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Infrastructure Funding, sharing and construction

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SA’s energy supply to double by 2030

IN FOCUS Eskom is a critical and strategic contributor to government’s goal of ensuring security of electricity supply to the country as well as economic growth and prosperity.” Brian Molefe CEO, Eskom November 2015

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Managing urban pressure

Nuclear energy

A viable solution for South Africa?

Yearbook

Energy

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IN FOCUS Eskom is a critica l and strategic contr of ensuring secur ibutor to gover nment’s goal ity of electricity supply to the count economic growt ry as well as h and prosperity.” Brian Molefe CEO, Eskom November 2 015

WATER & ENERGY

Editor’s letter

FINANCE & FUNDING MODELS 4

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Funding, sharing e and construction

CONTENTS 3

& E N E R G Y Yea

Infrastructur

INFRAS T RUCTURE

&ENERGY

LE AD I N

INFRASTR G UCTURE

Water and Sanitatio n Services South Africa (Pty) Ltd (WS specialised provider SA) is a of sustainable wate r services in Sout hern Africa

25 Eskom Ingula pumped storage scheme 34 Navigating SA's water-energy nexus

The future of funding African infrastructure

SA'S ENERGY SITUATION

CITIES 8 Managing to meet future demands 11 ICT – Complex simplicity

40 South Africa's energy supply 42 South Africa's energy situation looks to natural gas 44 Eskom Interview with CEO Brian Molefe CEO 46 Trans-Africa Projects Partner Package

SHARED INFRASTRUCTURE 15 Government and mining towards shared growth 18 NHBRC Assuring quality homes

CONSTRUCTION 21 The alternative approach to construction

SUSTAINABLE ENERGY 48 The future of renewable energy in South Africa 51 Kentz A Strategic union of two firms 52 Hysa Leading the way for renewable energy 55 Arup Load-shedding and price protection 57 Parker Wind energy is the way of the future

NUCLEAR ENERGY 59 Going nuclear in South Africa

SUSTAINABLE ENERGY

WATER INFRASTRUCTURE

NUCLEAR ENERGY

READ INSIDE Avin Maharaj, senior project manager of Eskom, explains how the recently completed Ingula Pumped Storage Scheme is an example of excellence in engineering that takes into consideration both the environment as well as the communities it affects. P25

CITIES

NATURAL GAS

SHARED INFRASTRUCTURE

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

E D I TO R ' S L E T T E R

Africa’s new economy

Publisher Elizabeth Shorten Associate Publishers & Editors Martin Hiller,

Nicholas McDiarmid

Journalists Liesl Frankson, Beatrix Knopjes,

Frances Ringwood Head of Design Beren Bauermeister Contributors Jonathan Cawood, Nicola Theunissen Chief Sub-Editor Tristan Snijders Sub-Editor Morgan Carter

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Antois-Leigh Botma

Production Coordinator Jacqueline Modise Marketing & Digital Manager

Philip Rosenberg

Financial Manager Andrew Lobban Administration Tonya Hebenton Distribution Manager Nomsa Masina Distribution Coordinator Asha Pursotham

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THE INFRASTRUCTURE OF INFRASTRUCTURE If this is to be realised, project roll-outs need to be fast and, with regulatory compliance cited as one of the clear causes of lag, the recent pronouncements from National Treasury and the Auditor General offer welcome signs of short- and medium-term acceleration. The levers being used to achieve this include the revision of the procurement regulations, highly targeted project development from government departments and agencies (such as Public Works, Human Settlements and the DBSA), and a vision for the private sector that goes far beyond the provision of goods and services. These revisions have been some time coming, but the fact that the political will exists to enact them is a strong indicator for the sector.

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ATIONAL INFRASTRUCTURE development is increasingly viewed as sub-Saharan Africa’s priority growth point, replacing mineral resources as the new frontier of opportunity. Instead of focusing on the opportunities infrastructure can unlock, the mechanisms and infrastructure of its own development are under the spotlight. In South Africa, the construction industry, as a whole, has seen some decline, with some of the major construction companies posting significant losses, but the positive indicators for most of them lie in the public sector project pipeline. This bolsters the most recent viewpoint of the National Treasury, which indicated that, despite the lags and the electricity crisis, the National Development Plan is strong enough, and well-conceived enough, to see South Africa return to the five per cent per annum growth last experienced in 2007.

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URBAN AFRICA The well-worn images of rural Africa that are brought to mind when discussing development couldn’t be more misleading. The statistics show an overwhelming population flow to urban centres, and the pressure on cities requires urgent attention. Urbanisation is a challenge, but also presents interesting opportunities. For example, densification solves some of the biggest problems for water planners. The right kinds of volumes allow for specialised water reuse systems: grey water systems and urban

ecological systems (wetlands inside cities) can become part of wastewater treatment. This effective use of water, however, will require the careful prevention and monitoring of leaks – thus, proper maintenance trumps conservation. Smart technology allows us to live in a more sustainable and environmentally friendly manner because it facilitates the effective use of resources through energy efficiency, and water and waste management. However, technology alone is not enough. A smart city requires a paradigm shift. Instead of municipal services operating in silos, technology allows for integration and sharing of services. Urban development cannot get all the attention; the role of secondary cities and rural areas in a thriving economy is critical. Apart from relieving the pressure on the major cities, the attraction of business and industry leads to economic and environmental diversity. In the 2015/16 financial year, government will proceed to invest R5.95 billion through the Public Transport Network Grant in 12 identified cities. We expect Ekurhuleni to be the third metro in Gauteng to launch these pilot services. In keeping with advancement of intelligent transport systems, we will continue working closely with the Gauteng Provincial Government, the three metros, Prasa, the Gautrain Management Agency and the taxi industry to integrate all subsidised modes of payment in the province into a single interoperable smart card by the end of the 2016/17 financial year. This is the kind planning we want more of.

PRIORITIES AND FUNDAMENTALS Getting the complex public sector system on track requires short-term interventions and long-term solutions. The electricity supply crisis in South Africa is very much a case of highly trained and competent individuals working within regulatory boundaries that are no longer applicable to a country in deep development. Equally, the projects we now see coming through are clear indicators that we have the necessary skills and resources. Leading Infrastructure & Energy Yearbook brings together interdependent areas of development and the people who build, use and pay for them. In infrastructure, everything and everyone is equal.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

FINANCE & FUNDING MODELS

future OF FUNDING African infrastructure THE

PwC Africa’s capital-project funding survey’s findings are an indispensable roadmap to some complex and varying markets. BY JONATHAN CAWOOD, DIRECTOR: CAPITAL PROJECTS & INFRASTRUCTURE LEADER, PWC AFRICA

HIS SURVEY HAS provided unique insights into the world of infrastructure delivery across countries, regions, and development corridors in sub-Saharan Africa. The participants were spread fairly evenly across the eastern, western, and southern regions of sub-Saharan Africa, with 18% operating across multiple regions. About half of the respondents were owners playing multiple roles, including those of financier and operator, while the rest represented stateowned enterprises. Our survey results indicate an opportunity-filled future for infrastructure development in subSaharan Africa. Infrastructure spend in the region is estimated to reach $180 billion per annum by 2025. Sectors with the highest budget allocations are transport (36%) and energy (30%). At this rate, the region will maintain its 2% share of the global infrastructure market. To attract all-important external funding, it will take a concerted effort by governments, private businesses and NGOs to overcome such nagging problems as political risk, regulatory and legal uncertainties, and the shortage of critical skills. Our research findings highlight the crucial gap in financing for mega infrastructure developments and the need to find innovative ways to ‘unlock’ the funding process.

THE BIG PICTURE The good news is that foreign companies have already demonstrated their appetite to invest in Africa. In PwC’s 17th Global CEO Survey released in January 2014, many CEOs confirmed their

focus on Africa as a growth market, with many expecting high growth rates and above-average profitability on the continent. An important finding of the survey is the need for better planning, procurement, project management, and controls. This will help reduce the number of delays and the size of cost overruns, providing an example to other project owners and investors that African infrastructure can truly be developed efficiently and profitably. The shallow economic recovery in most developed markets has shifted the focus to faster-growing markets. This is also true for the infrastructure development sector. While the largest infrastructure spend will take place in Asia, led by China, the expected growth in infrastructure spend in sub-Saharan Africa is significant, at around 10% per annum to 2025. With an abundance of natural resources and recent mineral, oil, and gas discoveries, demographic, social, and political shifts, and a more investor-friendly environment, the investor spotlight shines brightly on Africa. Some of our key findings include: • More than half of respondents indicated that their planned spending on infrastructure, both on new projects and the refurbishment of assets, would increase by more than 25% from the previous year. They said much of their spending would be focused on new developments, with 51% of all respondents planning to spend more than half of their budgets on new assets.

4 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

• Respondents from West Africa were especially bullish, with 58% planning an increase of more than 25% in spending, followed by those in East Africa (53%) and Southern Africa (40%). • All regions are expected to be major beneficiaries of infrastructural development, with 44% of respondents indicating they would be targeting their capital project and infrastructure spending in East Africa over the next 12 months. Next is West Africa (25%), followed by Southern Africa (22%). • Respondents indicated that they would be increasing their focus on power, oil and gas, and transportation and logistics, while remaining constant in the water sector. • Almost 90% of respondents said their capital projects had delivered the expected benefits to stakeholders all or most of the time over the past 12 months. • Access to funding emerged as the top challenge in delivering large, complex infrastructure projects. It was named as a key challenge by almost half of respondents, followed by the policy and regulatory environment and political risk/impact of political interference, which were cited by about a third of respondents. • Funding availability was a concern across all regions, but respondents in Southern Africa were more concerned about a lack of skills, internal capacity to handle major capital projects, and political risk.

FINANCE & FUNDING MODELS

• Nearly all respondents said they consider external private sector financing vitally important for capital projects in Africa. • The lack of skills and external contractors across the infrastructure value chain in Africa were cited by respondents as challenging factors and among the primary reasons for quality problems, while funding issues were cited as a main reason for delays in project delivery. • Project delays and cost overruns were significant problems in the past year, with nearly half of respondents reporting delays of more than six months and more than a third saying projects went 10% to 50% over budget. • Most respondents said their projects had experienced few, if any, quality problems or variations from original specifications, but about a third did encounter such problems in some or most cases. • Respondents said progress reporting was done on a consistent basis to all stakeholders and more than three-quarters had a defined infrastructure master plan. However, only 21% completed independent reviews of their projects for quality, risks, Figure 1 and financial performance at key decision points.

HARNESSING THE PRIVATE SECTOR

necessary investment to support economic expansion. China is a major funding source for Survey respondents ranked funding availability infrastructure in many African countries. Based as one of their top three challenges and on an ‘infrastructure for oil’ trade agreement, agreed that private sector spending would be China has made significant strides in changing the crucial, given the limitations on government Angolan infrastructure landscape through the financing. Nearly two-thirds of respondents construction of large railway, road, and housing said external private sector financing for projects in areas like Kilamba Kiaxi in Luanda. capital projects is critical, while 30% indicated it In return, Angola became China’s main supplier was of growing importance. of oil, overtaking Saudi Arabia in 2010. China will Alternative funding from sovereign source continue to be a key investor in Angola as one of funds and pension funds is becoming its biggest trading partners. Thanks to its large increasingly important in Africa, but investors oil reserves, Angola has the financial resources necessary to begin addressing structural issues and to rebuild the country’s shattered infrastructure, expand the economy, and modernise and better connect its cities. Similar deals are evident in other African countries.Defining a clear source of revenue through user payments or other sources for some projects, particularly those of a social nature such as hospitals and schools, is often difficult and a prerequisite for project financing. Weak infrastructure planning at the macro country level, characterised by limited capacity to identify technically feasible and economically viable Real GDP growth (%) programmes and projects, remains among the greatest challenges to securing private funding. Many AFRICA’S INFRASTRUCTURE countries lack the capacity and skills to OUTLOOK prepare project feasibilities and take There is widespread recognition projects through to procurement. of the vast business opportunities A lack of transparency and sound in Africa as a growing consumer governance practices, coupled with market and future skills and protracted procurement processes, innovation pool, as well as its reduces investor appetite. abundance of natural resources. Few African countries have a viable, Speaking of Africa as a structured public-private partnership homogeneous collective does (PPP) programme that supports both not provide an accurate picture, a structured process and a wellFigure 2 Planned increases in annual infrastructure spend across Africa’s though – there are vast country and regulated system. This is necessary seven main economies regional differences. For example, to provide more certainty and reduce South Africa’s overall transport risks for long-term investors. are typically more interested in projects that are infrastructure scores as well as India’s and CHANGING FUNDING MODELS fully operational and shy away from greenfield better than Indonesia’s. In fact, when it comes Funding models are gradually changing in Africa projects and their construction risks. to roads, ports, and air transport infrastructure, and respondents expect new approaches such Private sector investment is especially critical South Africa scores higher than China, although as PPPs to become more prevalent. in some African nations. For example, one of China has a clear edge in rail. In tandem with More respondents in Southern Africa the world’s poorest nations, Mozambique, is the robust real GDP growth experienced than other regions expect projects to be attracting substantial investment interest from across most sub-Saharan countries, national fully funded internally or through a mix of foreign players such as Italy’s ENI, the USA’s governments are increasing their investments government funding and government bonds. Anadarko, Brazil’s Vale, Thailand’s Italian-Thai, and in infrastructure. According to PwC’s recent Respondents in East and West Africa are India’s Jindal Steel, as a result of numerous bigInfrastructure Spend Review, portfolios will counting more on a mix of private sector increase at an annual average of 10% through to ticket projects in the pipeline. This investment is and government funding or private sector crucial for Mozambique’s economic development, 2025, exceeding $180 billion per annum by the debt and equity. since the government is unable to fund the end of this period.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

FINANCE & FUNDING MODELS

Figure 5 General government gross debt (as percentage of GDP)

Question: How important is external private sector financing for capital projects in Africa? Figure 3 The importance of private sector funding

Question: How do you expect your infrastructure project to be funded over the next year? Figure 4 Methods of funding in the short term

Support for different financing models also varied by sector. Traditional procurement models were favoured mainly by respondents from national governments, water, and mining organisations. The key criteria for successful partnership models include strong political support, a committed sponsor, a sound regulatory framework, a viable off-taker or source of service fees, support from users of the service, the sensible, logical allocation of risk, and market interest and capacity. PPP units have been established in a number of African countries, such as South Africa, Nigeria, Senegal, and Kenya. These units are at different levels of maturity, but are moving towards standardisation and the adoption of leading practices. The Nigerian government has also been advocating the

Question: How do you expect your infrastructure projects to be funded in the next year? Figure 6 Source of funding

Debt burdens are lower as a proportion of GDP in most African economies than in developed and even middle-income countries. Hence, governments would be expected to have greater room to borrow to fund infrastructure investment. However, with a lower tax-take relative to GDP (generally 15% to 20% across Africa, compared to 25% in Argentina, 35% in Brazil, and even higher in Europe), as well as poorer credit ratings and track records than mature countries, financial market perceptions of sustainable debt loads in African economies tend to be much lower. When combined with sizeable fiscal deficits, this undermines government resources for investment in many countries.

increasing use of PPPs for several transport projects. Governance and management will need to be well managed, though, as many of Nigeria’s projects have been left unfinished, including roads, factories, and oil and gas plants. According to BMI’s Infrastructure Project Finance Ratings, which assess the risks in raising and repaying funding over the life cycle of a project, Western Europe and North America remain the most conducive destinations for PPPs. This is due to greater access to financing, the well-established regulatory environment, and the limited political and structural risks in these markets. In South Africa, some of the larger stateowned companies have made progress in issuing bonds to raise capital. For example, Transnet announced in August 2013 it had

Question: Which of the following procurement models do you believe will be used more frequently in delivering your capital projects? Figure 7 Procurement models

raised R1.5 billion, using a five-year bond through its Domestic Medium Term Note Programme. Loan guarantees provided by multilateral agreements are another initiative being undertaken to assist the region to access finance for infrastructure megaprojects. The intent of these guarantees is to encourage financiers to invest in infrastructure on the continent by reducing certain risk components inherent in the investment decisions. Most recently, the African Development Bank set up the Africa50 project finance platform to provide bridging finance, direct loans, and loan guarantees as a means to support projects to move beyond the finance procurement stage, where many become stuck. To further support infrastructure development in sub-Saharan Africa, the African Development Bank and EU launched the Infrastructure Investment Programme for South Africa (IIPSA) in 2014. The intention of this R1.5 billion fund is to provide alternative and innovative financing to organisations that are undertaking infrastructure development projects in South Africa or projects that cross two or more borders of SADC member countries. Figure 8 Average project finance rating by region

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

CITIES

to MEET future demands MANAGING

Rapid urbanisation requires infrastructure development implemented with unprecedented foresight – long-term thinking that sees not five or even fifty years ahead, but into the next century.

