Transcript Legislated training

Rand Water
Capital Expenditure Programme
John Critchley
Tariff consultation
22 October 2014
CONTENT
1. Demand growth forecast
2. Augmentation & renewal plan to 2030
3. Capital budget
2
Background
Customer base
•
Non-potable
Historical
growth
Mines
water
Other
Several
decades of growth in the 3 to 6% per annum
4%
Municipalities
Resulted in increase from 1000 Ml/d in 1965
to 4000 Ml/d now
Greater
11%
Growth started to decline from aboutJohannesburg
1990
Growth in decade to 2011 averaged 2.5%Metro
Emfuleni
35%
Metro
Projected
6% growth
– Continued decline in annual growth rates
Tshwane
– Decline in both ‘natural’
Metro population growth and inward migration
15% 2% paEkurhuleni
– Expect drop from current
to 1% pa by about 2035
– Projecting further, could peak by Metro
about 2070
24%
–
4%
–
–
–
•
Industries
2%
3
Demand Growth
Projection to 2035
•
Factors affecting growth
–
–
–
•
Domestic usage = 70% of total
Natural population growth, inward migration, system losses
Major customers play dominant role
Projected growth in demand
–
–
–
Projected demands contractually based on customer forecasts
Projected population growth of 3 million from 2010 to 2030
Based on AADD of 4200 Ml/d for 2014 and 1.75% annual growth:
Year
2020
2025
2030
2035
Average Demand
(Ml/d)
4700
5100
5500
5900
4
Demand growth versus raw water
AADD abstraction growth - excludes Authorised Users and WDM
6,500
Infrastructure planning projection
6,000
5,500
Flow (Ml/d)
5,000
Possible future abstraction licence
4,500
4,000
Current proposed abstraction licence
3,500
3,000
2,500
2000
2005
2010
2015
2020
2025
2030
2035
2040
Year
5
Demand growth scenarios and risks
Response to Limitations
• Potential for deferred capital expenditure, but:
– Major projects have long lead times
– Some existing infrastructure approaching full utilisation at peak
periods
– Require ‘headroom’ to take major infrastructure out of service for
renewal
•
Location, location, location!
–
–
•
WDM initiatives not intended to prevent development
Mismatch between areas of saving and development nodes
Response
–
–
First see effectiveness of WDM initiatives by location
Complete current projects but defer future projects
6
Corporate Systems
Note: Primary = Raw Water + Vereeniging + Zuikerbosch
Primary
Systems
Booster
Systems
Rand Water
Eikenhof
Supply
System
Zwartkopjes
Supply
System
Vereeniging Purification System
Palmiet
Supply
System
Mapleton
Supply
System
Zuikerbosch Purification System
Raw Water Supply System
Corporate Systems
Booster
Primary
City of Tshwane
Palmiet system
Eikenhof system
Mapleton system
Zwartkopjes system
Primary systems
Vaal Dam
9
Augmenting for 2015 to 2030 cycle
Northern Jhb
Central Jhb
Southern areas Tshwane
Ekurhuleni
North west Jhb
West Rand
Rustenburg
Eastern Tshwane
Ekurhuleni
Mpumalanga
10
Peak demand by pumping station
Station
Design
capacity
Projected peak day demands (Ml/d)
(including WDM savings - indicative)
2020
(2025)
2025
(2030)
2030
(2035)
2035
(2040)
Primary Systems
Zuikerbosch
3900
4300
4800
5300
5800
Vereeniging
1400
1300
1300
1300
1300
Palmiet
1870
2000
2190
2380
2570
Mapleton
960
990
1080
1180
1270
Eikenhof
2000
1470
1610
1750
1880
Zwartkopjes
800
760
780
840
880
Booster systems
11
CONTENT
1. Demand growth forecast
2. Augmentation & renewal plan to 2030
3. Capital budget
12
Augmentation & Renewal Planning
• Augmentation
– Increase capacity to meet future demands (quantity & quality)
– 20 year view of projects based on 35+ year view of demands
