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2014/18 - Amatola Water2016-12-18 · 1 Amatola Water is in year two of its new long term...
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Transcript of 2014/18 - Amatola Water2016-12-18 · 1 Amatola Water is in year two of its new long term...
2014/18BUSINESS PLAN
3
Chapter 1 Foreword
Chapter 2 Introduction
Chapter 3 Policy Statement
Chapter 4 Self Appraisal of Business Achievements and Strategic Plan
Chapter 5 Directives by Minister
Chapter 6 Participation in Companies, Trusts, Joint Ventures and Transactions
Chapter 7 Water Resource Development
Chapter 8 Bulk Potable Water Plan
Chapter 9 Bulk Waste Water Treatment and Disposals
Chapter 10 Retail and Industrial Water Supply
Chapter 11 Other Activities
Chapter 12 Human Resource Development Plan
Chapter 13 Environmental Management Programme and Plans
Chapter 14 Water Conservation and Water Demand Management
Chapter 15 Financial Plan
Chapter 16 Bank Account Details
Chapter 17 Analysis of Risks
Chapter 18 Declaration of Disclosure
Chapter 19 Shareholders Compact
Annexures
Annexure A Service Area Map
Annexure B Scheme Layout Plan
Annexure C Key Statistics
Annexure D Strategic Plan and Corporate Scorecard
Annexure E Major Dam Yields
Annexure F High Level Organogram
Annexure G Financial Model
Annexure H 5 Year Capex Programme
Annexure I Bank Account Details
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3
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Contents
1
Amatola Water is in year two of its new long term strategic plan with a 20-year timeframe as aligned to the country’s National Development Plan. Central to this strategy is the refocus of Amatola Water’s core mandate to Section 29 activities. Good progress has been made in implementing the strategy, with 55.3% primary business in 2012/13 compared to 41% primary of 2011/12. Further progress is underway in the current financial year and so far Amatola Water is on target to achieve its five-year goal of 70% primary and the 20 year goal of 90% primary business.
Amatola Water is expanding its role to water service delivery and contribution to community livelihoods and sustainability in its gazetted area by upgrading six of its plants and related bulk infrastructure in these regions. These upgrades are underway and will be completed over the next two years, resulting in increased production capacity from 112 mega litres to 154.4 mega litres. This is a key catalytic project in terms of the refocus on the Section 29 mandate.
Amatola Water supports the Department’s Institutional Reform and Realignment (IRR) initiative and the ability of this initiative to truly change the bulk water, bulk sanitation and water resource infrastructure management in the Eastern Cape Province in a way that will transform water services delivery. The Board comprehensively performed and submitted to the Minister of Water and Environmental Affairs a Due Diligence report on the Southern Water Utility as per the directive from the Minister.
Collaborating with DWA on numerous initiatives within the Province has impacted positively on services on the ground. The significant progress on the King Sabata Dalindyebo Presidential Intervention (KSD PI) combined with the master planning for the OR Tambo District Municipality (ORTDM) is a good example of this. As part of its contribution to a decent standard of living for all South Africans, Amatola Water continues to advocate the design standard of approximately 750ℓ per household per day on all infrastructure projects to align with the intent of the National Development Plan.
The Ntabelanga Dam and related infrastructure on the Mzimvubu system will have a significant positive impact on the eastern region of the Province. Most relevant to Amatola Water is the opportunity to supply quality potable water to three district municipalities, namely the OR Tambo, Joe Gqabi and Alfred Nzo district municipalities in the region of a 98% assurance of supply. In a significant step to redress previous inequalities, this project will allow the communities in these areas access to services at a consistent high standard for generations to come.
In addition to delivering on its core mandate Amatola Water understands it must do so in a responsible manner and thus continues to improve its governance with progress made to achieve unqualified audit opinions and a surplus of R 25 million in the latest audited financial results.
Amatola Water presents the 2014/18 business plan to the Department for consideration and invites it to enter into a social compact to accelerate the transformation of the Eastern Cape Province bulk water service provision function.
M. MsiwaActing Chief Executive
Foreword by the Chief ExecutiveChapter 1
2
Amatola Water is on target to achieve its 5 year goal of 70%
Primary and 20 year goal of 90% Primary
Business
3
Introduction
Establishment
Amatola Water is a national government business enterprise (water board) operating in the water sector.
As an essential service utility, it is mandated by the Water Services Act (Act 108 of 1997) to offer services in
bulk water supply (both potable and untreated water), waste water treatment and other related services,
to the public benefit.
The organisation was established by the Minister of Water and Environmental Affairs as a water board in
terms of section 108 (2) of Water Act, 1956 (Act No. 54 of 1956), by the notice in the Government Gazette,
on 14 November 1997 which was superseded by the Water Services, Act 108 of 1997. In terms of this and
ensuing legislative provisions, Amatola Water operates as a Schedule 3(b) national government business
enterprise, as recognised under the provisions of the Public Finance Management Act (PFMA).
Amatola Water commenced formal trading in April 1998, with a directive from the Department of Water
Affairs (DWA) to provide improved and extended water services to enhance the quality of life and socio-
economic potential of the people of the Eastern Cape Province.
In July 1998, operational control of various water services facilities that had previously been operated by
Eastern Cape homeland governments and by departments of central Government together with attendant
personnel was vested with Amatola Water in terms of a Transfer Agreement concluded between the water
board and the State.
Vision, Mission and Organisational Values
Amatola Waters vision, mission and values are reviewed annually to ensure alignment to its mandate
and shareholders strategic intent.
Vision
“To lead sustainable bulk water services in the Eastern Cape”.
Mission
“Amatola Water strives to contribute to the public health and community livelihoods by providing bulk
potable water, bulk sanitation to Water Service Authorities and managing water resource management
infrastructure”
Chapter 2
4
Values
“We are inspired by an unwavering commitment to empower our stakeholders through the consistent
demonstration of:
Responsibility
Excellence
Integrity
Accountability”
Amatola Water recognises the importance of living out core values in the implementation of its mission
to ensure the realization of its vision. Basing every decision and action on these values is deemed vital to
Amatola Water’s overall success, growth and financial strength, now and into the future.
Service Area
Amatola Water’s gazetted service area includes most the Amathole and Chris Hani District Municipalities,
the Ndlambe Municipality and smaller portions of the Cacadu and Joe Gqabi District Municipalities.
Amatola Water’s gazetted area incorporates 47 515km²of the Eastern Cape Province. Annexure A contains
a map detailing Amatola Water’s current service area. Annexure B contains a map detailing the scheme
polygons of bulk infrastructure operated by the organisation. Annexure C provides key statistic for the
region where Amatola Water operates.
5
Policy Statement
Amatola Water developed its Policy Statement as a separate document in accordance with the
requirements of the Department of Water Affairs (DWA). The approach of separating the Business
Plan and the Policy Statement into two documents and submitting both simultaneously for appraisal is
continued by Amatola Water for the 2014 / 2015 year.
Chapter 3
6
Strategy and Self Appraisel of Business Achievements
Strategy
Strategic Direction
Amatola Water developed a new 20 year strategic direction for the organisation in the previous year. As an
entity of the state, the new direction is based on what Amatola Water believes to be its role and purpose
of formation i.e. assisting the state to achieve its objectives. In this process of alignment Amatola Water
has adopted a 20 year timescale for its long term strategic goals, as the state has done in documents
such as the National Development Plan. These 20 year strategic goals give Amatola Water its long term
direction within which the next 5 year strategic goals and objectives are set. Detailed planning is then
done for the 5 year window within the direction of these 20 year strategic goals.
As a unique post democracy rural water board Amatola Water believes this new strategic direction
will allow it to perform the function it was created for in a manner that successfully contributes to
government providing the quality of life of the citizens within the Eastern Cape.
Section 4b of the Constitution states that Local Government, in respect to water and sanitation, is responsible
for: “Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage
disposal system.” With local government mandated for the distribution of potable water, the abstraction of
raw water and production of potable water is the mandate of the Water Board. Institutional Reform and
Realignment and the thinking around a Provincial Water Enity has further emphasis this thinking.
As such Amatola Water’s strategic direction is that of the provision of potable water and sanitation
services through bulk infrastructure. In the past Amatola Water has been drawn into assisting water
service authorities with water services delivery in many different areas and activities which has resulted
in a 50/50 split between its Primary and Secondary businesses (sec 29 and sec 30 activities as per the
water service act). Strategically focusing, on the reason for its formation as state entity, Amatola Water
20 year strategic goal is to have a 90/10 split between these activities. With 90% of its business being
that of bulk water and sanitation activities including water resource infrastructure management and
10% provided advisory and related services to Water Service Authorities. This focus on products and
services to be provided is closely aligned to Amatola Water understanding of the Regional Water Utility
functions through the Institutional Reform and Realignment process.
As part of Amatola Water contribution to a decent standard of living for all South African citizen, as described
in the National Development Plan, Amatola Water has adopted a design standard of approximately 750ℓ per
Chapter 4
7
household per day on all infrastructure projects. Amatola Water believes considering the 20 year planning
cycle and the National Development Plan we need to start now in achieving the desired standard for all
South Africans.
In pursuit of its mandate and strategic direction, the water board has adopted the following as its
Corporate Vision and Mission:
Vision
“To lead sustainable bulk water services in the Eastern Cape”.
Mission
“Amatola Water strives to contribute to the public health and community livelihoods by providing bulk
potable water, bulk sanitation to Water Service Authorities and managing water resource management
infrastructure”
Values
Amatola Water values continue as: “We are inspired by an unwavering commitment to empower our
stakeholders through the consistent demonstration of:
Responsibility
Excellence
Integrity
Accountability”
Strategy Framework
Amatola Water has adopted the Balanced Scorecard approach with the four quadrants as set out by
Kaplan and Norton and the standard four quadrants are used:
1. Financial Quadrant
2. Stakeholder and Customer Quadrant
3. Internal Processes Quadrant
4. Learning and Growing Quadrant
As part of giving appropriate structure to its strategy measures and performance monitoring and management
system Amatola Water has also adopted the Ten Areas for Successful Water Utility Service Provision.
8
Product Quality
Customer Satisfaction
Water Resources Adequacy
Infrastructure Stability
Stakeholder Support
Financial Viability
Operational Optimisation
Employee Leadership/
Development
CommunitySustainability
Operational Resiliency
Effective and Holistic WSP Function
These ten fit within the four balanced scorecard quadrants and help ensure Amatola Water focuses on
all the relevant areas to be a successful water utility. The ten are as follows:
1. Water and Wastewater Quality: is achieved when Amatola Water produces bulk potable water and
wastewater in compliance with statutory requirements and consistent with customer needs at both
AW owned and ROU plants.
2. Customer Satisfaction: is the degree to which Amatola Water provides reliable, responsive, and
affordable products and services to WSA customers which meet or surpass customer expectations.
Timely feedback to customer-agreed service levels to maintain responsiveness to customers needs
and to delight these customers.
3. Stakeholder Relationships and Support: As an organ of state Amatola Water has a variety of different
stakeholders, most notable the Department of Water Affairs. This outcome includes managing and
building relationships with the various stakeholder groups by aligning initiatives to support key
stakeholder programs and informed by the inter-governmental framework, as well as influencing
these stakeholders to have common understanding of Amatola Water role and catalytic initiatives
within the sector.
4. Infrastructure Stability: is achieved when Amatola Water’s infrastructure is consistent with customer
service levels, and consistent with anticipated growth and system reliability goals.
5. Financial Viability: is achieved when Amatola Water manages operating expenditures and increasing
revenues in a manner that strengthens the balance sheet in a sustainable manner. In addition, the
organisation aims at a sustainable tariff that is consistent with customer expectations, recovers
costs and provides for future expansion.
9
6. Water Resource Adequacy: is achieved when Amatola Water assesses the scarcity of freshwater
resources, investigates sustainable alternatives, manages water abstractions assiduously and has
access to stable raw water resources to meet current and future customer needs.
7. Community / Environmental Sustainability: is achieved when Amatola Water is explicitly cognisant
of and attentive to the impacts it has on current and future community sustainability, supports socio
economic development and manages its operations, infrastructure, and investments to protect, restore
and enhance the natural environment, whilst using energy and other natural resources efficiently.
8. Leadership and Employee Development: is achieved when Amatola Water is dedicated to continual
learning and improvement, recruits and retains a workforce that is competent, motivated, adaptive
and works safely, ensures institutional knowledge is retained and improved; provides opportunities
for professional and leadership development, and is led by an integrated senior leadership team.
9. Operational Resiliency: is achieved when Amatola Water’s proactively and effectively manages
business risks across all areas of the business in a manner that ensures sustainability of the
organisations even in times of challenges and difficulties.
10. Operational Optimization: is achieved when Amatola Water has on-going, timely, cost-effective,
reliable, and sustainable performance improvements in all facets of its operations, has a culture of
accountability and every employee and department striving to improve systems and processes.
Strategic Goals and Objectives
Amatola Water has refined its 20 year goals and has developed 5 year Strategic Objectives that if it
acheives will successfully implemented the new strategy. Measures and targets for each of the next 5
years have been set and are included in Annexure D.
20 Year Goals
Category Goal
Product quality (primary)Blue and green drop certification for all bulk works - (owned and rou)
Product quality (primary)Providing accredited laboratory water services for the entire province
Primary product quantity Increase volumes to 350 mega litres per day
Customer satisfaction80% of wsa’s in the province as contracted customers through ownership or rou
Employee / leadership development Enhanced strategic effectiveness
Employee / leadership development Build cross-functional excellence/ effectiveness
10
20 Year Goals
Category Goal
Employee / leadership development Develop operational competence (individual)
Employee / leadership development Renowned knowledge hub for water services sector in ec
Water resource adequacy98% assurance of supply at a minimum service level of 750ℓ per household per day
Community sustainability
Contribute to decent living standards and enhance public health within communities in ec through quality adequate water services
Financial viabilityImprove solvency, liquidity and profitability to achieve an investment grade Fitch Rating
Infrastructure stability80 % of the infrastructure master plan implemented (investment / needed resources)
Infrastructure stability98% availability of water supply and 90% reliability of sanitation services
Operational resiliencyBulk water utility with interconnected regional schemes in the eastern cape
Operational resiliencyFully implemented businesses continuity system (ims, quality systems, knowledge management)
Operational optimisation Continuous improvement philosophy institutionalized
Operational optimisationContinuous alignment of people, skills, systems, policies and procedures for strategy implementation
Stakeholder support To be the center of a fully-fledged provincial water utility (irr)
Stakeholder supportStrong and well established relationships with stakeholders – internal and external
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
SC: Stakeholder and Customer
CS: Customer Satisfaction
2 additional Bulk water supply contracts with WSA (3 currently) (ROU)
Increase volumes to 160 mega litres per day
Improved customer satisfaction 7.5/10 average score
Acquire contracts for Water Resource Infrastructure Management
Acquire contracts for Waste water works
WQ: Water and Waste Water Quality
Achieve Statuary Quality compliance at All AW Owned and ROU plants efficiently
Blue drop advisory services
11
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
SC: Stakeholder and Customer
CE: Community / Environmental Sustainability
Contribute to decent living standards and enhance public health within communities in ADM through quality adequate water services
Provide services and invest in technologies / systems in an environmentally responsible and sustainable manner
SS: Stakeholder Relationships & Support
Strengthen and deepen relationships with statuary, contracted and non statutory stakeholders
Be centre of new provincial regional bulk utility
F: Financial Perspective
FV: Financial Viability On-going strengthening of Balance Sheet to sustainable services (Ratios)
Surplus per financial year contribution to build reserves for infrastructure investment
Explore sourcing of funding alternatives for growth of new infrastructure (excluding replacement)
P: Internal Processes WA: Water Resource Adequacy
98% Assurance of supply in ADM, Ndlambe and ORTDM Region (Sandile and Mzintlava Dams)
IS: Infrastructure Stability
90% Availability of water supply for all bulk services
AW Plant Upgrade and KSD PI Projects
Develop and EC water master plan to direct future funding streams
Minimise production and distribution water losses
OR: Operational Resiliency
Interconnected supply to Amahlathi, Ngqushwa, Nkonkobe, Ndlambe
Business continuity system implemented
Fully implemented IMS system
Accredited laboratory providing services across the entire Eastern Cape
OO: Operational Optimisation
Aligning People, Skills, Systems, Policies and Procedures for Strategy Implementation
Fully functional governance, compliance, risk and fraud prevention systems for clean audit
Continuous improvement system
12
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
LG: Learning and Growing
ED: Leadership & Employee Development
Enhanced Strategic Effectiveness
Build Cross-Functional Excellence/ Effectiveness
Develop Operational Competence (individual)
Entrenching the appropriate corporate culture: Decisive Leadership; resolving Organisational Politics; and Issues of Conflict
To be a renowned knowledge hub for the water services sector in the Eastern Cape
Strategy Implementation and Catalytic Initiatives
With Amatola Water 20 year strategy in place and refinement occurring each year, full attention can
be given to the implementation of strategy. Three additional interventions have being developed in the
institution in order to facilitate this further:
1. Catalytic Initiatives
2. Divisional Performance Reviews
3. Board Committee Strategy Implementation Monitoring and Evaluation
The following are the list of key Catalytic Initiatives which will drive the successful implementation of the
strategy and success of Amatola Water:
1. Institutional Realignment and Reform.
2. AW Plant Upgrade and KSD PI Projects.
3. Aligning People, Skills, Systems, Policies and Procedures for Strategy Implementation.
4. Entrenching the appropriate corporate culture: Decisive Leadership; resolving Organisational Politics;
and Issues of Conflict.
5. Fully functional governance, compliance, risk and fraud prevention systems for clean audit.
As part of improving its internal Strategy Monitoring and Evaluation Amatola Water has implemented
a quarterly internal peer review of divisional effectiveness at implementing strategy. Divisions present
their quarterly performance and are rated in five areas by other divisions and the CEO. These areas
include evidence of performance and cascading the strategy to lower levels of staff.
As part of its oversight role and responsibility for Strategy, the Board has allocated to its committees the
oversight of the strategy implementation of the 10 areas for successful Water Utilities as follows:
13
Area Board Committee Director Responsible
Financial Viability FINCO CFO
Stakeholder Support Corporate Citizenship CEO
Employee / Leadership Development HRC D: CS
Customer Satisfaction Strategy & BD CEO
Product Quality Strategy & BD D: Ops
Infrastructure Stability FINCO D: P&D
Operational Resiliency Strategy & BD D: Ops
Operational Optimisation Strategy & BD D: CS
Community Sustainability Corporate Citizenship D: CS
Water Resource Adequacy Strategy & BD D: P&D
Self Appraisal of Business Achievements Self-appraisal of Amatola Water business achievements covers the time period from July 2013 to
December 2013. Self-appraisal of the previous financial year is covered in the previous year business
plan and the annual report for 2011/2012. This self-appraisal is done comparing to the corporate balance
scorecard as submitted to DWA in the previous business plan. The performance is indicated for quarter
1 and quarter 2 separately and are as per the quarterly reporting approved by the Board.
In the area of its Primary mandate the Board has performed well, with increased volume sales and a
high quality of water provided and more than 98% assurance of supply. A main focus of the Board has
been improving and sustaining its financially viability due to previous years challenges. The Board has
performed well in this area and for the first six months of the year made a surplus of R21 million.
Highlights for the Year to Date:
• Increaseinthevolumesoldandqualityofbulkpotablewaterabovethetargets
• SurplusofR20millionandsignificantlyimprovedliquidity
• PercentagecompliancewithenvironmentalmanagementplansacrossAW
Challenging areas for the Year so far:
• Debtorsdaysimprovingbutstill127againsttargetof70daysandbaselineof113days
• Labourcoststillhighat40%oftotalcostcomparedtothetargetof38%
• Capexspendsignificantlybehindschedule
• Variousareaswerethesettingupofthenewmeasurementsystemsisnotcompletemakingitdifficult
to ascertain progress of strategy implementation in these areas.
14
Finance is busy with various interventions to improve the Debtors days. Staff costs are being reviewed
with the understanding that the current total compliment is higher than the desired levels. Capex spend
is being prioritised.
63% of scorecard targets have been met for the first six months, compared to 68% achievement in the
previous quarter indicating a great gap between planned strategy implementation and the current reality
within Amatola Water. Should this trend continue, this would become a major concern for Amatola Water.
Achievement of Targets
25%
63%
0%
11%
Achieved
Partially Achieved
Not Achieved
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ry,
co
ntr
acte
d a
nd
n
on
sta
tuto
ry
sta
keh
old
ers
SS
1.1
% C
om
plia
nce
w
ith
Exe
cu
tive
A
uth
ori
ty
ma
nd
ate
s
(MT
EF,
ND
P a
nd
D
WA
Str
ate
gy)
100
%10
0%
100
%10
0%
DW
A q
ua
rterl
y
rep
ort
ed
su
bm
itte
d
late
SS
1.2
% C
om
plia
nce
w
ith
co
ntr
actu
al
co
mm
itm
en
ts
(exc
l cu
sto
mers
)9
5%
95
%0
95
%0
Syst
em
s st
ill b
ein
g
set
up
SS
1.3
No
of
co
nsu
lta
tive
m
eeti
ng
s w
ith
ke
y i
nte
rest
g
rou
ps
n/a
42
10
Sti
ll o
n t
arg
et
for
the
ye
ar
FINA
NCIA
L PE
RSPE
CTIV
E
FV
FV
1
On
-go
ing
st
ren
gth
en
ing
of
Ba
lan
ce
Sh
eet
to s
ust
ain
ab
le
serv
ice
s (R
ati
os)
FV
1.1Liq
uid
ity R
ati
os:
0
.87
1.25
1.0
91.2
51.2
1
Th
e c
urr
en
t ra
tio
is
ad
vers
e a
t th
e e
nd
of
qu
art
er
2, t
he
de
bto
rs
ha
ve s
ign
ific
an
tly
de
cre
ase
d c
om
pa
red
to
de
bto
rs a
t ye
ar
en
d b
y a
lmo
st 5
9%
.
FV
1.2
De
bto
rs D
ays
113
70
132
70
127
Th
e d
eb
tors
’ da
ys
are
ad
vers
e a
s th
e
ba
lan
ce
of
tra
de
d
eb
tors
in
clu
de
b
oth
pri
ma
ry a
nd
se
co
nd
ary
de
bto
rs
wh
ere
18W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
1.3
Em
plo
ye
e t
o
reve
nu
e
(R
Mill
ion
)R
0.9
R 1
mil
20
0 K
25
0 K
42
0 K
Rev
enue h
as
not
gro
wn s
uff
icie
ntl
y
to t
he le
vel o
f co
mp
lem
enti
ng
the
num
ber
of
em
plo
yees
in t
he o
rganis
ati
on.
Sect
ion 3
0 r
evenue is
re
lati
vely
low
er
than
b
ud
get
while
there
is a
sl
ight
move
ment
in t
he
num
ber
of
em
plo
yees.
FV
1.4
So
lve
ncy r
ati
o
0.8
71.25
2.13
1.25
2.4
5S
olv
en
cy r
ati
o i
s fa
vora
ble
.
FV
1.5
Retu
rn o
n a
ssets
%
0.0
2%
0.1%
1.11%
0.1%
3.9
9%
Retu
rn o
n a
ssets
is
favo
rab
le d
ue
to
h
igh
er
tha
n e
xp
ecte
d
pro
fit
retu
rn f
or
the
q
ua
rter.
FV
1.6
Net
pro
fit
ma
rgin
% (
All)
-3
%7%
3%
13%
Incre
ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
su
rplu
s.
FV
1.7
Gro
ss p
rofi
t m
arg
in %
(A
ll)22%
25
%28
%2
5%
34
%
Incre
ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
g
ross
pro
fit.
FV
1.8
Tota
l exp
en
dit
ure
R
in
00
0R
55
0R
80
R13
8R
159
Exp
end
iture
on d
irect
in
put
cost
s h
as
incr
ease
to
acc
om
mod
ate
the
d
em
and
for
pota
ble
w
ate
r.
19W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
1.9
BBB
EE
sp
en
d-
100
%10
0%
100
%10
0%
Th
e t
arg
et
ha
s b
ee
n a
ch
ieve
d
in t
he
se
co
nd
q
ua
rter
how
eve
r th
ere
is
ne
ed
s fo
r im
pro
vem
en
t o
n
BBB
EE
sp
en
d o
n
Qu
alif
yin
g S
ma
ll E
nte
rpri
ses
an
d
Em
erg
ing
Mic
ro
En
terp
rise
s in
th
e
co
min
g q
ua
rters
FV
1.10
Ele
ctr
icit
y C
ost
(R
/KL)
0.5
60
.60
0.7
80
.60
0.7
3
Ele
ctr
icit
y u
sag
e i
s re
lati
vely
hig
h d
uri
ng
th
e p
ea
k d
em
an
d
sea
son
(w
inte
r).
Th
ere
's a
dow
nw
ard
tr
en
d f
rom
Octo
ber
to D
ece
mb
er
20
13 a
s w
e m
ove
in
sw
iftl
y
in t
he
low
de
ma
nd
se
aso
n.
FV
1.11
Ch
em
ica
l C
ost
(R
/KL)
0.3
40
.36
0.2
00
.36
0
.26
Actu
al ch
em
ica
l exp
en
dit
ure
an
d
usa
ge
ha
s in
cre
ase
d
in t
he
se
co
nd
q
ua
rter
du
e t
o w
ate
r tu
rbid
ity.
FV
FV
2
Su
rplu
s p
er
fin
an
cia
l ye
ar
co
ntr
ibu
tio
n t
o
bu
ild r
ese
rve
s fo
r in
fra
stru
ctu
re
inve
stm
en
tF
V2.1
Reve
nu
e i
n
Ra
nd
s (i
n m
illio
n
ran
ds)
R4
23
R3
52
R8
4R
140
R
167
Incre
ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
re
ven
ue
ge
nera
ted
in
th
e s
eco
nd
qu
art
er
20W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
2.2
Su
rplu
s in
Ra
nd
s (i
n M
illio
n)
0R
10R
62
.5m
R2
1
Hig
her
tha
n e
xp
ecte
d
surp
lus
du
e t
o h
igh
er
sale
s o
f p
ota
ble
w
ate
r a
nd
mo
nth
ly
reco
gn
itio
n o
f p
roje
ct
reve
nu
es.
FV
2.3
Am
oun
t of
targ
ete
d s
urp
lus
pla
ce
d i
n
rese
rve
fun
d (
in
mill
ion
Ra
nd
)0
R6
R3
.61.5
R13
Ma
na
ge
me
nt
targ
ets
to
pu
t in
to r
ese
rve
s 6
0%
of
the
su
rplu
s.
FV
2.4
% R
eve
nu
e
Se
co
nd
ary
B
usi
ne
ss /
To
tal
Reve
nu
e5
5%
45
%3
3%
55
%3
4%
Se
cti
on
30
reve
nu
e
ha
s b
ee
n g
en
era
lly
low
er
tha
n b
ud
gete
d
du
e t
o lo
ss o
f re
ven
ue
fr
om
th
e t
erm
ina
tio
n
of
Jo
e G
qa
bi
co
ntr
act
an
d o
ther
seco
nd
ary
b
usi
ne
ss a
cti
vit
ies.
FV
2.5
% L
ab
ou
r co
sts
of
tota
l co
sts
41%
38
%4
1%3
8%
40
%
Th
e la
bo
ur
co
sts
to
tota
l co
st r
ati
o i
s a
dve
rse
. Th
is r
ati
o
is g
oin
g t
o i
mp
rove
a
s so
me
of
the
e
mp
loye
es
will
be
tr
an
sferr
ed
to
AD
M
in t
hir
d a
nd
fo
urt
h
qu
art
er.
