OUR MANDATE

Our Directives, Mandates, Projects & Legislative Framework

OUR LEGISLATIVE FRAMEWORK

The legislative framework, which TCTA operates within the water sector is set out in Figure 1

LegislativeFramework.jpg

Figure 1: Legislative Framework

Abstract Water

The Trans-Caledon Tunnel Authority (TCTA) was established in 1986, by Notice 2631 in Government Gazette No. 10545, dated 12 December 1986, to finance and build the Delivery Tunnel North of the Lesotho Highlands Water Project (LHWP). In 1994, a directive was received to fulfil the financial obligations of the Government of South Africa, in terms of the Treaty on the Lesotho Highlands Water Project, on the water transfer component in Lesotho. 

On 24 March 2000, the Notice of Establishment was amended by Notice 277 in Government Gazette No. 21017, to include the 1994 directive and to allow for the Minister, in terms of Section 24(d) of the notice, to issue directives to TCTA in terms of Section 103(2) of the National Water Act (Act No. 36 of 1998).

In accordance with Section 3 of the Notice of Establishment, TCTA is set up to:

  • implement, operate and maintain that part of Phase 1 of the LHWP, situated in the Republic of South Africa, in accordance with the provisions of the Treaty; and

  • perform the functions set out in Clauses 24(a) and (b) and any other additional functions which the Authority may be required to perform in terms of a directive by the Minister under Section 103(2) of the National Water Act.

In doing so, the Minister must be satisfied that such directives will not prejudice the capacity of TCTA to perform the functions for which it was established. The National Water Act allows the Minister to direct a body, established under Section 102 of the Act, to perform additional functions which may include, but are not limited to, providing water management institutions, both within the borders and external to the Republic, with:

  • Management services (project implementation);

  • financial services (structuring and raising project finance, debt management and advising on tariff setting)

  • training; and

  • other support services.

The above provision makes it clear that TCTA cannot undertake any function outside of its Notice of Establishment without the permission of the Minister unlike the Water Boards, which are given such opportunity in terms of Section 30 of the Water Services Act (Act No. 108 of 1997).

The National Water Act requires that TCTA manages its different functions separately. This is further emphasised in the Notice of Establishment for TCTA, which states in Section 20(1) that the Authority must manage its Treaty functions separately from its non-Treaty functions and account for them separately, as required by Section 105(1) of the National Water Act. The Treaty functions in terms of Section 8A of Protocol 6 of the Treaty are limited to the operations and maintenance of the Delivery Tunnel North within South Africa.

Section 20(2) furthermore states that the Authority’s Treaty responsibilities are not applicable to its non-Treaty functions.

The bulk of TCTA’s work now comprises non-Treaty functions. TCTA accounts for and manages these functions separately from the Treaty functions and from each other, in terms of Section 103(2) of the National Water Act. The impact of these provisions on TCTA is that, regarding the LHWP mandate and each directive, there is a separate:

  • borrowing authority from the Minister of Human Settlements, Water and Sanitation/National Treasury, government guarantees and funding arrangements,

  • general ledger; and

  • where money is borrowed to finance a project, separate income/implementation agreements with DWS, which are back-to-back with the water supply agreements between DWS and the beneficiary water users, where applicable.

The income/implementation agreements with DWS determine inter alia, the cost recovery mechanism for each project. To date, the following three principles have been applied:

  • a structure per project is applied to ensure break-even sufficiency of revenue to recover project costs over the debt repayment period. Key principles applied in determining an appropriate tariff structure for a project include end-user affordability, predictability and sustainability;

  • the revenue is only used to recover costs related to each project, namely capital costs, funding costs and administration costs; and

  • management of liquidity and funding risks.

Since its original mandate (the Notice of Establishment), TCTA has received a further 21 directives. The mandate and directives, as of 31 March 2019, are shown in Table 1.

OUR Mandates and Directives

The Mandates | The Directives - Type of work = *

01

Lesotho Highlands Water Project (LHWP)

Commencement Date: 12 December 1986

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance* | Advisory | Payment agency

Project Phase: ?

The Lesotho Highlands Water Project was instituted as a bi-national project spanning the borders of South Africa and Lesotho in accordance with a treaty signed in 1986. This almost miraculous engineering feat diverts water from the Senqu River System in Lesotho to South Africa’s economic hub, the water-stressed Gauteng region.

02

Vaal River System (VRS)

Commencement Date: 3 August 1994 (and incorporated into amended Notice of Establishment, 24 March 2000)

Type of work: Planning | Funding* | Implementation | Operation and Maintenance | Advisory | Payment agency*

Project Phase: ?

To fulfil all the Republic’s financial obligations in terms of or resulting from the Treaty (non-Treaty functions) on the Lesotho Highlands Water Project and any other obligations on the Vaal River System (e.g. Acid Mine Drainage Project).

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03

Advisory Services to Umgeni Water (UW)

Commencement Date: 04 July 2001

Type Of work: Planning | Funding | Implementation | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Advisory Services to Umgeni Water (UW).