– Projects connected to customers per system
•
Renewal
–
•
Extend life of existing assets (replace, refurbish, upgrade)
Integrated
–
–
Many projects combine augmentation and renewal (eg pipelines)
Integrate at plant, site and system level
13
Capital expenditure – top 15 projects
Project
Spend R(m) Augment Renew 2009
5-year 2015
AWS
1
Zuikerbosch scheme (System 5)
2770
58
Δ
#
2
O6 Palmiet - Klipfontein augmentation
972
350
Δ
#
3
Co-generation
422
142
Δ
4
B1, B2 pipelines refurbishment
325
25
Δ
5
Zuikerbosch filter house 1 upgrade
250
0
Δ
6
B17 Zuikerbosch - Palmiet pipeline
223
223
Δ
#
7
H39 Klipfontein - Brakfontein pipeline
221
85
Δ
#
8
Zuikerbosch - Chlorine plant 4 replacement
203
3
Δ
9
Vereeniging - Zwartkopjes system
201
1
Δ
10
B16 Zuikerbosch - Slangfontein pipeline
200
0
Δ
11
Kensington - Yeoville system
190
0
Δ
12
Panfontein upgrade
185
7
Δ
13
300 Ml reservoir storage (Soweto)
171
7
Δ
14
Palmiet Engine Room 1 upgrade
170
0
Δ
15
Replace M1 pipeline
163
10
Δ
6,666
911
51%
34%
Total
#
#
14
Asset Portfolios
•
•
•
•
•
•
•
Buildings and property
Civil structures
Pipelines
Mechanical
Electrical
Process
Automation
Infrastructure renewal
Asset category
Replacement value
(Rbn)
Design life (yrs)
Annual renewal
allocation (Rm)
Pipelines
46
65+
600
Civil
12
50 to 100
70
Mechanical
9
30+
115
Process
7
15 to 20+
115
Buildings
4
80+
35
Electrical
1
20 to 30+
25
Automation
1
5 to 10+
10
Total
80
970
16
Infrastructure augmentation
Providing for 2015 to 2030 augmentation cycle
17
Augmenting for 2015 to 2030 cycle
Northern Jhb
Central Jhb
Southern areas Tshwane
Ekurhuleni
North west Jhb
West Rand
Rustenburg
Eastern Tshwane
Ekurhuleni
Mpumalanga
18
Primary Systems – 1600 Ml/d growth from 2015 to 2030
Additional Purification Plant – 1200 Ml/d capacity
Additional raw water pipelines and purification plant upgrades
Purification plant upgrades
Vereeniging and Zuikerbosch
B19 raw water pipeline
R65 million budget for 2014/15
Station 5 at Zuikerbosch
1200 Ml/d capacity in two phases
R58 million budget for 2014/15
BG3 raw water
pipeline
9 km x 3500 mm
Complete
19
Augmenting for 2015 to 2030 cycle
Northern Jhb
Central Jhb
Southern areas Tshwane
Ekurhuleni
North west Jhb
West Rand
Rustenburg
Eastern Tshwane
Ekurhuleni
Mpumalanga
20
Palmiet System – 600 Ml/d growth from 2015 to 2030
Additional Engine Room – 600 Ml/d capacity
Total 150 km of pipeline between 600 mm and 2100 mm diameter
Diepsloot
B17 Zuikerbosch - Palmiet pipeline
H39 Klipfontein – Brakfontein pipeline
R85 miilion budget for 2014/15
R223 million budget for 2014/15
O6 Palmiet - Klipfontein pipeline
R350 miilion budget for 2014/15
Engine Room 3b at Palmiet station
600 Ml/d operational capacity
R99 million budget for 2013/14
Zuikerbosch Purification
& Pumping Station
21
Pipelines for augmentation
Description
Palmiet
AugmentationExisting
augmented
Item
lines
Diameter
(mm)
Length
(km)
Required
(year)
1.1
Zuikerbosch to Palmiet pipeline
B4, B6, B10
2100
46
2017
1.2
Slangfontein cross connection
B9
1300
3
2015
1.3
Klipfontein
(partial)
1700
14.7
2017
1.4
Palmiet – Klipfontein pipeline (phase 1)
O2
2100
18
2017
1,5
Palmiet – Klipfontein pipeline (phase 2)
O2, part O5
1800
6
2025
1.6
Kwaggaspoort – Gomsand pipeline
H22, H28
1000
9.7
2015
1.7
Shamrock Road – Northridge pipeline
G28
1200
3.2
2014
1.8
Northridge – Airfield pipeline
H3
900
5.8
2017
1.9
Brakfontein – Lyttelton pipeline
H12 portion
1500
26
2022
1.10
Lyttelton – Kwaggaspoort p/line