FV
FV
3
Exp
lore
so
urc
ing
o
f fu
nd
ing
a
ltern
ati
ves
for
infr
ast
ructu
re
deve
lop
me
nt
FV
3.1
Am
oun
t of
Gra
nt
fun
din
g s
ecu
red
R
0R
0N
/AR
00
No
t sc
he
dule
d i
n f
irst
ye
ar
FV
3.2
Am
oun
t of
Len
din
g (
ca
pit
al
ma
rket)
fun
din
g
secu
red
0R
0N
/A0
0N
ot
sch
ed
ule
d i
n f
irst
ye
ar
21W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
3.3
Am
oun
t of
Deve
lop
me
nt
Ag
en
cy f
un
din
g
secu
red
0R
0N
/A0
0N
ot
sch
ed
ule
d i
n f
irst
ye
ar
FV
FV
4S
ust
ain
ab
le &
A
ffo
rda
ble
Ta
riff
FV
4.1
% a
vera
ge
in
cre
ase
of
tari
ff (
wit
hin
g
ove
rnm
en
t ta
rgete
d
infl
ati
on
)10
%8
%9
.3%
8%
9.3
%
Tari
ff n
eg
oti
ati
on
s a
nd
co
nsu
lta
tio
n
is p
rog
ress
. Th
e
fin
al a
vera
ge
ta
riff
in
cre
ase
will
be
ma
de
a
va
ilab
le i
n t
he
th
ird
q
ua
rter.
INTE
RNAL
PRO
CESS
ES Q
UADR
ANT
WA
WA
1
Ad
eq
ua
te w
ate
r se
cu
rity
an
d
ass
ura
nce
in
su
pp
ort
of
wa
ter
sup
ply
WA
1.1
% a
ssu
ran
ce
le
vel (1
in
50
ye
ar
dro
ug
ht
/ re
stri
cti
on
)9
8%
98
%9
8%
98
%9
8%
No
ove
r a
bst
racti
on
fr
om
an
y r
eso
urc
e a
t p
rese
nt
sup
ply
leve
ls
ISIS
1R
elia
ble
in
fra
stru
ctu
reIS
1.1
% I
nfr
ast
ructu
re
CA
PE
X v
s.
Reve
nu
e0
%4
%1%
1%0
%
Th
e t
arg
et
ha
s n
ot
be
en
ach
ieve
d
how
eve
r th
ere
is
gre
at
ne
ed
to
in
cre
ase
reve
nu
e
ge
nera
ted
fro
m
op
era
tio
ns
in o
rder
to
sta
rt w
ith
to
p p
rio
rity
C
APE
X p
roje
cts
.
IS1.2
Ove
rall
ca
pex p
roje
ct
co
mp
leti
on
d
ate
s w
ith
in
targ
ets
as
a
perc
en
tag
e0
%75
%0
%0
%2
1%
Pro
gre
ss i
s b
ein
g
ma
de
wit
h p
lan
nin
g
an
d f
ea
sib
iliti
es
on
ca
pex p
roje
cts
22W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
IS1.3
Incre
ase
d
acce
ss t
o
serv
ice
s m
ea
sure
d b
y
Ra
nd
sp
en
d o
n
Ca
pex P
roje
cts
R0
R26
Mil
R5
6K
R5
Mil
R4
,2 M
il
Perf
orm
an
ce
ag
ain
st
this
me
asu
re i
s im
pro
vin
g
ISIS
1.4
% I
nfr
ast
ructu
re
Ma
inte
na
nce
of
Reve
nu
e8
%6
%9
%2
.5%
9%
Th
e t
arg
et
ha
s b
ee
n
ach
ieve
d h
ow
eve
r th
ere
is
gre
at
ne
ed
to
in
cre
ase
reve
nu
e
ge
nera
ted
fro
m
op
era
tio
ns
in o
rder
to c
arr
y o
ut
pla
nn
ed
a
nd
pre
ven
tati
ve
ma
inte
na
nce
.
ISIS
2
Infl
ue
nce
Pro
vin
cia
l W
ate
r In
fra
stru
ctu
re
Se
cto
r Pla
nn
ing
IS2.1
% a
lign
me
nt
of
wa
ter
sup
ply
sc
he
me
s to
a
de
qu
ate
wa
ter
reso
urc
es
n/a
95
%9
5.9
%9
5%
100
%
Ad
eq
ua
te r
eso
urc
es
at
cu
rre
nt
de
ma
nd
le
vels
ISIS
3
Min
imis
e
pro
du
ce
d a
nd
d
istr
ibu
ted
wa
ter
to e
ffic
ien
tly
red
uce
wa
ter
loss
es
IS3
.1
% t
ota
l w
ate
r lo
ss A
W O
wn
ed
a
nd
RO
U15
%12
%11
.2%
13%
12%
Wa
ter
loss
es
ca
me
d
ow
n a
nd
th
e t
arg
et
wa
s a
ch
ieve
d, b
ut
still
n
ee
d s
om
e a
tte
nti
on
in
th
e D
eb
e, P
ed
die
a
nd
La
ing
are
as
ISIS
4
Up
gra
de
pla
nts
to
pro
vid
e
min
imu
m 5
me
gs
per
da
yIS
4.1
No
. of
pla
nts
co
mm
issi
on
ed
a
t 5
me
gs
per
da
y4
44
44
Na
ho
on
, Sa
nd
ile
, La
ing
& P
ed
die
OR
OR
1
En
sure
un
inte
rru
pte
d
wa
ter
sup
ply
, w
ith
ad
eq
ua
te
pre
ssu
re t
o
cu
sto
mers
OR
1.1
No
. un
pla
nn
ed
in
terr
up
tio
ns
to s
up
ply
>24
h
ou
rs2
00
1.4
7%
99
.53
%
of
Ass
ura
nce
o
f S
up
ply
wa
s a
ch
ieve
d i
n Q
2
23W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
OO
OO
1
Ad
eq
ua
te
syst
em
s,
stru
ctu
res,
p
olic
ies
an
d
pro
ce
sse
s to
e
na
ble
str
ate
gy
imp
lem
en
tati
on
OO
1.1
% c
om
plia
nce
w
ith
p
red
ete
rmin
ed
K
PA t
ime
fra
me
s S
CM
, HR
an
d
SH
EQ
n/a
75
%0
75
%0
Syst
em
s to
me
asu
re
no
t in
pla
ce
yet
OO
OO
2
As
resp
on
sib
le
pu
blic
en
tity
e
nsu
re s
tro
ng
G
ove
rna
nce
, C
om
plia
nce
, R
isk a
nd
Fra
ud
Pre
ven
tio
n
syst
em
sO
O2.1
Un
-qu
alif
ied
A
ud
itY
YY
YY
OO
2.2
Eff
ecti
ve
inte
rna
l co
ntr
ols
a
nd
ris
k m
an
ag
em
en
t In
tern
al a
ud
it
fin
din
gs:
N
um
ber
Re
pe
ats
n/a
270
270
Du
rin
g t
he
fo
llow
-up
a
ud
it
co
nd
ucte
d b
y
the
in
tern
al a
ud
ito
rs ,
a t
ota
l o
f 10
2 f
ind
ing
s w
ere
fo
llow
ed
up
an
d
: 29
were
fo
un
d t
o
ha
ve b
ee
n a
dd
ress
ed
; 2
7 p
art
ially
ad
dre
sse
d a
nd
43
w
ere
no
t a
dd
ress
ed
. T
his
is
cu
rre
ntl
y
be
ing
pri
ori
tise
d.
Info
rma
tio
n
ou
tsta
nd
ing
OO
2.3
Eff
ecti
ve
inte
rna
l co
ntr
ols
a
nd
ris
k m
an
ag
em
en
t In
tern
al a
ud
it
fin
din
gs:
N
um
ber
un
reso
lve
dn
/a2
43
24
3
OO
2.4
% C
om
plia
nce
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32
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27
Directives by Minister
Amatola Water received one directive as defined in section 41 of the Water Services Act from the Minister
since the last business plan. The directive details were as follows:
Directive Purpose: Prepare a due diligence report for Amatola Water to be realigned into the
Southern Regional Water Utility
Due Date: 31 March 2014
Date Issued: 3 February 2014
The organisation has complied with the directive and successfully submitted the required Due Diligence
Report for the Southern Regional Water Utility to the Minister of Water and Environmental Affairs on 31
March 2014.
Chapter 5
28
Participation in Companies, Trusts or Joint Ventures and Transactions
Chapter 6
Amatola Water does not envisage participating in any separate company, trust, joint ventures or similar
transactions for the next five year period in the implementation of its strategy. However should such
an arrangement be required it will be developed in accordance with the organisations materiality and
significance framework discussed in Chapter 15.
29
Water Resource Development and Inter-Basin Transfer Schemes
Water resources development and inter basin transfers is part of the organisations primary business.
The organisation makes a contribution in this regard through the annual dam management contract
with the Department of Water Affairs. This contract has a direct impact on the organisation’s primary
business in terms of raw water adequacy and quality control.
Contractual Obligations with the Department of Water Affairs
Amatola Water’s contractual relationship with the Department of Water Affairs (DWA) relates to
arrangements concerning the bulk supply of raw water to Amatola Water and the operation and
maintenance of state dams.
Raw Water Supply Agreement
During 2001/02 Amatola Water and the DWA entered into negotiations to conclude a formal Raw Water
Supply Agreement. The seventh draft generic agreement was produced during the 2007/08 financial
year. This agreement has not been concluded to date because the detail in terms of water quality
standards is still to be agreed upon.
The current arrangement of raw water consumed by Amatola Water being billed by DWA according to
the monthly volumetric consumption will continue for the foreseeable future.
Operating and Maintenance Management Agreement of Dams
The Operation and Maintenance Management Agreement that Amatola Water entered into with the
DWA to manage dams in its area continues on an annual basis. This agreement shall remain in effect
until terminated by mutual agreement or through changes in legislation. The contract requires Amatola
Water to maintain 21 dams within its supply area on behalf of DWA.
Projected Demand
Description of Ma jor Consumers or Consumer Groups and Projected Demand
The following table indicates the raw water extracted and the projected water demands to the Amatola
Water’s Water Treatment Works (WTW) and the related dams which are maintained by the organisation:
Chapter 7
30
m3/annum
Water Treatment Works
Dam & Registered 06/07 Abstractions 2014/15 2015/16 2016/17 2017/18 2018/19
Nahoon
Nahoon
13 065 118 13 430 118 16 350 118 17 080 118 17 810 1185 700 000
Laing
Laing
10 111 029 10 212 139 10 708 461 10 864 820 10 914 0958 400 000
Sandile
Sandile
7 134 812 7 432 221 9 906 221 10 234 721 10 563 2217 400 000
Rooikrantz
Rooikrantz
4 713 356 4 760 489 4 808 094 4 856 175 4 904 7374 530 000
Debe Nek
Debe
817 778 825 956 1 336 956 1 400 831 1 464 706680 000
Peddie Regional
Sandile
2 779 738 2 807 536 3 683 536 3 793 036 3 902 5361 500 000
Masincedane
Mnyameni
854 239 862 781 1 154 781 1 191 281 1 227 781640 000
Dabi
Dabi
- - - - - 30 000
Binfield
Binfield Park
1 983 673 2 003 509 2 762 709 2 857 609 2 952 5092 370 000
Upper Mnyameni
Mnyameni
106 295 107 358 108 432 109 516 110 611100 000
Glenmore
Lower Fish
259 873 262 472 265 096 267 747 270 425180 000
Boesmans River
Albany Coast RO Plant + Wells 826 329 834 593 842 939 851 368 859 882
Table 1
A key initiative for the 2014/15 financial year will be to apply to DWA for increased abstractions from the
abovementioned dams to cater for the current and projected demands where these exceed current registrations.
31
Water Resource Conservation
Amatole Bulk Water Supply System:
Nahoon / Laing / Wriggleswade / Bridle Drift / Rooikrantz/Maden/ Gubu Dams
The above mentioned dams form part of the Amatole System. Amatola Water had been monitoring water
losses within this bulk treatment and distribution systems on a continued basis since the inception of the water
boards activities within the region. Amatola Water has been assisting DWA in the control of growth/spread of
water hyacinth on the Laing and Wriggleswade Dams. These activities will continue for the next five years.
Keiskamma Catchment
Sandile /Debe/Mnyameni/Cata/ / Pleasant View/ Binfield Park Dams
The above listed dams are located within the Keiskamma River Catchment. Water conservation
interventions per dam are detailed below.
Sandile Dam
Sandile Dam supplies raw water to the Sandile and Peddie Regional water treatment works (WTW)
for potable use. Raw water is released from Sandile Dam via the Keiskamma River to Craighead Weir,
from where it is pumped to the Peddie WTW. In terms of ensuring sufficient amount of water available
at Craig Head Weir, Amatola Water releases a constant stream of 210ℓ/s (6,6 Million cubic meters per
annum, or 550 000 cubic meters per month) from Sandile Dam.
Between Sandile and Craighead weir, there are significant water losses caused mainly by farmers on
route, abstracting water from the Keiskamma River. Craighead Weir is approximately 143 km downstream
of Sandile Dam. As none of the farmers are monitored for abstractions by DWA it is difficult for Amatola
Water to determine what the correct release should be for the system. The monitoring of the abstraction
of the farmers by DWA would enable the release to be accurately defined and implemented.
Amatola Water has been investigating the option of piping potable water directly from Sandile Water Treatment
Works to the Peddie Scheme and Port Alfred. This would provide a suitable solution to DWA to minimize the
conveyance loss of about 4 million cubic meters per annum (approximately 11Mℓ/day) from Sandile Dam to the
Craighead Weir. Studies undertaken by Amatola Water during 2012 to 2014 years shows that the supply of potable
water from the Sandile Water Treatment Works to the existing BCMM, ADM and Ndlambe Municipalities will be
the most economical way to do this. A cost comparison was done between the Sandile WTW augmentation
option and various alternative options within Ndlambe to address the Ndlambe long term water needs. This
included water supply options such as ground water, and or, abstraction from the lower Fish River inclusive
of Reverse Osmosis (RO) processes. The results of the study shows that Sandile WTW augmentation option
which will require the raising of Sandile Dam by a further 10m to be the cost beneficial option. At a stakeholder
meeting held between all affected parties in March 2014 it was decided that Amatola Water must prepare a pre-
feasibility report which is to be submitted to DWA for revue and consideration. The result of the implementation
of such a regional scheme will lead to major raw water savings and optimization of water use.
32
Debe Nek Dam
Debe Nek Dam supplies raw water to the Debe Nek water treatment works for potable water production.
Amatola Water is managing water losses on bulk conveyance systems on a continued basis and there
are no significant water conservation issues at this resource.
Mnyameni Dam
Mnyameni Dam supplies raw water to the Masincedane and Upper Mnyameni water treatment works. A
portion of the available yield of Mnyameni Dam is allocated for irrigation purposes, supplying the high laying
agricultural lands within the Keiskamma valley in conjunction with Cata Dam. Amatola Water is monitoring
water losses on a continued basis within the two schemes. There appears to be a number of illegal
connections causing water losses on the bulk distribution side to be on the high side. Through continued
water loss management processes Amatola Water is taking action to reduce these losses to the minimum.
Cata Dam
Cata Dam is only supplying irrigation water to the farmers within the Keiskammahoek valley and there
are no significant water conservation issues at this resource.
Pleasant View and Binfield Park Dams
Pleasant View Dam
Pleasant View Dam is currently only utilized as an irrigation scheme and actually not in use at the
moment. There are no significant water conservation issues at this resource.
Binfield Park Dam
Binfield Park Dam provides raw water for irrigation, domestic and industrial use. Raw water is treated
at the Binfield Park WTW and the Alice WTWs. Potable water is supplied to Alice and villages within the
Gaga Tyume area. Amatola Water is monitoring water losses on a continued basis within the Binfield
scheme. As it has been agreed between ADM and AW during 2013/14 year to move the bulk billing points
for the Binfield scheme to the outlet of the works and not at each village any more, it has now become
the responsibility of ADM to monitor the bulk water use/losses within the bulk network. The reason for
this decision has mainly been due to the fact that all bulk distribution infrastructure belongs to ADM.
The volume raw water abstracted by farmers for irrigation purposes from the raw water pipe line
between Binfield Park Dam and Alice is not monitored. A raw water meter has been installed at the dam
to monitor total monthly raw water abstractions. Raw water losses can be reduced, if DWA decides to
request that the farmers abstractions for agricultural use be monitored through a proper bulk water
metering system. There are no raw water meters on these agricultural off- takes on route, thus bulk
raw meters need to installed on the system. Funding would be required to do this. The situation of
uncontrolled abstraction by irrigators is not a healthy situation. The installation of raw water meters
and implementing a monthly raw water abstraction monitoring system for irrigators is a necessity.
Amatola Water needs guidance from DWA officials on how DWA wants to deal with this matter. A proper
monitoring system on all raw water abstraction could promote major raw water savings.
33
Glenmore System
The Glenmore WTW abstracts water from the Glen Boyd Dam irrigation pipeline which forms part of the
Lower Fish Government Water Scheme. Annual water use is in the order of 300 000 cubic meters per
annum and losses minimal. The bulk distribution system is under management of ADM.
Bushmans River System
The Bushmans River Reverse Osmosis water treatment works abstracts water from sea wells (boreholes
within the river mouth dunes) as well as some inland boreholes. All the abstraction points are metered
to ensure the resources are not over abstracted. Amatola Water has also created a water balance
monitoring system to monitor the operational efficiency of the RO plant to ensure that the brine
discharge volume remains within design parameters.
Raw Water Supply to Local Municipalities
Raw water is managed and supplied on behalf of the DWA to the following consumers or groups of
consumers, with the projected water demands being shown in the next three tables:
Buffalo City Municipality
m3/annum
Water Treatment Works 2014/15 2015/16 2016/17 2017/18 2018/19
Rooikrantz dam (to King William’s Town WTW) 3 884 687 3 923 534 3 962 769 4 002 397 4 042 421
Table 2
Nkonkobe Municipality (ADM)
m3/annum
Water Treatment Works 2014/15 2015/16 2016/17 2017/18 2018/19
Binfield Dam (to Alice WTW) 1 940 656 1 960 062 1 979 663 1 999 460 2 019 454
Table 3
Amahlathi Municipality (ADM)
m3/annum
Water Treatment Works 2014/15 2015/16 2016/17 2017/18 2018/19
Gubu dam (to Stutterheim WTW) 1 752 870 1 770 399 1 788 103 1 805 984 1 824 044
Table 4
The raw water is utilised by the respective municipalities to produce potable water for consumers.
34
Industry
Da Gama Textiles is the only major industry to be supplied with raw water by Amatola Water. This
industry is supplied from the Rooikrantz dam. Expected demand is shown in the following table:
m3/annum
Water Treatment Works 2014/15 2015/16 2016/17 2017/18 2018/19
Rooikrantz dam 714 085 721 225 724 832 728 456 732 098
Table 5
Da Gama used about 110 000 cubic meters per month in the past financial year. This equates to a
reduction of approximately 55000 cubic meters per month due to the re-use process as well as a
decrease in demand for material from the textile factory.
Individual / Industrial / Irrigation consumers
Individual customers on route of the Nahoon rising main are supplying a number of farmers with potable
water. A small volume of the potable supply is also supplied to nearby industry. Further two farmers are
utilizing a small volume per month for micro irrigation use. The expected demand is outlined in the
following table.
m3/annum
Water Treatment Works 2014/15 2015/16 2016/17 2017/18 2018/19
Nahoon dam 226 144 228 405 230 690 232 996 235 326
Table 6
Amatola Water does not foresee significant growth in supply to individual consumers in the future.
Growth in Water Demand
General
In determining projected demands as discussed above, cognisance has been taken of growth arising from:
• Newwatersuppliestocommunitiesintermsofbacklogelimination;
• Theneedforhigherlevelsofservicefromcommunities;and
• Naturalpopulationgrowth.
The Amatola Water Infrastructure Master Plan (IMP) projects a modest water demand growth in Amatola
Water’s schemes from 107Mℓ/day in 2014/15 to 128Mℓ/day in 2018/19. Water demand growth is based on
an annual growth at 1% per annum.
35
A key future consideration that will impact on demands is the requirement of higher levels of service.
The National Development Plan encapsulates this requirement and provides a vision of access to
running water in every household by 2030. Amatola Water has referred to the Guidelines for Human
Settlement Planning and Design to determine an appropriate level of supply to support the 2030 vision.
The organisation is therefore positioning itself to be able to supply a minimum bulk supply of 750ℓ per
household per day over the next five year period. This will be achieved in part through the augmentation
of water treatment, bulk infrastructure distribution and storage capacities. This augmentation is an
absolute necessity as a number of the water treatment plants are operated on a daily basis above
100% of its treatment capacities. At the same time Amatola Water will continue to have a key focus on
improving water demand management and conservation interventions.
Amatole Bulk Water Supply System
Nahoon / Laing / Wriggleswade / Bridle Drift / Rooikrantz/Maden/ Gubu Dams
Growth in water demand for the Amatole System is discussed under the Water Resources Inter-Basin
Transfer Supply Scheme Supply Capacity and Development section.
Keiskamma Catchment
Sandile /Debe/Mnyameni/Cata/ / Pleasant View/ Binfield Park Dams
The above listed dams are located within the Keiskamma River catchment.
Sandile Dam
The Planning Review Report of the Sandile Regional Water Supply Scheme of 1987 reports the safe
yield of Sandile Dam is regarded as 18 million cubic meters per annum of which 11.6 million cubic meters
per annum at an assurance of 98% for domestic use and the balance earmarked for irrigation at an
assurance of 90%. It further states that the Sandile WTW has been designed and constructed in such
a way for future doubling up in treatment capacity at the same site. The Sandile and Peddie Regional
Water Treatment Works are operated/utilized at 100% and above their treatment capacities, thus the
need to increase treatment capacities at both these works.
At the same time various options of augmenting potable water supply to the Ndlambe Municipal area
have been under investigation. Sandile dam has been identified as potential source of water to augment
the existing water supply system within the Ndlambe municipality. The study undertaken considered
sufficiency of yield from the Sandile dam to meet the estimated future water demands of the end
users. It further considers the potential benefit to both Ndlambe Local Municipality (NLM), as well as
the current users of the Sandile and Peddie regional schemes( Amatola District Municipality (ADM)
and Buffalo City Metropolitan Municipality (BCMM)) if the new proposed Sandile-Ndlambe bulk supply
scheme is combined with the existing Sandile and Peddie regional supply schemes.
The current domestic allocation from the dam is deemed for supply of the current users, such as
BCMM and ADM. There is no surplus yield available from the Sandile dam to allocate towards NLM. The
proposed initiative entails the establishment of Sandile Regional Supply Scheme that will incorporate
36
the current Peddie WTW and extend supply to the Ndlambe LM. The total future (2035) domestic water
demand from the Sandile system is expected to be 20.37 million cubic meter per annum (55.8 Mℓ/day).
The potential dam-raising options are being analysed for Sandile Dam, taking into account expected
long term water demand requirements.
The historical firm yield for Sandile Dam is estimated to be 20 million m3/a. The historical firm yield for
Sandile Dam raised if raised by 4m is estimated to be 24.8 million m3/a and if raised by 10m is estimated
to be 27.6 million m3/a.
It was decided at a meeting held with all stakeholders during April 2014 that a preliminary design report
in terms of the Sandile Dam augmentation to be submitted to DWA for further consideration.
A critical intervention for the next five year period will thus be the consideration of the augmentation of
the Sandile Dam to meet this expected future long term demands.
Debe Nek Dam
The current demand from Debe Dam for domestic use is in the order of 0.800 million cubic meters per
annum. To meet the expanded medium to long term potable water requirements Amatola Water has
appointed consultants to do a feasibility study considering the options of increasing treatment capacity
from 1.5Mℓ/d to 5.0Mℓ/d. This action will increase the demand on raw water supply from the current
0.800 million cubic meters per annum to 1.825 million cubic meters per annum for domestic purposes
from Debe Dam. Debe Dam has sufficient capacity to accommodate this increase in demand as it has a
safe yield of 2.15 million cubic meters per annum.
Mnyameni Dam
The current demand from Mnyameni Dam by the Upper Mnyameni WTW and Masincedane WTWs for
domestic and industrial use is in the order of 1.39 million cubic meters per annum.
To meet the expanded medium to long term potable water requirements Amatola Water has appointed
consultants to do a feasibility study considering to increase treatment capacity from 4.0 Mℓ/d to 6.0
Mℓ/d. This action will increase the demand on raw water supply from the current 1.39 million cubic
meters per annum to 2.15 million cubic meters per annum for domestic purposes from Mnyameni Dam.
The current irrigation allocation out of Mnyameni dam is 0.7 million cubic meters per annum, while the
Ciskei Development plan indicates the safe yield is in the order of 2.3 million cubic meter per annum,
thus materialising in a possible shortfall, however recent operating rules checking the safe yield of the
Keiskamma Catchment indicates a yield of 4.0 million cubic meters per annum for Mnyameni Dam; this
is however from a draft report, thus the results are still to be accepted by DWA and therefore actual
available spare yield is to be confirmed for future development purposes.
Cata Dam
37
Cata Dam is only supplying irrigation water to the farmers within the Keiskammahoek valley and is
therefore not part of Amatola Waters water demand planning at present.
Pleasant View and Binfield Park Dams
Pleasant View Dam
Pleasant View Dam is not in use at the moment and is therefore not part of Amatola Waters water
demand planning at present.
Binfield Park Dam
The current demand from Binfield Park Dam for domestic and industrial use is in the order of 3.2 million
cubic meters per annum. To meet the expanded medium to long term potable water requirements
Amatola Water is in the process of considering increasing treatment capacity from 4.8 Mℓ/d to 10 Mℓ/d.
This action will increase the demand on raw water supply from the current 3.2 million cubic meters per
annum to 4.3 million cubic meters per annum for domestic purposes from Binfield Park Dam. This is well
within the firm yield of 16.5 million cubic meters per annum of the dam.
Glenmore System
There is very little growth is expected within this scheme. There is however plans to link this scheme with
the Peddie Regional Scheme within the next two years. This intervention will have the benefit increasing
regional economies of scale thus improving long term sustainability.
Bushmans River System
The demand on the Bushmans River Reverse Osmosis water treatment works is expected to grow slowly
over the next five year period. Shortfalls in available resources is also addressed within the Ndlambe
Bulk Water Supply Option Study. Additional ground water sources will be sought should demand begin
to rise above projected levels via additional sea wells.
Assurance of Supply at which Demand is to be Supplied
The Infrastructure Master Plan (IMP) of 2003 indicates that there is a reasonable assurance of supply to
all water treatment works, with the exception of the Rooikrantz, Laing and Nahoon schemes. The inter-
basin transfers that are possible from the Wriggleswade Dam to Laing/Bridle Drift and Nahoon Dams
are, however, sufficient to overcome this problem when it arises as reflected in table 7.
The recent Reconciliation study undertaken by DWA of the Amatole System that has recently been
completed, indicates that with the implementation of the Ecological Water Requirements, it will be
necessary to either augment the supply or to implement certain strategies such as water demand
management or other measures to address this. If the affected Water Service Authorities and Amatola
Water implement these strategies in an aligned and consistent manner then the need to implement the
construction of a new scheme can be postponed.
38
The strategies have been finalized, and the necessary bodies to manage the process have been put in
place by DWA. The Amatole Systems Strategy Steering Committee and the Technical Support Group
have been established for this purpose and are supported by consultants appointed by DWA to ensure
the Amatole System is managed in a sustainable manner.