ITHIN LESS than a generation, the percentage of the South African population living in urban areas will rise from 63% to 80%,” reports the SA Cities Network. “Urbanisation is not simply about people moving to cities and financing the infrastructure that is needed; urbanisation also incorporates the ability of people to move around and work in cities, raising their individual productivity in the process. It is about the concentration and enablement of human potential. Sustainable growth is about creating cities that provide quality of life and longevity for everyone.” It is also about ensuring sustainability and efficiency through infrastructure asset management. A holistic approach is imperative, starting with the planning and conceptualisation of assets, ensuring the most efficient choices are made.

EFFECTIVE MANAGEMENT OF RESOURCES A growing urban population’s survival depends heavily on the effective use of resources. “Water and sanitation are global challenges. Water scarcity has been rated as one of the top five issues in the world – the Global Risks 2014 report ranks the imminent water crisis as the foremost global risk,” reports the SA Cities Network. Managing resources does not just mean using fewer

8 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

resources; it is a process whereby they are used more effectively and with less wastage. One of the ways this can be done is through utilising natural processes, such as wetlands inside cities, to assist in water treatment. Densely populated areas counter-intuitively lend themselves to effective resource management. This effective use of water, however, will require the careful prevention and monitoring of leaks and, thus, proper maintenance trumps conservation.

URBAN MANAGEMENT Urban management, as defined by the City of Johannesburg, involves “coordinating and integrating public and private activities to tackle major problems the residents of a region face – with the aim of building a more competitive, equitable, and sustainable city.” City planning and management are outlined and planned in accordance with the goals of policies such as: the Growth and Development Strategy (GDS), the Integrated Development Plan (IDP), and the Spatial Development Framework (SDF) – regional spatial development frameworks and regional urban management plans. Areas that are in decline or require better service delivery, or need special attention due to legacy issues, are identified within these policies. “Urban managers focus on urban management in specific

CITIES

OPPOSITE PAGE Sunrise over Johannesburg BELOW Central Cape Town

areas within each region, depending on what is highlighted in the regional urban management plans,” says the City of Johannesburg. Public participation is important in city development and management. The needs of a community must be fully understood. The individual regions have to play an important role in building relationships, in building the image of the city through improving communication with residents, and in improving residents' access to local government.

URBAN REGENERATION IN JOHANNESBURG

their location and importance. The JDA manages and facilitates these developments with “efficiency and innovation, to build an equitable, sustainable, and resilient city. “The COF initiative speaks to the past in terms of freedom from the apartheid legacy, but also to the future; a future of a lower cost of living, less reliance on energy and private transportation, and a more sustainable economic freedom,” says Sharon Lewis, executive manager: Planning and Strategy, JDA. The Johannesburg CBD has benefited from both private investment and government initiatives and, rather than disintegrating, the area is thriving.

URBAN REGENERATION IN CAPE TOWN The City of Cape Town’s Mayoral Urban Regeneration Programme (MURP) was

introduced in 2012, according to a report issued by the city. MURP has resulted in a number of practical improvements to some of Cape Town’s poorer communities. “The programme aims to improve the safety, quality of life, and the socioeconomic situation of previously neglected areas. A particular focus is on the public/ shared environment,” states the report. According to Cape Town executive mayor Patricia de Lille, in a press release issued by the city, the rationale for the programme is to maintain public facilities and infrastructure, in partnership with communities, in order to stabilise areas. It also aims to provide a platform for public and private investment. These investments are incorporated into negotiated community action plans. Area coordinating teams are set up to achieve these. “With these mechanisms in place, the city is confident that we can stop urban decay in the selected areas and create vibrant public spaces in which businesses and ordinary residents can access economic opportunities in relative safety. It is important to stress that all improvements made in these areas are the result of extensive community input. This limits the prospects for vandalism and helps to ensure that communities feel they have ownership over the public facilities provided,” says De Lille. The areas included in this project are: • Manenberg, Hanover Park, Lotus Park • Nyanga/Gugulethu • Bishop Lavis, Valhalla Park, Bonteheuwel • Harare and Kuyasa interchange precinct

The City of Johannesburg has put substantial resources into turning around the CBD, according to a release issued by the city. Crime rates are down, owing to intensive policing; occupancy rates are up, thanks to a combination of quality properties and low rents; investment is increasing, as confidence improves; and cleanliness has returned. The Johannesburg Development Agency (JDA) plays a critical role in the city’s GDS and supports development by targeting certain areas – the so-called Corridors of Freedom (COF) – that have been identified as primarily beneficial for development. These areas typically centre around important transportation hubs and are chosen to be nodes of urban development, due to

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

CITIES

"The city will continue to prioritise the MURP in order to ensure that we make these areas the safe, productive, clean, and vibrant parts of Cape Town that they deserve to be," De Lille says.

SECONDARY CITIES

• Bellville transport interchange precinct and Voortrekker Road corridor • Wesfleur business node (Atlantis) • Athlone CBD and Gatesville • Ocean View • Mitchells Plain Town Centre • Macassar. Similarly to the development areas targeted in the City of Johannesburg, these areas were chosen because they “redress the spatial and economic exclusion of the past, and also because they are mini CBDs close to transport corridors, which helps stimulate growth and development. "In the majority of areas, it is clear that the MURP is bringing about real and practical improvements. In turn, these improvements have served to stabilise these areas and this will, in time, help to attract private investment and, in so doing, help drive muchneeded job creation.

The SA Cities Network highlights the importance of distinguishing between primary and secondary cities. The definition of a secondary city depends on criteria such as population and economic size. “To address the concept of a ‘secondary’ or ‘intermediary’ city, it is important for a city to understand its characteristics, its shape, and its profiles, in order to better plan for development and anticipate rapid urbanisation,” says the SA Cities Network. “All development activity occurs in space. People settle in particular places. The production and consumption of goods and services occur there. Houses are built, infrastructure is developed, and governments set up local offices to manage the activity that occurs in these spaces. Different areas attract different levels of attention. This is the very basis from which cities form. Over time, economic and social activity has become concentrated in particular spaces – that, in turn, attracts more people, firms, and investment. These spaces are the urban centres within a country, and they are made up of a number of different cities and towns.“

10 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

LEFT Satellite image of city lights in Africa showing the lack of modern development on the continent ABOVE The Durban skyline

By distinguishing between primary and secondary cities, governments are better able to focus their resources. Secondary cities support primary cities and, if developed efficiently, can ease the pressure of rapid urbanisation in primary cities, which puts additional strain on resources. According to the SA Cities Network, secondary cities are seen as important for two principal reasons: • They were seen as alternative urban centres for people to live and work in, relieving pressure off the country's primate cities. This was especially important in national contexts where a country's urbanisation process had resulted in very skewed development, with almost all demographic and economic activity occurring in just one city. • It was believed that secondary cities could play an important catalysing role in their surrounding region, especially their rural hinterlands. Nurturing secondary cities is necessary to meet these objectives. As such, many governments have policies that guide the development of these areas. Secondary cities are where the most population and economic growth is happening, and, as such, they require attention that understands and exploits this.

I N F O R M AT I O N & C O M M U N I C AT I O N T E C H N O LO GY

ICT

Information and

Complex simplicity

communications technology (ICT) is a term referring to all technology that allows devices or applications to communicate with each other. BY BEATRIX KNOPJES

ECHNOLOGY, CORRECTLY implemented, has the potential to vastly

improve the quality of life of urban citizens, while ensuring effective and efficient resource management. Technology allows citizens to interact with services in new and more convenient ways, such as purchasing tickets for public transport or paying utility bills online. The convenience extends to public sector services being able to free up resources and interconnect their services in a seamless way, as well. As we become more dependent on technology, access to it will become increasingly important. While, the possibilities are endless, some services are more noticeably affected than others – namely emergency services and utility metering, such as water and electricity. Smart metering allows for more accurate billing and offers a means of monitoring energy and water consumption to prevent load-shedding. Leaks and illegal connections can also be detected. ABOVE China is building a huge eco-city where no one will need to drive

SMART CITIES SMART TECHNOLOGY allows us to live in a more sustainable and environmentally friendly manner because it facilitates the effective use of resources through energy efficiency, and water and waste management. However, technology alone is not enough – a smart city requires a paradigm shift. Instead of municipal services operating in silos,

technology allows for the integration and sharing of services. A holistic approach that takes advantage of the technology and provides real solutions to modern problems is needed. The role of consultants who understand this potential and are able to advise municipalities on the best methods of integration is vital to ensuring that technology does not become redundant.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

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I N F O R M AT I O N & C O M M U N I C AT I O N T E C H N O LO GY SMART CITY PLANNING According to a paper issued by Echer Group entitled: ‘Five ITC essentials for Smart Cities’, ITC is changing the evolution of cities. “The Internet is changing the traditional urban planning model and compelling planners must consider not only the physical planning of a city but also the use of information technology to make the economy, environment, mobility, and governance of a city more efficient and effective,” says the report. It suggests that there are five key components for making a city ‘smart’.

DEPLOYMENT OF BROADBAND NETWORKS

Broadband connectivity, and access to it, is the life blood of a smart city. According to the paper, “This plan for easy access to broadband should include a broadband infrastructure that combines cable, optical fibre, and wireless networks. This will offer

maximum connectivity and bandwidth to citizens and organisations located in the city. The latest broadband service is fibre-optic, which is the fastest Internet connection available.”

SMART DEVICES AND AGENTS

Smart devices, sensors, and actuators that are capable of offering real-time data management, alerts, and information processing will allow cities to monitor and better anticipate patterns of movement. This is essential for controlling public transport and resource consumption, which helps to conserve resources.

DEVELOPING SMART URBAN SPACES

The report suggests that developing smart urban spaces, “by connecting the embedded systems, sensors, and smart devices located across the city together to form a cohesive and integrated ICT infrastructure for the city, is the third essential step along the way to smarter cities. Smart urban spaces are areas of a city that leverage ICT to deliver more efficient and sustainable services and infrastructure within that specific area.”

DEVELOPING WEB-BASED APPLICATIONS The availability of ICT infrastructure allows for the development of new services and

applications by various types of users. This also allows for the gathering of a more realistic assessment of users’ perspectives by conducting acceptability tests directly on the infrastructures already in place and functioning in the smart city.

OPENING UP GOVERNMENT DATA

Open government data (OGD) initiatives and, in particular, the development of OGD portals are hotly debated topics focusing on the public’s right to information. However, according to the paper, the advantages of this kind of available data are that it improves government accountability, transparency, responsiveness, and democratic control. It promotes the self-empowerment, social participation, and engagement of citizens; fosters innovation, efficiency, and effectiveness in government services; and creates value for the wider economy.

SMART METERS It’s often taken for granted that smart metering will contribute towards sustainable resource use. Resources that smart meters are capable of measuring include water, energy, gas, and electricity. Having the ability to provide accurate data and consumption levels at specific times enables the rate of resource use to be better managed and tracked. LEFT An advanced metering infrastructure smart meter monitors energy consumption BELOW An artist’s impression of the city of the future

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

I N F O R M AT I O N & C O M M U N I C AT I O N T E C H N O LO GY

Drones can be used for aerial surveillance of cities in an integrated smart city

User interfaces and displays are an important concept for smart metering, because the idea is that, when a water or electricity user is capable of seeing their consumption and can monitor it on a regular basis, there is an automatic incentive to begin managing the use of that resource, whether motivated by the need to cut down on overheads or due to environmental concern. Smart metering solutions are not only useful in municipal environments, but have also been demonstrated to have significant positive impacts on private sector initiatives the world over. Business management systems that incorporate the regular management of electricity and water use, in settings such as retail centres and housing developments, consistently yield a return on the initial investment and offset capital outlay – while also contributing towards national water and electricity management imperatives.

THE SOUTH AFRICAN CONTEXT Hand in hand with this is a requirement for collaboration between government and the private sector, and the need to incorporate innovative ways to fund socio-political development objectives to achieve economic transformation in South Africa. The private sector, having the necessary technology and process skills, needs to work with government to achieve a long-term sustainable vision for the South African economy. In addition, cities and municipalities need to stop working in isolated silos. By sharing processes and lessons learned to permeate success across the country, they create interconnected systems that can then add value to all citizens of South Africa.

SAFE CITIES According to a report issued by the United Nations, in July 2014, the urban population of the world has grown rapidly from 746 million in 1950 to 3.9 billion in 2014. Asia, despite its lower level of urbanisation, is home to 53% of the world’s urban population, followed by Europe with 14%, and Latin America and the Caribbean with 13%. According to Rose Moyo, spokesperson for Huawei Enterprises, “ICT plays an integral role in society, by creating a stable and secure environment, as it enables the provision of services that are key for the protection of people and assets. It ensures a more effective and efficient way of addressing large numbers of public safety issues – both natural and manmade. These include technological, radiological, or environmental threats. ICT has become integral in ensuring safety, as users need to collect, analyse, distribute, store, and share information among various entities and different contexts (voice, video, and data) to allow for efficient communication and collaboration between emergency response teams.” Change is inevitable, as new services bring about new technologies; therefore, the industry has become more service-driven. However, there is a constant need to ensure backwards compatibility, interoperability, and smooth migrations to the next level (new technologies) to ensure investment protection. Standardisation will play a key role in enabling this integration. “As big data becomes more prevalent, we will start to see more intelligent communication from machines to systems, organisations, and, of course, people. This intelligence brings with it real-time accessibility to large quantities of data, which allows for greater awareness, shorter reaction times, automated responses, and better-informed decision-making. Imagine the automated dispatch of emergency services when an intelligent surveillance video camera is able to determine or ‘sense’ that a person is in danger. Aided by 5G, this will open up a plethora of converged services that have, to date, only been imagined; such possibilities will definitely become reality,” explains Moyo.

