2017/18 Mid-Year USDG Performance Assessment

Transcription

1 2017/18 Mid-Year USDG Performance Assessment

2 USDG EXPENDITURE AS AT 31 DECEMBER 2017 BUILT ENVIRONMENT 1746, , ,973 34,73 HOUSING 395, , ,900 32,70 ROADS & STORMWATER ENGINEERING 143,730 49, ,892 34,32 ETHEKWENI TRANSPORT AUTHORITY 218,286 58, ,911 27,01 WATER 371, , ,439 36,51 SANITATION 327, , ,945 54,57 SOLID WASTE 24,395 0,228 24,395 0,93 COMMUNITY & EMERGENCY SERVICES - HSS 34,239 2,802 32,718 8,18 FIRE & EMERGENCY SERVICES 24,000 0,056 22,000 0,23 WARD BASED PROJECTS 206,649 51, ,772 24,74 LED & JOB CREATION 174,125 10, ,639 6,224 ECONOMIC DEVELOPMENT 106,300 9,629 87,814 9,06 DEVELOPMENT & PLANNING 2,625 0,266 2,625 10,14 BUSINESS SUPPORT 30,900 0,000 30,900 0,00 BULK MARKETS 4,300 0,901 4,300 20,96 URBAN RENEWAL 30,000 0,042 30,000 0,14 OPERATING COST 59,400 9,050 59,400 15,24 BUDGET VS SPENT 1980, , ,012 31,64

3 USDG FINANCIAL YEARS COMPARATIVE Financial Year Budget 1ST Quarter 2nd Quarter 3rd Quarter 4th Quarter Expenditur e % Expenditure % Expenditur e % Expenditure % 2017/ ,19 251, ,417 31, / , , ,000 32, , , / , , , , , / , , ,921 44, , , / , , ,399 47, , , / ,929 78, , , ,

4 MTSF - CONTRIBUTION TOWARDS MTSF TARGETS: ETHEKWINI MTSF TARGET households in informal settlements upgraded to Phase 2 of the Informal Settlements Upgrading Programme National 5 Yr MTSF Target for Metro 56,905 Annual MTSF Target 2014/15 Actual 2015/16 Actual 2016/17 Actual 2017/18 Target Individual Households Water Sanitation Electricity Shared services (number of households benefiting) Water Sanitation Title Deeds: for new developments Pre-1994 housing stock Post-1994 housing stock of hectares of welllocated land ( excl rural)

5 REASONS FOR UNDERSPEND AND NON-ACHIEVEMENT OF TARGETS Housing (32.70%) 1) Finalising of turnkey contracts and issuing of LOA s. 2) Poor performance of contractors which resulted on termination of contracts (Cornubia & Inanda Dam) delays experienced due to re-advertising of contracts. 3) Appeals/ objections received when amendments to contracts were undertaken. (e.g. Cornubia - approximately 4 months delay) 4) Social challenges experienced in projects under implementation (Umlazi and Ntuzuma D) community not allowing the staff to undertake verification of units; strikes and work stoppages. NHBRC being stopped from doing the verification of units because of threats from community forums e.g. Delangokubona and Business forums. 5) Funding for access in rural projects is a challenge and negotiations with Treasury and Provincial Govt. are underway. 6) Lack of water supply for construction has resulted in poor performance in the Western Areas. 7) There were delays experienced with finalising MOA contracts for work done to be claimed from Province

6 1. HIGH LEVEL DECEMBER 2017 CAPITAL SPEND EXPLANATIONS ON UNDERSPENDING, FORECASTS OVER AND ABOVE BUDGET Water (36.51%) Challenges in implementation of projects Business Forums challenges R50m delay in awarding Pipe replacement contract Implementation delay for Northern Aqueduct phase 5 Material problems for Waterloss project valves (DOT local content, water meters. Sanitation (54.57) Challenges in implementation of projects Business Forums challenges 24 month delays in obtaining Record of Decision and Water Use license, construction permit Contractual challenges Contract appeals Canelands Bridge and Mbokodweni Bridge