Projected Water Availability and Resources Development
Projected Water Availability
Projected water use figures have been registered with the DWA and a water use license was issued to
Amatola Water during June 2002. These registered volumes have been adjusted over the past financial
years. Amatola Water updated the required registered volumes as reflected in Table 7. The application
for registration of revised volumes will be done in the 2013/14 financial year. Current registered volumes
are contained in Table 1.
The table estimates that the Nahoon, Rooikrantz and the Albany Coast systems have projected raw
water shortfalls for the 2013/14 financial year onwards while the Sandile system will have shortfall in
the 2016/17 financial year taking into account the irrigation allocations as well. The Nahoon shortfall
will be provided via transfers from the Wriggleswade dam. The Rooikrantz shortfall will be managed
by implementing strict operating rules that ensure that a critical low supply levels that potable water
shortfalls are supplied to consumers via the Laing system. The Albany Coast system shortfall is also
managed under strict operating rules in combination with consumers being required to provide for
onsite water supplies via rain water harvesting installations.
Table 7 highlights that the majority of dams that Amatola Water uses for raw water supply. Environmental
water requirements and allocations have not been finalized on any of the schemes. DWA has completed
the determination of the environmental flow requirements and potential environmental impacts of
possible future developments on the Amathole System. Guidance is outstanding at present on the how
the required environmental releases will be implemented.
A drought/system management model has been set up to be used to utilize the water within the systems
effectively. The system is monitored on an annual basis to ensure that the proposed strategies are
implemented in time.
Resource Development
Table 7 indicates that there is reasonable assurance of supply in the region if no releases are made
for the environment. The Maden/Rooikrantz dams showed a shortfall of 2.010 million m³/a, which is
currently being addressed by DWA. The Department is reviewing the allocations from Rooikrantz Dam in
consultation with all relevant stakeholders. The Amatole Reconciliation study provides some guidance
on the way forward on the allocations.
39Da
m
Nam
es
Capa
city
in
Mm3 (
Live
st
orag
e)
Tota
l firm
yi
eld
Mm3/
a
Urba
n/Do
mes
tic
Mm3/
aIrr
igat
ion
Mm3/
a En
viro
nmen
tal
Mm3/
a
Raw
wat
er
use
in
2014
/201
5 in
Mm3/
a
Raw
wat
er
use
in
2015
/201
6 in
Mm3/
a
Raw
wat
er
use
in
2016
/201
7 in
Mm3/
a
Raw
wat
er
use
in
2017
/201
8 in
Mm3/
a
Raw
wat
er
use
in
2018
/201
9 in
Mm3/
a
Surp
lus
(+)/
sh
ortf
all
(-) f
or
2014
/201
5 in
Mm3/
a
Surp
lus
(+)
/ sh
ortf
all
(-) f
or
2018
/201
9 in
Mm3/
a
Bin
fie
ld P
ark
D
am
36
.85
016
.50
01.0
00
8.0
00
0.0
00
3.2
20
3.2
53
3.2
53
4.14
64
.26
15
.28
04
.23
9
Ca
ta D
am
12.10
06
.20
00
.00
05
.30
00
.00
00
.00
00
.00
00
.00
00
.00
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.00
00
.90
00
.90
0
Da
bi
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33
0.0
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0.0
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0.0
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0.0
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00
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De
be
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.00
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.150
0.3
50
0.0
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0.8
180
.82
61.3
37
1.4
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1.4
65
1.3
32
0.6
85
Gu
bu
Da
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.870
2.3
00
0.7
83
0.0
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31.770
1.78
81.8
06
1.8
24
0.3
34
0.2
63
La
ing
Da
m19
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.270
14.9
00
1.9
00
0.0
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10.11
110
.212
10.7
08
10.8
65
10.9
146
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95
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6
Mn
ya
me
ni
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0.7
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1.3
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2.3
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1.9
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ho
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Da
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5.6
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0.9
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16.3
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1.5
50
Ple
asa
nt
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w
Da
m2.0
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0.0
00
0.0
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0.0
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0.0
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0.0
00
0.0
00
0.0
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0.0
00
0.0
00
0.0
00
0.0
00
Ro
oik
ran
tz /
Ma
de
n D
am
4.8
00
4.18
03
.100
1.24
00
.00
04
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4.8
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4.8
52
4.9
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4.9
50
-1.8
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nd
ile
Da
m3
0.9
60
18.0
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11.6
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6.8
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0.0
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9.9
1510
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13.5
90
14.0
28
14.4
66
1.2
85
-3.2
66
Wri
gg
lesw
ad
e
Da
m9
1.2
103
1.8
00
16.9
00
3.0
00
0.0
00
0.0
00
0.0
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0.0
00
0.0
00
0.0
00
28
.80
02
8.8
00
Gle
n B
oyd
B
ala
nce
Da
m0
.150
1.0
00
0.0
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0.0
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0.0
00
0.2
60
0.2
62
0.2
65
0.2
68
0.2
70
0.7
40
0.7
30
Alb
an
y C
oa
st
0.5
20
0.8
02
0.0
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0.0
00
0.8
26
0.8
35
0.8
43
0.8
51
0.8
60
-0.3
06
-0.3
40
Tota
l23
5.6
311
3.9
50
57.
06
52
3.17
33
.90
04
5.6
85
46
.376
54
.24
95
6.6
46
58
.158
38
.39
22
5.9
19
% o
f Firm
Yie
ld
for dom
estic
use
50
%2
0%
3%
40
.1%4
0.7
%4
7.6
%4
9.7
%5
1.0
%3
3.7
%2
2.7
%
% o
f F
irm
Yie
ld
for
all
use
s
74
%
6
3.9
%6
4.5
%7
1.4
%73
.5%
74.8
%57.
5%
46
.5%
Tab
le 7
- D
am
ca
pa
cit
y i
n m
illio
n c
ub
ic m
ete
rs f
or
ma
jor
da
ms
40
Water Resources Inter-Basin Transfer Supply Scheme Supply Capacity and Development Amatola Water draws raw water from a number of systems. The Amatole system is however the only
inter-basin transfer supply system within Amatola Water supply area.
Amatole Water Resource System
The Amatola Water Resources Systems supplies the water requirements of the Buffalo City Municipality
consisting of East London, Mdantsane, King William’s Town and Bhisho urban complex, the town of
Stutterheim and Mlungisi, and villages in the surrounding rural areas.
The water resources of the Amathole System are regulated by seven dams namely, Gubu, Wriggleswade,
Maden, Rooikrantz, Laing, Bridledrift and Nahoon Dams.
The main purpose of Wriggleswade Dam, which was built during the period 1990 to 1994, was to
supplement the shortfall for industrial and domestic use in the East London area. The Amatole System
is expected to have sufficient raw water storage until 2022 taking the effect of HIV/AIDS and migration
patterns into account excluding environmental water requirements. This date of 2022 is conditional
depending on which scenario and strategy is implemented successfully at a specific time.
The Wriggleswade Dam provides an additional safe yield of 31.8million m3/a, of which approximately
18 million m3/a, should be available for domestic or industrial use. The finalisation of the volume of
water required for environmental purposes will reduce the available yield for domestic / industrial use
and thereby moving the augmentation date forward.
Various water demand strategies has been compiled and tabled in the report which needs to be
implemented by the relevant stakeholders in the near future. The effective implementation of these
strategies will then determine the expected augmentation date within the Amatole System.
A study to determine rules to optimise the operation of the System has been initiated by DWA and
completed by the Operating Rules Study Team. The operating rules, which have since been approved by
DWA, entail a transfer of water from the Wriggleswade Dam to dams downstream in the System, when
the water levels in these lower dams drop to predetermined levels. The transfer rates are such that they
sustain the requirements on the dams only and are not used to re-fill the dams. The ASATSG has reviewed
the system yield, based on the adopted operating rules, using the Water Resources Yield Model.
The ASATSG has further reviewed the system yield, based on varying operating rules, the results of which
indicate that the system yield could be further increased to 108.1 million m3/a by adjusting the transfer trigger
dam levels of the downstream dams under scenario 1, i.e. transfer water when Wriggleswade Dam is spilling. The
yield of the System, when operated as an integrated system in accordance with the current approved operating
rules, is some 5.2 million m3/a (5.4%) greater than the sum of the yields of the individual dams. Integrated system
operation is therefore an imperative to ensure reconciliation of supply and requirement going forward.
41
Agreements have not as yet been concluded with BCMM to facilitate the effective implementation of the
new adopted operating rules. Despite the above, the system yield of 100.1 million m3/a, has been used as
the basis for the current reconciliation planning.
The higher possible yield of 108.1 million m3/a (as per ASATSG presentation of June 2012) has however
been considered as a scenario in the reconciliation planning.
Status of Water Resources and Inter-Basin Transfer Infrastructure
The capacity of Wriggleswade Dam can be utilised to supplement either the Bridledrift and or Nahoon
Dams. This is made possible by a tunnel and canal system that has the capacity to transport 3m3/ sec
(259 200 Kℓ/day) either into the Buffalo River and/or Nahoon River catchments. Water can be released
into the Yellowwoods River that flows into the Buffalo River to supplement Laing and Bridle Drift Dams
and/or into the Nkobongo River that flows into the Nahoon River, feeding into the Nahoon Dam.
Previous environmental studies on the KwaNkwebu River, a tributary of the Yellowwoods River, recommend
limiting the rate of transfer between the Wriggleswade and Laing Dams to a rate lower than that for
which the transfer system had been designed, in order to protect an environmentally sensitive reach
of the river. It was initially envisaged that this would limit the yield possible from the System, requiring
by-pass infrastructure to circumvent the constraint.
The new adopted operating rules are however such that transfers are undertaken at lower rates, but
over longer periods of time, thereby avoiding the need for by-pass infrastructure to ensure that the
system yield is achievable. The Amatole Supply System Operation Co-ordination Committee (ASSOCC)
is however still required to review the need for pedestrian bridges across the river.
Figure 1 shows the current high- and low-growth water requirement scenarios against supply available
from the System, as per the current operating rules. Similar graphs have been provided for system yields
based on the individual dams, as well as for various proposed amendments to the current operating rules.
Based on the high-growth water requirement scenario, measures to reduce the requirement or to
increase the system yield would have to be implemented by:
• Yieldofindividualdams(94.9millionm3/a) : 2018
• Currentoperatingrules(100.1millionm3/a) : 2021
• MaximumyieldpossiblefromtheSystem(108.1millionm3/a) : 2026
Based on the low water requirement scenario, the System has adequate yield to meet the requirements
inclusive of supplies to the Great Kei area indefinitely
42
Figure 1
The ASATSG has undertaken a conceptual (desktop) review of the Sandile/Binfield Park Dams supply
augmentation option, identified in the Strategy Study as one of the more favourable augmentation
options due to its low URV and short lead time (no need to construct a dam; it uses surplus yields from
these existing dams). The findings of the review however indicated that the surplus yields available
from these dams to augment supplies to the AWSS are significantly lower than previously anticipated
and that more detailed investigations are required to confirm the dam yields. The need to register and
monitor water use from these dams was also identified. It can also be noted that the Department of
Agriculture and Rural Development (DoARD) are reviewing the agricultural water requirements from
these dams, whilst DWA have initiated processes to develop operating rules for the respective dams.
A screening of surface water supply options has been completed. The following schemes/options are
considered the most viable of the options identified to date and should be put forward for more in-
depth study for consideration for implementation:
• WesselshoekDam(KweleraRiver)–themostfavourableoftheoptionsatthispointintime;
• RavenswoodDam(KeiskammaRiver)–onlyifalargeyieldingdamisrequired;and
• StoneIslandDam(NahoonRiver)–potentialenvironmentalimplications.
Amatole Water Supply System
43
Maintenance to Dams
All storage infrastructures in the form of dams belong to the Department of Water Affairs and capital
improvements and maintenance are planned and funded by the Department.
At Rooikrantz Dam major refurbishment on the inlet works is required. Currently the service gate has
been removed and scrapped. The Department of Water Affairs Head office is designing a new service
gate, and delivery is anticipated in two years, after which the refurbishments of the inlet works will
commence. Divers have inspected the outlet structure recently. The overhead gantry crane was installed.
One of the gate valves is not working and need to be replaced. Delays in this regard have been the result
of non appointment of the maintenance service provider by DWA.
The maintenance work undertaken by DWA at Laing Dam is being severely delayed and this has resulted
in Amatola Water siphoning raw water over the spillway to the Laing Water Treatment Works. The inability
of abstracting raw water at the pre-determined levels of the dam has resulted in poor raw water quality
being treated at the works. Consequently this has resulted in higher than normal operating cost. A new
pipe line is under construction from the dam wall to the works and will be completed by June 2014.
Repair work on the Nahoon Dam intake tower by the Department of Water Affairs has commenced but
has not been completed; project has been on hold due to Departmental supply chain management
hurdles in appointing a suitable maintenance contractor.
Operations and Maintenance of Water Resources and Inter-Basin Transfer InfrastructureAmatola Water maintains and operates 21 dams as governed by the agreement entered into with the
Department of Water Affairs. The water board compiles an annual budget covering maintenance and
operating items for review and approval by the Department of Water Affairs.
In the new financial year, the Department of Water Affairs has approved a budget of R11.06 million. The
Department of Water Affairs and Amatola Water meet quarterly to facilitate the management contract,
through discussion of issues pertaining to normal operations and maintenance, including dam safety
and ad hoc work.
44
Bulk Potable Water Supply Plan
Chapter 8
Planning
Infrastructure Master Plan
Amatola Water developed an Infrastructure Master Plan (IMP) in 2002 to guide the organisation in terms
of upgrading, extending and replacing its water production and distribution infrastructure. This plan has a
20 year horizon and has guided the organisation’s capital expenditure programme over the past decade.
Amatola Water will revise its IMP in the 2014/15 financial year to align with its new strategy. In particular,
emphasis will be placed on ensuring there is sufficient bulk water production capacity to meet the
demands for higher levels of service within its supply area.
Amatola Water will also continue to offer infrastructure master planning services to its clients. Master
planning work has been undertaken for the ORTDM in the 2013/14 financial year. The entire ORTDM will
be supplied from three anchor dams including the Mthatha, Ntabelanga and the Mzintlava Dams that
make provision for water service provision to every household and provisions for higher levels of service
as envisaged in the National Development Plan. Similar Master planning has been completed for the
Ndlambe Municipality where bulk water will be provided to the entire area from the Sandile Dam which
will need to be raised by 10metres by the Department of Water Affairs in the medium term.
High level master planning work has also commenced at a provincial wide level in anticipation of the
creation of the regional water utilities envisaged in the National Development Plan. This work has been
included in the required Due Diligence Report for the establishment of the Southern Regional Water
Utility submitted to the Minister of Water and Environmental Affairs on 31 March 2014.
Provincial Water Sector Planning
The organisation has been involved in various provincial water sector planning activities and forums
in the past. This will continue and the organisation intends to position itself as a more significant
roleplayer in this regard over the next five year period. Specific interventions will include expanding
existing business systems including the GIS and telemetry to provide the basis for developing an Eastern
Cape water specific business intelligence system. This system will have linkages with other relevant
databases in the province.
High level master planning work has also commenced at a provincial wide level in anticipation of the
creation of the regional water utilities envisaged in the National Development Plan. This work has been
included in the IRR Due Diligence Reportsubmitted to DWA on 31 March 2014. Amatola Water will continue
to refine this high level planning with relevant stakeholders in anticipation of the creation of a regional
water utility that will serve the Eastern Cape Province in the near future.
45
Section 29 Business
Contractual Obligations with Customers
All agreements between customer institutions and Amatola Water are circumscribed by requirements
set out in the Water Services Act, the National Water Act, and other relevant local government legislation.
The legislation provides for water board business relationships to be concluded with the recognized
water services authorities that have been tasked with the administration of water services delivery.
Amatola Water regularly reviews its current capacities and assesses the needs of District and Local
Municipalities to ensure any opportunity to expand its primary business of bulk potable water production
is identified and pursued. Amatola Water regularly invests considerable effort to initiate, deliberate and
conclude supply relationships and underlying agreements with both district and local municipal entities.
The outcome of this local government partnership activity is outlined below:
Amathole District MunicipalityAmatola Water provides bulk raw and potable water services to the Amathole District Municipality
(ADM). The water board had, in line with the SALGA/South African Association of Water Utilities (SAAWU)
guidelines, negotiated a two year supply agreement with Amathole District Municipality, signed on 19
March 2004. This agreement has been extended a number of times; it is currently valid till June 2014
and discussions to extend it by a further three years is underway.
Buffalo City Metropolitan MunicipalityBuffalo City Metropolitan Municipality became a Water Services Authority in July 2003, following the
announcement of powers and functions by the Minister of Provincial and Local Government. At the time
of the pronouncement, Amatola Water had already entered into a 30-year supply contract (with an
escape clause) with Buffalo City Metropolitan Municipality. This agreement remains valid.
Ndlambe Municipality Amatola Water has entered into a bulk water supply agreement with the Ndlambe Municipality to supply
the Kenton on Sea and Bushmans River areas with potable water. The agreement was signed on 30
March 2010 and is a 20 year agreement.
Projected Demand: Description of Major Consumers or Consumer Groups and Projected Demand The major consumers or consumer groups supplied are:
District Municipalities The only district municipality being supplied with potable water is the Amathole District Municipality,
(through its local municipalities) as listed in Table 8 below. From the 1st of July 2006 the Amathole
District Municipality has been paying all the accounts for water supplied by Amatola Water to the
various LM’s within Amathole DM. The projected total demands for the District Municipality (responsible
for Amahlathi, Ngqushwa and Nkonkobe Local Municipalities) are as follows:
46
m3/annum
WTW Dam 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
Laing Laing 1 773 715 1 791 452 1 809 367 1 827 460 1 845 735
Binfield Binfield 1 889 212 1 908 104 1 927 185 1 946 457 1 965 922
Dabi Dabi - - - - -
Debe Debe 689 873 696 772 703 740 710 777 717 885
Glenmore Glen Melville 237 334 239 707 242 104 244 525 246 971
Peddie Regional Sandile 1 493 581 1 508 517 1 523 602 1 538 838 1 554 226
Rooikrantz Rooikrantz - - - - -
Sandile Sandile 2 969 050 2 998 741 3 028 728 3 059 015 3 089 605
Upper Mnyameni Mnyameni 108 219 109 302 110 395 111 499 112 614
Masincedane Mnyameni 482 332 487 155 779 155 815 655 852 155
Totals 9 643 317 9 739 750 10 124 276 10 254 227 10 385 113
Table 8
Local Municipalities
Buffalo City Municipality and Ndlambe Municipality projected water demands are as follows:
Buffalo City Municipality
m3/annum
WTW Dam 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
Nahoon Nahoon 11 928 239 12 293 239 15 213 239 15 943 239 16 673 239
Laing Laing 7 292 743 7 833 528 7 833 528 7 961 138 8 090 024
Rooikrantz Rooikrantz - - - - -
Sandile Sandile 3 196 647 3 228 613 3 260 900 3 293 509 3 326 444
Peddie regional Sandile 316 597 319 763 1 195 763 1 305 263 1 414 763
Totals 22 734 226 23 675 143 27 503 429 28 503 148
Table 9
Ndlambe Municipality
47
m3/annum
WTW Dam 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
Kenton-on-Sea + Bushmans River Mouth Supply- RO Plant
Sea wells & Diaz Cross Boreholes 777 675 785 452 793 307 801 240 809 252
Totals 777 675 785 452 793 307 801 240
Table 10
Individual Consumers
Individual consumers are supplied with potable water directly by Amatola Water only under exceptional
circumstances. In principle, contracts should be entered into with the local or district municipality for
water supply and not with Amatola Water. There are, however, a number of instances where, for historical
or other practical reasons, potable water has been supplied directly to end users by Amatola Water.
Amatola Water is in the process of discussing this topic with ADM to transfer all private accounts to the
ADM. This transfer of private customers to ADM will take effect from 1 July 2014. The respective water
treatment works supplying individuals or groups of individuals and their projected water demands are
outlined in Table 11.
Individuals
m3/annum
WTW Dam 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
Nahoon Nahoon 77 800 78 578 79 364 80 157 80 959
Laing Laing 16 907 17 076 17 247 17 420 17 594
Rooikrantz Rooikrantz - - - - -
Sandile Sandile 11 409 11 524 11 639 11 755 11 873
Binfield Binfield - - - - -
Peddie Regional & Bhirha Sandile 22 958 23 188 23 420 23 654 23 891
Totals 129 075 130 366 131 669 132 986 801 240
Table 11
48
Assurances of Supply to Meet Demand
The Amatola Water infrastructure is upgraded to meet demands as required. The upgrading of
infrastructure is guided by the Amatola Water Infrastructure Master Plan. The plan provides for a 20
year planning horizon.
Amatola Water’s intention is to upgrade and extend six of its water treatment works that supply the
Nkonkobe, Ngqushwa, Amahlathi and Buffalo City Metropolitan Municipalities over the next three financial
years. This will allow for an improved level of service (750ℓ/household/day) which will reduce service
delivery backlogs, improve rural livelihoods and support productive use activities as envisaged in South
Africa’s Constitution and developmentally focused legislation. The additional benefit of extending Blue
Drop quality water (SANS 214 Class 1 water) services to a significant portion of the rural communities
located in the Amathole District Municipality and the Buffalo City Metro Municipality will also be realized.
This will have a significant positive impact on the health of the rural communities to be served by these
water supply schemes.
Nahoon Water Treatment Works
A feasibility study has been conducted at the Nahoon Water treatment Works to determine how the
spare capacity can be utilized to serve the eastern portion of the City of East London and this project
has been included in the organisation’s capital expenditure programme. This project has been planned
in consultation with Buffalo City Metropolitan Municipality representatives to ensure that the sub-regions
infrastructure capacity is efficiently and effectively used to meet the water demand in the future. The
first phase of this upgrade will result in an additional 20Mℓ/day capacity being provided by the 2015/16
financial year. An additional 20Mℓ/day will be provided by the 2020/21 financial year. This additional
capacity will be utilized to supply the eastern side of East London.
Binfield Water Treatment Works
The Binfield WTW, which has a capacity of 4.8 Mℓ/day, was constructed during 1984. The Binfield WTW
is operated at 100% of its treatment capacity at 4.8Mℓ/day. This treatment works has reached its design
capacity and will be upgraded to 10Mℓ/day to make provision for the growing demand in the area and
to supplement shortfalls in the Sandile Dam supply area. A consultant has been appointed to do the
design of this upgrade.
Masincedane Water Treatment Works
The Masincedane WTW with a current design capacity of 4Mℓ/day will be augmented to 6 Mℓ/day to make
provision for the growth in water demand in the area due to the implementation of housing projects by the
Amathole District Municipality within Keiskammahoek which will increase the current output of 2.3Mℓ/d to
4 Mℓ/d in the near future. A consultant has been appointed to do the design of this upgrade.
49
Peddie Regional Water Treatment Works
Amatola Water will upgrade the Peddie Regional Water Treatment Works to increase the plant’s capacity
from 6.5 Mℓ/d to 13 Mℓ/d and improve the raw water supply and potable distribution infrastructure. The
plant supplies water to approximately 13303 households. Currently 1563 households in the supply area
are not served. The plant is currently supplying above its design capacity and does not have any spare
capacity. Sufficient spare yield is available from the water resource to allow for the improved level of
service and sustain the water supply in the area. A consultant has been appointed to do the design of
this upgrade. Note that this upgrade will be done together with the Sandile augmentation option.
Sandile Water Treatment Works
Amatola Water will upgrade the Sandile Water Treatment Works to increase the capacity of the plant from
18 Mℓ/d to 80 Mℓ/d over the next 10 year period. The plant is currently supplying above its design capacity
and does not have any spare capacity. As stated above the Sandile Dam wall will be raised by 10m to
empound sufficient water to supply the entire Sandile, Peddie and the Ndlambe water supply areas.
The first phase of this upgrade is in progress. This will result in the Sandile works being upgraded to 40
Mℓ/day and the linkage between the Sandile and Peddie water supply systems being completed. The
following phase will simultaneously see the dam wall being raised and a further 40Mℓ/day of treatment
capacity being created at the current Sandile works site.
Debe Nek Water Treatment Works
Amatola Water will upgrade the Debe Nek Water Treatment Works to increase the plant’s capacity from
1.5 Mℓ/d to 5 Mℓ/d via the installation of a portable package plant. The associated bulk water conveyance
infrastructure will also be upgraded to improve the level of service to some 2847 households that are
currently supplied by the scheme and also allow for future developments. Currently, 155 households are
not served in the supply area.
The plant is currently supplying above its design capacity. Amatola Water has an active water demand
management programme in place and has maximized water loss savings at present. Sufficient spare
yield is available from the water resource to allow for the treatment works to be upgraded to sustain and
improve the water supply to the area. A consultant has been appointed to do the design of this upgrade.
Impact of Water Conservation and Demand Projections
Various efforts to reduce water losses have been ongoing for a number of years. Routine maintenance
and inspections throughout the abstraction, treatment and distribution infrastructure have been
invaluable in minimising water losses. Furthermore, monthly water balance reviews are used to identify
water losses and to take appropriate action in reducing such losses. One of the tools used in improving
loss monitoring is a telemetric network.
50
A vigorous programme to combat water losses on the bulk reticulation is pursued by Amatola Water,
which includes ensuring that all supply points are appropriately measured and monitored on a monthly
basis. The efforts to better manage water demand in the services region are monitored jointly by all
relevant parties on a continuing basis.
In addition to normal leaks, bursts and overflowing reservoirs, inaccurate or malfunctioning meters
result in apparent losses. Amatola Water reviews its own system infrastructure performance regarding
water loss control on a continuing basis to minimise wastage of the resource. To promote this effort,
it has embarked, during the past years, on the installation and calibration of water meters. Amatola
Water carries out relevant repair and maintenance work on these water meters. Further improvement
on water metering, there are 6 billing and 22 balancing meters connected to the telemetry system for
remote monitoring. Part of the three year telemetry plan is for Amatola Water to identify and connect
additional meters to the telemetry system.
The financial system is also used together with the meter diagrams to compile a parent-child relationship,
as a tool to assist its operations in identifying critical water loss areas. Water balance reports are
compiled on a monthly basis. This data is then used to improve metering and increase revenue. Policies
affecting water balances that have been approved by the Board are listed below:
• IllegalConnectionsPolicy;and
• MeterCalibrationandMaintenancePolicy.
Amatola Water is in frequent communication with customers regarding the implementation of demand
management programs.
Critical interventions are currently being undertaken that includes the development of a comprehensive
metering programme that will incorporate both infrastructure owned by Amatola Water and managed
under Right of Use contracts.
The organisation’s telemetry system will also be expanded and integrated with current monitoring
systems to ensure the supply of water is monitored and controlled to minimize unplanned interruptions.
Projected Water Availability and Resources Development
Description of Ma jor Sources of Water and Abstraction Rights
Annexure E lists major dams, and compares expected raw water requirements against respective firm
yields, to determine the surplus or shortfall in water supply.
A study undertaken by consultants on behalf of DWA for the Amatole System (Gubu, Wriggleswade,
Laing, Bridle Drift, Rooikrantz and Nahoon Dams) taking the effect of HIV-Aids into account, indicated
that there should be sufficient water available until 2022. It is anticipated therefore that no new resource
51
development is required in the short-term. With the Amatole Water System Reconciliation Study it is
proposed to implement the Environmental Water Requirements, which brings a total new demand into
consideration which will have a serious impact on the availability of resources. This will then move the
augmentation dates for raw water sources forward, however with the proposed strategy framework
to improve water demand management these augmentation dates can be delayed. The registered
volumes need to be adjusted, due to the increased levels of demand. As no final decision has been
taken on the possible implementation of environmental water requirements and it will be discussed
and workshopped during 2014/15 to ensure it is implemented appropriately. A pro-active approach will
support long term forward planning on new water resource requirements.
