LESOTHO HIGHLANDS WATER PROJECT PHASE II. Progress Update 10 JANUARY Mzamo Lephoma

Transcription

1 LESOTHO HIGHLANDS WATER PROJECT PHASE II Progress Update 10 JANUARY 2018 Mzamo Lephoma

2 CONTENTS Scope of Phase II Progress Update WT Progress Update - HP Legal Instruments Procurement Guidelines Participation by Basotho Corruption & Conflict of Interest Opportunities Concluding Remarks

3 PHASE II SCOPE TWO KEY COMPONENTS Water Transfer Hydropower Generation

4 PROGRESS UPDATE WATER TRANSFER

5 PROGRESS TO DATE Procurement commenced April 2014 Community Consultations Reservoir Demarcation Asset Registration commenced Geotechnical Investigation Stage 1 Polihali Basin and PWAC ESIAs Engineering Designs in progress

6 AWARDED CONTRACTS - ENGINEERING (10) 3004 Main Access Road 3006 Polihali Dam and Appurtenant Structures 3007 Polihal-Katse Transfer Tunnels 3008 Bulk Power & Telecoms 3009 Project Housing & Camps 3013 Aerial Photography and Lidar Survey 3014 PNEAR (Mapholaneng to Dam Site) 3015 Geotechnical Investigations 3017 Reservoir Demarcation 3022 Diversion Tunnel LHDA Briefing - 16th April Katse 6

7 AWARDED CONTRACTS ENVIRONMENT & SAFETY (8) 6004 ESIA Main Access Corridor 6006 RAP Main Access Corridor 6010 SHEQ Framework 6013 RAP - PNEAR (In-house) 6014 ESIA - Dam Basin 6015 RAP Dam Basin 6017 RAP Katse Side 6025 Development & Implementation of Cultural Heritage Plan LHDA Briefing - 16th April Katse 7

8 AWARDED CONTRACTS OTHER CONTRACTS (3) 2223 Project Management Unit 9004 Insurance Broker Services 4016 Geotechnical Drilling Works A TOTAL OF 21 CONTRACTS AWARDED WT COMPONENT LHDA Briefing - 16th April Katse 8

9 CONSTRUCTION CONTRACTS ON OFFER Roads and Bridges: Tender Stage PNEAR Design Stage PWAR NAR Rehabilitation Major Bridges o Senqu 600m x 120m o Khubelu 150m Feeder Roads and Pedestrian Bridges

10 PNEAR 16km Class A Road Improved Drainage and Geometric Alignment 6km new alignment above FSL Slope Stabilisation

11 PWAR 55km Class A Road Ha Seshote to Polihali 3 Bridges 60-80m spans Mountainous Terrain 2 Contracts intersect at Mokhoaba Junction 20 months construction

12 Feeder Roads and Bridges Master Plan & ESIA Potentially 150km Class B Road Pedestrian Bridges Major Bridges at Senqu Crossing and Khubelu Crossing

13 CONSTRUCTION CONTRACTS ON OFFER Bulk powerlines and telecommunications Project housing and associated infrastructure Resettlement of Communities Ancillary public service facilities

14

15

16 CONSTRUCTION CONTRACTS ON OFFER Polihali Dam 165m high CFRD 50m high Saddle Dam Side Channel Spillway Diversion Tunnel Tender Stage

17 CONSTRUCTION CONTRACTS ON OFFER Transfer Tunnel 38km x 5m NB diameter Controlled Intake

18 PROGRESS UPDATE HYDROPOWER COMPONENT

19 Further Feasibility Studies Scope Hydropower Generation Desired Outcome - Bankable Feasible Project Investigated Options Pump Storage Scheme (PSS) Conventional Hydropower Assessment of Existing LHWP Installations (Mini- Hydro, Revamping of Muela Hydro)

20 CONSULTATIONS LESOTHO STAKEHOLDER Lesotho Electricity Company (LEC) Lesotho Electricity &Water Authority Department of Energy Water Affairs and Water Commissioner Lesotho Meteorology Services LHDA Briefing - 16th April Katse 20

21 CONSULTATIONS REGIONAL STAKEHOLDERS SAPP Project Advisory Unit National Energy Regulator of SA (NERSA) EIUG (Energy Intensive User Group) SA Eskom Department of Energy (DoE) RSA LHDA Briefing - 16th April Katse 21

22 CURRENT STATUS Pump Storage Feasibility - Complete - Outcome to be presented to Project Authorities Conventional Hydropower - Screening from 53 to 6 Options - Geotechnical Investigations to be done - Optimization of Grid Capacity to be done - 3 or 4 credible option to be presented to Authorities LHDA Briefing - 16th April Katse 22

