PROJECT PROCUREMENT AND COMMUNICATION Procurement strategy and plan for the Seawater Desalination Systems for Cape Town JM Zitha


PROJECT PROCUREMENT AND COMMUNICATION
Procurement strategy and plan for the Seawater Desalination Systems for Cape Town
JM Zitha (201100256)
AbstractAs water demands keep on growing, South Africa is beginning to consider seawater desalination as a potential future supply source, and it is presently being examined at a plausibility level in various seaside urban communities, including Cape Town. Desalination is distinctive to regular surface and groundwater supply sources in that it is atmosphere strong, having a confirmation of supply of basically 100 percent. Be that as it may, the expanded unwavering quality comes at an extraordinary expense. This paper introduces a technique produced for acquirement of the proposed desalination plant as an incorporated part of the Western Cape Water Supply System, with a specific end goal to enhance framework working guidelines and cost.

LITERATURE REVIEWThe Western Cape area is characterised by a Mediterranean climate, with rainfall occurring in the winter months (May to October) when demands are low, and minimal rainfall occurring in the summer months when demands are high. Approximately 50 percent of the total system storage is available for storing winter flows to meet summer demand, with the remaining 50 percent required for long-term drought storage (Shand & Sparks 2004:3). The main dams of the Western Cape Water Supply System (WCWSS) are operated as an integral system in order to reduce the probability of spillage, hence increasing the overall system yield (Department of Water Affairs 2007:31). The WCWSS supplies water to various towns and irrigators in the Western Cape, including the City of Cape Town. The latest WCWSS planning documents give the total water usage from the system as 503 million m3/a in 2013 (Department of Water Affairs 2013a:21) and the total integrated system yield at a 98 percent assurance of supply as 596 million m3/a (Department of Water Affairs 2011:7). To manage demands, yield and planning models of the WCWSS have been set up in the Water Resources Yield Model (WRYM) and Water Resources Planning Model (WRPM) respectively in order to simulate the inflows and demands on the system and plot storage trajectories of the coming year. Table of Contents
TOC o “1-3” h z u 1Abstract PAGEREF _Toc525291721 h 22LITERATURE REVIEW PAGEREF _Toc525291722 h 23Background PAGEREF _Toc525291723 h 43.1DEFINITIONS PAGEREF _Toc525291724 h 43.2The way toward building up an procurement strategy can be broken into three stages: PAGEREF _Toc525291725 h 43.2.1To gather data and determine the project characteristics PAGEREF _Toc525291726 h 53.2.2Determine preferred delivery model PAGEREF _Toc525291727 h 83.2.3Plan approach to market PAGEREF _Toc525291728 h 114Bibliography PAGEREF _Toc525291729 h 14
BackgroundThe City of Cape Town, South Africa, is at present encountering the most exceedingly awful dry season since 1900’s and the Premier of the Western Cape has proclaimed the City and different regions in the Western Cape as a hazardous situation. On account of the dry season, the city’s dam levels have dropped generously and the City of Cape Town needs to enlarge the city’s consumable water supply by utilizing reverse osmosis (RO) and desalination plants at a few destinations along the coastline. Worley Parsons has been named to build up the outline of the marine desalination pipelines and structures, get ready specialized delicate reports for the arrangement of a contractual worker to develop the works and manage and screen the development works. There are 9 potential desalination locales being researched at the moment.

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DEFINITIONSClient implies for the most part people in general division office that obtains and conveys the undertaking.
Procurement strategy identifies with the procedure for considering and choosing the most proper conveyance model and way to deal with advertise for a particular venture. The obtainment methodology ought to be archived to unmistakably exhibit how an organization has assessed the accessible alternatives, and touched base best case scenario fit answer for a specific task.
Procurement plan is the execution plan for conveying the acquirement system amid the sourcing period of the acquisition lifecycle. It should address matters, for example (governance, key stakeholders and their responsibilities, budget management, tender deliverables, timelines and milestones, probity requirements, and tender evaluation requirements).

