Question NW86 to the Minister of Water and Sanitation
06 March 2024 - NW86
Moore, Mr S J to ask the Minister of Water and Sanitation
While delayed infrastructure projects have seen costs increasing, what are the reasons that repair and maintenance costs by the trading entity only amount to 2,13% of total infrastructure assets balance, as opposed to the National Treasury’s prescribed spend of 8%?
Reply:
The majority of the Department of Water and Sanitation (DWS) infrastructure are large civil structures such as dams, which needs much less than the 8% as mooted by National Treasury.
DWS norms for maintenance are as follows:
- 0.5% of the pipeline capital cost
- 0.25% of the capital cost of civil structures, including the civil portion of pump stations
- 4% of the electrical and mechanical installation cost of a pump station
A rough weighted estimate is that approximately 2% of the replacement value of the DWS infrastructure value should be spent on maintenance annually.
The repair and maintenance costs by the Water Trading Entity amounted to 2.13% of total infrastructure assets balance for the 2022/2023 financial year. It should be noted that the DWS is addressing the Auditor General’s findings which identified some of the drawbacks in relation to asset management:
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AG findings |
DWS actions to mitigate |
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There is no maintenance policy in place to guide the maintenance of infrastructure assets |
The DWS has a maintenance policy which was developed and approved in 2008. |
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Asset management plan is outdated and was last updated in 2018 |
DWS is in the process of preparing a tender to appoint professional service providers to assist with the following:
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Maintenance plan is not complete and does not make reference to the asset number in the infrastructure asset register. In addition, it was not in line with Government Immovable Asset Management Act (GIAMA). |
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Poor performance of contractors not identified in a timely manner. |
Improved internal capacity will enable better oversight and monitoring of the performance of internal and external contractors involved in operation and maintenance. |
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Poor oversight and monitoring by the department |
Improved internal capacity will enable better oversight and monitoring of the performance of internal and external contractors involved in operation and maintenance. |
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Poor project management |
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Delays in the procurement process both for appointing contractors and for procurement of the some materials |
DWS has developed a new infrastructure procurement policy and strategy to improve the situation. |
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