1. DPLG PORTFOLIO COMMITTEE
RAND WATER
Performance 2004/05
DPLG PORTFOLIO COMMITTEE
7 March 2006

2. “Rand Water reports yet another solid performance”
a trend that now enables the company to reduce its borrowings by 53% and pronounce its readiness for growth
FOCUS:
People
Planet
Profit

4. Organisational Performance
Corporate Accolades
Financial
People
Customers
Employees
Transformation
Aid/HIV in the workplace
Environment and Sustainability

5. 2005 Corporate Achievements
Triple certification - Corporate ISO 9001:2000,
ISO and OHSAS 18001
Gold award annual Gardenex Exhibition
PMR Silver Arrow Award (SOE’s)
Khuza awards in association with Kellogg’s Star-in-you
(best campaign directed at kids)
Listing by Corporate Research Foundation
- One of the Best Companies to Work For
Bronze medal under Public and Utility sector
- at Rand Easter show exhibition

6. Financial Surplus: R502 m(R375 m:2004) Revenue: R3,457(R3,258 m:2004)
34%
Surplus: R502 m(R375 m:2004)
Revenue: R3,457(R3,258 m:2004)
Cash generated from operations: R824m(R686m:2004)
Increase in sales: 3,452Ml/d(3,414Ml/d:2004)
BEE Performance
Top 100 suppliers profile
48% BEE (42%: 2003/04)
Spend R 403 million (R263 million : 2003/04)
6.2%
20%
1.1%

7. Raw water costs as % of total cost

8. Appropriation of Funds
Net Surplus R502 m
Debt Service (Interest) R152 m
Provision for Debt Redemption R176 m
New Capital works R169 m
Contribution to Rand Water R5 m
Foundation & CSI programs
Net surplus funds after appropriation Nil

9. Training and development
2004/
2005
2003/
2004
Training spend (as % of Total Payroll)
Training spend (expenditure in Rm)
Training hours/employee
Apprentices and Interns
8.8
7.1
40.8
34.5
189 66 93 67

10. Transformation Category ACI management Females at management
ACI All levels
Female all levels
Disability
2005
2000
59.36%
34.09%
32.52%
7.16%
81.11%
75.41%
21.48%
6.34%
3.51%
0.39%

11. Managing HIV/Aids in the workplace
Maintaining health after infection through treatment, care and support by access to Aid-for-Aids
Aid for Aids is a service ensuring specialist medical care and counseling for affected employees and their families
R each beneficiary for treatment annually

12. Managing HIV/Aids in the workplace
Our approach targets prevention through:
VCT campaigns:1587 staff members participated
Monthly educational campaigns
Peer education
employees per peer educator(1:40)
Participation in national campaigns -16 days of activism,
World Aids day, Condoms week.

13. Impact assessment study

14. Maintenance Excess of 3 800km pipelines
56 reservoirs with 5 845,1Ml total storage capacity
Capital infrastructure investment budget -
R 1 billion over 5 years
For 2004/2005 spend R302 million
R130 million for replacement and refurbishment
R70 million to be spent over five years on further pipeline integrity investigation

15. Environment Steam boiler plant at Zwartkopjes closed down
Management of forums in the Upper Vaal Water Management area
Established the reservoir website( with over 110 hits for 2004/05

16. Environment Actively involved in 13 Catchment Areas and 11 forums
Gaseous emission reduced by 99.5%
Zwartkopjes mg/m
Vereeniging mg/m
Implemented R19 million worth of projects
to remove alien vegetation

17. Corporate Social Responsibility

18. Corporate citizenship

19. : Like our water……
Our performance continues to flow up to new heights.
Financially we are in our strongest position ever,
yet we continued to invest more money in our future.
Through training and development of our people,
maintenance of equipment and assets, and investments in our communities, we are committed to create a prosperous future.

