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Notice Board:

Electricity Shutdown 16 December from 08H00 - 12H00: Please note that repairs and maintenance will be carried out on the Aloes substation transformer equipment. Areas affected: Wells Estate, Markman Township, Bluewaters Bay, Amsterdamhoek, parts of Coega, Coega village, St Georges Strand and Dumbrody farms. All installations to be treated as live for the duration of the outage. Apologies for any inconvenience caused.

PROPOSED INCURRING OF LONG-TERM DEBT: FINANCING OF INFRASTRUCTURE EXPANSION


PROPOSED INCURRING OF LONG-TERM DEBT TO FINANCE INFRASTRUCTURE EXPANSION

INVITATION FOR PUBLIC COMMENT

 

DETAILED INFORMATION STATEMENT CONCERNING THE INTENTION OF THE NELSON MANDELA BAY METROPOLITAN MUNICIPALITY (NMBM) TO INCUR LONG-TERM DEBT IN ACCORDANCE WITH SECTION 46 OF THE LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT (MFMA), ACT NO 56 OF 2003, AS AMENDED

 

The Municipality hereby gives notice of its intention to incur Long-Term Debt in accordance with Section 46 of the Municipal Finance Management Act. Particulars of the proposed debt are:

 

The amount of the proposed long-term debt is R 750 602 100 (Seven hundred and fifty million six hundred and two thousand and one hundred rand ) for the 2018/19 to 2021/22 financial years ;

 

The purpose for which the long-term debt is to be incurred is to finance various income generating infrastructural or cost reduction capital projects. A summary of the projects for which funding is required is as follows:

 

Project Description

Amount

Water Projects

Pressure Management

R 20 000 000

Meter Replacement

R115 000 000

Pipe Replacement

R280 000 000

Sub-Total : Water Projects

R415 000 000

Wastewater Projects

Major Wastewater Projects

R150 000 000

Sub-Total Wastewater Projects

R150 000 000

Electricity and Energy Projects

Installation of 10 000 smart pre-payment meters

R32 828 100

Upgrade/convert 1500 commercial customers to remote metering

R10 854 000

Install 200 meters in LV substations

R 1 920 000

Plan and implement the construction of a HV transmission line into the City centre, in order to provide a 2nd hub to ensure security of supply

R50 000 000

Electricity losses project (Innovative electrification)

R90 000 000

Sub-Total: Electricity and Energy Projects

R185 602 100

TOTAL: LOAN FUNDED PROJECTS

R750 602 100

The expenditure on the listed projects is to be incurred as follows:

 

Services Description

Expenditure per financial year (R1000)

Total

2018/19

2019/20

2020/21

2021/22

Water Projects

415,000

75,000

125,000

135,000

80,000

Wastewater Projects

150,000

20,000

70,000

60,000

Electricity and Energy Projects

185,602

53,290

91,370

40,943

Total Expenditure

750,602

148,290

286,370

235,943

80,000

The benefits to the institution of the above projects can be summarised as follows: -

 

Non Revenue Water Intervention Projects

Water losses are part of what is referred to as Non-Revenue Water (NRW). These losses are termed material losses by the Auditor-General.

 

The Department of Water and Sanitation uses the International Water Association scorecard to report these losses. In terms of this scorecard, the NRW level for Nelson Mandela Bay is 37.5%, with physical water losses representing 29.4% of the water treated and distributed to the Metro.

 

The NMBM water network comprises in excess of 4 600km of potable water pipelines. Much of the network is old and aging in excess of 60 years in some cases. As a result, pipes frequently burst and leak, largely due to continuous water pressure changes within the water network. These leaks and bursts result in the physical water loss of 29.4% referred to above.

 

In order to address these losses, the municipality has introduced a plan that includes fifteen workstreams, in a multi-pronged approach. The workstreams are as follows:

Bulk water meters (to establish bulk water balances)

District metering programme (GMA and DMA meters);

Remote metering through advanced metering infrastructure;

Pressure management;

Non-revenue water monitoring and reporting;

Billing management and commercial data analysis;

Water tariff analysis

Leak repairs:

Repairs and maintenance;

Domestic meter audits;

Valve and hydrant audits;

Meter replacement programme;

Pipe replacement programme;

Reservoir rehabilitation;

Community awareness and education.

 

The above interventions form part of a R1.7 billion NRW 10-year business plan that aims to reduce physical water losses to below 15%. Of these interventions, the following three have been identified to be funded by the proposed R415 million in loan funding; they are the interventions that will most directly reduce water losses:

Pressure management;

Meter replacement; and

Pipe replacement.

 

Major Wastewater Pipelines

The NMBM has a social and legislative obligation to provide waterborne sanitation services to each and every formal household within the municipal boundary.

 

The Metro has in excess of 3 500km of sewer pipelines in place. These sewers convey effluent to the eight major wastewater treatment works for purification. However, the current bulk sewer network is overextended and running at full capacity.

