Infrastructure

1. (a) Loadshedding is impacting human settlements projects directly in relation to cost, time and quality:

Cost

• Increasing material prices due to fuel costs for generators and the high demand for material as factories cannot keep up with the demand due to load shedding.
• Material theft at night during load shedding.
• Approximately 7-9 % increase in costs. This is, however, being absorbed by the contractor due to fixed-price tenders.

Time

• Delayed delivery of material due to low production at factories.
• Certain activities on site come to a halt when load shedding.
• Almost 8 – 9% loss in time.

Quality

• Due to power tools not working during load shedding, SMMEs are taking short cuts. For example, if the grinders are not working, bricks are broken by hand which affects the quality of the structure (this is addressed and rectified but it takes more time).

All contractors are responsible for power supply during load shedding where predominantly diesel generators are used. There is some negative impact on certain sites resulting in delays with concrete mixing or testing.

1. (b) In respect of maintenance and capital infrastructure projects in General Buildings, there has been limited adverse impact of loadshedding to date. Contractors work around loadshedding by utilising small generators and power tools which they bring to site, and in instances where they are doing work in provincially occupied buildings, these have back-up generators in place.

 

The nature of the wide range of services for which the Department of Transport and Public Works (DTPW) is responsible is such that it has essentially been able to continue with other aspects of work when electricity has been cut e.g. on a construction or maintenance site, while power driven tools may be unusable for a time, plastering, bricklaying, levelling and so on can continue. On most road projects, construction companies provide their own power given the variable locations of the work to be done.  A far greater threat lies in the inability of other agencies and spheres of government upon which DTPW is dependent for services e.g., property transfers, zoning applications, the Deeds Office.

2. The cost of generators and resultant delays due to load shedding is for the cost of the contractor. Human settlement infrastructure projects are predominantly in areas where there is no electrical supply when projects commence. The electrical supply on site is normally only in place at the end of the project when the houses are complete.  Hence, it is a norm for contractors to provide alternative power supply. The DTPW, in its capacity as custodian and manager of provincial government buildings has installed backup generators in all provincially owned office buildings and in this way has addressed all previous load-shedding demands since 2015/16.

 

The installation of backup generators is often part of a larger electrical infrastructure upgrade project and accordingly, isolating the capital costs of procuring generators is not always possible. I can mention that in 2016/17 the DTPW procured and installed a 1000kVA standby generator to run all electrical supply at the York Park shared office building in George. This was part of the electrical infrastructure upgrade project at the building with a project cost of R7.7m.

 

From April 2022 to February 2023, the DTPW has procured additional generators and bouser [diesel tanks and trailers] at an approximate cost of R1.3m. This is in addition to short term rentals of backup generators to assist user departments, such as the Department of Agriculture in the support of their operations. Over the same period, an amount of approximately R633 000.00 has been incurred in respect of such rentals.

The detailed repair and maintenance costs relating to generators cannot easily be extracted from the overall operational maintenance costs incurred by the DTPW in respect of all mechanical and electrical installations. However, the DTPW will have spent in the region of R 5.1m on diesel from 01 April 2022 to 28 February 2023 for the various backup generators which it has provided across the general building portfolio.