RWWTW ToR Feasibility and IRS v3

WATER SERVICES
REGIONAL BULK INFRASTRUCTURE PROGRAMME

CRITERIA
Terms of Reference: Feasibility Study and Implementation Ready Study for the Regional
Bulk Infrastructure Grant Programme (RBIG)
January 2011
This document should be read in conjunction with the following Annexures:
Annexure A: Key considerations in the required approach and methodology
Annexure B: A proposed template for the option analysis process that should be
adopted.
Annexure C: Draft prioritization criteria for projects
Annexure D: Tender evaluation criteria

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Table of contents
1 INTRODUCTION .................................................................................................................4
2 BACKGROUND...................................................................................................................4
2.1 Purpose of the overall programme ...............................................................................5
2.2 Purpose of the Regional Bulk Infrastructure Grant (RBIG) ...........................................5
2.3 Understanding “Regional Bulk” ....................................................................................6
2.4 Definitions....................................................................................................................6
2.5 Drivers of regional bulk infrastructure ..........................................................................7
3 SCOPE OF WORK..............................................................................................................7
3.1 Overview .....................................................................................................................7
3.2 Scoping and inception phase .....................................................................................10
3.3 Phase 2A: Technical feasibility study .........................................................................12
3.4 Phase 2B: Preliminary design and technical research and investigation ....................15
3.5 Implementation Ready Study .....................................................................................17
4. PROJECT ADMINISTRATION ..........................................................................................31
4.1 Study Duration ...........................................................................................................31
4.2 Name of project .........................................................................................................31
4.3 Client .........................................................................................................................31
4.4 Project Budget ...........................................................................................................31
4.5 Project Management Committee (PMC) ....................................................................31
4.6 Stakeholders Committee (SC) ...................................................................................32
5. TENDER PROPOSALS.....................................................................................................32
5.1 Previous Experience ..................................................................................................32
5.2 Methodology ..............................................................................................................32
6. TENDER EVALUATION ....................................................................................................32
6.1 `Enquiry Documents ..................................................................................................32
6.2 Evaluation Criteria .....................................................................................................33
7. PROJECT OUTPUT ..........................................................................................................33
7.1 Scoping / Inception Report.........................................................................................33
7.2 Progress Reports.......................................................................................................34
7.3 Three Main Report.....................................................................................................34
7.4 Skills Transfer ............................................................................................................34
8. COMMUNICATION ...........................................................................................................35
List of acronyms
ToR: Feasibility study and Implementation Ready study

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BEE Black Economic Empowerment

BOTT Built-operate-train-and–transfer
CIP Consolidated Infrastructure Programme
CoGTA Cooperative Governance and Traditional Affairs
CMA Catchment Management Agency
CMS Catchment Management Strategy
DoRA Division of Revenue Bill
DWA Department of Water Affairs
EIA Environmental Impact Assessment
EPWP Expanded Public Works Programme
GDP Gross Domestic Product
HDI Historically Disadvantaged Individuals
IDP Integrated Development Plans
IRS Implementation Ready Study
IRP Integrated Resource Planning
IWRP Integrated Water Resource Planning
IWRM Integrated Water Resource Management
KPI Key Performance Indicators
Kl/month Kilolitres per month
LA Local Authority
Mm3/a Million cubic metres per annum
MoA Memorandum of Agreement
MIS Management Information System
NRW Non-Revenue Water
NT National Treasury
NWA National Water Act
NWRS National Water Resource Strategy
O&M Operation and Maintenance
PMC Project Management Committee
PSP Professional Service Provider
PRV Pressure Reducing Valve
PPP Private Public Partnerships
RBIG Regional Bulk Infrastructure Grant
RO Regional Office
SC Steering committee
SMME Small, Medium and Micro Enterprise
WC Water Conservation
WDM Water Demand Management
WfGD Water for Growth and Development
WRM Water Resource Management
WSA Water Services Authorities
WSDP Water Services Development Plans
WSI Water Services Institutions
WSRF Water Services Reference Framework
WTW Water Treatment Works
WWTW Waste Water Treatment Works

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1 INTRODUCTION
Based on the Department of Water Affair’s (DWA) initial role of managing the Regional
Bulk Infrastructure Grant (RBIG), a wider programme has evolved with the aim to
integrate and consolidate all bulk water supply issues under one national programme
referred to as the regional bulk water supply programme. Critical to this programme is
effective integrated planning.
Historically water resource planning is the responsibility of DWA together with

Catchment Management Agencies (CMA) and water service planning is the
responsibility of Water Services Authorities (WSA). The responsibility for planning of
regional bulk infrastructure however is not often clear and has often varied between
different organizations. The situation was made more complicated with the enactment of
the Water Services Act of 1997, whereby Water Boards effectively became Water
Services Providers and had no real authority. The issue of effective management and
planning of bulk infrastructure has recently also become critical not only with regards to
regional bulk but also with regards to internal bulk due to lack of adequate institutional
capacity within WSA.
As part of the RBIG programme, the Department has allocated money for carrying out
feasibility and Implementation Ready Studies (IRS) for the proposed bulk projects that
have been identified. Once the final Implementation Ready Study has been completed
and approved the proposed project or scheme will be eligible for funding for
implementation through the RBIG programme. The Department’s policy is that no
projects unless they are considered emergency projects and comply with the RBIG
criteria will be considered for funding unless there is an approved Implementation Ready
Study.
The following is the terms of reference for consultants that wish to submit proposals for
the development of a feasibility and Implementation Ready study (IRS) for the
__________________ project. The closing dates for the proposals, is
_________________.
2 BACKGROUND
Bulk infrastructure connects the water resources to the distribution system which
supplies water to the consumers, and also includes waste water infrastructure such as
waste water treatment plants. The development and effective management of regional
bulk infrastructure plays a vital role in overcoming the key challenges in the water
industry.
DWA, as the custodian and sector leader in the water industry, has a key role to play in
ensuring the effective development and management of regional bulk infrastructure.
DWA’s role is made more important considering the apparent lack of regional institutions
in many areas to effectively manage regional bulk water supply and the reduced
capacity and resources of many of the water services authorities (WSA) to be able to
carry out these functions.

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During 2007, National Treasury (NT) approved the funding of a three year programme to
support WSAs and the water industry to implement regional bulk infrastructure projects.
The programme has been appropriately named RBIG (Regional Bulk Infrastructure
Grant). The funding of RBIG has been subsequently extended and it is now considered
an ongoing programme and not a once-off programme.
2.1 Purpose of the overall programme
The purpose of the overall regional bulk programme is to develop an oversight function
that will ensure the construction of enabling infrastructure and of operations and
maintenance of regional bulk infrastructure in the water sector. The objectives of this
programme are as follows:
a) Identify all regional bulk project requirements, through appropriate planning

processes.
b) Assist with the implementation of infrastructure projects and where necessary

assist in the funding of projects through RBIG.
c) Ensure that existing regional bulk infrastructure is properly operated and

maintained.
d) Facilitate the development of institutional arrangements and capacity to ensure

the implementation and effective operation and maintenance of regional bulk
infrastructure.
2.2 Purpose of the Regional Bulk Infrastructure Grant (RBIG)
The availability of funding from National Government for the implementation of regional
bulk infrastructure projects will be from revenue made available by National Treasury
(NT). The funds made available from NT will be referred to as the Regional Bulk
Infrastructure Grant (RBIG).
RBIG is a specific purpose capital grant with the objective to supplement the financing of
the social component of regional bulk water supply and sanitation infrastructure. The
application of these funds is specifically for:
a) “Water supply” and “sanitation” regional bulk infrastructure, with the focus on
“regional” characteristics and the “infrastructure” element;
b) Macro and regional “bulk” infrastructure (schemes). Internal bulk infrastructure is

to be funded under alternative funding mechanisms (e.g. the MIG for the basic
services component);
c) The “capital” component of the scheme. This includes all aspects relating to the
implementation of the infrastructure, planning, design, procurement, construction
as well as setting-up the institutional arrangements for sustainable operation and
management. (Funding for the actual operation and maintenance must be
obtained from alternative funding mechanisms);