The way toward building up an procurement strategy can be broken into three stages:Gather and analyse project data.
Determine preferred delivery model.
Plan approach to market.
To gather data and determine the project characteristicsRequirements
The National Water Resources Strategy 1 (first release, 2004) showed that while an overflow of new water still exists in the nation all in all, the greater part the water administration regions experience the ill effects of an ebb and flow or anticipated water shortage. Since the production of the primary National Water Resource Strategy (NWRS1), water asset Reconciliation Strategies have been refreshed and created for all the real water administration territories. A considerable lot of these water asset Reconciliation Strategies show that the recovery and re-utilization of water system return streams, mining affected waters, mechanical effluents and treated metropolitan sewage effluents will in future be required to offset water necessities with accessibility. The nature of return streams and treated profluent may, be that as it may, not be reasonable for re-use by downstream and other water clients. The execution of desalination can render return streams, treated effluents and salty groundwater fit for use by an extensive variety of water clients. Desalination innovations commonly don’t just expel salts from water, yet additionally a range of different toxins, for example, metals, supplements and organics. The significant urban communities and littler towns situated along the drift may likewise require the desalination of ocean water to meet their future needs. Inside the setting of the National Water Resource Strategy 2, it is in this way vital to think about a technique for desalination.

The current scope of work incorporates giving the Contractors adequate data and detail to embrace a nitty gritty outline of a seawater desalination admission and outfall frameworks to be raised in the plant. The Contractor’s degree incorporates the Design, Supply, Establish, Commission, Operate and later Decommission of a Sea Water Reverse Osmosis (SWRO) Plant, to Supply SANS 241:2015. The proposed desalination plant include two stages. Stage 1 is for the attempts to supply an ensured 2Ml/day. Stage 2 is for the attempts to supply an ensured 7Ml/day. Stage 1 and Phase 2 development tasks are required to start all the while, anyway activity of Phase 1 is planned to begin end November 2017 and task of Phase 2 is booked to initiate end February 2018.

Constraints
Water quality regulations
Desalination treatment and utilization of desalinated water may in a few occurrences include re-utilization of effluents. The desalination of bitter water, mine water, mechanical effluents, civil treated effluents and seawater presents new water quality issues. South African principles on recovered and re-utilize water quality are required for various classifications of water utilize. The re-utilize water gauges must be incorporated with the other national rules and principles on water quality. Water quality issues relating to water re-utilize will be tended to in Department of Water Affairs’ (DWA) National Strategy for Water Re-utilize.

Streamlining regulatory approval processes
DWA will work with other significant offices to build up an incorporated and more streamlined and time-compelling way to deal with administrative endorsement for the desalination of water. This activity requires a particular spotlight on seawater desalination, where flow administrative endorsement forms are hazy. DWA will build up a rule on a coordinated administrative endorsement process. This rule will address:
The parallel and coordinated thought and endorsement of licenses and allows as far as the distinctive Acts and related directions.
The suitable sequencing and planning of parallel approval forms.
The potential for a lead specialist, being the Department of Water Affairs, to organize and facilitate the diverse administrative approval forms.
The need of a solitary open cooperation and partner commitment procedure to help all the distinctive approval forms.

Risks
Public acceptance
Desalination of water has numerous societal and network benefits as extra water supply, yet relying upon the wellspring of feed water, may in any case experience incredulity and even water client resistance. Desalination is a generally new idea to South African water utilities and water clients. Discernments are as of now shaped about desalination, going from a modern innovation which can’t be upheld in a creating nation to an expensive water treatment process which will drive up the expense of water to the customer. It is critical to illuminate and teach general society and partners to permit helpful and educated support in choices identified with desalination ventures. Open acknowledgment is halfway tended to in the natural endorsement forms yet should be supplemented with a proactive correspondences activity to instruct general society and partners.

client capability
Local Employment
Customer needs to perceive the duty they have as a business to put resources into the nearby economy and give chances to the neighbourhood network. We acknowledge this duty and work with all task accomplices to augment the financial advantages of our exercises to guarantee we leave an enduring heritage. This inheritance ought to be well beyond the administration of our development tasks and stretch out to the neighbourhood economy, the utilization of nearby products and enterprises and enhancing the aptitudes of the neighbourhood work constrain. With a specific end goal to advance and screen an undertaking’s neighbourhood monetary effect we:
Monitor the home postcodes of those chipping away at our projects*
Identify and record our nearby spend (specifically and in a roundabout way)
Encourage our inventory network to investigate every potential chance to utilize locally
Engage with neighbourhood experts, work organizations and altruistic offices to associate with the nearby workforce, long haul jobless and those requiring support into business
Engage with universities and schools to offer understudies, work arrangements and experience to understudies in the neighbourhood.

Market position.

