PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA Presentation of Annual Report and Financial Statements 2005/06 to Portfolio Committee on Water Affairs and Forestry 19-20 March 2007 By N MORRIS CHIEF EXECUTIVE

Overview of Bloem Water Training of Board Members (Governance – South African Association of Water Boards) Approval of Financial year 2004/05 Approval of Shareholders Compact and Policy Statement. Board Focus - Institutional Reform Process to achieve goals - Determine Strategic Objectives - Review Policies - Quantify Risk Profile - Attention to Labour Relations

Statistics Bulk Treated Water Sales - 53,5 mil m3 Bulk Raw Water Sales - 16,4 mil m3 Retail Water Sales - 0,8 mil m3 HR Compliment - 212 Head office Regions - 3 Bulk Water Distribution Pipelines - 500 km Water Treatment Plants - 8 Reservoirs - 32 Local Municipalities (Water Provision)

Operational Activities Annual Budget Operation & Maintenance of schemes Operation & Maintenance Agent CMA Not Established Provide service in area eg (Modder, Caledon River) at own expense

Capex Annual Budget Bi-annual Revision Approval i.t.o. Legislative Requirements

Balance Sheet

Balance Sheet

Income Sheet

Ratios

Financial Statements Board approved i.t.o. WSA, 1997 and PFMA, 1999 External Audit Report - Opinion Financial Statements - No Qualifications

Summary Major Achievements in terms of performance Financial Solvency Liquidity Going Concern DWAF Transfer of Assets Agreements Raw Water Commitments Refurbishment Funding Bulk Water Supply Agreement – MLM

Implementing Agent - Mangaung Local Municipality Botshabelo Cost Recovery Project exceeding R80 million - Ukhahlamba District Municipality exceeding R40 million - Other Projects - Kopanong Local Municipality - DWAF - DPLG

Operation and Maintenance Agent - Mangaung Local Municipality (Thaba Nchu) - Ukhahlamba District Municipality (Herschel) - Dept. of Water Affairs and Forestry - Kopanong Local Municipality (Gariep) - PMR Awards – Top 500 Companies

Mechanisms put in place to achieve or strengthen service delivery Technical assistance to Water Services Authorities - Kopanong Local Municipality Jagersfontein/Fauresmith Water Supply - Feasibility Study concluded University of Free State - Study Chair Control University of Technology - Development of students International Agreement and Exchange Programme Norwegian Funding - Water and Sewerage Authority (Lesotho) - Northern Region Water Board (Malawi)

Strategic Plan of the Board for 2006/07 Process - Strategy and Action Plan - Policy Statement and Business Plan (Shareholders Compact) Strategy Objectives - Positioning Bloem Water as Leading Service Provider in the Water Industry - Supporting Municipal Water Services Delivery Objectives - Satisfying Customers - Ensuring Financial Viability - Operational Plan - Targets, Time Frames, Reporting

Strategic Challenges faced by the Board and plans / mechanisms put in place to overcome them Debtors - Kopanong Local Municipality arrears - Welbedacht Dam Siltation - Tienfontein Pumpstation - Implementing Agent - Kopanong Local Municipality - Operation and Maintenance Agent - Mangaung Local Municipality - Intergovernmental relations - DWAF Regional Office - DPLG - Dept. of Agriculture

Implications of the State of the Nation Address on service delivery of the Board Accelerated and Shared Growth - Implementing Agent - Ukhalhamba Distric Municipality - HEP - Sterkspruit Water Supply - Mangaung Local Municipality - Botshabelo Cost Recovery - Dept of Water Affairs & Forestry - Toilet Project

Strengthening Local Government - Kopanong Local Municipality Water Services – Engineer - Operation and Maintenance Agent - Mangaung Local Municipality (Thaba Nchu) - Ukhahlamba District Municipality (Herschel) - Dept. of Water Affairs and Forestry - Dept. of Local Government and Housing - Kopanong Local Municipality (Gariep)

Youth Development Tertiary Institutions Internal Training and Support - Foreign Funding - Training Programme - School Education DWAF - 20/20 Vision - Water Week

Conclusion Appreciation to Committee