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PRESENTATION TO THE WATER AND FORESTRY PARLIAMENTARY PORTFOLIO COMMITTEE

PRESENTATION TO THE WATER AND FORESTRY PARLIAMENTARY PORTFOLIO COMMITTEE. 07 MAY 2008 SJ SEKGOBELA CHIEF EXECUTIVE OFFICER. ABOUT MAGALIES WATER.

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PRESENTATION TO THE WATER AND FORESTRY PARLIAMENTARY PORTFOLIO COMMITTEE

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  1. PRESENTATION TO THE WATER AND FORESTRY PARLIAMENTARY PORTFOLIO COMMITTEE 07 MAY 2008 SJ SEKGOBELA CHIEF EXECUTIVE OFFICER

  2. ABOUT MAGALIES WATER • Magalies Water is a state owned entity (SOE) established in 1969 in terms of the original mandate issued under the Water Act of 1956 and later the Water Services Act 108 of 1997. • The Board operates in four provincial areas of North West, Limpopo, Mpumalanga and Gauteng. • The Board is managed from its headquarters based in Rustenburg, North West Province. • The Board currently serves a number wide range of stakeholders, mines, municipalities etc. • On average the Board processes and distributes approximately 400 Ml/d of bulk potable water and approximately 50 Ml/d of bulk sanitation to serve about 1.5 million consumers and end users.

  3. 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

  4. HEAD OFFICE Physical Address: 38 Heystek Street Rustenburg [PMG note : photo’s have been removed]

  5. Area of supply Eastern region Western region

  6. Area of Operation • The operational area covers 34 000 km²through abstraction from two major catchments namely the Crocodile and Olifants. • The Board operates in four provincial areas of North West, Limpopo, Mpumalanga and Gauteng.

  7. Governance • Board appointed by Minister provides strategic leadership. • Responsibilities fulfilled in terms good governance. • Board meeting attendance of 80%. • Board support intellectual contributions to SAAWU.

  8. Achievements & highlights • Appointment and management of bulk water and sanitation plants on behalf of municipalities. • Successful implement of the refurbishment programmes of Vaalkop, Rustenburg and Roodeplat water supply schemes to an amount of R800m. • Implementation of internship and bursary programmes. • Implementation of Employee Assistance Programmes. • Completion of drought relief programmes on behalf of Municipalities. • All long-term loans redeemed. • Continue operating as a sustainable entity. • Preferred service provider-R760m project with existing and new mines in the Rustenburg area. • Potential for further growth as Rustenburg is one of the fastest growing cities.

  9. CORPORATE STRUCTURETOTAL STAFF COMPLEMENT: 349

  10. Management, training and support services Catchment management services Water services in joint venture with WSA Water conservation functions Billing Services/Cost recovery Awareness Campaigns (educational) Legalizing of illegal connections Operation and Maintenance Bottled Water MAGALIES WATER SERVICES Traditional Bulk Services Value Added Services • Abstraction • Purification • Storage • Distribution • Scientific Services • Sanitation

  11. Magalies Water operate the following Infrastructure plants

  12. Sewage Treatment Plants

  13. ALIGNMENT TO DWAF OBJECTIVES Operations and maintenance of water and sanitation purification plants that belong to different municipalities; Twinning agreement with Nkana Water in Zambia; Implementer of DWAF drought relief and infrastructure refurbishment. Eradication of bucket system and other MDG projects

  14. INFRASTRUCTURE PLAN OVER 3 YEARS. Vaalkop extension from 210 to 280ML/D (R640m) Vaalkop addition of GAC filters (R20m) Vaalkop laboratory upgrade (R1.2m) Vaalkop pipeline Cathodic protection (R2.0m) Upgrade of Cullinan booster pump station (R0.4m) Upgrade of Cullinan bulk pipeline (R1.3m)

  15. RAW WATER QUALITY AND POTABLE WATER PRODUCED F0607 • Raw water quality in our catchment has continued to deteriorate. The following parameters are of concern: • Salination: increasing salt content in water. • Eutrophication: increasing nutrients in water that result in algal bloom • MW has however installed new processes such ozonation and GAC filtration.

  16. RAW WATER QUALITY AND POTABLE WATER PRODUCED F0607 • Total Potable Water samples for F0607 = 8992 and the following compliances were achieved: • SANS 241 Class 1 = 99.6% • SANS 241 Class 2 = 100% • The above indicates that MW still produces best quality water despite deteriorating raw water quality.

  17. IMPACT OF LOAD SHEDDING • Loss of revenue; • Increased cost on human utilisation in terms of paying over time; • Wastage of water on plant start ups due to inferior quality of water produced; • Increased energy costs as pumps use a lot of energy on start up; • Pollution of natural resources due to inferior effluent or raw sewage discharged into water sources.

  18. CONTRACTS WITH MUNICIPLAITIES Rustenburg Local Municipality (RLM) City of Tshwane (CoT) Madibeng Local Municipality (MLM) Modemolle Local Municipality (MoLM) Nokeng Tsa Taemane Local Municipality (NTTLM) Thabazimbi Local Municipality (TLM) Moses Kotane Local Municipality (MKLM) Moretele Local Municipality (MorLM) Bela Bela Local Municipality (BBLM)

  19. WATERPRICING • Consultation process was followed at inter-Governmental level with Municipalities, National Treasury and SALGA. • Tariff increases were submitted to the Minister for tabling in Parliament. • Average tariff increases of 5.83% were kept within the Government Inflation targets of 3%-6%. • CPIX at 9.8% in February and impact of rising inflation on costs will be absorbed by MW. • High electricity and fuel costs will have a serious impact on the water tariffs.

  20. FINANCIAL HIGHLIGHTS • At the end of the 2007 financial year, qualified Audit opinion were raised on the following items: - RDP projects performed on behalf of DWAF. - Creditors reconcilliations - Policy on provision for doubtful debts. • To adress the above qualifications, the following measures were put in place: - Contracts were obtained from various stakeholders - Reconcilliations are performed and Creditors system is improved to ensure completeness. - A policy on Provision for doubtful debts has been drafted and approved by the Board. • There is a general improvement of systems and business processes.

  21. FINANCIAL HIGHLIGHTSfinancial performance

  22. FINANCIAL HIGHLIGHTSfinancial position

  23. THANK YOU

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