Trusted and able water establishments are required to effectively plan and actualize desalination ventures. Such water establishments should likewise have the capacity and believability to work and keep up desalination ventures. General society trust in such establishments must be high, since these ventures may affect contrarily on water clients if not legitimately worked and kept up. Huge metropolitan districts 10 and water sheets with a demonstrated reputation in the execution of expansive water treatment ventures must be situated to actualize desalination ventures. Chosen neighbourhood regions and locale regions with an edge of building activities and undertaking administration limit on entangled water asset improvement and water treatment plans may likewise be considered to execute desalination ventures.

Determine preferred delivery modelResearch and development
Department of Water Affairs will work with the Water Research Commission (WRC), the Department of Science and innovation (DST) and the Department of Trade and Industry (DTI) to help the advancement of desalination advances where South Africa has near focal points, especially in desalination forms identified with mining and industry, including exploring the foundation of a focal point of skill and brilliance at least one colleges. The target of the innovative work will be to create advancements and procedures that can be popularized and connected to the diverse sizes of desalination ventures.
Mines and industry as of now have the limit, learning and mastery to execute desalination ventures. Open division foundations/organizations must use on the South African private part capacity to execute such activities. Cautious thought must be given to the assembly of private segment aptitudes, experience and limit in the execution of desalination ventures. This is particularly the case for extensive scale desalination establishments. On account of mine water, it bodes well to include the private part
Purpose
To embrace an evaluation of the scope of conveyance models against the task qualities to decide and suggest a favored alternative. Determination of a suitable conveyance show is a standout amongst the most vital choices to be made amid the development acquirement process. An unseemly conveyance model can expand venture hazard and contrarily affect an incentive for cash, quality and timing. Undertaking a conveyance show choices examination expects to decrease this hazard. It is along these lines fundamental that a powerful investigation is embraced to guarantee that the correct model is picked. There are numerous composes (and half breeds) of conveyance model to browse (Traditional (conventional client led design), Design and build, Package based, Direct managed, Alliance, Public Private Partnerships (PPP), Early contractor involvement and Panel of suppliers.)
The following steps are recommended, to assist with identifying a preferred delivery model:
evaluation criteria
Utilizing already accumulated venture trademark information, examine and distinguish key assessment criteria. Consider any exceptional venture conditions or dangers, considering exercises gained from past tasks. It very well may be useful to counsel with different associations who have encountered conveying comparable activities, to accept exercises learned.

Desalination Plant and Associated Infrastructure
This area portrays the key segments of the desalination plant and remarks on the known condition. This is certainly not a thorough review of the state of the Plant, rather it is an abnormal state survey for the motivations behind distinguishing rising issues for every one of the key frameworks inside the plant. Each area of the plant is portrayed as far as its procedure capacity and its condition, while in care and upkeep.

Seawater Intake and Pre-treatment
PROCESS: The admission and pre-treatment territory takes seawater from the sea, at that point screens, and measurements and channels the seawater to set it up for the subsequent stage of turn around osmosis.
CONDITION: The penstocks, screens and pumps in this piece of the Plant are worked and kept up frequently amid shutdown to guarantee they are kept up when not in activity. The region is spotless and in great condition with minimal indication of erosion. The compound tanks have been depleted, with the exception of the sulphuric corrosive tanks, which are by and large suitably kept up. The compound dosing frameworks are housed under one rooftop and are in great condition in spite of tornado harm, for example, rooftop harm and broken link plate and dosing pipework..Reverse Osmosis Units & Permeate Storage
PROCESS: The separated water is bolstered through the first pass turn around osmosis trains at high weight, at that point a part is put away in the halfway penetrate tanks until the point when sustained through the second pass trains, while the rest of released direct to the remineralisation framework.
CONDITION: The building lodging the turn-around osmosis units and the hardware itself are in great condition, with the exception of the absence of a rooftop after the tornado. The high weight pumps have been remade as a component of deformity correction works and will be re-appointed when the plant is restarted. The films in the switch osmosis units are in sodium bi-sulfate conservation liquid. This implies the greater part of valves and related resources are consistently worked to recharge the liquid through the Clean In Place (CIP) framework which was adjusted by the administrator for this reason amid the shutdown to augment the adequacy of the layer safeguarding.