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OCIAL AND ENVIRONMENTAL sustainability drivers are requesting closer collaboration with stakeholders – mostly government and communities – to coordinate shared industrial and mining infrastructure in a way that fosters economic growth in Africa. “Companies in the mining industry are being forced to change the way they do business, in order to redefine growth and ensure future success in an environment posing many challenges that are impacting their success and relationship with stakeholders,” states a PwC capability statement titled ‘PwC in Africa Mining’. The vision of creating shared infrastructure investment for the communal good of South African citizens does not come without challenges. A few key elements are vital to bring this vision to fruition: trust, close partnerships with stakeholders, and a willingness to meet each other halfway. Mines, communities, and African governments can work together in a respectful, constructive way to reach an end goal they all aspire to: wealth creation and economic balance. Former Anglo American executive director Khanyisile Kweyama’s speech at the 2014 Mining Indaba reiterated the critical value of mining to create shared wealth in South Africa. She emphasised that the mining sector’s quest to “build shared growth with and for our myriad of stakeholders” needs to be one of its greatest focus areas for mines to stay in business.

GOVERNMENT and MINING

Towards shared growth

GUARDING ITS REPUTATION Unfortunately, the South African mining sector has witnessed significant challenges over the past 10 years – from severe labour issues, leading to violent strikes, to a cost base confronted with lower grades, labour shortages, and increasing input costs. The South African mining industry did not capitalise on the commodities boom of the early 2000s and faced major constraints as world markets plummeted. Conversations with industry role players often suggest their concern with the mining sector being used as a scapegoat for socio-political and economic problems in South Africa. It is true that the South African mining industry – dating back to colonial times – has witnessed several lowlights. But, the flip side of the coin is the sector’s invaluable contribution to stimulate the national economy, create jobs, and build peripheral infrastructure like roads, clinics, schools, and water treatment facilities. Despite challenges, this has often been the case in the past.

Mining companies of the 21st century have entered into a new operational paradigm. Several factors are giving rise to a need for mines to rethink the way they do business, and invest in the economic growth of the country in which they operate. BY NICOLA THEUNISSEN

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Most likely, the mining sector has some introspection to do as to why certain stakeholders still hold negative views about its ability to contribute to shared infrastructure and wealth creation. “Given our contribution, why is it that so many do not trust our industry? We continually feel under siege because the positive and essential contribution that we bring is not fully recognised,” says Kweyama. “We have to do better, far better, in eliminating the things we do that damage our reputation. But, we also need to do far better at ensuring all our stakeholders – and society as a whole – realise the relevance of what we do and the positive contribution we make. “We have a positive story. We need this story to be told. And not only by us. Crucially, we need independent thinkers outside the industry to tell the story,” Kweyama continues. There are several good stories to be told but, from an infrastructure legacy perspective, one of the most valuable stories concerns how mines and municipalities (or governments as a whole) are working together to provide infrastructure that benefits not only their own operations, but also the local communities.

SOLID PARTNERSHIP NECESSARY Kweyama points out that the quality of engagement between the industry and government is a positive feature of mining in South Africa. “Invariably, we find mutually satisfactory solutions to seemingly intractable problems,” she says. “Throughout the world, we at Anglo American are determined to play our role by demonstrating to our host governments and communities that we are a worthy partner. We know that our success as a company requires better relationships with communities, changing long and widely held perceptions that mines overpromise and underdeliver,” Kweyama says. “We understand the desire of governments, particularly governments of developing countries, to use their natural resource base as a platform for development beyond primary industry.”

“Throughout the world, we at Anglo American are determined to play our role by demonstrating to our host governments and communities that we are a worthy partner. ” According to Kweyama, what the country needs most is a partnership that works together to establish alternative ways of achieving goals. An excellent starting point for that partnership, she points out, is the National Development Plan (NDP). She further reiterates that the mining sector will play a key role in the implementation of the NDP. A government summary document of the NDP admits that, over the past decade, domestic mining has failed to match the global growth trend in mineral exports due to poor infrastructure, alongside regulatory and policy frameworks that hinder investment. To eradicate this, the South African government adopted a National Infrastructure Plan in 2012, which intends to transform its economic landscape – while simultaneously creating significant numbers of new jobs – and strengthen the delivery of basic services. In a synopsis of the South African National Infrastructure Plan, it

MINING CATALYSING ECONOMIC GROWTH “ONE OF THE WORLD’S best-kept secrets is that, while our sector disturbs less than 1% of the Earth’s surface, we contribute more than 40% towards its economic activity,” says Kweyama. “The work we do is an indispensable part of the world economy from another angle too. It is estimated that mining directly represents around 11% of the world’s economic activity.” In conclusion, there is a major opportunity for governments to leverage mining-related infrastructure for regional economic development and for mines and municipalities to partner to create shared benefits and win-win solutions.

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summarises a number of strategic integrated projects (SIPs) that integrate more than 150 individual infrastructure plans into a coherent package. The Presidential Infrastructure Coordinating Commission (PICC) – the body established to integrate and coordinate longterm infrastructure investment – identified 18 SIPs. “Mining companies are traditionally located in less developed areas. A redirected, focused expenditure by government into such areas, where there are direct mining opportunities, will support the industry to develop. It is critical that alternative economies are created, like, for example, the solar energy industry in the Northern Cape,” says Wickus Botha, leader: Africa Mining and Metals at EY. According to Botha, the industry is under major cost pressure, which can be alleviated if government and the mining sector take hands in the provision of infrastructure, such as railway support. “We need to work together to create towns with sustainable communities. For that, we need focused investment by government or public-private partnerships (PPPs) – it is not only government’s responsibility. In areas such as the Waterberg coalfields, the North West platinum belt, and the Northern Cape, there are opportunities for collaboration to create shared value for communities,” says Botha.

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to small and micro farmers, a review of mining industry commitments to social investment, and tourism investments. In this regard, the mining sector and government need to integrate and coordinate social investment with communities – matching government spend on infrastructure with that of mining companies’ SLP commitments and communities’ needs.

AN AFRICAN PERSPECTIVE

The South African National Infrastructure Plan people of South Africa, tying in with the vision of reiterates that such focused investment in the NDP. infrastructure will be the case through some “If one looks at sustainability, my view is that of the SIPs. “With access to water, electricity, there is a great opportunity to capitalise on the and transport logistics, the SIPs will unlock next wave of the upturn of the sector globally. mining development But, we need to in the Limpopo, North be very decisive West, and Northern at the moment. Cape provinces,” the First, we have to plan indicates. deal with the way The SIPs will also in which we engage support industrial and operate with Khanyisile Kweyama, former Anglo the people in the development around Hotazel in the Northern sector,” says Botha. American executive director Cape, where a mine and It is critical sinter plant plans to develop a ferromanganese for mining companies in Africa to invest in smelter complex at Coega in the Eastern Cape. infrastructure development to win the support Transnet is planning to increase the current of the local population and to mitigate political rail and port handling capacity from 5.5 Mtpa risk. In the case of counties such as South Africa, to 16 Mtpa, as part of their current market mines cannot obtain a mining licence without a demand strategy. detailed social labour plan (SLP), which provides Transnet has also completed the upgrade them with a licence to operate. to the iron ore rail line between Sishen in the “Today, all of us are only too keenly aware of Northern Cape and Saldanha in the Western the pressures that concerned communities and Cape to 60 Mtpa, with future expansion plans labour unrest can exert on the mining sector – to 82 Mtpa. It is increasing the iron ore handling and what that means for our social licence to facility at Saldanha, which will be complemented operate. I have no doubt that, increasingly, it will by measures to improve greater local steel and be the companies that get things right in their downstream production. approach to sustainability that will create the most value, and be the most successful,” SOCIAL SPIN-OFFS FOR COMMUNITIES says Kweyama. From a long-term wealth creation perspective, The NDP makes reference to an inclusive rural the most important factor is the positive impact economy through improved infrastructure and these infrastructure investments will have on the service delivery, a review of land tenure, service

“Invariably, we find mutually satisfactory solutions to seemingly intractable problems.”

The need for infrastructure development to make mining operations viable, including railways, ports, power capacity, water infrastructure, and information and communication technology, is particularly relevant in remote African mining locations. “Investment in capital projects is a catalyst for growth and a necessity in the current mining industry, with expansion into Africa on many mining companies’ agendas. Building infrastructure, however, is usually a complex, multiyear process of managing many diverse inputs and stakeholders. It requires intense planning and project management, and ongoing effective operation once built. Managing variables, quality, time frames, and budgets is challenging, and the anticipated benefits and quality are easily eroded when delays and budget overruns occur,” states the PwC report. Despite the challenges, there are several African examples where mines have taken on the endeavour of infrastructure investment – either through PPPs or by themselves. “African countries are endowed with vast natural resources, in general, and mineral wealth, in particular. Regrettably, most of the resourcerich countries in Africa face chronic shortages of financial capital, appropriate and advanced technologies, and the skills acumen to extract and beneficiate their resources,” states a policy brief entitled ‘Public-Private Partnerships (PPPs) and Sustainable Natural Resources Exploitation in Africa’. According to the brief, embracing PPPs in the exploration and mining of natural resources has huge, overarching economic benefits. The brief uses a case study on diamond mining in Chiadzwa, an extensive field of alluvial diamonds in the Marange district in Zimbabwe. According to the policy brief, African governments need to realise the benefits of partnering with the private sector in the exploitation and processing of natural resources. “Consequently, they should formulate, facilitate, and implement appropriate policies that promote joint ventures with the private sector. The private sector is technically equipped and financially resourced; it can stimulate innovation and improve productivity, wealth creation, and distribution,” the brief concludes.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

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ASSURING

quality HOMES

The National Home Builders Registration Council (NHBRC) is a statutory body THE MANDATE OF THE NHBRC Chapter 1 of the Housing Consumers Protection Measures Act No. 95 charged with providing protection of 1998, as amended, prescribes the mandate of the National Home Builders Registration Council. The Act states the objectives of the in terms the Housing Consumer council as follows: Measures Act. Its mandate is to provide • to establish and promote ethical and technical standards in the home building industry protection for housing consumers • to improve structural quality in the interest of housing consumers and the home building industry against defined defects and to • to promote housing consumer rights and to provide housing consumer information regulate the home building • to communicate with and assist home builders to register in terms of this act industry. • to assist home builders, through training and inspection, to achieve and maintain satisfactory technical standards of home building • to regulate insurers contemplated in Section 23(9)(a) • to achieve the stated objectives of this section in the subsidy housing sector.

NHBRC PRODUCTS AND SERVICES In order to fulfil its mission, the NHBRC is structured to provide a variety of valuable final products and services. These are: • enrolment of new homes • home builder registration • home building inspections • rectification and forensic engineering investigations • home builder training and development

• home building dispute resolution • litigation and legal advisory services • geotechnical and materials engineering.

ENROLMENT OF NEW HOMES New home builds need to be enrolled with the NHBRC before construction commences. With the enrolment of a home comes the necessary engineering input from competent persons that assist the home builder to take the

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necessary precautions in structural design, to ensure that the home build is sound. An enrolment certificate is issued to all enrolled homes. When a house is enrolled, the NHBRC will conduct a minimum of four inspections on the home and deal with complaints and noncompliance during construction. The enrolled home will be covered by the NHBRC warranty scheme on major structural defects, from the day of occupation, for five years.

HOME BUILDER TRAINING AND DEVELOPMENT The NHBRC provides training and skills development to builders to build skills capacity. This entails developing and managing systems and processes for the delivery of training and developmental activities to emerging home builders. It assists home builders, through training and inspection, to achieve and maintain satisfactory technical standards of home building.

HOME BUILDER REGISTRATION

CUSTOMER SERVICE CENTRES

Every home builder who is engaged in the process of building a home or selling a home should be registered with the NHBRC. Home builders undergo an assessment test to ensure that they meet the requirements. They are also furnished with a registration certificate to show that they are included in the database of the NHBRC.

To increase its visibility and service excellence to customers, the NHBRC has established customer service centres in all nine provinces. Activities range from registration of home builders, enrolment of new homes, and inspection of homes, to handling of complaints and conciliation of unresolved complaints. Service points in municipalities are also being set up to establish and improve the accessibility of the NHBRC.

HOME BUILDING INSPECTIONS Inspection services are provided to registered builders with enrolled projects/homes to assist them in building homes with structural integrity, resulting in low levels of housing consumer complaints.

SUBSIDY HOUSING At the onset, the mandate of the NHBRC did not cover the low-cost housing (subsidy)

sector. In February 2002, the Minister of Housing announced that the NHBRC Warranty Scheme will apply in the housing subsidy sector. In the subsidy sector, the NHBRC has initiated remedial works of housing subsidy failures. The organisation enrols new housing builds, conducts the geotechnical, civil and structural assessments required, inspects the builds and materials used and, through its builder training programmes, empowers builders in respect of product and technical knowledge.

ALTERNATIVE HOMEBUILDING TECHNOLOGIES The NHBRC has a vision to create a society living in secure, comfortable, and decent homes. The NHBRC has been advocating the use of alternative technology in the home building industry with the aim of providing quick-toerect, quality, and affordable products that would aid in eradicating the housing backlog in the country. The Eric Molobi Housing Innovation Hub was launched, in 2007, with the objective of identifying and supporting innovative housing systems developed nationally and internationally, and which would provide a wider choice of quality and affordable homes to the housing consumer.

t +27 (0)11 317 0000 0800 200 824 (SA only) www.nhbrc.org.za

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 â€˘

PROFILE

Model software

solutions

Model Maker Systems is a proudly South African company providing advanced software to surveyors, contractors, and engineers.

ODEL MAKER SYSTEMS is committed to the development of the highest-quality software in the fields of surveying, engineering, mining, town planning, landscaping, quantity surveying, irrigation design, and construction. Development guided by user demand and the highest standard of support have made Model Maker Systems software the leader in its field. Development is guided by user requests and practical applications. The software is ideal for accurate survey calculations, diagrams, and digital terrain/ground modelling. CAD, contouring, earthworks, road-, sewer- and stormwater and irrigation design and volume calculations form the key functions of what Model Maker Systems offers.

DEVELOPERS

OFFICIAL AGENTS

1982 Model Maker: Ben van den Heever 1985 Road Maker and Pipe Maker: Carel Viljoen 2004 Survey Maker 2004: Abrie Viljoen 2014 Point Cloud Viewer: Abrie Viljoen 2013 IrriExpress: Ben van den Heever

Senninger Irrigation: MMS Design: Cadquant: TopSurvey:

North and South America since 1995 Cape provinces since 2001 (previously Dragan Systems, Tritan Surveys) KwaZulu-Natal since 2008 (previously Kevin McDonagh) Zimbabwe, Zambia, and Malawi since 2011

PRODUCTS: • Model Maker: Originally, Model Maker was developed to reduce tacheometric survey data to XYZ points and generate contour plans. Today it caters for a vast field of application in land survey and engineering. • Road Maker: Any project involving cross- and long-sections can be handled by Road Maker, not only roads. • Pipe Maker: Sewer, stormwater, and water networks, together with other services, can be designed with full clash checking, quantification, and drawings. Networks are intelligently managed to ensure that levels and connecting lines tie up. • Survey Maker: Although all basic survey calculations for technical and land surveyors are catered for, Survey Maker specialises in the quick and easy generation of township development and sectional title plans and diagrams. • Point Cloud Viewer: With new survey technologies generating millions of survey points becoming available, there is a need for a utility that can easily manage huge data sets in various formats and audit and convert it for easier use in conventional digital terrain modelling packages like Model Maker. Point Cloud Viewer is an inexpensive alternative to the costly software supplied by scanner manufacturers to filter and audit point cloud data. • IrriMaker/IrriExpress: Four modules from Model Maker make up the IrriMaker package for the complete design and quantification of irrigations systems. It is maybe the only package available worldwide that caters for digital terrain modelling, CAD, and the irrigation design of pivots, drip, and solid set systems in one integrated package. IrriExpress is a scaled-down version but can produce almost the same as the full IrriMaker.

