditure by client type shows that spending by local authorities fell by 21.9% year-on-year in 2010/11, having only spent 73% of their allocations.

SPENDING BY NATIONAL GOVERNMENT increased marginally up 1.4% year-on-year (nominal terms) and provincial departments increased spending by 4.8% having spent 85% of their allocations.

PPPS FELL BY 47% from over R13 billion spent in 2009/10 to only R7.3 billion (effectively only spending 61% of the allocations).

SPENDING BY ESKOM and Airports Company South Africa fell by 6.7% and 90% respectively in 2010/11.

SPENDING BY RAND WATER and Trans-Caledon Tunnel Authority increased by 21% and 11.8% respectively – the most impressive improvement in infrastructure expenditure during the period under review.

COMPETITION IN TENDERING was fierce and increased strongly during the current survey from 66.9% in the June 2011 survey to 95.7%.

A FURTHER SERIOUS CONCERN for the industry is that approximately 24% of fee earnings were outstanding for longer than 90 days compared to 18% in the June 2011 survey and 23% in the June 2010 survey. This is the highest rate since the inception of this survey (1999) and is affecting all firms across the industry. Having more than 40% of income outstanding is not exceptional with several firms (including larger firms) reporting these high rates.

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CONSULTING OVERVIEW

the economy. Given the commitment by government to improve capacity, CESA believes that spending on infrastructure such as roads, water and electricity will continue to support further investment in construction, although at much slower rates than those experienced in recent years.

“Our country’s current lack of institutional strength within government is a breeding ground for corruption.” CESA president, Naren Bhojaram on the issue of procurement of professional services (pictured above between CESA deputy president, Abe Tela (left), and CESA CEO, Graham Pirie)

T

HE RESULTS OF Consulting Engineers South Africa’s (CESA’s) biannual Economic and Capacity Sur vey for the period July to December 2011 were released in April 2012.

The sur vey indicates that conditions in the consulting engineering industr y have eased slightly, with member firms being involved in design and feasibility studies.

It fur ther revealed that capital utilisation within member firms has increased from 80% in the first six months of 2011 to 90% in the period under review. All of this planning needs to be converted into actual projects and, in this regard, the industr y is waiting in anticipation for government’s promised infrastructure spend (R844 billion in the next three years).

The contribution of Gross Fixed Capital Formation (GFCF) to GDP in the last quarter of 2011 improved from 19.7% to 20.3% in the last quarter of 2010, with the construction sector contributing 44% to GFCF. CESA believes that strong investment in fixed capital will provide structural support to

Procurement concerns At a breakfast held at the beginning of this year, CESA’s new president Naren Bhojaram spoke on behalf of the organisation and expressed concerns over inconsistencies between the newly promulgated Preferential Procurement Policy Framework Act (PPPFA) Regulations and the Construction Sector Codes of Good Practice promulgated in terms of the BBBEE Act. CESA is calling upon National Treasur y and the Department of Trade and Industr y to urgently address these inconsistencies.

The organisation is concerned that the newly promulgated PPPFA regulations, which came into effect on 7 December 2011, have once again (under special notice from the Minister of Economic Development, Ebrahim Patel) exempted state-owned enti-

CESA believes that strong investment in fixed capital will provide structural support to the economy ties. Bhojaram states: “We would like to see a return to sanity; the private sector is compelled to abide by these regulations, but state-owned entities do not have to satisfy their own or government’s regulations with respect to transformation.” The issue lies with National Treasur y for allowing this exemption. It is important that parastatals comply with the legislation not because their own systems are no good, but because there is a need for uniformity in procurement within the industr y, which will result in a win-win situation for all.

Bhojaram strongly believes that in the procurement of professional ser vices the

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CONSULTING OVERVIEW

ABOVE CESA believes that spending on infrastructure such as roads will continue to support further investment in construction OPPOSITE PAGE Construction of P5 Pier Head at the highest point

element of ‘quality’ must be included in these regulations as a single process and not just as a pre-qualifier. Technical evaluation of tenders must include input from technical professionals in the bid evaluation committees.

He maintains that political undermining of the opinion and value add of these professionals will continue to be a deterrent in attracting these skills back into the public sector.

He strongly contends that engineering has become an unattractive industr y on account of the profession being reduced to a mere commodity; appointments are being made on the basis of the cheapest price, and expertise and experience not considered adequately.

In order to encourage the private sector to invest in the development of infrastructure projects, Bhojaram believes that we need to be entrepreneurial about project deliver y mechanisms. The easing of PPP regulations will facilitate this.

There was a 7% increase in black Pr Eng in the first six months of 2011, compared to the December 2010 survey

Transformation and human resources Black (including Asian and Coloured) equity, including executive directors, non-executive directors, members and partners, increased to 27.8%, from 21.2% in the June 2011 Economic and Capacity Survey. The number of firms looking for engineers increased to 74% from 66% in the June 2011 survey. This is a positive recovery, compared to 2009 and 2010, when recruiting of engineers was not a priority.

Tr ying to conform to BBBEE requirements means demand for black engineers will continue to put pressure on firms as there are simply not enough black engineers available to fill those positions.

There was a 7% increase in black Pr Eng in the first six months of 2011, compared to the December 2010 survey. In spite of a marginal decrease in employment, the salary and wage

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bill increased to an average of 63% of the salary and wage bill compared to 59% in the previous few surveys. Inflated to annualised rates, the salary and wage bill increased by 9% in nominal terms to R11.3 billion up from R10.3 billion in the June 2011 survey.

Bhojaram urges Patel to consider the consulting engineering sector as a designated sector for local preference, ensuring a better platform for job creation, which will attract young people to join the sector thus accelerating training and development.

Training Training expenses averaged 32% of the total estimated salar y bill, compared to 18% in the June 2011 sur vey, 22.6% in the December 2010 sur vey and 23.6% in the June 2010 sur vey. Companies are spending less on bursaries, as a result of the growing salar y and wage bill.

On average, the industr y spent 0.3% of the salar y and wage bill on bursaries, down from between 0.4% and 0.8% in recent sur veys.

This may, however, be due to the cyclic nature of bursar y allocation and the decline in infrastructure spend.

Industry challenges Unlocking greater private sector participation is seen as a critical element to fasttrack deliver y. Ser vice deliver y, especially at municipal level, remains a critical burning issue. The involvement of non-CESA members in government tenders and procurement continues to threaten the standard and performance of the industr y. Lack of attention to maintain infrastructure poses a serious problem to the industr y.

A further challenge to the industr y is to find a way to standardise the procurement procedures applied by the different government departments. In answering the question of “where does the power really sit with

CONSULTING OVERVIEW

the procurement of professional ser vices”, Bhojaram states that South Africa’s current lack of institutional strength within government is a breeding ground for corruption.

