1. Water Conservation and Water Demand Management Progress with the Strategy Implementation 16 September 2010

2. Background background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward WC /WDM Strategy – CCT commitment to implementation CCT 1 st metro in SA to develop and implement CCT only metro in SA with fully dedicated team for WDM – 10 year plan (2006-2016) – 5 specific goals – Wants to save 90 million m 3 /a by 2016/17 – Critical component of WC Water Supply Scheme – DWA wants to know

3. Background CCT made an undertaking (pg 68 of Strategy document) “CCT will commit over the next five years to implementing and monitoring a comprehensive WC/WDM strategy. In such a time no decision should be taken regarding any further water augmentation scheme in order to verify the full potential of WC/WDM. After five years the full impact and potential of the WC/WDM must be clearly demonstrated by CCT and re- evaluated. All assumptions made in the current analysis on the role of WC/WDM will be tested and adequately researched.” This report reflects the pro-active approach of CCT in monitoring and re-evaluating the strategy after 3 years of implementation background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

4. Background GoalTarget Implement ation ANRW<15% by 2010Quantitative BWastage < 2% of demandQuantitative EDemand growth < 1%Quantitative Action Plan C Ongoing effective management systems and implementation of IWRP Qualitative D Adoption of strategy as key deliverable for CCT Qualitative 5 Strategy Goals background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

5. Progress Summary Why measure progress? Need to measure impact on WDM DWA – if only achieving 50% success then will need new augmentation by 2015 If not achieving need to understand why not Need to know if re-alignment of Strategy is needed background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

6. Progress Summary What has been done? o Pressure management successful in 13 settlements including pressure reduction devices for 49 schools o 1693 consumer meters audited o 1775 meters fitted with automated meter reading devices o 20 574 consumer meters replaced o 17 998 consumer meters re-located & fixed o 70 652 water connection leaks fixed o Added 95 more treated effluent users which accounts for 80.5Ml/d of treated effluent use. background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

7. Progress Summary – More than 50 000 households visited with Integrated Leaks Repair Project – 341 Caretakers trained to date – 41 Schools visited and leaks repaired – 160 Hlonipha Amanzi workshops with 14 813 participants – Water By-laws awareness campaigning – 5 workshops, 12 shopping mall promotions, Industry and commerce interventions What has been done? (cont) background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

8. Budget & Expenditure background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

9. Budget & Expenditure background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

10. Budget & Expenditure background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

11. To answer the question one needs to do an assessment of water savings and growth projections

12. Savings Realised Impact of the Strategy depends on: 1.The actual savings realised through the Strategy Including abating demand growth 2.Unconstrained growth in water demand What demand would have been if we have done background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

13. Savings Realised background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

14. Demand Projections background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

15. Demand Projections Impact of WC/WDMYear new supply augmentation will be needed LWRHWR No WC/WDM20162008 Sustaining efficiency from restrictions 20202013 10 yr WC/WDM Strategy20512026 WC/WDM Strategy Table 10-6 background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

16. Demand Projections background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

17. Demand Projections background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

18. Achievement of Targets background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward GoalTargetActual (2008/9) Implementation ANRW<15% by 201025.37% BWastage < 2% of demandCannot measure EDemand growth < 1% Average annual demand growth for v 3 yrs is 2.98% For 2009/10 – 1.65% Action Plan C Ongoing effective management systems and implementation of IWRP Qualitative D Adoption of strategy as key deliverable for CCT Qualitative

19. Achievement of Targets: Goal A-NRW background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

20. Achievement of Targets: Goal A-NRW background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward Year Bulk NRWReticulation NRWOverall NRW As % of bulk water treated 2006/73.59%15.77%19.36% 2007/87.58%12.64%20.22% 2008/96.89%16.42%23.30% 2009/108.19%17.17%25.37%

21. IWA Balance 2009/10: Units Ml/day System Volume Input 907.02 Ml/d Authorised Consumption 717.25 Ml/d Billed Authorised Consumption 676.92Ml/d Billed Metered 676.92 Ml/d Free Basic Water Potential Revenue Water 552.02 Recovered Revenue Billed Unmetered 0 Ml/d Non-Payment Unbilled Authorised Consumption 40.33 Ml/d Unbilled metered 7.98 Ml/d Non-Revenue Water 230.1 Ml/d Unbilled unmetered 32.44Ml/d Water Losses 189.78 Ml/d Apparent Losses 83.84 Ml/d Unauthorised consumption 9.59 Ml/d Customer Meter Inaccuracies 74.25 Ml/d Real Losses 105.94 Ml/d Leakage on mains Leakage on storage tanks Leakage on service conn.

22. Achievement of Targets: Goal A-NRW background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

23. Achievement of Targets: Goal B-Wastage background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward Reducing wastage to less than 2% of demand No data to measure savings…

24. Achievement of Targets: Goal E-Reducing Growth Rate background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

25. Achievement of Targets: Goals C & D background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward Qualitative targets requiring a qualitative assessment

26. Achievement of Targets background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward Most significant findings: Population growth rate used might be too low (1.61% (CCT) vs. 3.49% (StatsSA) Use of uniform cost for unit leakage can be improved

27. Achievement of Targets background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward

28. Conclusion background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward CCT has done what the Strategy said and more in the past three years and needs to continue with similar monitoring and evaluation processes. As expected significant savings have realised and projects and actions re WC/WDM need to continue with even more resources committed. Concern identified– demand growth still higher than expected 2 questions that need answers:

29. Conclusion background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward “Yes”, on the savings that have been verified and “possibly” on savings yet to be verified

30. Conclusion background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward “YES” if the strategy is re-aligned and even more support is given to achieve this

31. Way Forward – 5 Steps background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward STEP 1:Accuracy of bulk meters needs to be verified and confidence intervals given STEP 2:Report NRW according to IWA Water Balance. Improve accuracy of estimated components of the IWA water balance STEP 3: Understand why the growth rate in potable water demand so much higher than expected. Define (and quantify if possible) parameters influencing demand growth.

32. Way Forward – 5 Steps background Progress Summary Budget & Expenditure Savings Realised Demand Projections Targets Achieved Conclusion Way Forward STEP 4:Revise projected growth demand and re- align strategy targeted savings. Involves extensive resource planning. Do cost-benefit model that answers augmentation planning objectives optimising cost-benefit options. Revise the current method of unit demand reduction for unit cost. STEP 5:Establish annual independent monitoring and assessment of strategy target achievements, and align it with the DWA toolkit

33. THANK YOU! ANY QUESTIONS?