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CONSTRUCTION

The alternative approach to

CONSTRUCTION

INCE THIS ANNOUNCEMENT by the Minister of Human Settlements last year, the construction industry has had to adapt fast in order to serve the country in its quest for infrastructure development and stability. Industry players who provide products or services that promise to speed up delivery times and produce top-quality buildings are at the forefront of the construction revolution currently sweeping the country. The use of alternative building technologies and green building techniques has grown in popularity, with government departments and major organisations leading the charge. According to a 2015 GreenCape Market Intelligence report titled: ‘Greening the Construction Sector’, the construction sector is one of the biggest energy consumers in South Africa. Its greenhouse gas (GHG) emissions are also among the highest. “South Africa’s electricity is supplied, predominantly, by coal-

As government works to deliver 1.5 million houses by 2019, in a bid to stem the country’s housing backlog, the need for sustainable construction practices has never been more pressing.

ABOVE In June of 2015, Hotel Verde was awarded the highest accolade of a six-star rating in the Green Star SA Existing Building Performance tool, with 82 points RIGHT South Africa is well into embracing the green building trend, with more than 70 buildings recognised as green by the GBCSA

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CONSTRUCTION LEFT The DEA’s new headquarters boasts an impressive 6-star Green Star Rating from the GBCSA

ALTERNATIVE BUILDING TECHNOLOGIES THE GREENCAPE REPORT defines alternative building technologies (ABT) as building materials and modular construction technologies with a lower environmental footprint, including building products made from recycled materials, or those that result in significant reductions in building waste. ABT refers to all structural construction technologies and modular designs different from

the conventional brick and mortar or reinforced concrete construction methods in South Africa. According to GreenCape, it includes both traditional and new innovative technologies. “The alternative construction systems that do not have national standards or SABS certification are required to be certified under Agrément South Africa. A valid Agrément certificate signifies

compliance with the NBR and is accepted by the National Builders Registration Council (NHBRC) for enrolment of nonstandardised and alternate housing construction,” the report explains. There are presently 40 ABTs nationwide. These technologies include structural insulated panels (SIPs), insulated concrete formwork (ICF), radiant wall systems, and modular timber frames.

fired power stations, which means buildings are also responsible for a significant portion of the country’s carbon emissions,” the report notes. Since the new energy efficiency legislation was introduced in 2011, the construction sector has shown improved awareness about the benefits of energy-efficient building technologies. In the Western Cape, GreenCape, a non-profit organisation established in 2010 by the Western Cape Government and the City of Cape Town to support the accelerated development of the green economy, published the first ever Green Building Materials Catalogue. According to GreenCape, the catalogue aims to educate professionals and local government institutions on the different construction technologies that are available in the marketplace that effectively comply with the new energy efficiency building regulations (SANS 10400 XA).

ABTS IN ACTION A pilot project using ABTs, such as the ones mentioned above, is under way to fast-track

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East Coast Asphalt (Much Asphalt is majority shareholder)

Much Asphalt is southern Africa’s largest supplier of an extensive range of hot and cold asphalt products. Our products are supported by world class technology and expertise, extensive laboratory services and specialist advice. With 17 branches and state-of-the-art mobile plants, Much Asphalt offers services anywhere, any time, no matter how big or small the project.

ANYWHERE. ANY TIME. ANY PROJECT. T: +27 21 900 4400 F: +27 21 900 4468 E: info@muchasphalt.com www.muchasphalt.com

YEARS

1965 – 2015

CONSTRUCTION

housing delivery in eThekwini Municipality. This is the first time such technologies are being used for low-cost housing delivery, according to the municipality. To date, contractors have been appointed to deliver 800 units constructed using the alternative building method. On 11 November 2013, the Bid Adjudication Committee approved the award for the building of 20 show houses to 20 service providers. The show houses served as a platform to assess the different housing technologies available and select a suitable alternative technology model to improve housing delivery. A few show houses were built at sites across the municipality, done in order to evaluate many aspects related to compliance with building regulations and cost, functionality, longevity and post-construction maintenance, among others. The demonstration houses met technical, financial, and social requirements. City manager Sibusiso Sithole says that the intention of the council is to fast-track service delivery by exploring the market for alternative technologies and service. Sithole adds that the advantage of using these technologies is that a house can be built in approximately 8 days, while conventional methods take up to 14 days to complete.

It is the first government building, as well as the first building in the city of Tshwane, to achieve a six-star rating. According to Albi Modise, the DEA’s chief director: Communications, the building was awarded the rating based on efficient energy consumption, use of environmentally friendly materials, environmentally friendly transportation modes, efficient water saving devices, on-site grey-water treatment works, emissions reduction systems, and solar energy innovations.

“The intention of the council is to fast-track service delivery by exploring the market for alternative technologies and service.”

EMBRACING GREEN BUILDING South Africa is well into embracing the green building trend, with more than 70 buildings recognised by the Green Building Council of Southern Africa (GBCSA) as green, and just over 200 registered for certification. In the period between January 2014 and March 2015, the council certified almost 20 buildings with varying ratings, two of which were six-star buildings. Last year also saw the official launch of government’s first 6-star Green Star building and, in the spirit of sharing best practice and educating South Africans about sustainable building strategies, the Department of Environmental Affairs (DEA) opened the doors of its R653 million head office to the public. The DEA’s new headquarters, which was officially launched at the end of last year, is located in Pretoria on the corner of Soutpansberg and Steve Biko roads and boasts an impressive six-star Green Star Rating from the Green Building Council of Southern Africa (GBCSA).

South Africa is also home to the first hotel in the world to achieve a double platinum certification for Leadership in Energy and Environmental Design (LEED). Hotel Verde, situated in Cape Town, was recently awarded a second LEED Platinum Green Building Certification by the United States Green Building Council (USGBC). Hotel Verde’s ardent team have collectively gone above and beyond conventional industry practices by dedicating themselves to a sustainable work lifestyle. From stringent waste management and procurement policies to corporate responsibility campaigns, departmental sustainability, biodiversity maintenance, and offering a carbon-neutral hotel experience. In June of 2015, Hotel Verde was awarded the highest accolade of a 6-star rating in the Green Star SA Existing Building Performance tool, with 82 points, a first for a hotel in South Africa, by the GBCSA. The rating received is valid for a period of 3 years, in order to ensure the building is continually operated on stringent efficiency and sustainability targets. “At Hotel Verde, Cape Town Airport, we had the opportunity to look at everything from the ground up, with regard to sustainability

TOP The use of alternative building technologies and green building techniques has grown in popularity, with government departments and major organisations leading the charge ABOVE There are presently 40 ABTs nationwide. These technologies include structural insulated panels (SIPs), insulated concrete formwork (ICF), radiant wall systems, and modular timber frames

and efficiency, with the commitment to operate sustainability. But, the latest accolade showcases that Hotel Verde is ready to optimise the operation and maintenance of existing buildings,” said André Harms, sustainability manager and founder of Ecolution Consulting, a trained mechanical engineer and the expertise behind some of the more technical aspects of Hotel Verde. The Green Star SA building certification trend has shown significant growth in South Africa within a very short period, says GreenCape, “To date, the GBCSA has certified just over a million square metres of commercial space alone. The South African market is becoming increasingly competitive with other larger global regions such as Europe, Australia, the United States, the United Arab Emirates, Singapore and Brazil, among others.”

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

/umgeniwater

@umgeniwater

/uwa1974

www.umgeni.co.za

G O L D PA R T N E R

INGULA

Pumped

Storage Scheme The recently completed Ingula Pumped Storage Scheme is an example of excellence in engineering that takes into consideration both the environment in which it operates as well as the communities it affects.

E Avin Maharaj, senior project manager, Eskom

SKOM INITIATED a study on appropriate sites for a pumped-storage scheme in the 1980s. Initially, more than ninety appropriate sites were investigated, but only three made the shortlist. Avin Maharaj, senior project manager, explains, “This is because a pumped storage site needs suitable dam sites – relatively close together but at significantly different altitudes – suitable geology, and available water. The Ingula site is north-east of Van Reenen’s Pass, spanning the escarpment of the Little Drakensberg and straddling the provincial boundary of the Free State and KwaZulu-Natal, making it the ideal location.” The plant will be able to generate electricity for 16 hours before the minimum operating level is reached at the upper reservoir. During this period, 21 000 MWh will have been generated. The difference in altitude between the upper reservoir and the lower reservoir turbines is 470 m.

26 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

The powerhouse will consist of two underground caverns, the machine hall, and the transformer hall, and is located approximately 116 storeys (+-350 m) underground. It consists of three distinct floor levels: the operating, generator, and turbine floors. Smaller than the machine hall, and parallel to it, is the transformer hall. It houses the electrical plant, consisting of four oil-insulated generator transformers (contained in separate fireprotected enclosures on the operating floor) and the associated electrical equipment. Maharaj explains, “Pumped storage schemes are not primary electricity generation plants, but are used in conjunction with other forms of generation (coal, renewable, etc.) to optimise the overall electrical system.” The benefits include: • permits continuous operation of the highestefficiency plants (in South Africa, these are the coal power stations and the nuclear power station)

G O L D PA R T N E R

SKILLS TRANSFER The below pie chart indicates current skills transfer statistics at the Ingula project. There is an emphasis on skills transfer, especially for artisans, to enhance sustainable skills development within local communities in the Free State and KwaZulu-Natal.

Upper site intake canal

• reduces overall fuel consumption (of all the power stations combined) • provides rapid response to changes in electricity demand • contributes to network stability • black-start capability (Ingula, together with Drakensburg Pumped Storage Scheme, Palmiet Pumped Storage Scheme, and the open cycle gas turbine plants will have the capability to start up the electricity system in the event of a national power failure).

Headrace

HOW IT WORKS A pumped storage scheme usually consists of two adjacent water containment dams – one at a significantly higher elevation than the other. Maharaj explains, “A pumped storage scheme may be regarded as a giant battery, where energy is stored by pumping water

The Ingula site is north-east of Van Reenen’s Pass

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

G O L D PA R T N E R

Batch plant

into the higher dam, known as the upper reservoir. During peak electricity demand periods (usually from 06:00 to 09:00, and 16:00 to 20:00 on weekdays), the water flows back down to the lower reservoir dam through waterways and hydraulic turbines. The hydraulic turbines drive generators, creating electricity. The generated electricity

LOCAL ECONOMIC DEVELOPMENT An estimated R3.5 billion has been injected into the local economies of the following local and district municipalities: • Phumelela Local Municipality (Free State) • Maluti-a-Phufong Local Municipality (Free State) • eMnambithi Local Municipality (KwaZulu-Natal) • uThukela District Municipality (KwaZulu-Natal) • Thabo Mafotsanyana District Municipality (Free State).

is dispatched to the transmission grid, which then becomes available for consumers to use. The released water collects in the lower reservoir.” During periods of low electricity demand (usually from 21:00 to 04:00 on weekdays), the process is reversed. The excess electricity is taken from the transmission grid, and is used to pump water from the lower reservoir back to the upper reservoir. The water at the upper reservoir then becomes available again for electricity generation during peak demand. The important features of a pumped storage scheme are an upper reservoir, to contain the water, located at a significantly higher elevation; a lower reservoir, to contain the water released from the upper reservoir; and connecting pump-turbine waterways, usually located in underground man-made caverns, generally known as the powerhouse

28 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

KEY MILESTONES

Despite limited progress due to the work stoppage following a tragic accident on 31 October 2013, the Ingula project’s two emergency diesel generators have been hot commissioned. During commissioning, the two diesel generators were synchronised to the 22 kV Eskom distribution network to perform load testing. In addition, the civil works to the powerhouse complex – the metaphorical heart of the Ingula project – have finally been completed. The current works in the powerhouse are mainly the fabrication and installation of mechanical and electrical plant, such as turbines, generators, transformers, and associated equipment.

G O L D PA R T N E R THE ENVIRONMENT

ABOVE One of the tunnels that enable the movement of plant, materials, people, and ventilation from the surface to the underground powerhouse complex

Eskom is managing the area surrounding the dams and construction sites as a conservation area. “This area, located in both the Free State and KwaZulu-Natal, is of significant value as a source of water for the Highveld and is a natural habitat for a wide variety of plants, birds, and other animals. A team of full-time professional environmentalists monitor activities on-site, ensuring that all legal requirements are met,” says Maharaj. The Eskom conservation site, with the cooperation of landowners in the district, may form the core of a larger conservation area that protects the moist, high grasslands of the eastern Free State and northern KwaZulu-Natal. As part of the conservation programme, a network of walking and hiking trails will be developed and other ecotourism

opportunities will be implemented. These include campsites, river trails, birding, and cycling. Marketing of the area may lead to an increase in tourism and, as such, an increased demand for accommodation, which will, in turn, lead to economic opportunities for the surrounding landowners and members of the conservatory. There are a variety of habitats in the area – including wetlands, grassland slopes, and mountain forest – with a large number of plant species. Harvesting opportunities will be explored and, if appropriate, sustainable programmes will be implemented.

JOB CREATION The recruitment of locals from local communities within 100 km from site has been a priority. The recruitment process has always involved local stakeholders, especially municipalities and traditional leaders, to ensure a more equitable distribution of job opportunities within municipal wards and local villages. A total of 54.73%, or 1 892, of BELOW The twin headrace waterways, consisting of concrete and steel-lined headrace tunnels, pressure tunnels and shafts, links the upper reservoir with the pump-turbines. The draft tubes, concrete-lined surge shafts and a single concrete-lined tailrace tunnel connects the pump-turbines to the lower reservoir

complex. There are various tunnels that enable the movement of plant, materials, people, and ventilation from the surface to the underground powerhouse complex. These are the main access tunnel, ventilation shafts and tunnels, cable tunnel, and other internal tunnels to allow movement.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

G O L D PA R T N E R

TOP More than half of the total Ingula labour force was recruited from local communities and municipalities in the KwaZulu-Natal and Free State provinces ABOVE RIGHT AND ABOVE A close-up look at the turbine structures in the Ingula machine hall – the largest cavern in mud rock in the world

the current Ingula project labour force has been recruited from local communities and municipalities in the KwaZulu-Natal and Free State provinces.

PROJECT COST The cumulative cost incurred at the Ingula project, as at 31 January 2015, is R19.5 billion against a total budget of R25.9 billion (excluding capitalised borrowing costs).

HIGH LEVEL: CHALLENGES Safety continues to be a key focus at Ingula, especially following an accident in the

inclined, high-pressure shafts 3 to 4 on 31 October 2013. The safe work procedures, risk assessments, and documentation approval relating to the above accident were finalised and accepted by the principal inspector of the KZN Department of Mineral Resources. Following this: • The work stoppage was lifted with the physical work resuming in the high-pressures shafts in December 2014, after all of the equipment and facilities were changed to suit the revised methods and procedures. • It is estimated that the remaining work will take up to three times longer to complete using the revised method for safe work in the highpressure shafts. • All work on the project is now proceeding.

30 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

TECHNICAL DATA BRAAMHOEK DAM: UPPER RESERVOIR

The upper reservoir, Bedford Dam, is a concrete-faced, rock-fill dam. Length: Height: Surface area: Full supply water volume:

810 m 41 m 255 ha 22.4 million m³

BRAAMHOEK DAM: LOWER RESERVOIR

The lower reservoir, Bramhoek Dam, is a roller-compacted concrete dam. Length: Height: Surface area: Full supply water volume:

337 m 39 m 240 ha 26.3 million m³

G O L D PA R T N E R

STAKEHOLDER MANAGEMENT and

corporate social responsibility Eskom’s Ingula project has established mutually beneficial relationships and partnerships with both Free State and KwaZulu-Natal stakeholders. The Ingula team has immersed itself in the social fabric of both the project’s surrounding communities and government structures.