23 AWARDED CONTRACTS HYDROPOWER FEASIBILITY 3021 Project Management Services 3010 Hydropower Feasibility Further Studies 2 CONTRACTS AWARDED HP COMPONENT LHDA Briefing - 16th April Katse 23

24 PHASE II PROGRAME WT- COMPONENT - Feasibility to Design Main Works to Construction Main Works to Commissioning HP COMPONENT - Further Feasibility studies to Design Main Works to Construction Main Works to Commissioning LHDA Briefing - 16th April Katse 24

25 LEGAL INSTRUMENTS

26 LHWP TREATY The Treaty commits the two Governments to the implementation of Phase 1 and subjects other phases to negotiations Provisions of the 1986 Treaty & its Protocols remain valid unless otherwise amended by the Phase II Agreement

27 LHWP TREATY REVIEW Article 18 Reviews at intervals of 12yrs Or as the Parties may agree. - 6 Protocols = Indication of On-going review process - Phase II Agreement = Another evidence Review process has started at Ministry Level and the Term of Reference will be presented to Cabinet Soon. LHDA Briefing - 16th April Katse 27

28 PROCUREMENT GUIDELINES

29 PROCUREMENT PRINCIPLE - PHASE II AGREEMENT ARTICLE (a) Competitiveness, Transparency, Cost Effectiveness & Quality Subject to 10(a) being met, the following shall apply 10 (b) Preference Order Lesotho, RSA, SADC then Other 10 (c) Firms from Lesotho and RSA shall share value of all infrastructure work equally on monetary basis, taking into account shareholding, operational experience, etc LHDA Briefing - 16th April Katse 29

30

31 LHDA PROCUREMENT POLICY COMPETITIVENESS - Prevents Monopolization & Promotes Fair Distribution - Applies Restrictions Number of Contracts or Value of Work - Tendering with different entities for the same contract Not Allowed TRANSPARENCY - Evaluation based on pre-determined criteria Quality/Functionality Preference Price LHDA Briefing - 16th April Katse 31

32 LHDA PROCUREMENT POLICY QUALITY/FUNCTIONALITY - Quality-based Evaluation minimum pass or 70% COST EFFECTIVENESS - Lowest Price not guaranteed to win points based on Quality/Functionality - Experience Preference - Participation Price LHDA Briefing - 16th April Katse 32

33 PARTICIPATION BY BASOTHO

34 DEALING WITH 50:50 (Infrastructure) Article 10 (c) Equal on monetary basis Minimum Threshold Specified Percentage allocation on the basis of complexity and operational experience Aim to achieve the objective eventually 10 (c) Must be read with 10 (a) and 10 (b)

35 PREFERENCE SCORING OWNERSHIP/JV PARTICIPATION EMPLOYMENT Lesotho & RSA Registered Companies (Including Black Owned) Basotho and RSA Black People As % of Total Man Hours/days/months PROCUREMENT Goods & Services from Lesotho & RSA Black Owned Companies As % of Procurement Budget ENTERPRISE DEVELOPMENT Training of Lesotho & RSA Black Owned Companies As % of Tendered Sum SKILLS DEVELOPMENT Training of Basotho and RSA Black People As % of Tendered Sum

36 ACHIEVED PARTICIPATION GOALS As at October Unaudited Participation Goals for the awarded consultancy service contracts were as follows: Fees to Lesotho Nationals = 38.2% (M ) Fees to RSA Nationals = 58.8% (M ) Fees to Other Nationalities = 3.0% (M ) M The above is monitored and assessed on monthly basis The contracts make provision for these to be audited

37 CORRUPTION AND CONFLICT OF INTEREST

38 Anti Corruption Policy LHWP Anti-Corruption Policy included in tender Documents 100% Compliance creates better chances of success Zero Tolerance on unscrupulous dealings/activities

39 Conflict of Interest (CoI) Declare any real or perceived Conflict of Interest Declaration does not affect chances of success Use the LHDA whistleblowing Policy

40 OPPORTUNITIES

41 FINANCIAL SERVICES PROVIDERS Support - Guarantees/Securities Tender Security Performance Guarantee Advance Payment Guarantee Retention Guarantee.

42 CLEANING SERVICES

43 GARDENING SERVICES

44 LEGAL SERVICES Permit Application Employment Contracts Tax Matters Legal Opinions

45 TRANSPORT SERVICES

46 ACCOMMODATION

47 KEY CONTACTS LHDA Website LHDA Information Office 1 st Floor, Tower Building LHDA Offices Tlokoeng Mokhotlong

48 CONCLUDING REMARKS Transparency, Quality, Competitiveness & Cost Effectiveness are Key Profile and sell your businesses to potential Partners Magnitude of work require joint efforts Readiness by the Local Business Sector & Honesty

49 THANK YOU AND GOOD LUCK