7 HIGH LEVEL DECEMBER 2017 CAPITAL SPEND EXPLANATIONS ON UNDERSPENDING, FORECASTS OVER AND ABOVE BUDGET Solid Waste (14.88%) Challenges in implementation of projects Delays due to the New requirement of the CPG component of the RET of the main tender supply Shongweni Landfill: This proposed landfill has been delayed at the MEC Appeals Process from obtaining approval How are these challenges being addressed Shongweni Landfill: MEC has written to the City Manager requesting for clarification if the city supports the landfill or the Shongweni Integrated Development as both are in conflict with each other. A response has been prepared and awaiting signatures. However it will not be practical at this stage to spend the money without the MEC s approval. Intervention/support from city to further unblock the delays is needed CPG was resubmitted and approved by Bid committees

8 HIGH LEVEL DECEMBER 2017 CAPITAL SPEND EXPLANATIONS ON UNDERSPENDING, FORECASTS OVER THE ABOVE BUDGET Engineering (34.32%) Challenges in implementation of projects P3965 Road Rehabilitation - Major procurement and legal challenges / delays on four road rehabilitation contracts Emergency flood projects Some of the funding needed to be redirected due to the flood on October 2017 the anticipated expenditure will exceed the budget. The existing approved budget was reprioritized to accommodate flood projects. Economic Development and Planning (23.42%) A spend of 95.91% budget is forecasted for Economic Development and Planning Challenges in implementation of projects Delays in the appointment of framework contract for the Panel of Architectural consultants by the Municipality; Poor performance of contractors on site resulting in slow progress and resultant expenditure and Poor contract management by implementing departments.

9 HIGH LEVEL DECEMBER 2017 CAPITAL SPEND EXPLANATIONS ON UNDERSPENDING, FORECASTS OVER THE ABOVE BUDGET Community and Emergency Services (HSS) (14.29%) A % spend is forecasted due to inclusion of spending in respect of Zonal Plans. The budgets will be adjusted during the adjustments budget process. Challenges in implementation of projects KwaMashu E Cricket There was a reduction in the anticipated expenditure by Development Engineering Department. Inchanga Sportsfield Legal advice on the MOU of sharing of facilities Inanda Swimming Pool Slow progress on site due to work stoppages Mobeni Heights (Replacement of old Furnace) Delay in the awarding of tender contract due to Tender litigations. Amaoti Library - Change of site necessitated land set aside as the initial site was zoned for Housing. This affected the implementation program for the whole duration of the project.

10 HIGH LEVEL DECEMBER 2017 CAPITAL SPEND EXPLANATIONS ON UNDERSPENDING, FORECASTS OVER AND ABOVE BUDGET Ethekwini Transport Authority (27.01%) Challenges that resulted in under expenditure on Go!Durban The programme has experienced numerous construction work stoppages resulting in delayed construction progress. How are these challenges being addressed ETA holds meetings with the taxi industry leadership on regular basis to keep them informed about the project An internal Marketing and Change Management manager was appointed to drive stakeholder engagements citywide to provide information about the project. ETA developed an empowerment specification that is included in all Go!Durban tenders. A claims specialist has been engaged to strengthen contractual clauses which should reduce the number of future contractual claims. Engagements with ODCM and HR have intensified. All funded posts are being filled. A plan is in place to utilise grant funding to fill unfunded posts that are required specifically for Go!Durban

11 WESTERN AQUEDUCT PIPELINE LAYOUT

12 WESTERN AQUEDUCT Project overview Western Aqueduct Phase 1 Cato Ridge to Inchanga: Construction of 11km of welded steel pipeline (DN1600) Western Aqueduct Phase 2 Inchanga to Alverstone Nek Reservoir Construction of 6.7km of welded steel pipeline (DN1600) Western Aqueduct Phase 2 Alverstone Nek Reservoir to Ashley Dr BPT Construction of 7.6 km of welded steel pipeline (DN1400) Western Aqueduct Phase 2 Ashley Dr BPT to Wyebank BPT Construction of 9.5km of welded steel pipeline (DN1400) Western Aqueduct Phase 2 Wyebank BPT to Ntuzuma Reservoir 5 Construction of 14.7km of welded steel pipeline (DN1400 & DN1000) Western Aqueduct Phase 2 Kloof to Tsheliminyama Reservoir 3 Construction of 8.3km of welded steel pipeline (DN600 & DN500)

