Vaal River Eastern Sub-System Augmentation Project

The Vaal River Eastern Sub-System Augmentation Project (VRESAP) addressed a critical water shortage in South Africa’s eastern Mpumalanga province.

Introduction



The Vaal River Eastern Sub-System Augmentation Project (VRESAP), also known as the Vaal Pipeline Project, addressed a critical water shortage in South Africa’s eastern Mpumalanga province. VRESAP aimed to bolster water supply for the growing energy demands of Eskom’s power stations and Sasol’s fuel production facilities. VRESAP significantly increased the region’s water yield by 160 million cubic meters annually, ensuring a reliable source of water for these crucial industries and contributing to South Africa’s energy security.

The project was initiated in 2004 and addressed the growing water needs of Eskom and Sasol’s expansion in eastern Mpumalanga. Funded and implemented by the TCTA, the project is now fully operational, delivering water since June 2009. However, the project was facing financial difficulties due to delays in completion and revenue generation. The project’s completion was delayed by two years, causing a 7% budget increase and pushing back the start of revenue collection. Loan repayments were due before revenue streams began, creating a liquidity mismatch. The DBSA provided a R400 million loan to address this liquidity shortfall and the seasonal funding gap. 

It will pump water through 115 km long, 1.9 m diameter buried steel pipeline from the Vaal Dam reservoir near the Vaal Marina Boating Resort to Knoppiesfontein near Secunda. From here the water will be diverted via existing pipelines either to the Bosjesspruit Dam for supply to Sasol’s petrochemical facilities or to Trichardsfontein Dam to supply the Eskom power generation facilities. An additional 5.5 km pipeline will be installed from Knoppiesfontein to Bosjesspruit.

Outputs 

  • 160 million m3 per year increase the yield of the region’s Vaal River Eastern Sub-system by 160 million m3 per year
  • 1900-meter diameter pipeline constructed, stretching 115 kilometres to transport water from the Vaal Dam reservoir to Knoppiesfontein near Secunda.
  • Abstraction works located at the Vaal Dam, including a low-lift pump station, a dual purpose de-silting workscum-balancing dam(s), a high lift pump station, 121 km of 1.9 m diameter pipeline, a 10 000 m3 surge tank and an upgraded historical diversion structure.
Project Financing
Public
E&S Risk category
Category 3
Sustainability Impact

Economic impact

  • R60 million local economic spend in the construction period Job creation.
  • 20 permanent persons that are employed.

During construction:

  • 600 people employed in the construction of the pipeline.
  • 350 people employed in the construction of the abstraction works.
  • Transfer of skills to unskilled workers During construction, contractors, and service industries in the region benefitted from the construction activity. This had a knock-on effect on suppliers of goods and services in other areas of the country.
Stats
Location

Eastern Mpumalanga, South Africa

Water Supply

160 million cubic meters of water increase per year

Steel pipeline length

115 km

Amount financed by DBSA

R400 Million