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d) The “social component” and the “enabling economic environment” only. This is
the portion of the regional bulk infrastructure cost that provides for basic domestic
use, associated social requirements (e.g. schools and clinics) and the socio-
economic development objectives. While this fund must enable economic
development, the proportional capital cost for higher levels of domestic,
commercial and industrial uses must be obtained from suitable co-funding or
financing mechanisms;
e) The fund “excludes macro water resource developments” such as large dams
which require special funding mechanisms. It must, however, be noted that there
has to be strong linkages between the planning of the regional bulk water
resource projects and regional bulk water services schemes.
f) Due to the complexity and extent of regional bulk infrastructure projects and the
need for implementation readiness, a specific component of the fund will pro-
actively be made available for “planning and feasibility studies”. This includes
socio-economic analyses, financial viability and financing plans, institutional
arrangements as well as life-cycle planning and asset management.
This fund aims to support Government’s development targets as well as socio-economic

priorities such as the enablement of growth and development initiatives as well as
addressing specific water risks (e.g. water availability, water quality and environmental
challenges).
2.3 Understanding “Regional Bulk”
The term regional bulk could have many interpretations, and although the previous
policy document (2007) on regional bulk water gave an adequate explanation, it was
often misinterpreted and misunderstood. The previous definition also limited the scope of
infrastructure projects that this programme needs to urgently address. In particular the
previous definition excluded most wastewater treatment plants. Although ideally this
programme should include all bulk infrastructure, it is limited to regional bulk for two
main reasons, firstly because internal bulk is part of the MIG programme and secondly
because the national oversight management of smaller internal bulk infrastructure
schemes is not deemed necessary. The key element to the definition of regional bulk is
to distinguish it from internal bulk. The criterion that is used to distinguish regional and
internal bulk has been expanded to include any bulk system that has a significant impact
on water resources.
2.4 Definitions
Regional bulk Infrastructure is defined as:
The infrastructure required to connect the water resource, on a macro or sub-regional

scale (over vast distances), with internal bulk and reticulation systems or any bulk supply
infrastructure that may have a significant impact on water resources in terms of quantity
and quality.
 “Macro” is defined as infrastructure serving extensive areas across multi-
municipal boundaries.

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 “Sub-regional” is defined as large regional bulk infrastructure serving numerous

communities over a large area normally within a specific district or local municipal
area.
 Over “vast distances” is considered as any distances greater than 5 km.
 Bulk infrastructure that has a “significant impact on water resources” includes:
o Any bulk scheme that is designed for maximum demand of 5 Ml/day or
more,
o Any waste water treatment plant that discharges into a fresh water
resource system,
o Any water treatment plant that is designed for a maximum demand of
more than 2 Ml/day
Internal bulk Infrastructure (social component can be funded by MIG), is defined as:
 The infrastructure within a specific municipal area or scheme connecting the

water resource or regional bulk system with reticulation networks.
 the infrastructure required to connect effluent/waste water from internal
reticulation systems to appropriate treatment plants with associated discharge to
the relevant water systems. NB: – it excludes internal reticulation.
2.5 Drivers of regional bulk infrastructure
The initiative to address regional bulk water services infrastructure has its origin in and is
driven by various water services challenges:
a) Need to address access to basic services:
b) Need to support economic growth and development
c) Need to improve water services quality, both in terms of drinking water quality
and the treatment of wastewater.
d) Need to address flagship and priority projects under threat
e) Need to address asset management - or the lack thereof
f) Need to augment water resources due to scarcity and droughts.
3 SCOPE OF WORK
3.1 Overview
The feasibility study and IRS is effectively divided into four phases or deliverables as
illustrated in the

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Table 1 below. After each phase is completed a review process will take place before
the following phase can continue. It must be emphasized that DWA could suspend the
study after the completion of any of the phases.
In addition to the scope of work described in this section, PSPs are required to take note
of a number of key considerations listed in Annexure A, and where possible integrate or
adopt these into the studies.
The following deliverables are envisaged:
a) Scoping report: The initial planning phase for a technical feasibility study where
the need is identified and all the relevant background information is documented
and assessed.
b) Technical feasibility report. This report describes the proposed technical

intervention and documents the analysis and methodology on how the proposed
solution was determined. An option analysis is also included for larger projects
particularly for water resource augmentation related projects.
c) Preliminary design report: This is the preliminary design of the bulk

infrastructure scheme where various technical options are identified and
evaluated. The deliverable from this study will include a budget estimate for the
development of the project.
d) Implementation ready study report: This is a report detailing all the necessary
approval requirements regarding, financial, economic, social, technical, legal and
sustainability criteria. The less complicated and smaller the project the less
information will be required in such a report.

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Table 1: Overview of different phases of study

Phases: Deliverables Description Review-Process; by who
Summary of proposed project By: DWA HO / RO

Overview of available information 1) Go ahead to proceed
Review Strategic and planning issues 2) changes to scope of project
Phase 1: Scoping - Review integration with other schemes 3) changes to scope of study
inception, report
Determine social /economic 4) Agree on potential co-funding
component split
Revision of scope of work for study
Demand analysis By: DWA HO / RO, WSA

Review of WC/WDM / use efficiency 1) Acceptance of demand analysis
Water quality analysis /review
Phase 2A: Technical Analysis of existing infrastructure 2) Acceptance of WC/WDM
feasibility Identify various options 3) Agreement on list of options
Define design /planning criteria 4) Agreement on design criteria
Feasibility of various options 5) Agreement on preferred option
Option analysis
Preliminary design By: DWA HO / RO, WSA

Limited field research / investigations 1) Approval of cost estimate
Water license application 2) Obtain water license or
Phase 2B: Preliminary preliminary agreement
design and research Research for EIA approval process 3) Approval of preliminary design
Detailed cost estimates and time 4) Approval of O & M plans
frames for implementation
O&M / asset management plans 5) EIA approval or process
ongoing
Economic criteria By: Stakeholder review committee

Institutional criteria 1) Approval on Check list
financial criteria 2) Determine Conditions for
Phase 3: Implementation approval
ready study Legal criteria 3) Determine risks
Social criteria / consumer acceptability 4) Stakeholder consensus
Stakeholder consensus 5) Review of funding split
Calculate prioritisation template 6) Allocate prioritisation scoring

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3.2 Scoping and inception phase
The objectives of this phase are as follows:
a) To review the motivation and need for the study.
The following aspects should be addressed in this regard:
 Definition of problem;
 Intention of study;
 Identify the main driver for the study / project;
 Linkages of proposed study to backlogs;
 Why the proposed project should be considered a regional bulk project;
 Purpose of the study, and
 How the study / project was identified or determined.
(Did it originate from the Regional Bulk Master Plan?)
b) Review strategic and planning issues
 In line with Water Services Development Plan and Integrated

Development Plan?
 In line with Provincial Growth & Development Strategy?
 Are other parts of the water / sanitation supply chain in place and if not
what is in planning phase?
 Strategic importance, delivery targets;
 The current and propose level of service to be achieved;
 Economic growth requirements;
 Water scarcity;
 Functional criticality of total scheme and specific components.
c) Overview of area and demographics
An overview of the overall demographics of the area to be serviced by the

proposed study / project should be included.
The following aspects should be addressed in this regard and agreed with DWA’s
planning directorates:
:
 Population to be served
 Profile of population to be served
 Historical / expected population growth rate
 Existing infrastructure
d) Describe the overall environment
Reference should be made to the overall environment including the history of

service provision as well as the institutional arrangements.