13 WESTERN AQUEDUCT Project overview Western Aqueduct Phase 2 Wyebank BPT to Mt Moriah Reservoir: Construction of 5.5km of welded steel pipeline (DN1000) Western Aqueduct Phase 2 Ashley Drive BPT Construction of a 20 Mega litre break pressure tank Western Aqueduct Phase 2 Wyebank BPT Construction of a 10 Mega litre break pressure tank

14 WESTERN AQUEDUCT Project STATUS Western Aqueduct Phase 1 Cato Ridge to Inchanga: Construction completed 2012 Western Aqueduct Phase 2 Inchanga to Alverstone Nek Reservoir Construction completed 2015 Western Aqueduct Phase 2 Alverstone Nek Reservoir to Ashley Dr BPT Construction completed 2015 Western Aqueduct Phase 2 Ashley Dr BPT to Wyebank BPT 4.5 km of pipeline has been completed. Scheduled completion June 2018 Western Aqueduct Phase 2 Wyebank BPT to Ntuzuma Reservoir km of pipeline has been completed. Scheduled completion August 2018 Western Aqueduct Phase 2 Kloof to Tsheliminyama Reservoir km of pipeline has been completed Scheduled completion June 2018

15 WESTERN AQUEDUCT Project STATUS Western Aqueduct Phase 2 Wyebank BPT to Mt Moriah Reservoir: Project on hold Western Aqueduct Phase 2 Ashley Drive BPT Construction complete 2015 Western Aqueduct Phase 2 Wyebank BPT BPT scheduled completion December 2017

16 CONTRACT EXPENDITURE UP TO 31/01/2018 CONTRACT PROGRESS STATUS (%) CONTRACT STATUS FUNDING AGENT WESTERN AQUEDUCT PHASE 2 (WA) CONTRACT BUDGETS PHASE 1 R 202,400, R 202,400, %Complete 2010 Municipality PHASE 2 Contract 1 Inchanga to Alverston Pipeline R 120,000, R 110,583, %Complete Nov Practicle Completion Achived 21/6/2015. Completion Achived 30/11/2015 Contract 2 Alverston to Ashley Dr Pipeline R 160,000, R 147,458, %Complete Oct Practicle Completion Achived 30/5/2015. Completion Achieved 16/10/2015 Contract 3&4 Contract 5A Contract 6 Contract 7A Ashley Drive to Ntuzuma Pipeline R 450,706, R 442,827, %Est. Completion Dec 2018 Mount Moriah Pipeline Section R 20,000, R 15,800, %Complete Dec Postponed by EWS Tshelimn yama Pipeline R 85,000, R 81,309, %Est.Completion June 2018 Ashley Drive B.P.T R 51,613, R 51,557, %Complete Dec Week delay due to Community and Business Forums and 20 week delay by Telkom Fibre optic cable relocation and Electricity cables - Expected Completion Date July 2018 Ten week delay due to Taxi and Business Forums Demands. Expected Completion Date April Penalty of R deducted from Esor Practicle Completion Achived 27/07/2015. Completion Achived 30/11/2015 Contract 7B Wyebank B.P.T R 81,448, R 79,587, %Completion Jan WA Phase 2 Project Total Cost R 968,768, R 929,124, WESTERN AQUEDUCT PHASE 1 & 2 TOTAL PROJECT COSTS R 1,131,524, Construction commenced mid January Practicle Completion 23 October Expected Completion Date 30 January 2018

17 WESTERN AQUEDUCT CONSTRUCTION PIPELINE CONSTRUCTION ACROSS SENSITIVE GRASSLAND PIPELINE CONSTRUCTION DOWN THE UMGENI VALLEY PIPELINE CONSTRUCTION IN ROAD PAVEMENT PIPELINE CONSTRUCTION IN RESTRICTED AREA

