2007/08 ANNUAL REPORTS PRESENTATION L MOTLHODI ACTING CHIEF EXECUTIVE

Transcription

1 1 2007/08 ANNUAL REPORTS PRESENTATION L MOTLHODI ACTING CHIEF EXECUTIVE WATER AND ENVIRONMENTAL AFFAIRS PARLIAMENTARY PORTFOLIO COMMITTEE 08 JULY 2009

2 Table of Contents 2 Perspective of Magalies Water Key Strategic Objectives Alignment to DWEA Area of Supply Magalies Water Services Bulk Water Plants Wastewater Treatment Plants & Retail Services Municipal Areas Strategic Challenges Achievements

3 Table of Contents Cont 3 Audit Report Budget Sales Vs Actual Water Sales Financial Performance Financial Performance & Position Corporate Social Investment

4 Perspective of Magalies Water Vision To be the leading provider of quality water services Mission Statement Magalies Water shall, pursue and attain its vision by: Optimising operational resources and technologies Influencing and contributing to healthy water resources Ensuring staff equity, competence and capability Complying with relevant legislation, standards and guidelines Building customer and community capacity and relationships

5 Key Strategic Objectives Ensure the availability and supply of sustainable water services(water & Sanitation) Contribute to sustainable and equitable access to basic water and sanitation services to Water Services Authorities (WSAs) Contribute to the extension of the supply of water services to unserviced areas Foster strong relationships and collaboration with all Magalies Water s stakeholders

6 Alignment to DWEA Implementation of Drought Relief and Infrastructure Refurbishment Projects Eradication of Sanitation backlogs and other Millennium Development Goals (MDG) Twinning Agreement with Nkana Water in Zambia

7 Area of supply Supply area covers an area of operation to square kilometers Area of operation spans over four provinces being, North West, Gauteng, Limpopo and Mpumalanga Two major catchments are the Crocodile and the Olifants.

8 8 5.Water Board Supply Area Operational area covers km² through two major catchments namely the Crocodile and Olifants. The Board operates across four provincial areas of North West, Limpopo, Mpumalanga and Gauteng.

9 Area of supply Western region Eastern region

10 Magalies Water Services Traditional Core Services (bulk) Abstraction Purification Storage Distribution Scientific Services Sanitation Non core services (Value Added Services) Implementing agent of projects on behalf of the DWEA for rural water supply Catchment management services Water services in joint venture with WSA Water conservation functions Pollution control and abatement Operation and Maintenance

11 Bulk Water Plants Name Capacity (Ml/day) Technology Vaalkop 1,2 & DAF, Sedimentation, RGS, Chloramination, Ozone Klipdrift 18 DAF, RGS, Chlorination Wallmannsthal 12 DAF, RGS, Chlorination Cullinan 14 Sedimentation, RGS, Chlorination DAF- Dissolved Air Flotation RGS-Rapid Gravity Sand Filters

12 WasteWater Treatment Plants & Retail Services Name Capacity (Ml/day) Technology Rustenburg 1,2 & 3 42 Activated Sludge & Biofilter Boitekong 8 Activated Sludge Monnakato 2 Oxidation Ponds Lethabong 2 Activated Sludge Bospooort 12 DAF, GAC, RGS, Chloramination Temba (Retail Plant) 60 DAF, Sedimentation, RGS, UV, Chlorination Roodeplaat 60 DAF, Sedimentation, RGS, UV, Chlorination

13 Municipal Areas of Supply (Bulk Water Services) Municipality Province Modimolle Local Municipality (MoLM) Limpopo Nokeng Tsa Taemane Local Municipality (NTTLM) Mpumalanga Thabazimbi Local Municipality (TLM) Limpopo Moses Kotane Local Municipality (MKLM) North West Rustenburg Local Municipality (RLM) Bela Bela Local Municipality (BBLM) City of Tshwane Metro Municipality (CTMM) North West Limpopo Gauteng

14 Municipal Areas of Supply Conti Municipality Nature of Service Madibeng Local Municipality Maintenance Moretele Local Municipality (NTTLM) Maintenance Rustenburg Local Municipality Operations of sewage treatment plants City of Tshwane Metro Municipality Greater Hammanskraal City of Tshwane Metro Municipality Temba/Roodeplat Provision of retail water services to consumers Operations and maintenance of plants

15 Strategic Challenges Challenge Current Intervention Insufficient Raw Water Resources-Delay by DWEA to issue Raw Water licences Deteriorating Raw Water Quality-poor monitoring by DWEA Excessive water demand-lack of consultation by Municipalities Scarcity of skill-especially in the Artisan stream Continous engagement with the Department-DWEA Catchment Quality Monitoring Engagements with Water Service Authorities Retention Strategy and internal training Erratic Electricity supply Engagement with ESKOM in vulnerable areas Ageing Infrastructure Asset Management and re-investment in Infrastructure