He believes that the one thing that we can all do to grow our economy is to address the issue of business integrity, not only at a corporate level but on an individual level as well. Bhojaram reiterates that business integrity is not only about companies, government or institutions, but about individual human beings – honesty is the only way! All CESA member firms are constitutionally required to have a Business Integrity Management System in place.

“We will continue to bring awareness to the top of the minds of our members and individuals in our industr y to continuously explore their personal ethical balance so that we remain CESA Engineers – unquestionably ethical,” he concludes.

The full industr y repor t is available online at www.cesa.co.za

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INFRASTRUCTURE INTELLIGENCE 2012

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CIVILS OVERVIEW

Expertise and wisdom for the betterment of South Africa Public infrastructure spending has reached a low point, compared to historical levels. A succession plan for civil engineering in South Africa is imperative if the countr y is to meet its infrastructure development objectives.

The expansion and improvement of infrastructure is a very efficient way of creating jobs quickly and with little investment

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INFRASTRUCTURE INTELLIGENCE 2012

T

HE SOUTH AFRICAN Institution of Civil Engineering (SAICE) recently inaugurated its 110th president. The event, held in Ekurhuleni, was attended by various high-profile guests, including environmental professionals, champions of the infrastructure industry, government officials,

engineering clients from both the private and public sectors, as well as SAICE members.

Those in attendance showed great appreciation for Dr Martinvan Veelen’s address entitled ‘A Succession Plan for Civil Engineering in South Africa’. Van Veelen discussed issues pertaining to factors influencing a sustainable succession of relevant civil engineering skills and experience in government and other sectors. In his address he stated: “A growing economy depends on adequate and efficient infrastructure to support growth and to sustain it, and it is this growing economy that will provide the jobs and subsequent incomes to fund education, healthcare and the transformation of urban and rural spaces.

The expansion and improvement of infrastructure is also a very efficient way of creating jobs quickly and with little investment, while at the same time creating the conditions that are conducive to economic development.”

Civil engineering professionals are central to realising the set objectives of President Jacob Zuma’s State of the Nation Address and the Minister of Finance, Pravin Gordhan, indicated in his budget speech that billions are to be spent on infrastructure. Civil engineering is at the heart of infrastructure creation and service delivery in South Africa. Van Veelen continued by saying: “Public infrastructure spending is at a low compared to historical levels and South Africa has missed a generation of capital investment in roads, rail, ports, water supply and sanitation, electricity, public transportation and housing. In order to grow faster, South Africa needs increased capital spending in general and more public investment in particular.”

CIVILS OVERVIEW

National Development Plan A gathering of minds took place at SAICE House in April this year. Phiroshaw Camay chaired the meeting and introduced the panellists. They were Trueman Goba (National Planning Commissioner, executive chairman of Goba Consulting and president of SAICE in 2002), Malani Padayachee-Saman (founder and CEO of MPA) and Dr Ron Watermeyer (president of SAICE in 2004). All agreed that the National Development Plan (NDP) was an excellent document. The NDP identifies nine priority areas, five of which have direct bearing on civil engineering: • creating jobs and livelihoods • transforming society and uniting a nation • fighting corruption and enhancing accountability • transforming urban and rural spaces, and • expanding infrastructure.

Camay introduced the subject by highlighting a number of aspects of the NDP, namely that we are the champions of our own development, the theme of community involvement throughout the plan, the high priority of increasing employment, as well as the quality of education.

Padayachee-Saman’s view: PadayacheeSaman regretted the fact that the construction sector was not identified as one of the labour-absorbing industries, such as the manufacturing sector. The construction industry is capable of creating employment in a fairly short time. She emphasised that she is first and foremost a civil engineer who is passionate about her job; she is also an entrepreneur.

She explained that her success lay in making use of the potential of the ageing market. She had the wisdom to employ ageing engineers when she started her business and said the matching of young and older engineers is a managed process. Padayachee-Saman stated that the situation regarding capacity-related issues in the public sector, specifically local government, had worsened considerably over recent years.

Goba’s view: Goba explained that immediate action had to be taken regarding the basics – toilets, clinics and schools, for example – because if nothing is done about these issues within the next five years, the country will be in serious trouble. He further stated that in five

The NDP years’ time we should not even identifies nine be talking about corruption – it priority areas, five of which needs to be eradicated by then. have direct He reiterated that government bearing on civil is committed in this regard and, engineering as illustration, he mentioned the dissatisfaction of communities with the level or lack of service delivery, which sometimes results in violence. It is his view that government cannot help but be concerned.

Watermeyer’s view: Watermeyer started by saying that the country needs to eliminate

INFRASTRUCTURE INTELLIGENCE 2012

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With the billions now earmarked for infrastructure development, people with the skills to understand the process of infrastructure development and spending, need to be deployed in all tiers of government

poverty and reduce inequality by 2030.

He explained that failure to address the challenges is likely to result in economic decline, falling living standards, rising competition for resources and social

40

tension. He readout the definition of civil engineering by Herbert Hoover, who was president of the United States from 1929 to 1933: “There is the fascination of watching a figment of the imagination emerge through the aid of science to a plan on paper. Then it moves to realisation in stone or metal or energy.

Then it brings jobs and homes to men. Then

it elevates the standards of living and adds to the comforts of life. That is the engineer’s high privilege.”

Watermeyer identified the main challenges in the NDP as: • too few people who work • the standard of education for most black learners is of poor quality • inferior-quality infrastructure is poorly located, under-maintained and insufficient to foster higher growth • spatial patterns exclude the poor from the fruits of development • the economy is overly and unsustainably resource-intensive • a widespread disease burden is compounded by a failing public health system • public services are uneven and often of poor quality • corruption is widespread • South Africa remains a divided society.

Ageing, pale, male With the billions now earmarked for infrastructure development, people with the necessary

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CIVILS OVERVIEW

skills to understand the decision-making process of infrastructure development and spending, and the responsibility associated with this, need to be deployed in all tiers of government.

If the targets set out in the NDP are to be realised, these issues need to be addressed

He continues to say that South Africa is blessed with a highly competent and experienced corps of engineering practitioners.

It is one of the few countries on the African continent that does not need consultants from Europe or other countries to solve the challenges of a developing country.

“However, the centre of gravity of the accumulated wisdom lies in an ageing, predominantly white and male group of professionals. This is certainly not politically correct, but it is a fact. The country cannot afford to disregard this resource if the objectives of the NDP are to be achieved,” Van Veelan said. “I am one of those people. Here I am, please use me.”

South Africa has a limited window of opportunity of five to possibly 10 years to turn around the skills decline and transfer expertise as a matter of urgency. It is for this reason that SAICE is embarking upon meeting with the relevant departments and ministries.

Van Veelen stated: “Achieving the goals of the NDP relies heavily on the creation of infrastructure to support and stimulate economic growth. Planning for infrastructure development requires a capable government, which in turn implies experienced and knowledgeable engineering professionals who can plan how this infrastructure development should unfold, given the limited resources that are available.”

