Annual Report 2007/08. Presentation to the Parliamentary Portfolio Committee on Water and Environmental Affairs

Transcription

1 Annual Report 2007/08 Presentation to the Parliamentary Portfolio Committee on Water and Environmental Affairs RN Mlonzi - Chairperson C Step - Acting Chief Executive 7 July 2009

2 Our Mandate Amatola Water exists to render water services to water sector institutions, local government authorities and to other customers as defined in the legislation and water service policies of South Africa Our Vision To be the service provider of choice for the water sector in the Eastern Cape, delivering a full range of water services to improve the quality of people s lives.

3 Board of Amatola Water Ms R. N. Mlonzi Chairperson Prof. P.N. Luswazi Dr. L. Louw Cllr M. Koyo Dr. N. Muller Mr S. Bruce Cllr S. Somyo Mr. M. Sirenya Ms P.M. Kubukeli Cllr M. Matika Mr. V. Fongoqa CEO

4 Operational Background State owned water utility established in November 1997 Operational since 1998 as a Water Board Designated area of operation = sq.km Area includes Buffalo City Municipality, Amathole District Municipality, portions of Chris Hani District Municipality, Ukhahlamba and Cacadu District Municipalities Head Office located in Vincent, East London Production capacity of Mega-liters potable water per day. (Buffalo City Municipality = 72.1 Mega-liters per day and Amathole District Municipality = 21.9 Megaliters per day) Secondary services offered to support Water Services Authorities (WSA s) and Water Services Providers (WSP s)

5 Chairperson s Review The year under review marks 10 years of operation of Amatola Water Continuous growth in total volumes supplied together with sustained annual growth across secondary business Production and network losses reduced to the 4.99% and 5.37% respectively Potable water quality achieve at 99.26% as per SANS 241 Institutional reform remains a challenge as stronger role player commitment is needed Transfer of infrastructure from DWAF remains outstanding Technical skills shortages has prompted Amatola Water to increase the operator training programme within the province Development of the Institutional Realignment Support Proposal to assist DWAF Eastern Cape

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7 Management as at 30 June 2008 Amatola Water managed by CEO and 4 Divisional Directors Divisions: Operations, Planning and Development, Corporate Services and Finance Mr. M. Sirenya CEO Mr X. Bomela Mr. C. Thompson Ms F. Govender Mr.C. Step Director: Operations Director: Planning & Development Director: Corporate Services Director: Finance

8 CEO s Review Business has increased significantly geographically Balanced management team and divisional structures allowing for rapid response to any sphere of Government Strong relationship with DWAF National and growing with the regional office Amatola Water has embarked on a sustained drive to market itself with all local authorities in the Eastern Cape to address backlogs in water and sanitation provision Co-operation exits with regional Departments such as Education and Public Works This co-operation extends to the learning institutions of region such as Walter Sisulu, Fort Hare, Rhodes and Nelson Mandela Universities

9 Performance Measurement Objective 1 - Support National, Provincial and Local Government Imperatives Commitment to all spheres of Government Backlog eradication programmes with BCM, OR Tambo and ADM Rural School sanitations programmes with Dept of Education Police Station and Prison water and sanitation provision with Dept Public Works Dam Management with DWAF Updating and or reviewing a number of WSDP s Objective 2 - Promote and Influence Institutional Reform Active member of provincial steering committee and task team Draft regional reform study has noted Amatola Water s all round performance and ability to form the core of a future regional entity

10 Performance Measurement Objective 3 - Become a Preferred Employer 3.9% of payroll spent on training and development of employees 32% of posts filled by internal candidates Avoidable staff turnover at 5.9%, less than target set of 7.5% Learnership Programme: Water Purification 14 out of 15 employed full time with additional 25 entering the programme Objective 4 Enhance Organizational Efficiency 2.4% variance recorded against operating budget Tariff increase 1.4% below CPIX Employee costs 32.5% of total costs Potable water SANS 241 Class 1 achieved 99.34% Capital programme spend R 23M ver budget of R 19M

11 Audit Report

12 Audit Report

13 Audit Report

14 Financial Analysis

15 Financial Analysis Note 2: Revenue comprises Raw Water Sales R 7.2 million R 6.8 million Treated Water Sales R million R 92.7 million Management Fees R 79.6 million 7.2 million

16 The end