Name of the Project
Mokolo-Crocodile Water Augmentation Project Phase 2A (MCWAP-2A).
Location
Limpopo, South Africa.
Project Owner/s
Trans-Caledon Tunnel Authority (TCTA), an entity of the Department of Water and Sanitation (DWS).
Project Description
The MCWAP-2A aims to augment water supplies to the Lephalale municipality, State-owned power utility Eskom’s Matimba and Medupi power stations and Exxaro’s Grootegeluk mine. It also aims to further allow for future economic development in the area.
The project is also essential for Eskom to implement the flue gas desulphurisation system to reduce the emissions of the Medupi power station.
The MCWAP-2A’s main components include an abstraction weir, a pumpstation and a 160 km pipeline. The bulk raw-water infrastructure is being designed and sized to meet existing and future demand over a 20-year period.
Potential Job Creation
It is estimated that the project will employ at least 1 000 people during its implementation, with 50% of the engineers on the project expected to be from a previously disadvantaged background.
It will also offer learnerships and bursaries to mostly previously disadvantaged people from the local community.
Capital Expenditure
The project is estimated at R12.3-billion (as at April 2018).
TCTA is responsible for securing the funding for the commercial portion of the project, totalling 88.9% of the costs, while the remaining 11% – the social portion that is allocated to domestic and general urban requirements – is to be funded from the fiscus, specifically through expected yearly transfers from the DWS.
Planned Start/End Date
MCWAP-2A is targeted for completion in May 2026.
Latest Developments
Progress on MCWAP-2A is being delayed by an environmental appeal currently with the Department of Environment, Forestry and Fisheries for adjudication. As part of the project preparation activities, the DWS and TCTA have concluded the Implementation Agreement.
The water supply agreements have been approved by the DWS and will be issued to commercial offtakers for approval and sign-off in due course. Once signed, and if the project receives environmental authorisation, TCTA will be in a position to source commercial funding for construction activities.
TCTA has said that timing is critical, as the water supply for power generation and Eskom’s compliance with World Bank loan environmental emission conditions are critical.
Key Contracts and Suppliers
GBN Joint-Venture, comprising Gibb, Bigen Africa Services and Nyeleti Consulting (professional service provider responsible for the design and construction supervision of the project).
On Budget and on Time?
Not stated.
Contact Details for Project Information
DWS spokesperson Sputnik Ratau, tel +27 12 336 6813 or email RatauS@dws.gov.za.