Engineering professionals In 2007, with the launch of her research publication Numbers & Needs in local government, Allyson Lawless, who was the president of SAICE in 2000, stated that: “South Africa has a limited window of opportunity of five

to possibly 10 years to turn around the skills decline and transfer expertise. This period relates to the fact that the majority of experienced civil engineering professionals are in their late fifties and older.

“South Africa must harness their expertise to transfer skills to the younger generation while they are still active, able and willing. Innovation and thinking out of the box will be required.”

With half of the maximum window period gone, can South Africa afford not to use these civil engineering professionals?

INFRASTRUCTURE INTELLIGENCE 2012

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Infrastructure’s past and the real current issues

“It is all ver y well to build infrastructure. The question is: how well are we currently managing and maintaining what we have created in a responsible and sustainable way?”

Jannie Pietersen, president of IMESA

Above: Beam placement at Atterbury

I

N HIS LATEST presidential address, Jannie Pietersen, president of the Institute of Municipal Engineers (IMESA), tackled the engineering issues at hand, looking back over the years and the legacies that South Africa has built. In the metros the average budget for capital infrastructure has now reached about R4 billion per annum. In his preparation for this speech, Pietersen looked back over past presidents’ addresses and noted with alarm that critical issues earmarked nearly half a century ago remain the same today. In 1963, two years after IMESA’s founding in its current form, then president, R Mitchell, stated: “For many years past government, local authorities and private enterprise have been faced with an acute shortage of engineers … I am convinced that the position is serious enough and of such a magnitude that the progress of South Africa is likely to be seriously retarded unless something is done to improve matters.” The extent to which this remains a problem today needs not be pointed out.

Legacy issues Quite clearly it is imperative to examine critically the state of municipal engineering both globally and in South Africa. South Africa has

much infrastructure, which is in poor repair due to little or no maintenance. In some cases it is broken beyond repair. In others: •Systems for adequate asset management are not yet in place.

•Service delivery by local authorities continues to be a major problem and protests over poor service delivery are becoming increasingly widespread.

•South Africa still suffers from a dire shortage of technical people and experienced municipal engineers, the very people needed to put matters back on track.

•Globally, the slowing down in economic growth has impacted negatively on employment levels and governments have called for workable job creation programmes.

Other important developments in 2010/11 have impacted on the role of municipal engineers in South Africa: • On the legislative front, Municipal Finance Management Act (MFMA) and Supply Chain Management Regulations have changed the relationship between municipal manager, treasurer and municipal engineer.

• Changes to the CIDB (Construction Industry Development Board), environmental and heritage requirements have been implemented.

INFRASTRUCTURE INTELLIGENCE 2012

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CIVILS & CONSTRUCTION

Boring or not, intelligent spending on infrastructure has the potential to kick-start the economy

• Increasing pressure from the environmental lobby has been brought to bear with regard to climate change.

• There are the challenges of population growth to meet.

• Rapid urbanisation has placed additional pressure on metropoles • The 2010 World Cup has left the country with a number of beautiful and inspiring stadiums that run the risk of becoming ‘white elephants’ if asset management plans are not put in place.

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INFRASTRUCTURE INTELLIGENCE 2012

“Having said all this, we must acknowledge, however, the pockets of excellence which still flourish and which were able to deliver new infrastructure and restore the old to make the 2010 World Cup the internationally acknowledged success that it was, and which give cause for optimism for the future,” Pietersen continues.

Where is South Africa placed for the future?

The three great engines of civilisation have been water, energy and transportation. In modern times, we can add to these the transfer of

information and the handling of our waste. To a large extent our profession is about the delivery or treatment of the infrastructure of road, rail, pipes, drains, cables, electrical grids and treatment plants.

The October 2011 issue of Time magazine offered two thought-provoking articles: one on the necessity for development and re-development of infrastructure, and another on sustainable water use for the planet, particularly in the light of climate change.

The first of the articles begins with the words: “Infrastructure is a boring word, spending has become a dirty word…”, but the thrust of these articles is that smarter, greener infrastructure is necessary for the sustainable management of assets – the more efficient use of resources like energy and water and better resolution of environmental problems. Boring or not, intelligent spending on infrastructure has the potential to kick-start the economy.

“What struck me most forcefully in the Time magazine article is that nearly all of the current and the future projects featured relate to work undertaken at municipal level by municipal engineers,” says Pietersen. “Internationally our profession is at the forefront of the battle for the sustainable use of the resources of this planet and the improvement of the lives of its people.”

Municipal engineers’ contribution IMESA’s task is to proclaim the organisation’s views loudly and clearly, to ensure that multi-disciplinary skills and the variety of skills

CIVILS & CONSTRUCTION

and services provided are utilised as they should be. “There are no simple answers,�

Pietersen continues. “But let us be optimistic and determined to be so successful that oth-

• Skills: More and better qualified managers are needed for key positions, and for these we need to look hard at sourcing and training candidates from disadvantaged backgrounds. • Political stability: Municipal engineers are the tools of their political masters, and instability at the political level very often interferes with the planning and decision-making processes necessary for proper service delivery. • Sound governance: This is the basis for the efficient functioning of any organisation, company or country and requires no further comment. • Financial stability: Financial stability and predictable revenue flows are necessary for credible and achievable medium- and longterm planning. In this respect, I believe that municipalities and metros are over-reliant on the Treasury for funding. • Freedom from corruption: Once our society is based on the needs of all, and not distorted by special interests and corruption, we will be able to truly flourish.

“By sustainability I mean the capacity to manage, maintain, upgrade and renew the infrastructure we create� ers are persuaded to follow our example. By sustainability I mean the capacity to manage, maintain, upgrade and renew the infrastructure we create.�

According to Pietersen, the pillars of sustainability are: • Morals and ethics: Decisions must be based on fair and just assessments of needs. • Asset management: An accurate audit and regular condition assessments of all municipal assets is critical, as is the assurance that all investments already made will be managed properly.

Pietersen has faith that IMESA can achieve its goals and set new ones as necessary. “It is the national interest which we serve, and in doing so we need to grasp the nettle of accurately defining that interest and positioning ourselves best to deliver services and infrastructure to advance our nation,� he adds. One major achievement has been to gain recognition by the national government of IMESA as a major role player in assisting them in achieving their priority goals.

INFRASTRUCTURE INTELLIGENCE 2012

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WASTE & ENVIRONMENT OVERVIEW

WATER OVERVIEW

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INFRASTRUCTURE INTELLIGENCE 2012

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WASTE & ENVIRONMENT

SOLID WASTE, HAZARDOUS WASTE AND RENEWABLE ENERGY

Where to for the waste industry?

Despite the fact that both the New Waste Act (Act 59 of 2008) and the new National Waste Management Strategy are now in place, there are still many waste management issues that need to be addressed before new laws and regulations can be enforced. by Candice Landie

W

ITH REGARD TO waste management, a few of the biggest challenges facing the 286 municipalities in South Africa include unlicensed landfill sites, lack of skilled personnel and illegal dumping of hazardous waste.

