Project Profile
The economic growth in the Mgeni System supply area resulted in rapid water demand. The system urgently needed to be augmented. Following investigation of various augmentation schemes, the Mooi-Mgeni Transfer Scheme Phase 2 in the KwaZulu-Natal midlands was identified as the preferred option. The scheme will augment the yield of the Mgeni System by 60 million m3 per annum bringing it to a total of 394 million m3 per annum.
MMTS2 entails constructing a new Spring Grove Dam on the Mooi River, Water Transfer System from the dam to the Mpofana River and a fish barrier upstream of the dam. The main beneficiaries of this project include eThekwini Metropolitan, uMgungundlovu District, and Msunduzi local municipalities. Ugu, Sisonke and Illembe municipalities fall under Umgeni Water area of supply, hence benefit indirectly from the project.
Funding
As with other projects, MMTS2 has been funded on an off-budget basis and the project costs will be recovered from the revenue generated by the sale of bulk raw water from the water users. The European Investment Bank (EIB), Agence Française de Développement (AFD) and the German Development Bank (KfW) is providing funding for this project. Project agreement negotiations between all major stakeholders were concluded in time to enable loan agreements with the funders to be effective. Also the project received an AA+ credit rating from Fitch.
Engineering
BKS (Pty) Limited was appointed as the engineering consultant for Mooi-Mgeni Transfer Scheme Phase 2. Group 5 PanDev Joint Venture (G5PJV) was identified as the preferred tenderer for the construction of the dam. The contract was awarded for R520 million and construction commenced on 21 February 2011. TCTA has engaged the service of a panel of engineering and environmental experts to facilitate quality assurance during the implementation phase.
Environmental
The Environmental Authorisation (Record of Decision) for the project was issued on 15 June 2009. Two appeals were lodged against the Record of Decision. The appeal against the pipeline was upheld by the Minister of Justice and Constitutional Development on 28 September 2010. This meant that authorisation was confirmed to proceed with the construction of the Spring Grove Dam and its associated works. The expropriation of the priority properties, that is, those properties that were directly affected by the dam construction activities and the large commercial farms in the basin, was completed on time to make way for the construction of the dam.
Socio-economic development objectives
Two TCTA staff members were seconded to the engineering consultant BKS, for a skills transfer programme. In addition, TCTA seconded one engineer-in-training and one environmental trainee to BKS for a technology/skills transfer programme. This includes mentoring, such that the trainees can attain professional accreditation by the end of the project.
Enterprise development, preferential procurement, employmeny and skills development and training
The construction contract includes socio-economic targets that will promote the following legislative objectives:
Enterprise development – which is aimed at developing a minimum of two enterprise development beneficiaries.
Preferential procurement – which promotes procurement of services and goods from black-owned enterprises, women-owned enterprises and local enterprises.
Employment targets – envisage 100% recruitment of unskilled personnel and 80% of black semi-skilled personnel from the local communities.
Skills development and training will include training of local unskilled and semi-skilled labour. A total of R1 230 million has been set aside for this purpose.
Key Challenges
Delays were experienced due to appeals against the Record of Decision and protracted negotiation processes on the institutional arrangements. However, in its endeavour to find a long-lasting solution, TCTA has maintained ongoing engagement with stakeholders and this approach is expected to yield the desired results.