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e) Overview of current demand and future demand projections
The PSP is required to identify the available information on existing demand and
future demand projection calculations. Should the available information not be
adequate or considered to be inaccurate, provision should be made to carry out
more detailed investigations in the next phase of the study.
f) Review all available information and infrastructure
The PSP is required to identify all available information that may have an impact
on the proposed project and determine and reference the information that will
influence the project.
The following type of available information / reports should be identified and

reviewed:
 Identify and review all existing reports;

 Identify and review existing WSDP / IDP;
 Identify and review all relevant strategies, and
 Identify and review all relevant planning studies.
Some of the topics and information that should be identified from other studies
are as follows:
 Verify the key drivers and parameters for need;

 Demographic information;
 Information on demand and population growth rates;
 Review current capacity of existing infrastructure;
 Identify any other existing study or proposed project that could have any
impact on project;
 Establish the planning requirements of key stakeholders and water
services institutions, and
 Establish whether there are any other adjacent projects or needs that can
be combined with the proposed project.
g) Review the scope of the study
The PSP is required to identify the scope and nature of the proposed study.
 Revise the proposed methodology and scope of work for the further
phases of the studies.
 Incorporate input from the Department and the relevant local authorities
on the proposed methodology of the study.
h) Scope and project alternatives

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The type of RBIG project should be identified according to the various RBIG
project classifications. If the proposed project scope or proposed options are
known they should be identified, listed and briefly described.
i) To gain consensus from key stakeholders on the need for the project
It is important that the PSP illustrates the consensus of the proposed study/
project of all key role players. These should include all relevant municipalities;
key benefiting consumers, other departments, and any relevant water boards.
If there is a water board supplying services in the area, they should be consulted
with regards to their potential role to assist in resolving the problem.
j) To determine the broad funding requirements
It is important to determine a rough estimate of the cost of the proposed

project. If the nature of the proposed project is not known, assumptions must be
made in order to get some order of magnitude on the type of cost that can be
expected.
Also of key importance is the determination of the social /economic component of

the project. RBIG can only fund the component of the project which will provide
social services.
The deliverable of the scoping phase will be a scoping / feasibility report. The
Department will review the scoping report and at the end of this report the following
decisions will be determined:
a) Whether the study/ project is still required.

b) Finalization of the scope of work and budget for the further phases of the study.
c) Direction as to the scope of the project.
d) Principle agreement on potential funding split between RBIG and other
stakeholders.
3.3 Phase 2A: Technical feasibility study
The objectives and requirements for this phase of the study are as described below. It
should be noted that depending on the nature of the need / project not all the specified
objectives and requirements will be necessary.
a) Carry out a detail demand analysis
The foundation of any bulk infrastructure requirement is an analysis of the current

demand and a projection of the future demands. The PSP needs to clearly
illustrate the calculations and assumptions of the proposed demand for the
proposed project.

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 Existing Demand analysis

o Illustrate sectoral usage (i.e. commercial, domestic)
o Illustrate Non-Revenue Water (NRW) and distribution losses
o Illustrate the water demand balance
 Identify water inefficiencies and wastage
o An assessment of the water use efficiency for the different
categories of consumers.
o WDM opportunities of NRW.
o WDM opportunities of revenue water
 Future demand projections

o Identify and review any existing information and calculations on
population projections.
o Identify the demand drivers for the various consumers.
o Illustrate low and high demand projections.
o Illustrate what the assumptions are based on.
o Illustrate possible impact of WC/WDM.
o An incremental plan on how the demand and supply can be
reconciled, illustrating the role of WC/WDM and the role of various
water augmentation options.
The PSP is not expected to carry out a detail investigation on the above
requirements as it is expected that such information should be available. Some
investigations on missing information can be carried out if identified and agreed
to during the inception phase. All sources of information should be clearly
identified.
b) Water Conservation / Water Demand Management / water use efficiency
The water resource planning protocol requires that WC/WDM is considered the
first water resource augmentation option. It is also important to consider that most
bulk infrastructure requirements can be alleviated or reduced in size considerably
through the reduction of water losses or through the efficient use of water.
The PSP is required to analyze and describe the following:
1. The impact of WC/WDM on the planning of RBIG infrastructure
 Determine possible impact of WC/WDM on proposed RBIG

project, in terms of cost.
 Identify WC/WDM projects that will viably reduce the size of RBIG
infrastructure projects.
 If WC/WDM will not impact on proposed RBIG project, illustrate
why.
 Illustrate what design criteria will be incorporated into the design of
the infrastructure option selected in terms of water use efficiency
(i.e. no pressures higher than 5 bar).
 Illustrate what features of RBIG design enhance effective
management, i.e. bulk meters, PRV, low pressures.
2. The impact of WC/WDM on the Economic / financial viability of project

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 Illustrate how the current water losses, Non-revenue Water and

non-payment levels can affect the financial viability of a proposed
infrastructure project and what needs to be undertaken to ensure
the sustainability of the proposed project.
3. The impact of WC/WDM on O & M of the RBIG project
 Illustrate the distribution management measures to reduce losses.

 Illustrate associated consumer demand management measures
from water supplied from RBIG
c) Water quality investigation
The extent of an investigation on the existing water quality will depend on the
nature of the proposed project. Allowance for various levels of investigations on
water quality should be made in this section of the study. The PSP will be
required to identify the required steps, methodology and costs in this regard.
Cognizance should be taken regarding any existing information that is available.
Some of the types of activities that should be considered are as follows:
 Water quality assessment based on numerous water samples.

 Investigation of upstream point of pollution.
 Identification of possible pollution risks.
 Water quality monitoring plan.
 Water quality management plan.
d) Analysis of existing infrastructure
Some requests for new infrastructure are based on the assumption that the
existing infrastructure is not adequate, are beyond repair or cannot cope with the
existing demand. Often such assumptions are, however, incorrect and the
following circumstances can negate the need for new proposed infrastructure:
 Rehabilitation of existing infrastructure;

 Optimization of existing infrastructure;
 Upgrading of existing infrastructure;
 Reduction of reticulation losses and inefficient water usage, and
 Reduction of storm water infiltration (for Waste Water Treatment Works)
The PSP is required to clearly illustrate why the existing infrastructure cannot
cope with the existing and future demand and clearly motivate for the need for
new infrastructure.
Some of the types of activities that should be considered are as follows:
 Assessment on the capacity of existing infrastructure

 Assessment on the performance of existing infrastructure
 Assessment on the condition of existing infrastructure

