COGTA City of Tshwane Engagement with Oversight Portfolio Committee on - Mr. Mpho K. Nawa Head Administrator's presentation 04 June 2020
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City of Tshwane Engagement with
Oversight Portfolio Committee on
COGTA
Mr. Mpho K. Nawa
Head Administrator’s presentation
04 June 2020
Gauteng Executive Committee
announcement of 10
Administrators
• 10-member team of experts
(accounting, corporate
governance, finance, public
service, project management
and labour law).
• Messrs Mpho Nawa and
Mavela Dlamini were
appointed as Tshwane's
administrator acting city
manager respectively
• The team hit the ground
running and assigned portfolios
in giving effect to TOR
Administrators
Governance Structure
Name of the Administrator Allocated Portfolio
Head Administrator
Mpho Nawa Regional Operations and integrated service delivery
framework
Mavela Dlamini Acting City Manager/ Accounting Officer
Rianda Kruger Good Financial Management
Masabatha Mutlaneng Institutional Building and Shared Services
Thuli Njapa- Mashanda Audit and Forensic issues
Shiva Makotoko Wonderboom Airport and Grants & Subsidies
Gilberto Martins & Lefadi Makibinyane Utility Services and Infrastructure Management
Supply Chain Management & Contract
Lesedi Mere
Management
Lebohang Mahaye Compliance
Envisaged Outcomes of the
Section 139 1 (c) Intervention
The brief was TO GET THE CITY WORKING AGAIN
a) Exercise executive authority in the city
b) Ensure City’s financial health
c) Address governance challenges
d) Address infrastructure challenges
e) Ensure provision of services to the people
f) Priority Projects e.g. relocation of Mamelodi flood victims
g) Attend to Hammanskraal water crisis
h) Reconnect with residents of Tshwane
i) Develop an overall turnover strategy
j) Election of the new Council
City of Tshwane COVID 19
NATIONAL COMMAND COUNCIL
PROVINCIAL COMMAND COUNCIL
NATJOC
PROVJOC
NDMC CoT JOCOM
Municipal Command Council
Exco
DOC
Extended Exco
STRATEGIC COMMITTEE
DOC GH’s
Homeless task team TECHNICAL COMMITTEE Operational directives
Emergency Evacuation team DOC
DISASTER OPERATIONS CENTRE Dept Reps
EMERGENCY PLANNING DOC COORDINATION LOGISTICS COORDINATOR
ROC TMPD USD CME ESD Health CSDS H&HS EAM SAPS
R&T
5
City of Tshwane COVID-19
interventions
• Formalise CoT Covid19 Committees namely :
• Strategic Committees that meeting Tuesday and Thursday
• Tactical Committee Monday and Wednesday
• Operations Committee meets everyday
• Rollout monitoring & preventative programmes
• The City participate in the NATJOINTS, PROVJOINTS and PDMC
• Sanitised City owned buses as well as taxi ranks in partnership with
other stakeholders
• Increase the provision of water and sanitation services
• CoT identified a lists of quarantine sites
• Homeless people are now housed various shelters across the City
including Centurion Cricket sports ground
• City has rolled out door to door testing targeting high risk areas
COT COVID 19 Help Line
7
OUR COVID-19
PRESSURE POINTS
• No. of informal areas: 227 settlements.