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04

Advisory Services to Water Management Institutions, Water Boards and DWA.

Commencement Date: 17 May 2004

Type Of work: Planning | Funding | Implementation | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Advisory Services to Water Management Institutions, Water Boards and DWA.

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05

Berg Water Project (BWP)

Commencement Date: 06 May 2002

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Advisory Services to Umgeni Water (UW).

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06

Vaal River Eastern Subsystem Project (VRESAP)

Commencement Date: 06 October 2004

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance* | Advisory | Payment agency

Project Phase: ?

Vaal River Eastern Subsystem Project (VRESAP)

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07

Mooi–Mgeni Transfer Scheme – Phase 2 (MMTS-2)

Commencement Date: 29 November 2007

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance* | Advisory | Payment agency

Project Phase: ?

Mooi–Mgeni Transfer Scheme – Phase 2 (MMTS-2).

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08

Olifants River Water Resources Development Project – Phase 2C (ORWRDP-2C)

Commencement Date: 17 June 2008 (directive revised 12 March 2012) 

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance* | Advisory | Payment agency

Project Phase: Phase 2C

Olifants River Water Resources Development Project – Phase 2C (ORWRDP-2C).

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09

Komati Water Scheme Augmentation Project (KWSAP)

Commencement Date: 29 September 2008

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Komati Water Scheme Augmentation Project (KWSAP).

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10

Mofolo–Crocodile Water Augmentation Project

Commencement Date: 19 May 2010

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: Phase 1 and Phase 2A

Mofolo–Crocodile Water Augmentation Project – Phase 1 and Phase 2A (MCWAP-1; MCWAP-2A).

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11

Metsi Bophelo Borehole Project

Commencement Date: 2 March 2011

Type Of work: Planning | Funding | Implementation* | Operation and Maintenance | Advisory | Payment agency

Project Phase: ?

Metsi Bophelo Borehole Project

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12

Acid Mine Drainage – Short-term Intervention (AMD-STI)

Commencement Date: 06 April 2011

Type Of work: Planning | Funding | Implementation* | Operation and Maintenance* | Advisory* | Payment agency

Project Phase: ?

Acid Mine Drainage – Short-term Intervention (AMD-STI).

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13

Mooi–Mgeni Transfer Scheme

Commencement Date: 29 November 2011

Type Of work: Planning | Funding | Implementation* | Operation and Maintenance | Advisory | Payment agency

Project Phase: Phase 1

Phase 1 of the Mooi–Mgeni Transfer Scheme.

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14

Strategic Integrated Project 3 (SIP-3)

Commencement Date: 10 November 2012

Type Of work: Planning | Funding | Implementation | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Strategic Integrated Project 3 (SIP-3).

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15

uMzimvubu Water Project (MWP)

Commencement Date: 10 February 2014 (latest revision revised 19 January 2019)

Type Of work: Planning* | Funding* | Implementation* | Operation and Maintenance | Advisory | Payment agency

Project Phase: ?

uMzimvubu Water Project (MWP).

16

Strategic Integrated Project 18 (SIP-18)

Commencement Date: 26 February 2014

Type Of work: Planning | Funding | Implementation | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Strategic Integrated Project 18 (SIP-18)

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17

the construction of a potable water pipeline for Umgeni Water

Commencement Date: 20 March 2014

Type Of work: Planning | Funding | Implementation* | Operation and Maintenance | Advisory | Payment agency

Project Phase: ?

Amendment to MMTS-2 directive to include the construction of a potable water pipeline for Umgeni Water

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18

Olifants River Water Resources Development Project – Phase 2B (ORWRDP-2B).

Commencement Date: 25 February 2015 (directive revised 22 October 2015)

Type Of work: Planning* | Funding* | Implementation* | Operation and Maintenance | Advisory | Payment agency

Project Phase: Phase 2B

Olifants River Water Resources Development Project – Phase 2B (ORWRDP-2B).

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19

Water Off-take for Kriel Town (KRIEL)

Commencement Date: 20 June 2015

Type Of work: Planning | Funding | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Water Off-take for Kriel Town (KRIEL).

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20

Acid Mine Drainage – Long-term Solution (AMD-LTS)

Commencement Date: 19 May 2016

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: Long-term Solution

Acid Mine Drainage – Long-term Solution (AMD-LTS).

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21

Berg River–Voëlvlei Augmentation Scheme (BRVAS)

Commencement Date: 18 May 2017

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Berg River–Voëlvlei Augmentation Scheme (BRVAS).

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22

uMkhomazi Water project (MWP)

Commencement Date: 22 February 2019

Type Of work: Planning | Funding* | Implementation* | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

uMkhomazi Water project (MWP).

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23

Programme Management Services to DWS in relation to Water Infrastructure Projects

Commencement Date: 01 April 2019

Type Of work: Planning | Funding | Implementation | Operation and Maintenance | Advisory* | Payment agency

Project Phase: ?

Programme Management Services to DWS in relation to Water Infrastructure Projects

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