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e) Identify various options
There are various types of bulk infrastructure projects and in some cases the type
of projects will consist of typical water infrastructure components such as
pipelines or reservoirs. In such cases there will be limited choices in the type of
project or scheme that can be proposed.
There are, however, instances where the planning requires consideration of

various alternative options, particularly with water augmentation related bulk
projects. In such instances it is necessary to identify and list all the possible
options that could meet the project objectives.
f) Feasibility of different options
Analysis and investigations of all the different options should be carried out in
order to enable adequate comparison and assessment. Some of the aspects the
analysis should include are financial, technical, operation and maintenance,
practicality, risk and surety of supply.
g) Design criteria
The key design criteria that will influence the scope and size of the proposed
infrastructure should be identified. All assumptions should also be stated and
discussed.
h) Option analysis
When there are more than three options to meet the planning needs, it is
necessary to carry out an option analysis. Such an option analysis must be tested
according to various criteria and the weighting of such criteria must be
determined in conjunction with other key stakeholders.
Annexure B is a proposed template for the option analysis process that should
be adopted.
The deliverable of the technical feasibility phase will be an option analysis report
documenting the various options and indicating the final option selected for the project.
The report should also clearly indicate the participation process of key stakeholders,
their comments on the option analysis and also include the preliminary approval of the
option selected by stakeholders, WSA’s, planning officials of DWA as well as the
approval of the regional head.
3.4 Phase 2B: Preliminary design and technical research and investigation
Once the most feasible project option has been selected, it may be necessary to
undertake further research and investigations and also carry out a preliminary design;
this phase may not be necessary for some projects and could be combined with phase

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2A. The requirement of having phase 2A and phase 2 B as separate studies is mainly for
large scale water augmentation related projects or large scale water supply schemes.
The reason for separating the two phases is to ensure that consensus is reached on the
appropriate scheme or option before more detailed investigations and designs are
carried out.
The envisaged objectives and requirements for this phase of the study are as described
below.
a) Further research / investigations
Depending on the nature of the project the following type of activities could be
required:
 Supply of electricity must be investigated

 Bore hole exploratory yield testing; (this may be needed to decide on the
most appropriate option)
 Land survey;
 Geological investigations;
 Further water quality tests;
 Further WC/WDM analysis;
 Topographical survey, and
 Surge and water hammer analysis.
b) Preliminary design
A preliminary design must be developed in order to allow further investigations

and planning to meet various requirements, in particular enabling of the EIA
process and more detail budgeting. The preliminary design should address
issues of land ownership and servitude. The major components of the proposed
infrastructure should be identified and key design parameters such as size should
be determined. With regards to bulk water supply systems it is expected that
hydraulic modelling analysis should be undertaken under this phase.
For very large projects it is proposed that various implementation phases are
identified. Such phases must be independent of each other and must be able to
provide services irrespective whether subsequent phases are implemented.
c) Water use license application
If a water use license is required, it is expected that under this phase all the
necessary research and documentation shall be completed and submitted to
DWA for a water use licenses approval. Although it is not the responsibility of the
PSP to submit the application, the PSP is required to assist and compile the
necessary documents on behalf of the water services institutions that this study /
project will benefit.
d) EIA approval process
Similarly to the water use license approval process, the PSP shall initiate the
process to obtain an EIA approval if required. Some of the EIA processes may

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take longer than 10 months. In such cases DWA may allow the study to carry on
before the EIA approval is obtained provided it is considered a low risk that the
EIA will not be granted or provided the project requirement is considered as an
emergency.
e) Project implementation plan: cost estimate and time schedule
A more detailed cost estimate should be carried out based on the preliminary
design. PSP are expected to calculate the cost estimates within a 10% accuracy
level. All key assumptions and all possible implementation variations should be
identified. A required implementation plan indicating the various stages of
implementation, the critical path and the expected duration for the completion of
the project should also be developed.
f) O & M and asset management plans
Sustainability of the proposed infrastructure once the proposed project or scheme

is completed is one of the key concerns of DWA and National Treasury who are
funding the RBIG programme. Although detailed O & M / asset management
plans of the proposed project are not possible until the detail designs are carried
out, a preliminary plan / strategy is required in this phase of the study. The
purpose of the preliminary plan / strategy is to identify the cost, resources and
commitment required by the benefiting water services institution.
The following aspects relating to O & M and asset management must be

determined:
 O & M activities required;

 O & M budget required;
 Human resources required;
 Assessment of existing human resources of benefiting institution;
 Water management plan associated with project (i.e. Zone meters,
valves, telemetry);
 Strategy to minimize performance failures of proposed project, and
 Strategy on how to optimize the proposed infrastructure
The deliverable of the preliminary design phase will be a report documenting the
findings and methodology of the various requirements specified above. The report
should clearly indicate that the benefiting water services institution understands and
fully agrees with the findings of the report.
Before the next phase commences, DWA will need to approve the findings of this
phase and approve the implementation of the next phase.
3.5 Implementation Ready Study
3.5.1 Overview
The objectives and requirements for the Implementation Ready Study (IRS) are as
indicated in the Table 2 below and described in the following sub-sections. The table

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below should also be used as a checklist and although the topics listed in the table must
be described in more detail in the IRS report, the PSP is also required to develop a short
summary of each issue and include the summary on a completed checklist table. The
completed checklist table must provide relevant page references to the main report.
(Create a column for page referencing on the right hand side.)
It should be noted that a number of the requirements specified would have been
determined in the previous studies / phases. In such instances the IRS report should
highlight briefly the required answers and provide direct references to the other reports
for more detailed information.
Table 2: Criteria checklist of the Implementation Ready Study
CRITERIA
1 Strategic & Planning issues
1.1 In line with Water Services Development Plan and Integrated Development Plan? WSDP
1.2 In line with Provincial Growth & Development Strategy?
1.3 Are other parts of the water / sanitation supply chain in place
1.4 Strategic importance, delivery targets
1.5 Do all parties agree to the need & technical proposal
1.6 Level of service
1.7 Economic growth requirements
1.8 Water scarcity, etc.
1.9 Functional criticality of total scheme and specific components
1.10 Extent of cost
1.11 Available co-funding
2 Social criteria:
2.1 Number of households & people to be uplifted to basic and higher service levels
2.2 Number of poor households to be served and the social cost (capital and operation)
2.3 Number of jobs to be created (temporary and permanent, by gender & age category)
2.4 Affordability of proposed water tariffs (per service level and community)
2.5 Contribution towards poverty eradication, social upliftment and health improvement
2.6 Number of associated services benefiting (e.g. schools, clinics, communal facilities)
2.7 Socio-political support for the proposed development options (per development option)
3 Economic criteria:
3.1 Number of current businesses and industries to be served (by type and water use category)
Expected economic value to be generated by the new businesses (GDP before & after) as
3.2 result of the project
Number of SMMEs and BEE enterprises to benefit (by type & monetary value/benefit) during
3.3 project and as an indirect result of the project
Regional economic benefit from the proposed water users and their value chain integrated
development objectives (socio-economic benefits, provincial growth & development objectives,
3.4 IDPs and associated sector programmes like housing)
4 Technical criteria:
4.1 Is the project part of a Master Plan proposal