• Levels of homelessness and destitution
• Urban population densities
• Service levels in township areas
• Infrastructure backlog
• Water supply
• public transport nodes
Provisioning of Water &
Sanitation Services
WATER
REGION No. OF 2500L 5 000 L 10 000L
NUMBER OF 10 000L MOBILE 18 000L MOBILE
INFORMAL WATER WATER WATER
HOUSEHOLDS WATER TANKERS WATER TANKERS
SETTLEMENTS TANKS TANKS TANKS
1 82 82 790 0 94 14 48 1
2 22 62 973 37 90 50 46 0
3 29 65 263 0 166 0 39 0
4 13 39 348 0 58 12 23 0
5 22 38 871 0 235 10 45 2
6 30 44 957 10 82 10 33 0
7 29 115 08 0 101 10 30 0
Total 227 345 710 47 830 106 264 3
TOTAL: 983 water tanks
City provision:
NDHW & S donated: 37 x 2 500L water tanks Private donations:
492 x 5 000L water tanks
327 x 5 000L water tanks 9 x 5 000 L water tanks
252 x 10 000L mobile water tankers
102 x 10 000L water tanks 4 x 10 000 L water tanks
Volume of water supplied to date: 438 480 kl 12 x 10 000L mobile water 10 X 2 500 L water tanks
Cost of water supplied to date: R5 090 752.80 tankers
3 x 18 000L mobile water tankers
Provisioning of Water & Sanitation
DONATIONS
REGION NUMBER OF DONATED WATER TANKS OPERATIONAL
1 64
2 115
3 45
4 19
5 59
6 31
7 42
Total 375
10Provisioning of Water & Sanitation
Services
SANITATION – CHEMICAL TOILETS
NUMBER OF
NUMBER OF NUMBER OF CHEMICAL
REGION INFORMAL
HOUSEHOLDS TOILETS
SETTLEMENTS
1 82 82 790 1 070
2 22 62 973 67
3 29 65 263 161
4 13 39 348 267
5 22 38 871 725
6 30 44 957 555
7 29 11 508 283
Total 227 345 710 3 128
• 2334 toilets ordered and 1 356 delivered in Region 1,3,4,5,6 & 7
11
• Toilets are cleaned and maintained twice a week.De- population Plan: Mamelodi Hostel
Intervention Progress
De- • Conditional approval secured with the Building Control Section – final approval on
population of submission of storm water management system. Engineers appointed by the HDA still
1000 people working on the solution to be presented to the project management team and the City;
into TRAs • Engineers also looking at options and costing for augmentation of sanitation and provision
of fire safety;
• Contractors busy with the manufacturing of pre-fabricated structures off-site;
• It is anticipated that the first batch of units will be installed by the end of next week;
• A total of 22 jobs have been created during the first 2 weeks of implementation;
• Further engagements with the community group that stopped work at the quarantine site
took place on 27 May 2020. Broader consultation with the reps of the different group was
undertaken on the 28 May 2020
Durability Thermal Hygiene 12SOME KEY TSHWANE
BOTTENECKS
Our high level assessment
1. Lack of a single cohesive vision
2. Collapse of governance and administrative processes
3. Alienation of communities from government
4. Non-expenditure of grants and subsidies
5. Neglected Infrastructure
6. Dysfunctional LLFs
7. Reduction in collection of revenue
8. Lack of Performance management
9. Litigations and suspension
10. Inefficient IGR Processes Poor
SERVICE DELIVERYFINANCE
Revenue collection-
segmentation
The collection rate for the month of April 2020 is 78.47% (down
from 81.96%) and the Payment Level is 86.2% (down from
89.3%).
Month Collection Ratio Payment Level
Collection rates and payment levels
Jul 2019 59.01% 123.4%
Aug 2019 78.9% 111.0%
140.0%
Sep 2019 77.67% 109.9%
120.0%
Oct 2019 80.96% 98.0%
100.0%
Nov 2019 76.25% 88.9%
80.0%
Dec 2019 79.68% 89.4%
60.0%
Jan 2020 77.78% 86.4%
40.0%
Collection Ratio Payment Level
Feb 2020 78.75% 87.4%
20.0%
March 2020 81.96% 89.3%
0.0%
April 2020 78.47% 86.2%Revenue collection-
segmentation
• Collection per service type is significantly lower in April
2020 vs March 2020 (R908m lower)
• Projections are that collections will be even lower in May
and June.