HERE IS SUFFICIENT representation and participation on ad-hoc, monthly, and quarterly stakeholder forums for both KwaZulu-Natal and Free State provinces. Eskom’s Ingula project has established a formally constituted, site-based grants and donations committee. The purpose is to have an integrated and proactive approach to all corporate social responsibility initiatives on-site. In this current financial year, the committee has recommended and supported a number of corporate social responsibility projects. Eskom officially handed over 15 mobile science labs and launched the extra tuition programme at Masheshisa Primary School in Driefontein, Ladysmith. “The Ingula project’s grants and donations committee and the Eskom Foundation have approved funding for 30 mobile science labs for distribution to 30 schools within the uThukela district, with a special emphasis on schools closer to the Ingula project.” Also, the targets are learners and schools from the Ingula project’s host communities. The mobile science laboratories will enhance learners’ science education and provide access to the latest science lab experiments and tools.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

G O L D PA R T N E R

www.eskom.co.za

In Phase 1, 15 lab trolleys will be distributed to the following schools: Masheshisa, Sinenhlanhla, Amahuku, Peacetown, Sidingulwazi, MC Varman, Mimtams, Isiqophamithi, Namakazi, Mngayi, St Chad’s, Buhlebezwe, Khuthalani, Gqama, and Dukuza. Phase 2 will include 15 more mobile science labs that will be distributed to more schools. One of Eskom’s values is ‘Sinobuntu’ and the true meaning of this value was showcased by launching the extra tuition programme. The programme will target 191 grade 12 learners from 11 high schools that fall within the immediate footprint of the Ingula project. Learners will receive extra tuition in mathematics, science, and accounting from some of the best educators in the country. In partnership with the Midlands College, learners will attend weekend classes (at Masheshisa), and winter and summer holiday classes (at Midlands College). Speaking on behalf of the Ingula project’s management, Mlungisi Shongwe commented, “Today’s gathering is a testimony to the great commitment and passion of Eskom’s staff – both men and women who are unwavering in their commitment to empower our host community’s world, despite the current challenges facing the business. These initiatives showcase Eskom’s commitment to a better life and education for all. Bafundi nizimisele futhi nikhuthale, ikusasa lesizwe lisezandleni zenu!” The proceedings concluded with an inspiring speech by Mayor Dudu Mazibuko, who implored all learners and educators to produce excellent results. She commented, “Eskom has given you a wonderful tool and you must utilise this effectively. Eskom has allowed us, as a district municipality and education department, to dream big and aim for higher grade 12 results.”

CONNECTING RURAL COMMUNITIES: ABANTUNGWAKHOLWA IT CENTRE Eskom’s Group IT, in partnership with its suppliers, has donated approximately R1.7 million worth of IT equipment to the Abantungwakholwa IT centre in Driefontein, Ladysmith. The official opening and launch was

SIYAQHUBA! Eskom officially handed over 139 off-road bicycles to Hlomisa and Mpophomo primary schools in Harrismith, Free State. The Ingula project’s grants and donations committee and the Eskom Foundation approved funding for 139 off-road bicycles, 139 helmets, 139 pumps, and 139 locks for distribution to the Hlomisa and Mpophomo schools within the Thabo Mofutsanyana district, with a special emphasis on schools closer to the Ingula project. Also, the main beneficiaries are learners who travel long distances – more than 7 km – to school. The off-road bicycles will enhance learners’ physical conditioning and enable them to be punctual. At Hlomisa Primary School, 59 off-road bicycles, 59 helmets, 59 pumps, and 59 locks were distributed. Speaking during the official handover of the bicycles, Lindi Mthombeni, Eskom general manager: Free State OU, stated, “Eskom has and will continue to contribute towards the enhancement of education, especially in rural areas. We have completed various socio-economic development initiatives within the eastern Free State, especially in the greater Harrismith area. I urge all learners to look after their bicycles and to always wear their safety helmets.” 80 off-road bicycles, 80 safety helmets, 80 pumps and 80 locks were handed over to Mpophomo School. Speaking on behalf of Mayor Tshabalala from Maluti-a-phofung Local Municipality, councillor Tumelo Thebe commented, “Today’s gathering is the result of a long standing partnership and continuous engagement with Eskom. We thank Eskom very much for making the journey to school more pleasant and safer for our children. This being Youth Month, Eskom could not have chosen a better moment to showcase its commitment to youth development in our area.” The proceedings, at both schools, concluded with all 320 learners receiving a snack pack, filled with delicious fruit, juice, a sandwich, and chips.

conducted by eMnambithi deputy mayor Cllr SR Mfusi, Eskom acting CIO Sean Maritz, and Shilpa Yohannan from Wipro, the platinum sponsor. Informed by its similar corporate social investment initiatives, Eskom’s Group IT hosted a golf day to obtain sponsorship and raise funds from its current pool of suppliers. Wipro, the project’s platinum sponsor, sponsored the following: a Mecer Proficient server, 22 Mecer LED monitors, 24 Mecer ports, a Brother colour printer, an NEC projector and screen, a VOX Telecom satellite Internet solution, and the company produced training material for the centre. Wipro provided three months’ training and mentorship for three

32 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

local youths from Driefontein. Also, Wipro funded operational costs and paid the stipend of the three local facilitators for a 12-month period. The three local youth members who were interviewed and trained as facilitators are Fana Khumalo, Njabulo Ndebele, and Ayanda Mvelase. Influenced by its Sinobuntu value, Eskom’s Group IT invested in rural communities and areas surrounding Eskom’s new build projects. Acting CIO Maritz proclaimed, “The primary objective was to not only establish a fully fledged IT centre but also to train and empower young entrepreneurs to manage it.” The Abantungwakholwa IT centre will offer, at minimum fee, a plethora of IT

One of Eskom’s values is ‘Sinobuntu’ and the true meaning of this value was showcased by launching the extra tuition programme

G O L D PA R T N E R OPPOSITE PAGE The local Driefontein IT Centre launch on 6 March 2015 RIGHT Eskom sponsors the training of local emerging business owners; seen here at the Contractor Academy graduation

services and basic computer skills training to local communities from the greater Driefontein area and learners from surrounding schools. Deputy Mayor Mfusi remarked, “We also thank all the sponsors for their contributions: Sekhara Technologies, who provided 20 Wi-Fi tablets specifically for training grade 1 learners; also, Huawei sponsored the landscaping; and Nihka Consulting sponsored flooring and painting materials, and a bar fridge.” Finally, all attendees were treated to a live demonstration and walk-through inside the high-tech computer centre.

MIRACLE ON WHEELS The R8.2 million mobile clinic is customised to provide high-end health-care services to primary school learners from both uThukela and Thabo Mofutsanyane district municipalities. The learners will have access to much-needed eye care, dental hygiene, and general health check-ups. The priority will be primary schools within walking distance from the Ingula project, in both KwaZulu-Natal and the Free State. The paediatric mobile unit for the Ingula project will service areas around Ingula, such as Besters, Kleinfontein, Driefontein, Zaaifontein, and Ezakheni in KZN and Bethlehem, Reitz, Kestell, Phutaditjhaba/QwaQwa, Warden, Harrismith, and Paul Roux in the Free State. Over a three-year period, Eskom will fund all medical consumables and the full maintenance and operation of the mobile clinic. During primary school visits by the mobile clinic, Eskom will have live online access to monitor the exact location of the mobile clinic. The medical personnel will have access to an on-board office to draft medical files as well as monthly reports. The conservative estimate is for the mobile unit to reach 14 040 learners per year, with each child receiving 20 minutes of quality, focused health care, including the distribution of glasses, vaccinations, and primary dental care. The paediatric mobile unit will empower rural-based primary school learners to overcome a lack of access to quality

health services in order to succeed in their educational endeavours. This project will be implemented in consultation with the Department of Health in both KwaZulu-Natal and the Free State. In addition, the Department of Health will be responsible for providing the required medication and staff at its own cost. Ownership of the unit will remain with Eskom; however, full responsibility for daily operations will lie with the service provider. MST Specialised Vehicle Solutions has vast experience in customising and operating mobile clinics and was highly recommended by the Department of Health to provide such service throughout the country. According to senior project manager Avin Maharaj, “This is one of many strategic corporate social investment initiatives by Eskom and the Ingula project. One of our values is Sinobuntu, and we have demonstrated this today; we have walked the talk, so to speak.” To this end, the Ingula project will embark on various corporate social investment and legacy initiatives targeted primarily at the Free State and KwaZulu-Natal host and labour-sending communities. The objective is to cushion the projected end of the project, which will lead to many locals losing their employment on-site due to contracts ending and demobilisation. Furthermore, corporate social investment initiatives will enhance Eskom’s – and Ingula’s – reputation as a responsible corporate citizen.

Eskom officially handed over 15 mobile science labs and launched the extra tuition programme at Masheshisa Primary School in Driefontein, Ladysmith

THE ENERGY AND SUSTAINABILITY PROGRAMME This is a partnership programme for environmental education by Eskom and the Wildlife and Environment Society of South Africa (WESSA) and has been in existence for approximately 13 years. It originally started as

an environmental competition that was initiated by Eskom to encourage and support schools in environmental education as far back as 1975. Through the programme, learners and educators are exposed to a broad range of environmental issues relating to energy and sustainability. Through support resource materials, as well as the WESSA regional coordinators, learners are empowered to research those issues specific to their local environment, and follow on with action towards environmental competence. With the addition of the new deliverables emanating from recommendations provided from the 2010 evaluation, capacity development for the educators will be offered, youth business initiatives will be promoted, community food security and equality will be addressed, and awareness on climate change and sustainability aspects will enable young adults to make informed decisions about their future. The programme focuses on previously disadvantaged communities, and other minority groups, but is inclusive of all South Africans. So far, 197 183 beneficiaries have benefited from the programme and the number is increasing every year.

ZIKODE HIGH SCHOOL (TELEMATICS SYSTEM) The school is situated in uMhlumayo and has 1 299 learners (602 boys and 697 girls). A telematics system, supplied by the University of Stellenbosch, is to be installed at the school, to the benefit of Zikode and five other nearby schools. This project will assist learners in English, maths, and science and technology subjects by linking the school – via satellite connection – to the University of Stellenbosch, where classes will be given by top teachers and lecturers.

CONCLUSION The site aims to be an internationally renowned sustainable conservation area, and all activities on-site are carried out with this long-term objective in mind.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

W AT E R I N F R A S T R U C T U R E

NAVIGATING SA’S

water-energy nexus

Water, energy, and food impact one another in numerous and unexpected ways, affecting economics and environmental health. FRANCES RINGWOOD

investigates some of the complexities behind the water-energy nexus and its impact on sustainability and food security in South Africa.

N ORDER TO SUSTAIN South Africa’s existing population, as well as immigrants and new-born citizens, it’s important that there is enough water, energy, and food to go around. South Africa is a particularly water-scarce country, receiving only about 490 mm of rain on average per year and, as a result, it is critical that all water users become conversant with factors threatening water security. Energy is intimately connected with water availability, which both have an impact on the country’s ability to meet its citizens’ daily needs. Before looking at the primary nexus points of power generation, acid mine drainage, hydropower, fracking, and the related concerns of food security and climate change, it’s worth remembering exactly how much stress there currently is on the country’s water reserves. According to the Department of Water and Sanitation, the demand for water has already overtaken the supply in at least 60% of South Africa’s water

management areas. The country is stretched to capacity, already having fully utilised 92% of all currently available water sources.

The conduit hydropower system at Bloemwater’s Brandkop Reservoir in Bloemfontein was launched in March 2015

HYDROPOWER OPPORTUNITIES

South Africa already struggles with – and the fact that it has long project lead times. The green advantages of hydropower cannot be denied and, so, South Africa is investing in more such projects, even if they are concentrated mainly along the eastern escarpment. One such project is the Ingula Pumped Storage Scheme, in the Little Drakensberg, on the border of the Free State and KwaZulu-Natal. Situated underground, inside a mountain, it is envisaged that, upon completion, it will add an output of 1 332 MW to the grid during peak demand periods. There is also the small-scale Neusberg Project, which achieved commercial operation in January this year, run off the Orange River in the Northern Cape. It generates 10.8 MW with 90 m3/s of water at 15.34 m head. This equates to 72 GWh

In 2011, the South African government introduced its Integrated Resource Plan, which aimed to reduce the national dependency on coal in favour of a greater mix of renewable resources, in an effort to stimulate the green economy while simultaneously providing a measured response to the demands of climate change – the plan has the added benefit that it does not jeopardise baseload capacity. The IRP called for an increase in hydropower use in South Africa – up to 12% of imported hydroelectric power for baseload power and 6% from pumped storage for peak energy demand periods. Some of the drawbacks of hydropower include the fact that it may increase evaporation rates for rivers – an issue that

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WAT E R I N F R A S T R U C T U R E

of baseload energy per year, with a capacity factor of 82%. Looking to imported power, the Democratic Republic of the Congo’s Grand Inga has long held out the promise of providing energy security in sub-Saharan Africa, with the potential to generate up to half of the continent’s energy needs (40 000 MW) once the final phase is completed. Last year, South Africa ratified a treaty for the construction of Phase 3, which should provide 2 500 MW of electricity to South Africa on completion.

CONDUIT HYDROPOWER Big builds have long lead times. A safer bet – which is being pioneered by engineers and researchers at Bloemwater, the Water Research Commission (WRC), the University of Pretoria (UP), eThekwini Metropolitan Municipality, and Tshwane Metropolitan Municipality – is conduit hydropower. Marco van Dijk, from the Department of Water Engineering at UP, explains, “Conduit hydropower uses the available water distribution infrastructure and, thus, as long as there is a demand for water, hydroelectric energy can be generated. Essentially, conduit hydropower piggybacks on to existing water infrastructure, resulting in a minimal environmental impact. The preliminary feasibility studies indicate short payback periods.” There is already one such system fully operational at Bloemwater’s Brandkop Reservoir in Bloemfontein. According to a statement by the WRC, “This technology has proven to be a huge success in converting the main supply of energy for operating the Bloemwater head office in Pellisier to a

FUELLING SOUTH AFRICA’S COAL ADDICTION RENEWABLES CURRENTLY produce less than 1% of the country’s energy. Coal accounts for 86% of South Africa’s energy production and it’s estimated that even once renewable power production is stepped up, coal will still account for 65% of the country’s fuel production by 2013 (according to the Department of Energy). South Africa has two new coal-fired power stations in various stages of construction at Medupi and Kusile, which are set to add a significant burden to the country’s water supply through the need for increased coal mining activities. Furthermore, water is needed in steam generation to power the giant turbines used in power generation. Not only does this process affect water quality and quantity at plant level but fossil fuels themselves affect water quality as a result of burning. Studies show that greenhouse gases released in

this process, such as sulfur dioxide, dissolve into the atmosphere, returning to the earth in the form of acid rain. Even in low concentrations, affected water results in the increased acidification of oceans, dams, and rivers. High water acidity rates can leach heavy metals out of rocks and river beds, poisoning those water sources. The cumulative effects of acidic water are not fully known but could have serious consequences for fish stocks and aquaculture, as well as other localised ecosystems. At high enough concentrations, human health is also affected. Moreover, coal seams tend to run very closely under the earth alongside gold seams and pyrite deposits. Mining these deep elements creates ideal conditions for the creation of acid mine drainage (AMD) – a mine-related form of water pollution that creates acidic water bodies, usually contaminated with poisonous

heavy metals. These effects are particularly pronounced at those areas of the Vaal that flow through the coal fields of eMalahleni, and it is a problem that needs urgent attention. “We need to treat our AMD; while there are some success stories in this area of water treatment, we still have a long way to go in terms of cost. It’s estimated that R990 million is needed per annum to treat decant from mines,” points out Kobus van der Walt, professor in the philosophy of natural sciences and engineering at North West University. While AMD is treatable, treatments are expensive and not many mines have the capacity to fully remove heavy metals. The country has thousands of abandoned mines and neither government, taxpayers, nor present-day mine owners want to pay for the treatment of water affected by past operations.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

W AT E R I N F R A S T R U C T U R E

The conduit hydropower system at Bloemwater’s Brandkop Reservoir in Bloemfontein was launched in March 2015

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South Africa already has access to the Mozambique natural gas field, the fourth largest gas field of its kind in the world. Will South Africa continue supporting its northern neighbour’s gas until more is known about the effects of fracking?

sustainable energy source. It supplies 96 kW/h of energy, from a pressurised conduit, to power up its operational facilities, with a full capacity of 360 kW.” The technology is scalable, meaning that all South African municipalities, water supply utilities, and mines that own and operate gravity water supply distribution systems could consider such a system.