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CRITERIA
4.2 Appropriateness and acceptability of solution
Appropriate water resource choice & adequate water allocation (confirmed / approved by DWA
4.3 WRM re choice, water license - volume, assurance & quality)
Compliance to water demand / water conservation objectives (acceptable water losses and
4.4 appropriate plans to reduce / control water demand). Is a WDM / WC Strategy / Plan in place?
Optimal choice of bulk distribution networks (pipeline routes, pump stations and bulk storage)
4.5 considering full life-cycle cost(capital, financing, operating & maintenance cost)
4.6 Proof of best suited technology (pro’s and con’s per option)
5 Institutional criteria:
5.1 Indicate who will own the infrastructure
5.2 Confidence in the capacity of the institution to implement
5.3 Agreements on infrastructure ownership (per scheme component)
5.4 Agreement on implementation responsibility (per scheme component)
5.5 Proof of implementation capacity (e.g. capital expenditure over last 3 years)
5.6 History on past implementation quality & performance (e.g. functionality audits)
5.7 Agreement on operating responsibilities (per scheme component)
5.8 Proof of adequate staff numbers and skills levels (per scheme component)
5.9 History on water services interruptions (annual interruptions in household-days)
5.10 Commitments for above by institutional leadership (e.g. municipal mayor and council)
5.11 Cooperation agreements between key stakeholders
5.12 Approval of institutional arrangements
5.13 Cost recovery system (including policy on free basic water and non-payment)
5.14 Water conservation and demand performance by institution
5.15 Responsibilities & accountability
6 Financial criteria:
6.1 Available funding (grant, loan & investment)
6.2 Funding conditions (repayment period, interest)
6.3 Financial analysis of cost projections (cash flows)
6.4 Financial modeling of projected income taking into account affordability
6.5 Proposed tariff adjustments to reconcile cost and projected income
6.6 Financial viability and expected return on investment over expected useful life
6.7 Financial status, performance and creditworthiness of municipality and implementing agents
7 Legal criteria:
7.1 Has a water license with adequate allocation for all uses been approved
Has an environmental authorization been granted for the construction of the scheme (based
7.2 on accepted environmental impact assessment and public participation process)
7.3 Have all land and property rights issues been addressed (land acquisition & servitudes)
8 Sustainability criteria: critical issues included under this criteria are:
8.1 Financial viability
8.2 Operating and management capacity, performance and commitment
8.3 Environmental and social acceptability and impact

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3.5.2 Strategic & Planning issues
Some of the strategic planning issues would have been addressed in the scoping study
but should be revised once the project scope has been defined and the feasibility studies
have been completed. The following strategic and planning issues have to be addressed
with reference to the proposed project:
1. Is the project in line with Water Services Development Plan (WSDP) and
Integrated Development Plan (IDP)?
The report must give an indication and attach as an annexure direct reference of
the project within the WSDP and IDP. Should there be any deviation from the
scope of work identified and the WSDP this should be discussed.
2. Is the project in line with Provincial Growth & Development Strategy, The Water
for growth and Development strategy and the turnaround strategy?
The PSP must illustrate how the proposed project is aligned to the Provincial
Growth & Development strategy, the WFGD and the turnaround strategy.
3. Are other parts of the water / sanitation supply chain in place?
An indication and description of any current works that is associated with the
regional bulk infrastructure project must be highlighted. If the associated
infrastructure is not yet in place, any existing plans and commitments should be
identified. In such circumstances a motivation on why the RBIG project should
proceed before the connecting infrastructure is implemented or completed should
be strongly motivated.
4. Strategic importance, delivery targets.
The key drivers for the project should be identified and discussed. If there are
more than one drivers, an estimate percentage between them should be
calculated (i.e. 70 % of the driver is backlog, 30% is economic activity)
The motivation and need for the project as described in the scoping report should
also be given.
5. Do all parties agree to the need & technical proposal?
The PSP should indicate if consensus on the technical option was reached and
how such a consensus was obtained. An indication should be given as to the
different viewpoints with regards to the technical option preferred by various
stakeholders and the reasons why such proposals were not adopted.
6. Level of service.
Often the level of services is determined without adequate consideration of

financial viability. The PSP is required to indicate the level of service adopted with

21
reference to the proposed RBIG project and also comment and review whether
the level of service selected is appropriate and affordable.
7. Economic growth requirements
The proposed solution must illustrate and comment whether the economic growth
requirements have been taken into account and what role the proposed RBIG
project will contribute to the economic growth requirements of the region that will
benefit from the project.
8. Water scarcity, etc.
The PSP should indicate whether the proposed project is addressing water
scarcity issues and whether the proposed project will help address water scarcity
issues.
Conversely, depending on the nature of the proposed project, the PSP should
identify how and what risks if any the proposed project will be affected by
possible drought and water scarcity.
9. Functional criticality of total scheme and specific components
The key purpose and function of the proposed project or scheme must be
identified and discussed. The consequences and risks of not implementing the
project should be also identified.
10. Extent of cost
The capital and operating costs of the proposed project should be identified,
analyzed and compared with other similar projects. The PSP must illustrate any
possible cost saving measures adopted and whether the proposed project is
economically efficient. Cost per consumer benefiting and cost per unit of water
(or effluent) figures should be determined.
Should the unit cost of the project be higher than accepted, a motivation
explaining the reasons should be given.
11. Available co-funding
A commitment by the benefiting authority as to available co-funding should be

provided. The PSP must also illustrate how the co-funding will be secured. Any
financial arrangements with lending institutions or private consumers must be
indicated.
3.5.3 Social criteria
Some of the social criteria that need to be addressed as part of the IRS are as follows:
1. Identify the number of households & people to be uplifted to basic and higher
service levels.

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RBIG projects do not provide direct access to water services, but provide the
enabling infrastructure so that reticulation networks can provide such services.
The report should indicate the proposed project’s role, the number of consumers
and which communities it will enable the provision of basic services or uplift the
provision to a higher level of service.
2. Identify the number of poor households to be served and the social cost (capital
and operation)
Poor households are those considered to be classified as indigent by the relevant

municipality. The PSP must illustrate the definition of indigent households
adopted by the municipality and also indicate how the number of poor
households was determined. Reference must be made to an indigent register if
one exists.
3. Identify the number of jobs to be created (temporary and permanent,)
The jobs created should be developed in accordance to the table below.
During construction of the After the project is completed

NO. OF PEOPLE EMPLOYED AT project
VARIOUS OCCUPATIONAL LEVELS: No of people Pe rson Days No of people Person Days
Clerical
Labourers
Managerial
Semi-Skilled
Skilled
Supervisor
TOTAL
If the benefiting institution would like to impose certain targets in terms of the use
of women, youth and previously disadvantaged individuals, these should be
stated in the IRS report.
4. Identify the affordability of proposed water tariffs (per service level and
community)
The proposed water /sanitation tariffs increases to meet the increased cost of the
proposed project must be determined. (The analysis and tariff increases should
be included under the financial criteria)
Most municipalities should have an affordability study, and the PSP should
reference such a study. An estimate should be made as to how many consumers
will be able to afford to pay for services over and above the provision of basic
services. Should an affordability study not be available the PSP must make
estimated guesses on the affordability on various categories of consumers.

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5. Contribution towards poverty eradication, social upliftment and health

improvement
The PSP should identify and quantify how the proposed projects will assist
towards poverty eradication, social upliftment and health improvement.
6. Number of associated social services benefiting (e.g. schools, clinics, communal

facilities)
The number of associated social services benefiting should be divided into

existing and future services. Estimates on future services should be based on the
“Human Settlements Planning and Design Guidelines”.
7. Socio-political support for the proposed development options (per development

option)
Should there be objections to the proposed project option, the PSP may have to
undertake consumer facilitation workshops to gain the acceptance and support of
the proposed development options of the project. If the proposed project is
deemed to be contentious, adequate consultation should be provided through the
study.
One example where extensive consultation may be required is with regards to the
provision of borehole water. In general borehole water is often rejected by
communities although this is often the most feasible solution.
3.5.4 Economic criteria
Some of the economic criteria that need to be addressed as part of the IRS are as
follows:
1. Number of businesses and industries to be served (by type and water use
category)
The number of business and industries to be served should be divided into

existing and future consumers. Estimates on future consumers should be based
on the “Human Settlements Planning and Design Guidelines”. If there are any
existing large scale commercial or industrial consumers (i.e. mines) that will
benefit from the proposed project, they should be identified and discussed in the
report.
2. Expected economic value to be generated by the new businesses (GDP before &
after) as a result of the project
A brief survey of existing / commercial consumers should be carried out to

determine the potential economic value to be generated by the new businesses.