Collection Per Service Type Month on Month Collection per service type
2,500,000,000.00
March 2020 April 2020 Variance
Service type R’000 R’000 R’000
2,000,000,000.00
Property
Rates
583 598 342 653 (240 945)
1,500,000,000.00
Electricity 1 134 077 738 957 (395 120)
Water 379 193 182 932 (196 261) 1,000,000,000.00
Sewerage 99 400 57 922 (41 478)
Refuse 103 556 68 989 (34 567) 500,000,000.00
Total 2 299 824 1 391 453 (908 371)
0.00
Property Electricity Water Sewerage Refuse Total
Rates
20-Mar 20-AprThe projected under-collection of revenue
for the remainder of the 2019/20 financial
year (ending 30 June 2020) segmented into
service category…(in Million of Rand)
Current Year TD
Service Type Variance
Budget Actual
Property Rates 7 539 6 243 (1 295) -17%
Electricity 12 002 9 910 (2 092) -17%
Water 4 083 3 634 (449) -11%
Sewerage 1 112 1 013 (98) -9%
Refuse 1 335 1 166 (168) -13%
Total 26 070 21 967 (4 103) -16%The projected under-collection of revenue
for the remainder of the 2019/20 financial
year (ending 30 June 2020) segmented into
service category…(in Billion of Rand)
Calculations done based on economic studies
Billing as
Adjust- Expected Expected
Original per Special Net
Description ment impact impact on
Budget Adjustment effect
Budget on billing Collection
Budget
Million Million Million Million Million Million
Revenue by
Source
Property rates 7 490 7 539 7 539 (897) 6 642
Electricity revenue 13 454 13 440 (1 451) 12 002 (1 279) 10 724
Water revenue 4 293 4 331 (210) 4 083 (165) 3 918
Sanitation
1 171 1 201 (60) 1 112 (62) 1 050
revenue
Refuse revenue 1 688 1 587 (353) 1 335 (29) 1 306
Total Revenue 28 096 28 097 (2 074) 26 070 (2 431) 23 639The projected under-collection of revenue
for the remainder of the 2019/20 financial
year (ending 30 June 2020) segmented into
service category…(in Millions of Rand)
Calculations based on April Actuals: Iit seems as if the projected billing decrease of R2 billion
might decrease to R1,8 billion. The total expected impact (taking collections into account) would
thus be R4,2 billion.
Billing per
Projected
Special Variance Projected Variance Variance to
Original Year TD billing May
Description Adjust- to Special Year end to Special Original
Budget Actual and June
ment budget billing budget budget
2020
Budget
R’Million R’Million R’Million R’Million R’Million R’Million R’Million R’Million
Revenue by Source
Property rates 7 490 7 539 6 243 (1 296) 1 219 7 462 (77) (29)
Electricity revenue 13 454 12 002 9 910 (2 092) 2 063 11 973 (29) (1 481)
Water revenue 4 293 4 083 3 634 (449) 657 4 291 208 (2)
Sanitation revenue 1 171 1 112 1 013 (99) 211 1 224 112 52
Refuse revenue 1 688 1 335 1 166 (169) 219 1 385 50 (303)
Total Revenue 28 096 26 070 21 966 (4 104) 4 368 26 334 264 (1 762)Projected under-collection of revenue for
the 2020/21 financial year (from 1 July
2020 to 30 June 2021)
• In order to accommodate the lower collection levels, the 2020/2021
expenditure budget will have to be adjusted downwards.
• With the additional Covid-19 costs, it would be extremely challenging,
bearing in mind that the normal service delivery levels in all areas will
have to be maintained.
• Cost containment measures will be implemented, but these shouldn’t
result in significant savings as they were already implemented in
2019/2020.
• Should grants be appropriated for the revenue projects focus on the
collection of revenue, as well as the improvement of lost billing could be
addressed.The projected under-collection of revenue
for the 2020/21 financial year (from 1 July
2020 to 30 June 2021)
Collection Collection
Draft Budget
Description Year 2020/21 Year 2020/21
Year 2020/21
70% 80%
R’M R’M R’M
Revenue By Source Billing 70% 80%
Property rates 8 395 5 877 6 716
Service charges - electricity
13 346 9 342 10 677
revenue
Service charges –
4 548 3 183 3 638
water revenue
Service charges –
1 260 882 1 008
sanitation revenue
Service charges –
1 766 1 236 1 413
refuse revenue
Total Revenue 29 315 20 520 23 452Relief measures provided to local
residents and local businesses
• The City has put together an incentive programme which is aimed at assisting
residents and businesses during these hard times of Covid-19 pandemic by
implementing optional payment holidays.
• It further assists in bringing their municipal consumer accounts up to date and
incentivise star payers to continue to keep their accounts up to date throughout.
