Rand WaterRand Water
Parliamentary Portfolio CommitteeParliamentary Portfolio CommitteeWater Affairs & ForestryWater Affairs & Forestry
Presentation of Annual ReportPresentation of Annual Report
• Revenue - R4,119 bn (R3,672 bn~2006)Revenue - R4,119 bn (R3,672 bn~2006)
• Total Assets - R 6,257 bn (R5,387 bn~2006)Total Assets - R 6,257 bn (R5,387 bn~2006)
• All Rand Water financial reports are All Rand Water financial reports are unqualifiedunqualified • Staff Employed - 2900Staff Employed - 2900
• Corporate ISO 9001Corporate ISO 9001:2000:2000 accredited accredited
• All plants ISO 14001 accreditedAll plants ISO 14001 accredited
SnapshotSnapshot
Rand Water Geographical FootprintRand Water Geographical Footprint
ConsumersConsumers - 12 million- 12 millionSupply AreaSupply Area - 18 000 - 18 000 kmkm22
Total Pipeline LengthTotal Pipeline Length - 3 400 km- 3 400 kmTotal Number of ReservoirsTotal Number of Reservoirs - 54- 54
• ProfitProfit
• RevenueRevenue
• Cash generated from operationsCash generated from operations
• Sales volumeSales volume
Performance HighlightsPerformance Highlights
25.3%
12.2%
2.7%
17.8%
20072007 20062006
• Customer Satisfaction Index:Customer Satisfaction Index: 76%76% 76% 76%
• Training spend (as % of Total Payroll)Training spend (as % of Total Payroll) 7%7% 7% 7%
• Employment equity at management levelEmployment equity at management level 75%75% 64% 64%
• BEE spendBEE spend 64%64% 60% 60%
Performance HighlightsPerformance Highlights
Corporate Social InvolvementCorporate Social Involvement
• Water related and non-water relatedWater related and non-water related• The focus area and allocation of funds ( ~ Approx R2.5 m)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
Corporate Social InvolvementCorporate Social Involvement
• This is water related activities in partnership with This is water related activities in partnership with different stakeholdersdifferent 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
Corporate Social InvolvementCorporate Social Involvement
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
• This is water related activities in partnership with different stakeholdersThis is water related activities in partnership with different stakeholders
Energy Crisis ImpactEnergy Crisis Impact• Request by Eskom to cut usage by 10%Request by Eskom to cut usage by 10%
• Active engagement with Eskom:Active engagement with Eskom:• Cooperation but on our termsCooperation but on our terms• Water quality and reliability problemsWater quality and reliability problems
• Active/Dynamic pumping and reservoir management – to Active/Dynamic pumping and reservoir management – to encourage savingsencourage savings
• Essential services exemptionEssential services exemption
• Still finding ways of saving on electricity usage – energy Still finding ways of saving on electricity usage – energy efficiency programmeefficiency programme
CONSULTATIONCONSULTATION
• SALGASALGA::• Use of surplus to reduce tariffUse of surplus to reduce tariff• Supported Capital ProgrammeSupported Capital Programme• Value chain sustainabilityValue chain sustainability
• National TreasuryNational Treasury::• Inflation targetInflation target• Explore feasibility of further reductionExplore feasibility of further reduction
7.9%
5.6%
6.3%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2004 2005 2006 2007 2008 2009
Cost of Raw Water (Ex 1 April)
Rand Water Tariff (Ex 1 July)
CPIX
Allocation of surplus : Project OverviewAllocation of surplus : Project Overview
Forecast Cashflow
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
• Central to our operations - pipelinesCentral to our operations - pipelines
• Generally very old – mostly in excess of 80 yearsGenerally very old – mostly in excess of 80 years
• Significant amounts being spent on augmentation and Significant amounts being spent on augmentation and refurbishment to ensure operational sustainabilityrefurbishment to ensure operational sustainability
• Increased expenditure due to escalationIncreased expenditure due to escalation
• Reserves will be used to smooth the tariff and cater for Reserves will be used to smooth the tariff and cater for new schemesnew schemes
Allocation of surplusAllocation of surplus
• Additional water supply scheme due to development.Additional water supply scheme due to development.
• Planned programme of renovation to existing Planned programme of renovation to existing infrastructureinfrastructure
• Analyses of latest estimates of future water demand Analyses of latest estimates of future water demand growth patterns depending on development growth patterns depending on development statistics.statistics.
Projects plan - Process StepsProjects plan - Process Steps
Projects plan - Process StepsProjects plan - Process Steps
• Condition assessment of current Condition assessment of current infrastructure.infrastructure.
• Annual infrastructure recommendations Annual infrastructure recommendations combine :combine :
- extra capacity for 15 year demand growth- extra capacity for 15 year demand growth
- renovation to maintain existing capacity- renovation to maintain existing capacity
How are costs determinedHow are costs determined
• Estimates for these projects are done Estimates for these projects are done by escalating similar work already by escalating similar work already completed.completed.
• By enquiring from the market what By enquiring from the market what the current costs for the work are.the current costs for the work are.
Water QualityWater QualityFull adherence to SANS 0241 (based on a WHO standards)Full adherence to SANS 0241 (based on a WHO standards)
Water Quality - ContWater Quality - Cont
Fit with overall DWAF StrategyFit with overall DWAF Strategy
• Emfuleni SanitationEmfuleni Sanitation
• Delmas involvementDelmas involvement
• Western Highveld InvolvementWestern Highveld Involvement
Challenges : Sanitation & Environmental PressuresChallenges : Sanitation & Environmental Pressures
• 85 per cent of local municipalities within Rand 85 per cent of local municipalities within Rand Water’s catchment area have challenges with Water’s catchment area have challenges with meeting DWAF’s effluent management standardsmeeting DWAF’s effluent management standards
• This increases Rand Water’s purification costThis increases Rand Water’s purification cost
• This ultimately places greater pressure on Rand This ultimately places greater pressure on Rand Water’s tariff incrementsWater’s tariff increments
One solution is to roll out the Emfuleni Regional One solution is to roll out the Emfuleni Regional Sanitation SchemeSanitation Scheme