Ability of Available Resources and Abstraction Rights to Meet Demand
From Annexure E it is clear that most of the schemes will be able to meet the estimated demands.
Any shortfall of water at Nahoon Dam could or will be supplemented from Wriggleswade Dam when needed.
The Amatole Water Resources Systems Analysis suggested that the available yield at Wriggleswade Dam
be split in a 40% to 60% allocation, with 40% of the available yield to Nahoon Dam and 60% of the
available yield to Bridledrift Dam. This was also the best option for obtaining the best water quality results.
Any shortfall in supply from Rooikrantz Dam needs to be supplied from Laing Dam. This is possible by
duplicating the King William’s Town water needs at the Laing WTW. Amatola Water is currently not able
to provide the full additional demand required from the Laing WTW by King William’s Town during times
of drought due to constraints in conveyance capacity.
Over allocation of water from Rooikrantz and Maden Dams (4.6Million m3/a versus the historical firm
yield of 3,3 million m3/a (recent review of the safe yield has increased this number to 4.1 million m3/a
inclusive of Maden Dam) need to be addressed by the Department of Water Affairs by reviewing the
allocations and operational requirements. It is also to be noted that the Rooikrantz WTW was closed
due to the increased treatment capacity of the ADM Kei Road WTW and water is now supplied to the
Rooikrantz area from the Wriggleswade dam, thereby reducing demand on Rooikrantz Dam.
Amatola Water is operating the Rooikrantz Dam in accordance with the proposed operating rules as set
out in the Amatole Water Resources System Analysis phase 2 study.
The reconciliation study and the recently initiated generic operating rules study for drought management
will provide new guidelines on the existing and future capacity of the systems and optional management
requirements. These new operating rules had been finalized and are used in operating the system effectively.
The reconciliation study has a different approach from the previous studies undertaken. The adopted
strategy of the study has not selected a “favoured scenario” but was to identify which interventions and
52
potential assets should be studied to allow for a range of possible water requirement scenarios to be
met through a combination of:
• Interventionsthatwouldreducewaterrequirements;
• Interventionsthatwouldresultintreatedwastewaterbeingreturnedtothewatercoursesto
augment the yields of the dams or to contribute towards the EWR;
• Interventionsthatwouldresultintreatedwastewaterbeingreusedand
• Thecreationofbulkwatersupplyassetsthatwouldincreasetheavailabilityofbulkwater.
A Decision Support Tool (DST) was developed whereby 13 scenarios were identified which were analyzed
to determine the desired intervention or asset to be implemented by the earliest date identified in the
study. A Strategy Steering Committee was established to roll out and implement the proposed strategies.
Impact of Reducing Water Loss or Improving Unaccounted for Water
The projections in the Amatola Water Infrastructure Master Plan have confirmed that it is unlikely that any new
dams would be needed by 2022, primarily due to the availability of water supply from Wriggleswade Dam.
This date of 2022 is also debatable as, according to the new reconciliation strategy document that makes
provision for environmental water requirements, this date moves forward to 2012 /2017 depending on
which scenario and strategy is implemented successfully at a specific time.
Reducing water loss and improving unaccounted for water will delay further resource development by
contributing to the availability of supply hence the focus by Amatola Water to assist both the Amathole
District Municipality and Buffalo City Metropolitan Municipality with water demand management
programs on reticulation networks where possible.
New Resource Development Required or Being Undertaken as well as Applications for Water Use Licences
Amatola Water reviews its projected water use on an annual basis. Due to a number of changes in
demand, Amatola Water will review some of the allocated water users in terms of the existing water use
license issued to the water board.
Purchasing of additional water rightsAmatola Water will be requesting adjustment to certain existing allocations, due to the growth in demand
that has increased systematically over the years on certain schemes.
53
Bulk Infrastructure Supply Capacity and Development
Table 12 provides a broad description of the current bulk water supply infrastructure operated by Amatola Water.
SchemeCapacity (Mℓ/day)
Annual Average
Daily Demand (Mℓ/day)
Total length of gravity
mains (km)No. of
reservoirs
Size of biggest
reservoir (Mℓ)
Number of pumping stations
Max. head on rising
mains
Nahoon 33.7 37.26 16 2 13.65 3 115
Laing (was 27.3 Mℓ/d) 33 27.49 109 57 33 6 250
Sandile 18 20.16 175 41 12 2 141
Peddie regional (includes Bhirha) 6.6 7.42 28 12 5 1
Binfield Park 4.8 4.80 24 8 2.5 1
Bhirha (closed) 4.3 0.000 46 9 5 2
Masincedane 4 2.3 31 7 1 1
Debe 1.5 2.16 62 21 1 3 65
Rooikrantz 1.2 0.000 35 10 6 3
Dabi 0.72 0.000 15 3 0.3 2 25
Upper Mnyameni 0.28 0.268 27 9 1 2 115
Glenmore 0.5 0.93 8 1 1 1 65
Albany Coast 3.68 2.69 10 4 5 4 65
Total 112.28 106.722 586 184 86.45 31 841
Table 12
Ability of Current Significant Infrastructure Components to Meet Demand
Amatola Water is in the process of addressing infrastructure development where schemes are operated
at its maximum treatment capacity or even above its maximum capacity.
New Infrastructure Planned
The Amatola Water Capital Expenditure program for the 2014/15 to 2018/19 financial years is presented
in Annexure H. The planned capital expenditure program is funded from revenue generated from primary
and secondary services, grant funding and from loans where required. A summary of the capital budgets
for the next three years is presented in Table 13:
54
Funding Source 2014 2015 2016 2017
Amatola Water Reserves 14 251 337 0 0 0
Loan 0 0 0 0
Grant 0 148 147 841 335 061 351 16 697 500
Totals 14 251 337 148 147 841 335 061 351 6 697 500
Table 13
The planned expenditure programme will result in Amatola Water strengthening its balance sheet and
improving long term sustainability of the organisation. An additional initiative in terms of growing the
organisation’s bulk infrastructure footprint includes engaging DWA to promote the idea of the transfer
of bulk water infrastructure to Amatola Water. The Regional Bulk Infrastructure Grant (RBIG) in particular
is allocated to DWA for implementation and to make the decision to whom ownership of completed
infrastructure shall reside. Amatola Water intends presenting a proposal that it is best positioned to
own and ensure appropriate operation and maintenance of bulk water service infrastructure outside the
Metropolitan areas in the Eastern Cape Province.
Status of Bulk Potable Water Infrastucture
The status of the bulk potable water infrastructure is monitored on a time basis against the following
industry norms for the functional life of elements:
Element Functional Life (Yrs)
WTW Buildings and Civil Works 50
Reservoirs 35
Pumping Station Buildings and Civil Works 35
Pipelines 30
WTW Mechanical 20
Pumping Station Mechanical 20
Pumping Station Electrical 15
WTW Electrical 15
Plant Machinery 5
Table 14
Table 15 provides information regarding the construction dates of the original schemes and extensions,
if any, that have been implemented:
Scheme Year original works were constructed Year extensions implemented Age (years) in 2014
Nahoon 1968 1987, 2009 27
55
Laing 1949 1979, 2005,2009 35
Sandile 1981 2005 33
Peddie Regional 1999 2002, 2008 15
Binfield Park 1986 28
Bhirha 1990 Mothballed
Masincedane 1978 2009 36
Debe Nek 1986 28
Rooikrantz 1987 Partly decommissioned
Dabi 1996 2010 Decommissioned
Upper Mnyameni 1987 27
Glenmore 1986 28
Albany Coast RO 1994 2010 20
Table 15
The infrastructure elements are also monitored on a performance basis – which may be shorter or longer than the
time base norms. In general, the condition of the Building and Civil assets is good since the oldest schemes were
constructed some 30 years ago (compared with the functional life of the buildings and civil works of 50 years).
Electrical assets have been repaired, refurbished or replaced, when necessary. The general conditions status
of these assets is therefore generally very good. The functional life of electrical assets is, however, 15 years and
it is anticipated that replacement of these assets will need to be undertaken by 2014 at the following schemes:
Estimated cost of work stimated cost of work scheduled for: scheduled for:
Scheme 2013/14 2014/15 2015/16 2016/17 2017/18
Laing
MCC’s & LV Switchboards for booster pumping stations R600 000 R750 000 R0 R0 R0
Nahoon
Isolators / Earthing Switches – 400A R350 000 R400 000 R0 R0 R0
Upgrade old pump station panels R400 000 R0 R 0 R0 R0
Upgrade switch gear for and panels at new pump station (Electrical) R600 000 R1m R0 R0 R0
Masincedane
MCC’s & LV Switchboards R0 R50 000 R0 R0 R0
Debe
Replace electrical panels R 500 000 R 0 R 0 R 0 R 0
Totals R 2 450 000 R2 790 000 R0 R0 R0
Table 16
56
A similar comment as for the electrical assets applies to the mechanical assets. The functional life of mechanical
assets is 20 years and it is estimated that the cost of mechanical assets to be replaced by 2014 is as follows:
Estimated cost of work stimated cost of work scheduled for:
Scheme 2013/14 2014/15 2015/16 2016/17 2017/18
Nahoon
Pump R600 000 R500 000 R0 R650 000 R0
Laing
Booster pumps R400 000 R450 000 R500 000
Sandile
High lift Pump R650 000 R900 000
Valves R300 000
Craighead
3 High lift Pumps
Pump set R900 000 R600 000
Totals R 2 550 000 R1 850 000 R0 R1150 000 R900 000
Table 17
As a result of the intensive refurbishment programmes, water treatment facilities are generally in a good
working condition.
Networks and reservoirs are generally in good working condition. The identification and location of all
critical items in the network has been done and the planned maintenance schedule completed. It is
expected that additional capital expenditure in the foreseeable period will be limited to the provision
of effective cathodic protection for key bulk lines, as well as for the alleviation of ‘bottleneck’ flow
restrictions in certain networks.
Operations and Maintenance of Bulk Potable Water Supply Infrastructure
Classes of Water Treatment Works
The 10 water treatment plants and their distribution networks have been classified in terms of regulation
R2845 of the Government Gazette, 27 December 1985. Water treatment works currently categorised as
Class A are Laing, Nahoon and Class B Peddie, Binfield, Sandile while Class C water treatment works are
Debe, Masincedane, Glenmore and Mnyameni have been evaluated under the same regulations and are
listed as Class D water treatment works.
The classification of the Albany RO Plant is Class C at present. The Rooikrantz Plant was partly
decommissioned and form part of the Kei Road Water Treatment Works.
57
Operators
It is the water board’s practice to ensure that all facilities are operated by suitably qualified personnel
in line with draft regulation 17. In order to meet future needs of operating personnel, the board continues
to train operators who are recruited from communities within its operational area. To date, Amatola
Water has produced plant operators through its annual learnership programme who have achieved
the level N3 in Water and Wastewater Treatment. The training programmes are the combination of on-
job-training and the study of theory courses at the Buffalo City Further Education and Training College.
Amatola Water has been able to employ most of the learners once they have completed their training.
Radio Telemetry and Scada
One of the enabling factors in operations management is the radio telemetry infrastructure that has been
installed over the formative years of the board. The SCADA (Systems Control and Data Acquisition) system
has been supplied by Adroit to provide operators with graphic and text interface in control rooms.
The SCADA system monitors Amatola Water’s bulk purified water reticulation. The reticulation system
consists of three large plants and four smaller plants, with the balance of the outstations being reservoirs
that require monitoring. The SCADA actively monitors plant operation and reservoir levels and reports
back via radio telemetry to a central station operating on Adroit . Remote stopping and starting of all
the major pump stations is also possible via the telemetry system. Amatola Water seeks to extend the
utilization of the system to other corporate functions such as Planning and Development, Water Resource
Management and Finance with the aim to continue to improve the quality and reliability of service.
Meter Reading
Water meters are read on the 20th of the month and signed by the plant superintendents and senior
plant superintendents before they are forwarded to the debtors department for billing.
MaintenanceThe Regional Engineering Manager leads a multi-disciplinary maintenance team comprising civil
maintenance, water meters, radio and telemetry, planned maintenance, pipelines, property services
as well as the electrical and mechanical maintenance sections. Owing to the relatively small size of
Amatola Water, the maintenance team is largely centralised at the Nahoon Regional Complex, with the
exception of the pipeline team which is based at the Laing Dam facility.
The asset maintenance strategy encompasses a hybrid of proactive and reactive maintenance
as guided by failure trends and analysis of the effects of failures. In revising maintenance plans the
maintenance planning team consults with supervisors and artisans to ensure maximum effectiveness.
Most of the maintenance work is done in-house, while more specialised refurbishment and installations
are outsourced. The planned maintenance schedule and the dedicated resources for the entire pipeline
network are in place and is in the process of being systematically implemented. Amatola Water is
confident that this will further reduce the number of pipeline breakages and bursts and consequently
the distribution network water losses will be significantly reduced. The asset maintenance strategy is
thus aligned to ensure that service delivery is optimized in terms of efficiency and effectiveness.
58
A BAAN Enterprise Resource Package (ERP) is used across all functions of Amatola Water, including asset
maintenance. The computerised maintenance management system (CMMS) inclusive of responsibilities
is currently being refined to generate reports that provide information on key performance areas of
the corporate scorecard. Consequently, asset maintenance performance management reports are
generated to monitor performance in the targeted and key performance areas of the asset maintenance.
Furthermore, all emergency deviation requests will be channeled through the Control Room which is
equipped with qualified and technically skilled staff, appropriate equipment and technology (BAAN
and SCADA). This is to improve the response times, quality of service and accuracy of information on
breakdowns, emergency work, repairs and general maintenance.
Significant Future Changes in Operations and Maintenance Arrangements
Amatola Water has adopted a new strategy where the organisational focus will be concentrated on
growing its section 29 business. This strategy will see Amatola Water growing the section 29 business
from the current 85 to 150 Mℓ/day production therefore the operation and maintenance will be designed
to support this strategy and this will see our secondary business reduce to 30% in relation to 70%
primary.
International Standards Organisation (ISO) System
Amatola Water has embarked on using ISO Systems (ISO 9001, 14001, 17025 and OHSAS 18001) within the
entire organisation. A roll out program for the full implementation of this ISO System and accreditation
will be conducted in phases beginning with OSHAS 18001.
During the current financial year, Amatola Water has been successful in retaining accreditation for
OSHAS 18001. Amatola Water are currently embarking on programme to maintain its OSHAS 18001
accreditation with SABS.
Section 30 Business
Amatola Water is engaged in various section 30 business activities related to bulk potable water.
Current clients include the Amatole District Municipality, the Makana Municipality, OR Tambo District
Municipality and the National Department of Public Works.
Amatole District Municipality
Amatola Water has been over the past year, as part of the 3-year Bulk Water Service Provision Contract,
been operating the ADM bulk water services infrastructure since July 2009. This contract has been
extended with another 3 years ending 30 June 2014. The ADM has decided to undertake the reticulation
portion of the water service provision function itself. This contract is currently being phased out and some
Amatola Water staff has been employed by ADM for continuity. This will be concluded by 30 June 2014.
59
Amatola Water has adopted a new
strategy where the organisational focus
will be concentrated on growing its Section
29 business.
60
National Department of Public Works
Amatola Water has signed an annually renewable Operation and Maintenance Agreement with the National
Department Public Works for the operations of their water treatment works at the following locations:
Treatment Works Process Mℓ/d
1. Slagboom WTW Pressure filter system 2
2. Fort Brown WTW Pressure filter system 0.26
3. Patensie WTW Pressure filter system 2.0
4. Kirkwood WTW Pressure filter system with lamina plates 1.8
5. Seafields SAPS Borehole System Borehole 0.03
6. Various small installations at other police stations, prisons and military bases NA
Total 6.09
Table 18
Makana Local Municipality
Grahamstown is currently experiencing severe water supply challenges [water outages] emanating
from a range of challenges which include (a) institutional capacity and skills to manage the water
business (b) drought conditions that currently prevail and (c) old water pipelines and old absolute
electrical infrastructure and (d) demands that exceeds the current raw water supply.
The current water outages have caused major frustrations to the extent that Rhodes University staff,
students and academics, lead a demonstration and handed a petition to the Municipal Manager on 14
August 2013. As students are linked to families all over SA, the frustration of this failure is felt by families
of students across South Africa.
Amatola Water is currently appointed by the Makana Local Municipality to operate and maintain the
Waainek, James Kleynhans, Riebeeck East and Alicedale water treatment works. This appointment
commenced in October 2013 and will continue until 2018
OR Tambo District Municipality
Amatola Water is currently managing 19 water treatment works under the five year Blue Drop
Management contract ending June 2018. This contract is mainly focusing on Blue Drop management of
the entire 19 ORTDM water treatment works, as the others interventions will be dealt with as projects.
61
Bulk Wastewater Treatment and Disposals
Chapter 9
Primary BusinessAmatola Water owns one small 0.1Mℓ/day activated sludge pond system with a final evaporation pond
located at the Nahoon dam that is operated by the Primary Business Unit. The works is operated and
maintained appropriately to ensure compliance with the required discharge standards.
Secondary BusinessThe majority of waste water treatment work undertaken by Amatola Water to date is related to secondary
business. Amatola Water currently has the Amatole District Municipality and the Department of Public
Works as clients for this operation and maintenance service.
The goal of these contracts is continuous improvement of effluent quality and reliability for the works.
In this regard the organisation has a five year target of achieving an average of 70% effluent quality
compliance score for the waste water treatment works it operates. In terms of reliability the five year
target is to ensure that the service has a 90% availability. A key initiative in achieving this target is the
participation in the Department of Water Affairs Green Drop Certification Programme that promotes
excellence in water service provision.
Both District and Local municipalities have been made aware of the water board’s capabilities with
regard to provision of bulk waste water services. Amatola Water actively engages with the municipalities
on a regular basis to position Amatola Water as a potential provider for consideration in the future.
Amatole District Municipality
The water board is currently assisting the Amatole District Municipality (ADM) with management support
services in the local municipalities of Mbhashe, Mnquma, Great Kei, Amahlathi, Nkonkobe, Ngqushwa
and Nxuba. The contract ends in June 2014.
Included in this contract is the operation and maintenance of the following WWTW for the ADM:
62
Treatment Works Process Mℓ/d
1. Butterworth Biological Filtration 11.00
2. Fort Beaufort Activated Sludge Treatment 1.50
3. Komgha Activated Sludge Treatment 0.70
4. Bedford Oxidation Ponds 0.50
5. Adelaide Activated Sludge Treatment 0.74
6. Dutywa Oxidation Ponds 1.10
7. Kei Mouth Oxidation Ponds 0.685
8. Morgans Bay Transfer Pump Station
9. Cathcart Activated Sludge Treatment 0.70
10. Chinsta Oxidation Ponds 0.30
11. Peddie Activated Sludge Treatment 0.25
12. Seymour Activated Sludge Treatment 0.25
13. Keiskammahoek Activated Sludge Treatment 0.57
14. Middledrift Activated Sludge Treatment 0.25
15. Amabele Oxidation Ponds 0.06
16. Cwebe Oxidation Ponds
17. Mrhawulize Oxidation Ponds
18. Mendu Oxidation Ponds
19. Willowvale Oxidation Ponds
20. Elliotdale Oxidation Ponds
Total 18.605
Table 20
National Department of Public Works
Amatola Water has signed an annually renewable Operation and Maintenance Agreement with the National
Department Public Works for the operations of their waste water treatment works at the following locations:
Treatment Works Process Mℓ/d
1. Middleburg Agricultural College WWTW Biological Filtration 2
2. Middledrift Prison WWTW Oxidation Ponds 0.7
3. Healdtown SAPS WWTW Activated Sludge 0.2
4. Kwaai Brand Complex WWTW Activated Sludge 0.2
5. De Blaar Complex WWTW Bio Rotating Disk Treatment 0.2
6. Storms River WWTW Activated Sludge Treatment 0.3
7. Grahamstown SANDF WWTW Sewerage System 0.5
8. Patensie WWTW Biological Filtration 2.0
9. Kirkwood WWTW Biological Filtration 1.0
Total 5.3
Table 21
63
Retail and Industrial Water
Chapter 10
Retail Water Supply
Amatola Water participates on a very small scale as a retail water services provider within the Amathole
District Municipality in the Buffalo City, Ngqushwa and Nkonkobe Local Municipalities. This is included in
its primary business. No secondary business in the retail or industrial water supply spheres of the water
service provision function have been secured to date.
Industrial Water Supply
Water Service Authority Approvals
Amatola Water’s industrial clients and current demands are presented in Table 21:
No. Water Service Authority Local Municipality Industry Ave. Daily Demand Water Class
1. Amathole District Municipality
Ngqushwa Fish River Sun 0.48Mℓ/ day Class 1
2. Amathole District Municipality
Ngqushwa Mpekweni Beach Resort
0.11Mℓ/ day Class 1
3. Buffalo City Municipality Buffalo City Da Gama Textiles 3.39Mℓ/ day Class 1
Total Average Daily Industrial Demand 3.98Mℓ/ day
Table 21
The Amathole District Municipality and Buffalo City Municipality are aware of the supply of water to the
abovementioned industrial clients by Amatola Water.
Contractual ArrangementsAmatola Water has concluded water supply contracts with its industrial clients. The Amathole District
Municipality and Buffalo City Municipality have expressed no interest to date in taking responsibility for
the industrial supply contracts.
Institutional ArrangementsThe current technical and financial institutional arrangements within Amatola Water cater for its
industrial clients due to the very limited number of this type of client.
Demand for Service Amatola Water is not currently experiencing a demand for industrial water. Should this occur in the
future, Amatola Water will proactively engage with the relevant water service authority to ensure the
optimum solution to meeting the prospective clients’ water demand can be accommodated.
64
Other Activities
Chapter 11
Other Support Services
Procurement and Preferential Procurement
Procurement is now a full Supply Chain Management (SCM) Unit, combining both Procurement and logistics
unit. The SCM policy was approved in the 2012/13 financial year with daily implementation now taking place.
Supply Chain Management Alignment
The strategic purchasing objectives introduced include demand, acquisition and contracts management
activities such as cost and historical analyses, short term contracts and research into the acquisition
of critical items, as well as ensuring effective contracts management. Key high value contracts such as
fleet, medical aid and insurance are being researched to determine more suitable alternatives to the
business of Amatola Water.
Construction procurement guidelines have been implemented as prescribed by the Construction
Industry Development Board (CIDB). The construction procurement processes will be aligned on a much
larger scale in the coming year. All SCM officials will attend CIDB training from time to time to familiarize
themselves with changes that might take place.
The implementation of the SCM policy over the current financial year has highlighted the urgency to
align the existing SCM staff roles with the policy. A capability assessment has been conducted and was
followed by a proposed SCM unit organogram. Existing staff will be retrained and placed in the structure.
New staff will be recruited where gaps remain.
Supplier performance is monitored to ensure quality of service through a Supplier Performance
Management system. A review of the format of data on the ERP system is also being undertaken in order
to ensure accurate information for reporting purposes. Supplier performance results intend to serve as
a platform from which vendors will receive recognition for their performance going forward. This is the
ongoing process.
Strategies for critical goods and services have been identified and implemented such as the
regionalization of the engineering maintenance contracts. This ensures the availability of services, and
the tightening up on control measures through service level agreements. Certain contracts established
also allow opportunities for the emerging micro enterprise in line with preferential procurement goals.
Opportunities for improved services are explored on a continuous basis.
65
An efficient and effective vendor database has been maintained within the past year and has pre-
empted operational expansion by equipping itself with new suppliers, regionalization of supplier data,
synchronizing with the CIDB database, BBBEE status updates and a database cleansing exercise all to
ensure integrity of information. Procurement has become responsive and proactive in managing supply
and demand ensuring adequate information flow for reporting purposes. As part of this process and to
ensure quick service turnaround times, the procurement section maintains a flexible and responsive
attitude towards servicing its customers and clients and will continue to decentralize geographically
within various areas to support operational workflow.
Preferential Procurement
Amatola Water makes use of the BBBEE procurement recognition levels and goals as contained within
the Codes of Good Practice.
Definite goals to be achieved are pursued annually and preferences are targeted with each purchase
where possible, taking into account the needs of the business. Preferential procurement targets have
been included in the Supply Chain Management policy and the organisation endeavours to engage with
Level 4 or higher rated BBBEE contributors.
Detailed reporting in terms of preferential procurement performance on specific projects is done. The
results are used to identify poorly performing areas and to focus on increasing such levels. Results have
also become significant to clients who are now able to report on the level of business that has been
awarded to previously disadvantaged companies.
Two months after the approval of budget, SCM will produce a procurement plan for the entire Amatola
water with a target of 20% savings on goods and services against the budgeted amount.
The BBBEE targets will be set up front for each business case produced.
SMME Development
Amatola Water has established a SMME Development policy to formalize its commitment to small
business development. A full time development facilitator facilitates the various activities associated
with developing suppliers such as supplier education and information sessions. The focus is targeted on
increasing the capacity of suppliers on the database and also the development of skills within critical
supply areas in order to provide more opportunities and experience to small business and thereby grow
a sustainable base of suppliers. The focus of attention has shifted towards certain sectors where there
are few suppliers and barriers to entry are vast.
This unit within supply chain is also responsible for setting up the panel of pre approved service providers
and maintain the lisT.
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Logistics
Stores
Amatola Water operates three other main stores at Nahoon Dam and Laing Dam. The store at Nahoon
Dam keeps certain emergency stocks of chemicals and a wide variety of smaller items and consumables
that are either required on short-notice or more convenient to have on site. The Laing Store supports
holds pipes, couplings and related items to support the pipeline teams based at Laing and Sterkspruit
respectively. The overall stock-holding value and quantity remains low with the focus on only holding the
necessary minimum stocks. The remainder of items is obtained directly from suppliers, who also hold
critical stock in certain cases depending on the nature of the item and their contract with Amatola Water.
Various chemical stocks is also held at the relevant works in a combination of consignment stock from
the supplier and Amatola Water owned stock.
Smaller offline stores of engineering spares are also in place at and Butterworth. These hold stock
for quick access of key critical spares used in the greater area. In the year coming forward similar
arrangements are to be rolled out in Albany Coast and Mthatha as well.
Fleet
With the geographically spread out nature of Amatola Water a reliable fleet of vehicle is crucial for
Operations to be able to consistently deliver on their mandate. As such, ensuring the reliability of the fleet,
with minimum downtime on vehicles continues to be an area of focus and continuous improvement. This
includes reducing turnaround times on repairs, accident claims and streamlining the service process.
Good governance of the fleet is also paramount, highlighted further by the costs of running such as
fleet and the ease of abuse if proper controls are not put in place. This starts with regular inspection
of the vehicles and ensuring the good general care and condition of the vehicle. Detailed analysis
of fuel consumptions is done monthly with any major abnormally in usage reported immediately for
further investigation. The vehicles are also fitted with a vehicle tracking system which provides details
of the locations and use of the vehicles to allow supervisors to monitor the usage. The tracking system
also monitors green zone driving by drivers, which equates to encouraging drivers to drive at the
correct speeds, breaking and revving to ensure safe and economical driving. Vehicle accidents are all
investigated in turn and as appropriate action put in place to reduce the chances or re-occurrences. In
certain cases the vehicle tracking system assists with these investigations.