• The following options are available for residential and business debtors under the
incentive program which will run from June 2020 to November 2020
• ASSISTANCE:
• OPTION 1 - Customers that are up to date, but cannot continue to make full
payments
• OPTION 2 – Customers in arrears (debt not older than 12 months)
• OPTION 3 – Customers in arrears (debt older than 12 months)
• INCENTIVES / AWARDS:
• OPTION 4 - Customers that are up to date and can continue payments
• OPTION 5 – Customers that can pay in advanceRelief measures provided to local
residents and local businesses
OPTION 1: Customers who suddenly find themselves not able to pay their full
account can arrange payment holidays as follows:
• Payment of 25% of current balance for a 2-month period with no interest
incurred or charged on arrears and 3 months to catch up payments
• Payment of 50% of current balance for a 4-month period with no interest
incurred or charged on arrears and 3 months to catch up payments
• Payment of 75% of current balance for a 6-month period with no interest
incurred or charged and 3 months to catch up paymentsRelief measures provided to local
residents and local businesses
OPTION 2 : Customers that are in arrears: Debt less than 12 months:
• Pay full outstanding capital amount once-off, get 7,5% of payment as
credit on account and 100% of interest reversed.
• Pay outstanding capital amount in full within 6 months, as well as current
balances for the 6 months (thus account up to date within 6 months) and
after the sixth payment, 100% of interest levied will be reversed.
• If above arrangement exceeds six months, but is within 8 months, then
25% of the interest balance will be written off.Relief measures provided to local
residents and local businesses
OPTION 3 : Customers that are in arrears: Debt more than 12 months (Option
2 will be available for the portion of debt below 12 months)
• Pay full outstanding capital amount once-off, get 100% of interest reversed
OPTION 4 : Customers whose accounts are up to date and can continue with
payments:
• Pay account in their municipal account full and on time will get 15% of the
June to November property rates payment as a credit against their balance.
• This will decrease the payment made in December 2020. (limited to R100,
000 per resident).Relief measures provided to local
residents and local businesses
OPTION 5 : Customers that are up to date and able to make payments in
advance:
• Pay the full municipal account in advance for one month and receive 20%
discount on property rates and levies for the month paid in advance.
• Pay the full municipal account (property rates and levies) in advance for three
months and receive 25% discount on rates for the month paid in advance.
• Pay the full municipal account in advance for six months and receive 30%
discount on rates for the six months paid in advance.
It is unlikely that option 5 will have many uptakes, but it would create an upfront
cash flow that would benefit the City.Assistance required from Provincial
and National Governments
• The additional Covid-19 expenditure for 2019/2020 as well as 2020/2021 has
a significant impact on the ability of the City to deliver its mandate.
• Additional costs relating to food parcels and homeless plans are expected to
amount to at least R850 million.
• The City would need R290 million per month to provide food parcels for
500,000 households (the projected number of households in need)
•
• This was not planned for, and the City thus requests funding to:
• Deal with the current year end deficit
• Deal with the 2020/2021 budget – the City cannot submit an unfunded
budget, and currently due to additional Covid19 costs and further loss of
revenue, this will be the case.HAMMANSKRAAL WATER
Update on the Rooiwal WWTW
Phase 1 Upgrade Project
• ERWAT:
• Appointed as Implementing Agent
• MOU has been signed
• Appointment letter issued on 5 February 2020 and accepted
• Draft SLA Between CoT and ERWAT for Rooiwal Phase 1 submitted for
approval
• Project Communication Strategy in place
• Purchase Order (PO) has been issued
• ERWAT Responsibility:
• Implementing Agent (Overall Management of the Phase 1 Project)
• Overall project management responsibilities on behalf of the Client
(City)
• Managing the consultant and contractor on behalf of the Client (City)
• ERWAT payment is 5% fee of total project cost as regulated by National
Treasury (5% of estimated R370m total project cost)
29Update on the Rooiwal WWTW
Phase 1 Upgrade Project
• Contractor: CMS, NJR and Blackhead JV
• Appointment letter issued on 5 August 2019 and accepted
• Contract signed
• Construction contractual documents submitted