While municipalities are responsible for the collection and disposal of domestic waste (public sector), industrial and commercial waste (private sector) is generally handled by private waste management companies. This also includes hazardous waste. With regard to the public sector, although 61% of all South African households had access to kerbside domestic waste collection services since 2007, this access remains highly skewed in favour of more affluent and urban communities, with rural towns and villages still lacking in efficient waste management services. Funds are usually channelled into other service delivery areas deemed more important, such as housing, sanitation and healthcare. An average of

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INFRASTRUCTURE INTELLIGENCE 2012

9.38% of municipal budget is allocated toward waste management but since this falls into the agriculture and environmental category, a big portion of this budget is spent addressing other issues such as farming, irrigation and wildlife trafficking.

The Waste Act and the National Waste Management Strategy (NWMS) are fundamentally based on the waste hierarchy, which places emphasis on waste reduction, waste minimisation, and the reuse and recycling of waste. Thereafter, treatment of waste, waste to energy, and disposal are considered. National government has recognised that in respect of local government, there is a significant lack of capacity and expertise. To this end, they have initiated a number of interventions such as training at all levels and assisting with the financing of various initiatives. The Department of Environmental Affairs has been running an annual Waste Khoro for the past two years aimed at informing and educating municipalities specifically, to meet the requirements of the new legislation. The private sector is also gearing up for the implementation of the new standards and is in the process of developing capacity for the treatment of waste and other new waste management facilities for the commercial and industrial sector. In addition, the private sector (both generators of waste and waste management companies) will need to spend significant amounts of money on cleaner technology processes, waste treatment sites

WASTE & ENVIRONMENT

and waste to energy technologies; with a new hazardous waste treatment facility ringing in at around R75 million. This sector is also being held accountable for its products throughout the products’ life cycle, that is, cradle to grave responsibility.

Green economy Another big national government focus in relation to the NWMS is growing the contribution of the waste sector to the green economy. In the years 2010 and 2011 (combined), an approximate 69 000 new jobs were reported to have been created in the waste sector, with 2 600 additional SMEs and cooperatives participating in waste service delivery and recycling – a clear indication that the waste management industry is growing at a significant pace.

Finance Minister, Pravin Gordhan, announced in his budget speech that a carbon tax will be implemented in the next financial year (2013 to 2014). The proposal is to implement the carbon tax at a fairly low level, and then define an increasing price path over time; but it is still a major step for a developing country like South

Africa. South Africa’s annual carbon emissions were among the top 20 in the world, as the energy use predominantly comes from coal and four-fifths of carbon emissions are due to energy use and supply. The concepts surrounding renewable energy are expensive and fairly new to South Africa, so although proposed, these projects are yet to kick off. In 2013 when the carbon tax is expected to go into effect, the effective rate will be around US$6 (R48)

per tonne, rising by 10% 2 600 SMEs and cooperatives per year from 2013 – 2019. participate in waste Although a positive way service delivery and recycling forward to reduce carbon emissions, introduction of a carbon tax will clearly place added strain on the current staggering waste management market.

Renewable energy projects A lack of sufficient, reliable electricity INFRASTRUCTURE INTELLIGENCE 2012

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WASTE & ENVIRONMENT

generating capacity has been plaguing South Africa’s economy, while heavy reliance on coal to generate electricity has financially unaccounted-for environmental and heal th costs, and there are risks associated with coalfired power plants. As a developing country, South Africa is one of the biggest emitters of carbon dioxide (CO2) and greenhouse gases (GHGs) in both absolute and per-capita terms.

At the same time, high unemployment rates continue to be a chronic social and economic problem. South Africa is richly endowed when it comes to potential renewable energy resources. Government has come around to the view that encouraging and actively supporting a shift

Government has come around to the view that actively supporting a shift from fossil fuels to renewable energy resources can go a long way toward meeting economic and environmental challenges from fossil fuels to renewable energy resources can go a long way toward meeting its social, economic and environmental challenges.

South Africa is richly endowed with potential renewable energy resources. The government has come around to the view that encouraging and actively supporting a shift from fossil fuels to renewable energy resources can go a long way toward meeting its social, economic and environmental challenges. Encouragingly, that’s a viewpoint that developing economies around the world are coming round to, particularly as emerging market economies are the primary drivers underlying actual and forecast growing global fossil fuel demand. Government’s Integrated Energy and Integrated Resource Plans (IRP) lay out the overarching strategy for South Africa to start a transition to clean, renewable energy and address critical social,

economic and environmental problems.

The Renewable Energy Independent Power Producer (IPP) Programme is central to reaching South Africa’s renewable energy and IRP goals.

The government has set targets of producing 10 000 GW-hours of electricity from renewable energy sources by 2013, and installing 17.8 GW of renewable power capacity by 2030, less than 10% of its forecast total.

In addition to avoiding the CO2 and GHG emissions, land, water pollution and environmental degradation associated with using fossil fuels to generate electricity, Renewable Energy IPP Programme bids must meet mandatory local content provisions, which the government has included to motivate project developers to build renewable energy manufacturing facilities in the country. This, along with development and growth of downstream renewable energy

businesses, such as installation and service providers, as well as ancillary service providers, is expected to provide a significant boost to job creation. Valued at more than R28 billion, the 19 renewable energy project developments awarded on 21 May are expected to result in the creation of nearly 7 400 jobs. About R11.8 billion of the R28.06 billion in renewable energy project value is to be of local content.

Some 1 165.9 MW of Renewable Energy IPP Programme’s planned large-scale renewable energy project capacity remains unallocated. Breaking this out, 798.9 MW of a total 1 850 MW of onshore wind capacity, 256 MW of a total 1 450 MW of solar PV, and 60.7 MW out of 75 MW allocated for small hydro projects have yet to be awarded.

Source: IWMSA, cleantechnica.com

INFRASTRUCTURE INTELLIGENCE 2012

51

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WATER OVERVIEW

WATER AND SANITATION LONG-TERM GOALS

How long before the war on water hits SA?

According to Water and Environmental Affairs Minister, Edna Molewa, more than R570 billion will be needed to invest in South Africa’s water value chain over the next ten years – focusing on water infrastructure, water ser vices and water demand management.

F

OR NUMEROUS YEARS, environmental scientists have predicted a war on water. But for developing countries such as South Africa, the lack of readily available water resources has turned this reality into a current crisis, with approximately R162 billion needed to build water resources infrastructure in the country. The Department of Water Affairs (DWA) cites water as a necessity for growth and development in South Africa, yet the number of citizens who don’t have access to potable water is staggering.