H14 portion
1200
6
2022
1.11
Brakfontein – Kwaggaspoort pipeline
H25, H30
1700
21
2027
1.12
Kwaggaspoort – Hartebeesthoek pipeline
H22, H28, H42
1200
15
2032
1.13
Hartebeesthoek – Rosslyn pipeline
H18, H29 ptn
1400
7
2030
1.14
Rosslyn – Soshanguwe pipeline
H16, H29 ptn
1200
8
2030
1.15
Kensington – Yeoville pipeline
New route
1200
8
22
2022
to
Brakfontein
pipeline H12, H21, H27
Pipeline for renewal
Age
(yrs)
Length
(km)
Palmiet Augmentation
68
10
G17 South Hills – Germiston
Diameter Anticipated renewal plan
(mm)
(subject to final assessment)
940
Renovate if steel quality good
If replaced increase diameter to 1200mm
G18 South Hills - Wychwood
60
9
1140
Renovate if steel quality good
If replaced increase diameter to 1400mm
G19 Meyer’s Hill – South Hills
59
2
1240
Renovate if steel quality good
If replaced increase diameter to 1400mm
G25 Klipriviersberg – Butcher’s Hill
48
5
1450
Refurbish in phases
H3 Signal Hill - Northridge
70
50
710
Replace and increase diameter to between
1000mm and 1200 mm diameter
H4 Wychwood – Hurlevale
59
7
940
Renovate if steel quality good
If replaced increase diameter to 1000mm
J4 Main Reef Road – Knights Road
59
1,5
400
Replace and increase diameter to 600mm
J5 Main Reef Road – Signal Hill
76
13
610
Replace and increase diameter to between 700
mm and 1000 mm diameter
J6 Keswick Road – Churchill Avenue
65
2,2
760
Replace and increase diameter to 1000mm
J7 Keswick Road duplication
60
0,9
730
Abandon
O2 Palmiet - Klipfontein
42
33
1800
Refurbish in phases
23
10 year renewal plan for Palmiet ER 1
Objective
Maintain design capacity (455 to 500 Ml/d), and standby capacity of 200 Ml/d
Summary plan
Major replacement programme over next 5 years, excluding building
Last assessments
Integrated PPCA – October 2013 (see document ……)
Asset Portfolio
Summary of assets
Results of latest assessment Renewal proposals
Buildings
Brick building with RC sub-structure,
pump room, control room, loading
bay
Building in fair condition and
expected to exceed design life
Civil
Objective
Structures
Pump plinths
Good condition
Dependant on pumpset replacement
Maintain design capacity with slight increase from 455 Ml/d to 500 Ml/d, and standby capacity of 200 Ml/d
Pipelines
Last assessments
700 mm diameter steel suction lines
Some corrosion noted
Integrated PPCA – October 2013 (see document ……)
600 mm diameter steel delivery lines
Refurbish during shutdowns for pump
replacement
Electrical
Motors
Switchgear
Incomers
Motors in fair condition
Switchgear in fair condition
Replace motors and switchgear with
pumps
Mechanical
7 x 91 Ml/d capacity two stage pumps,
204 m duty head
Suction & delivery isolating valves
Overhead crane – 10T capacity
Pumps beyond useful life, overhaul
not practical
Valves in fair condition
Replace pumps in 2017
Process
Not applicable
N/A
N/A
Automation
Control desk
PLC panels
Automation not to current RW
standards
Upgrade to current standards, existing
project …….
Summary plan
Estimated cost
Maintenance only
Major replacement programme over next 5 years, excluding building
Refurbish valves with pipelines
24
Augmenting for 2015 to 2030 cycle
Northern Jhb
Central Jhb
Southern areas Tshwane
Ekurhuleni
North west Jhb
West Rand
Rustenburg
Eastern Tshwane
Ekurhuleni
Mpumalanga
25
Mapleton System – 300 Ml/d growth from 2015 to 2030
Additional Engine Room – 300 Ml/d capacity
Total 90 km of pipeline between 1000 mm and 2100 mm diameter
R5 Vlakfontein – Mamelodi pipeline
R22 million budget for 2014/15