The fleet has continued to consistently in-line with the growth in the organisations operations with 132
standard vehicles, 9 trucks, 1 bus and 34 trailers and alternate vehicles totalling 176. The majority of
these vehicles are 4X4 single cab bakkies. Many of the vehciles are on a Full Maintenance Leases basis
and where economically appropriate Amatola Water owns the vehicles. This approach has continued to
prove beneficial by providing better pricing through having larger buying power, better turnaround times
on vehicle maintenance, smooth cash flow management and better overall reporting on fleet activities.
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The Fleet section continues to monitor the progress of Administrative Adjudication of Road Traffic
Offences (AARTO) legislation and has made various preparations for the implementation of this
legislation. Once the final dates of the roll-out are released Amatola Water will be well positioned to put
in place the required processes.
Government garage has been approached analyzing the possibility of sourcing all the fleet from the
G-fleet. The possibility agreement has been reached however Amatola Water has to produce and detail
specification for fleet of which G-Fleet is voluntarily assisting in that regards. Upon finalization of the
new fleet specification, market and industry analysis will have to follow business case which will be the
determining factor for the method, then embark to official acquisition following the SCM policy.
Information and Communication Technology
Information and Communication Technology (ICT) supports and assists the corporate strategy by
making use of appropriate ICT technology.
ICT Governance
Overseeing ICT investments, risk and the allocation of related resources in Amatola Water is the
Information and Communication Technology Steering Committee which includes all senior management.
The review of the Terms Reference for this Committee to be in line with the Corporate Governance of ICT
Policy Framework (CGICT) is underway.
Amatola Water will adopt the Corporate Governance of ICT Policy Framework (CGICT) as its ICT Framework.
Also in the 2014/2015 reporting year, Amatola Water will develop and adopt a 5 year ICT Strategic Plan.
Infrastructure
Amatola Water operates a wide area network (WAN), connecting to the main operating schemes using
a combination of radio frequency links and Telkom lines as appropriate. Future plans for Amatola Water
WAN are to steadily grow the network to include all earmarked primary sites as well as to upgrade
existing infrastructure which will improve network performance and accessibility.
Disaster Recovery and Business Continuity remain key initiatives and there are ongoing plans in place to
provide additional systems / procedures and enhance current techniques in accordance with Corporate
Governance. To guarantee business continuity, Amatola Water is in the process of implementing an
offsite backup solution for disaster recovery into the cloud. This solution uses the internet as a means
for outsourced offsite data storage which is the current ICT trend.
To further facilitate business continuity, Amatola Water has initiated the process of procuring a generator
which will sustain client access to the servers and network during planned /unplanned power outages.
To align Amatola Water’s server room environment and controls to industry standards, certain criteria
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will be introduced. These will include amongst others:
• amoreefficientAccessControlSystemtoimprovesecurity,
• anEnvironmentalMonitoringSystem,
• improvedFireSuppressantSystem,etc.
Measures are constantly reviewed to ensure that data remains secure via firewalls and perimeter
security. This is all managed and monitored by an industry leading service provider. Virus, malware and
related unauthorized access and software measures are in place, which continue to be highly successful.
Software Development
A combination of in-house and outsourced expertise are used to effect delivery of customized systems
solutions which facilitates the operational requirements of the organisation. Outsourced expertise is only
required for specialist applications / systems (namely the ERP system and LIMS) where configurations
/ development cannot be done in-house.
New systems required by the business are developed (as a standard) in the .Net framework, interfacing
with a Microsoft SQL database.
Future projects planned, which are aligned with the company’s strategic goals are:
• A DocumentManagement System to improve and enhance document versioning and provide a
more efficient electronic central repository for user access.
• The ongoing enhancements of the Operations Efficiency System which currently assists the
Operations Department with reporting requirements as well as identifying problem areas as they
arise within Amatola Water’s network.
• On-going enhancement of the organisations Enterprise Resource Planning System (ERP) to
effectively report off business information required by stakeholders etc. are undertaken regularly to
ensure that information is accessed quickly and new methods of enhancing end user experiences
are implemented when required.
• ConfigureadditionalfunctionalitywithinLIMSwhichwillassistthelaboratory’seffectiveness.
• TheIntegratedManagementSystemisenhancedregularlytoensurethatitalignsitselfwithnew
requirements needed to maintain compliance with Safety and Quality measures.
• On-goingimprovementsareplannedfortheBudgetManagementSystemwhichwasfirstlaunched
in 2012. This system effectively ensures that all information is stored in a central location thus
preventing out dated documents from being utilised. It also assists Finance and Cost Centre
managers to report off of historical information should the need arise.
• Databaseweb-hostingtofacilitateremoteaccesstosystems,whichwillentailmodificationofcurrent
systems to encompass this change.
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Corporate Head Office
Amatola Water’s Head Office space has been fully allocated. Amatola Water has purchased a house
adjacent its current Head Office to renovate into additional office space. This has been rezoned for
business purposes and will be refurbished in the 2014/15 financial year to provide additional office space
for Head Office staff. Long-term options include relocating Head Office to Nahoon Dam depending on
operational requirements.
Social Responsibility
The provision of sufficient and safe supplies of water to the various communities in our area of operation
ranks as Amatola Water’s principal and most effective avenue of corporate social investment.
This stance is founded on the understanding that, an improvement in water services provision is a vital
enabler of broader local, regional and national socio-economic development and advancement.
Guided by this prioritization of services provision, Amatola Water seeks, by all practical means, to
contribute positively to the well-being of the communities in which it operates. In this regard, Amatola
Water channels its social investing efforts into areas where it can deploy its internal resources and facilities
effectively by collaborating together with community stakeholders in securing maximum social benefit.
Drop of Hope
Under the “Drop of Hope” initiative, Amatola Water aspires to bring a drop of hope to the many
communities in its area of operation that are in need of assistance, hence contributing to the upliftment
of these communities.
Through the programme, the organisation endeavours to entrench a passion to help, have fun and make
a difference. Amatola Water employees are encouraged to get involved in the communities, to put their
skills to good use and do something meaningful for the respective communities through the following
initiatives:
• Communityoutreach
• Fundraising
• Awareness/Educational
Each year, a specific theme that is aligned with the Amatola Water corporate strategy is selected and
all the projects supported are required to fit within that specific theme.
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The Drop of Hope programme is designed to bring about some positive spin-offs for Amatola Water.
These include:
• raisingtheutility’sprofilebothinternallyandexternally
• creatinganbroaderawarenessaboutourbusiness
• positioningthebrandattheapexoforganisationswithregardtoprovincialwaterservices
• arenewedsenseofteam-spiritintheorganisation
• anincreasinglysociallyempatheticworkforce.
Educational Tours
Educational tours are part of the organisation’s community outreach initiative. Approximately 500
learners and students from various local schools and tertiary institutions are hosted annually at the
various Amatola Water schemes. Emphasis is placed on encouraging participants to seek careers in the
water sector while promoting broader awareness about water and environmental related issues.
Bottled Water
Amatola Water continues to demonstrate its commitment for community upliftment by sponsoring
branded bottled water in support of various community, educational and sporting programmes.
Scientific Services
Amatola Water has a laboratory located at Nahoon Dam. Sampling and analysis services for raw water,
potable water and waste water effluent are offered from this facility. The organisation also runs a satellite
laboratory service under contract to the Joe Gqabi District Municipality in the town of Barkley East.
The Scientific Services is responsible for monitoring the water quality in the organisation for
compliance to the potable water standard (SANS 241), the general waste water limits , the Blue
drop and Green drop standards as required by DWA . Analysis is done in the laboratory that is
based at Nahoon Dam. The laboratory now consists of a newly renovated Microbiology laboratory and is
currently validating the methods. It makes use of the LIMS for its day to day activities which improves
traceability of its results,ensure an audit trail and security of the data produced.
The key initiative over the next five year period is for the laboratory at Nahoon Dam to achieve ISO 1702
accreditation. A submission to the South African National Accreditation System (SANAS) will be made in the
2013/14 financial year for the some of the metals, anions and physical parameters it performs (10 methods).
An accreditation application for a further 7 methods will be submitted in the 2014/15 financial year.
Stakeholder Management
Amatola Water realizes that in order to improve access to water, particularly in the marginalized rural
communities in the periphery of the Province, a more integrated and collaborative approach needs to
be adopted in order to manage its engagement with its stakeholders.
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Maintaining an active and constructive dialogue with stakeholders ensures that the organisation’s
strategy is aligned to the needs of the communities it serves, aiding it to anticipate risks and prospective
opportunities, while also creating a conducive environment for it to achieve it mandate.
In this regard, the organisation has developed a Stakeholder Relationship Management Framework as
part of its concerted efforts to improve stakeholder sentiment, restore stakeholder confidence and to
ensure the effective and efficient profiling of Amatola Water and its deliverables in the Province.
Importantly, the framework is aimed at guiding the organisation in its quest for a high-quality and
coherent stakeholder participation and engagement programme.
Through the Stakeholder Relationship Management Framework and the accompanying Implementation
Plan, Amatola Water hopes to mobilize resources and form strengthened strategic inter-governmental
partnerships which will ensure coordination of service delivery by bringing together the various/ relevant
groups of stakeholders.
Amatola Water stakeholders are classified into three categories comprising statutory, contracted and
non-contracted stakeholders. Among these are Water Services Authorities, the Department of Water
Affairs, the media, suppliers, employees and various water sector partners.
The establishment of different forums and Amatola Water’s participation therein at national, provincial
and local levels in an effort to improve cooperation in delivering services to the Province’s rural
communities is an intrinsic element of the plan.
Looking ahead, the organisation believes that these engagements, if executed effectively, can deliver
strong outcomes for Amatola Water, way beyond what it can achieve in isolation.
Research
Amatola Water has signed Memorandums of Agreement (MOU’s) with the Fort Hare and Rhodes
Universities for the purpose of research collaboration. The MOU with Rhodes University has resulted in
the collaboration on two research projects to date. The first project is the application of water accounting
techniques in the international water sector and the Monash University of Australia is the lead entity on
this project. Rhodes University and Amatola Water are participating in the South African chapter of the
final document. The final report was completed in August 2010.
Amatola Water, Rhodes University and Bloem Water were allocated funding from the Water Research
Commission to study the impact of climate change on medium sized water boards in South Africa. The
project was completed in March 2013.
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Further funding has been requested for the next phase to consider the impact of climate change on
water quality within the study area. This is in alignment with the organisations strategy to increase
participation in research activities over the next five year period.
Secondary Business Activities
Amatola Water offers separate primary and secondary business services. Primary business centers
on services provided through infrastructure owned by Amatola Water or through Right of Use (ROU)
contracts. Secondary business activities include all other infrastructure related income generating
activities that include operation and maintenance contracts, project implementing agent services,
institutional and social development services, infrastructure planning and design services.
Amatola Waters limited primary business base has forced the organisation to aggressively pursue
secondary business opportunities over the past 5 years. The secondary business opportunities have
generally been short term in duration with less predictable cash flows and higher risk profiles. The
Board has taken the strategic position of stabilizing the business over the next five years through the
shifting of emphasis away from secondary business to growing the primary business. This is shift will
align the organisation’s primary business with the National Development Plan vision of providing each
household with running water and improving rural livelihoods.
The five year target set by the Board is to achieve a 75/25 split between primary and secondary business
revenue. This will be achieved in the primary business by expanding current bulk water infrastructure
capacity and through the securing of long term ROU contracts with strategic customers. It is envisaged
that these interventions will result in daily bulk potable water sold increase from the present 85Mℓ/day
to an estimated 150Mℓ/day within five years.
Primary infrastructure capacity will be increased at the Sandile, Peddie, Binfield, Nahoon, Masincedane
and Debe bulk water supply schemes over the next three financial years by a total of 42Mℓ/day. ROU
contracts will be sought in the Chris Hani, Joe Gqabi, Amathole and O.R. Tambo District Municipalities.
Alternative ROU contract options with other water service authorities (WSA) in the Eastern Cape
Province may also be considered where the cost benefit analysis yields real value for Amatola Water
and the WSA.
Secondary business activities will continue over the five year planning horizon. It is envisaged that the
approximate current secondary business rand value will remain constant over this period. Emphasis
will be placed on regional infrastructure planning, infrastructure development and specialist services.
Operation and maintenance contracts will be replaced over this period with ROU contracts.
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Current Secondary Business Contractual Arrangements
Amatola Water undertakes numerous secondary activities within the water sector. All activities are
formalized contractually via a service level agreement or a formal contract document. Amatola Water’s
current contractual arrangements linked to secondary activities are presented in Table 22. Alignment
with the Department of Water Affairs Ministerial Outcomes and Strategic Objectives are indicated.
The organisation has considered the secondary business workload as per the table below and has
committed to securing additional contractual resources to ensure the projects are implemented
efficiently and effectively in the coming three financial years.
Strategic Alignment
Client Project Government Outcomes
DWA Strategic Objective
Budget for 14/15
Budget for 15/16
Budget for 16/17
PRODUCT - O&M CONTRACTS
Makana Water Service O&M 9 1.6 R15 358 445 R16 233 876 R17 159 207
O.R. Tambo
District
Municipality
Maintenance
Support 9 1.6 R 14 800 000 R 0 R 0
Department of Public Works
Water Service O&M 9 1.6 R 18 000 000 R 0 R 0
Sub Total R48 158 445 R 16 233 876 R 17 159 207
PRODUCT - PIA
DWARapid Response Unit
9 1.6 R 7 800 000 R 0 R 0
Joe Qgabi District Municipality
Sterkspruit WTW Upgrade 6 2.1 R 30 000 000 R35 793 876 R 0
O.R. Tambo District Municipality
KSD Presidential Intervention Project 6 2.1 R 280 000 000 R 315 000 000 R300 000 000
Sundays River Valley Municipality
Paterson Bulk Supply 6 2.1 R 7 000 000 R 0 R 0
Ndlambe Municipality
Bulk Water Supply 6 2.1 R 113 464 000 R 80 000 000
R 220 000 000
O.R. Tambo District Municipality
MWIG Program 6 2.1 R89 442 000 R124 303 000 R175 675 000
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Strategic Alignment
Client Project Government Outcomes
DWA Strategic Objective
Budget for 14/15
Budget for 15/16
Budget for 16/17
O.R. Tambo District Municipality
Sidwadweni Water Supply 6 2.1 R 80 000 000 R 0 R 0
O.R. Tambo District Municipality
Coffee Bay Water Supply 6 2.1 R 108 000 000 R 94 000 000 R 0
Sub Total R 715 706 000 R 649 096 876 R 695 675 000
PRODUCT - PLANNING & DESIGN
Koukamma Municipality
Misgund Water Supply Feasibility Study 6 2.4 R 1 040 000 R 0 R 0
Sundays River Valley Municipality
Kirkwood Water Supply Feasibility Study 6 2.4 R 640 000 R 0 R 0
Amatola Water / BCMM
Nahoon Dam East Coast Supply 6 2.4 R 0 R 0 R50 000 000
Ikwezi Municipality
Jansenville Water Supply Feasibility Study 6 2.4 R 1 200 000 R 0 R 0
Sub Total R 2 880 000 R 0 R 50 000 000
Annual Totals R 766 744 445 R 665 330 752 R 762 834 207
MTEF Total R 2 194 909 404
Table 22
Table 23 clearly indicates the substantial need for secondary water services in the Eastern Cape Province.
This business is inherently short term but will continue to be utilised by Amatola Water to develop
relationships with the water service authorities. These relationships will be used as the foundation to
develop longer term ROU arrangements with the authorities.
Secondary business activities also strongly support the Ministerial Outcomes and Strategic Objectives
of DWA as detailed in the Share Holders Compact.
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Human Resource Development Plans
Chapter 12
The Human Resources Department coordinates the flow of people into, through and out of the organisation.
Human Resource (HR) initiatives support this flow of human capital, and are grouped into key functions
including, but not limited to: attraction, retention, capacity building and performance management. The
alignment and effectiveness of these functions ensures that Amatola Water has the right people in the
right positions at the right time. This in turn enables the organisation to deliver on its mandated services.
Human Capital As an organisation, Amatola Water, has survived turbulent times and lost a number of key staff. The organisation
continues to face skills shortages but despite this challenge it has continued to deliver the required services.
Amatola Water maintains four divisions under the leadership of the Chief Executive Officer and the
Executive Team comprising of 4 Divisional Directors. This team is responsible for the implementation of
the organisation’s business plan.
The current workforce profile, according to the various Divisions is as follows:
Division % No.
Operations 73.4 251
Planning & Development 7.9 27
Finance 8.5 29
Corporate Services 6.7 23
CE’s Office 3.5 12
Total 100 342
Table 23: Divisional staff percentage: July 2013- March 2014
The staff turnover figures together with the reasons for termination for the period July 2013 – March
2014 are indicated in Table 24 below.
Termination Reason No. Labour Turnover Rate
Resignations 21 6.1
Dismissals 1 0.2
Retirement 5 1.5
Contract Expiry 0 0
Death 2 0.6
Total 29 8.4
Table 24: Service terminations: July 2013 – March 2014
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A Recruitment Plan for 2014/2015 will be developed to meet the demands of additional/new business
and in line with the approved budget for 2014/2015. Table 25 shows that thirty two (32) employees were
recruited in the 2013/14 financial year to date:
Placement No.
Permanent 18
Fixed term contracts 14
Total 32
Corporate Services 6.7
CE’s Office 3.5
Total 100
Table 25: New recruits July 2013 – March 2014
The organisation strives to continually assess present and future workforce needs and align these
with business objectives in an effective manner. Future recruitment practices will continue to focus on
the effective attraction, retention and engagement of staff with the necessary expertise, experience
and skills, within a framework that ensures equity and diversity. This approach is encapsulated in the
organisation’s Employment Equity Plan that is reviewed annually. The Board has set a minimum target
for the next five year period for management to ensure that 80% of critical posts are constantly filled.
Critical HR Interventions
The HR Department will continue to focus on internal service delivery, through the development and
implementation of strategies, initiatives and policies to enable the achievement of Amatola Water’s
corporate objectives. The approach of the Balanced Scorecard’s Learning and Growth focus area and the
envisaged inputs, activities and outputs will ensure that the following outcomes are progressively realised:
1. Improve Organisation Behaviour and its Functionality:
Future interventions:
• Entrenching the appropriate corporate culture: inspirational leadership; managing
organisational politics; and effective conflict management.
• Aligning people, skills, systems, policies and procedures for strategy implementation.
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2. Ensure effective Organisation Planning, Design & Development
Future Interventions:
• Facilitate organisational development processes and focus on identified priority areas to
enhance the effectiveness of individuals, business units and the organisation as a whole.
• Align Amatola Water’s structure with the Business Strategy.
• Communicate and create awareness of the organisation’s structure.
• Communicate the vision, mission and corporate scorecard.
• Develop and implement an HR Strategy and Plan.
3. Ensuring the alignment of skills mix available to future requirements
Future interventions:
• Develop and implement an HR Strategy and Plan.
4. Ensure Effective Employment Practices & Personnel Administration
Future interventions:
• Ensure compliance to policy and implementation through effective communication and
monitoring.
5. Consolidate and implement a Reward Management Policy
Future interventions:
• Develop clear processes and procedures regarding reward management.
• Develop a realistic and user-friendly Remuneration Policy.
• Finalize the Performance Management Policy.
6. On-going consultation, participation & communication with Employees
Future interventions:
• Quarterly HR road shows and staff briefs to create an engaged workforce and enhance
cohesiveness.
• Schedule Team building activities.
The achievement of organisational corporate objectives will contribute towards ensuring that Amatola
Water has a skilled, competent, motivated and engaged workforce.
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HR Policy Development
The organisation has a comprehensive range of policies that focus on human resource attraction,
retention, development, performance management and as employee wellness. These policies are
reviewed every two years to ensure they remain relevant to the organisation’s business strategy and
add value to the brand in the labour market.
Critical outputs of these policies are Leadership and Employee Development. The policy framework is
dedicated to continual staff learning and improvement, the recruitment and retention of a workforce
that is competent, a motivated and adaptive workforce, staff health and safety, the retention and
sharing of institutional knowledge. The policy framework also provides opportunities for professional
and leadership development.
Remuneration
Amatola Water reviewed its Remuneration Policy in 2012 to ensure the organisation remunerates and
rewards its staff in a competitive manner. Progressive remuneration and rewards are however held in
line with the social and business imperatives of equity and cost effectiveness. In this regard the Board
has set modest year on year salary increase targets of CPI plus a nominal real percentage increase for
the next five year period. This is in line with the intent of the New Growth Path of National Government
with regards to salary increases.
The Board has resolved that the current Remuneration Policy be reviewed further to ensure the
organisations reward system is inclusive of non-monetary rewards. This will ensure the policy is holistic
and applicable to a broad range of circumstances.
Performance Management System
Individual staff performance contracts are aligned with the organisational objectives to ensure that
the strategies formulated by the Board and Senior Management are operationalized. Performance is
reviewed on a quarterly basis to ensure progress is monitored, challenges are identified and appropriate
solutions developed.
Divisional Business Plans are assessed quarterly by the Management Committee and senior managers.
This enables divisions to obtain objective reviews of progress in contributing towards the achievement
of the organisations corporate scorecard. The divisional scorecards are used to present progress reports
to the Board concerning the implementation of the corporate scorecard on a quarterly basis.
The Board has set average annual performance targets for the entity over the next five years. The
2014/15 financial year target is 75% achievement and escalates to 90% by the 2018/19 year.
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Employment Equity Profile
Amatola Water subscribes to the principles of employment equity and the staff profile as at 31 March
2014 is reflected in the following table :
Occupational levelsMale Female Disability
TotalA C I W A C I W Male Female
Top Management 0 0 0 0 0 0 0 0 0 0 0
Senior Management 2 0 0 1 1 0 0 0 0 0 4
Professionals & Mid-Management 11 0 2 6 4 2 0 0 0 0 25
Skilled technical workers & Junior Manage 50 11 1 10 14 4 1 6 0 0 97
Semi- Skilled 106 6 0 3 40 4 0 4 2 0 163
Unskilled 48 0 0 0 5 0 0 0 2 0 53
Totals Permanent 217 17 3 20 64 10 1 10 4 0 342
Table: 26(a) Amatola Water Staff Profile
Amatola Water subscribes to the principles of employment equity and the staff profile as at 31 March
2014 is reflected in the following table :
Workforce Profile per Occupational Level and Economically Active Population
Blacks Female
Occupational Level AW EAP GAP AW EAP GAP
Top Management 0% 94.2% 94.2% 0% 46.2% 46.2%
Senior Management 75% 94.2% 19.2% 25% 46.2% 21.2%
Professionally Qualified & Middle Management 76% 94.2% 18.2% 24% 46.2% 22.2%
Skilled Technical or Junior Management 90% 94.2% 4.2% 25.7% 46.2% 20.5%
Semi-Skilled 98% 94.2% 0% 29.4% 46.2% 16.8%
Unskilled 100% 94.2% 0% 9.4% 46.2% 36.8%
Table: 26 (b) Gap analyses between EAP targets and Amatola Water workforce profile
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Amatola Water currently has 1% of its staff with disabilities out of the 342 staff complement.
It is recommended that if progress continues as depicted by the trends, equitable representation in terms
of gender can be reached by ensuring that the recruitment process, skills development initiatives and
succession plan are aligned with Amatola Water numerical goals within the next employment equity plan.
Employment Equity
The Employment Equity Plan of Amatola Water has been reviewed in November 2009 and is valid until
2014. The new business plan will require a review on employment equity plan with special focus on the
numerical goals which will cover the 2015-2020 period.
The reviewed Employment Equity Plan will be for the period 2015 – 2020. The reviewed plan is due for
approval by 31 November 2014.
The following represents Employment Equity developments within the organisation and highlights of future
tasks necessary to ensure that equity exists in all levels and categories of employment at Amatola Water:
• Increased employment of women, especially at management levels. Amatola Water makes
efforts to attract qualified and skilled women at these levels. Policies such as recruitment
procedures are some of the strategies adopted and implemented by the organisation to fulfill
this endeavour. Preferential recruitment is one other strategy employed to address these areas
of improvement and concern in reaching the numerical goals.
• Retention of employees’ strategies aimed at technical, scarce and critical skills of employees.
• Development of a Promotion Policy aligned to the organisation’s Succession Plan.
• Review of the Terms of Reference for the Employment Equity Committee.
• The alignment of training and development and the Succession Policy in ensuring effective
implementation of the EE Plan.
• Improve commitment from the management in ensuring the effective implementation process
of employment equity.
• Steadily stride in increasing the representation of people with disabilities from 1% in 2013 to 2%
in next five years as required by the Department of Labour.
• Commitment to align employment equity targets with BBBEE.
Training and Development
In response to the National Skills Development Strategy III (2011-2016), Amatola Water will develop a five
year training and development framework. This is in line with the commitment to grow and strengthen
leadership capacity to sustain a high performing organisation.
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Amatola Water’s training priorities are dictated by its Workplace Skills Plan, which is the product of
a detailed performance development plan and a skills needs audit. In conjunction with the Energy &
Water SETA and the organisation’s own strategic plan, Amatola Water will maintain its focus on the
following training interventions:
• Technical Training i.e. Engineers, Technicians & Artisans
• ABET
• Supervisory/ Management & Executive Development Programmes
• Safety, Health & Environment
• Life Skills Training
• Induction
• Information Technology
• In-service training
• Learnerships in Water & Waste Water Purification
• Apprenticeships in the Engineering disciplines
• Multi-skilling, Coaching/Mentoring & Job rotation
• Financial Study Assistance : Scarce and Critical Skills
• Recognition of Prior Learning (RPL)
• Graduate Placement
Training and development endeavors by Amatola Water form part of the principles that guide the
approach adopted to ensure the success of the business strategy in supplying quality water. The
development and provision of competencies central to the achievement of the business goals remains a
priority for Amatola Water’s strategic role.
Personal development plans (PDPs) are annually developed to assess employee’s interest in management
and professional advancement, and to help in career planning. Linkage between the organisational
framework and the individual will be detailed in each employee’s PDP. The PDP is part of each employee’s
annual performance contract and is aligned with the organisation’s Skills Development Plan.
Learnership Programme: Water and Wastewater Purification
The Amatola Water Learnership programme forms part of a number of interrelated initiatives, which are
intended to ensure the success of Amatola Water as a business to provide water services of a world class
standard. Amatola Water has contracted 10 general workers on an in-house learnership programme (for
12 months) on Water and Wastewater Process Controller NQF Level 4; Water and Wastewater Treatment
(NQF Level 2) courses.
The development strategy has been underway for several years and is guided by the Skills Development
Committee. With a competency-based approach, Amatola Water aims to build a workforce through a
wide array of formal, informal and networking development opportunities for employees. Each year the
82
organisation will offer opportunities for development to expand employee’s skills and knowledge. This is
expected to stimulate innovation and collaboration among employees in the work place.
Amatola Water together with the Department of Water Affairs signed a Memorandum of Understanding
for coaching and mentoring of 24 DWA employees in water service treatment. The duration of the
programme is three months and will be conducted at various sites. Amatola Water has trained 17
learners from the community of Shixini in Dutywa in a 12 month Water and Wastewater Treatment
learnership. The programme for Shixini learners is coming to term on 30 April 2014.
Learning Academy
Amatola Water has been awarded full accreditation by the Energy & Water SETA as a training provider
to facilitate Water & Wastewater Treatment Process Control Supervision at NQFL 2 & 4 as well as a Skills
Programme.
The success achieved in past learnership programmes and the full accreditation by the EWSETA has led
to Amatola Water seeking to establish a Learning Academy. The aim is to address high unemployment,
skills shortage, poverty and other related challenges, which require an integrated and holistic approach
to knowledge management and skills development, over and above programme level.