In his 2012 presidential speech, president of the Water Institute of Southern Africa (WISA), Ronald M Brown, stated that the country has faced water and sanitation challenges for many years and the majority of those challenges still haunt us today. “We are constantly reminded by civil society, however, that what is missing are the solutions needed to overcome these challenges to prosper,” said Brown. “Just imagine South Africa flourishing in the water sector with every citizen having access to clean drinking

water, clean rivers, proper sanitation services and infrastructure, clean and pristine water resources, farmers utilising groundwater with confidence and each municipality in the country having Blue and Green Drop Certification. Just imagine this – it is achievable.”

With South Africa facing serious challenges such as municipalities owing R1.7 billion in water bills and the water scarcity that activists are predicting will hit the country, Brown’s positive attitude and belief that the situation can and will change, should be applauded.

“We know that we have our work cut out for us and that we need to address the issues with urgency because our nation depends on us, and when we rally to the cause we find that we can definitely, and in an impactful manner, turn the tide,” he continued.

Water scarcity According to the DWA’s Water for Growth Development Frameworks, water scarcity has already been identi-

INFRASTRUCTURE INTELLIGENCE 2012

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WATER OVERVIEW

fied in the coun try’s major urban centres.

These major urban areas anchor the country’s economy and the department realises that heavy investment is pivotal to avert serious water shortages that could have an adverse impact on South Africa’s economy. In addition to the traditional augmentation schemes, there are two major ways that water supplies can be improved, that is, the treatment of effluent and the desalination of sea water for productive use.

A key principle behind assuring local water supplies is that water supply should be as close to the end-user as possible, avoiding the unnecessary intensification of costs associated with transportation of the water. Service backlogs, which are predominant in KwaZuluNatal, Eastern Cape, Limpopo and the North West provinces, are prioritised and addressed through a combination of short-term interventions such as rainwater harvesting, exploring further options of supply communities from available sources. Ultimately, a balance needs to be struck between large and small-scale infrastructure projects. Where a community can

be serviced by existing large-scale infrastructure, this should happen with immediate effect.

Where a community cannot be serviced by a large-scale infrastructure project due to the cost of such an intervention (for example, pumping water to mountain top communities at higher altitudes), then small-scale schemes must be planned and implemented. Where large-scale infrastructure could solve local

The DWA reported that although water supply is imperative, the focus on water conservation and water demand management must be strengthened water scarcity, the necessary planning and resourcing must be undertaken and interim measures introduced to compensate for the long lead-times.

The DWA also reported that although water supply is imperative, the focus on water conservation and water demand management must be strengthened. A major source of water loss is ageing infrastructure exacerbated by poor operations and maintenance at municipal level,

and analysis shows that this state of affairs is a multi-faceted problem including a lack of managerial and technical skills and funding.

The department has committed to strengthening its efforts to support this sector in a bid to reverse the situation.

It will also prioritise schemes in areas with resource development potential that coincide with areas with high service backlogs. It will also support sector plans where water use for

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INFRASTRUCTURE INTELLIGENCE 2012

W t ast n e eW “Clean water for future generations” ater Treatm by; Partnering with nature Creating an awareness Sustaining a legacy

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When you can see the whole facility, you’ll see the savings Our combined security, SCADA, and power monitoring solution yields the highest efficiency

The difference an energy management solution makes

Energy is a major part of water’s price and, of course, your facility’s operating costs. In addition, energy is the single largest contributor to the carbon footprint of the water process. Fortunately, Schneider Electric™ has the solution to manage and optimise your energy in line with your process obligations — and to reduce your carbon footprint.

Our comprehensive approach to energy management, along with combined power and process services, can yield an energy cost reduction of up to 30 per cent of your existing installation. And with visibility across your entire water network, you’ll be able to optimise the management of your process, reducing and avoiding energy waste in real time.

Flexible software, reliable services make upgrading easy When you partner with Schneider Electric all along the life cycle of your facility, you’ll gain access to our expertise as a world leader in electrical distribution, motor control, and process automation.

Improve productivity and safety at once

Presenting EcoStruxure™, a solutions approach to the energy needs of the water industry that combines advanced power management with a proven automation control system to improve your energy efficiency and help yield a holistically optimised plant.

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We encourage you to directly involve our experts and engineers by inviting them to conduct a thorough on-site audit and diagnosis of your facility, allowing them to propose informed solutions for improvement.

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©2012 Schneider Electric. All Rights Reserved. Schneider Electric, Make the most of your energy, and EcoStruxure are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are the property of their respective owners. Schneider Electric South Africa – 1 River View Office Park, Janadel Avenue, Halfway Gardens, Midrand, South Africa. Registered Name: Schneider Electric South Africa (Pty) Ltd Registration Number: 1971/002841/07 • 998-2574_ZA_B

WATER OVERVIEW

growth purposes can simultaneously support water use for development purposes.

Cross border water sources In an interview conducted at the World Water Forum 2012, minister Molewa stated that South Africa’s capacity was higher for water than sanitation. However, she said that sanitation will be highlighted and lifted up to be given capacity and adequate funding to accomplish the Millennium Development Goals (MDG) target for sanitation by 2015. The Millennium Development Goals are a world brand. They clearly articulate what must be done with issues of poverty, health, and the environment.

If South Africa is experiencing a water resources shortage, then perhaps looking at cross border solutions would be beneficial. When it came to trans-boundary waters and management, the minister’s response was clear: “We believe that trans-boundary management of water is doable.”

Molewa said that South Africa has examples of best management practices collaborating with Lesotho to transfer water from Lesotho to South Africa and then to Namibia and Botswana, which ends into the Orange and Vaal Rivers. “These are shared rivers,” she explained in the interview.“ Consequently, the water does reach the downstream nations.

It is worth emulating the mechanism of having a commission between the two countries that is at high level such as ministerial level, which works on a protocol of an agreement for both cabinets and also having a technical and project management team. As an established body, the commission reports to the heads of states meeting in the region. The Limpopo River between South Africa and Zimbabwe is also worth emulating in an amicable way as ‘sharing’ is emphasised. We should be able to share water as a continent because water knows no boundaries and it is a God-given gift to all humanity.”

Ultimately, water must be placed at the heart of all planning decisions in the country to ensure that any decisions that rely on the steady supply of water, both in quantitative and qualitative terms, adequately factor in water availability.

Water can only support growth and development in the country without compromising the ecological sustainability of the resource if it is at the nucleus of planning and decision-making, which includes sectoral planning. The reality is that as a country we can no longer afford water losses and it is imperative that the focus on water conservation and water demand measures be strengthened, especially as there is a greater

return on investment through water loss control and water use efficiency.

A key challenge to sustained and health water supplies, as identified by the DWA, is the poor maintenance of wastewater treatment works (WWTW). Recommendations from the department include the structuring of the Municipal Infrastructure Grant so that it is

used for the purposes of WWTW rehabilitation and construction.

According to Brown, it is time everyone in the water sector formed partnerships and address issues of responsibility and accountability, adding that WISA is prepared to take the first step on the path towards sustainability.

