Olifants River Water Water Resources Development Project (ORWRDP)

1. Olifants River Water Water Resources Development Project (ORWRDP) Outcome of Investigations 14 June 2004

2. Outline of Presentation • Background • Water requirements • Water resources • Development of water resources • Reconciliation scenarios • Bulk distribution systems • Institutional/Finance • Programme for implementation • Recommendations • Water services 2

3. Background (1)(Earlier Studies) • Olifants-Sand River Transfer Feasibility • Middle Olifants and Steelpoort Pre-feasibility • Potgietersrus and Naboomspruit Regional Augmentation Feasibility • Water Requirement Assessment Study of Future Economic Development in the Dilokong Corridor and Environs 3

4. Background (2) • Wide spread poverty • Excessive unemployment • Little economic activity, dependent on migrant incomes • New mining developments offer opportunities, urgently require additional water • Agriculture and tourism also priorities for provinces 4

5. Possible dam at Rooipoort Flag Boshielo Dam Possible dam at De Hoop Project area 5

6. Olifants River Water Resources Development Project (ORWRDP) Minister of Water Affairs and Forestry Appeal DWAF Management Committee / WRFMC Project Strategy Committee Inter-Governmental Liaison Stakeholder engagement PCMT Institutional & Finance Strategy Committee Departmental Steering Committee International Liaison Strategy Committee • Review panels • Specialist advisors Project Task Teams Regional Economics Public Participation Process Environmental Authorisation Process Mogalakwena/ Sand solutions Water requirements Water resources Surface & groundwater National Water infrastructure Dams & Distribution Systems 6

7. Water requirements(Updated Jan 2004) • Water requirements for main sectors from year 2000 to 2020 (and beyond): • Rural domestic • Urban/industrial plus growth points • Irrigation • Mining/smelters • Low and high scenarios 7

8. Future water requirements (1) 8

9. Future water requirements (2) 9

10. Water requirements (3) • Some irrigation schemes dormant/disrepair, use existing allocations to revitalise • Rural requirements have been taken into account, although distribution infrastructure lack • Mining – short-term influences by international markets 10

11. Surface Water Resources • Olifants catchment • New dam at Rooipoort • New dam at De Hoop • Mogalakwena/Sand • New dam at Groenvley • New dam on the Lephalala River, transfer to Mokopane 11

12. Dam at Rooipoort 12

13. Dam at De Hoop 13

14. Yield potential Dead storage Rooipoort = 44.9 x 106 m3 De Hoop = 20.9 x 106 m3 14

15. Reservoir filling times • Filling at 95% assurance • Only EWR released • Dead storage pre-filled 15

16. Capital Costs (dams only) 16

17. Capital cost vs yield(dams only) 17

18. Unit Reference Values(dams only) 18

19. Dams investigated River bed level RL 850,00 STEELPOORT RIVER OLIFANTS RIVER River bed level RL 705,00 19

20. Impacts on Massingir Dam 20

21. Environmental Water Requirements • Flood flows reduced by new dams, low flows increased by release of EWR • EWR substantially reduce yield of dams in RSA, increase yield at Massingir • Some uncertainties/discrepancies to be resolved • Outlet capacity constraints at existing dams • Specific importance to dam at Rooipoort 21

22. Groundwater development • Six areas with best potential investigated • Potential long-term firm yield • Potential for short-term over-abstraction • Interdependence with surface water • Impacts on environment and existing users • Poor quality in some parts 22

23. 2 x 106m3/a Aganang fractured rock aquifer Chuniespoort dolomite aquifer 2.3 x 106m3/a (80 x 106m3: 5 yrs) Rooisloot sand aquifer Steelpoort alluvium aquifer 6.6 x 106m3/a Nebo Plateau fractured rock 2.2 x 106m3/a (24 x 106m3: 3 – 5 yrs) 2 x 106m3/a Spitskop carbonotite aquifer 1 x 106m3/a Groundwater aquifers 23

24. Groundwater Yields and Costs 24

25. Groundwater Findings • Not sufficient for independent mining and urban supplies • To use primarily for small scale water supplies and irrigation (quality from some boreholes at Nebo and Spitskop not of potable standard) • Potential for increased yields • To develop incrementally and monitor • Large abstraction possible from Penge mine • Could temporally over-abstract from Mogalakwena and Steelpoort aquifers. Expensive and long recovery periods 25

