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Mokolo-Crocodile Water Augmentation Project Phase 2A, South Africa – update

Image of water flowing from a pipe

20th September 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Mokolo-Crocodile Water Augmentation Project Phase 2A (MCWAP-2A).

Location
Limpopo, South Africa.

Project Owner/s
Trans-Caledon Tunnel Authority (TCTA), an entity of the Department of Water and Sanitation (DWS).

Project Description
Phase 1 of the MCWAP (MCWAP-1) comprises a scheme to convey water 43 km from the Mokolo dam to the Lephalale local municipality and surrounding areas, Eskom’s Matimba and Medupi power stations, and Exxaro’s Grootegeluk mine. 

The MCWAP-1 currently delivers about 40-million cubic metres a year to Eskom, including three of the six Medupi power plant flue-gas desulphurisation (FGD) units, Exxaro, farmers in the Lephalale area and the Lephalale local municipality.

The expansion of the project, through MCWAP-2A, will comprise a water transfer scheme to augment the existing water supply in the project area by 75-million cubic metres a year from the Crocodile river, about 160 km away. 

The project includes the construction of the Vlieëpoort abstraction works on the Crocodile river (West), low- and high-lift pumping stations, desilting works, balancing storage facilities, a 160 km bulk raw water pipeline to the Steenbokpan and Lephalale areas, a river abstraction and flow monitoring system, as well as a management system, on the part of the Crocodile river downstream of the Hartbeespoort dam.

Potential Job Creation
It is estimated that the project will employ at least 1 000 people during its implementation, with 50% of the engineers on the project expected to be from a previously disadvantaged background.

It will also offer learnerships and bursaries to mostly previously disadvantaged people from the local community.

Capital Expenditure
The TCTA secured a total funding portfolio of R22.25-billion for the implementation of the MCWAP-2A in June 2024. The financing was obtained from seven different lenders comprising five local commercial banks – Absa, FirstRand Bank (acting through its Rand Merchant Bank division), Investec Bank, Nedbank and Standard Bank of South Africa –and two local development finance institutions – Development Bank of Southern Africa and the Industrial Development Bank.

The project has a blended funding portfolio, encompassing an allocation from the fiscus for the component set aside for social needs, a commitment from commercial users repaying for individual offtakes and government standing in for future offtakers to allow for future economic development, which is to be repaid by such future users to the fiscus, the TCTA reported in June 2024.

Planned Start/End Date
MCWAP-1 was commissioned in June 2015.

MCWAP-2A is targeted for completion by August 2030.

Latest Developments
The appointment of the main construction contractor is to be finalised by December 2024.

Key Contracts, Suppliers and Consultants
GBN Joint-Venture, comprising Gibb, Bigen Africa Services and Nyeleti Consulting (professional service provider responsible for the design and construction supervision of the project).

Contact Details for Project Information
TCTA, tel +27 12 683 1200 or email info@tcta.co.za.

Edited by Creamer Media Reporter

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