infrastructure development

Funding of Capex Programme

Bloem Water’s CAPEX requirements are financed through borrowings determined by the asset base and financial position. Non-payment by Municipalities results in no or less revenue collection which negatively impacts maintenance and development of infrastructure. Future borrowings will be required to finance part of the CAPEX requirements within allowed borrowing limits. The Entity had approached the Presidential Infrastructure Investment Office (PIIO) to secure the funding for the infrastructure development. The PIIO had been of great assistance in terms of the project preparation for bankability and had resulted in one of the projects: Extension of Rustfontein Water Treatment Works capacity from 100Mℓ/d to 150Mℓ/d being Gazetted as part of the Strategic Infrastructure Projects (SIP19).

This culminated in the round table pitching of the two projects i.e.:  Extension of Rustfontein Water Treatment Works capacity from 100Mℓ/d to 150 Mℓ/d and the Mangaung Water Augmentation Project ( MWAP): Xhariep Pipeline to the potential investors with the objective to secure funding. The involvement of the Presidential Infrastructure Investment Office has greatly assisted the Entity working with the Infrastructure South Africa (ISA) in the project preparation to ensure the project bankability for potential investment opportunities in assisting with the required funding investment.

The Five Year Capex Programme 2021 -2025

The proposed CAPEX budget is subject to availability of the funds. The current CAPEX Programme in forecast will require investment of more than R1.5 Billion. The challenge is to secure the required funding in terms of the National Treasury borrowing ratios and limits amid the current financial status. This has resulted in major projects for expansion being deferred and only Refurbishment Projects implemented.

The Five-Year CAPEX Borrowing Programme included in the approved Business Plan 1 July 2021 to 30 June 2026:

Borrowing program and CAPEX

Revised Business Plan 2020/2021

Forecast 2021/2022

Forecast 2022/2023

Forecast 2023/2024

Forecast 2024/2025

Forecast 2025/2026

CAPEX included in forecast

CAPEX prior to be completed

 

0

0

0

0

0

CAPEX – Extensions, replacements & refurbishment with borrowed funds

0

100,000,000

100,000,000

150,000,000

200,000,000

100,000,000

CAPEX – Refurbishment and other replacements with surplus reserve funds/grant funding

50,000,000

20,000,000

0

30,000,000

20,000,000

40,000,000

CAPEX – Moveable assets/OPEX projects

47,328,125

40,400,000

44,000,000

49,000,000

55,000,000

55,000,000

Ministerial Directives

Design and Construct of steel pipeline 33.7km long, 1000mm diameter from Lieuwkop off take to Brandkop Reservoir

The priority project which is the 33.7km long section from Lieuwkop Junction to Brandkop Reservoir is mostly affected by pipe failures and had to be replaced with the new 1000mm, Steel pipeline to complement the supply to Bloemfontein.

Recently completed projects

Bloem Water from its Five (5) Year  Capex Programme, at the end of each financial year reports on completed projects that are either multiyear (spans more than a year ) or one-year. Projects which were completed in the 2021/22 financial year are detailed below. 

Upgrade of Bloem Water’s Instrumentation Network

The completion of the Upgrade of Bloem Water Instrumentation Network has positive spin off as the old analog equipment which was obsolete in the outstations had been successfully upgraded to the new digital equipment. This ensures the real time monitoring of the Reservoir levels, the pump stations and reduced the response time and avoid water losses.  

Design and Tender documentation for an additional pipeline to Dewetsdorp Reservoir

The augmentation of water supply into the town of Dewetsdorp within the Mangaung Metropolitan Municipality to ensure the peak water demand challenges is addressed specifically with regards to the high lying areas.

New pipeline from Rustfontein to Botshabelo

The project has contributed to an increase in water supply in the Mangaung Metropolitan areas in line with the bucket eradication programme in Botshabelo and Thaba Nchu. 

Caledon River Region: Equipping of the Workshop for Pipeline Reaction Team

The workshop assists with the manufacturing of the required pipeline components for the immediate repair and maintenance of the aged pipeline and related infrastructure within a short turn around period.

 Welbedacht: Automation of Novo Pump Station

The increased reliability of the raw water supply to ensure the security of supply in the Mangaung Metropolitan and Mantsopa Local Municipality from the Knellpoort Storage Dam into the  Rustfontein Dam. The raw water is further transferred to the Maselspoort Dam operated by the Metro.