L17 Van Dyk’s Park – Brakpan Res pipeline
S4 van Dyk’s Park – Rynfield pipeline
Central
Johannesburg
M1 pipeline replacement
Engine room at Mapleton station
300 Ml/d additional capacity
B16 Zuikerbosch – Slangfontein pipeline
26
Southern and Central areas – 300 Ml/d growth from 2015 to 2030
Western and North Western areas – 400 Ml/d growth from 2015 to 2030
Lanseria
H40 Weltevreden – Cosmo City pipeline
C6 Zwartkopjes – East Rand
pipeline replacement
Soweto priority for WDM
A6 Vereeniging – Zwartkopjes
pipeline replacement
B1, B2 pipeline refurbishment
27
CONTENT
1. Demand growth forecast
2. Augmentation & renewal plan to 2030
3. Capital budget
28
Capital budget for 2014/15
29
5-year Capital Expenditure (2015/19) forecast
of R13 billion for continuing business
System
Augmentation
(Rm)
Renewal
(Rm)
Total
(Rm)
Eikenhof
492
694
1186
Mapleton
956
734
1690
Palmiet
2,106
929
3,035
Primary systems
3,641
2,096
5,737
Zwartkopjes
453
954
1,407
Total
7,647 (59%)
5,406 (41%)
13,053 (100%)
Note: the share of spend going to renewal of existing infrastructure has increased
from 30% to 40% over the recent past. It is intended to increase this share further to
ensure continued functionality of ageing infrastructure
Capital expenditure split between main plant categories
•
Continuing business
Reservoirs
1%
Pumping
18%
Purification
26%
Pipeline
55%
Note: reservoir spend will increase towards the
end of the 5 year business planning horison
Page 31
Financial year
2018/19
2017/18
2016/17
2015/16
2014/15
2013/14
2012/13
2011/12
2010/11
2009/10
2008/09
R million
Capital expenditure forecast
3000
2500
2000
1500
1000
500
0
20 Year View of Projects (as per IAMP)
16
18
28
31
32
33
36
2
3
8
10
21
30
37
14
26
34
12
17
25
29
38
23
20
35
39
99
2014
PMZ
MPZ
MPZ
MPZ
PMZ
PMZ
RWZ
ZBZ
EKZ
EKZ
EKZ
EKZ
EKZ
EKZ
EKZ
EKZ
EKZ
EKZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
MPZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
PMZ
RWZ
RWZ
RWZ
VGZ
VGZ
ZBZ
ZBZ
ZBZ
ZBZ
ZBZ
ZBZ
ZBZ
ZBZ
ZKZ
ZKZ
ZKZ
ZKZ
ZKZ
ZKZ
ZKZ
All
74%
74%
74%
74%
74%
75%
74%
81%
Priority score
9
13
22
27
EXPENDITURE FOR THE PERIOD 2013 TO 2033 INCLUDING GROWTH PROJECTS
Escalation:
6.0%
p.a.
Sys
Priority
1.00
1.06
1.12
1.19
1.26
Score
IDR
Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 Jun 24 Jun 25 Jun 26 Jun 27 Jun 28 Jun 29
Palmiet
A
1
4
5
19
11
15
6
7
SUMMARY OF RAND WATER FORECAST CAPITAL
Project (1)
Comission
BASE CASE
by
AUGMENTATION PROJECTS
Brakfontein - Madibeng system (H33-H36)
R5 Vlakfontein - Mamelodi pipeline
L17 Van Dyk's Park - Brakpan Res
N7, N8 pipelines
B17/B18 Zuikerbosch to Palmiet pipeline
H14 pipeline partial re-route
BG3 pipeline
Sedimentation tanks at Zuikerbosch S2&3
Total for current augmentation projects
H40 Weltevreden - Cosmo City pipeline
Q5 Remainder Eikenhof - Waterval pipeline
F46 Waterval to Weltevreden pipeline
Soweto 400 Ml reservoirs (2 x 200Ml reservoirs)
F5 Krugersdorp to Randfontein 10km x 800mm
2020
Q3 Baragwanath to New Canada 10km x 1200mm
2025
Weltevreden 100Ml reservoir
2032
Roodepoort 100Ml reservoir
2025
Eik. pumping Station 400Ml/d pumps
2035
Roodepoort Booster Pump Station 100Ml/d x 95m
2024
S4 Van Dyk Park - Rynfield duplication 16km x 1800mm
Mapleton Engine Room 3
Mapleton engine room upgrade 2 x 200Ml/d
Bloemendal upgrade
Bloemendal Upgrade - extra pump set
B16 Zb - Slangfontein pipeline 19km x 2100mm
2023
Bronberg 100 Ml reservoir
Brakpan to Secunda pipelines upgrade
Bloemendal Eskom Upgrade
Graham Road to Mamelodi 5 km x 1200mm