evaluation weighting and scoring
Nearby examination into desalination and coordinated framework demonstrating. Regardless of the different possibility thinks about which are at present under way, and the yearning standpoint for seawater desalination advancement in South Africa, there has been little investigation into the conjunctive utilization of seawater desalination with surface water supply sources, and how to coordinate seawater desalination plants into existing water supply frameworks. The main South African creators who have introduced any material on the theme are Mallory et al (2013) who embraced an examination into the ideal task of the seawater desalination plant in Mossel Bay utilizing the Water Resources Modeling Platform.
Crafted by Mallory et al (2013) started to handle a portion of the key inquiries related with the estimation of water to various clients, and setting of working tenets for a desalination plant. Despite the fact that not particularly identified with seawater desalination, crafted by Van Niekerk and Du Plessis (2013a:543) into the conjunctive assessment of the expenses and advantages of between bowl water exchange plans outlines various helpful standards which could be effortlessly connected to coordinate framework demonstrating for seawater desalination. Van Niekerk and Du Plessis (2013a:543) found that the supposed incremental methodology has verifiably been followed in assessing the feasibility of between bowl exchange plans, which expect that volume exchanged per annum is equivalent to the contrast between the anticipated future water requests and the ebb and flow framework yield. The creators found that the first projections immeasurably surpassed the genuine exchanges, for the most part in light of the fact that the incremental methodology overlooks the stochastic idea of the states of the accepting framework. To address these worries, Van Niekerk and Du Plessis (2013a:543) propose a complete methodology in which the accepting water bowl and the exchange plot are demonstrated stochastically as a coordinated framework in the WRPM. Taking this idea further, Van Niekerk and Du Plessis (2013b:551) hypothesize 2
Recommendation.

Understanding future cost risks
The working expenses of desalination are commonly higher than ordinary water treatment innovations. Also, desalination costs are touchy to changes in future vitality costs, the expense of films, the expense of synthetic compounds and fund costs. To the degree that fund is raised outside of South Africa, desalination expenses might be liable to remote trade hazards also. In assessing desalination choices, it is vital that these vulnerabilities are legitimately comprehended and a proper hazard appraisal and investigation is embraced.

Financing desalination projects
Water foundation in South Africa is mostly supported by a mix of credits raised based on client charges (water duties) and government awards (fundamentally through the city framework gifts and provincial mass foundation stipends). At present there is minimal private value and interest in water foundation. Desalination ventures, particularly extensive scale ventures, loan themselves to advance financing because of the safe idea of the income streams that can be created from the offer of desalinated water. In a domain where government concedes and obtaining ability are obliged, the alternative of utilizing secretly raised advance fund (that is, venture back) for the improvement of expansive scale desalination offices will be investigated. Normally this can be accomplished through plan assemble work compose contracts (or varieties of this kind of agreement) with the private part.

Plan approach to marketTo determine the approach to market
Appropriate tender process
Once the recommended delivery model is chosen, the client needs to plan an approach to market
Procurement of 100% sustainable power source and Desalination plant will go for Tendering procedure: In November 2010, Cape Town Water issued a Request for Proposals for the supply of 100% sustainable power source to the desalination plant that will be constructed. The recommendations were surveyed against the assessment criteria and six advocates are to be short-leaned to get a Request for Tender (RFT). The RFT was issued in January 2008, and welcomed defenders to submit tenders for the supply of power and RECs for the 250 ML daily desalination plant over a multi-year term. Nonetheless, the RFT determined that Cape Town would not acknowledge Renewable Energy Certificates (REC) from specific sources, including RECs made:
At a power station not associated with the National Electricity Market (NEM); or potentially
From the consuming of wood squander. Tenders shut in March 2008. Every one of the tenders depended on twist control as the essential wellspring of sustainable power source declarations. Contracts were granted in July 2008. The accompanying two contracts identify with the supply of sustainable power source:
A REC Supply Agreement with Renewable Power Ventures Pty Ltd (RPV), an City of Cape town
A Project Deed, additionally with RPV, for the development and activity of the Capital Wind Farm. Cape Town’s Desalination Plant | Greenhouse Gas Reduction Plan 17 likewise, CTDP went into a different Electricity Supply Agreement with BBP Energy Markets Pty Ltd, a backup of Babcock and Brown Power. This agreement is for the supply of power and related retail benefits.

Form of contract for each package of work.

