Rand Water Parliamentary Portfolio Committee Water Affairs

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Rand WaterParliamentary Portfolio
CommitteeWater Affairs Forestry

• Presentation of Annual Report

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Snapshot

• Revenue - R4,119 bn (R3,672 bn2006)
• Total Assets - R 6,257 bn (R5,387 bn2006)
• All Rand Water financial reports are unqualified
• Staff Employed - 2900
• Corporate ISO 90012000 accredited
• All plants ISO 14001 accredited

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Rand Water Geographical Footprint
Consumers - 12 millionSupply Area - 18
000 km2Total Pipeline Length - 3 400 kmTotal
Number of Reservoirs - 54
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Performance Highlights
25.3

• Profit
• Revenue
• Cash generated from operations
• Sales volume

12.2
17.8
2.7
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Performance Highlights

• 2007 2006
• Customer Satisfaction Index 76 76
• Training spend (as of Total Payroll) 7 7
• Employment equity at management level 75 64
• BEE spend 64 60

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Corporate Social Involvement

• Water related and non-water related
• The focus area and allocation of funds ( Approx
  R2.5 m)

Focus Area Type of Support Spent
HIV/AIDS Home based care R780 000
Special needs institutions Training equipment R493 000
People with Disabilities Resource provision R335 000
Women Empowerment Shelter provision R304 000
Care of the Elderly Support to institutions R284 000
Partnerships Partnering with organisations R420 000
Health Grants to organizations R 80 000

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Corporate Social Involvement

• This is water related activities in partnership
  with different stakeholders

Summary of Job Creation and Local Supplier Support
Gender Jobs Created
Male 224 48
Female 267 52
Total 513 100
Project funds spent on local labour and suppliers
Items Funds Spent
Traditional Suppliers 468 000.00 4
PDI Suppliers 10 000 000.00 52
Total 10 468 000.00 100
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Corporate Social Involvement

• This is water related activities in partnership
  with different stakeholders

Project Description Area Project Value Funder
Water pipeline Reinforcement Winterveldt R 7 000 000 CT
Winterveldt Sanitation Winterveldt R 7 500 000 CT
Emfuleni Leaks Repairs Bekkersdal R 1 900 000 Emfuleni, RWF
Tshwane- Leaks Repairs Mamelodi R 1 500 000 CT, RWF
DACEL-Alien Plant Removal Elandsfontein R 1 665 000 GDACE
DACEL-Alien Plant Removal Mogale City R 1 485 000 GDACE
KZN Donga Rehabilitation Bergville R 4 825 000 DEAT
HIV/Aids Mainstreaming National R 1 754 000 DWAF
Water Sector Monitoring National R 7 200 000 DWAF
Bushbuckridge Water Supply Kumani Village R 1 900 000 BBR
Rand Water Golden Gate Freestate R 2 000 000 RW
Siluma Wetland Gauteng R 5 550 000 RWF
Blesbokspruit Nigel R 1 265 000 RWF
Sri Lanka Water Service Support Sri Lanka R 3 850 000 DWAF
TOTAL R46 383 000
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Energy Crisis Impact

• Request by Eskom to cut usage by 10
• Active engagement with Eskom
• Cooperation but on our terms
• Water quality and reliability problems
• Active/Dynamic pumping and reservoir management
  to encourage savings
• Essential services exemption
• Still finding ways of saving on electricity usage
  energy efficiency programme

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CONSULTATION

• SALGA
• Use of surplus to reduce tariff
• Supported Capital Programme
• Value chain sustainability
• National Treasury
• Inflation target
• Explore feasibility of further reduction

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Allocation of surplus Project Overview
Forecast Cashflow Forecast Cashflow Forecast Cashflow Forecast Cashflow Forecast Cashflow Forecast Cashflow Forecast Cashflow Forecast Cashflow
Significant Capital Projects Significant Capital Projects (R m) Jun-08 Jun-09 Jun-10 Jun-11 Jun-12
A Augment infrastructure 5720 420 439 395 470 529
B Renovation replacement 1370 148.6 271 344 323 310
C Total 7090 569 710 739 793 839
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Allocation of surplus

• Central to our operations - pipelines
• Generally very old mostly in excess of 80 years
• Significant amounts being spent on augmentation
  and refurbishment to ensure operational
  sustainability
• Increased expenditure due to escalation
• Reserves will be used to smooth the tariff and
  cater for new schemes

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Projects plan - Process Steps

• Additional water supply scheme due to
  development.
• Planned programme of renovation to existing
  infrastructure
• Analyses of latest estimates of future water
  demand growth patterns depending on development
  statistics.

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Projects plan - Process Steps

• Condition assessment of current infrastructure.
• Annual infrastructure recommendations combine
• - extra capacity for 15 year demand growth
• - renovation to maintain existing capacity

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How are costs determined

• Estimates for these projects are done by
  escalating similar work already completed.
• By enquiring from the market what the current
  costs for the work are.

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Water Quality

• Full adherence to SANS 0241 (based on a WHO
  standards)

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Water Quality - Cont
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Fit with overall DWAF Strategy

• Emfuleni Sanitation
• Delmas involvement
• Western Highveld Involvement

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Challenges Sanitation Environmental Pressures

• 85 per cent of local municipalities within Rand
  Waters catchment area have challenges with
  meeting DWAFs effluent management standards
• This increases Rand Waters purification cost
• This ultimately places greater pressure on Rand
  Waters tariff increments

One solution is to roll out the Emfuleni Regional
Sanitation Scheme