Trans-Caledon Tunnel Authority

Mon, 26 Apr 2010 12:55

The Trans-Caledon Tunnel Authority (TCTA) is a state-owned organisation whose mission is to fund and develop bulk raw water infrastructure in a sustainable manner that is cost-effective and benefits the consumer. TCTA also provides an advisory service within the water sector.

TCTA's role in the implementation of projects is to raise the capital required for the project itself, and to manage all the associated risks during the phases of implementation. TCTA implements both infrastructure and advisory projects on behalf of the Department of Water Affairs (DWA).

On October 6, 2004, Cabinet approved the Vaal River Eastern Sub- System Augmentation Project (VRESAP) as an emergency infrastructure project. Later that year, on November 26, Ronnie Kasrils, the then Minister of Water Affairs and Forestry, directed TCTA to fund and implement VRESAP as an emergency project in terms of the National Water Act.

THE NEED FOR VRESAP

VRESAP is necessary to meet the growing water demands of Eskom and Sasol in the Mpumalanga Highveld. Eskom needs more water to be able to open more power stations while Sasol's increasing fuel production has necessitated a solution to augment water supply to the region in the form of VRESAP, also known as the Vaal River Pipeline Project.

The project will increase the existing yield of the region's Vaal River Eastern Sub-system (VRESS) by 160 million cubic metres per year, from an existing 301 million cubic metres per year. It will transfer water via large pumps through a 115km long, 1.9m diameter, buried steel pipe from the Vaal Dam, near the Vaal Marina boating resort, to Knoppiesfontein near Secunda.

From here the water will be diverted via existing pipelines to either the Bosjesspruit dam, for supply to Sasol's petrochemical facilities, or to Trichardsfontein dam to supply the Eskom power generation facilities. An additional 5.5km pipeline, between Knoppiesfontein and Bosjesspruit, will be installed to accommodate Sasol's future demands.

PROJECT IMPLEMENTATION

TCTA appointed two main contractors to implement this project. The first contract for the supply and installation of the 115km pipeline was awarded to the Mpumalanga Pipeline Contractors (MPC), a joint venture comprising Murray and Roberts Construction, J&J Group, WK Construction and Group Five Construction.

The second contract was awarded to a joint venture between a Chinese company called China Overseas Engineering Group (Covec) and Mathe Construction – a fully blackowned South African construction company – for the civic works and supply and installation of mechanical, electrical and instrumentation equipment.

As a means of meeting some of the socioeconomic and development targets, contractors working on the project were required to establish joint ventures with black enterprises. The level of black enterprise ownership on the venture was set to a minimum 25%. This target was to be maintained for the duration of the project; both the main contractors retained the 25% BEE stake throughout the contract period. Procurement targets were contractual and defined from the project area, black enterprises, SMMEs and BEE companies, and were monitored on a monthly basis.

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