16 Strategic Challenges Conti Challenge Reluctance by Municipalities to sign long-term contracts Emerging competition in implementation of Regional Water Schemes Macro Area Planning (IDP, SDF & WSDP) Current Intervention Revisiting the Communication Strategy and other business imperatives Adhere to our mandate as the Water Services Provider Feasibility Studies on Identified Projects Continuous engagement with municipalities IDP : Integrated Development Plan SDF: Spatial Development Framework WSDP: Water Services Development Plan

17 Achievements 99,6% SANS 241 Class 1 and 100% SANS 241 Class 2 Quality Standards Disabling Injury Frequency Rate of 1.5% recorded as opposed to 6.9% in 06/07 Safety awareness and rigorous training on safety & Health Provision of quality water despite deteriorating raw water quality Salination: Increasing salt content in water Eutrophication: Increasing nutrients in water that result in algal bloom Installed new processes such ozonation and GAC filtration Contracts on water and wastewater purification plants for operations and maintenance Retained the ISO accreditation

18 Achievements Conti Participated in the Water & Energy Sectoral Education and Training Authority (SETA) Implemented HIV/AIDS Awareness Programme Implemented Internship and Bursary Programmes Implemented the Employee Assistance Programme (EAP) Extension of the Retail Services contract Improved Cost Recovery Rate Completion of Drought Relief (DR)and Refurbishment programmes Drought Relief Moretele : Ruigtesloot Water Supply Augmentation Scheme (Extended supply from Lobotloane) Drought Relief Madibeng: Jonathan Reverse Osmosis Plant to reduce the flouride content of water Refurbishment - Moretele: Bring back the infrastructure to acceptable working conditions Refurbishment Rustenburg Local Municipality : Internal reticulation, repairing valves and leaks as well as replacing manhole covers.

19 Achievements Conti Appointment on industrial effluent monitoring Appointment on operations and maintenance at previously un-serviced area Sanitation Initiatives Education Campaigns to educate people on personal hygiene, household hygiene, community hygiene and environmental hygiene - Allow schools to visit the wastewater purification plants - Identification of sanitation needs with municipalities Intercept the cycle of poverty, lack of proper knowledge and lost income due to illness and national cost of lost productivity results in high curative costs Attracted new clients on Water Quality Monitoring Passed the technical audit on plants operated on behalf of the Water Services Authorities Successful implementation and completion of minor and Major Capital projects

20 Achievements Conti Training of 58% of the total staff complement on; On-the job skills development programmes University studies Transformation More than 80% of the employees are from the designated groups Robust Procurement Policy that promotes the objectives of BBBEE And national cost of lost productivity results in high curative costs Governance Public Finance Management Act King 2 for good corporate governance

21 Audit Report 2007/08 financial year Unqualified Audit opinion expressed for the 2007/08 financial year No other matters were reported (Pg 76) Qualifications raised for the 2006/07 financial year there is no policy in place for provision of doubtful debtors there were no reconciliations and systems in place to identify pre-paid expenditure Validity of significant expenses on RDP could not be verified as no contracts could be obtained A policy has since been developed and the provisions of the policy were applied for the 2007/08 financial year Creditors reconciliations are performed on a monthly basis and a system has been put in place to ensure completeness of Creditors It has been ensured that for the new RDP programmes, contracts are being entered into with Consultants and Contractors to comply with the procurement policy of Magalies Water

22 Budget vs Actual Water Sales

23 Financial Performance and Position Financial performance and position reflect the business of Magalies Water that will continue as a going concern Increased demand led to volumes increase that translated into increased sales Net surplus increased Current Ratio decreased Impaired debtors for Moses Kotane Local Municipality Accounts Receivables also decreased Capacity added with repayment in debt and increased asset base Net Asset Value reached R1billion

24 Financial Performance Financial Performance 2007/ / /06 Actual Actual Actual Volumes of water sold kl kl kl Sales Investment Income Net Profit Gross Margin 44.05% 45.71% 47.73%

25 Financial Position Financial Position 2007/ / /06 Actual Actual Actual Property, Plant and Equipment (Cost less Depreciation) Investments Long Term Liabilities Current Ratio Acid test / Quick ratio

26 Corporate Social Investments (CSI) Committed R10 million for Corporate Social Investment to Local Municipalities projects Provision of boreholes to 100 rural schools in order to increase access to basic water supply On going Campaigns on Hygiene education and the Water Wise Use in 100 schools within our area of supply by 2013

27 Questions? I Thank You