FRACKING BALANCE Another energy production method requiring water is hydraulic fracturing, also called ‘fracking’. Fracking relies on injecting fluid into the ground at a high pressure in order to fracture shale rocks, to release natural gas inside. For this reason, millions of litres of water are needed to complete each fracking job. However, before water can be injected into the ground, it has a number of chemicals and sand mixed in with it to make the solution effective. These solutions used to be closely guarded secrets, but the United States Environmental Protection Agency passed a law requiring all solutions to be registered. A number of the chemicals used in these processes are hazardous to human health and it’s still a matter of debate between environmental protection groups and industry as to what the exact risks might be. A further concern is that these solutions, combined with pollutants contained in

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WAT E R I N F R A S T R U C T U R E

FOOD SECURITY IN THE WORLD WILDLIFE Fund’s 2014 report, ‘Understanding South Africa’s most Urgent Sustainability Challenge’, food security is shown to be inextricably linked to water and energy security in South Africa. The report suggests that the interdependency of these three factors and the challenges that these interdependencies create are the country’s most pressing future concern. Energy is needed for farming and food preparation, and water is needed to irrigate crops and in food preparation. Crops, in turn, are used in the production of biofuels (as is water) and the release of fertilisers into water systems has a significantly negative impact on water quality.Taken together, these factors pose a severe threat

to the country’s social and economic stability. As the report states, “Analysts have linked the social unrest in South Africa’s informal settlements, the mining sector, and among farm workers – during recent years – to the rise in global food prices. “The mining riots in August 2012 coincided with record prices for maize and other basic food items. The xenophobic riots of 2008, which coincided with food riots around the world, were attributed to anger about foreigners competing for limited resources – arguably exacerbated by high food prices.” By better understanding how water and energy impact one another, policymakers and implementers are more able to factor in impacts on local food security and create better peace, harmony, and prosperity in South Africa.

Food, water and energy are all intimately connected and a threat to one entails a threat to the other two

gas-containing rock, could contaminate underground aquifers used for irrigating crops or providing drinking water. Methane can also be released through the process, which contributes towards global warming. “My opinion is that there is no need for fracking. South Africa already has access to ample natural gas reserves from our Sasolburg pipeline to the Mozambique gas field – the fourth largest gas field in the world. We can import that gas while simultaneously stimulating Mozambique’s economy, which will create more stability in the whole sub-region. So, why take the risk of implementing potentially dangerous fracking in the Karoo, at least until we understand it better?” asks Van der Walt. At present, South Africa’s Department of Environmental Affairs has commissioned the CSIR to conduct a broad and multidisciplinary strategic environmental assessment of all aspects of shale gas mining. Government has promised investors that exploration licences will be granted by the end of this year.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

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L E A D I NG ENERGY

INSIDE

Assessing the current state of South African energy and the alternatives on offer

SUSTAINABLE ENERGY 48 The future of renewable energy in South Africa

SA'S ENERGY SITUATION

51 Kentz A Strategic union of two firms

40 South Africa's energy supply 44 Eskom interview with CEO Brian Molefe CEO 46 Trans-Africa Projects Partner Package

52 Hysa Leading the way for renewable energy 55 Parker Wind energy is the way of the future

NATURAL GAS

NUCLEAR ENERGY

42 South Africa's energy situation looks to natural gas

59 Going nuclear in South Africa

57 Arup Load-shedding and price protection

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 â€˘

S A ' S E N E R G Y S I T U AT I O N

energy supply

SOUTH AFRICA’S

Over the years, South Africa has embarked on a mass electrification mission to deliver power to rural areas. This, along with its focus on industrialisation, has increased the country’s demand for electricity to such an extent that it is expected to double by 2030.

HE COUNTRY’S ENERGY demands have increased to such an extent that government-owned utility Eskom is struggling to meet them. Currently, South Africa’s power system is strained, and Eskom is, at times, unable to provide the necessary levels of electricity. The implementation of electricity load-shedding has been attributed to the insufficient maintenance of power stations, underinvestment in the power infrastructure, as well as unexpected breakdowns at several power stations. This is not the first time the country has been plunged into darkness, however, as South Africa previously experienced loadshedding of this nature in 2008. This matter has attracted the attention of the Department of Energy, who has implemented a strategy along with Eskom in order to balance the country’s electricity supply and distribution.

Government has said that the current energy constraints do not pose a permanent crisis and that it has prioritised the matter to ensure that all measures are taken in order to minimise loadshedding, balancing the electrical supply. However, not everyone sees the current energy situation as a crisis. “Some will view it as a crisis. I just view it as ‘pressured transformation.’ The energy system is now forced to change, and such a change is always painful,” says Professor Alan Brent of the Centre for Renewable and Sustainable Energy Studies. The government has made available the Integrated Resource Plan (IRP) 2010–2030, which was promulgated in March 2011 and reveals the plans to meet the country’s medium- to longterm energy needs. These plans involve the provision of an energy mix consisting of coal, solar, wind, nuclear, hydro, and gas.

40 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

Furthermore, President Jacob Zuma addressed South Africa’s energy concerns in his State of the Nation Address delivered on 12 February 2015, and highlighted some of the plans being worked on in order to rectify the serious energy crisis. These include: • Government will honour its commitment to provide Eskom with R23 billion in the next fiscal year in order to stabilise the utility’s financial situation. • All individuals, households, industries, and government departments have been urged to save electricity in order to minimise the need for load-shedding. • Eskom has been directed to use gas instead of diesel for its generators. • The construction of three new power stations – Ingula (1 332 MW), Kusile (4 800 MW), and Medupi (4 764 MW) – is expected to add 10 000 MW of electricity to the national grid. • The construction of the Sere Wind Farm contributes 100 MW to the grid.

INDEPENDENT POWER PRODUCERS In October 2015, the Department of Energy announced that it would be expanding opportunities for the private sector to contribute to the power production of the country. Seeing

S A ' S E N E R G Y S I T U AT I O N

ting a r e n e G y l s Continuou Fresh Ideas!! Since 1993

LOAD-SHEDDING EXPLAINED

• Low and Medium Voltage Switchboards

Load-shedding is a measure of last resort to prevent the collapse of the power system countrywide. When there is insufficient power station capacity to supply the demand (load) from all the customers, the electricity system becomes unbalanced, which can cause it to trip out countrywide (a blackout) – and which could take days to restore. When power is insufficient, Eskom can either increase supply or reduce demand to bring the system back into balance. As the difference between supply and demand becomes smaller, the system is said to become ‘tight’. This implies that action has to be taken to prevent the system from becoming unstable. Eskom normally takes a sequence of steps to keep the system stable and avoid load-shedding. The steps include first asking large customers to reduce load voluntarily. However, if several power station units trip suddenly and unexpectedly, Eskom may have to skip those steps and go straight to loadshedding to prevent the system from becoming unstable.

TOTAL ENERGY SUPPLY IN SOUTH AFRICA Coal – 69.0% Crude oil – 14.8% Biofuels and waste – 10.7% Gas – 2.9% Nuclear – 2.4% Hydro – 0.1% Solar, wind, etc. – 0.1%

as Eskom currently dominates the country’s electricity sector, with 27 operational power plants that generate over 95% of South Africa’s electricity, this announcement was welcomed by independent power producers (IPPs). The Department of Energy has approved

• Diesel, Gas and Dual Fuel Generators • Dynamic Rotary Uninterruptible Power Supply (DRUPS) • Energy and cost saving hybrid power solutions • Static UPS Systems • Turnkey Cooling Solutions for data centres • Photo Voltaic Solutions • Co-generation and Tri-generation solutions

13 renewable IPP bids, which brings the IPP projects total to 79. These projects will see 5 243 MW added to the power grid. The department has also initiated a process to design a gas-to-power procurement programme for a combined 3 126 MW allocation from the IPPs. In addition to this, there is a 2 500 MW IPP programme for coal power stations and 800 MW from cogeneration, which brings the total IPP contribution to a staggering 13 469 MW. The implementation of this programme has signalled a positive change in the energy industry as IPPs will both benefit from and contribute greatly to the strained power grid. Brent agrees that IPPs will be able to ease the energy situation, explaining, “Only IPPs can bring online new generation in the short-term, on time and on budget. For them, it is the business of making money. IPPs are the way to go; smaller scale and distribution means lower risk to the overall energy system.”

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N AT U R A L G A S

SOUTH AFRICA’S ENERGY SITUATION

looks to natural gas While South Africa struggles with meeting the increasing energy demand and parts of the country are plunged into darkness, it seems natural gas could be the way forward.

OUTH AFRICA HAS BEEN subjected to nationwide power cuts as coal-fired energy fails to meet the country’s rising demands. Coal-fired energy accounts for more than three quarters of the country’s total energy output. As the energy struggle in South Africa increases, there is growing interest in the country’s current energy mix. The government is currently aiming to add natural gas to South Africa’s energy mix in order to lessen the strain on coal-fired electricity. However, the country has little to no gas reserves and no gas-fired generation, so all developments made to include natural gas in the energy mix would require the establishment of an infrastructure to import, transport and burn the fuel. In addition

to this, government has also extended an invitation to private companies to supply 3 126 MW of gas-fired generation in an attempt to pacify the energy crisis that has stunted the economic growth of the country. Referring to around-the-clock generation, Minister of Energy Tina Joemat-Pettersson says, “Gas will be a cornerstone of baseload power. Our vision is that gas will play a significant role in delivering timely, reliable, and affordable electricity.” The current capacity of the energy grid, with the help of two new coal plants, is expected to meet the country’s demands until 2020; however, concern has been expressed with regard to the plans following that. An article entitled ‘Natural gas:

ADVANTAGES OF NATURAL-GAS POWER • FAST LEAD TIMES Natural gas reactors need approximately two to four years from conception to construction, significantly shorter than the time needed by coal or nuclear. • LESS HARMFUL TO THE ENVIRONMENT Natural gas is made of methane and results in less carbon emissions. Emissions of carbon dioxide are 45% less than other conventional fuels and 30% less than oil. • EASY STORAGE AND TRANSPORTATION It is easier to preserve gas than other fuels. It can be stored in and transported through pipelines, small storage units, cylinders, or tankers.

42 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

Powering South Africa’s future’, by Christine Wu and Fransje van der Marel, discusses the energy crisis and possible solutions, saying: “By 2025, we estimate a power gap of 6 GW to 10 GW will emerge, equivalent to millions of households’ electricity needs. The only solution that can close that gap within 10 years, while South Africa finalises its longterm energy mix plans, is natural gas power.” The article indicates that coal and nuclear power are more cost-effective alternatives than gas, yet South African domestic coal prices will increase by 87% by 2030. The government is also implementing carbon taxes as of 2016, which will affect coal prices. Using natural gas for power generation and industrial development is one of the main practical approaches South Africa can take for a short- to medium-term solution to avoid another shortfall between 2025 and 2030. “Gas can be ramped up and down in the system within an hour. Therefore, it is a perfect way to stabilise the system,” says Professor Alan Brent of the Centre for Renewable and Sustainable Energy Studies. “Our key challenge is how to reap the benefits of natural gas as an energy source as soon as possible,” adds Joemat-Pettersson.

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INTERVIEW

South Africa’s largest power utility discusses energy in the country.

QUICK CHAT WITH

How is Eskom leading the industry in guiding it to support South Africa’s sustainable energy future? Eskom is committed to supporting the grid integration of independent power projects as evidenced by the 43 projects that have been connected since the inception of the procurement programme in 2011. For the renewable energy rounds 1 to 3 (Bid Windows 1 to 3), Eskom has spent R2.4 billion on the backbone infrastructure at both transmission and distribution level to enable the evacuation of energy from the independent power producers (IPPs). Total capacity of 5 701 MW has been contracted with IPPs as at 31 March 2015, of which 3 887 MW relates to

contracts under the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPP).

What is Eskom doing to lessen the strain on the electrical grid and avoid load-shedding? To counter the current constrained power supply, a short-term generation recovery strategy has been put in place. Key engineering personnel have been dispatched to sites that needed assistance to expedite the return of the generation units out of service; station recovery teams and additional specialised contractor resources have been mobilised to work around the clock to repair and return

44 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

Brian Molefe, CEO, Eskom

units to service, with the key objective of bringing the units back online as quickly as possible and to arrest the negative trend of unplanned outages. In terms of our existing Generation Sustainability Strategy (GSS), our aim is to achieve 80% plant availability, 10% planned maintenance and 10% unplanned maintenance over the medium term. The adherence to regular scheduled maintenance is set to limit unplanned maintenance to below 7 500 MW in summer and 5 500 MW in winter. We are implementing appropriate levels of planned maintenance in line with the GSS to ensure long-term plant health, while remaining cognisant of current system constraints, compliance, safety

INTERVIEW

and statutory requirements, as well as the financial constraints. This has resulted in an improvement in unplanned maintenance and the number of plant breakdowns over the past few months of this year, positively impacting plant availability.

its generation, transmission, distribution, and sales. Eskom is a critical and strategic contributor to government’s goal of ensuring security of electricity supply to the country as well as economic growth and prosperity. The electricity that we produce is a major driver of the economy – about 2.2% of the country’s gross domestic product can be attributed to the electricity, gas and water cluster. The pace at which the country’s energy needs grow is linked to the pace at which the economy grows, and determines the pace at which generating capacity needs to expand to meet demand. Infrastructure capital investment has historically not kept up with economic growth, resulting in an electricity supply situation that is constrained in the short to medium term.

What are the challenges faced in developing IPPs including renewable projects in the South African mix?

We are also busy with a capacity expansion programme to expand our generation and transmission capacity. This programme, which will increase our generating capacity by 17 384 MW by 2021, includes building two coal-fired power stations and one pumped storage, a wind facility, which was completed this year, as well as a concentrated solar thermal station. It also involves strengthening and substantially extending the transmission grid.