18 NORTHERN AQUEDUCT PIPELINE LAYOUT OGUNGINI HAZELMERE P2 RESERVOIR NR 5 RESERVOIR UMHLANGA RESERVOIR EMACHOBENI DUFFS ROAD DBN HEIGHTS

19 NORTHERN AQUEDUCT Project overview Northern Aqueduct Phase 1 Phoenix 2 reservoir to Umhlanga/Waterloo: Construction of 19.5km of welded steel pipeline (DN1200 to DN600) Northern Aqueduct Phase 2 Ntuzuma 7 reservoir to Phoenix 2 reservoir Construction of 18.5km of welded steel pipeline (DN1200) Northern Aqueduct Phase 3 Duffs Rd to Phoenix 2 reservoir Construction of 6.2 km of welded steel pipeline (DN1200) Northern Aqueduct Phase 4 Ntuzuma to Ogungini Construction of 20km of welded steel pipeline (DN600) Northern Aqueduct Phase 5 Duffs Rd to Durban Heights Reservoir Construction of 11.6km of welded steel pipeline (DN1200)

20 NORTHERN AQUEDUCT Project status Northern Aqueduct Phase 1 Phoenix 2 reservoir to Umhlanga/Waterloo: Construction to be completed June 2017 Northern Aqueduct Phase 2 Ntuzuma 7 reservoir to Phoenix 2 reservoir Future project Northern Aqueduct Phase 3 Duffs Rd to Phoenix 2 reservoir Construction to be completed June 2017 Northern Aqueduct Phase 4 Ntuzuma to Ogungini Out to tender for Professional Services Contract Northern Aqueduct Phase 5 Duffs Rd to Durban Height Reservoir Contract has been awarded in Sept 2017

21 NORTHERN AQUEDUCT(NA) Phoenix Res.to Waterloo/ Umhlanga Res's Est. Completion June Contract 1 Pipeline R 186,078, R 146,581, % 2018 Rectification works delay of 24 months. Completion expected April Penalty of R deducted from Esor Contract 2 Contract 2 & 4 Contract 5 Duffs Rd to Phoenix Res Pipeline R 93,972, R 72,092, Est. Completion June 90% 2018 Durban Heights to Duffs Rd Pipeline R 235,964, R 32,295, Est. Completion Sept. 5% 2019 Waterloo 0% Res to La Mercy Pipeline R - R 0.00 Future Rectification works delay of 24 months. Completion expected April Penalty of R deducted from Esor Construction commenced 4 September 2017 with completeion expected end September Serious disruptions and delays by Ward 37 community and Business Forums N/A Contract 6 Contract 7 Contract 8 Contract 9 Emachobe ni to Phoenix Pipeline R - R %Future N/A Nyaninga Pipeline R 20,000, R 16,500, %Complete June 2017 Completed Ntuzma to Ogunjini Pipeline R 220,000, R %Est. Completion 2020 Design stage Pipe Supply, Valves R 189,003, R 187,228, %Est. Completion 2019 Municpality Consultan t NACJV R 78,278, R 66,099, %Completion Jul Municipality Consultan t Bosch R 30,500, R 16,946, %Completion Dec Municpality Consultan t SEF R 4,650, R 2,598, %Completion Dec Municpality Consultan ts and specialist studies R 30,000, R 1,500, %N/A Municipality Northern Aqueduct Sub total R 1,088,448, R 541,841, % NORTHERN AQUEDUCT PROJECT TOTAL COSTS R 541,841, %

22 NORTHERN AQUEDUCT CONSTRUCTION PIPELINE CONSTRUCTION IN CORNUBIA

23 BACKGROUND ABLUTION BLOCKS Problem Statements: Significant growth in number of informal settlements in ethekwini Significant densification of existing settlements year on year Substantial challenge to maintain delivery to the ever-increasing informal population 2008 Aerial Photo (example) 2015 Photo of the same area

