Appointment of professional service provider to upgrade SAP from 4.7 to

ECC6, replace Old Modules and Implement Additional Modules.

WP 0538 WTETENDER BRIEFING

07 September 2012

BRANCH BACKGROUND INFORMATION

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Branch objective

The National Water Resources Infrastructure Branch is responsible for the Development of Water Resources Infrastructure to meet regional, social, economic and environmental objectives for all South African citizens.

It is also responsible for the Rehabilitation, Operations and Maintenance of existing infrastructure to ensure proper and strategic asset management

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Description of projects

MOKOLO AND CROCODILE RIVER (WEST) AUGMENTATION PROJECT• Structures include , the building of Pipelines, Pump Station and incorporate existing Exxaro infrastructure

OLIFANTS RIVER WATER RESOURCES DEVELOPMENT PROJECT: DE HOOP DAM (PHASE 2A) AND BULK DISTRIBUTION SCHEME (PHASES 2B-2G)

• Phase 2A – Construct a 88m High Roller Compacted Concrete Dam and associated infrastructure;• Phases 2B to 2G – Construct a Network of Pipelines, Reservoirs and Pump Stations.

VAAL RIVER EASTERN SUB SYSTEM AUGMENTATION PROJECT• Construction of a pipelines from Vaaldam to Secunda and a Pump Station

KOMATI WATER SYSTEM AUGMENTATION PROJECT• Construction of a pipelines and a Pump Station

MOOI MNGENI TRANSFER SCHEME• Construction of a 37m high Composite dam, pipelines and a Pump Station

HAZELMEREDAM• Increase the existing dam capacity by installing radial gates

CLANWILLIAMDAM• Increase the existing dam capacity by increasing the wall high

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Asset Class Extent Replacement Value (R bn)

Buildings 2 572 Number 2 301

Canals 8 036 km 29 073

Dams and weirs 359 Number 72 002

Measuring Facilities 3011 Number 7 381

Pipelines 1 063 km 8 044

Pump stations 57 Number 1 673

Reservoirs 51 Number 631

Treatment works 62 Number 69

Tunnels 171 km 18 354

Other 77 Number 85

State owned land 343 237 Ha 6 792

Servitudes 51 849 Ha 769

TOTAL 147 174

Extent of Assets

Distribution of assets

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Distribution of asset value

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WATER TRADING ENTITY

NWRI

CD: Infrastructure Development

CD: Operations

CD: Construction

CD: Engineering

Chief Financial Officer

Revenue Management

Supply Chain

Financial Accounting

Management Accounting

Assets Management

WRM

Water use allocations

Water Quality

Water use Control

Planning and Implementation

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WTE TOTAL INCOME 2012/13

WTE TOTAL INCOME R 8.5

billion

TOTAL NWRI INCOME R8.1 billion

Augmentation R1.7 billion

Water related sales R 2.3

billion

Other income R446 million

TCTA revenue R 3.7 billion

TOTAL WRM INCOME R484 million

Augmentation R154 million Water relater sales R330 million

Overview: WTE

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DDG:NWRI

Infrastructure Development

Capital Projects

ID Planning

Risk Management

Engineering Services

Mechanical and Electrical

Engineering

Civil Engineering

Integrated Environmental

Engineering

Technical Engineering

Support Services

Construction Management

Construction Support

Construction Equipment

Infrastructure Operations

Strategic Asset Management

Northern Operations

Eastern Operations

Southern Operations

Central Operations

Structure: per chief directorate

DIRECTORATE PURPOSE

Capital Projects To provide project management services for the implementation of water infrastructure development projects and large betterment projects

Risk Management The purpose of risk Management is to aid the Branch to identify potential risks that may impact on the organisation achieving its objectives and to proactively manage these.

ID Planning To receive project RID’s and Package them for implementation within the Capital Projects directorate

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Infrastructure Development

Infrastructure Development promotes business principles in the management of infrastructure, which includes managing risks associated with infrastructure implementation, and the management of business risks.

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Engineering Services The strategic aim of the Chief Directorate: Engineering Services function is to provide engineering, scientific, environmental services and support through the implementation of mandated projects for existing and new water resources infrastructure. This includes civil, mechanical, electrical, hydrological and environmental services.

DIRECTORATE PURPOSE

Mechanical and Electrical Engineering

Responsible for design, specification, quality control and contract administration of mechanical, electrical and electronic (telemetry, control and communication) systems for new and existing bulk water resource infrastructure.