26. Existing Water Distribution Systems Polokwane Dam at proposed Rooipoort site Olifants / Sand Transfer Lebalelo pipeline Mokopane Lebowakgomo Burgersfort Arabie Bulk water supply Flag Boshielo Dam at proposed De Hoop site Jane Furse 26

27. Existing & Future proposed Bulk Water Distribution Systems Polokwane Dam at proposed Rooipoort site Olifants / Sand Transfer Lebalelo pipeline Mokopane ORWRDP proposed infrastructure Lebowakgomo Burgersfort Arabie Bulk water supply Flag Boshielo Dam at proposed De Hoop site Jane Furse 27

28. Proposed ORWRDP Bulk Distribution Systems Polokwane Proposed future infrastructure Lebowakgomo Dam at proposed Rooipoort site Mokopane Burgersfort Proposed bulk distribution infrastructure Proposed bulk distribution infrastructure Flag Boshielo Jane Furse Dam at proposed De Hoop site 28

29. Bulk Distribution Costs * Yield from Rooipoort insufficient to supply Jane Furse 29

30. Reconciliation Options (1)(Total project area) Flag Boshielo Rooipoort Rooipoort 30

31. Reconciliation Options (2)(Total project area) De Hoop Flag Boshielo 31

32. Reconciliation Options (3)(Total project area) • Include: • effluent transfer • groundwater De Hoop Flag Boshielo 32

33. Other Interventions • Water conservation and demand management • Re-use of effluent • Leasing of water • Re-allocation of water • Allocations not fully utilised • Assurance of supply optimisation 33

34. Water Demand Management • Urban: • Previous initiatives at Polokwane, Mokopane and Lebowakgomo • Additional 10 % saving = 2,5 million m3/a • Mining: • Already high water use efficiency • Irrigation: • WCDM to conform to Compulsory Licensing • Efficiency prerequisite at revitalisation • Rural: • Current savings potential small 34

35. Mogalakwena/Sand Options 35

36. Reconciliation Options Mogalakwena / Sand • Include: • effluent transfer • groundwater Transfers from Olifants 36

37. Reconciliation Options Olifants • Include: • effluent transfer • groundwater De Hoop Flag Boshielo 37

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41. Environmental/Social Aspects • Rooipoort • Significant social impact • Loss of valuable land resources possible fatal flaw • De Hoop • Manageable social and biophysical impacts • Water Trading • Could have negative social and political impacts 41

42. Conclusions of Public Participation • No fatal flaws • High expectations of compensation at Rooipoort. Conflicting messages and some mistrust of authorities • Perception of development opportunities lost/delayed at Rooipoort • Requires well planned communications strategy • Specific attention to affected land owners and communities 42

43. Institutional Arrangements for ORWRDP • Several options considered and organisations contacted • Proposals • DWAF as promoter and owner of works • Operation of dams/water resource system as national responsibility (Operate as system) • Operation and maintenance of bulk distribution by Lepelle Northern Water • LNW may implement bulk regional potable water supply systems 43

44. Financing Options for ORWRDP • Policy to fund commercially viable projects off budget • 50 % of project to serve mining sector, 10 % for mining related urban development 40 % for other domestic and urban requirements • Trans Caledon Tunnel Authority best placed to arrange off budget funding • Funding for public sector components to be investigated 44

45. Implementation Arrangements (1) • DWAF as promoter and owner of works • Design of dam(s) by DWAF • Design of bulk distribution by PSPs or DWAF • Detailed reviews required 45

46. Implementation Arrangements (2) • Construction of dams • If by DWAF, risk management must be resolved • Alternative to invite competitive bidding • Construction of bulk distribution through competitive bidding • Decision required by end May 2004 so as not to delay construction 46

47. Recommendations for ORWRDP (1) • Urgently proceed with implementation arrangements for dam of approx 300 million m3 storage, subject to environmental authorisation • A bulk distribution system be constructed between De Hoop and Atok • A pipeline and reservoir for bulk water supply to Jane Furse be constructed • A pipeline be constructed from Flag Boshielo Dam to Mokopane 47

48. Recommendations for ORWRDP (2) • Total capital cost of dam and pipelines/bulk distribution estimated at approximately R4 000 million (March 2004) • Development of groundwater and other interventions to be reviewed • Implementation of the Reserve a strategic issue tourgently be attended to 48

49. Recommendations for ORWRDP (3) • Possible options to further increased resource availability to be reviewed • A possible pipeline from Atok via Lebowakgomo to Mokopane be implemented as a future phase • Pro-active steps be taken to ensure the parallel implementation of potable water distributions systems 49

50. Programme for ORWRDP 50