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

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

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.

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

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 : :1  Debtors days Days Days  Debt coverage : :1  Return on Assets : :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 : :1 Debtors days Days Days Debt coverage : :1 Return on Assets : :1

5/10/10 NOTES2009 R 2008 R Revenue Other Income Administration Expenses( )( ) Other Operational Expenses( )( ) Financing Costs( )( ) Loss before unusual items( )( ) Donations Received Loss for the year( )( FINANCIAL PERFORMANCE 2008/2009 INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009

5/10/10 NOTES2009 R 2008 R ASSETS Non-Current Assets Property, Plant and Equipment Current Assets Stock on Hand Fixed Investments Trade and other Debtors Total Assets EQUITY AND LIABILITIES Funds and Reserves Retained Income( )( ) Non-Distributable Reserves Revaluation Reserve Total Liabilities Non-Current Liabilities Long Term Loans Current Liabilities Trade and other Creditors Bank Overdraft Total Equity and Liabilities STATEMENT OF FINANCIAL POSITION

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.

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.