• Guarantee issued and in place
• Construction program submitted (to be adjusted 7 days post all
community engagements are completed)
• EPWP Worker Program
• CoT Approved Framework being applied
• Total of 46 labourers required and to be appointed in phases
• Outstanding Community Related Matters due to COVID 19:
• Community project introduction meeting was done on 13 May 2020
• Establishment of Project Steering Committee + appt of CLO is done
• Appointment of sub-contractors is in progress
30Update on the Rooiwal WWTW
Phase 1 Upgrade Project
• Consultant: Royal Haskoning DHV
• Appointment issued on 26 February 2020 for 36 months and accepted
• Purchase order being proceed – 28 April 2020
• Currently busy with reviewing the scope of work for phase 1 to improve
sequencing
Contract Status Report:
• Contract Amount: R290m
• Commencement date : 4 October 2019
• Initial Completion date : 5 October 2021
• Extension of time due to rainfall or other delays: None approved
• New expected completion date : 30 May 2022 (Contractor’s estimate)
• Contract period : 24 Months (Contractor requested to compress it to 15
months)
• Site hand over : 9 March 2020
• Percentage construction complete : 1 %
• Project was on hold due to COVID -19
• Contractor went back to site on 18 May 2020 31Update on the Rooiwal WWTW
Phase 1 Upgrade Project
Scope of phase 1:
• Upgrading of the Inlet works at the Rooiwal North Plant which entail the
following:
• Removal of the macro burner.
• Installation of a new conveyor and screenings compactors.
• Refurbishment of the roof trusses and replacement of the roof
sheeting.
• Upgrading of the Degritter with the installation of a grit classifier for
each Degritter.
• New Degritter pumps.
• Civil work for the removal of the required grit bins.
• Construction of 1 primary settling tank at the Rooiwal North Plant for
Module 2
• Alleviate poor drainage in and around the inlet works building.
32Update on the Rooiwal WWTW Phase 1 Upgrade
Project
Scope of phase 1:
• Upgrading of the biological reactors mixing and aeration system, which
entails the following:
• Replacement of the air diffusers and lateral pipework feeding the
diffusers in the biological reactor.
• Installation of additional submersible mixers with new davits in the
biological reactor.
• Installation of new submersible mixers in the current positions and
upgrading of the submersible mixers motor control centres.
• Upgrading of the anaerobic digester on the Rooiwal East Plant, which
entails the following:
• Replacement of the gas collection system and install a new
digester heating system.
• Civil refurbishment of the anaerobic digesters if necessary.
33Update on the Rooiwal WWTW
Phase 1 Upgrade Project
Scope of phase 1:
• Upgrading of the anaerobic digesters on the Rooiwal West Plant, which
entails the following:
• New sludge distribution system for the anaerobic digesters.
• Install mixing systems in the anaerobic digesters.
• Upgrading of the top sludge dewatering facility, which entails the
following:
• Installation of new belt filter presses.
• Installation of new polyelectrolyte dosing system.
• Installation of new electrical control equipment.
• New building to house belt filter presses.
• Roof over existing conveyor belt.
34Update on the Rooiwal WWTW
Phase 1 Upgrade Project
Scope of phase 1:
• Upgrading of the Rooiwal North Plant flow balancing tank control
systems, which entails the following:
• New control systems on the West balancing tanks’ inlet control
valves, outlet control valves and pump station.
• The connection of a concrete 525mm diameter pipe between
Rooiwal West Plant and Rooiwal East Plant.
• Construction of a sludge pipeline from the Rooiwal North Plant
primary settling tanks to the Rooiwal East Plant raw sludge pump
station.
• Installation of additional forced ventilation in the blower building.
35Update on the Temba Water
Purification Plant Upgrade Project
• Construction of the plant upgrade is complete
• The plant has been commissioned
• The practical completion certificate was issued on 14 February 2020
• The retention period has started
• The plant is able to produce 120 Ml/day, however the current demand
is on average 80 Ml/d
• The plant still struggles with water quality issues due to high
concentrations of ammonia, nitrate and nitrite discharged at the
Rooiwal Waste Water Treatment Plant
36Request For Proposal for Alternative
Technological Solutions for Rooiwal
WWTW and Temba WTP
• The City has decided to go out on a Request for Proposal (RFP) for
Alternative Technological Solutions to improve the final effluent
quality at Rooiwal Waste Water Treatment Plant.