The project will initially cater for the critical skills issues within Amatola Water and for the skills challenges
that affect the South African water and sanitation sector, as well as on the continent. Looking ahead, the
focus will incorporate various other models that include technology development, research platforms and
the establishment of centers of competence and excellence. The programme will be launched in June 2014.
Phase 1 of the programme will target municipalities and other stakeholders committed to water service
delivery. The trainee target group will primarily be unemployed youth especially from the previously
disadvantaged, employees from strategic partners and municipal officials. The Academy will be able to
assist in combining certain courses required across municipal boundaries. This will promote cost savings
and enable trainees from different areas to exchange experiences.
Graduate Placement
Amatola Water will at all times strive to support students with options to maximize their learning and
personal growth in order to achieve their academic qualifications. The programme is a structured
opportunity for students to apply the knowledge and skills gained through the course of their studies in a
workplace context. It provides invaluable exposure to new and interesting career options, opportunities
for networking and the experience of supervision. The programme is assisting Amatola Water to create
a pool of employees to recruit from, especially with scarce and critical skills. The organisation recognizes
the need to expand its current employment profile and has committed itself to make internship and
placement opportunities available within workplaces.
83
The Internship Programme is aimed at unemployed graduates wishing to gain practical workplace
experiential learning and theoretical learning which will be integrated to provide a solid foundation of
skills for employment opportunities. The programme will focus on the development of key skills needed
in support of operational requirements within the company.
Financial Study Assistance
Amatola Water strives to attract skilled and competent employees. It is committed to continuously
developing its qualified and skilled staff as part of the endeavors towards staff development and staff
retention. Continuous learning opportunities shall be provided to employees through accredited courses.
Executive dialogue sessions on current leadership topics will be regularly offered.
Financial Study Assistance: Scarce and Critical Skills
Amatola Water engages in the development of the scarce and critical skills by providing financial study
assistance to students who meet the determined criteria. This will assist the company to address the
scarce skills shortage by creating a pool of competent employees and non-employees for recruitment
purposes.
SUPERVISORY, MANAGEMENT AND SENIOR MANAGEMENT PROGRAMMES
These programmes provide skills necessary to enhance the efficiency and effectiveness supervisors,
administrative and operational staff. There is a focus on the development of middle managers and
professionals in support of succession planning. This will be done through identifying and accelerating the
development of high-performing employees who have the potential for leadership and other critical roles.
Support to Assist Staff to Register with Professional Bodies
A key initiative for professional and management development over the next five year period is to
increase the number of staff with professional registration. The organisation will embark upon assisting
the pool of qualified staff in the fields of engineering and science to register as candidates with
professional bodies.
The organisation will continue providing this programme, as it has helped supervisors and managers in
implementing their day to day activities and management of their subordinates.
Recognition of Prior Learning
When an individual believes that they have equivalent competencies to one or more of those delivered
by the trade which they wish to undergo, as a result of their previous learning experience (formal
or informal), the Recognition of Prior Learning becomes the assessment process required to provide
evidence of their competencies.
There is currently a strong pool of experienced Artisan Aids who have been providing support to qualified
Artisans for a number of years. The Human Resources Development Unit, working in conjunction with the
Operations Division has recognized a need to support these Artisan Aids through Recognition of Prior
84
Learning (RPL) until such time that they attain full trade certificates. The skills gaps have been identified
in the engineering fields, where artisan aids will be assisted and developed until they qualify. Amatola
Water has assessed 26 Artisan Aids in both the electrical and fitting fields.
The suggested intervention plan is based on the findings/recommendations by the training provider,
that these artisan aids over a period of 12 to 18 months must undergo a structured training programme
that covers the different required modules of that specific trade.
In the 2013/2014 financial year, four Plumbing candidates who have been assessed through recognition
of prior learning are due for placement for a Trade Test.
Training and Development Policy
The Training and Development Policy is intended to advance and complement all Human Resources
interventions relating to training and development of employees. The policy will be reviewed and the
intention is to have one training and development policy which will incorporate all HR intervention areas.
Amatola Water recognizes that the competence of its human capital is a critical factor for its current
and future progress, competitiveness and sustainability. It further recognises that in order to meet the
skills challenges in the organisation, it is strategically necessary to invest in the education, training and
skills development of its employees, especially with regards to scarce and critical skills. The policy also
intends to contribute meaningfully to human talent attraction and retention.
Dual Career Tracks will be explored as a way to retain and energize talented professionals who may
not have an interest in management roles. Dual career tracks provide more scope for management and
specialist development and progression. The organisation will examine best practices and effective
models in other organisations to determine the feasibility of this approach in the next five years.
Succession Plans will be implemented in all departments and to ensure a continuous flow of qualified
candidates to fill critical positions. Strategies include the development of internal talent pools, knowledge
transfer from current employees to successors, and recruitment of new professionals to fill gaps.
Employee Relations and Employee Wellness
Amatola Water values its employees as one of the key assets in pursuit of its business goals. With over
80% representation, the South African Municipal Workers Union remains the sole bargaining agent for
the purposes of collective bargaining. Through the Local Labour Forum, Amatola Water continues to
foster a culture of participation and consultation in all critical issues of the organisation.
The Organisational Rights Agreement signed between worker representatives and the employer remains
the guiding document for engagement and consultation. Amatola Water is also a role player in the
Amanzi Bargaining Council processes with other water utilities.
85
Employee Wellnes and Life-Style Management
Amatola Water places importance to compliance with the Occupational Health and Safety Act as a
way of ensuring a workforce that is safe from occupational injuries and diseases. To this end, in-house
occupational health services aimed at ensuring proper placement of employees as well as continuous
health monitoring and routine surveillance for the employees are in place.
Beyond occupational health and safety compliance, Amatola Water recognizes the importance of keeping
employees happier, healthier and more productive. To this end, regular wellness activities aimed at
educating and creating awareness to employees about healthy life-styles and general management of
personal health continues on a regular basis.
Through the services of contracted doctors Amatola Water’s chronic health care management program
remains a key factor in minimizing prolonged absences from work and ensuring that employees remain
healthy. Early diagnosis, identification of response plans and diseases management awareness is the
cornerstone of the programme.
Amatola Water subscribes to the Department of Health’s strategy of “Getting to zero: zero new HIV
infections. Zero discrimination. Zero AIDS- related deaths”. In collaboration with service providers in
the field of HIV and AIDS and our Peer Educators, the organisation continues to champion awareness
to employees with a view of ensuring good support and care both to affected and infected employees
and their families.
The general wellbeing of employees is also a key focus in the wellness programs. Programs aimed
at general health awareness as well as early identification and management of chronic conditions
like diabetes, TB, high blood pressure and obesity will be ongoing for the year ahead, as well as the
foreseeable future.
86
Environmental Management Programme and Plans
The focus of the environmental management function is to ensure that both Amatola Water owned
(primary) business and secondary business (including right-of-use business) comply with environmental
and relevant water legislation, standards, regulations and norms.
Environmental management remains a complex and challenging concept based, in part, on the
complexities of the definition of environment. Based on the National Environmental Management Act (1998)
and the White Paper on which it is based, environment should be defined broadly and should promote
constitutional values, safeguard the health and well-being of people, advance economic development
and ensure that the required level of ecological protection is afforded without compromising the natural,
financial and social resource bases. The scope of environmental management continues to evolve, and is
merging with concepts of sustainability, triple bottom lines, corporate governance and corporate social
and environmental investment. With an ever increasing pressure on freshwater and other environmental
resources, there exists a large challenge to integrating social, economic and environmental factors in to
planning, implementing and decision-making so that resource development and use is able to serve both
current and future generations sustainably.
While Amatola Water has made significant inroads into the “people” aspect of the definition of environment
through the development and implementation of the Integrated Management System and associated
policies and procedures, much remains to be done regarding the “green” (or ecological) aspect of
the definition. In its Environmental Policy, implemented in November 2002, Amatola Water committed
itself to minimising the impact of its operations on the environment through the application of sound
environmental management based on best practice. The goals of the policy are to integrate environmental
considerations in the day to day business activities of the organisation and at the same time provide strong
community leadership on environmental issues as well as contribute to broader community understanding
of environmental issues. While many of these are focused towards issues pertaining to water, water
resources and water management, broader environmental issues are not excluded from the scope of the
policy. These goals were incorporated in the development of the Environmental Sustainability Strategy
and are being given effect through interventions and initiatives that are aligned with the organisational
scorecard and both short and long-term strategic objectives.
The strategic interventions outlined in the Environmental Sustainability Strategy provide the overarching
framework to guide Amatola Water in supporting and achieving environmental sustainability. Broadly, the
interventions have been identified as:
Chapter 13
87
• monitor,assessandevaluateeffectof,andon,AmatolaWateractivitiesthroughthedevelopment
of environmental monitoring programmes;
• manageandmitigateenvironmentalimpacts;
• promoteenvironmentalawareness,creatinganawarenessofscarcenaturalresourcesandthe
need to reduce environmental stress;
• supportco-operativegovernance;
• enhanceorganisationalsustainability(socialandfinancial)throughenvironmentalinitiatives;
• participateinrelevantenvironmentaltechnologyresearch.
Although aspects of these initiatives are currently being undertaken across the organisation, formalising
these interventions within the strategy provides stronger motivation and support for ensuring that
principles of environmental sustainability are clearly incorporated in the entire life-cycle value chain of
the organisation. A key driver in implementation of the strategy is to review the Integrated Management
System in order to fully integrate environmental sustainability and develop relevant environmental
management plans to monitor and assess organisational activities, and ensuring compliance with all
relevant legislation. This is particularly important as Amatola Water embarks on upgrading and expanding
production capacity at six water treatment works supplying various supply schemes.
In order to give effect to the Environmental Policy and Environmental Sustainability Strategy, Amatola
Water continues to work with relevant necessary National, Provincial and Local government as well as
seeking out other relevant organisations that are committed to ensuring a sustainable environment for
the future. These include ensuring ongoing relationships with existing research partners (e.g. tertiary
institutions) and monitoring partners (e.g. undertaking raw water monitoring on behalf of the Department
of Water Affairs, various municipalities and assisting the Working for Water programme in the control
of water hyacinth) and establishing new research partnerships. A number of environmental projects
underway provide necessary environmental support for various projects across the organisation both
for Amatola Water owned business (such as increasing WTW production capacity) as well as secondary
and right-of-use business. These provide good working examples of how to integrate environmental
issues comprehensively into future projects and serve to better position Amatola Water as a leader in
environmental sustainability in the region.
Environmental awareness and education campaigns have been identified as being able to effectively
reach communities, not only Amatola Water staff, to “think green as a routine”. This should affect the day
to day business of the organisation to ensuring that Amatola Water contributes to not only achieving
environmental sustainability but strives to become an environmental leader within the Eastern Cape. This
is not limited to education with regards to water but includes broader environmental issues in the region.
Key environmental initiatives aligned with the organisations 20 year goals and 5 year objectives are
presented in table 27:
88
20-Year Goals 5-Year Objectives Environmental Initiatives
• Blue drop: minimum score 90%.
• Blue and Green Drop achievement in entire service area.
• Contribute towards decent standard of living of communities in the EC.
Increased customer base and penetration (delivery options / services).
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
Achieve Statutory Quality compliance at All AW Owned and RoU plants.
Develop and implement Environmental Management Plans.
Provide support to DWA and DEA.
Contribute to decent standard of living in support of rural livelihoods.
Ensure environmental sustainability is incorporated in planning and development for projects from inception.
Develop and implement Environmental Management Plans.
Provide support to DWA and DEA.
Develop environmental enhancement / mitigation initiatives.
Provide services and invest in technologies / systems in an environmentally responsible and sustainable manner.
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
Be aware of and participate in relevant research projects (e.g. WRC, tertiary institutions).
Investigate renewable energy options.
Strengthen and deepen relationships with statutory, contracted and non-statutory stakeholders.
Sustain existing and grow environmental network.
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
89
20-Year Goals 5-Year Objectives Environmental Initiatives
• 80% of households in EC being served at 750ℓ/household/day.
• Have a sustainable and reliable infrastructure to supply quality water for all.
• Increase sales volume by 20% year-on-year to reach entire province by 2020.
On-going strengthening of Balance Sheet to sustainable services (Ratios).
Implement electricity consumption efficiency measures.
Undertake environmental footprint studies (e.g. carbon, water).
WCDM plans.
Implement water recycling at WTW (where appropriate).
• Water loss – 6%.
• Water provision at 750ℓ/household/day.
• Reduce environmental footprint.
Adequate water security and assurance in support of water supply.
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
Upgrade plants to provide minimum 5 Mℓ/day.
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
Minimise production and distribution water losses.
WCDM plans.
Develop adequate systems, structures, policies and processes to enable strategy implementation.
Undertake environmental footprint studies (e.g. carbon, water).
Integrate environmental sustainability into existing IMS.
Develop and implement EMPs.
* Renowned knowledge hub for water services in the EC.
Improve organisational behaviour and its functionalit.
Develop environmental awareness initiatives.
Ensure effective organisation planning, design & development.
Ensure environmental sustainability is incorporated in planning and development for projects from inception (EAs and WULs).
Table 27
90
Water Conservation and Demand Management
Primary Business
Water Conservation and Demand Management Policy
Throughout its own internal operations the water board strives to reinforce principles of water conservation
covering all stages of the production chain. In water treatment works, water losses are minimized through
process improvement and optimization of backwashing and de-sludging processes, while measures are also
in place to ensure that other losses (such as leaks) are monitored and attended to without delay. Reclaiming
of water disposed of during the desludging process is also part of Amatola Water’s operating culture.
This emphasis on prudent water usage is also maintained externally through the limiting of wastage in
distribution and storage networks, where more detailed water balances are conducted on a monthly basis
to identify any anomalies. Water demand is managed with the aid of a comprehensive “parent – child”
metering system that is guided by a policy on meter calibration and maintenance.
Illegal connections pose a problem in some distribution networks. Amatola Water has a policy in place to
manage illegal connections and ensures that the local and district municipalities are informed throughout
all interventions approved in terms of the policy.
Institutional Arrangements
The maintenance and reading of all water meters is under the control of the Operations Division. All meter
readings are taken on a monthly basis and are used by the finance department to ensure all customers
receive an account for raw and or potable water used.
The Planning and Development Division is responsible for water loss and demand management monitoring
in the organsation. The separation of the operations and maintenance from the monitoring function
ensures accountability is not compromised.
Programme
Amatola Water compiles a water balance report on a monthly basis in terms of its metered water. From its
enterprise resource management programme (BAAN) reports it is possible to draw three-monthly consumption
reports that indicate specific areas of loss. Using this as a tool, it is possible for supervisors to trace specific
water loss areas quickly. Amatola Water achieved a 4.8% production loss and distribution loss 9.5% on average
for the previous financial year. Continued focus on reducing these losses will occur over the next five year period.
The organisation intends reducing total losses from the current 14.3% to 8% by minimizing illegal connections,
providing more rapid responses to leaks and the replacement of certain portions of its infrastructure that has
exceeded its design life. The water meter calibration programme also assists in curtailing demands.
Chapter 14
91
During the drought period restrictions in supply, consumption and outputs are monitored on a daily basis
to ensure demands are limited to the levels as was set out in the Amatole Water Resources System analysis
operating rules. The status of the level of the dams will be monitored during May each year and the applicable
operating rules will then be applied depending on the projected annual demand and available resource.
Good progress has been made in the management of non-revenue water. This has been based on the
production of schematic lay-outs of meters on all schemes, showing the relative positions of the meters –
including both billing and balance meters. This enables Amatola Water to establish overall losses on each
scheme as well as losses at particular points in the schemes. Such losses can be due to real water loss or
apparent loss. Inaccurate meters or illegal connections are detected as apparent losses but by tracking
balances between sub-sections of schemes, suspect meters or areas with illegal connections can be isolated,
identified and appropriate corrective action can be taken. These schematics of meter line diagrams are
continuously updated when required by the GIS section in cooperation with the Operations Division.
Water balances are done on a monthly basis for all schemes operated by Amatola Water. These balances
are communicated between the various divisions to ensure that appropriate actions are taken to reduce
the losses identified. Amatola Water has also changed to an electronic meter reading recording and bar-
code identification system to ensure that less recording mistakes are made during the meter reading
process. The management of illegal connections is undertaken in consultation with clients by inviting
ward councilors to community meetings where particular problems are discussed and where a permanent
solution can be agreed to and implemented.
Projects
Amatola Water has planned several capital expenditure projects over the next five year period that
will result in improved water conservation and demand management. These projects focus on water
infrastructure operated by Amatola Water and include the following:
Scheme Project Budgets (Rx’000)
2014 / 15 2015 / 16 2016 / 17
Nahoon Replacing Rising Main Pipeline R 1,195 R65 R0
Laing Replace Ndevana Pipeline R3,000 R3,000 R3,000
Replace Raw Water Main R1,585 R770 R0
Peddie Upgrade Bulk Distribution R22,420 R1,120 R0
Binfield Upgrade Bulk Distribution R6,270 R43,217 R2,150
Sandile Upgrade Bulk Distribution R13,860 R138,550 R6,900
Masincedane Upgrade Bulk Distribution R7,080 R49,266 R2,450
Debe Upgrade Bulk Distribution R0 R8,260 R2,100
Totals R55,410 R244,248 R16,600
Table 29
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Secondary Business
Water Demand Management services are also currently offered under the secondary business to
municipalities in the Eastern Cape Province. This service is currently being rendered in Kouga Municipality.
Kouga Municipality
Amatola Water was appointed by the Kouga Municipality to assist with a WCWDM intervention in January
2012. The project value was R 1,5 million and was funded by DWA. The focus of the project was meter
installation, meter calibration, a database review and valve maintenance. This first phase of this project
was successfully completed during 2012.
Amatola Water has obtained a further R1 million from DWA to assist Kouga Municipality further with
WCWDM during the 2013/2014 financial year (Phase2). Specific problematic pipelines, air valves, reservoir
control valves and scour valves were serviced and or replaced as well as an annual water balance been
drawn up. All work was completed during Phase 2 and it is planned to do a Phase 3 for continuity and to
achieve further improvements and savings. Amatola Water is however still waiting to get an allocation of
additional money from DWA for Phase 3.
93
Financial Plan
Chapter 15
The Financial Plan is for the five-year period (2014/15-2018/19). The following assumptions have been
made, and it must be noted that any material change in the assumptions will have an effect on the long-
term view expressed:
Macro Economic Assumptions ( Source Bureau for Economic Research (BER); National Treasury
and Investec)
Parameter Note F'13 (Baseline) F'14 F'15 F'16 F'17 F'18 F'19
CPI 5.3% 5.5% 5.6% 5.8% 5.6% 5.6% 5.6%
PPI 4.80% 5.30% 5.50% 5.70% 5.70% 5.70% 5.70%
Interest on borrowings
Short term 7.16% 7.78% 8.21% 8.51% 8.51% 8.51% 8.51%
Long term 10.87% 10.92% 10.99% 10.99% 10.99% 10.99% 10.99%
Interest on Investments 5.16% 5.78% 6.21% 6.51% 6.51% 6.51% 6.51%
Employee Costs 7.90% 7.90% 7.70% 7.60% 7.60% 7.60% 7.60%
Number of Employees 379 345 355 365 375 385 385
Elecricity Increase 8% 16% 16% 16% 16% 16% 16%
Chemicals 6.80% 7.20% 6.90% 6.90% 6.90% 6.90% 6.90%
Maintanance 6.80% 7.20% 6.90% 6.90% 6.90% 6.90% 6.90%
Raw Water Purchase 8% 8% 8% 8% 8% 8% 8%
Water research Levy 1% 1% 1% 1% 1% 1% 1%
Business Model ( Engegement in Secondary Business) 49 45 40 37 33 30 30
Net Profit % 3 3 3.5 4 4.5 5 5
Table 29
The financial model has been developed using the 2011/12 audited and 2012/13 year to date data. The
capital expenditure programme is driven by the organisational strategic objective to make sure that
Amatola Water plants are producing at least 5Mℓ/day. This figure has been determined as the break-
even point for a viable water treatment plant in the Amatola Water context. Amatola Water has secured
94
funding of R500 million from the national fiscus over the next two years. This funding was sourced to
enable the organisation to become financially viable and self sustaining into the future. The funding will
be used for the organisation’s capital expenditure programme. The capital expenditure programme will
result in the organisation’s bulk potable water production and distribution infrastructure to increase
from the current 112Mℓ/day to 154.4 Mℓ/day. Amatola Water will contribute approximately R20 million
co-funding from its reserves to fund this capital expansion.
Amatola Water Board Financial Plan for 2014-2019
ConsolidatedYear 0
F14Year 1
F15Year 2
F16Year 3
F17Year 4
F18Year 5
F19
Assumptions
CPIx 5.5% 5.6% 5.8% 5.6% 5.6% 5.6%
Increase in water sales (Percentage) 8.7% 1.0% 1.5% 20.0% 3.2% 3.1%
Volume of water billed (Potable) 33 716 954 34 054 124 34 640 383 43 180 149 44 757 601 46 337 194
Volume of water billed (Raw Water) 8 411 081 8 495 191 8 534 420 8 618 892 8 704 209 8 790 379
AW Volume Sold (Inc ROU) 42 128 035 42 549 315 43 174 803 51 799 041 53 461 810 55 127 573
Right of use 0 2 799 122 8 945 024 10 049 312 13 477 818 14 286 487
Total Water Sold (exc ROU) 42 128 035 42 549 315 43 174 803 51 799 041 53 461 810 55 127 573
Proposed tariff increase % (Potable) 9.8% 9.0% 9.0% 8.8% 8.8% 8.6%
Raw Water tariff increase by DWA % 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Water Loss % 8.5% 8.5% 8.6% 7.3% 7.0% 6.6%
Volume raw water purchases 46 060 075 46 520 675 47 220 231 55 873 534 57 492 877 59 006 131
Cashflow Budget
Revenue (Primary Sec 29) 258 917 877 252 103 364 279 551 843 375 359 270 387 349 014 399 356 834
Potable 244 893 148 237 493 699 263 351 509 353 606 791 364 922 209 376 234 797
Raw 14 024 729 14 609 665 16 200 334 21 752 479 22 426 806 23 122 037
Less: Provision for non-payment (@3-5% of Sales) 7 767 536 7 563 101 11 182 074 11 260 778 11 620 470 11 980 705
Less: Raw water cost 63 006 959 72 338 645 80 295 896 107 596 500 114 727 806 114 727 806
Less: Direct scheme costs 95 557 908 99 093 551 104 840 977 125 712 071 130 506 220 130 506 220
Less: Overheads 56 046 680 58 067 614 66 533 023 71 723 683 70 301 604 70 301 604
95
ConsolidatedYear 0
F14Year 1
F15Year 2
F16Year 3
F17Year 4
F18Year 5
F19
Sub-balance 1: Operating Cashflow surplus or (loss) before interest charges 36 538 794 15 040 454 16 699 874 59 066 238 60 192 914 71 840 499
Less: Net interest charges -3 754 479 -4 475 760 -4 730 878 -5 000 538 -5 280 569 -5 576 280
Sub-balance 2: Operating Cashflow surplus or (loss) after interest charges 40 293 272 19 516 214 21 430 752 64 066 776 65 473 482 77 416 779
Capital expenditure comprising capital expansion and refurbishment 49 587 399 171 440 141 359 696 165 42 752 243 65 000 000 65 000 000
Changes in working capital 40 577 689 20 079 349 22 738 769 84 105 133 81 189 529 70 374 558
Depreciation 17 655 600 18 644 314 19 725 684 25 643 390 27 079 419 28 595 867
Dividends 0 0 0 0 0 0
Sub-balance 3: Net borrowing requirements -67 527 416 -190 647 590 -380 729 866 -88 433 989 -107 795 466 -86 553 646
Accounting Surplus
Operating cashflow or (loss) after interest charges (Sub-balance 2) 40 293 272 19 516 214 21 430 752 64 066 776 65 473 482 77 416 779
Depreciation 17 655 600 18 644 314 19 725 684 27 615 958 29 162 452 30 795 549
Sub-balance 4: Accounting surplus or loss 22 637 672 871 899 1 705 068 36 450 818 36 311 031 46 621 230
Other Revenue
Right of Use (ROU)/Blue Drop Advisory 0 28 676 541 30 311 104 32 038 837 33 833 012 35 727 661
Revenue (Secondary Sec 30) 126 338 345 77 630 111 81 214 758 84 665 432 98 468 861 113 700 083
Sundry Revenue 5 353 107 2 736 000 2 891 952 3 056 793 3 196 183 3 341 929
Total Other 131 691 452 109 042 652 114 417 814 119 761 062 135 498 056 152 769 673
Total Revenue(Sec 29$30) 390 609 329 361 146 016 393 969 657 495 120 332 522 847 071 552 126 507
Percentage of the Secondary Business to Total Revenue 48% 27% 26% 21% 23% 26%
Percentage of the Primary business to Total Revenue 52% 73% 74% 79% 77% 74%
Total Revenue(Sec 29$30) 390 609 328.93 361 146 016.00 393 969 657.00 495 120 332.00 522 847 070.59 552 126 506.55
Table 30
96
The organisation’s continued balance sheet weakness necessitates that secondary business pursuits
continue for the interim period to build up equity. Long term sustainability will however be secured through
the improved economy of scale in the primary business once the abovementioned capital expenditure
programme has been implemented. The expected outcome of the capital expenditure programme is
increased production and sales of potable bulk water. Current production capacity on most plants is at or
over 100% indicating there is unmet demand on the organisation’s supply area at present.
Analysis of the Financial Forecast 2014/15-2018/19:
Positive Expectations
• Projectedgrowthinoperatingprimaryrevenuelinkedtoinflation;
• Projectedgrowthinsecondaryrevenueprojects;
• Growthincostsinlinewithexpectedinflationrates;
• Growthinnetsurplus;
• Projectedincreaseinreserves;
• Increaseintheassetbase;
Negative Expectations
• Declineincashreservesinyear1to5dueprimarilytothefundingofcapitalexpansion;
• Fundingrequiredtogrowthebulksupplytoensurelongtermsustainabilityandassetreplacement
reserves.
Major Costs Drivers
Major cost drivers for Amatola Waters primary business includes raw water purchases, electricity,
chemicals and staff (overheads).
