1. Rand Water Parliamentary Portfolio Committee Water Affairs & Forestry
Presentation of Annual Report

2. Snapshot Revenue - R4,119 bn (R3,672 bn~2006)
Total Assets - R 6,257 bn (R5,387 bn~2006)
All Rand Water financial reports are unqualified
Staff Employed
Corporate ISO 9001:2000 accredited
All plants ISO accredited

3. Rand Water Geographical Footprint
Consumers million Supply Area km2 Total Pipeline Length km Total Number of Reservoirs - 54

4. Performance Highlights
Profit
Revenue
Cash generated from operations
Sales volume
25.3%
12.2%
17.8%
2.7%

5. Performance Highlights
Customer Satisfaction Index: 76% 76%
Training spend (as % of Total Payroll) 7% 7%
Employment equity at management level 75% 64%
BEE spend % 60%

6. 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 R
Special needs institutions
Training equipment R
People with Disabilities
Resource provision R
Women Empowerment
Shelter provision R
Care of the Elderly
Support to institutions R
Partnerships
Partnering with organisations R
Health
Grants to organizations R

7. 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 4
PDI Suppliers 52
Total
100

8. Corporate Social Involvement
This is water related activities in partnership with different stakeholders
Project Description
Area
Project Value
Funder
Water pipeline Reinforcement
Winterveldt R CT
Winterveldt Sanitation R
Emfuleni Leaks Repairs
Bekkersdal R
Emfuleni, RWF
Tshwane- Leaks Repairs
Mamelodi R
CT, RWF
DACEL-Alien Plant Removal
Elandsfontein R
GDACE
Mogale City R
KZN Donga Rehabilitation
Bergville R
DEAT
HIV/Aids Mainstreaming
National R
DWAF
Water Sector Monitoring R
Bushbuckridge Water Supply
Kumani Village
BBR
Rand Water Golden Gate
Freestate R RW
Siluma Wetland
Gauteng R
RWF
Blesbokspruit
Nigel R
Sri Lanka Water Service Support
Sri Lanka R
TOTAL R

9. 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

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

12. Allocation 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

13. 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

14. 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.

15. 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

16. 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.

17. Water Quality
Full adherence to SANS 0241 (based on a WHO standards)

18. Water Quality - Cont

19. Fit with overall DWAF Strategy
Emfuleni Sanitation
Delmas involvement
Western Highveld Involvement

20. Challenges : Sanitation & Environmental Pressures
85 per cent of local municipalities within Rand Water’s catchment area have challenges with meeting DWAF’s effluent management standards
This increases Rand Water’s purification cost
This ultimately places greater pressure on Rand Water’s tariff increments
One solution is to roll out the Emfuleni Regional Sanitation Scheme