• The RFP is also aimed at rehabilitation of the Apies River as well as
Dredging (desilting) of the Leeuwkraal Dam.
• The proposal to go the RFP route was approved by the
Administrators in May 2020.
• The specification for the RFP has been developed and is planned
to be advertised as soon as it is approved by the Bid Specification
Committee sitting of 5 June 2020.
• The objective is to find an immediate or short-term solution for the
Hammanskraal water quality issues.
37NELLMAPIUS EXT 22 SUPPLY OF
ELECTRICITYOverview Of Infeed Stations
Buffel
Hartebeespoort
Wildebees LEGEND
Tribor
Kwagga Existing
Njala
Infeed
Rietvlei Planned
Infeed
395 Year Master Plan
Wildebees Infeed station
Capacity 40MVA
Current Load 0MVA
Capacity 40MVA
Current Load 42MVA
Planned Capacity 250MVA
Capacity 900MVA Current Load 0MVA
Current Load 760MVA
Capacity 750MVA
Current Load 730MVA
Capacity 250MVA
Current Load 160MVA
40NELLMAPIUS EXT 22 MAPS
NELLMAPIUS EXT 22
NELLMAPIUS EXT 22
Nellmapius Ext 22
“RDP Portion & Mixed Development"
• Nellmapius Ext 22 falls under City of Tshwane Electricity Distribution License area.
• The township will be supplied from Hatherley 132/11kV Substation.
• The area has two portions which are differentiated as RDP Portion and newly
formalized area.
• Nellmapius Ext 22 (RDP Portion)
• The area has 1330 RDP houses and 550 units for Rental Stock.
• Provincial Human Settlement Department is responsible for providing internal electricity
network.
• Information received from Gauteng Human Settlement Department, is that the electrical
contractor has been appointed and will assume site.
• The City of Tshwane is responsible for verifying and approving electrical reticulation
design and provision of bulk electricity.
• Design Approval:
• The Internal Reticulation design was approved by the City on the 24th of July 2019.
• Provision of bulk electricity:
• Bulk electricity for supplying Nellmapius which will be supplied from Hatherley
substation.Nellmapius Ext 22
“Newly Formalised Portion”
• The City is responsible for electricity bulk and internal reticulation.
• The newly formalised portion of Nellmapius Ext 22 has 773 stands.
• The contractor has been appointed and commenced with the
electrification project in February 2020.
• The electrification project is under way and expected to be completed
by end of Dec 2020.Hatherley 132/11kV
Substation Project
• The substation suffered theft and vandalism over time, and had to
be reinstated to its original condition which took sometime.
• The reinstatement of the substation took place in parallel with
Power Line construction and was completed in March 2020.
• Testing, commissioning, synchronization, integration and
communication of the substation with the City Grid took place from
July 2019 until March 2020.
• Substation Switchyard was energized on the 09th of March 2020.
• After energizing transformers on the 25th of March 2020, the
network was stable and operated normally until the Neutral Earthing
Compensator (NEC) exploded which resulted in the switching-off of
the transformers and further technical investigation and re-testing.
• The date for energizing the substation following the repairs is
targeted as end of June 2020.Conclusion 1. Both Hatherley Power Lines and Hatherley Substation Projects encountered social and technical challenges during their construction period respectively. 2. Gauteng Human Settlements will provide the internal electricity to the RDP Portion and Mixed Development of Nellmapius Ext 22 whereas City of Tshwane electrifies the Newly Formalised Portion. 3. City of Tshwane has approved the electrification designs of the RDP Portion and Mixed Developments, and is supporting the Province as and when necessary on the project. 4. Hatherley 132/11kV 120MVA Substation is planned to be energized at the end of June 2020. 5. The provision of electricity to all Households will be achieved once both Gauteng Human Settlements and City of Tshwane have completed their electrification projects.
GRATITUDE
The city of Tshwane
is truly grateful for the interest shown by
the Parliamentary Portfolio Committee in
the work we do and the difficulties of
our operational environment.
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