Presentation to Portfolio Committee on Water and Sanitation on TCTA Integrated Annual Report October 2017

Transcription

1 Presentation to Portfolio Committee on Water and Sanitation on TCTA Integrated Annual Report October

2 Manage the funding and debt on the infrastructure projects, on behalf of clients, in a manner that achieves cost-effective funding, taking into account current and projected market conditions as well as associated risks Implement all aspects of each infrastructure project to ensure that the service delivery objectives, of the client, are met in the most cost-effective and socio/ environmental sustainable manner

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4 Ernest & Young Inc. evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework Ernest & Young Inc. did not identify any material findings on the usefulness and reliability of the reported performance information for the selected objectives

5 Pre-implementation Phase 2B of the Olifants River Water Resources Development Project Phase 2A of the Mokolo- Crocodile River (west) Augmentation Project Mzimvubu Water Project Under Construction Acid Mine Drainage: Eastern Basin Phase 2C of the Olifants River Water Resources Development Project Post-construction Acid Mine Drainage: Central Basin Phase 2 Of the Mooi Mgeni Transfer Scheme Water transfer pipeline Water pipeline for Umgeni Water Phase 1 of the Mokolo- Crocodile River (west) Augmentation Project Operation and Maintenance Acid Mine Drainage: Short-term Intervention (Western, Central & Eastern Basins) Outfall Tunnel North of the Lesotho Highlands Water Project

6 Short-term Intervention on Acid Mine Project Commenced April 2011 Completed August 2016 Total capacity of 234 thousand m 3 per day Cost at completion R2.6 billion

7 Operation and Maintenance Costs of Short-term Intervention (Total R265 million) Western Basin 11% Eastern Basin 34% R29 million R90 million R146 million Central Basin 55%

8 Delivered 794 million m 3 Outfall Tunnel North of the Lesotho Highlands Water Project

9 Phase 2C of the Olifants River Water Resources Development Project The first 10 km has been able to deliver water to the water treatment works at Steelbrug since January 2014 Supply capacity of 80 million m 3 per annum Projected capital cost at completion R2.3 billion Projected date for completion of the balance of the works, November 2017

10 EMPLOYMENT

11 Employment on Projects under Operation & Maintenance Employment Gender Ethnic group Female Male HDI Non-HDI Total AMD O&M Eastern Employed AMD O&M Central Employed AMD O&M Western Employed LHWP Employed O&M Total Total

12 Employment on Projects Under Construction (ORWRDP2C) Origin Gender Ethnic group Employment Group Local Elsewhere Female Male HDI Non-HDI Mar-17 Total Mar-16 Unskilled Semi-skilled Other (skilled & staff) Total

13 Staff Complement and Employment Equity Classification African Coloured Indian White Foreign nationals Level Current Target Current Target Current Target Current Target Current Target M F M F M F M F M F M F M F M F M F M F Top management Senior management Professionally qualified Skilled Semi-skilled Unskilled Total

14 People Living with Disabilities Level Current: 2016/2017 Target: 2016/2017 Top management Senior management Professionally qualified 1 4 Skilled 1 3 Semi-skilled Unskilled Total 2 7

15 In our opinion as Ernest & Young Inc. the financial statements present fairly, in all material respects, the financial position of Trans-Caledon Tunnel Authority as at 31 March 2016, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Public Finance Management Act of South Africa.

16 Irregular Expenditure (Services not procured in accordance with regulation but value for money received) Total R49,468 million (4.6% of cash paid to service providers) Contractor for the Operation of the Central Basin Acid Mine Drainage Plant Provision of Disaster Recovery Services Appointment of a forensic auditor Appointment of Executives Changing criteria during the evaluation of a photocopier tender International travel

17 Fruitless and Wasteful Expenditure (Where no value as received for the expenditure incurred) R (13 incidents) 0,1% of total operating expenditure

18 Budget versus Actual Unit Charges Finance Costs Capital Expenditure Actual Budget Description Budget (R million) Actual (R million) Capital Unit and Bulk Operations & Royalty Charges Finance Costs Capital Expenditure

19 Capital Expenditure per Project Acid Mine Drainage Vaal River System Budget (R million) Actual (R million) Acid Mine Drainage: Short-term Intervention 296,9 84,5 Phase 2 of the Lesotho Highlands Water Project 1 387,0 183,2 Acid Mine Drainage: Long-term Solution 2 378,0 - Phase 2 of the Mooi Mgeni Transfer Scheme 77,8 83,8 Olifants River Water Resources Development Project 239,1 138,5 Mokolo Crocodile River (west) Augmentation Project Phase 1 261,7 83,5 Phase 2A 205,6 - Other 32,2 0,1 Total 4 880,4 573,6

20 Total Expenditure Capital Expenditure 11% R130 R574 million million Royalties, LHDA and LHWC 20% R1 044 million R3 284 million Finance Costs 61% R162 million R291 million Staff Costs 3% Other Costs (Opex) 5%

21 Debt per Project Komati Water Scheme Augmentation Project 5% Mokolo Crocodile River (west) Augmentation Project 5% Phase 2 of the Mooi - Mgeni Transfer Scheme 7% Vaal River Eastern Subsystem Augmentation Project 13% R1 573 million R1 313 million R1 934 million R3 744 million Berg Water Project 2% R720 million R million Vaal River System 68%

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