Civil Engineering Civil Engineering Services (CE) includes design, specifications, quality control and site supervision during construction of new construction projects and rehabilitation of existing infrastructure; as well as the management including administration of civil contracts.

Integrated Environmental Engineering

includes social and ecological responsibilities for sustainable water resources infrastructure development, operation and maintenance and rehabilitation.

Technical Engineering Support Services

To supply technical support services for new projects as well as betterments/ alterations/ decommissioning of existing bulk water infrastructure projects in the National Water Resources Infrastructure Branch (NWRIB)

Structure: per chief directorate

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Construction Management:

The purpose of the Construction management is to construct new water resources infrastructure and rehabilitate existing infrastructure to meet social water needs and to facilitate economic growth and development.

DIRECTORATE PURPOSE

Construction Support Is responsible for the construction of new water resources infrastructure . They also supply administrative, HR , Financial; Human Relations support and Safety and Security for the 5 Construction Units

Construction Equipment They manufacture and refurbish mechanical equipment. It also ensures the procurement, operation, maintenance, rebuilding and disposal of construction equipment

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Infrastructure OperationsThe strategic purpose of the Operations and Maintenance component is to ensure that the bulk water resource infrastructure is operated and maintained in a safe and sustainable manner.

DIRECTORATE PURPOSEStrategic Asset Management

SAM provides Technical Support Services (Operations, Mechanical, Electrical and Civil Engineering) for the operation, maintenance, refurbishment and rehabilitation of existing bulk water resource infrastructure. The main purpose of this Directorate is to render a technical support function to the four operational areas for the operations and maintenance of the NWRI Branch Infrastructure. Furthermore it acts as the custodian of all Departmental dams.

Northern Operation

The strategic purpose of the Operations and Maintenance component is to ensure that the bulk water resource infrastructure is operated and maintained in a safe and sustainable manner. The operations function is split into three area offices (Hartbeespoort, Groblesdal and Tzaneen).

Eastern Operations

Eastern Operations ensures that the existing Water Resources Infrastructure in KwaZulu Natal are operated, maintained, rehabilitated and refurbished to provide effective and efficient supply of Bulk Raw Water for Economic growth, state land management, social development and poverty eradication.

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DIRECTORATE PURPOSECentral Operations Central Operations ensures that the existing Water Resources

Infrastructure in Gauteng, Free State and the Northern Cape Regions are operated, maintained, rehabilitated and refurbished to provide effective and efficient supply of Bulk Raw Water for Economic growth, social development and poverty eradication.

Southern Operations The strategic purpose of the Southern Operations Directorate of the Operations component of the NWRI Branch is to ensure that the bulk water resource infrastructure in the Eastern and Western Cape Provinces is operated and maintained in a safe and sustainable manner. The Southern Operations Directorate manages a number of bulk water supply schemes that can be roughly divided into Urban Supply Systems, Irrigation Schemes and Stand-Alone Schemes.

Infrastructure Operations (cont..)The strategic purpose of the Operations and Maintenance component is to ensure that the bulk water resource infrastructure is operated and maintained in a safe and sustainable manner.

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DIRECTORATE PURPOSE

REVENUE MANAGEMENT

• The purpose of the Revenue Management Directorate is to maximise timely billing and collection of revenue for the Water Trading Entity

• Overall responsibilities include the management of Water Trading Entity’s revenue, billing management, debt management, billing and collection of Water Research Levy on behalf of the Water Research Commission.

• Charging of interest on overdue accounts• Improved liquidity of the WTE through improved debtor collection

SUPPLY CHAIN MANAGEMENT

• The role of the Supply Chain Management function is to effectively manage the Supply Chain Management system as required by the PFMA, for the WTE.

FINANCIAL ACCOUNTING

• The purpose of Financial Accounting and Reporting is to ensure:• The effective and efficient management of Creditors • The effective and efficient management of Payroll • The accuracy and integrity of the Trial Balance• Accurate and timeous reporting• Internal and External audit queries are attended to

FINANCE

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DIRECTORATE PURPOSEMANAGEMENT ACCOUNTING

• The purpose of the Management Accounting function is to perform financial planning and price setting for WTE.

• Monitoring financial and non financial performance against the budget.

• To provide strategic financial support to the WTE• To perform financial modelling and data analysis for business

and decision making.

ASSET MANAGEMENT • Asset management broadly is, referred to any system whereby things that are of value to an entity or group are monitored and maintained.

• Furthermore the role of Asset Management Directorate evolves around reporting of both tangible and intangible assets in order to provide sufficient information.

FINANCE

END

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