24 BACKGROUND (cont ) Programme Objectives: Provide water and water borne sanitation to informal settlements (and schools via DOE IA agreement) Develop bulk services to support the above (including planning for future formal housing developments) Provide interim or formal services to formal settlements where appropriate (based on HSD requirements) Expenditure of available budgets (typically R250 million per year to R500 million per year) Contribute to the ethekwini s social and economic development agenda Deliver public infrastructure using labour-intensive methods Deliver a fit for purpose water and sanitation solution to identified communities not yet satisfactorily provided with such services Improve community health and wellness, reduce incidences of water/sanitation related diseases Undertake works safely, efficiently and effectively with due attention paid to environmental, safety and social concerns

25 BACKGROUND (cont ) ethekwini Municipality is undertaking the Programme through its ethekwini Water and Sanitation Department (EWS), supported by other Departments as necessary Multi-year and multi-phase programme (currently in Phase 3, Year 10) Overall Programme Managers appointed to manage and control the programme Multiple Design Consultants (and development design consultants) appointed to undertake site and package specific designs and site supervision Contractors (and development contractors) appointed to construct the works: Site / ablution facility specific works Bulk works Specialised works Planning, Design and Construction in parallel Rapid Rollout and fast delivery, continuous work issue

26 STATUS and DELIVERY Phase 1 & 2 (Feb 2008 to Sep 2014) Phase 1: 302 ablutions 250 sites, 52 platforms Phase 2: 905 ablutions 321 modular ablutions (MABs) container ablutions (CABs), differing types 8 bulk projects Phase 3 (Aug 2015 to current) Phase 3: 294 ablutions

27 STATUS and DELIVERY (cont ) Phase 3 (Aug 2015 to current) Phase 3: 28 facilities presently under construction Approximately 150 further facilities planned Approximately 80 with complete designs Approximately 70 further facilities in design process Phase 3 undertaking bulks projects in: Luganda Malukazi

28 STATUS and DELIVERY (cont ) SAN 3 Completed Sites end DECEMBER 2017 Delivery numbers: Phase 3 Financial Year 2015/2016: 49 Financial Year 2016/2017: 212 Financial Year 2017/2018: 33 (to Dec 2017) This does not include bulk projects or refurbishments Project Month / Financial Year Split Completed Sites Quarterly Completed Sites (Day 1's) Apr/ May/ Jun/ Total EWS Financial Year 2015/2016: 49 Jul/ Aug/ Sep/ Oct/ Nov/ Dec/ Jan/ Feb/ Mar/ Apr/ May/ Jun/ Total EWS Financial Year 2016/2017: 212 Jul/ Aug/ Sep/ Oct/ Nov/ Dec/ Jan/2018 Feb/2018 Mar/2018 Apr/2018 May/2018 Jun/2018 Total EWS Financial Year 2017/2018: Overall Totals: 294

29 STATUS and DELIVERY (cont ) Phase 3 Financial Status (Dec 2017): Entity Bulks P-Sites Q-Sites R-Sites T-Sites Totals Main Contractors R R R R R R % Design Consultants R R R R R R % Programme Manager R R R R R R % Totals: R R R R R R % Percentage of Total: 20.9% 0.3% 18.1% 59.8% 1.0% R % *Bulks - Bulk infrastructure *P - Old Modulars/Prefabs *Q - Special Projects *R - Rapid Rollout *T - Transit Facility Phase 3: Schools Financial Status (sub-programme in Phase 3 for DOE, Dec 2017): R 0.00 Project Entities Certified Expenditure %age Certified Expenditure Project Budget (Excl. VAT) Budget (Excess / Shortfall) Siqu Group R % R R TLS Engineers and Project Managers R % R R SMEC South Africa (Pty)LTD R % R R R R R

30 STATUS and DELIVERY (cont ) Phase 3 Modular Suppliers: Project Entities Certified Expenditure %age Certified Expenditure Project Budget (Excl. VAT) Budget (Excess / Shortfall) Container Consumables cc R % R R Ingulule Trading cc R % R R Mathubesizwe Trading 27 R % R R Umongo Investment R % R R Totals: R R R