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3. Number of SMMEs and BEE enterprises to benefit (by type & monetary
value/benefit) during project and as an indirect result of the project
The PSP should identify what sections of the work and the monetary value can
be implemented through the Expanded Public Works Programme (EPWP).
An assumption should also be made as to the value / and benefit of the proposed
project that can be awarded to SMMEs and BEE enterprises.
4. Regional economic benefit from the proposed water users and their value chain
integrated development objectives (socio-economic benefits, provincial growth &
development objectives, IDPs and associated sector programmes like housing)
Any linkages between the provincial growth and development objectives, or other
government strategies should be identified and specified. An example is to
specify any major economic development such as the establishment of a new
mine that the project will enable.
3.5.5 Technical criteria
Most of the technical criteria would have been addressed in phase 2A or phase 2B of the
study. The following issues need to be summarized and referenced as part of the IRS
report.
1. Is the project part of a Master Plan proposal?
Specify which master plan proposal and when the master plan was developed
and by which institution.
2. Appropriateness and acceptability of solution.
Indicate briefly why the proposed solution was deemed to be the most
appropriate. (Also refer to point 7 under social criteria).
3. Appropriate water resource choice & adequate water allocation (confirmed /

approved by DWA WRM re choice, water license - volume, assurance & quality).
Indicate and include all comments made by DWA water resource officials and
reference their approval of the proposed solution.
4. Compliance to water demand / water conservation objectives (acceptable water

losses and appropriate plans to reduce / control water demand). Is a WDM/ WC
Strategy / Plan in place?
Reference should also be made to WC/WDM requirements specified in phase 2A

of the study.
The following issues should be illustrated in the IRS:

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 The current key performance indicators on water use efficiency and water
losses.
 Indicate whether the current WC/WDM strategy and targets are
considered adequate.
 Indicate whether the proposed infrastructure is required irrespective of the
level of water use efficiency of existing consumers.
 Include a Council resolution adopting the WDM/WC strategy / business
plan as well as confirming the necessary budget for implementation
5. Optimal choice of bulk distribution networks (pipeline routes, pump stations and
bulk storage) considering full life-cycle cost (capital, financing, operating &
maintenance cost).
A short description should be given on the findings of the option analysis that was
required under phase 2A f the study.
6. Proof of best suited technology (pro’s and con’s per option)
Illustrate why the choice of various network components and technology is

considered appropriate. Particular attention should be given to illustrate that the
technology chosen in rural areas is appropriate.
3.5.6 Institutional criteria:
Some of the institutional criteria that need to be addressed as part of the IRS are as
follows:
1. Which institution will be the owner?
State which institution would be the owner of the infrastructure. Indicate if there
were various options and what informed the final decision.
2. Confidence in the capacity of the institution to implement
Indicate if there is adequate confidence in the capacity of the benefiting institution

to implement the proposed project. Any concerns or risks should also be
highlighted in this regard.
3. Agreements on infrastructure ownership (per scheme component)
If any of the proposed scheme components are to benefit more than one
municipality, or water services institution, a suitable agreement between the
various parties with regards to ownership must be concluded. A copy of such an
agreement must be attached as part of the IRS report.
4. Agreement on implementation responsibility (per scheme component).
An implementation agreement with DWA is required for the following

circumstances:

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 If there is more than one benefiting municipality

 If the implementing agent is not the benefiting municipality.
A detailed signed agreement is not necessary to be part of the IRS report but the
agreement in principle between all relevant stakeholders must be indicated and
referenced in the report.
5. Proof of implementation capacity (e.g. capital expenditure over last 3 years)
Indicate what portion of MIG allocation has been spent every year for the past 3
years. Proof of implementing capacity does not have to be limited to water
services related projects.
6. History on past implementation quality & performance (e.g. functionality audits)
The PSP must also indicate whether the projects listed under “point 5” above
have been implemented successfully. The implementing institution is also
required to state any projects that they have implemented unsuccessfully over
the last 5 years and state the circumstances.
7. Agreement on operating responsibilities (per scheme component)
If the institution who will own the proposed infrastructure is deemed to be weak,
an operation and Maintenance (O & M) agreement with an institution that has
adequate capacity must be developed. An O & M agreement could be with the
following type of institutions:
 District Municipality
 Water board
 Water Use Association
 Private institution
It is also necessary to ensure that the contractor implementing the various

scheme components is appointed to oversee the operations and maintenance of
the various scheme components for a minimum period of six months. For
sophisticated technologies such as desalination plants the maintenance period by
the contractor should be a minimum of twelve months.
8. Proof of adequate staff numbers and skills levels (per scheme component)
The proof of adequate staff should take into account the skills required for the
various project / scheme components and also the current workload and
responsibilities of the existing staff.
9. History on water services interruptions (annual interruptions in household-days)
The history on water services interruptions should be for number of days and
people affected over the last 2-3 years. Mitigating factors should be described if
the water services interruptions of the benefiting institution are deemed to be
high.

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10. Commitments for above by institutional leadership (e.g. municipal mayor and
council)
A council resolution of all benefiting municipalities must be included which clearly

indicates the following:
 They support the funding application;

 They agree with the proposed solutions and scheme components;
 They agree with the information contained in the IRS report;
 Should the RBIG funds be made available they agree to co-fund the
proposed project in accordance with the social /economic split
determined, and
 They agree to RBIG funding conditions.
11. Cooperation agreements between key stakeholders
In addition to the ownership and implementing agreements mentioned above; the

following additional agreements maybe required:
 agreements with key private consumers

 agreements with funding institutions
 agreements from other foreign funding Grants
 agreements from other South African Grants and programmes
If such agreements have been finalized a copy of the agreements should be

attached to the IRS report.
If such potential agreements have not been concluded they should still be
mentioned and a short description of the aim and purpose should be provided in
the IRS report.
12. Approval of institutional arrangements
If the benefiting institution will not be the owner or be responsible for the
operation of the infrastructure, approval of the institutional arrangements must be
obtained from both Cooperative Governance and Traditional Affairs (CoGTA) and
DWA. Correspondence indicating the approval from both departments must be
included in the IRS report.
13. Cost recovery system (including policy on free basic water and non-payment)
An assessment of the cost recovery system must be described. This should

include the following:
 Current status of metering of benefiting consumers

 Current status of billing system
 Current level of payment of benefiting consumers
 Current policy and practices on cost recovery
 Current policy and practices on credit control
14. Water conservation and demand performance by institution

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The following conservation and demand performance of the benefiting institutions

should be described in the IRS report:
 Indicate key KPI: NRW and level of payment and distribution losses in
accordance to various key performance indicators as indicated in
annexure A.
 Include the WC/WDM strategy and action plan adopted.
 Illustrate proposed WC/WDM projects that are directly related to the RBIG
project.
 Include past achievements with regards to WC/WDM.
 Include budget and targets on WC/WDM related activities
15. Responsibilities and accountability
The responsibilities and accountability of the various departments within the

benefiting institution and the implementing institutions with regards to the RBIG
proposed project should be identified and included in the IRS report. Details of
the persons or officials responsible should also be included. The following
categories of responsibilities should be identified:
 Project management during implementation;

 Procurement process during implementation;
 Financial management and accountability of project funds;
 Operation and maintenance responsibilities of proposed project;
 Legal agreements, and
 Planning of water services and the planning of the proposed project /
scheme.
3.5.7 Financial criteria
Some of the financial criteria that need to be addressed as part of the IRS are as follows:
1. Available funding (grant, loan & investment)
A description of the funding arrangements for the project must be provided. The
following aspects must be included:
 A revised and approved social / economic split of the cost of the project
 A proposed funding arrangement from RBIG over a number of years in
accordance to implementation schedule.
 The budget allocation by the benefiting institution over a number of years.
 The source of funds for the co-funding by the benefiting institution.
2. Funding conditions (repayment period, interest)
The funding conditions of the required co-funding from the benefiting institution
must be described. This should include the key conditions of any loans or
additional Grants.

