1. “sustaining the source and flow of life forever” ESENTATION TO THE PORTFOLIO COMMITTEE DELEGATION PRESENTATION TO THE PORTFOLIO COMMITTEE PRESENTATION TO THE PORTFOLIO COMMITTEE2004/2005 24 MARCH 2006

2. AGENDA 1.Introduction 2.Sedibeng Water Performance 2.1Financial Perspective 2.2 Internal/Business Processes Perspective 2.2 Internal/Business Processes Perspective 2.3 Customer/Stakeholder Perspective 2.3 Customer/Stakeholder Perspective 2.4Human Capital Perspective 2.4Human Capital Perspective 3.Challenges 4.Mitigating Factors and Way Forward

3. 1. Introduction  Sedibeng Water’s long term strategies for sustainability are embedded in the Annual Report and Shareholders Compact  The organisation has an organisational performance management system cemented on the following balanced score card persperctives: - Financial

4. Introduction Contd. -Internal Business Processes - Customer / Stakeholder and -Human Capital

5. Introduction Contd. These pillars have measurable key performance indicators that are reviewed on a quarterly basis. This ensures that the performance of the organisation strategic objectives are measured and realigned

6. 2.Sedibeng Water Performance 2.1 Financial Perspective Budget and Cost Management  Achieved a 20% cost savings Revenue Management  Decline by 7% due to water demand reduction and unpaid equitable shares

7. 2.Sedibeng Water Performance Contd. Net Surplus  R13.8 million compared with R10.7 Millions in the Free State in the previous year Audits  Unqualified audits for Free State and Qwa-Qwa

8. 2. Sedibeng Water Performance contd. Maintenance Expenditure  An expenditure of 1% more than budget Proactive/Planned Maintenance Unplanned/Reactive Maintenance Capex  An amount of R14. 2million was spent

9. 2. Sedibeng Water Performance contd. 2.2 Internal/Business Processes Perspective Operational Performance  Process efficiency savings of R1.5 million  Water quality maintained at Class 1 except of periodic colour, iron and management concentrations.

10. 2. Sedibeng Water Performance contd.  Water quality can be improved to meet class 1 standards 95% of the time but the cost implication will be enormous to be transferred to consumers  SANAS accredited laboratory

11. 2. Sedibeng Water Performance contd. Commercial Equity  Average BEE expenditure is 55%, and  Targets are measured quarterly

12. 2. Sedibeng Water Performance contd.  Negotiation with suppliers -Price increase -Price increase -Encourage establishment of and joint ventures with BEE companies -Encourage establishment of and joint ventures with BEE companies

13. 2. Sedibeng Water Performance contd. Market Development  Signed 5 strategic support management contracts in Siyanda District  Seconded staff to Phumelela Municipality under Project Consolidate

14. 2. Sedibeng Water Performance contd. 2.3 Customer/Stakeholder Perspective Customer Satisfaction  Interaction with Ward Committees  Improved responsive time and reduction of interruptions  Reduction of complaints  Improved performance in line with SLA

15. 2. Sedibeng Water Performance contd.  Monthly coordinating committee meetings  Customer satisfaction monitoring system (KPIs in place)

16. 2. Sedibeng Water Performance contd. Corporate Social Investment  Invested approximately R1.5 million  The programme concentrated on - Food parcels provisioning at Kestell and Intabazwe in Qwa Qwa - Donations to schools - Donations to orphanage -Learnership

17. 2. Sedibeng Water Performance contd. 2.4 Human Resources Perspective Training ABETABET LearnershipLearnership BursariesBursaries ExperientialExperiential Expenditure, 40% more than budgetExpenditure, 40% more than budget Leadership, management, finance etc.Leadership, management, finance etc.

18. 2. Sedibeng Water Performance contd. Safety  Disabling Injury Frequency rate averaged 0.5 compared with 1.1 last year  All regions received 5 star NOSA ratings Health Monitoring water quality at provincial level (FS and NC)Monitoring water quality at provincial level (FS and NC)

19. 2. Sedibeng Water Performance contd. Assist in water and waste water testing and analysis under Project ConsolidateAssist in water and waste water testing and analysis under Project Consolidate HIV/AIDS awareness campaign and provision of ART from March 2005HIV/AIDS awareness campaign and provision of ART from March 2005Environment Monitoring discharges into wet streamMonitoring discharges into wet stream

20. 3. Challenges Payment of subsidies and equitable shares by Water Services AuthoritiesPayment of subsidies and equitable shares by Water Services Authorities Acknowledgement of the role of Sedibeng Water as a public entity in water service deliveryAcknowledgement of the role of Sedibeng Water as a public entity in water service delivery Section 78 ProcessesSection 78 Processes Regionalisation of Water BoardsRegionalisation of Water Boards

21. 4. Mitigating Factors And Way Forward Improving plant efficienciesImproving plant efficiencies Increasing area of serviceIncreasing area of service Training and developmentTraining and development