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NAMWATER: BUILDING RELATIONS WITH CUSTOMERS Dr. Vaino P. Shivute CEO – Namibia Water Corporation 21 July 2011.

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Presentation on theme: "NAMWATER: BUILDING RELATIONS WITH CUSTOMERS Dr. Vaino P. Shivute CEO – Namibia Water Corporation 21 July 2011."— Presentation transcript:

1 NAMWATER: BUILDING RELATIONS WITH CUSTOMERS Dr. Vaino P. Shivute CEO – Namibia Water Corporation 21 July 2011

2 WATER SUPPLY IN NAMIBIA Water Supply and Sanitation Access to potable water: Urban98% Rural94% Access to sanitation: National 34%

3 WATER SUPPLY IN NAMIBIA Water Resources Border rivers Dams on ephemeral rivers Groundwater Seawater desalination Water recycling

4 COMPOSITION OF POTABLE WATER SUPPLY

5 Ministries Abstraction Purification Bulk Distribution Local Authority Commercial Enterprises Small customers End Users WATER SERVICES : SUPPLY CHAIN

6 WATER SUPPLY IN NAMIBIA Evaporation Annual gross evaporation ranges from mm in the north east to mm in the central southern area. Evaporation is highest in areas with..the lowest rainfall. Evaporation is highest for the months October and December. Dams in Namibia can lose between..20% and 65% of their water through..evaporation within one season.

7 WATER SUPPLY IN NAMIBIA Hydrological Cycle in Namibia

8 ESTABLISHMENT OF NAMWATER Act of Parliament, Act 12 of Registered as company on 9 Dec Supply water in bulk to bulk customers. Government is the SOLE shareholder, represented by a Board of Directors.

9 NAMWATER BOARD OF DIRECTORS Mr. A. Nehemia (Chairperson) 10 permanent & 6 alternate Board Members

10 MANAGEMENT STRUCTUTRE Dr Vaino Shivute CEO Dr Kuiri Tjipangandjara General Manager: Engineering &Scientific Services Mr. Welbert Ockhuizen General Manager Corporate Services Mr. Luther Rukira General Manager Water Supply Mr. Cornwell Chadya General Manager Finance

11 OUR MISSION We shall provide quality water and related services to the satisfaction of all stakeholders, taking cognizance of the environment, scarcity of and dependency of all on water.

12 OUR VISION We shall be a company of excellence in the water industry.

13 OUR VALUES In pursuing our vision we will always value the following principles: Growth, Integrity, Accountability, Human Dignity, Service & Quality, Value Adding Orientation.

14 OBJECTIVES OF THE CORPORATION I PRIMARY BUSINESS: Supply bulk water to customers in: Sufficient quantities, Quality suitable for customers purpose, Cost-effective, Environmentally sound & sustainable means.

15 OBJECTIVES OF THE CORPORATION II SECONDARY BUSINESS: Render water-related services, Supply facilities, Grant rights to customers upon their request.

16 Major Bulk Water Schemes Central North Bulk Water Scheme Central Area of Namibia Bulk Water Scheme Central Namib Area Bulk Water Scheme WATER SUPPLY IN NAMIBIA

17 Central North Bulk Water Scheme OshanaOshana Ohangwena Oshikoto Central North Water Supply Area Omusati

18 WATER SUPPLY IN NAMIBIA Central North Bulk Water Scheme (contd) Angola Namibia N

19 WATER SUPPLY IN NAMIBIA Central Area Bulk Water Scheme Second largest water scheme in Namibia Supplies about 25% of Namibias population Sources: 3 Dams – 20 Mm 3 /a Groundwater – Mm 3 /a 1 Reclamation plant – 5.25 Mm 3 /a

20 WATER SUPPLY IN NAMIBIA Central Namib Area Bulk Water Scheme Third largest water scheme in Namibia Supplies about 6% of Namibias.population Sources: Groundwater – 12 million m 3 /a Desalination plant – million m 3 /a (by 2014) Desalination Plant

21 COST FACTOR-COST RECOVERY I Government provided a subsidy to NamWater during its the first three years of operations. The Act requires that water be supplied on a cost recovery basis. Service of supplying water is a very COSTLY EXERCISE.

22 COST FACTOR-INFRASTRUCTURE II Infrastructure such as dams, water pipes, reservoirs, purification plants are expensive to build, and to maintain. Money spent on water schemes & related projects should be recovered fully. Return on those investments should allow the company to invest further in water infrastructure.

23 COST FACTOR-CHEMICALS & TARIFFS Millions of dollars is spent on the treatment & purification of water. Cost of water is built into tariffs that should be adjusted each year so that costs are recovered fully. The tariff includes depreciation, operating costs plus a return on investments.

24 AFFORDABILITY OF WATER Recognize that there are people who are not in position to pay for water. Cabinet decided to task relevant ministries to look at subsidy scheme for pool in urban and rural areas. Social responsibility to look after poor is mainly the responsibility of government.

25 CHALLENGES Financial sustainability. Ageing infrastructure. Limited product portfolio. Declining/ stagnant water demand. Managing debtors. Alternative source of bulk water.

26 RELATIONSHIP WITH CUSTOMERS Want to maintain good relationship. Want to give excellent service. Despite floods no water interruption. Excellent quality of water. Expect payment in full & on time. Consult with NW if there are problems. Realise that Government has purpose when it does not grant tariffs to NW.

27 RELATIONSHIP WITH CUSTOMERS contd… The purpose is for end users to benefit from low tariffs. NW not granted tariffs for 3 years. But, some Town Councils increased tariffs. These are much higher than NW tariffs. Blame is put on NamWater. This is not good for the maintenance of relationship.

28 CONCLUSION-I NamWater is the major supplier of water in the country. It is our intention to improve our service delivery. The service of delivering water is very costly. Maintenance, new infrastructure, purifying, pumping etc) Water is essential for development. It is our intention to supply water in the most effective and cost efficient way to our customers.

29 CONCLUSION-II Our aim is to ensure a reliable and sustainable water supply in Namibia. Join us on this exciting yet challenging path. Want co-operation with our customers to realise our mission.

30 Thank you!


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