The advantages controlled by Cape Town desalination plant and caught with the value assurance were conveyed under two separate contracts amid the period 2007 – 2010. The agreements under which Cape Town desalination obtains its work and upkeep benefit conveyance are so organized because of acquirement systems executed by the first extreme proprietor of the advantages, Cape Town Water, in 2007-2008. The accompanying areas layout these acquirement choices and the task and support benefit conveyance obtainment that emerged from them.
Desalination Plant DBOM Contract
The desalination plant, including the admission and outlet passages and marine structures, were secured under an outline and develop (D;C) contract between Cape town Desalination Plant P/L (completely Water Corporation) and other global organization, The advantages caught under the desalination plant D;C contract stretched out from the marine admission and outlet to a release pipe from the drinking water stockpiling tank. Income stream meters caught under the plant contract were introduced downstream of the drinking water pumping station, anyway the pumping station itself was not conveyed under the plant D;C contract. At the same time with the outline and build get a work and look after (O;M) contract was granted to a universal organization. This design, build, operate and maintain (DBOM) approach will chose to fundamentally exchange the dangers related with working the desalination plant, as composed and conveyed by the D;C Contractor, to the plant administrator, who caught this hazard in its settled cost.
How the tenders will be awarded
PREPARATION WORK
Step 1: Reception of the bids
Step 2: Opening of the bids
Step 3: Review of the documentation
Step 4: Technical evaluation
Step 5: Financial assessment
Step 6: Assessment of ‘best combined offer’
ADVERTISEMENT OF THE TENDER
Continuously incorporate a site visit in any delicate commercial and honour method. The delicate notice time frame needs to consider the requirement for endorsement (more often than not at the notice and honour stages) from the loan specialist or contributor, the need to stick to neighbourhood or national government controls and bureaucratic systems, regardless of whether it will be publicized globally, provincially or broadly and the extent of works. A delicate for one little dam could be publicized broadly and potential givers offered 6 to about two months to react, including site visits and accumulation of reports. Hence, the delicate period for this, including ad and assessment could associate with 12 weeks.

THE EVALUATION MODALITIES
Two alternatives exist for delicate, and the decision must be shown in the delicate record. In the main alternative, the specialized and money related offer are consolidated and introduced in a solitary envelope. The second choice, called organized delicate, includes a two envelope framework in which the specialized proposition (first envelope) is assessed and offers positioned before the monetary offer (second envelope) is opened. It guarantees that cost does not impact the specialized assessment of the offer. This methodology ought to be favored, specifically on account of complex contracts. Where a two envelope offering process is utilized, it ought to be demonstrated in the delicate archive that givers are to put the specialized and money related segments of their tenders in independent, obviously checked, envelopes. These envelopes are to be set inside a solitary envelope and typical methods apply for the hotel of the delicate.

Conclusion
Procurement rules exist in many nations and for all universal financing organizations and these must be taken after. These tenets ought to support genuine and open rivalry in offering and contract grant, open gatherings and impartial and reasonable conveyance of data, compelling observing and inspecting everything being equal and usage exercises. As a component of the readiness work, and before any delicate is publicized, the securing office requires a sensible gauge (in light of a decent quality outline and costing process) of the expense of the structure with a breakdown of critical cost things. To get ready such a gauge, a specialist (The Engineer) ought to be chosen and be named to do this primer work as well as keep on supervise the contractual worker and guarantee all works are done by the plan and to the most elevated quality conceivable. This gauge must be kept entirely classified and there ought to be no connections between faculty having this learning and the bidders. Should the ensuing offering result in offers got that differ enormously from this gauge, inquiries ought to be raised on the legitimacy of the offers. Disparages from bidders could prompt poor contract execution and the requirement for changes and varieties as the agreement continues and overestimates may propose over estimating, cartel joins or other improbable offering.

Bibliography 1 Journal of the South African Institution of Civil Engineering • Volume 5 12 9 Number 1 March 2017
2 Basson, M S, Allen, R B, Pegram, G G S ; Van Rooyen, G A 1994. Probabilistic Management of Water Resource and Hydropower Systems. Littleton, CO: Water Resources Publications.

3 Department of Water Affairs 2007. Western Cape Water Supply System Reconciliation Strategy. Cape Town: Department of Water Affairs, South Africa.

4 Department of Water Affairs 2010. Integrated Water Resource Planning for South Africa: A Situation Analysis 2010. Pretoria: Department of Water Affairs, South Africa.

5 Department of Water Affairs. Integrated Water Resource Planning for South Africa. A Situation Analysis 2010. Report No P RSA 000/00/12910.

6 Department of Water Affairs and Forestry. National Water Resources Strategy. First edition. September 2004.

7Du Plessis JA, Burger AJ, Swartz CD ; N Musse. A Desalination Guide for South African Municipal Engineers. 2006. Department of Water Affairs and Forestry

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