29
3. Financial analysis of cost and income projections (cash flows)
A financial analysis should be provided to illustrate the cost projections. The

following aspects should be included in the financial analysis:
 Payment requirements to cover any loan for the Capex cost;

 Monthly operation and maintenance costs;
 Allowance for cost of water losses;
 Allowance for refurbishment of various components of the scheme;
 Allowance for the cost of free basic water services, and
 Provision for institutional overhead costs.
The financial analysis should adopt an accepted discount rate (8%

recommended)
4. Financial modelling of projected income taking into account affordability
Depending on the magnitude of the proposed scheme it may be necessary to

carry out a projected income modelling analysis. The projected income analysis
needs to take into account the following aspects:
 Affordability and projected sales that are part of the social criteria
described above.
 Allowance for the income received with regards to the equitable share.
 Potential income generated from the provision of sales taking into account
the expected growth in demand.
 Allowance for non-payment by consumers.
5. Proposed tariff adjustments to reconcile cost and projected income (by user
category)
(Direct reference should be made to the affordability analysis described in the

social criteria section.)
The modelling analysis developed in the previous bullet should be used to

determine proposed tariff increases in order to reconcile the cost and projected
income. It is also proposed that various tariff models are considered in order to
determine any opportunities for some return on investment.
6. Financial viability and expected return on investment over expected useful life.
Based on the affordability of consumers and the analysis carried out in bullets 4
and 5 the financial viability of the scheme should be analyzed assessed and
discussed. Should the financial viability of the scheme not be very good,
mitigating arguments should be provided on why the project should still go ahead.
7. Financial status, performance and creditworthiness of municipality and

implementing agents
The financial status, performance and creditworthiness of the municipality and

implementing agents should be identified and described. Should the outcome of

30
these assessments not be favourable, the following analysis and proposals

should be made:
 Motivation on why the project proposal should still be accepted

 Identify and quantify the risks of going ahead with the project proposal.
 Describe why no alternative institutional options are proposed.
 Describe what steps and conditions should be adopted to ensure the
success of the project and to negate any negative financial status.
3.5.8 Legal criteria:
Some of the legal criteria that need to be addressed as part of the IRS are as follows:
1. Has a water license with adequate allocation for all uses been approved?
If the water license has not been approved indicate the current progress, and the
acceptance of the relevant section of DWA in principle (see technical criteria).
2. Has an environmental authorization been granted for the construction of the

scheme (based on accepted environmental impact assessment and public
participation process)?
If approval of an EIA has not yet been obtained, indicate the current progress and
the anticipated completion. Also indicate if there are any risks for approving the
funding of the project before the EIA is completed. (It should be noted that the
EIA can become part of the implementation phase of the project, provided any
risks are mitigated).
3. Have all land and property rights issues been addressed (land acquisition &
servitudes)
If land rights have not been resolved, indicate the progress and if there are any
risks with initiating the implementation of the project before such land rights have
been finalized.
3.5.9 Sustainability criteria
The sustainability criteria have been addressed in other sections of the IRS study. In
order to complete the IRS checklist the following answers should be briefly answered
and referenced to the body of the report which these issues are dealt with in more detail.
1. Financial viability
2. Operating and management capacity, performance and commitment
3. Environmental and social acceptability and impact
3.5.10 Prioritization of projects
It is widely anticipated that the current need for bulk infrastructure throughout South
Africa will exceed the money that will be made available, from all levels of government. It
is therefore important that the PSP prioritize the projects identified in accordance to

31
various factors such as need, economic benefit, cost effectiveness, implementation

readiness and sustainability.
Annexure C describes the draft prioritization criteria and rating that can be used by
RBIG on a national level.
The PSP is required to provide the information to enable the rating of each project in
accordance to the prescribed criteria. It is also required that the PSP uses the criteria
and associated model to calculate the prioritization score for the proposed project.
4. PROJECT ADMINISTRATION
4.1 Study Duration
It is anticipated that the assignment will commence by _________________

____________________and will run for _______ months.
4.2 Name of project
The assignment shall be called: ____________________________________ Project.
4.3 Client
The Department of Water Affairs is the owner of the project. Mr/s ………… shall be the
project manager.
4.4 Project Budget
A budget for the project must be prepared based on the programme of work.
4.5 Project Management Committee (PMC)
The project management committee shall be formed soon after commencement of the
project, and will undertake general management of the study. They will be responsible for
effective and efficient formulation, execution and conclusion of the study.
The project leader, employed by the professional service provider, shall be responsible
for the day-to-day execution of the project including reporting of progress, organising
meetings and taking of minutes, and other technical and administrative tasks. The project
manager retains the authority to convene ad hoc meetings as the need may arise, for
which the PSP will still be responsible for taking of minutes. The frequency of meetings is
anticipated to be on every submission of progress and main reports but not less than
once a month.
The PMC (to be established) shall be responsible for:
 Assessing the scope of work and objectives of the project;

 Controlling the project budget;

32
 Monitoring project progress;

 Evaluating all reports, including the format and scope of reports as agreed at
inception stage;
 Keeping good records of decisions and the decision-making process followed;
 Giving recommendations on various aspects of the study;
 Ensuring that project objectives are attained, AND
 Setting up a stakeholders committee, if necessary, with full representation of all
major stakeholder groups.
4.6 Stakeholders Committee (SC)
The need for and composition of a stakeholders committee (DWA, relevant Water
Boards, District municipalities, other government departments and others), shall be
determined at the inception stage. All relevant DWA directorates will be consulted and
invited to the SC. The SC shall be a vehicle for effective public involvement to solicit the
views of stakeholders and provide feedback to the project management team.
5. TENDER PROPOSALS
The successful tender shall be selected on the basis of the two envelope system
consisting of technical and financial proposals. The financial proposals will only be
opened for the technical proposals scoring 65% and above. The financial proposal must
be broken down into the two phases of project implementation.
Proposals should be adequate but brief and to the point. It is envisaged that technical
proposals should be no longer than 30 pages (excluding CVs and appendices).
5.1 Previous Experience
The PSP should demonstrate the capacity to carry out all the requirements of the
assignment. Extensive experience on related studies is important to be able to
successfully carry out the study. Key skill areas include hydraulic engineering and
modelling, master plan development, water engineering, economic evaluation of
engineering projects, and environmental assessment.
5.2 Methodology
The proposed methodology must clearly show the bidder understands the work. The
methodology finally adopted will be set out in the approved inception report. The
proposed programme of work must be within the timeframe of 12 months. Key milestone
events and target dates must be given together with the estimated cost of each activity.
Complementing this must be a resource schedule for personnel to be used.
6. TENDER EVALUATION
6.1 `Enquiry Documents

33
All the necessary tender documents are issued together with this Terms of Reference. It
is important for bidders to acquaint themselves with the evaluation system before
preparing their proposals. Preparing a tender without this understanding may disqualify
the bid. Below is a list of all the documents which accompany these Terms of Reference.
 Cover Page: Head Office address (DW 106)