Source: WISA, World Water Forum 2012, DWA

INFRASTRUCTURE INTELLIGENCE 2012

57

WATER ANALYSIS

BLUE AND GREEN DRO O P REPORTING

WHO is advocating the implementation of water safety planning across the world, in both the developed and developing countries. The Blue Drop Repor t is reason why South Africa is widely regarded as one of the countries where this concept is taking root fast.

Innovative safeguarding of tap and wastewater

T

HE BLUE AND GREEN Drop certification programmes are flagship innovations of the Water Affairs Department. In 2008, as a water sector regulator, the department introduced this incentive-based regulation system to improve municipal drinking water quality and wastewater management.

The 2012 Blue Drop Report is the fourth report and it is remarkable to note the impact

and restoring public confidence in the quality of South Africa’s tap water. This report is prompted by the desire to be transparent and ensure that credible information is communicated.

This is also the reason why the Department of Water Affairs (DWA) strives to get municipalities to implement incident management protocols and by so doing become more risk averse in their commitment to safe-guard public health in a precautionary manner. The risk management principle became increasingly prominent since the inception of the Blue Drop certification programme, with water safety planning as the key performance factor.

Overall, Blue Drop Certification means that the water is safe to drink having complied with national standards throughout the reporting period, scored 95% on adherence to Blue Drop Requirements, and complied excellently with SABS 241. Assessments are conducted by a panel consisting of a qualified drinking water quality professional as

The overall national drinking water compliance figure is recorded at 98.93% this programme has had on the water sector over the past four years. The positive impression made on the municipal fraternity is evident of the passion and commitment rekindled within those responsible for drinking water quality management. These attributes were found to be the key to reshaping the sector

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INFRASTRUCTURE INTELLIGENCE 2012

59

WATER ANALYSIS

the lead inspector, two to four inspectors (assessors) and a learner assessor who also coordinates the logistical arrangements of the assessments. The team selection is done based on the outcomes of a Blue Drop Examination, which tests the assessor’s knowledge and competence in the subject field. Virtual assessments were done in cases where municipalities uploaded their Portfolio of Evidence (or parts of) onto the Blue Drop System.

Drinking water quality management This repor t provides information on the Drinking Water Quality Management performance of all South African water services authorities for the period of January to December 2011.

The department followed a process of conducting consultative audits at all water services authorities (municipalities) and water boards to assess drinking water quality operations and management performance in line with the set Blue Drop Requirements. This was followed by reporting shortcomings to these institutions after which all had an opportunity to appeal findings at the provincial confirmation sessions.

The Drinking Water Quality Management Report provides performance of all South African municipalities and the report for the period January to December 2011 indicates significant improvements which serve as evidence of the positive impact this incentivebased regulation approach has on the local water sector. The first Blue Drop report in 2009 indicated that the national microbiological compliance for South African tap water was measured at 93.3% against the National Standard (SANS 241).

This increased to 97.3% in the 2012 reporting cycle in spite of a significant increase in data sets being available on analysis done on tap water by various laboratories. The overall national drinking water compliance figure is recorded at 98.93% (based upon microbiological, chemical, physical and organoleptic data).

The Department of Cooperative Governance amended institutional authorisation for some district municipalities in the Gauteng, Northern Cape, Eastern Cape and Western Cape provinces. This led to a reduction in the number of water services authorities and also affected the number of water supply systems assessed during this assessment year. This has an impact on the number of assessments done as can be seen in table 1.

An interesting point to observe would be that

Table 1 BLUE DROP ASSESSMENT ANALYSIS (NATIONAL) CATEGORY

2009

2010

2011

2012

Number of municipalities audited

107

153

162

153

Number of water systems audited

402

787

914

931

Number of Blue Drop Awards

25

38

66

98

51.4

67.2

72.9

87.6

National Blue Drop score %

even though provinces like Mpumalanga and Northern Cape would record (microbiological) compliance figures much higher than Eastern Cape, their Blue Drop performances are lower than the latter.

This can be ascribed to the finding that the Blue Drop programmes set requirements for risk management, which stipulates that monitoring programmes much be risk informed.

It can therefore be accepted that most of Eastern Cape municipal drinking water quality programmes are more aligned to the risk-based models as set by the national regulatory programme.

Water safety planning is a fundamental component of the Blue Drop Certification programme. This implies that water supply systems without risk management processes,

TREND

as prescribed by water safety planning principles, will not qualify for recognition from this incentive-based regulation initiative.

Significant progress can be reported on this WHO programme.

In preparation for the 2010 FIFA World Cup, South Africa commenced with water safety

The department followed a process of conducting consultative audits at all municipalities and water boards to assess drinking water quality operations and management performance planning processes for the supply systems of the nine host cities. In 2011 it was reported that 154 systems had water safety plans in place while it was found during the 2012 audits that there are 579 water supply systems where there are water safety planning in

INFRASTRUCTURE INTELLIGENCE 2012

61

WATER ANALYSIS

place of which 269 were found to be complying well with international standards. The next graph portrays the status of water safety planning in the various provinces.

Municipality ratings According to the report from water minister Edna Molewa, the number of municipalities awarded Blue Drop status has increased to 98% – an impressive 50% increase from the 2011 results. Ekurhuleni Municipality topped the charts with a 98.95% status, followed by City of Johannesburg in close second place with a score of 98.92% and Mogale City Local Municipality ringing in at number three with 98.79%. Following on from the top three winners are as follows: • eThekwini: 98.77% • Tlokwe Local Municipality: 98.45% • City of Cape Town: 98.14% • Bitou Local Municipality: 97.74% • Witzenberg Local Municipality: 97.63% • Randfontein Local Municipality: 97.54%

Ekurhuleni Municipality topped the charts with a 98.95% status, followed by City of Johannesburg in close second place 62

INFRASTRUCTURE INTELLIGENCE 2012

• George Local Municipality: 97.41% Despite the impressive results presented above, the Blue Drop report also red-flagged 14 municipalities, issuing a warning to residents of small rural towns in these areas to not drink untreated tap water.

Green Drop reporting The Green Drop report measures the per formance of wastewater treatment works with the 2011 report based on an assessment process conducted by a team of some 70 assessors from August 2010. This team was made up of trained individuals who not only assessed the per formance but also ensured that regulator y advice was given to municipal wastewater management on required improvements.

The main objective of this regulation approach is to create a target for wastewater management excellence, which has been set at a 90% Green Drop score measured against stringent criteria. However the challenges remain present in South African wastewater management. The following should be noted:

WATER ANALYSIS

The number of systems that scored more than 50% increased from 216 in 2009 to 460 in 2011. It should also be noted that the number of systems increased from 449 assessed in 2009 to 821 in 2011. This is an increase of 83% in the number of systems assessed and it is an improvement and provides for a more accurate baseline of information from which sustainable improvement should be facilitated.

