SWAZILAND WATER SERVICES CORPORATION

MONTHLY PROGRESS REPORT FOR CAPITAL PROJECTS PROJECT ENGINEER Ranganai Zizhou

Swaziland Water Services Corporation Headquarters, Emftonjeni Building, Cnr MR103 and Cultural Village Drive Ezulwini August

EXECUTIVE REPORT PROJECT NAME Physical Progress Ngwane Sewerage Reticulation Nhlangano CTA 0 to Mathendele 44 0 Awaiting delivery of materials. Park 30 Financial 35.5 Time 45.5 Refer to annexure 1 and 1 (1) VARIABLE (as percentage) Comments

Pipeline Logoba Reservoir 99 120 314 Contractor to finish up minor ancillary pipe work Refer to annexure 3 Simunye Water 30 Treatment Plant Turbidity Problem Lomahasha Water Design Supply 100 100 100 0 50 Study report submitted awaiting on way forward. Requested to give extra quote for the high rate plate settler. Design complete Awaiting go ahead with tender stage and construction 14 160 Land issues almost finalized (SNHB, Rishka Investments, Mnisi clan) Dutch reformed church to give feed back Design report forwarded awaiting approval Fiscal problems hampering progress. Advance payment reguarantee not yet received

Hawane Woodlands Pipeline

to 0

Matsapha Pump 0 station Upgrade Nhlangano Waste Water 0

50

2.5

Treatment Plant.

from Bicon Land issues not yet closed. Matsapha Depot 75 39 100 Matsapha Town Board approval awaited (anticipated on the 16th of September 2012) Makhewu and Mhlumeni areas identified. Design report for Makhewu submitted and preliminary design report for Mhlumeni submitted Awaiting directorate instruction on way forward. National wastewater management Plan Swaziland Simunye Balancing Reservoir 35 33 50 Procurement delays continue to delay the project for 10 0 50 Data gathering compilation at advanced stage, TSD brief received as guiding document.

One growth area for water. portable

Refer to Annexure 4

Table of Contents
EXECUTIVE REPORT .......................................................................................................... 2 1.0 INTRODUCTION ............................................................................................................. 7 2 NGWANE PARK SEWERAGE RETICULATION ............................................................... 9 2.1 INTRODUCTION ..................................................................................................... 9 2.2 LOCALITY .............................................................................................................. 9 2.3 PROJECT TIME PROGRESS ..................................................................................... 9 2.4 PROJECT FINANCIAL PROGRESS......................................................................... 10 2.5 PROJECT QUALITY MANAGEMENT .................................................................... 10 2.6 PROJECT RISK MANAGEMENT ............................................................................ 10 2.7 PROJECT COMMUNICATION MANAGEMENT ..................................................... 10 2.8 CONCLUSIONS AND GENERAL............................................................................ 10 3 SIMUNYE BALANCING RESERVOIR ............................................................................. 11 3.1 INTRODUCTION ................................................................................................... 11 3.2 LOCALITY ............................................................................................................ 11 3.3 PROJECT TIME PROGRESS ................................................................................... 11 3.4 PROJECT FINANCIAL PROGRESS......................................................................... 11 3.5 PROJECT QUALITY MANAGEMENT .................................................................... 11 3.6 PROJECT RISK MANAGEMENT ............................................................................ 11 3.7 PROJECT COMMUNICATION MANAGEMENT ..................................................... 12 3.8 CONCLUSIONS AND GENERAL............................................................................ 12 4.0 NHLANGANO CTA TO MATHENDELE PIPELINE ...................................................... 13 4.1 INTRODUCTION AND INTRODUCTION ............................................................... 13 4.2 LOCALITY ............................................................................................................ 13 4.3 PROJECT TIME PROGRESS ................................................................................... 13 4.4 PROJECT FINANCIAL PROGRESS......................................................................... 13 4.5 PROJECT QUALITY MANAGEMENT .................................................................... 14 4.6 PROJECT RISK MANAGEMENT ............................................................................ 14 4.7 PROJECT COMMUNICATION MANAGEMENT ..................................................... 14 4.8 CONCLUSIONS AND GENERAL............................................................................ 14 5.0 LOGOBA RESERVOIR .................................................................................................. 15 5.1 INTRODUCTION ................................................................................................... 15 5.2 PROJECT TIME PROGRESS ................................................................................... 15 5.3 PROJECT FINANCIAL PROGRESS......................................................................... 15 5.4 PROJECT QUALITY MANAGEMENT .................................................................... 15 5.5 PROJECT RISK MANAGEMENT ............................................................................ 15

5.6 PROJECT COMMUNICATION MANAGEMENT ..................................................... 15 5.7 CONCLUSIONS AND GENERAL............................................................................ 15 6.0 SIMUNYE WATER TREATMENT PLANT TURBIDITY PROBLEM ............................ 16 7.0 LOMAHASHA WATER SUPPLY ................................................................................... 17 8.0 MATSAPHA PUMP STATION UPGRADE ..................................................................... 18 9.0 NHLANGANO WASTE WATER TREATMENT PLANT................................................ 19 10.0 MATSAPHA DEPOT .................................................................................................... 20 10.1 INTRODUCTION .................................................................................................. 20 10.2 LOCALITY ........................................................................................................... 20 10.3 PROJECT TIME PROGRESS ................................................................................. 20 10.4 PROJECT FINANCIAL PROGRESS ....................................................................... 20 10.5 PROJECT QUALITY MANAGEMENT................................................................... 21 10.6 PROJECT RISK MANAGEMENT .......................................................................... 21 10.7 PROJECT COMMUNICATION MANAGEMENT ................................................... 21 10.8 CONCLUSIONS AND GENERAL .......................................................................... 21 11.0 ONE GROWTH AREA FOR PORTABLE WATER....................................................... 22 11.1 INTRODUCTION .................................................................................................. 22 11.2 LOCALITY ........................................................................................................... 22 11.3 PROJECT TIME PROGRESS ................................................................................. 22 11.4 PROJECT FINANCIAL PROGRESS ....................................................................... 22 11.5 PROJECT QUALITY MANAGEMENT................................................................... 22 11.6 PROJECT RISK MANAGEMENT .......................................................................... 22 11.7 PROJECT COMMUNICATION MANAGEMENT ................................................... 22 11.8 CONCLUSIONS AND GENERAL .......................................................................... 22 12.0 HAWANE TO WOODLANDS GRAVITY MAINS......................................................... 23 12.1 DESCRIPTION ..................................................................................................... 23 12.2.1 PROGRESS OF THE PROJECT ........................................................................... 23 12.3 FINANCIAL STATUS ........................................................................................... 23 12.4 STATUS OF MATERIALS..................................................................................... 23 12.5 PERSONNEL MATTERS....................................................................................... 24 12.6 OTHER ITEMS OF IMPORTANCE ........................................................................ 24 12.7CONTRACT DETAILS ........................................................................................... 24 12.8 PROGRAM & PROGRESS..................................................................................... 25 12.9 DELAYS AND CLAIMS ........................................................................................ 25 12.10 MATERIALS ...................................................................................................... 26 12.11 UTILIZATION OF MATERIALS .......................................................................... 26 12.12 QUALITY ASSURANCE ..................................................................................... 26

1.0 INTRODUCTION This monthly progress report reports the progress as at 31August 2012 for the projects listed in Table 1.1 below. The list of projects reported on are given on the Table 1.1 below together with salient details of the project Table 1.1: List of Reported Projects Project Name Ngwane Sewerage Reticulation Description of Works Park The Design, Construction and Commissioning of a Sewer mains, trunk mains, interceptors and outfall sewers to the Ngwane Park Pump station in Ngwane Park (Central Region). A budget of E 1,500,000.00 has been set aside out of the SWSC Capital Expenditure Programme CAPEX) for the works. (the project will be implemented in-house) Nhlangano CTA to The Design, Construction and Commissioning of a 250mm trunk Mathendele Pipeline line off taking from the Nkawini-Nhlangano 400mm ND 4.5mm MS pipeline. The 250mm will off take at the CTA compound, span a distance of up to 2.5kilometres and terminate at the Mathendele Hill in Nhlangano (Southwest). A budget of E 1,000,000.00 has been set aside out of the SWSC Capital Expenditure Programme CAPEX) for the works. (the project will be implemented in-house) Logoba Reservoir The Design, Construction and Commissioning of a 3.2 Megalitre Reinforced Concrete Reservoir. Contractor, Roots Construction (PVT) Ltd was awarded to construct the reservoir in March 2010 for a Contract Amount of E 3,554,523.50. Project is 20 months behind schedule. Variations to date amount to E 974,485.43, liquidated damages amount to E287, 916.00. Simunye Water The development of a solution to enable the Simunye Potable

Treatment

Plant Water Treatment Plant to treat raw water with a turbidity of over 120NTU.

Turbidity Problem Lomahasha Supply Hawane Woodlands Pipeline

Water The Design of the Lomahasha component of the Siteki Lomahasha Water Supply. to The Construction of 500mm diameter raw water gravity main from the Hawane Dam to the Woodlands Water Treatment Plant. the Contract was awarded to SII (PTY) Ltd and the Contract commencement date was the 12th of May 2011 with a construction period of 10 months.

Matsapha station Upgrade

Pump The upgrading of the Matsapha Reservoir to Logoba booster Pump station. In an effort to minimize cost and hence to achieve the deliverable project may be implemented in house or by tender letting to as a design and built contract. The traditional Employer design and Contractor construct may lead to a cost overrun over and above the allocated budget.

Nhlangano Water Plant.

Waste The Design, Construction and Commission of the Nhlangano Treatment Waste water Treatment Plant.

Matsapha Depot

The modification of Lot 237 Matsapha to House the Matsapha Depot and the Central Regional Managers Offices.

One growth area for The identification and evaluation of one potable water area and the portable water. National subsequent design and development of design submissions.

wastewater National Wastewater Management Plan for Swaziland.

management Plan for Swaziland

2 NGWANE PARK SEWERAGE RETICULATION 2.1 Introduction The objective of the Ngwane park sewerage reticulation is to provide the conveyance of sewerage via a water borne system to the mainly the residential and commercial activities commercial and to a lesser extend the industrial activities of the Ngwane park area of Swaziland. Due to the expanse area of Ngwane Park and the lack of sufficient financial resources the project is being executed on a phased approach with funding from the annual Swaziland water services corporation CAPEX programme. For the 2012 to 2013 financial year the project has been allocated an amount of E 1 500 000.00. Subsequently due to the limited financial resources and the pressing need to have the sewerage reticulation complete thus mitigation ground water pollution for the whole of Ngwane Park the project is being implemented in-house. 2.2 Locality The project is situated in the Manzini region of Swaziland and is at an average altitude of 534m AMSL at a general GPS position of -37005.9551;2934459.5570. The Manzini region of Swaziland falls in the middle veldt of Swaziland and the predominant rock type and thus the soils are derived from the Ngwane Park Gneiss. The predominant weathering being chemical the Ngwane Gneiss requires moderate excavation effort (SANS 1200D, 1988). For more information on locality refer to the Surveyor Generals 1:10 000 map series. This Progress report reports on the progress to date as outlined below 2.3 Project Time Progress In consideration of the allocated budget it is anticipated that the construction of the mains, sub mains and trunk mains should be to at most 160 plots within a period of five months thereby limiting the Preliminary and general costs to at most 10% of the budgeted amounts. However in pursuit of value addition the project may further extent to the construction and commissioning of the laterals ( the house connections) , the house connections will not be left solely to the SWSC Operations Division due to the time it will take to connect the plots to the reticulation if ever. The Project start date being the first of May 2012 the percentage time expired is 45.5% for all the works excluding the laterals (house connections).

2.4 Project Financial Progress To date E 451 254.00 has been expended towards the purchase of materials (E 316 254.00) and salaries (E 140 000.00) and overheads in the project. The percentage financial progress is at 35 %. The Actual Value of work done is therefore less that the Expected Value of work done and this may result in a cost overrun if the objective is to do the same scope of works. Resources have to be increased and the rate of progress of work has to be increased in order to improve the cost performance index. 2.5 Project Quality Management The specifications of the project are the SANS standardized specification. Critical test are with respect to the compaction of the bedding and backfill material to the designated compaction effort, levels or fall of the pipeline, and the water tightness of the sewers and the sewer appurtenances. Adequate compaction has been achieved by use of a plate compactor and the fall or levels through the use of SWSC internal survey department. 2.6 Project Risk Management As a result of a recent fatal incident a project environmental health and safety plan is in place and is being actively used to mitigate and prevent any Environmental, Health and Safety incidences. The Plan is biased towards the South African legislation which does not only match but exceeds the Swaziland legislation interms on the Environmental Health and safety requirements. Section of 14 (supra) of the Environmental Health and safety plan addresses the risk monitoring and management aspects. 2.7 Project Communication Management A project organogram is available and is incorporated in the environmental health and safety plan. 2.8 Conclusions and General More effort needs to be put address the schedule variances and cost variances in order to restore the project on track. Refer to Annexure 1.1 for the programme of works and the cash flow. Annexure 1.2 gives the determination of the Physical, financial and resources reporting and is supplementary to this report.

3 SIMUNYE BALANCING RESERVOIR 3.1 Introduction The construction of a 350cubic meter reinforced concrete reservoir to act as a balancing tank for the Simunye Treatment Plant. 3.2 Locality The project is situated in the Lubombo region of Swaziland and is at an average altitude of 190m AMSL. This Progress report reports on the progress to date as outlined below 3.3 Project Time Progress The Percentage time expired is 50%. And the works are at reinforcement fixing stage for the slab. Physical progress is at 44%. 3.4 Project Financial Progress To date E 300 000 has been expended towards the purchase of materials and salaries and overheads in the project. The percentage financial progress is at 36 %. The Actual Value of work done is therefore less that the Expected Value of work done and this may result in a cost overrun if the objective is to do the same scope of works. Resources have to be increased and the rate of progress of work has to be increased in order to improve the cost performance index. 3.5 Project Quality Management The specifications of the project are the SANS standardized specification. Critical test are with respect to the compaction of the bedding and backfill material to the designated compaction effort, levels or fall of the pipe, and the water tightness of the reservoir. Adequate compaction has been achieved by use of a plate compactor and the fall or levels through the use of SWSC internal survey department. 3.6 Project Risk Management A project environmental health and safety plan is in place and is being actively used to mitigate and prevent any Environmental, Health and Safety incidences. The Plan is biased

towards the South African legislation which does not only match but exceeds the Swaziland legislation interms on the Environmental Health and safety requirements. Section of 14 (supra) of the Environmental Health and safety plan addresses the risk monitoring and management aspects. 3.7 Project Communication Management A project organogram is available and is incorporated in the environmental health and safety plan. 3.8 Conclusions and General More effort needs to be put address the schedule variances and cost variances in order to restore the project on track. Refer to Annexure 1.1 for the programme of works and the cash flow. Annexure 1.2 gives the determination of the Physical, financial and resources reporting and is supplementary to this report.

4.0 NHLANGANO CTA TO MATHENDELE PIPELINE 4.1 Introduction and Introduction The Design, Construction and Commissioning of a 250mm trunk line off taking form the Nkawini-Nhlangano 400mm ND 4.5mm MS pipeline. The 250mm will off take at the CTA compound, span a distance of up to 2.5kilometres and terminate at the Mathendele Hill in Nhlangano (Southwest). A budget of E 1,000,000.00 has been set aside out of the SWSC Capital Expenditure Programme CAPEX) for the works. (The project will be implemented in-house) 4.2 Locality The pipeline will take off from the 400mm diameter gravity line feeding Nhlangano from the Nkawini Water Treatment Plant, a connection point will be established near the CTA compound. The new pipe will tee off and thereafter it will span a distance of about 329 meters to join up with a previously constructed but non commissioned uPVC class 12 pipelines. This uncommissioned pipeline was constructed circa 2005. The pipeline will terminate at the Old Reservoir at Mathendele hill from which another pipeline will be designed and constructed under the Government sponsored Bicon Consulting Engineers Nhlangano Waste Water Treatment Plant Contract. This pipeline under Bicon Consulting Engineers and Project Managers will take off from the hill at Mathendele near the Old Reservoir towards the Waste Water Treatment Plant via Nsongweni turn off. For more detail on the locality refer to drawing number 1 in appendix 1. This Progress report reports on the progress to date as outlined below 4.3 Project Time Progress The project is anticipated to commence on the 1st of October 2012. To date materials have been procured in accordance to the design of the May 2012. Materials have not been delivered on site. 4.4 Project Financial Progress To date E 445 345.00 has been expended towards the purchase of materials. The percentage financial progress is at 44.5 %.

4.5 Project Quality Management The specifications of the project are the SANS standardized specification. 4.6 Project Risk Management A project environmental health and safety plan is in place and is being actively used to mitigate and prevent any Environmental, Health and Safety incidences. The Plan is biased towards the South African legislation which does not only match but exceeds the Swaziland legislation interms on the Environmental Health and safety requirements. Section of 14 (supra) of the Environmental Health and safety plan addresses the risk monitoring and management aspects. 4.7 Project Communication Management A project organogram is available and is incorporated in the environmental health and safety plan 4.8 Conclusions and General It is suggested that an earlier commencement date would mitigate increments in costs.

5.0 LOGOBA RESERVOIR 5.1 Introduction The Design, Construction and Commissioning of a 3.2 Megalitre Reinforced Concrete Reservoir. Contractor, Roots Construction (PVT) Ltd was awarded to construct the reservoir in March 2010 for a Contract Amount of E 3,554,523.50. Project is 20 months behind schedule. Variations to date amount to E 974,485.43, penalties amount to E287, 916.00. 5.2 Project Time Progress The project is 28 months overdue due to the Contractors own delay problems. It is suggested that final negotiations be done with the Contractor and should these fails the Contract be terminated and the Client pursue alternative means to complete the reservoir. 5.3 Project Financial Progress The initial award sum of E 3,554,523.50 has attracted variations to the value of E 974,485.43 , penalties amount to E287, 916.00 5.4 Project Quality Management The specifications of the project are the SANS standardized specification. Concrete test have passed on all portions of the reservoir. 5.5 Project Risk Management An internal SWSC project environmental health and safety plan is in place and operates within the frameworks of the Contractors plan which is in accordance with the Swaziland legislation. And is being actively used to mitigate and prevent any Environmental, Health and Safety incidences. 5.6 Project Communication Management A project organogram is available and is available on request from the Contractor. 5.7 Conclusions and General Contractor is expected to provide the completion program of works and an estimate of the value of works pending.

6.0 SIMUNYE WATER TREATMENT PLANT TURBIDITY PROBLEM The development of a solution to enable the Simunye Potable Water Treatment Plant to treat raw water with a turbidity of over 120NTU. A study report has been presented to directorate and awaits feedback.

7.0 LOMAHASHA WATER SUPPLY The design stage has been completed and awaits approval subject to the availability of funds to proceed.

8.0 MATSAPHA PUMP STATION UPGRADE Design report has been completed and awaits approval to commence the works.

9.0 NHLANGANO WASTE WATER TREATMENT PLANT Project is on hold pending the availability of funds from Government

10.0 MATSAPHA DEPOT 10.1 Introduction The objective of the Matsapha Depot project is to house the new SWSC Central regional managers offices, a workshop, stores facility and Ecowater storage facilities. SWSC has appointed a Contractor, Dukai Construction to carry out renovation works in accordance to the Architects drawings as approved by the SWSC. The Architect is Building Design Group. 10.2 Locality The project is situated in the Manzini region of Swaziland in Matsapha on plot 237 Old Industrial Sites. This Progress report reports on the progress to date as outlined below 10.3 Project Time Progress The Construction Contract is valued at E 984 700.00 and the Architects fees will be pegged at 10% of the Construction cost. The project is anticipated to run for 8 months counting from the appointment date of the 6th of June 2012. The projects is currently stalled pending approval of the final drawings by the Matsapha Town Board, approval is expected on the 5th of September 2012 at the earliest and 16th of September 2012. The percentage time expired is 100.0 %. The Contract shall be extended by at maximum 6 weeks the time it has taken the Contractor to resume works thus implying the Contract will be complete on the 26th of October 2012. The physical progress is estimated at 75%. 10.4 Project Financial Progress Total estimated expenditure excluding impending variations is 984 700.00 for the construction Contract and 98 470 for the Architects fee. Expenditure to date is at 429 604.76 ( 354 492.00 being payment to the Contractor and 75 112.96 being payment to the Consultant) Percentage expenditure is therefore at 32.7% (39% on the Construction Contract and 76% on the Architects fee). In comparison with the physical progress and percentage time expired with the financial progress the budgeted cost of work produced satisfactorily measures up with actual cost of work done. However the high percentage of time expired measured against the anticipated schedule presence a risk that the cost may increase although there has been considerable effort in rescheduling the sequence of works. A claim for disruption

(which is less onerous, financially) versus a claim for delay (likely more onerous) is expected from the Contractor. 10.5 Project Quality Management The Architects level of supervision though not full time has an assurance of guaranteeing good quality. Retention of 10% to be reduced to 5% on completion obliges the contractor to give a good quality deliverable. 10.6 Project Risk Management The Contractor has an adequate risk management plan. No risk have materialized to date due to an active cooperation rhythm between the Contractor, Consultant and Employer. 10.7 Project Communication Management A project organogram is available. 10.8 Conclusions and General Matsapha Town Board approval is urgently sought to ensure the expeditious progress of the works.

11.0 ONE GROWTH AREA FOR PORTABLE WATER 11.1 Introduction In a bid to ensure growth and stability the Corporation has had to identify at least one area for a portable water supply scheme. 11.2 Locality Two areas have been identified in close liaison with the Regional Managers office and these are Makhewu in Siteki and Mhlumeni in Siteki. 11.3 Project Time Progress The task has to be completed by the 31st of March 2012. Percentage time expired is therefore 50 %. Final designs for the Makhewu scheme have been submitted to Directorate. A preliminary design for the Mhlumeni area has been submitted (5 September 2012) and approval is awaited 11.4 Project Financial Progress None 11.5 Project Quality Management The design standards are the SWSC standard and guidelines are as per Red Book South Africa. 11.6 Project Risk Management Design risk have been mitigated by the adoption of proven design standards and guidelines. 11.7 Project Communication Management Not applicable 11.8 Conclusions and General None.

12.0 HAWANE TO WOODLANDS GRAVITY MAINS 12.1 Description The Design and build contract of approximately 10 km of ductile iron pipeline and ancillary works for the provision of raw water to the Woodlands Water Treatment Plant from the Hawane dam. The project is situated in the Hhohho region of Swaziland. From the a suitably constructed outlet structure at Hawane Dam the pipeline will run in South Easterly direction towards Mbabane on the Banks of the Mbuluzi River. The pipeline is expected to span a distance of up to 10 kilometers (a minimum of 8.2 kilometers and a maximum of 10.2 kilometers depending on which route is taken). Refer to the Surveyor Generals 1:10 000 Map numbers E11, D11 and E12 12.2.1 Progress of the Project Project execution period of 9 months had initially been envisaged but due to land issues that are still at the negotiation stage this period may be extended by up to 10 months. The Contractors financial status also poses a time risks on the project implementation time. 12.3 Financial Status To date an advance payment of E 2.5million backed by an advance payment guarantee has been made to the contractor and the repayment amount to E 97 000.00. Percentage time expired to date amounts to 160% and the physical progress of the works is at 0 % against the Contractors anticipated progress of 100% (due to pending land issues). The amounts certified to the Contractor to date are 3.25 million (2.5million advance and 1.25 Million Preliminary and General Obligations) percent of the award sum (E 25 Million). The greater than initially anticipated burn rate is attributable to the advance payment 12.4 Status of Materials The Contractor, S.I.I has in the past highlighted their inability to procure pipe materials due to inadequate financial resources, to date they have managed to procure 2000 meters of the pipe material which as of the 15 of September 2011 1192metres had been delivered on site. Discussions with the Contractor imply that they will receive 1000km initially there after when the Client makes payment for the materials on site the other material (in Pretoria, South Africa)will be delivered and when paid for the Contractor will then put in an order to the

suppliers for the remaining materials. It should now be borne that these materials have lead times of 12 to 16 weeks. The risk of the Contract going over the initial time frame of 9 months is more than ever imminent and the inherent coast implication has to be curtailed at this point. 12.5 Personnel Matters The Contractor has been encouraged to use local labor and to adhere to labor regulations in line with the Government of Swaziland legislation. 12.6 Other Items of Importance Land issues and materials procurement issues have to be dealt with swiftly to avoid delays and consequential cost implications. When the Construction phase begins the Client needs a fulltime Clerk of Works to ensure quality of the works and mitigate any potentials source of disagreement (measurements) 12.7Contract Details Contract Details are as given in table 1-2.3 below Table 1-2.3 Contract Details Item Form of Contract Description Conditions of Contract for Plant and DesignBuild for Electrical and Mechanical Works and For Building and Engineering Works Designed by the Contractor, first edition 1999 Award Sum Revised contract amount: Commencement date: Time for completion: Completion date: Time extension granted: Revised completion date: Anticipated completion date: E 25,169,857.68 4 none 12 May 2011 Nine Months 14 March 2012 0 None 14 March 2012

12.8 Program & Progress Summary of progress Planned Progress % 4 Actual Progress % Weeks ahead (+) Behind (-) Survey of the route 100% 100% -16 was obstructed by land owners 18 Final design report 0% 0% -16 submitted on the 9th of September 2011 Pending land issues Construction 15 Jan 1998 0% 0% -16 have to be resolved to have right of Way Remarks

Planned Description Completion Date Monday Sept 2011

Final design

Client Approval

Monday Sept 2011

12.9 Delays and Claims Delays have been due to the following Land issues: these are now the predominant source of claim by the Contractor to date they account for about six weeks delay but this can be reduced to 2 weeks due to the availability of the design report being submitted on the 9th of September 2011. These land issues have affected the program by 2 weeks. The Contractor has also progressed with the final designs at a slow pace. This accounts for up to three weeks delay on the program No claim has been received to date.

12.10 Materials As mentioned in 2.2.3 the Contractor has problems procuring key materials in order to proceed with their contractual obligations. It is recommended that the Contractor show that they are able to procuring key materials in order to proceed with their contractual obligations thus meeting the project time frame. If they can not the Client may opt to advance the Contractor or terminate the Contract and proceed by way of in-house implementation or assign the contract to a competent contractor. These options have to be thoroughly thought as they present potential claims on the Client. 12.11 Utilization of Materials It is anticipated that the Contractor will need to import fill material in places deficient of suitable materials. Two borrow pits have been identified at 3.7 km and 8.12kilometres from the Hawane dam along the pipeline route. 12.12 Quality Assurance The Contractor has submitted his Quality assurance document outlying steps / procedures they will implement to meet the quality objective of the project.