 Invitation to bid (SBD 1.1)
 Tax Clearance Form (SBD 2)
 Declaration of Interest Form (SBD 4)
 Preference Points Claim Form (SBD 6.2)
 Evaluation Criteria (appended)
 Credit Order Instruction (SBD 8)
6.2 Evaluation Criteria
Tender evaluation shall be based entirely on HDI preference, functionality and price as
set out in the appended Tender Evaluation Criteria. HDI stands for historically
disadvantaged individuals as fully defined in form SBD 6.2 mentioned above. Tenders
will be evaluated on a 90/10 basis - 10% for preference and 90% for functionality and
price.
The Client’s policy for appointment of PSPs requires a minimum participation rate of
15% by HDIs with the target rate of 35%. Tenders achieving HDI participation rates
equal to or greater than 35% will score maximum points. Those scoring less than 15%
will score the minimum score of 1 in terms of the value system (1 minimum and 5
maximum).
The Service Provider must demonstrate a commitment to share the Services with HDIs
and shall be required to report regularly on the value of work undertaken by HDIs. This
commitment must also be indicated through an involvement by the HDIs in the
management of any partnership, joint venture or consortium to be formed.
The Client is not bound to accept the lowest tender, and the decision of the adjudication
committee shall be final and binding.
7. PROJECT OUTPUT
All submitted documents, especially the final report, must be thoroughly edited for errors.
Work of a good enough standard to enable any competent person to read and follow
arguments without undue strain will be demanded.
Ten present (10%) of the contract price will be retained until all agreed outputs have
been satisfactorily delivered.
7.1 Scoping / Inception Report
The scoping / inception report must be submitted not later than six weeks after the study
commences. The scoping / inception report serves two roles, the first role is to document
the key need and motivation of the proposed need or project and the second role is to

34
refine and confirm the scope of work for the project detailing all aspects of the work to be
undertaken.
7.2 Progress Reports
A progress report must be submitted a week before each PMC meeting. The report
summarises progress achieved thus far and any challenges faced together with
recommendations on how to address the problems. A copy of the report should be
submitted to every member of the PMC.
Summaries of appropriate progress reports shall be presented to members of the SC

before their next meeting, should the committee be set up.
7.3 Three Main Report
Three main reports are required one for each of the further phases of the study. The three
main reports are as follows:
a) Technical feasibility report

b) Preliminary design
c) Implementation Ready Study report
The Main Reports should cover the full extent of each of the three further phases. A concise
Executive Summary should be provided at the beginning of each of the three reports. The
programme is to provide adequate time to allow for review and comments which should then
be incorporated in each of the reports. The three main reports are to be submitted in three
stages as follows:
a. The draft report
Two hard copies plus two electronic copies in PDF format on CDs must be
submitted.
b. The draft final report
Three hard copies plus three electronic copies in PDF format on CDs must be
submitted.
c. The final report
Seven hard copies including one unbound copy plus fifteen electronic copies in
PDF format on CDs must be submitted.
A summary of the final report presented in PowerPoint must be submitted to the National
Programme Manager and the Regional Head: Region
7.4 Skills Transfer
Opportunities for skills transfer will be identified during the assignment. It is the
Departmental policy for projects of this nature to provide for the transfer of skills from

35
PSPs to the Client’s junior staff. Typically we envisage a day of presentations to be

devoted to training for which provision is to be made in the proposal.
The training shall include an outline of the approach to problem solution, methodology
adopted, options investigated, skills required, and justification of chosen option. The
training content shall be approved by the project manager before presentation.
8. COMMUNICATION
Tenders should be deposited into the Client’s tender box at the Zwamadaka office, 187
Schoeman Street, Pretoria. All other communication about the project which shall be in
the English Language, including submission of reports, should be directed to the
following address;
Mr/s ……….: Project Manager:

Department of Water Affairs
Office …., Ndinaye Building
188 Schoeman Street
Private Bag X313
PRETORIA, 0001
Tel. ……………….
Cell: ………………
E-mail: …………@dwa.gov.za
DATE:

36
ANNEXURE D
TENDER EVALUATION CRITERIA (To be revised)
Below is a sample of the point scoring sheet that will be used to evaluate project proposals.
CRITERION MAXIMUM POINTS ACTUAL SCORE

1. Preference Criteria 10
HDI Ownership 5
Special goals in TOR 5
2. Functionality Criteria 72
2.1 Past Experience 15
Proven expertise 10
Management ability 3
Past performance 2
2.2 Methodology 25
Adherence to TOR 5
Understanding of task 7
Approach to task solving 8
Realistic time allocation 3
Completeness and clarity 2
2.3 Team Capability 25
Team leader 10
Key personnel 8
Support staff 3
Team composition 4
2.4 HDI Participation 7
Previously marginalised 4
Female participation 2
Disabled participation 1
Sub-Total 82
3. Price 18
(Lowest price/Relevant price)
x points
TOTAL 100

RWWTW ToR Feasibility and IRS v3

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WATER SERVICES

REGIONAL BULK INFRASTRUCTURE PROGRAMME

This document should be read in conjunction with the following Annexures:

Annexure A: Key considerations in the required approach and methodology

Annexure C: Draft prioritization criteria for projects

Annexure D: Tender evaluation criteria

ToR: Feasibility study and Implementation Ready study

BEE Black Economic Empowerment

ToR: Feasibility study and Implementation Ready study

Historically water resource planning is the responsibility of DWA together with

ToR: Feasibility study and Implementation Ready study

2.1 Purpose of the overall programme

a) Identify all regional bulk project requirements, through appropriate planning

b) Assist with the implementation of infrastructure projects and where necessary

c) Ensure that existing regional bulk infrastructure is properly operated and

d) Facilitate the development of institutional arrangements and capacity to ensure

2.2 Purpose of the Regional Bulk Infrastructure Grant (RBIG)

b) Macro and regional “bulk” infrastructure (schemes). Internal bulk infrastructure is

ToR: Feasibility study and Implementation Ready study

This fund aims to support Government’s development targets as well as socio-economic

2.3 Understanding “Regional Bulk”

Regional bulk Infrastructure is defined as:

The infrastructure required to connect the water resource, on a macro or sub-regional

ToR: Feasibility study and Implementation Ready study

 “Sub-regional” is defined as large regional bulk infrastructure serving numerous

 The infrastructure within a specific municipal area or scheme connecting the

2.5 Drivers of regional bulk infrastructure

a) Need to address access to basic services:

b) Need to support economic growth and development

d) Need to address flagship and priority projects under threat

e) Need to address asset management - or the lack thereof

f) Need to augment water resources due to scarcity and droughts.

ToR: Feasibility study and Implementation Ready study

The following deliverables are envisaged:

b) Technical feasibility report. This report describes the proposed technical

c) Preliminary design report: This is the preliminary design of the bulk

ToR: Feasibility study and Implementation Ready study

Table 1: Overview of different phases of study

Summary of proposed project By: DWA HO / RO

Demand analysis By: DWA HO / RO, WSA

Preliminary design By: DWA HO / RO, WSA

Economic criteria By: Stakeholder review committee

ToR: Feasibility study and Implementation Ready study

3.2 Scoping and inception phase

The objectives of this phase are as follows:

a) To review the motivation and need for the study.

The following aspects should be addressed in this regard:

b) Review strategic and planning issues

The following aspects should be addressed in this regard:

 In line with Water Services Development Plan and Integrated

c) Overview of area and demographics

An overview of the overall demographics of the area to be serviced by the

d) Describe the overall environment

Reference should be made to the overall environment including the history of

ToR: Feasibility study and Implementation Ready study

e) Overview of current demand and future demand projections

f) Review all available information and infrastructure

The following type of available information / reports should be identified and

 Identify and review all existing reports;

 Verify the key drivers and parameters for need;

g) Review the scope of the study

The following aspects should be addressed in this regard: