PARLIAMENTARY PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS. Bulk Water Tariffs. 30th June 2009
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1 PARLIAMENTARY PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS Bulk Water Tariffs 30th June 2009
2 Contents Establishment and Area of supply Goals and Objectives Bulk Water Tariffs Tariff Consultations Tariff Increments Ministerial Directive Infrastructure Rollout Plan Recommendations Service deliver efficiency Location of Water Boards
3 Establishment and Area of Supply Establishment 1997 (12 yrs) 7 Board members (April 2010) Executive Mgt Chief Executive GM Operations and Maintenance Chief Finance Officer GM Corporate Services Internal Audit Manager
4 Area of Supply /Cont SCHEME NAME SOURCE CUSTOMER Phalaborwa Lepelle (Olifants) River Ø Ba-Phalaborwa Municipality. Ø Mines. Politsi Makgobaskloof Dam Ø Greater Letaba Municipality. Modjadji Modjadji Dam Ø Greater Letaba Municipality. Nkowankowa Letaba River Ø Tzaneen Municipality Ebenezer Ebenezer Dam Ø Tzaneen Municipality. Ø Polokwane Municipality Olifantspoort Lepelle (Olifants) River Ø Polokwane Municipality. Ø Capricorn District. Doorndraai Doorndraai Dam Ø Mokgalakwena Municipality. Flag Boshielo Flag Boshielo Dam Ø Greater Sekhukhune
5 Level of Employment-Service Areas Item Capricorn Mopani Waterberg Sekhukhune Economically Active Employment Unemployment 50.7% % 69.4%
6 Strategic Business Plan
7 Strategic objectives Organizational Development Research Development and Planning Sustainable, High Quality and Efficient Supply of Bulk Water and Water Services Ensure Financial Viability and Sustainability Effective Corporate Governance Effective Development and Maintenance of LNW s corporate image and stakeholder relations
8 Factors for tariff increases Increase in Raw Water Charges Increase in electricity costs Labour Costs Capital Investments >>Consumer Price Index ( 13.6%)
9 Bulk Water Tariff Consultations SALGA National Treasury Industrial Clients Water Service Authorities Mopani District Capricorn District Polokwane Municipality Greater Sekhukhune District Mogalakwena Municipality
10 Bulk water tariffs WATER 2007/ / / / / /12 SCHEME R/kl R/kl R/kl (Proposed) R/kl (Directive) R/kl R/kl Phalabora Foskor Phalabora Mining Sasol Nitro New Mining Co Phalaborwa Scheme (Potable) Ebenezer Politsi Olifantspoort Doorndraai Flag Boshielo Modjadji Average Tariff
11 Potable Bulk water tariffs Phalaborwa Ebenezer Politsi Olifantspoort Doorndraai Flag Boshielo Modjadji Average Tariff Average Tariff Increase 2008/ / / / / % 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
12 Industrial Bulk water tariffs
13 Service Delivery Challenges Bulk Ageing Infrastructure Exceeding abstraction Permits (high demands) Over laden treatment plant (upgrades) Deteriorating raw water quality Non payment of services by WSAs Reticulation Poor cost recovery and water demand management Ageing internal reticulation infrastructure Default on payment by consumers Lack of maintenance Unauthorised / illegal connections Insufficient Water Demand Management
14 Upgrading of the Filters at Ebenezer Treatment Plant LNW R R R 0.00 Infrastructure Rollout Plan Description Funder 2007/ / /10 Capital Projects 2007/08 Cathodic Protection Doorndraai and Ebenezer Pipelines LNW R R R Cathodic Protection Olifantspoort Pipeilines LNW R R R Bulk Pipeline Survey Phalaborwa LNW R R R Olifantspoort Upgrade to 60 Ml/d Phase 2 DWAF/Anglo R R R Supply and Installation of Generators at plants LNW R R R 0.00 Supply and Installation of Sewerage Package Plant at Politsi LNW R R R 0.00 Phalaborwa Refurbishment and Capital Projects LNW R R R 0.00 Greater Tubatse LM Refurbishment and Capital Projects LNW R R R0.00 Implementation of GSDM Rural Water and Sanitation Project Flanders/DWAF R R R 0.00 Refurbishment of GSDM Water and Sanitation Schemes LNW R R R
15 Rollout Plan. Description Period Amount Beneficiaries Upgrading of the Olifantspoort WTW and Pipeline Refurbishment 2007/ /10 R 92 m Upgrading of the Phalaborwa Scheme (Pipelines, Pumpstations) 2008/09 R 5 m Extension of the Flag Boshielo WTW 2009/10 R 15 m Extension of the Politsi WTW 2009/10 R 15 m Replacement of substandard lines in Politsi Bulk Network 2007/ /09 R 10.0 m Extension of the Doorndraai WT 2009/ /11 R 25 m Replacement of substandard lines in Flag Boshielo 2007/ /09 R 3.5 m Bulk Water pipeline to Burgersfort from Mooihoek Plant 2008/ /11 R 220m Upgrading of Burgersfort Wastewater Plant 2009/ /13 R 84m Upgrading of Steelpoort Wastewater Plant 2008/ /12 R 25m Upgrading Rural Schemes in GSDM 2008/ /10 R 10 m
16 Refurbishment of Bulk Pipeline Olifantspoort to Specon LNW R R R Roll out Plan.. Description Funder 2007/0 8 Capital Projects 2007/ / /10 Ebenezer Refurbishment and Capital Projects LNW R R R0.00 Bulk Pipelines Surveys (Own schemes) LNW R R R0.00 Flag Boshielo Refurbishment and Capital Projects LNW R R R0.00 Doorndraai Refurbishment and Capital Projects LNW R R R0.00 Olifantspoort Refurbishment and Capital Projects LNW R R R0.00 Nkowankowa Refurbishment and Capital Projects LNW R R R0.00 Politsi Refurbishment and Capital Projects LNW R R R0.00 Modjadji Refurbishment and Capital Projects LNW R R R0.00
17 Rollout Plan. SUB TOTAL R R R Description Funder 2008/ / /11 New Projects Bulk Infrastructre in Burgersfort Town LNW/TUBATSE Olifantspoort Replacement and Refurbishment of Bulk Meters LNW Doorndraai Replacement and Refurbishment of Bulk Meters LNW Ebenezer Replacement and Refurbishment of Bulk Meters LNW Phalaborwa Replacement and Refurbishment of Bulk Meters LNW Flag Boshielo Replacement and Refurbishment of Bulk Meters LNW Replacement and Refurbishmnet of Old Pipelines (Ebenezer) LNW Replacement and Refurbishmnet of Old Pipelines (Doorndraai) LNW Replacement and Refurbishment of Old Pipelines (Phalaborwa) LNW Refurbishment of Bulk Reservoirs (Doorndraai, Ebenezer, Olifantspoort, Politsi, Modjadji, GSDM) LNW
18 LNW Capital Infrastructure Plan
19 Service Delivery Efficiency Water Sector Reform Ageing Infrastructure Upgrading Raw water quality (Source compliant and what comes out of the tap should be compliant as well) Service Level Agreement Monitoring Capacity in Munics Raw Water licenses / permits vis a vis Increased demand for water Retention of technical skills capacity and Support intensity in WSAs.
20 THANK YOU
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