Our Major Costs Drivers (K/ℓ) 1.55 1.70 1.93 2.00 1.94
Raw water cost 2.07 2.13 2.22 2.25 2.27
Direct scheme costs (Electricty and Chemicals) 1.22 1.25 1.41 1.28 1.22
Overheads
Table 31
97
Major Cost Drivers (k/ℓ)
6.00
5.00
4.00
3.00
2.00
1.00
-
1 2 3 4 5
Overheads 1.22 1.25 1.41 1.28 1.22
Direct scheme costs 2.07 2.13 2.22 2.25 2.27
Raw water cost 1.55 1.70 1.93 2.00 1.94
Figure 2
Raw and Potable Water Tariff
Amatola Water is estimating that the raw water tariff will increase at 8% over the next five years while
the potable water tariff is projected to increase at an average of 8.5% per annum. The potable water
tariff increase will be at a decreasing rate over the next five years to ensure tariffs are affordable and
sustainable. This will be achieved by increasing the production capacity of Amatola Water supply systems
resulting in increased potable water sales. This increased sales volume will improve the organisation’s
economy of scale resulting in a reduction in the cost per kilolitre because 40% of the plants costs are
fixed or semi-fixed. Below is the graphic representation of the relationship between raw and potable
tariff over the next five year period:
Ra
nd
Va
lue
s
98
Tariffs
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
-1 2 3 4 5
Proposed sales tariff 6.97 7.60 8.19 8.15 8.12
Assumed raw water tariff 1.55 1.70 1.93 2.00 1.94
Figure 3
Tariffs 1 2 3 4 5
Proposed Sales Tariff 6.97 7.60 8.19 8.15 8.12
Assumed Raw Water Tariff 1.55 1.70 1.93 2.00 1.94
Table 32
Profitability Over the Next Five YearsThe financial model forecasts a low accounting surplus for year one. This is due to high plant costs
and low production volumes. The situation improves in year two after completion of the upgrade of
some of the Amatola Water treatment plants. Profitability starts to improve due to the sharp increase
in production volume versus a lower increase in costs due to fixed and semi-fixed costs remaining
relatively stable. Below is the graph showing this trend:
Ra
nd
Va
lue
s
99
Profitability over the next five years (Primary Business)
Revenue (Primary Sec 29) 252 103 363.68 279 551 842.99 375 359 270.33 387 349 014.50 399 356 833.95 Primary Business Costs (Sec 29) (Exc Interest) 251 231 464.19 277 846 774.92 336 935 883.67 348 954 951.45 350 535 921.68
Net Profit 871 899.49 1 705 068.08 38 423 386.66 38 394 063.05 48 820 912.27
Table 33
450 000
400 000
350 000
300 000
250000
200 000
150 000
100 000
50 000
-1 2 3 4 5
Revenue (Primary Sec 29) 252 103 363.68 279 551 842.99 375 359 270.33 387 349 014.50 399 356 833.95
Costs (Primary
Business) (Exc
Support Service) 251 231 464.19 277 846 774.92 336 935 883.67 348 954 951.45 350 535 921.68
Net Profit 871 899.49 1 705 068.08 38 423 386.66 38 394 063.05 48 820 912.27
Note : this is just primary business
Figure 4
Ra
nd
Va
lue
s
100
Right of Use Contracts
Amatola Water expects to conclude approximately five Right of Use (ROU) agreements with various
municipalities within Eastern Cape for the next five year period. These contracts are expected to
generate additional revenue of R10 million in year one to R80 million in year five. This revenue is included
in the core business revenue.
Secondary Business
Amatola Water’s strategic intent is to decrease focus on the secondary business segment due to its
contractual and therefore volatile nature over the long term. The current revenue ratio between the two
business segments is currently standing at 52/48 (52 % primary business and 48% secondary business).
Over the medium term the organisation intends to have a 70/30 ration between primary and secondary
business. Long term this ratio target will be 90/10. The annual revenue from secondary business is
currently R150 million and is expected to grow over the medium term to around R250 million. Below is
the summary of the data:
Section 30 Business
180 000.00
160 000.00
140 000.00
120 000.00
100 000.00
80 000.00
60 000.00
40 000.00
20 000.00
-1 2 3 4 5
Revenue (Secondary Sec 30) 109 042 652.32 114 417 814.01 119 761 061.67 135 498 056.09 135 498 056.09
Total Costs 107 267 868.91 111 145 316.64 119 101 779.57 127 799 296.44 127 799 296.44
Average Net Profit ( 5%) 1 774 783.41 3 272 497.37 659 282.10 7 698 759.66 7 698 759.66
Figure 5
Ra
nd
Va
lue
s
101
Section 30 ( Secondary Business)
Revenue (Secondary Sec 30) 109 042 652.32 114 417 814.01 119 761 061.67 135 498 056.09 135 498 056.09
Total Costs 107 267 868.91 111 145 316.64 119 101 779.57 127 799 296.44 127 799 296.44
Average Net Profit (5%) 1 774 783.41 3 272 497.37 659 282.10 7 698 759.66 7 698 759.66
Table 34
During the 2013/14 financial year Amatola Water changed its accounting treatment for contracts where
it is employed as an implementing agent. A view has been taken that the only portion to be reflected
in the statement of financial performance is the implement agent fee not the gross amounts. This is
because Amatola Water is the “agent” in these contracts and not “principal” client.
Capital Expenditures and Funding
For the next 5 years the lack of strength of the balance sheet will not allow the organisation to access
capital markets. Amatola Water will therefore rely on grant and internal funding to fund capital
expenditure programmes. Over and above this the organisation will seek credit accreditation/rating
agency views of the financial status of Amatola Water. This will facilitate and understanding of the gaps
that Amatola Water will still need to address before a favorable rating can be attained that will enhance
the ability to access capital markets in the future. Amatola Water has already started to engage National
Treasury about obtaining the borrowing limit in this regard. These two projects are critical and the aim
is to finalize them by the end of the 2014/15 financial year.
Amatola Water views accessing the capital market as major development in ensuring its sustainability as
Sec 3(b) entity and in the positioning as the key role player in provision of water services in the province.
The proposed 5 year capital expenditure programme for Amatola Water with the various intended
sources of funding is presented in the following table:
Capital Expenditure Funding
Net borrowing requirements -190 647 590.34 -380 729 866.17 -88 433 988.89 -107 795 465.66 -86 553 645.53
Grant Funding 148 147 841.26 335 061 351.09 16 697 500.00 8 000 000.00 6 000 000.00
Loans (Capital Market) 5 000 000.00 5 000 000.00
Remaining requirement (42 499 749.08) (45 668 515.08) (71 736 488.89) (94 795 465.66) (75 553 645.53)
Internal Funding (42 499 749.08) (45 668 515.08) (71 736 488.89) (94 795 465.66) (75 553 645.53)
Table 35
102
Materiality and Significance FrameworkAs required by the Treasury Regulations, Amatola Water Board has developed and submitted a framework of
acceptable levels of materiality and significance, per incident, with the Minister of Water Affairs.
Materiality
Having taken into account the following factors:
• ThenatureofAmatolaWater’sbusiness
• StatutoryrequirementsaffectingAmatolaWater
• TheinherentandcontrolrisksassociatedwithAmatolaWater
• Quantitativeandqualitativeissues.
The Amatola Water Board has assessed the levels of materiality, to be:
• Anyamountwhichresultsfromcriminalconduct
• R10000andabovewhichresultsfromirregular,fruitlessorwastefulexpenditurecausedbygross
negligence
• R250000andabove,inrespectofirregular,fruitlessorwastefulexpenditurecausedbyanyother
circumstance.
Significance
Application for approval will be made to the Minister of Water and Environmental Affairs in respect of
any individual transaction covered by Section 54(2) of the Public Finance Management Act, where;
• The acquisition or disposal of any significant AmatolaWater Board Asset, which exceeds 10% of
Amatola Water Board’s Total Assets.
• Participation,orchangeinparticipation, inanysignificantpartnership,trust,unincorporated joint
venture or similar arrangement where the net income accruing to Amatola Water Board exceeds 10%
of annual gross revenue.
Establishment or participation in the establishment, of any entity whose ownership does not include a
local authority, another water board or a national or provincial organ of state.
103
Bank Account Details
Amatola Water’s bank account details are presented in Annexure I.
Chapter 16
104
Analysis of Risk
Enterprise Wide (Integrated) Risk Management
Risk management is crucial to the requirements of the PFMA, NT, King III and COSO reports but even more
importantly is good business management and signifies good corporate governance. Amatola Water has
developed and adopted an enterprise wide (integrated) framework and policy on risk management. Risk
management is defined within Amatola Water as:
“Understanding the risks that the organisation faces and what their impact would be on the achievability of
the organisation’s objectives, and then mitigating those risks that would have an unacceptable impact on the
organisation.”
To establish a common understanding of the term “risk”, Amatola Water has defined risk as follows:
“The possibility of any event, negative or positive, either internally or externally generated (where the impact
may be internal or external), which may critically impact on the achievement of the business objectives”.
This definition clearly highlights the relationship between risk, implementing business strategy and
achievement of objectives. Amatola Water therefore identifies its highest risks as those most likely to have
a significant impact on the organisation achieving its key strategic business objectives.
The Accounting Authority of Amatola Water, being the Board, is ultimately responsible for ensuring good
governance and oversight on risk management and mitigation. The Board has delegated the operational
oversight responsibility of Risk to the Audit and Risk Committee. Management has an established Risk
Committee and appointed Risk Champions for each division. These Risk Champions assist divisional
directors to establish and monitor risk systems throughout the relevant division.
Amatola Water categorises its risks into three categories:
1. Strategic Risks
2. Divisional Risks
3. Operational / Process Risks
Amatola Water performed its risk identification based on the new integrated risk approach between July
and September 2013 with a series of Board and management workshops. A summary of the Strategic Risk
Register is included below.
Chapter 17
105
Risk Reference Strategic Objective 10 Areas Risk Description
SR1 Increased customer base and penetration (delivery options/ services).
Customer Satisfaction.
•Inability to increase Primary Revenue resulting in declining financial viability and relevance in the sector and region.
SR2 Increased customer base and penetration (delivery options/ services).
Leadership and Employee Development.
•Inability to increase Primary Revenue resulting in declining financial viability and relevance in the sector and region.
SR3 Enhanced strategic effectiveness.Build cross-functional excellence/ effectiveness. Develop operational competence (individual).
Financial Viability.
•Shortage of ring fenced grant funding for capital and O&M resulting in Bad Debts and reducing service deliver.
SR4 On-going strengthening of balance sheet to sustainable services (ratios).Surplus per financial year contribution to build reserves and infrastructure investment.Explore sourcing of funding alternatives for infrastructure development.Sustainable and affordable tariff.
Financial Viability.
•Qualified audit resulting in disestablishment (IRR).
SR5 Strengthen and deepen relationships with statutory, contracted and non statutory stakeholders.
Community/ Environmental Sustainability.
•AW becoming irrelevant in the mind of WSA’s, Communities and key water sector roleplayers.
SR6 Reliable infrastructure.Upgrade plants to provide minimum 5 megs per day.Influence Provincial Water Infrastructure Sector Planning (Master Planning).Minimise production and distribution losses.
Infrastructure Stability.
•Continuously operating infrastructure above design capacity or standard operating procedures resulting in asset stripping or premature infrastructure obsolescence.
106
Risk Reference Strategic Objective 10 Areas Risk Description
SR7 On-going strengthening of balance sheet to sustainable services (ratios).Surplus per financial year contribution to build reserves and infrastructure investment.Explore sourcing of funding alternatives for infrastructure development.Sustainable and affordable tariff.
Financial Viability.
•Inability to access the capital markets.
SR8 Improved customer satisfaction.Strengthen and deepen relationships with statutory, contracted and non statutory stakeholders.
Stakeholder Relationships and Support.
•Misalignment between AW deliverables with that of customers’ expectations/ needs and inability to manage misperceptions resulting in loss of business.
SR9 Enhanced strategic effectiveness.Build cross-functional excellence/ effectiveness.Develop operational competence (individual).
Leadership and Employee Development.
•Inability to position AW in the mind of customers and stakeholders as leader on water sector policy and setting the agenda.
SR10 Ensure uninterrupted water supply services to customers.
Operational Resiliency.
•Business disruptions resulting in financial and image loss.
Divisional risk registers with the relevant mitigation are in the process of being completed. Afterwich the
operational / process risk registers will be completed.
One of the critical risks of any business is Fraud. As such Amatola Water will have a separate Fraud
Prevention Committee reporting to the Corporate Risk Committee and at times directly to the Board
Committee as required. Amatola Water has various fraud prevention initiatives in place including:
anonymous tip-off line, declarations of conflict of interest, educational posters and information sharing,
policies and the prevention committee.
107
Declaration of Disclosure
Subject to the exceptions listed below, the board members of Amatola Water hereby CONFIRM, VERIFY AND GUARANTEE that: • Thewaterboardhastakenallreasonablestepstocomplywithalllegislationtowhichitissubject
including, but not limited to: • TheIncomeTaxAct; • TheOccupationalHealthandSafetyAct; • TheCompensationforOccupationalInjuriesandDiseasesAct; • TheLabourRelationsAct; • TheBasicConditionsofEmploymentAct; • TheSkillsDevelopmentAct; • TheEmploymentEquityActandPolicy; • TheSkillsDevelopmentLeviesAct; • TheUnemploymentInsuranceAct; • TheUnemploymentInsuranceContributionsAct; • ThePreferentialProcurementFrameworkAct; • TheAccesstoInformationAct; • TheEnvironmentalConservationAct; • TheNationalWaterAct; (Water use authorisations with regards to abstraction, storage and discharge rights) • ThePublicFinanceManagementAct; • TheMunicipalSystemsAct; • TheBroadBasedBlackEconomicEmpowermentAct • ThePensionsFundAct; • TheHazardousSubstanceAct • TheConstructionIndustryDevelopmentBoardAct • TheNationalEnvironmentalManagementAct; • TheWaterServicesAct; (S9 regulations “Norms and standards for water services, S10 regulations “Norms and
standards for water tariffs” and that all significant activities, including other activities, are included in the Business Plan)
• Undisclosed commercially sensitive information will not significantly affect viability, anyprojections or any information disclosed.
• All revenue owing to the water board has been collected or that steps have been taken inaccordance with the appropriate credit control policies.
Exceptions:• None
Signed
CHAIRPERSON: AMATOLA WATER DATE
Chapter 18
108
SHAREHOLDER COMPACT
Entered into by and between
Amatola Water
herein Represented by the Chairperson of the Board
and
The Government Of The Republic Of South Africa
herein Represented by the Minister of Water Affairs
Chapter 19
109
Agreed Principles
1. Introduction
1.1 In terms of regulation 29 of the Treasury Regulations issued in terms of the Public Finance
Management Act, 1999 Act No. 1 of 1999)(as amended) (“the PFMA”), the accounting authority for
a public entity listed in Schedule 3b, must, in consultation with its executive authority, annually
conclude a Shareholder Compact.
1.2 The Shareholder Compact must document the mandated key performance measures and
indicators to be attained by the public entity as agreed between the accounting authority and
the executive authority.
1.3 The required Shareholder Compact in the context of Amatola Water and the executive authority
comprises:
1.3.1 the agreed principles, and;
1.3.2 the key performance objectives, measures and indicators.
2. Interpretation
In this Shareholder Compact, unless otherwise indicated or contrary to the context, the words and
phrases set out below shall have the meanings ascribed to them as follows:
“Board of Directors” means the Board of Amatola Water as appointed by the Minister;
“Executive Authority” or “Minister” means the Honorable Minister of Water Affairs in his or her
capacity as such, or any other Minister of State made responsible for Amatola Water;
“Amatola Water” means the water board deemed to continue in accordance with the Water
Services Act, having its principal place of business at 6 Lancaster Road, Vincent, East London;
“party” means either the shareholder or Amatola Water and “parties” mean both the shareholder
and Amatola Water;
“Shareholder” means the Government of the Republic of South Africa, represented by the Minister.
“Shareholder Compact” means this performance agreement between Amatola Water and
Shareholder together with all appendices attached hereto, as defined in the PFMA.
“Water Services Act” means the Water Services Act, 1997 (Act No 108 of 1997);
“PFMA” means the Public Finance Management Act, 1999 Act No. 1 of 1999)(as amended) and
regulations issued in terms of this Act.
110
3. Agreed Principles
3.1 The Shareholder Compact is designed solely to regulate the relationship between the Shareholder,
on the one hand, and the Board and management on the other.
3.2 The Shareholder Compact is not intended to :
3.2.1 Interfere in any way with the normal company law principles and the normal relationship
between the Shareholder, on the one hand, and the Board on the other. In giving effect to
these principles, the Shareholder would have communicated its expectations to the Board
and management.
3.2.2 Create rights and expectations that third parties may rely upon, it being specifically
recorded that this Shareholder Compact does not create, confer or afford any third party
any rights or expectations in terms hereof.
4. Period
4.1 As contemplated in terms of the PFMA, the Shareholder Compact will be concluded on an annual basis.
4.2 This Shareholder Compact is effective for the period 1 July 2014 to 30 June 2015.
4.3 It is hereby recorded that the agreed objectives, although subject to review annually, set out
matters that are applicable beyond a period of a year. In the event that they are amended, the
parties shall take into account initiatives already commenced on the basis of such objectives.
5. Mandate, Vision and Mission of Amatola Water
5.1 The mandate of Amatola Water is set out in Sections 29 and 30 of the Water Services Act.
5.2 In addition to its mandate, the Shareholder acknowledges that Amatola Water has a strategic
developmental role that may require decisions that are not always optimal from a commercial
perspective, but contribute to National Government’s broader objectives and the growth and
development in South Africa and Africa.
5.3 The Strategic Intent/Vision of Amatola Water is:
“To lead sustainable bulk water services in the Eastern Cape”.
5.4 The Mission of Amatola Water is:
“Amatola Water strives to contribute to the public health and community livelihoods by providing
bulk potable water, bulk sanitation to Water Service Authorities and managing water resource
management infrastructure”
111
6. Strategic Objectives
6.1 In order to attain its strategic intent, Amatola Water has set the following strategic objectives,
which will focus and direct the business activities of the organisation over the planning period:
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
SC: Stakeholder and Customer
CS: Customer Satisfaction 2 additional Bulk water supply contracts with WSA (3 currently) (ROU)
Increase volumes to 160 mega litres per day
Improved customer satisfaction 7.5/10 average score
Acquire contracts for Water Resource Infrastructure Management
Acquire contracts for Waste water works
WQ: Water and Waste Water Quality
Achieve Statuary Quality compliance at All AW Owned and ROU plants efficiently
Blue drop advisory services
CE: Community / EnvironmentalSustainability
Contribute to decent living standards and enhance public health within communities in ADM through quality adequate water services
Provide services and invest in technologies / systems in an environmentally responsible and sustainable manner
SS: Stakeholder Relationships & Support
Strengthen and deepen relationships with statuary, contracted and non statutory stakeholders
Be centre of new provincial regional bulk utility
F: Financial Perspective FV: Financial Viability On-going strengthening of Balance Sheet to sustainable services (Ratios)
Surplus per financial year contribution to build reserves for infrastructure investment
Explore sourcing of funding alternatives for growth of new infrastructure (excluding replacement)
Sustainable and affordable Tariff
112
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
P: Internal Processes WA: Water Resource Adequacy
98% Assurance of supply in ADM, Ndlambe and ORTDM Region (Sandile and Mzintlava Dams)
IS: Infrastructure Stability 90% Availability of water supply for all bulk services
AW Plant Upgrade and KSD PI Projects
Develop and EC water master plan to direct future funding streams
Minimise production and distribution water losses
OR: Operational Resiliency Interconnected supply to Amahlathi, Ngqushwa, Nkonkobe, Ndlambe
Business continuity system implemented
Fully implemented IMS system
Accredited laboratory providing services across the entire Eastern Cape
OO: Operational Optimisation
Aligning People, Skills, Systems, Policies and Procedures for Strategy Implementation
Fully functional governance, compliance, risk and fraud prevention systems for clean audit
Continuous improvement system
LG: Learning and Growing ED: Leadership & Employee Development
Enhanced Strategic Effectiveness
Build Cross-Functional Excellence/ Effectiveness
Develop Operational Competence (individual)
Entrenching the appropriate corporate culture: Decisive Leadership; resolving Organisational Politics; and Issues of Conflict
To be a renowned knowledge hub for the water services sector in the Eastern Cape
6.2 The Amatola Water strategic objectives, as setout in 6.1 above, are underpinned by specific goals,
defined key activities and targets. These are broadly categorized as follows:
6.2.1 Financial
I ncrease the financial turnover and improve the sustainability of the organisation. This will be
achieved through growth in the primary business while maintaining secondary business services
at there current levels
113
6.2.2 Customer
Increase the client base of the organisation and penetration of services with clients. This will be
achieved through the provision of legally compliant, efficient and effective service delivery.
6.2.3 Internal
Focus will be placed on ensuring water resource adequacy, improving infrastructure stability,
reinforcing operational resiliency and enhancing operational optimization.
6.2.4 Learning and Growth
The organisation will focus on developing the capacity and skills of its staff through targeted
training programmes and partnerships. A strong emphasis will also be placed on developing
leadership capacity within the organisation.
7. Amatola Water’s Developmental Role
7.1 Initiatives in support of Amatola Water’s developmental role can be classified into the following categories:
7.1.1 Social Development Initiatives such as shareholder projects, BBBEE promotion, water
conservation/awareness programmes, donations and social investment.
7.1.2 Developmental Projects that have a significant developmental impact with a particular
focus on improving rural livelihoods will be implemented by Amatola Water.
7.1.3 Training and Capacity Building initiatives such as developing a learning academy, a graduate
placement programme, a bursary scheme and continuing professional development programmes.
7.2 The shareholder hereby confirms that the Board is empowered to develop such high impact
projects. As regards any major developmental projects, it is necessary that Amatola Water’s
developmental role be fulfilled in a manner that is effective and sustainable.
7.3 In the event that the Executive Authority issuing a directive that Amatola Water undertakes
shareholder projects, such directive will be issued in accordance with the provisions of relevant
sections of the WSA and the PFMA.
8. Business Plan and Strategic Intent
8.1 Amatola Water’s Business Plan, incorporating its Policy Statement and related financial plans shall be
submitted to the Executive Authority in terms of Section 40 of the WSA and Section 52 of the PFMA.
8.2 Amatola Water shall ensure that its Business Plan and its objectives, goals and targets are aligned with
the strategic intent, which will inform the business focus and direction for Amatola Water into the future.
8.3 The strategic business targets, as set out below will be the measure for control and monitoring of
the performance of Amatola Water by the shareholder.
114
9. Roles and Responsibilities
9.1 The Shareholder:
9.1.1 Is hereby empowered and hereby reserves the right to determine initiatives, projects or
activities that Amatola Water shall undertake or become involved in, in the national interest.
9.1.2 The key performance measures for Amatola Water shall be adjusted by the Shareholder to
take into account Amatola Water’s developmental role.
9.1.3 The Board and the Shareholder shall agree on an amount to be set aside for developmental
projects annually referred to in clause 7.
9.2 The Board:
9.2.1 is hereby mandated to oversee and to contribute to development of the strategic intent and
furthermore to oversee the management of the business in accordance with such strategic
intent, business plan and any applicable legislation;
9.2.2 and its members shall exercise their skill and fiduciary duties to ensure that management
pursue the objectives and targets as set out in the business plan;
9.2.3 commits itself to the achievement of the Strategic Intent, strategic objectives and goals of
Amatola Water, and always to act within its powers and the best interests of Amatola Water,
the shareholder and customers;
9.2.4 accepts responsibility to direct and guide the business in a proper manner in keeping with
good governance practices, the Water Services Act, the PFMA, this Shareholder Compact,
including the Business Plan and Policy Statement; and
9.2.5 recognises the importance of speedy decision-making, and will use its best endeavors to
prevent undue delays with regard to critical decisions.
9.2.6 will ensure that Amatola Water and all its subsidiaries shall, subject to relevant legislation,
comply with the policies of the Shareholder, and that they adhere to acceptable governance
practices in terms of reporting and accountability.
10. Undertakings by the Shareholder
The Shareholder undertakes for the duration of the agreement:
10.1 not to introduce new or additional requirements during the validity of this compact other than
through a process of consultation with the Board;
10.2 to provide reasonable notice before the introduction of any new or additional requirements;
115
10.3 that, if new or additional requirements are introduced, the parties shall amend the key performance
indicators and targets;
10.4 on the specific request of the request of the Board , to provide appropriate strategic leadership,
support and direction to Amatola Water, where necessary, to enable the Board to fulfill its fiduciary
responsibilities.
11. Key Performance Measures and Indicators
The corporate strategic Key Performance Indicators for Amatola Water, as contemplated in the
PFMA, are attached hereto, it is hereby recorded that they have been accepted by the Shareholder
at the Board Meeting held on 25 April 2014.
Dated at…………………………………on this the………..day of………………………………2014.
…………………………………………………………….
(Chairperson of the Board of Amatola Water)
AS WITNESSES:
1……………………………………………………………….
2……………………………………………………………….
Dated at……………………………………………on this the……………………day of………………………..2014.
………………………………………………………………
(Minister of Water Affairs)
Shareholder Representative for and on behalf of the Republic of South Africa).
AS WITNESSES:
1…………………………………………………………….
2……………………………………………………………….
116
Annual Shareholder Compact Appendix
Amatola Water: Period 2014 To 2018
Shareholder Compact APPENDIX 1
1. Introduction
The performance indicators and targets in Appendix 1 to the shareholder compact are aligned
with the Strategic Plan of the Department of Water Affairs, as set out below.
No Strategic outcome oriented goals
Government outcomes and other initiatives
Strategic objectives
1. An efficient, effectiveand developmentoriented sector leader
12 (Public service) 1.1. Improve and increase the skills pool and build competencies in the Department and within the sector
1.2. Effective and efficient internal control environment
1.3. Implement programmes that create job opportunities
New Growth Path 2 (job creation)
1.4. Improve water resources and water services information
1.5. Coordinate regional and global water cooperation
1.6. Ensure effective performance of water management and services institutions
2. Equitable andsustainable provisioningof raw water
6 (Infrastructure)
New Growth Path 2
2.1. Ensure the availability of / access to water supply for environmental and
socioeconomic use
2.2. Improve equity and efficiency in water allocation
2.3. Strengthen and implement strategies for water management in the country
2.4. Improve water use efficiency
3. Provision of equitable and sustainable water services of acceptable quantity and quality
9 (Local government) 3.1. Ensure compliance to water legislation
3.2. Support the water sector
4. Protection of freshwaterecosystems
10 (Environment) 4.1. Ensure compliance to water legislation
4.2. Improve the protection of water resources and ensure their sustainability
117
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terr
up
tio
ns
to s
up
ply
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ee
din
g 2
4
ho
urs
% n
um
ber
of
da
ys
sup
ply
d
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pte
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ide
d b
y
tota
l n
um
ber
of
po
ssib
le
sup
ply
da
ys
%2
22
22
2
4.
Fin
an
cia
l R
ep
ort
ing
C
om
plia
nce
9 –
Lo
ca
l G
ove
rnm
en
tS
O 3
.1un
qu
alif
ied
a
ud
it r
ep
ort
An
nu
al
exte
rna
l a
ud
itQ
ua
lifie
d/
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qu
alif
ied
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-
qu
alif
ied
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-
qu
alif
ied
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-
qu
alif
ied
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-
qu
alif
ied
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-
qu
alif
ied
Un
-
qu
alif
ied
5.
Sta
ff T
urn
ove
r12
- Pu
blic
S
erv
ice
SO
1.1
Op
tim
al st
aff
re
ten
tio
n%
sta
ff
lea
vin
g%
8.4
76
66
6
6.
Bo
ard
Me
mb
er
Att
en
da
nce
12-
Pu
blic
S
erv
ice
SO
1.2
Imp
rove
d
perf
orm
an
ce
of
fid
ucia
ry
du
tie
s/g
ove
rna
nce
An
nu
al
perf
orm
an
ce
a
sse
ssm
en
t
%8
68
08
08
08
08
0
7.
Eff
ecti
ve
Inte
rna
l C
on
tro
ls
An
d R
isk
Ma
na
ge
me
nt
12-
Pu
blic
S
erv
ice
SO
1.2
Inte
rna
l a
ud
it
fin
din
gs
de
alt
w
ith
Inte
rna
l a
ud
it
rep
ort
sN
o r
ep
ea
t a
nd
un
reso
lve
d
fin
din
gs
40
105
22
2
8.
