1. Click to edit Master subtitle style 5/10/10 NAMAKWA WATER BOARD ANNUAL REPORT 2009

2. 5/10/10  The area of responsibility includes the towns of Steinkopf, Okiep, Concordia, Carolusberg, Nababeep, Springbok and the mining community at the De Beers Namaqualand mines  The area of responsibility is in the arid north western part of the Northern Cape where the Orange River is the only sustainable source of water.  Pumping water from the Orange River is costly because of distance and elevation to be pumped  The area of responsibility includes the towns of Steinkopf, Okiep, Concordia, Carolusberg, Nababeep, Springbok and the mining community at the De Beers Namaqualand mines The area of responsibility is in the arid north western part of the Northern Cape where the Orange River is the only sustainable source of water. Pumping water from the Orange River is costly because of distance and elevation to be pumped

3. 5/10/10  Challenges : - Eskom tariffs. - Declining consumer base. - Aged and labour-intensive infrastructure. - Not a going concern.  Achievements : - Delivering water to our communities despite all the challenges facing the Board. - Contained costs notwithstanding Eskom tariff hikes.  Challenges : Eskom tariffs. Declining consumer base. Aged and labour-intensive infrastructure. Not a going concern. Achievements : Delivering water to our communities despite all the challenges facing the Board. Contained costs notwithstanding Eskom tariff hikes.

4. 5/10/10  Basis for Qualification The Namakwa Water Board incurred a net loss for the year ended 30 June 2009 of R15 064 61. The Board’s accumulated loss as at that date was R13 835 189. There exists significant doubt on the entity’s ability to continue as a going concern. Basis for Qualification The Namakwa Water Board incurred a net loss for the year ended 30 June 2009 of R15 064 61. The Board’s accumulated loss as at that date was R13 835 189. There exists significant doubt on the entity’s ability to continue as a going concern.

5. 5/10/10  Board made a loss of R 15 mil 2009 vs. loss of R 17 mil 2008  Debtors decreased by R 0.9 mil to R1,7mil  Creditors Increased by R0,4 mil to R 1.6mil  Current ratio 2009 1.37:1 2008 1.46:1  Debtors days 2009 59 Days 2008 98 Days  Debt coverage 2009 -2.9:1 2008 -3.6:1  Return on Assets 2009 -0.14:1 2008 -0.19:1  Board made a loss of R 15 mil 2009 vs. loss of R 17 mil 2008 Debtors decreased by R 0.9 mil to R1,7mil Creditors Increased by R0,4 mil to R 1.6mil Current ratio 2009 1.37:1 2008 1.46:1 Debtors days 2009 59 Days 2008 98 Days Debt coverage 2009 -2.9:1 2008 -3.6:1 Return on Assets 2009 -0.14:1 2008 -0.19:1

6. 5/10/10 NOTES2009 R 2008 R Revenue10 689 772.539 639 834.25 Other Income3800 134.9058 449.52 Administration Expenses(670 443.99)(362 961.47) Other Operational Expenses(24 595 068.09)(24 007 428.08) Financing Costs(1 289 005.90)(2 408 082.03) Loss before unusual items(15 064 610.55)(17 080 187.81) Donations Received4 268 688.00- Loss for the year(10 795 922.55)(17 080 187.81 FINANCIAL PERFORMANCE 2008/2009 INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009

7. 5/10/10 NOTES2009 R 2008 R ASSETS Non-Current Assets Property, Plant and Equipment 573 543 526.1682 919 280.16 Current Assets2 519 499.153 254 125.88 Stock on Hand6788 141.45- Fixed Investments77 209.54654 652.17 Trade and other Debtors81 724 148.162 599 473.71 Total Assets 76 063 025.3186 173 406.04 EQUITY AND LIABILITIES Funds and Reserves62 475 048.7673 270 971.31 Retained Income(13 835 189.12)(3 039 266.57) Non-Distributable Reserves Revaluation Reserve76 310 237.88 Total Liabilities13 587 976.5512 902 434.73 Non-Current Liabilities Long Term Loans911 744 991.4610 672 586.78 Current Liabilities1 842 985.092 229 847.95 Trade and other Creditors101 584 493.161 224 482.42 Bank Overdraft258 491.931 005 365.53 Total Equity and Liabilities 76 063 025.3186 173 406.04 STATEMENT OF FINANCIAL POSITION

8. 5/10/10 The strategic goals of the Board are: 1. To disestablish the Board in terms of section 28(d) of the Water Services Act 108 of 1997 and transfer all the assets and liabilities to a new entity, which could be either: - Nama Khoi Municipality (the Water Services Authority for the Region). - Another existing Water Board. 2. To secure short term financial assistance to pay suppliers (Eskom and other) and salaries. The strategic goals of the Board are: To disestablish the Board in terms of section 28(d) of the Water Services Act 108 of 1997 and transfer all the assets and liabilities to a new entity, which could be either: - Nama Khoi Municipality (the Water Services Authority for the Region). - Another existing Water Board. To secure short term financial assistance to pay suppliers (Eskom and other) and salaries.

9. 5/10/10  The Flocculation dosing pumps, Lime feeders and Chlorinators are all defective, which is directly impacting the quality of water and the health of operators.  Urgent replacement required of ±49km section of the main pipeline.  The Metering equipment needs to be replaced.  The communication and telemetric control between reservoirs and pump stations need to be replaced.  The housing for operators needs upgrading.  Vehicles for technical and repair personnel need to be replaced.  The Lifting equipment on the trucks need to be repaired.  Access roads need to be upgraded as the pipeline is not accessible for repairs.  The Flocculation dosing pumps, Lime feeders and Chlorinators are all defective, which is directly impacting the quality of water and the health of operators. Urgent replacement required of ±49km section of the main pipeline. The Metering equipment needs to be replaced. The communication and telemetric control between reservoirs and pump stations need to be replaced. The housing for operators needs upgrading. Vehicles for technical and repair personnel need to be replaced. The Lifting equipment on the trucks need to be repaired. Access roads need to be upgraded as the pipeline is not accessible for repairs.