The number of systems awarded with Green Drop certification therefore rose from 33 to 40. This increase is despite the fact that 20 of the previous recipients of the Green Drop certificates lost their certification status.

However, the DWA is encouraged by the fact that 26 systems were being awarded the Green Drop status in 2011 for the first time.

The average percentage deviation toward maximum cumulative risk rating for the country increased from 66.8% to 69.2%.

This is an indication that local government capacity building is still required to ensure sustainable improvement.

Table 2

2012 NATIONAL BLUE DROP PERFORMANCE LOG TOP 20 MUNICIPALITIES

Water Services Authority

Province

2012 National Log Position

Blue Drop Score 2012

2011 National Log Position

Blue Drop Score 2011

Ekurhuleni Metro

GP

1

98.95

4

97.44

City of Johannesburg

GP

2

98.92

1

97.69

Mogale City LM

GP

3

98.79

8

96.19

eThekweni Metro

KZN

4

98.77

13

95.71

Tlokwe LM

NW

5

98.45

5

96.87

City of Cape Town

WC

6

98.14

2

97.61

Bitou LM

WC

7

97.74

9

96.12

Witzenberg LM

WC

8

97.63

3

97.56

Randfontein LM

GP

9

97.54

17

95.24

George LM

WC

10

97.41

7

96.26

Steve Tshwete LM

MP

11

97.35

6

96.51

Overstrand LM

WC

12

96.82

24

90.56

Emfuleni LM

GP

13

96.80

10

95.75

Newcastle LM

KZN

14

96.50

53

75.61

Drakenstein LM

WC

15

96.29

12

95.72

City of Tshwane

GP

16

95.76

25

90.41

Mossel Bay LM

WC

17

95.68

16

95.27

Stellenbosch LM

WC

18

95.56

11

95.74

Source: 2012 Blue Drop Report, Infrastructure News,

Saldanha Bay LM

WC

19

95.40

31

87.69

2011 Green Drop Report

Msundusi LM

KZN

20

95.38

14

95.60

The top ten Green Drop Performers for 2011 are: • Tlokwe Local Municipality • Bitou Local Municipality • eThekwini Metro • George Local Municipality • City of Johannesburg • Witzenburg Local Municipality • Beaufort West Local Municipality • Mossel Bay Local Municipality • Overstrand Local Municipality • City of Cape Town The next Green Drop Awards will be held in 2013.

INFRASTRUCTURE INTELLIGENCE 2012

63

The Water Sector needs you - Join WISA today!

Think water, think WISA! The Water Institute of Southern Africa (WISA) is a voluntary non-profit association compromising water-sector professionals, companies, government departments, educational & research institutions, other associations, municipalities and water utilities as members.

WISA’s mission: “Building expertise, sharing knowledge & improving quality of life” by providing platforms for the promotion, integration and application of scientific, engineering & management knowledge in the water-cycle through its newsletters, magazines, workshops, conferences and websites.

It has 6 regional branches and 13 Technical Divisions.

WISA members enjoy many benefits centred on capacitybuilding and knowledge-sharing including UÊ The prestige of membership of a professional organisation where members have to satisfy strict entrance criteria UÊ Networking at WISA events with our peers and colleagues

from the water sector UÊ Free copies of the two-monthly WISA Magazine “Water & Sanitation Africa” UÊ Monthly WISA members newsletter containing international and local news, conferences and events, job vacancies, research items etc.

UÊ Listing the annual WISA Directory which is an essential handbook for the water sector UÊ The opportunity to attend Branch & Divisional Meetings, Conferences, Study Tours & Workshops UÊ Attendance at National and Specialist Conferences and Exhibitions at discounted rates In promoting its aims within the water sector, WISA maintains two websites viz www.wisa.org.za (institutional) and www.ewisa.co.za (knowledge), which are freely available to WISA members as well as members of the public

If you are active within the water sector you are invited to become part of this dynamic association by applying for WISA membership - please download application forms from www.wisa.org.za or contact the WISA National Office at 011 805 3537 Opportunities also exist for advertising in the WISA Publications and Website as follows: UÊ For advertising in Water & Sanitation Africa - the successful WISA bi-monthly technical magazine please contact Ave Delport at 3S Media on: (011) 467-6224 or 083-302-1342 UÊ For advertising in eWISA - the successful WISA capacity-building & knowledge-sharing website, please contact Wilma Grebe on: (021) 887-7161 or email: wgrebe@wamsys.co.za

Contact Person: Ms Dot Zandberg, Ti Ê \Ê䣣ÊnäxÊÎxÎÇÊUÊ >ÝÊ \Ê䣣ÊΣxÊ£ÓxnÊUÊi-Mail: conference@wisa.org°â>ÊUÊ7ebsites: www.wisa.org.za www.ewisa.co.za

ROCK SOLID PERFORMERS The New Generation 9 Terex® Articulated Truck Range The new range of Terex articulated trucks boasts hauling capacities from 25 tonnes to 38 tonnes. With our TA250, TA300 and TA400, we’ve got the right product for every application. Designed to increase your productivity and profitability, our new range of articulated trucks are powered by Scania® engines, which are renowned for high uptime and reliability, proven fuel efficiency, and ease of maintenance, underpinned by an excellent worldwide service network.

What this means for you: Improved fuel efficient engine with up to 12% less fuel consumption* Enhanced productivity thanks to increased horsepower and torque High capacity cooling system providing excellent performance in all climates, from arctic to desert conditions Fully independent front suspension as standard on TA300 providing outstanding ride and operator comfort Fully tilting cab and electronic assisted hood raise for ease of access to service points and reduced downtime * Compared to Tier 3 TA300 in back to back testing.

Call +27 11 977 8300 for more info or visit our new website: www.terexconstruction.com

Gauteng +27 11 977 8300

Kathu +27 53 723 2944

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North West +27 14 538 0443

INTELLIGENT EQUIPMENT

INFRASTRUCTURE INTELLIGENCE 2012

65

INTELLIGENT EQUIPMENT

The next generation of construction equipment There’s a new truck range on the market that is dedicated to reducing downtime, increasing productivity and reducing fuel consumption.

H

EAVY EQUIPMENT SUPPLIER Eqstra Construction Equipment, through its Terex distribution agreement, launched a Generation 9 range of Terex articulated dump trucks (ADTs) in June, which have been engineered to endure the toughest applications around the world. The new ADTs are powered by Scania engines, which are renowned for high uptime.

Comparative testing of the new Generation 9 Tier 4i TA300 against the previous model, the Tier 3 TA300, demonstrates that the new range is not only more productive, but is also more fuel efficient. “Compared with the Terex Generation 7 range, the new machines are more productive and extremely fuel efficient,” says Eqstra Construction Equipment technical training manager, Martin Arthur. “They offer as much as a 12% reduction in overall fuel consumption.”