31 Financial Graph: STATUS and DELIVERY (cont )

32 RECOVERY PLAN

33 Description Comparatives -Jan after Adjustment Budget Original Budget Adjusted Budget YTD Actuals Forecast % Spend TOTAL USDG 1 980, , , ,109 35,49 Operational 59,403 59,403 10,560 59,403 17,78 CAPITAL BUDGET 1 751, , , ,989 36,943 Interim Services 0,000 48,556 12,948 48,556 26,67 Housing Infrastructure incl Land 324, ,530 87, ,530 22,12 Roads Storm Water 50,000 30,000 11,039 30,000 36,80 Roads 85, ,415 45, ,415 38,78 Ethekwini Transport Authority 130,666 30,989 1,487 30,989 4,80 Water 341, , , ,267 39,58 Sanitation 326, , , ,939 62,92 Solid Waste 24,395 24,995 0,228 24,995 0,91 Electricity 0, ,850 70, ,850 44,10 Community Halls 0,000 1,105 1,105 1, ,00 Libraries 1,690 1,690 0,022 1,690 1,30 Parks 5,830 6,330 1,861 6,330 29,40 Sport facilities 6,987 16,447 0,386 16,447 2,35 Museums 15,611 5,000 0,000 5,000 0,00 Clinics 4,121 7,921 5,550 7,921 70,07 Fire and Emergency 24,000 8,510 0,120 8,510 1,41 Economic Development 106,300 80,612 27,804 80,612 34,49 Development Planning 2,625 2,625 0,266 2,625 10,14 Business Suport 16,900 6,749 0,151 6,749 2,24 Bulk Markets 4,300 2,900 0,901 2,900 31,08 Urban Renewal 28,500 6,510 0,042 6,510 0,65 Ward Based Projects (Zonal Plans) 252, ,049 92, ,049 36,844

34 KEY INTERVENTIONS AND ACCELERATION PLAN 1) The Community Infrastructure Program (CIP) totalling to R280m,co-ordination has been facilitated through the DCM s office. Capacity is already inplace to accelerate this spent by end of financial year. 2) Intense capacity increase for all awarded contract. service providers have agreed to increase capacity and resources from January 2018, building multiple teams to accelerate work on the ground. Revised construction programmes have been received and will be monitored closely. 3) To deal with treats, arrangements have been made for security personnel to accompany the officials to undertake verification of units. 4) Re distribution of work to good performing contractor arising from the termination of poor performing contractor.( e.g. Sobonakhona) 6) Assessing contracts to include water supply on projects and to arrange water tankers to supply construction water on projects. 7) Recently approved adjustment budget has enable immediate funding of projects that are ready for implementation which have been planned and ready for roll-out. 8) Procurement scheduling and plans indicate that over 80% of projects within the infrastructure are sitting on SCM complete, which is a good indicator for the recovery strategy in place. 9) Aggressive ramp up on the informal settlement upgrading in terms of, provision of sanitation, electrification and incremental services provision. This program has an ability to spend R100mil per months and covering essential services within the breath and depth of where ISUP exist. 10) Social Infrastructure will be accelerated through the utilization of USDG. Refurbishment of halls, recreation centres are earmarked from the USDG funding.

35 KEY INTERVENTIONS AND ACCELERATION PLAN cont Following procedure with Business Forums and use of SAP. 12. Informal Settlement Electrification Projects to the value of R160mil has been brought forward for implementation. 13. Housing Infrastructure Commitments that can be fast tracked is sitting at R560million 14. Ablution Blocks commitments R151million 15. Roads Provision increased from R85million to R117million due to Storm Disasters. Procurement Processes have been finalised and are at implementation. 16. Top 200 bi weekly meetings initiated by the City Manager to monitor progress and expenditure 17. Mayor has tasked Chairpersons of portfolio committees, DCM s and Head of Departments to closely monitor the expenditure and progress of USDG funded projects in their various areas. 18. Project Management Unit for Monitoring & Evaluation to be established and paid for from the 3% Operational allocation from USDG

36 THANK YOU 36