20. Key Strategic Issues Capital Expenditure over next 5 years
The CPIX dilemma
Water pricing and affordability
Municipal capacity
Skills shortages
Bulk Contracts
Water Usage and Water Savings – keeping water affordable

21. Water Losses: Phase 2 Lesotho ?
2005
2007
2017
2025
2023
Phase 1 debt to be paid off
Water Demand Management – R3b
Augmentation date is creeping back – R30b
Decision Time for Lesotho Phase 2
R3bn needed now to save R30b in 2017
Possible Debt overlap

22. Water Losses Gauteng – R3,14 m / day (R94,2m/month)
Unaccounted for water:
Inefficient use
Wastage
Theft
Leaks
At municipal level – between 15% and 50%

23. Price of Water Water Value Chain (2005/06):
Raw Water (5,7%) - DWAF
Bulk Water (5,3%) – Rand Water
Retail Water (?%) – Municipalities
Challenge: to make water affordable to end communities
Effective regulation across the value chain is needed

24. ERADICATING WATER AND SANITATION BACKLOG IN RAND WATER AREA OF SERVICE

25. TOWARDS ACHIEVING THE MDG’S
R/W has embarked on a programme with the following objectives:
Understanding the inadequacy of water service provision in and around our AOS
Growth projections- population and demand
Assessment of current capacity

26. HOW? Our strategy is three pronged:
Addressing backlogs in water and
sanitation in our AOS and beyond
Delivery in water and sanitation
working directly with Municipalities
Delivery in water and sanitation
working with DWAF to capacitate
municipalities in improving service

27. PREVIOUS INTERVENTIONS
Reduction of unaccounted for water
Odi from 48% - 29%
Harrismith from- 23%- 18%
Tshwane - R34 million
Madibeng - R2m
Emfuleni- R12m

28. PREVIOUS INTERVENTIONS
Increase access to water
Odi from to households
Mabopane & Garankuwa from 66% -
80%
Harrismith from 71% to 77%
Reduce unpaid for water volumes
Odi informal villages from 42kl to 12kl
Urban areas from 36kl to 17 kl

29. (2004/05) INTERVENTIONS
Increased participation and efforts to expand water supply to areas of need:
The beneficiaries were
Sasol R40 million pipeline project implemented and managed by Rand Water
Bushbuckridge people now access water within 200m of walking distance.

30. ACCESS TO WATER
Western Highveld region scheme continued - A R110m project with R40 m contribution from Rand Water
Beneficiaries people from households in:
Kungiwini, Thembisile and Nokeng tsa Taemane

31. SANITATION
Total spend for 2004/05 was R10,6 million
Winterveldt
518 toilets built (2989 since 2003)
Hygiene workshops with attendees
Bekkersdal
Hygiene workshops with 2400 attendees

32. SANITATION
Harrismith
A total of 138 buckets were removed and replaced with a full water borne system at R
Water meters, supplied by Amanziwethu, were installed in 18 homes

33. LEAKS REPAIRS
Repaired leaking pipes and toilets for families in Tshwane (Mamelodi and Eersterust)
R 1,6 million spend created temporary employment for 62 locals
Accredited training for 32 locals on plumbing

34. REALITIES ON THE GROUND
Whilst these programmes are still being implemented, reality on the ground reveals the following:
1 million people close to our AOS with no adequate access to water and sanitation.
Delmas
WHR –
Balfour District –
Eastern Free State

35. CHALLENGES
Despite expertise and capacity at R/W
Municipalities do not take advantage of the provision to appoint organs of state (like R/W) to assist them to improve service delivery
Legislative framework
Conferring the status of Water Services Authorities on Municipalities

36. In absence of adequate funding the net results are:
CHALLENGES
FUNDING IS THE BIGGEST CHALLENGE
In absence of adequate funding the net results are:
cost of water become excessive and unaffordable
Need to address proper sanitation will be left neglected
Uprisings and protests seen currently
South Africa’s MGD’s wont be met

37. WAYFOWARD PARTNERSHIP IS THE KEY. Rand water’s role
Rand Water has sufficient capacity and expertise to :
meet the need and address the challenges both in infrastructure and water quality issues
extend its services beyond its AOS

38. WAYFOWARD Government’s role
To release funding- estimated at R 900 million is needed to address the backlog
Local government role (Municipalities)
Take advantage of policies allowing them to utilise state own entities and tap into Rand Water’s skills and capacity

39. CONCLUSION
Our aspiration to be the leader in the water industry encourages us to keep striving for continuous improvement

40. “in partnership lies our success”
Izandla Ziyagezana
“in partnership lies our success”
Thank You