Increased productivity and comfort Dedicated to reducing downtime, the ser vice points on the ADTs are designed for quick and easy access. The electronically assisted hood raise and the fully tilting cab simplify access to major components and ground

level ser vice points, which further reduces downtime. In addition to reduced downtime, lower cost of ownership is a key feature of the new haulers.

All models in the new range benefit from oilcooled, multiple-disc brakes on each axle, which provide extended brake component life, reduce ser vice inter vals and operating costs, and improve overall braking per formance compared to traditional dr y-disc brake systems that are fitted as standard on other leading manufacturers’ trucks.

The new cab is developed with the operator in mind to improve comfort, efficiency and productivity. The ergonomic cab has reduced interior noise levels, has more effective air conditioning, a high-quality sound system and even a new steering wheel and mirror arrangement. Interior aesthetics have also been updated to anthracite grey with a matte finish to reduce glare and improve durability.

The smallest truck in the range boasts a hauling capacity of 15.5 m3 and is powered by an impressive 232 kW (311 hp) engine,

making the TA250 ideally suited for construction projects in the 25 t class market. With a 276 kW (370 hp) engine, the TA300 is a power ful truck suited for projects in the 30 t

Compared with the Terex Generation 7 range, the new machines are more productive and extremely fuel efficient class market. Another great feature of the updated TA300 is the fully independent front suspension, which is fitted as standard.

This design greatly reduces operator fatigue and increases machine stability, enabling these machines to excel in rough terrain environments. The new range of articulated trucks is designed to keep productivity levels high, fuel consumption low and cycle times short. In short, there is the right ADT for ever y application.

INFRASTRUCTURE INTELLIGENCE 2012

67

Savings in the long run with AMT

Selected F-Series models available with AMT. AMT is currently available in selected N-Series models.

For AMT model information: Call 08600 47898 (ISUZU) or visit www.isuzutrucks.co.za

909431ME

Because we know your operation relies on efficiency, Isuzu Trucks brings you Automated Manual Transmission, a South African mediumsized trucks industry first. Smoother AMT, as we like to call it, is a unique clutch-less manual transmission, controlled by an electronic shifting mechanism.

This means it’s always in the right gear at the right time, depending on the road and load, while also retaining the performance and durability of a normal manual transmission. More importantly, there’s no clutch, so you’ll save thousands by reducing maintenance and downtime, keeping your operation running like a well-oiled machine.

INTELLIGENT EQUIPMENT

I

N 2009 ISUZU Truck South Africa was the first OEM (original equipment manufacturer) to introduce the automated manual transmission (AMT) to the South African market in the MCV (medium commercial vehicle) segment. This was introduced on selected N-Series MCV models. To date this has been a great success with many fleets now standardising on these models with AMT. The resulting sales speak for themselves, in models where the AMT and manual option are both available, 50% of these models are sold with the AMT option.

How it works On a smoother AMT model, the driver does not use a clutch pedal when pulling away, changing gears or stopping; only the gearshift lever, accelerator pedal and brake pedal are used.

This innovation saves operators thousands of rand each year. Based on a manual transmission, technologies such as wet-type multiple disc clutch and fluid coupling have been introduced to achieve an easy-drive system suitable

for commercial vehicles at a low price.

In addition, use of an electromagnetic solenoid valve-type gear shift unit enables both computer-controlled automatic transmission and manual transmission. This feature allows the driver to drive the truck in the automated mode or in the manual mode without having to operate the clutch, thus eliminating the risk of abuse.

The F-series This industry first from Isuzu Truck will soon to be available in the F-series range, which will give the fleet owner the same advantages and benefits that have been experienced with the N-Series range over the past few years. Over the course of a truck’s life, especially in South Africa’s high traffic inner city delivery applications, the clutch may need to be replaced between 5 and 8 times, model dependent. This comes at a substantial cost, which is not an issue with the AMT model. With the AMT, the transmission is manual but the shifting mechanism that changes the gears

is electronically controlled. There is no driver operated clutch, which takes away the risk of any driver abuse.

The F-Series AMT has a 6-speed transmission, with features such as hillside assist for pull off on a steep gradient when the truck is

On a smoother AMT model, the driver does not use a clutch pedal when pulling away, changing gears or stopping at full GVM. Also available is the FSR 750 AMT Crew Cab, which seats seven passengers and is ideal for applications that require crew to accompany the load.

The AMT is available in the N-Series and F-Series in the following model derivatives – NPR 300, NPR 400, NPR 400 Crew Cab and NQR 500, FSR 750 Crew Cab, FSR 800 and FTR 850. To add to this model line-up, the AMT option will be introduced on the FRR 500 in the third quarter of 2012.

Automated versus manual mode – you decide Automate manual transmission on a truck equals reduced wear and tear on the clutch, resulting in reduced savings on maintenance.

Isuzu FX_part of the F-series range

INFRASTRUCTURE INTELLIGENCE 2012

69

Komatsu… a heritage of success

At Komatsu our vision has resulted in a proud heritage of technological success, and we are continuously evolving to meet the needs of our customers. Our unique and advanced equipment provides our customers in South Africa and world-wide w i t h i nnovati on and ex ceptional value. We u n d e rst a n d t h e c h a l l e n g e s o u r c u s tomers encounter in their business; that is why our construction, surface mining, utility and process equipment is designed to meet the highest productivity, safety and environmental standards.

Komatsu – for the best in: • • •

Earthmoving and surface mining equipment Utility equipment Process equipment

uppe marketing A06849/LGS

Komatsu – Unique and unrivalled.

Komatsu Southern Africa (Pty) Ltd, cnr Diesel and Isando Roads, Isando.

Tel: 011 923 1000 | Fax: 011 923 1111 Customer Care Line: 0860 566 2878

www.komatsu.co.za

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TG400A grinding material from a local land clearing operation

Environmental equipment for the professional Vermeer is recognised as a leader in, among others, the environmental sector, where it’s rugged and dependable products and accessories are preferred by tree care contractors, grinding experts and landscaping professionals.

• Stump cutters: The cutters offer enhanced features, such as the AutoSweep, gear-drive cutter-wheel system and cutter-wheel guard – all patented. The equipment has proven reliable in the field on almost every type of hardwood stump.

• Brush chippers: These incorporate the patented AutoFeed II and the patented SmartFeed systems, which are designed to increase productivity. By automatically monitoring and regulating chipper feed rates so that the machine operates at peak engine horsepower, these systems also free the operator from manual feed control and offer years of rugged, dependable service.

• Grinders: Tub grinders and horizontal grinders feature the patented Duplex Drum Rotor System, which increases productivity and reduces service downtime over ‘conventional’ pin-and-plate rotor assemblies.

The horizontal grinders are available in various configurations and also suit large land clearing and brush/wood waste processing operations.

Trailer-mounted units can be towed behind dump trucks, while the self-propelled track grinders are easy to manoeuvre and can work on rough and uneven job sites.

Full specifications are available on www.vermeer.co.za

72

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