2020
Vlakfontein Reservoir 210Ml
2025
Palmiet Engine Room augmentation 800 Ml/d
2032
Garsfontein to Bronberg 9 km x 1200mm
2020
H39 Klipfontein to Brakfontein pipeline
O6 Palmiet - Klipfontein augmentation
Palmiet Engine Room 3b
H42 Kwaggaspoort - Gomsand pipeline
G37/H37 Shamrock Road - Airfield
Hartebeesthoek 100 Ml reservoir
Palmiet Eskom Upgrade
Brakfontein to Lyttelton Heights 26 km x 1500mm
2020
Heights to Kwaggaspoort 6km x 1200mm
2020
Brakfontein to Kwaggaspoort 21km x 1700mm
2027
Kwaggaspoort to Hartebeesthoek 15km x 1200mm
2032
Hartebeesthoek to Rosslyn 7km x 1400mm
2030
Rosslyn to Soshanguve 8 km x 1200mm
2030
Klipfontein 250Ml reservoir
2020
Palmiet to Klipfontein O7
2036
Palmiet Engine Room 4 800Ml/d additional
B19 Lethabo to Vereeniging pipeline
Raw water canal upgrade to raise walls
Raw water Zb (with Sys 5B) 1200Ml/d incl Forebay
2022
Vg to Amanzimtoti 10km x 900mm dia, plus pumps
2032
A15 Vg to Sasolburg 10km x 1200mm (portions)
2026
Zuikerbosch filter block 2b
Zuikerbosch System 5A (600 Ml/d)
Panfontein drying beds upgrade
Panfontein drying beds upgrade2
2022
Panfontein drying beds upgrade3
2028
Zuikerbosch System 5B (600 Ml/d)
2024
Zuikerbosch Eskom upgrade
2014
Zuikerbosch System 6 (1200 Ml/d)
2040
Amanzimtoti expansion - phase 1 & 2
C25 Zwartkopjes - Meyer's Hill + MPS pumps
Zwartkopjes Eskom upgrade
Zb to Daleside pipelines 1000mm x 22km
2024
Daleside 40Ml reservoir
2019
T5 extension to Ennerdale Res 5km x 1000mm dia
2019
Daleside - Zwartkopjes A6 pipeline 19 km x 1400mm
2030
Other augmentation projects
Total for planned augmentation projects
Total for all augmentation projects
74%
74%
74%
62%
74%
74%
62%
62%
77%
77%
74%
77%
77%
77%
77%
62%
62%
74%
77%
74%
62%
77%
74%
74%
74%
77%
74%
74%
62%
77%
74%
74%
74%
74%
74%
74%
62%
74%
77%
74%
74%
78%
77%
74%
81%
78%
69%
69%
69%
78%
78%
77%
77%
74%
77%
74%
62%
74%
74%
2005
2005
2007
2008
2007/8
2005
2008/9
2009
2008
2025
2009
2009
2009
2009
2009
2009
2007
2007/8
2009
2009
2008/9
2009
2009
2010
2009
7
12
41
258
8
95
150
571
35
25
5
10
20
20
5
50
15
30
45
5
102
52
66
15
7
20
527
1,098
24
6
245
43
73
391
73
42
9
35
66
23
57
57
142
160
94
2
57
9
142
199
104
23
38
19
9
20
1,379
1,770
205
19
223
49
31
9
9
36
71
133
151
89
89
80
9
49
459
39
28
18
20
1,370
1,593
193
7
201
8
50
50
8
29
134
126
84
42
34
126
34
619
42
20
1,407
1,608
182
182
24
63
63
4
79
28
111
119
40
32
119
27
488
40
20
20
1,276
1,458
30
80
20
150
50
150
25
45
40
215
30
100
180
30
30
20
20
1,215
1,215
50
50
80
30
150
150
25
45
216
30
100
50
30
20
20
946
996
50
50
80
30
20
40
150
25
45
215
30
100
367
20
20
1,142
1,192
50
50
80
20
200
40
100
383
75
317
20
1,235
1,285
50
50
80
22
200
40
50
50
250
75
417
20
1,204
1,254
50
40
22
244
150
185
734
20
1,445
1,445
50
40
22
85
150
50
634
100
20
1,151
1,151
50
40
85
150
215
50
417
100
20
1,127
1,127
85
215
50
300
100
20
770
770
215
100
523
100
20
958
958
45
40
100
464
100
100
20
869
869
50
45
40
846
100
20
1,101
1,101
Jun 30
40
90
150
74
45
40
350
160
40
423
100
20
1,532
1,532
2034
40
90
80
170
74
350
160
40
50
20
1,074
1,074
Timing subject to WDM success
BG4
Total
Jun 31 Jun 32 Jun-33
40
90
80
100
74
350
160
40
20
954
954
90
90
350
40
300
20
890
890
231
12
47
1,083
8
138
249
1,768
165
173
167
463
84
150
120
120
360
66
397
138
250
136
40
644
120
600
23
75
255
470
135
393
940
427
264
295
105
2
646
90
645
222
135
120
300
1,400
480
426
84
1,235
160
150
292
1,997
209
150
200
2,519
23
2,906
111
125
9
500
80
60
300
420
23,571
25,339
33
THANK YOU
34