 

In order to unlock new developments within the key major development nodes and generate an extended rates base for the NMBM, new major sewage pipelines need to be constructed. The key development nodes are defined in the Built Environment Performance Plan (BEPP).

 

Provision of sufficient funding is required to provide bulk sewer reticulation to support both social and economic development.

 

Electricity and Energy

 

Project Description

2018/19

2019/20

2020/21

Details

Install 10000 smart pre-payment meters (and eradicate all credit meters)

10 942 700

10 942 700

10 942 700

The current metering system is being bypassed and tampered with on a regular basis leading to revenue losses that are difficult to manage and recover. THE SMART READY prepayment meter will replace current tampered, bypassed and faulty meters. This will be ready to go live at any future point. Assuming an average of R300 per month per meter 10 000 meters correctly billed should recover additional revenue of R36 million per financial year.

Upgrade/convert 1500 commercial customers to remote metering

5 427 000

5 427 000

0

The previous loss project identified commercial businesses that were not fitted with the Munelek online silk system were easily tampered or misread by Budget and Treasury. As such the top 1500 users will be fitted with online system to prevent any further potential electricity revenue losses

Install 200 meters in LV substations

1 920 000

0

0

A network of Smart meters will be installed throughout the distribution system in order to identify the areas where the greater electricity losses occur. This will result to a fulltime online losses management system, in order to identify the exact substations, feeders and ultimately users. This programme will result in a sustainable basic loss reduction tactical management system.

Plan and implement the construction of an HV transmission line into the city centre in order to provide a second hub to ensure security of supply

5 000 000

45 000 000

Both 132 KV supplies from Eskom, one feeding through Grassridge and one through Dedisa, converge at the Chatty sub-station. This is an extremely high risk situation. If the substation suffers catastrophic failure, 90% of the Me tro faces the possibility of being without power for an extended period, potentially for as long as a month. It is essential that an additional substation/energy hub be constructed through which the supply from Eskom is alternatively fed.

Electricity losses project (innovative electrification)

30 000 000

30 000 000

30 000 000

This project is for Home Systems for informal dwellings. The project shall be for the supply and installation of 12 volt systems to informal dwellings and grid systems where the grid allows. This project will grant the residents in informal households with access to electricity and thereby reducing the Electricity losses and dangerous illegal connections. In approximately 95% of instances, connections can be made to the grid. In about 5% of cases, no grid is available in the immediate vicinity and photo-voltaic (solar) systems will be necessary. Through this intervention, approximately 6000 currently-illegal connectors will become paying customers

Total

53 289 700

91 369 700

40 942 700

The local community and other interested persons are hereby invited to submit, in writing, comments or representation concerning the incurring of the proposed Long-Term Debt to:

 

The Nelson Mandela Bay Metropolitan Municipality

c/o The Chief Financial Officer

Budget and Treasury

1st Floor Eric Tindale Building or

Govan Mbeki Avenue P.O. Box 834

Port Elizabeth Port Elizabeth

6001 6001

 

on or before 19 January 2018.

 

Any person who cannot write, but who wishes to submit comments or representations in terms of Clause 2 above may come to the twelfth floor, Fidelity House Building, Govan Mbeki Avenue, Port Elizabeth on any business da y between hours of 08h30 and 16h00 where Ms. N.Nini, a staff member of the NMBM, will assist any such person to transcribe his/her comments or representations.

 

This complete Information Statement and list of all capital projects to be funded by the long-term debt may be viewed:

 

On the official NMBM website at the address www.nelsonmandelabay.gov.za ;

 

On the notice boards at the following locations ;

 

The NMBM offices, Ground Floor, Brister House, Govan Mbeki Avenue Port Elizabeth, and

 

The following NMBM satellite offices:

 

Office

Address

Telephone

Eric Tindale Building

Ground Floor Eric Tindale Building, Govan Mbeki Avenue

506 1259

Korsten

Albert Street

453 2256/57

Cleary Park

Cleary Park Shopping Centre, Cnr Norman Middleton and Standford Rds

481 6207

Zwide

Johnson Road

464 1992

Motherwell

Motherwell Shopping Centre, Tyinira Street

462 0333

New Brighton

Ntsekisa Road

454 5923

Mtombolwazi

Addo Road

461 1198

Daleview

Cnr Hoog and Lang Streets, Despatch

994 1663

Khayamnandi

29 Chief Albert Luthuli Street Despatch

933 4950

Despatch Town Hall

1 Voortrekker Street Despatch

994 1628

Uitenhage Town Hall

Market Street, Uitenhage

994 1248

KwaNobuhle

Ponana Tini Road, KwaNobuhle

977 1150

Walmer

Heugh Rd 6th Avenue

(opposite Checkers shopping mall)

581 3378

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