How does Eskom view South Africa’s energy situation? Our mandate is to provide electricity in an efficient and sustainable manner, including

Eskom fully supports the Department of Energy’s REIPPP and acknowledges that IPPs must play a part in the South African electricity market, and we remain committed to facilitating the entry of IPPs to strengthen the system adequacy and meet the growing electricity demand. Our decision to temporarily halt the issuance of budget quotes to renewable energy projects was taken to protect the financial sustainability of Eskom due to the fact that no capital allocation was accommodated for in the current multiyear pricing regime (MYPD3) for IPPs beyond Bid Window 3. We believe that, very soon, a lasting solution will be found to address this matter.

How can the various provincial utilities play a more integrated role in meeting the national electricity demand? Eskom has managed to operate a power system without load-shedding for nearly three months now, meaning that our maintenance programme is beginning to bear fruit. While we continue to refurbish and expand our power system, we urge all customers to use electricity sparingly in

order to reduce strain on the power grid, and thereby minimise the risk of load-shedding.

What external factors require shortterm risk management? Environmental compliance, in terms of air quality, land, biodiversity, water, waste (including nuclear waste) and ash management, impacts operational sustainability. It is critical to maintaining our licence to operate, thereby ensuring security of supply. It also underpins our principle of zero harm to the environment, while operating under complex and evolving environmental requirements.

What benefits have resulted from the Presidential Infrastructure Coordinating Committee for South Africa’s energy sector development? The focus is on accelerating the conversion of our existing open-cycle gas turbines from using diesel fuel only into combined-cycle gas turbines, able to use either gas or diesel. In addition, we are considering a number of other energy projects outside South Africa, including the Grand Inga Project on the Congo River in the Democratic Republic of the Congo. We conducted a workshop with stakeholders to explore funding and ownership structures for regional projects. The Grand Inga Transmission Integration Project (a joint Eskom and SNEL project) was used as a case study in this process.

What message does Eskom have for citizens, business, industries, and investment committees (local and international) to instil confidence in this sector’s future? We started the capacity expansion programme in 2005 to build new power stations and highvoltage transmission power lines to meet South Africa’s rising demand for electricity and also to diversify our energy mix. The programme, which started with the return-to-service (RTS) programme and which is currently expected to be completed by 2021, will increase generation capacity by 17 384 MW, transmission lines by 9 756 km and substation capacity by 42 470 MVA. Since inception, the capacity expansion programme has resulted in additional generation capacity of 6 237 MW, mainly through the RTS programme, 5 816 km of transmission lines and 29 655 MVA of substation capacity. The programme has cost R265 billion to date (excluding capitalised borrowing costs), while the total cost to completion of the programme is currently estimated at R361 billion (excluding capitalised borrowing costs).

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

PA R T N E R PA C K A G E

Trans-Africa PROJECTS Set up to assist utilities and large power users globally, Trans-Africa Projects offers industry-leading consultancy and EPCM services for transmission lines and substations.

RANS-AFRICA PROJECTS (TAP) was established in 1995 as a joint venture between South African power utility Eskom and American company FLUOR. It was originally founded for the sole purpose of executing projects outside the borders of South Africa, inter alia the refurbishment and reconstruction of the 533 kV HVDC transmission line from the Cahora Bassa Dam in Mozambique to Pafuri at the South African border, for Hidroelectrica de Cahora Bassa. The project was finished two years later and was a huge success. To this day, FLUOR and Eskom remain the sole shareholders, each having a 50% share of the company. Since its establishment, TAP has evolved into a completely independent company and a leader in the electrical engineering industry. Its expertise and the optimised solutions TAP presents to customers ensure the retention of customers and a continuous growth in the company’s customer base. In terms of QMS, TAP maintains international certification for ISO 9001, ISO 14001, and BS OHSAS 1800.

WHAT MAKES TAP UNIQUE? What makes TAP different to other project management and ECPM consultancies are the resources and expertise at its disposal. With the 50/50 shareholding between FLUOR and Eskom, TAP has at its disposal a vast amount of technical and engineering resources

from Eskom, and financial management and project controls on FLUOR’s side. This situation means that TAP can offer clients a complete service offering for transmission and distribution services. It also allows TAP to offer its customers fully customised designs, rather than taking a standardised approach. The designs TAP offers can be conceptual or very detailed, depending on clients’ needs. With the full access TAP has to Eskom’s mechanical and electrical testing facilities for lattice steel towers and conductor configuration, high voltage lines, and transmission towers, it is able to enhance its design solutions and offer optimised designs specific to clients’ requirements or unique circumstances. This kind of case-by-case R&D capacity is very unique in TAP's business. TAP also has access to a large ‘arsenal’ of existing tower family designs, which have been proven in the field. When considering the fact that TAP’s speciality is high and extra-high voltage projects ranging from 11 kV to 765 kV, the benefits of this kind of facility become clearer. One area of particular interest to the organisation is renewable energy, which it first

46 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

ventured into in 2009. This is a growing market around the world, and one in which TAP wants to increase its market share. TAP is currently supporting renewable energy projects in South Africa for several developers. The service includes evacuation studies, feasibility studies, engineering, the Eskom self-build solutions on an EPCM basis, and grid compliance. TAP also offers clients the most efficient models of energy transmission, using a probabilistic design approach for the various design components during the early stages of a project. Taking this approach at the planning

PA R T N E R PA C K A G E stages of the task, where the blueprint is based on the actual factors that will affect the final product once it is in place, has the additional benefit of reduced maintenance costs.

INVESTING IN STAFF Another important factor setting TAP apart from competitors is its training schemes, which it offers to not only its own staff, but to people from outside the company. It offers training in such desirable skills that companies from all over Africa send their employees to attend. The courses on offer include planning, design and construction of overhead lines, substation engineering, operations and maintenance of lines and substations, site supervision for lines and substations, PLSCADD, PLSPOLE and PLSTOWER.

TAP considers its staff to be its most valuable asset; and, clearly, with the kind of work they are doing, TAP needs skilled people. TAP runs the courses two to three times a year and use them for its own staff as a continuous professional development and continuous skills development scheme, and it invites other outside power utility companies to attend. These training sessions are very popular and TAP has had uptake from various countries. TAP is fairly unique in having access to the resources, skills, and expertise of its shareholders, while at the same time maintaining its autonomy. It has built a stand-alone reputation for skilled work that precedes it in most countries around the world, with potential clients approaching it for work on new projects, as well as the other way around. And, it has gained a foothold in the rising green and renewable energy market – another valuable arrow in its quiver.

GROWING INDEPENDENCE AND EXCELLENCE UNDERSTANDING THAT THE founding companies have exceptional reputations for excellence and industry knowledge, it becomes even more impressive that TAP is keen to establish itself off the back of its own accomplishments. Lesser joint-venture organisations would be happy to ride the corporate coat-tails of their founders. With offices in Johannesburg, Durban, Cape Town and Mozambique, TAP has taken all opportunities to grow and develop into an agile and fully independent company. Not just holding its position, but rather taking strides out into new territory, TAP has some interesting projects on the go, which include working with the Saudi Electricity Company, various renewable energy projects in South Africa, which include the feasibility studies, engineering designs for collector networks, lines and substations for the integration of these generation facilities into the national grid. TAP further

provides project management and construction site supervision to some and involvement with African interconnection endeavours. The company is undertaking a bankable feasibility study for the interconnection between Mozambique, Zimbabwe and South Africa. Their role is as a technical partner with KPMG, Norton Rose and Gibb.They are also involved with 12 renewable energy projects in South Africa. These projects include engineering design, project management and site supervision services being supplied to Eskom. Various projects and disciplines are supported, including two 765 kV line projects, eleven 400 kV line projects, six 765 kV substation projects, ten 400 kV substation projects and one IPP project. On the major transmission side, TAP is currently entrusted by the Botswana Power Corporation with the establishment of the Morupule B to Isang 400 kV line and associated transmission works. This is one of the most important

projects for Botswana’s infrastructure and entails 220 km of 400 kV line and six substation-related projects. In Mozambique, TAP is the major role player in effecting permanent solutions to various networks, including the Cahorra Bassa DC line, which was severely damaged by recent floods. Special structure and foundation designs will ensure a permanent solution. TAP is a company that not only has it all, it recognises that fact and is still growing as an independent organisation. With industry connections and ties that other businesses could only dream of, TAP has taken a stand against piggybacking on the success of parent companies, choosing instead to stand for customer service and exemplary accomplishments through hard work and dedication. It’s this attitude and work ethic that sets TAP apart from competitors and demonstrates that, sometimes, all you need is a spark of inspiration to really get ahead.

+27 (0)11 205 9400 | www.taprojects.co.za

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

S U S TA I N A B L E E N E R G Y

The future of RENEWABLE ENERGY in South Africa

While South Africa is still some distance from abandoning coal as an energy source, there are several plans being made to implement cleaner technologies to develop the sustainable energy sector.

N APRIL 2013, the Department of Trade and Industry (dti) minister, Rob Davies, announced that 10 special economic zones (SEZs) had been proposed, subject to feasibility studies. Of these 10, 2 were proposed as industrial hubs for the manufacture and use of technology for renewable energy. The first of these was Atlantis, in Cape Town, and the second would be in the Northern Cape, focusing on solar power – particularly concentrated solar power (CSP). Two and a half years later, the prospects for these two hubs are looking rosier than ever, with projects already complete and state rubber stamps soon to follow.

FINDING ATLANTIS The reason for Atlantis’s selection as a ‘GreenTech’ manufacturing hub is its central location between major trading centres, including the City of Cape Town CBD, Cape Town International Airport, and the Port of Saldhana. ‘GreenTech’ refers to low-carbon and resource-efficient technologies. Atlantis is also a prime area for development, exhibiting the key

characteristics of areas tabled for development, including low employment rates, stagnant economic growth, and challenges relating to crime. At this year’s African Utility Week, held at Cape Town International Convention Centre, Evan Rice, CEO of GreenCape South Africa, took the podium to discuss his organisation’s finding on the feasibility of transforming Atlantis into a green technology haven. “The choice of Atlantis as a new SEZ, which is to be centred on green technology, makes sense since the Western Cape is already South Africa’s emerging renewable energy hub. Some reasons for my saying this include the fact that 60% of successful REIPPPP (Renewable Energy Independent Power Producer Procurement Programme) projects were developed by Cape-based developers, and the province already boasts major foreign manufacturing investments in wind, solar photovoltaic technology, and inverters. “Feasibility studies for Atlantis are complete and the application for SEZ status is in the process of being drafted,” said Rice. He added that

48 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

S U S TA I N A B L E E N E R G Y

OPPOSITE PAGE Concentrated solar power relies on many mirrors, called heliostats, which follow the Sun’s course and concentrate reflected energy on a single tower TOP The GRI wind turbine factory in Atlantis was the first anchor investor in Atlantis’s SEZ status ABOVE Atlantis is strategically located to become the biggest green technology hub in Africa

companies wishing to invest before then can get a letter from the dti ensuring that they will not be excluded from the benefits after designation.

LOCAL CSP ADVANCES CSP has been hailed internationally for its potential to save much more space than solar farms and it’s also reported to be more costeffective. By using mirrors or lenses directed at a central point, energy is captured and fed into the grid in the same way it is from a coal-fired power station – except that the Sun’s rays are used instead of coal and the whole process is vastly more environmentally friendly. Khi Solar One is the first of three CSP projects being developed in the Northern Cape and will produce 50 MW. Located just outside Upington, the project is being developed by Spanish company Abengoa, the Industrial Development Corporation (IDC), and the Upington community trust. The second CSP project, KaXu Solar One, was opened near Pofadder in March this year

and produces 100 MW. It was also developed in partnership between Abengoa, IDC, and the local community. Last on the list is the Bokpoort CSP power station, near Groblershoop, which has a capacity of 50 MW. Owned by ACWA Power Solafrica Bokpoort CSP Power Plant, Bokpoort has reportedly created about 650 jobs during construction and will create a further 50 permanent jobs once operational. These were simply the initial CSP projects and already dozens more have been tabled. As of last year, a CSP corridor between ZF Mgcawu and Pixley ka Seme was already in the works, according to the premier of the Northern Cape, Sylvia Lucas, in her State of the Province Address. Further, at the opening of the KaXu plant, Ebrahim Patel, Minister of Economic Development, announced, “It is one of 33 renewable energy plants that have opened over the past 15 months, which, together with planned plant openings during March 2015, would bring 1 865 MW of installed energy to the grid by the end of the month.”

SPURRING THE GREEN ECONOMY The idea behind the SEZ strategy is excellent; the SEZ Bill states its aims are “to attract direct investment, alleviate large-scale unemployment, and develop and diversify the economy.” However, not all of South Africa’s existing SEZs

have been unqualified success stories from start to finish. The first SEZs at Coega, East London, Richards Bay, and O.R. Tambo International Airport were initially extremely slow to attract investment and none have created the amount of jobs initially expected. Where renewable SEZs differ is that they assist South Africa in keeping up with the global trend of moving away from fossil fuel dependency, towards a greater reliance on renewables. Added to this, South African scientists have recently had breakthroughs in CSP and other renewable energy technologies. By taking advantage of South Africa’s abundant sunshine, these renewable SEZs may yet be the key to unlocking the country’s SEZ potential.

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

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INFRASTRUCTURE EXPERTISE Population growth, industrial development, and a rising quality of life are driving the need for new and rehabilitated infrastructure. SNC-Lavalin addresses the full life cycle of infrastructure, from making equity investments and arranging financing, to providing engineering, construction, and operations and maintenance services.

practices, innovative technologies, and cuttingedge processes. Its ability to deliver sustainable solutions for changing market realities has made the group one of the world’s most responsible and multidisciplinary engineering and construction firms.

DEEP COMMITMENT TO SAFETY The group’s ultimate aim is to be an industry leader in safety performance and to achieve an incident- and injury-free workplace, where nobody gets hurt and everyone goes home safe each night. Safety is truly at the heart of everything Kentz does and the group’s passion extends to everyone who may be affected by its activities. The group is very proud of its excellent reputation for health and safety, yet it is never complacent and is always looking for ways to improve.

+27 (0)11 262 4545 | kentz.com

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

PA R T N E R PA C K A G E

Leading the way for RENEWABLE ENERGY

HySA Infrastructure is pioneering the production and usage of renewable hydrogen in South Africa for fuel cell and energy storage applications.

HOUGH IT MAY SEEM futuristic, the capability to turn renewable wind or solar energy into hydrogen for fuel cell applications and energy storage in South Africa has already been developed. The HySA Infrastructure DST Center of Competence at North-West University (NWU) and the CSIR has taken the first groundbreaking steps towards developing innovative applications and solutions for hydrogen production, storage, and distribution in South Africa. This will enable the country to use its wealth of solar and platinum group metal resources to generate high-quality, cost-effective hydrogen from renewable energy sources.

52 â€˘ LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

HOUSEHOLDS AND INDUSTRY CAN BENEFIT In the meantime, HySA Infrastructure at NWU is powering ahead with plans to engage with industries such as power, mining, petrochemicals, telecommunications, glass, and food manufacturing. Renewable hydrogen can greatly benefit the telecommunications industry since it can compete very well with diesel generators, which need much moreÂ maintenance. There is an even bigger market for hydrogen in the mining industry, which uses diesel underground and has issues with ventilation and toxic exhaust fumes. By using green hydrogen underground, mines could save on ventilation and

PA R T N E R PA C K A G E

CURRENT AND FUTURE PROJECTS Selected current projects include: • Liquid organic H2 carrier (LOHC) storage is identified as the preferred H2 storage technology after high-pressure compressed H2 storage. • High-pressure tube cylinders are to be installed at HySA Infrastructure facilities to increase H2 storage capacity. • Initial feasibility H2 fuel cell technology development, demonstration, and

deployment for underground mining operation. •A H2 generation system is being commissioned to produce H2 for tests in underground ventilation environments. • A Phase 3 electrochemical H2 compression system is under development. •H igh-pressure electrochemical H2 compressor cell under development for up to 700 bar(g).

Selected future projects include: • A power-to-gas research platform for South Africa, which includes methanation processes, fuel cell vehicles and duel fuel H2 applications. • Closed-cycle combined heat and power 3 kW (electric), 15 kW (thermal) duel fuel micro gas-turbine to prove the concept of mixing H2 produced from renewable sources with natural gas to increase efficiency and reduce CO2 emissions of South Africa’s gas turbines.

TRAINING AND SEMINARS

OPPOSITE PAGE HySA Infrastructure facilities at North-West University RIGHT HySA Infrastructure facilities at CSIR BELOW RIGHT Compressor

The following topics for training courses and seminars are offered: • H2 production technologies • renewable energies for H2 production • H2 as a storage medium and H2 storage and compression technologies • power-to-gas applications • fuel cells in underground mining applications • fuel cell mobility • hands-on training of fuel cell operation and testing.

SELECTED SERVICES

erform fuel-cell testing for the telecommunication, mobility and stationary power P applications. Consultation on fuel-cell-powered vehicle development and conversions in collaboration with the North-West University’s mobility research group famous for its award-winning solar-powered car. Consultation on MEA and CCM development for automotive fuel cell applications. Expertise at the renewable-to-H2 project department at HySA Infrastructure includes: • 35 years’ combined experience in sizing, design, and commissioning PEM-based H2 production systems using renewable energy • renewable H2 production system simulation and optimisation tool • experience and relationship with several PEM-based H2 generator and fuel cell OEMs.

PRODUCTS

there would be no toxic exhaust. Over and above industries that already use hydrogen, new potential applications abound, such as in rural electrification in South Africa.

HUMAN CAPITAL HySA Infrastructure has developed a critical mass of human capital. It has a strong team of engineers, scientists and students who all know the technology and can look at improving its efficiency.

The following products are available for order: • laboratory-scale photovoltaic, wind turbine, electrolyser, and fuel-cell educational demonstration kits • s mall electrochemical H2 compressor demonstrators limited to 20 bar(g) • larger-scale electrochemical H2 compressors capable of pressurising 34.2 Nl/h of H2 up to 150 bar(g) •P EM-based H2 production systems for remote operation • t echnology development matrix for fuel cell components.

FACILITIES AND CAPABILITIES HySA Infrastructure offices and facilities of more than 1 000 m2 are located on the Potchefstroom campus of NWU, as well as more than 400 m2 at CSIR.

+27 (0)18 285 2460 | +27 (0)72 623 0172 dmitri.bessarabov@nwu.ac.za

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

Renewable energy is becoming a vital component in the energy portfolio of many countries worldwide and hydrogen is one of the best options to store renewable energy. The HySA Infrastructure DST Center of Competence at NWU and the CSIR is a leading developer of related technologies in South Africa and HySA is also becoming a world leader in selected hydrogen and fuel cell applications. HySA Infrastructure’s mission is to deliver technologies for hydrogen production (linked to renewable energy), storage and distribution. HySA Infrastructure develops applications and solutions for hydrogen production to be used in fuel cells and energy storage applications through innovative research and development.

Along with these goals, HySA Infrastructure is a leading developer of related supply chains and businesses in South Africa and internationally. The overall aim is to become a significant player in renewable hydrogen production and storage research and development, leading to the development, advanced manufacturing and application of new products, hydrogen storage materials and processes that improve the competitiveness of the South African energy sector and the quality of life for all South Africans. Future Hydrogen “HYWAY” is brought to you by Hydrogen South Africa (HySA) Infrastructure.

www.hysainfrastructure.org

PROFILE

Load-shedding

and PRICE PROTECTION

Arup has an excellent understanding of the electricity industry as well as challenges associated with the development and construction phases of energy projects, including hybrid solutions. Energy consulting associate at Arup, Justin Wimbush, shares his insights.

Justin Wimbush, energy consulting associate, Arup

HE ELECTRICITY GENERATION industry in South Africa, and indeed globally, is undergoing significant changes, both technological and organisational. Electricity prices are rising rapidly and gridsupplied electricity is not as reliable as would be desired. Increasingly, national electricity suppliers are purchasing electricity from independent power producers, and consumers are producing electricity for self-consumption, protection against load-shedding or, in some cases, for sale to utilities.

LOAD-SHEDDING OR PRICE PROTECTION It is important to clarify the drivers behind proposed generation projects in order to ensure that they are optimally designed, considering both technical and commercial aspects. The use of intermittent renewable energy technologies, such as wind or PV, will not provide protection from load-shedding. In current markets, they will, in most cases, only reduce the costs of electricity supply. The precise length of time required for a project to be commercially viable is dependent on a range of factors, including the electricity price that would normally be paid, the cost of the technology selected, cost of load-shedding to a business, and any financing costs incurred. If the project is displacing genset-generated electricity, the simple payback for a PV array could be as little as three years, depending on the cost of fuel. However, if the energy usage cost is similar to the South African Megaflex Gen or municipal tariffs, and no financing costs are incurred, then it could be as much as eight or nine years. If the main driver behind the project is protection from load-shedding, the intermittent sources of electricity will need to be augmented by either backup generators or electricity

storage. If the generators are to act as backup, rather than the main source of power, careful generator sizing is necessary to avoid over-sizing them, which will result in the generators operating for most of their lives at a non-optimal capacity. For example, generators forced to operate at less than 50% of their maximum capacity are generally inefficient, resulting in higher fuel costs and additional maintenance costs. Electricity storage in the form of hydro pumped storage is a proven technology but is generally not suitable for individual applications. A variety of other electricity storage technologies exist, including battery technologies, flywheels, super capacitors, and liquid air expansion systems â€“ some of which are more technologically mature and commercially viable than others. Flywheels are rapidly becoming more available but are generally used for short-term storage, such as for UPS-type systems. Many battery technologies exist, such as the well-known lead-acid and lithium-ion batteries, which are suitable for longer storage durations. Although the costs of storage are reducing, they are currently still high enough to require consumers to value the convenience provided when compared to diesel gensets. A particular advantage of storage is that it permits electricity to be generated during a portion of the day when tariffs are lower (such as midday) and then exported to the grid during times when the tariff is higher (i.e. between 18:00 and 20:00), which may cover most, or at least a large part, of the costs of the storage.

+27 (0)11 218 7600 | +27 (0)21 409 3500 +27 (0)31 328 8700 | www.arup.com

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 â€˘

Parker Energy Grid Tie Solutions Energy Storage | PV Solar | Wind and Other Renewable Sources We can help make energy production a breeze.From fluid management system that make drive trains on wind turbines more reliable to motion and control systems that maximize rotor efficiency while minimizing vibration, from power take-offs that withstand loads in wave power devices to advanced-cooled power conversion systems that form the heart of energy storage systems, Parker solutions play a pivotal role in renewable energy.

www.parker.com 1 800 C-Parker

www.parker.com/za parker.southafrica@parker.com 011 961 0700

PA R T N E R PA C K A G E

Wind energy IS THE WAY OF THE

future

Parker Hannifin’s expertise spans core motion and control technologies, and they apply these to make a meaningful difference in the lives of people everywhere.

ITH ANNUAL SALES of approximately $13 billion in FY2015, Parker Hannifin is the world's leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial, and aerospace markets. The company employs approximately 55 000 people in 50 countries around the world. Parker has increased its annual dividends paid to shareholders for 59 consecutive fiscal years – among the top five longestrunning dividend-increase records in the S&P 500 index. Parker Hannifin Sales Company (PH SC) China was awarded the tender to supply the HPU for Guodian 1.5 MW wind turbines on the Longyuan Mulilo De Aar Maanhaarberg onshore wind energy project. The project expects to achieve COD by 25 March 2016. Parker Hannifin Sales Company South Africa will assist with any support required. Parker has dedicated teams of wind turbine specialists working globally to assist its customers in the design of systems, subsystems, and solutions to meet the most demanding requirements, offering unbeatable global product availability and service. Parker Hannifin’s wind turbine systems and solutions are targeted for utility-scale wind turbines, and specifically multi-MW offshore turbines. “This is one of the biggest overseas projects awarded to the Parker China Wind Power team. The global service network embodies Parker’s strength as a multinational company and will help Parker China win more new exported projects in the future,” says Jack Jiang, sales director of Parker Hannifin Motion & Control (Shanghai). “Having annually provided many projects and services, Parker and Guodian United Power have more than eight years’ business cooperation. We believe that, in the future, we will still have more business opportunities with this exported

African project’s success,” says Jiang. Parker supplies the power necessary to operate pitch, yaw, and braking systems and provides backup in case of power failure, ensuring a safe stop with no risk of damage.

integrated package ensures maximum pitch control accuracy, reduced leak points, and ease of service. • Specially designed cylinders for wind turbine applications deliver reliable performance under tough operating conditions. Typically, cylinders incorporate a manifold with control valves and feature a built-in position sensor. The system maintains selected rotor pitch during normal operation. In the event of, for example, grid loss, the rotor blades are quickly feathered. • Hydraulic accumulators encompass the industry’s broadest range of piston and bladder styles. Available in steel, stainless steel, and carbon fibre construction, with optional high and low temperature seal compounds and special coatings for extremeduty service, as well as CE, ASME, CRN, and SELO certifications, Parker accumulators are the logical choice for maintaining or upgrading your wind turbine fleet. • Hydraulic power units are designed with reliability, ease of maintenance, and a wide operating temperature gauge in mind. Incorporating quality Parker valve, pump, and filtration products assures the end user a package that works right the first time. Parker has product and system solutions for today’s challenges, including for wind turbine applications that impact the following functional application areas: • gearbox and generator • blade and rotor • Nacelle Auxiliary Systems.

HYDRAULIC SOLUTIONS FOR PITCH CONTROL AND BRAKE SYSTEMS • Hydraulic pitch systems utilise heavyduty cylinders combined with integrated valve blocks and position transducers. An

+27 (0)11 961 0700 | parker.com/za

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

N U C L E A R E N E R GY

Going nuclear

in South Africa

Harnessing nuclear power, which currently provides only a small amount of South Africa’s total electricity needs, has the potential for clean and sustainable power production to complement other forms of energy, such as coal-generated and hydroelectric.

LECTRICITY CONSUMPTION and demand in South Africa has increased rapidly over the past decade. The country forms part of the Southern African Power Pool (SAPP), which has a total installed generating capacity of 54.7 GWe. Approximately 80% of this capacity is South African, and the majority thereof is coal-fired as well as maintained by state-owned power utility Eskom. Eskom currently supplies 95% of South Africa’s energy and 45% of Africa’s. In 2008, the Koeberg nuclear plant generated 12.7 TWh, which is about 5.3% of South Africa’s total electricity. In October 2010, the Department of Energy released its draft Integrated Electricity Resource Plan (IRP) for 2010-2030, which states the country’s electricity demand as well as how this demand will be met and how much it will cost. In early 2011, the IRP underwent revision and was passed by cabinet. The newly revised IRP stated that, by 2030, South Africa’s energy mix should comprise 48% coal, 13.4% nuclear, 6.5% hydro, 14.5% other renewables, and 11% peaking open-cycle gas turbine. However, the May 2011 budget speech said that 22% of new generating capacity would be nuclear and 14% coal-fired and, in December 2011, Minister of Energy Tina JoematPettersson stated that $50 billion would be spent on nuclear capacity by 2030.

KOEBERG POWER STATION Koeberg Nuclear Power Station is owned and operated by Eskom and supplies 5% of South Africa’s total energy demand, powering the majority of the Western Cape. It was built by

ABOVE RIGHT Nuclear plants are usually situated near large water bodies for cooling purposes RIGHT The Koeberg nuclear power station is located 30 km north of Cape Town, near Melkbosstrand on the west coast of South Africa

LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015 •

N U C L E A R E N E R GY Pelindaba is South Africa's main nuclear research centre

The government plans to extend Koeberg’s operating life from 30 years to 40 years, and Eskom has solicited tenders to install six new steam generators at Koeberg by 2017-2018. This contract has also been awarded to Areva. Koeberg is the only nuclear power station on the African continent and only one of three in the Southern Hemisphere. It also holds the record for the longest continuous operating Eskom unit, boasting 454 days without an interruption.

ENERGY DEAL WITH RUSSIA

French consortium Framatome (now Areva) and has been generating electricity for more than 26 years. Located 30 km North of Cape Town, the power station has twin 900 MWe class (970 MWe and 940 MWe) pressurised water reactors. South Africa’s main coal reserves are in the Mpumalanga power stations, while a large amount of the load is on the coast near Cape

Town and Durban. The choice of the location for Koeberg was made due to the geological stability of the area, the easy access to Eskom’s national grid, as well as the water of the Atlantic Ocean, which is ideal for cooling. Because it is inefficient to transport either coal or electricity over long distances, Koeberg also ensures that the Western Cape area is less dependent on the Mpumalanga power stations.

South Africa and Russia have entered into a strategic partnership in which Russia will supply up to eight nuclear reactors to South Africa. In a statement, the Russian Rosatom agency said delivering the reactors will enable the foundation of the first nuclear power plant based on Russian technology on the African continent. Minister Joemat-Pettersson said South Africa views nuclear power as an important driver for national economic growth. “I am sure that cooperation with Russia will allow us to implement our ambitious plans for the creation, by 2030, of 9.6 GW of new nuclear capacities based on modern and safe technologies,” she said in a statement. These reactors are expected to go online in 2023. South Africa has also commenced with nuclear skills development and training programmes, which will see students sent to various countries, including Russia and China, in order to attend focused training. “In this regard, 50 trainees from government nuclear industry entities were sent to China, in April 2015, for phase one nuclear training, and plans are under way to send an additional 250 trainees. “The Russian Federation has offered five new nuclear scholarships, at master’s degree level, in nuclear physics this year, while South Korea has a standing programme to train South African students in master’s programmes in nuclear engineering,” Joemat-Pettersson added.

INDEX TO ADVERTISERS 25 54

Parker Hannifin

IBC

Eskom HySA/Infrastructure NWU

Rainbow Reservoirs

Kentz

Smec

Malaysian Switchgear Distributors

Tosas

Model Maker Systems

Umgeni Water

Copper Development Association

Much Asphalt

Vermeer Equipment Supplier

Diesel Electric Services

National Asphalt

IFC

Water & Sanitation Services

OBC

Acwa Power

Arup Aveng Infraset Clearline Protection Systems CNG Holdings

60 • LEADING INFRASTRUCTURE & ENERGY YEARBOOK 2015

We shape a better world

Renewable energy for a resilient future Arup is a wholly independent organisation owned in trust, enabling us to provide unbiased, objective advice to our clients. Our extensive experience across all technical, financial and commercial aspects of renewable energy projects (wind, PV, hydro and biomass technologies), and in-depth knowledge of South African policy, regulation and processes, makes us the partner of choice for local energy projects. We have provided technical advisory services on over 4GW of renewable energy projects worldwide.

www.arup.com/Services/Renewable_energy

Water and Sanitation Services South Africa (Pty) Ltd (WSSA) is a specialised provider of sustainable water services in Southern Africa

3S Media

Published on Dec 3, 2015

The Leading Infrastructure & Energy Yearbook 2015

Published on Dec 3, 2015

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