Bulk
Sup
ply
Ag
reem
ents
C
onc
luded
with
M
unic
ipalit
ies/
O
ther
Cus
tom
ers
12-
Pu
blic
S
erv
ice
SO
1.6
Sta
tuto
ry a
nd
se
rvic
e l
eve
l a
gre
em
en
ts i
n
pla
ce
Mun
icip
alit
ies/
oth
er
cu
sto
mers
w
ith
bulk
su
pp
ly
ag
ree
me
nts
%10
010
010
010
010
010
0
118Pe
rfor
man
ce
Obj
ectiv
eAl
ignm
ent
Out
com
es/I
mpa
ctIn
dica
tors
Mea
sure
Actu
al20
13/1
4Ta
rget
2014
/15
Targ
et20
15/1
6Ta
rget
2016
/17
Targ
et20
17/1
8Ta
rget
2018
/19
Gov
ernm
ent
Out
com
esDW
A St
rate
gic
Pl
an
9.
Imp
rove
Fin
anci
al R
ati
os
12-
Pu
blic
S
erv
ice
SO
1.6
Imp
rove
d
via
bili
ty a
nd
su
sta
ina
bili
ty
Fin
an
cia
l ra
tio
sLiq
uid
ity
0.8
71.25
1.5
01.5
01.75
1.75
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ss p
rofi
t m
arg
in %
22
30
30
35
40
45
Net
pro
fit
ma
rgin
%
(pri
ma
ry
acti
vit
y)
0%
3%
4%
4.5
%5
%5
%
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bt
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uit
y%
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1%1%
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rn o
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ass
ets
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bto
rs
da
ys
113
da
ys
60
da
ys
60
da
ys
60
da
ys
60
da
ys
60
da
ys
10.
Incre
ase
BB
BE
E S
pe
nd
12-
Pu
blic
S
erv
ice
SO
1.3
% o
f sp
en
d
incre
ase
d a
nd
in
cre
ase
d n
ew
e
ntr
an
ts
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art
erl
y
rep
ort
s %
in
cre
ase
75
100
100
100
100
100
11.
Ma
na
ge
Co
sts
Wit
hin
Th
e
Ap
pro
ved
B
ud
get
12-
Pu
blic
S
erv
ice
SO
1.2
No
ove
r exp
en
dit
ure
/lo
sse
s
Fin
an
cia
l re
po
rts
% v
ari
an
ce
55
55
55
12.
Ca
pit
al
Exp
en
dit
ure
6 -
In
fra
stru
ctu
reS
O 2
.1In
fra
stru
ctu
re
ava
ilab
le
to m
eet
de
ma
nd
s
Ove
rall
pro
ject
exp
en
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ure
w
ith
in R
ta
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% v
ari
an
ce
97
1010
1010
10
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rall
pro
ject
co
mp
leti
on
d
ate
s w
ith
in
targ
ets
% v
ari
an
ce
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1515
1515
15
13. I
ncre
ase
d
Acce
ss t
o S
erv
ice
s6
-
Infr
ast
ructu
reS
O
2,1,
2.3
Co
ntr
ibu
tio
n
to n
ati
on
al
ob
jecti
ves
CA
PE
X s
pe
nd
/p
roje
cts
C
APE
X
spe
nd
(‘
00
0)
R14
25
1 3
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8 1
47 8
41
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35
06
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51
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69
7 5
00
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00
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00
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00
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14.E
ng
ag
em
en
t in
Se
co
nd
ary
A
cti
vit
ies
9 –
Lo
ca
l G
ove
rnm
en
tS
O
3.2
Exte
nt
of
invo
lve
me
nt
% o
f to
tal
turn
ove
r4
83
23
028
26
25
15. A
ch
ieve
S
tatu
tory
R
ep
ort
ing
C
om
plia
nce
12-
Pu
blic
S
erv
ice
SO
1.2
Re
po
rtin
g
co
mp
lian
ce
a
ch
ieve
d
Sta
tuto
ry
sub
mis
sio
ns
ma
de
on
tim
e
Su
bm
issi
on
d
ate
s m
et/
mis
sed
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da
tes
met
All
da
tes
met
All
da
tes
met
All
da
tes
met
All
da
tes
met
All
da
tes
met
119Pe
rfor
man
ce
Obj
ectiv
eAl
ignm
ent
Out
com
es/I
mpa
ctIn
dica
tors
Mea
sure
Actu
al20
13/1
4Ta
rget
2014
/15
Targ
et20
15/1
6Ta
rget
2016
/17
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et20
17/1
8Ta
rget
2018
/19
Gov
ernm
ent
Out
com
esDW
A St
rate
gic
Pl
an
16. J
ob
s C
rea
ted
12-
Pu
blic
S
erv
ice
SO
1.3
Perm
an
en
t a
nd
co
ntr
act
(dir
ect)
Tota
l N
um
ber
Nu
mb
er
34
23
55
36
5375
38
54
00
12-
Pu
blic
S
erv
ice
SO
1.3
Tem
po
rary
(i
nd
ire
ct)
Tota
l N
um
ber
Nu
mb
er
70
46
00
95
020
015
015
0
17. C
orp
ora
te
So
cia
l R
esp
on
sib
ility
In
itia
tive
s
12-
Pu
blic
S
erv
ice
SO
1.6
Go
od
co
rpo
rate
cit
ize
nsh
ip
Nu
mb
er
of
init
iati
ves
Nu
mb
er
an
d
R
va
lue
02
23
34
18. T
rain
ing
A
nd
Skill
s D
eve
lop
me
nt
12-
Pu
blic
S
erv
ice
SO
1.3
Skill
s a
nd
ca
pa
cit
y
bu
ildin
g
Tra
inin
g
co
urs
es,
le
arn
er-
ship
s,
bu
rsa
rie
s
Tota
l N
um
ber
21
150
20
025
025
025
0
19. G
oo
d
Go
vern
an
ce
12
- Pu
blic
S
erv
ice
S O
1.2
Imp
rove
d
co
ntr
ols
an
d
risk
mit
iga
tio
n
Bre
ach
es
of
ma
teri
alit
y
an
d
sig
nif
ica
nce
fr
am
ew
ork
Nu
mb
er
00
00
00
20
. Oth
er
(wa
ter
bo
ard
sp
ecif
ic
ob
jecti
ves)
120
Annexure A - Service Area Map
Leg
en
d
A
ma
tola
Wa
ter’
s G
aze
tte
d A
rea
of
Op
era
tio
n (
47 5
15K
m2)
Lo
ca
l Mun
icip
alit
ies
A
rea
of
Op
era
tio
n 2
014
D
istr
ict
Mun
icip
alit
ies
121
Annexure B - Scheme Layout Plan
Pe
dd
ie
Re
gio
na
l S
up
ply
Sa
nd
ile
D
am
Su
pp
ly
La
ing
Da
m
Su
pp
ly
Bin
fie
ld P
ark
D
am
Su
pp
ly De
be
Da
m
Su
pp
ly
Na
ho
on
D
am
Su
pp
ly
Mn
ya
me
ni/
Ma
sin
ce
da
ne
Ro
oik
ran
tz
Da
m
Su
pp
ly
Gle
nm
ore
Su
pp
ly
Ke
nto
n-O
n-S
ea
S
up
ply
Ma
ka
na
Am
ah
lath
i
Nk
on
ko
be
Ng
qu
sh
wa
Nd
lam
be
Bu
ffa
lo
Cit
yGre
at
Ke
i
ALI
CE
KO
MG
A
PE
DD
IE
BH
ISH
O
BE
RLI
N
HA
MB
UR
G
SE
YM
OU
R
BA
TH
UR
ST
MD
AN
TS
AN
E
ALE
XA
ND
RIA
EA
ST
LO
ND
ON
PO
RT
ALF
RE
D
MID
DLE
DR
IFT
ST
UT
TE
RH
EIM
GR
AH
AM
ST
OW
N
CA
NN
ON
RO
CK
S
KE
NT
ON
ON
SE
A
FO
RT
BE
AU
FO
RT
KE
ISK
AM
MA
HO
EK
KIN
G W
ILLI
AM
'S
TO
WN
KE
I R
OA
D
Am
at
ol
a
Wa
te
rA
re
as
o
f
Su
pp
ly
2
01
4A
ma
to
la
W
at
er
Ar
ea
s
of
S
up
pl
y
20
14
Lege
nd Tow
nsS
uppl
y A
reas
Loca
l Mun
icip
aliti
es
CA
CA
DU
CH
RIS
HA
NI
JOE
GQ
AB
I
AM
ATH
OLE
O.R
. TA
MB
O
ALF
RE
D N
ZO
BU
FFA
LO C
ITY
MET
RO
NEL
SON
MA
ND
ELA
BA
Y M
ETR
O
Ea
st
er
n
Ca
pe
L
oc
al
it
y
Ma
p
Leg
en
d
To
wn
s
S
up
ply
Are
as
Lo
ca
l Mun
icip
alit
ies
122
Annexure C - Key Statistics
Contact Details
CEO Name: M Msiwa
Telephone: 043-7073700
Fax: 043-7073701
Cell:
E-Mail: [email protected]
CFO Name: J Dlamuka
Telephone: 043-7073700
Fax: 043-7073701
Cell:
E-Mail: [email protected]
Postal Address Private Bag X3
Vincent
East London
5217
Scheme Name and Responsibility
Year 0 (current year) 2014 Bulk Responsibility Retail Responsibility
Scheme or supply area 1 Nahoon Y N
Scheme or supply area 2 Laing Y N
Scheme or supply area 3 Sandile Y N
Scheme or supply area 4 Peddie Y N
Scheme or supply area 5 Binfield Y N
Scheme or supply area 6 Masincedane Y N
Scheme or supply area 7 Upper Mnyameni Y N
Scheme or supply area 8 Debe Y N
Scheme or supply area 9 Glenmore Y N
Scheme or supply area 10 Bushmans River / Kenton-on-Sea Y N
123
Annexure C - Key Statistics
Macro Economic Assumptions
Item Business Plan Assumptions
2014Year 0
2015Year 1
2016Year 2
2017Year 3
2018Year 4
2019Year 5
Raw water tariff increase percentage
12.90% 12.90% 12.90% 12.90% 12.90% 12.90%
CPIx (as provided by DWAF / National Teasury)
6.00% 5.90% 5.70% 5.40% 5.40% 5.20%
Investment Rates (Fixed) 7.84% 8.10% 8.68% 9.55% 9.67% 9.74%
Borrowing Rates (Short Term)
8.50% 8.50% 9.25% 10.50% 10.50% 10.50%
Borrowing Rates (Long Term)
7.18% 7.72% 8.10% 8.59% 8.83% 8.98%
Emoluments Increases 7.58% 8.15% 8.50% 7.90% 8.00% 7.80%
Electrical Power 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Chemicals 5.90% 5.60% 5.30% 5.50% 5.50% 5.30%
PPI 5.90% 5.60% 5.30% 5.50% 5.50% 5.30%
Number of Employees 342 345 355 365 375 385
Water Research Levy 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Maintenance 5.90% 5.60% 5.30% 5.50% 5.50% 5.30%
124
Annexure C - Key Statistics
Regional Socio-economic Statistics (2011 Census)
Population Population growth
Average Household
size
% below poverty line
Average Household
income
Percentage Employed
Percentage unemployed
Eastern Cape 6 562 052 0.4% 3.8 30.8% R 5 900 40.6% 30.8%
OR Tambo 1 364 943 0.5% 4.5 36.5% R 4 000 15.0% 43.1%
Amatole 892 637 0.6% 3.5 32.0% R 3 700 17.5% 42.0%
Alfred Nzo 801 344 0.4% 4.7 37.0% R 3 370 15.3% 42.0%
Chris Hani 795 461 -0.2% 3.6 30.3% R 4 560 21.0% 38.0%
Cacadu 450 584 1.5% 3.7 22.9% R 6 960 41.3% 25.0%
Joe Gqabi 349 768 0.6% 3.6 47.0% R 4 190 25.0% 34.3%
Change in Access to Water Services between 1995 and 2011(Census Data)
Piped water inside
dwelling
Piped water inside
yard
Communal Piped water
<200m.
Communal Piped
water> 200m.
Water-carrier/ tanker/
Water vendor
Borehole/ rain-water tank/well
Dam/river/ stream/
spring
Other/Unspecified/
Dummy
Eastern Cape 23.6 16.5 20 12.4 0.4 4.1 22.1 0.9
Cacadu 48.7 30.5 7.6 8.2 0.3 2 1.5 1.2
Amatole 21.6 17.5 24.3 14.1 0.3 5.3 16.3 0.7
Chris Hani 17.5 17.7 26.6 14.2 0.4 3.8 19.1 0.7
Joe Gqabi 11 18.4 23.2 14.6 1.4 4 25.4 2.1
OR Tambo 4.6 6.8 17 10.7 0.6 6.6 52.7 1
Alfred Nzo 4.1 11.8 37.2 17 0.5 2.3 26.6 0.5
1995 (%)
Eastern Cape 20.6 13.2 13 11.8 0.6 3.6 35.6 1.6
Cacadu 34.1 32.5 14.8 7.5 0.5 5.6 4.2 0.8
Amatole 20.6 11.2 18.3 13.6 0.8 3.1 30.5 1.9
Chris Hani 14.2 11.1 14.7 13.7 0.7 4.2 39.5 1.8
Joe Gqabi 9.2 11 18.3 14.7 0.5 7.9 36.5 1.9
OR Tambo 3.3 5.3 6.6 10.5 0.8 3.4 68.5 1.6
Alfred Nzo 2.8 5 9.7 16.4 0.6 8.5 55 1.9
125
Annexure C - Key Statistics
Change in Access to Sanitation between 1195 and 2011 (Census Data)
Flush/ chemical Pit latrine Bucket latrine Other
2011 (%)
Eastern Cape 38.7 27.2 3.6 30.5
Cacadu 71.6 12.9 8.1 7.4
Amatole 39.9 28.6 2.2 29.4
Chris Hani 28.3 26.2 3.5 42.1
Joe Gqabi 21.3 35.2 6.1 37.3
OR Tambo 9.8 36.1 0.8 53.4
Alfred Nzo 10.6 62.5 1.6 25.2
1995 (%)
Eastern Cape 32.3 30.1 6.7 30.9
Cacadu 42.2 26.6 19.7 11.6
Amatole 36.2 32.4 2.8 28.7
Chris Hani 19.5 31 7 42.4
Joe Gqabi 12.9 35.3 9.8 42
OR Tambo 8.3 39.5 2.6 49.6
Alfred Nzo 6.2 60 1.4 32.3
Human Development Index by district, 1995 – 2010 (Quantec)
1995 2005 2010
Eastern Cape 0.582 0.528 0.513
Cacadu 0.569 0.521 0.526
Amatole 0.592 0.534 0.524
Chris Hani 0.546 0.491 0.479
Joe Gqabi 0.518 0.493 0.497
OR Tambo 0.520 0.468 0.465
Alfred Nzo 0.543 0.552 0.551
Nelson Mandela Bay Metro 0.667 0.663 0.656
126
Annexure D - Strategic Plan and Corporate Scorecard
Amatola Water 20 Year Strategy 2013 to 2033
1. Overview
Amatola Water has adopted a standard strategy formulation, implementation and monitoring
cycle as displayed in the figure below:
2. Structure of Amatola Water Corporate Scorecard
Amatola Water has adopted the Balanced Scorecard approach with the four quadrants as set
out by Kaplan and Norton. As an organ of state and not an organisation which focus on profit
the customer quadrant is renamed and placed before the financial quadrant. As delivering on
customer and stakeholder expectations in the desired end result and finance a mechanism that
enables this, not the end result. This view is supported by Kaplan and Norton for organisations
that are not established for financial gain, thus the four quadrants are as follows:
1. Stakeholder and Customer Quadrant
2. Financial Quadrant
3. Internal Processes Quadrant
4. Learning and Growth Quadrant
As part of giving appropriate structure to its strategy measures and performance monitoring and
management system, Amatola Water has also adopted the Ten Areas for Successful Water Utility
Service Provision.
SWOT and Environmental Analysis
Vision, Mission, Strategic Intent, 20yr & 5yr
Strategic Goals, Strategic Interventions
Divisional Business Plans and Scorecards
(Individual Performance Contracts Aligned)
5yr & 1yr Corporate Scorecard, Budgets,
Activities
Review Resource Requirements for Successful Implementation: Structure,
Financial, Infrastructure
Develop Systems and Processes that Support
Strategy Implementation
Monitoring and Managing Performance against
Strategy
Update Business Plan and Shareholders
Compact
Quarterly Reporting and Organisational Performance MonitoringPresentations quarterly by managers per division against set objectives
Continue Working and Reporting on Existing Scorecard, Business Plan, Shareholders Compactand Performance Contracts until Start of New Financial Year
127
Product Quality
Customer Satisfaction
Water Resources Adequacy
Infrastructure Stability
Stakeholder Support
Financial Viability
Operational Optimisation
Employee Leadership/
Development
CommunitySustainability
Operational Resiliency
Effective and Holistic WSP Function
These ten fit within the four balanced scorecard quadrants and help ensure Amatola Water focuses on
all the relevant areas to be a successful water utility. The ten are as follows:
1. Water and Wastewater Quality: is achieved when Amatola Water produces bulk potable water
and wastewater in compliance with statutory requirements and consistent with customer needs
at both AW owned and ROU plants.
2. Customer Satisfaction: is the degree to which Amatola Water provides reliable, responsive, and
affordable products and services to WSA customers which meet or surpass customer expectations.
Timely feedback to customer-agreed service levels to maintain responsiveness to customers
needs and to delight these customers.
3. Stakeholder Relationships and Support: As an organ of state Amatola Water has a variety of
different stakeholders, most notable is the Department of Water Affairs. This outcome includes
managing and building relationships with the various stakeholder groups by aligning initiatives
to support key stakeholder programs and informed by the inter-governmental framework, as
well as influencing these stakeholders to have common understanding of Amatola Water role and
catalytic initiatives within the sector.
4. Infrastructure Stability: is achieved when Amatola Water’s infrastructure is consistent with
customer service levels, and consistent with anticipated growth and system reliability goals.
5. Financial Viability: is achieved when Amatola Water manages operating expenditures and
increasing revenues in a manner that strengthens the balance sheet in a sustainable manner. In
addition, the organisation aims at a sustainable tariff that is consistent with customer expectations,
recovers costs and provides for future expansion.
128
6. Water Resource Adequacy: is achieved when Amatola Water assesses the scarcity of freshwater
resources, investigates sustainable alternatives, manages water abstractions assiduously and has
access to stable raw water resources to meet current and future customer needs.
7. Community / Environmental Sustainability: is achieved when Amatola Water is explicitly cognisant
of and attentive to the impacts it has on current and future community sustainability, supports
socio economic development and manages its operations, infrastructure, and investments to
protect, restore and enhance the natural environment, whilst using energy and other natural
resources efficiently.
8. Leadership and Employee Development: is achieved when Amatola Water is dedicated to continual
learning and improvement, recruits and retains a workforce that is competent, motivated,
adaptive and works safely, ensures institutional knowledge is retained and improved, provides
opportunities for professional and leadership development and is led by an integrated senior
leadership team.
9. Operational Resiliency: is achieved when Amatola Water proactively and effectively manages
business risks across all areas of the business in a manner that ensures sustainability of the
organisation even in times of challenges and difficulties.
10. Operational Optimization: is achieved when Amatola Water has ongoing, timely, cost-effective,
reliable, and sustainable performance improvements in all facets of its operations, has a culture of
accountability and every employee and department striving to improve systems and processes.
3. Strategic Direction, Vision, Mission and Values
Vision
“To lead sustainable bulk water services in the Eastern Cape”.
Mission
“Amatola Water strives to contribute to the public health and community livelihoods by providing
bulk potable water, bulk sanitation to Water Service Authorities and managing water resource
management infrastructure”
Values
Amatola Water values continue as: “We are inspired by an unwavering commitment to empower our
stakeholders through the consistent demonstration of:
Responsibility
Excellence
Integrity
Accountability”
129
4. 20 Year Strategic Goals and Catalytic Initiatives
4.1 20 Year Goals
Product Quality (Primary):
20 years Blue and Green Drop certification for all bulk works - (owned and ROU)
Providing accredited laboratory water services for the entire province
Primary Product Quantity:
20 years Increase volumes to 350 mega litres per day
Customer Satisfaction:
20 years 80% of WSA’s in the province as contracted customers through ownership or ROU
Employee / Leadership Development:
20 years Enhanced Strategic Effectiveness
Build Cross-Functional Excellence/ Effectiveness
Develop Operational Competence (individual)
Renowned knowledge hub for water services sector in EC
Water Resource Adequacy:
20 years 98% Assurance of Supply at a minimum service level of 750ℓ per household per day
Community Sustainability:
20 years Contribute to decent living standards and enhance public health within communities in EC through quality adequate water services
Financial Viability:
Baseline: current volume 31 million m3 / annum (+-120,000 households)
20 years Improve solvency, liquidity and profitability to achieve a Fitch Investment Grade rating
Infrastructure Stability:
Baseline: current volume 31 million m3 / annum (+-120,000 households)
130
20 years 80 % of the infrastructure master plan implemented (investment / needed resources)
98% Availability of Water Supply and 90% reliability of sanitation services
Operational Resiliency:
20 years Bulk water utility with interconnected regional schemes in the Eastern Cape
Fully implemented businesses continuity system (IMS, Quality systems, Knowledge Management)
Operational Optimisation:
20 years Continuous improvement philosophy institutionalized
Continuous alignment of People, Skills, Systems, Policies and Procedures for Strategy Implementation
Stakeholder Support:
20 years To be the center of a fully-fledged provincial water utility (IRR)
Strong and well established relationships with stakeholders – internal and external
4.2 Catalytic Initiatives
The following are the list of key Catalytic Initiatives which will drive the successful
implementation of the strategy and success of Amatola Water:
1. Institutional Realignment and Reform.
2. AW Plant Upgrade and KSD PI Projects.
3. Aligning People, Skills, Systems, Policies and Procedures for Strategy
Implementation.
4. Entrenching the appropriate corporate culture: Decisive Leadership; resolving
Organisational Politics; and Issues of Conflict.
5. Fully functional governance, compliance, risk and fraud prevention systems for
clean audit.
131
5. 5 Year Strategic Objectives
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
SC: Stakeholder and Customer
CS: Customer Satisfaction
2 additional Bulk water supply contracts with WSA (3 currently) (ROU)
Increase volumes to 160 mega litres per day
Improved customer satisfaction 7.5/10 average score
Acquire contracts for Water Resource Infrastructure Management
Acquire contracts for Waste water works
WQ: Water and Waste Water Quality
Achieve Statuary Quality compliance at All AW Owned and ROU plants efficiently
Blue drop advisory services
CE: Community / Environmental Sustainability
Contribute to decent living standards and enhance public health within communities in ADM through quality adequate water services
Provide services and invest in technologies / systems in an environmentally responsible and sustainable manner
SS: Stakeholder Relationships & Support
Strengthen and deepen relationships with statuary, contracted and non statutory stakeholders
Be centre of new provincial regional bulk utility
F: Financial Perspective
FV: Financial Viability On-going strengthening of Balance Sheet to sustainable services (Ratios)
Surplus per financial year contribution to build reserves for infrastructure investment
Explore sourcing of funding alternatives for growth of new infrastructure (excluding replacement)
P: Internal Processes WA: Water Resource Adequacy
98% Assurance of supply in ADM, Ndlambe and ORTDM Region (Sandile and Mzintlava Dams)
IS: Infrastructure Stability
90% Availability of water supply for all bulk services
AW Plant Upgrade and KSD PI Projects
Develop and EC water master plan to direct future funding streams
Minimise production and distribution water losses
132
Balanced Scorecard Quadrant WSU Area (10 Outcomes) 5 Year Objective(s)
P: Internal Processes OR: Operational Resiliency
Interconnected supply to Amahlathi, Ngqushwa, Nkonkobe, Ndlambe
Business continuity system implemented
Fully implemented IMS system
Accredited laboratory providing services across the entire Eastern Cape
OO: Operational Optimisation
Aligning People, Skills, Systems, Policies and Procedures for Strategy Implementation
Fully functional governance, compliance, risk and fraud prevention systems for clean audit
Continuous improvement system
LG: Learning and Growing
ED: Leadership & Employee Development
Enhanced Strategic Effectiveness
Build Cross-Functional Excellence/ Effectiveness
Develop Operational Competence (individual)
Entrenching the appropriate corporate culture: Decisive Leadership; resolving Organisational Politics; and Issues of Conflict
To be a renowned knowledge hub for the water services sector in the Eastern Cape
133
6.
Co
rpo
rate
Sco
reca
rd
WSU
O
b No
.O
bjec
tives
Me
No.
Mea
sure
/
Indi
cato
rBa
se li
neY1
Targ
etQ
1 Ac
tual
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etQ
2 Ac
tual
Com
men
t
STAK
EHO
LDER
& C
USTO
MER
PER
SPEC
TIVE
CS
CS
1
Incre
ase
d
cu
sto
mer
ba
se
an
d p
en
etr
ati
on
(d
eliv
ery
op
tio
ns/
se
rvic
es)
CS
1.1
Nu
mb
er
of
bulk
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tab
le
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ter
su
pp
ly
ag
ree
me
nts
33
33
3B
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&
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pla
ce
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nts
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lace
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1
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lum
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ate
r S
old
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ne
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RO
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nts
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ay
87
90
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8
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s n
orm
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uri
ng
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me
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CS
2
Imp
rove
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rag
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ore
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--
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em
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ple
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ieve
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at
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& R
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au
se
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the
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mp
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ce
ta
rget
134W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
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Actu
alQ
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rget
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mm
ent
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w
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Pro
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vest
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/ sy
ste
ms
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vir
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lly
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ust
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2.1
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om
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nce
w
ith
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nvir
on
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l m
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OU
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f 10
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rks
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mp
lian
t
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no
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No.
Obj
ectiv
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e No
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easu
re /
In
dica
tor
Base
line
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n
pro
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ms
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po
rary
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ob
s C
rea
ted
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nd
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66
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en
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a
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ith
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acte
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tuto
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keh
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SS
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plia
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ith
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uth
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P a
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D
WA
Str
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DW
A q
ua
rterl
y
rep
ort
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bm
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d
late
SS
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om
plia
nce
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ith
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ntr
actu
al
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mm
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ts
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l cu
sto
mers
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%0
95
%0
Syst
em
s st
ill b
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1.3
No
of
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nsu
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tive
m
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ith
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y i
nte
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g
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ps
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42
10
Sti
ll o
n t
arg
et
for
the
ye
ar
FINA
NCIA
L PE
RSPE
CTIV
E
FV
FV
1
On
-go
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st
ren
gth
en
ing
of
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lan
ce
Sh
eet
to s
ust
ain
ab
le
serv
ice
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ati
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FV
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uid
ity R
ati
os:
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1.25
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51.2
1
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e c
urr
en
t ra
tio
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vers
e a
t th
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art
er
2, t
he
de
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ve s
ign
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tly
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cre
ase
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om
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red
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t ye
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en
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y a
lmo
st 5
9%
.
136W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
1.2
De
bto
rs D
ays
113
70
132
70
127
Th
e d
eb
tors
’ da
ys
are
ad
vers
e a
s th
e
ba
lan
ce
of
tra
de
d
eb
tors
in
clu
de
b
oth
pri
ma
ry a
nd
se
co
nd
ary
de
bto
rs
wh
ere
FV
1.3
Em
plo
ye
e t
o
reve
nu
e
(R
Mill
ion
)R
0.9
R 1
mil
20
0 K
25
0 K
42
0 K
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enue h
as
not
gro
wn s
uff
icie
ntl
y
to t
he le
vel o
f co
mp
lem
enti
ng
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ber
of
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plo
yees
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he o
rganis
ati
on.
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ion 3
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evenue is
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lati
vely
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er
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ud
get
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is a
sl
ight
move
ment
in t
he
num
ber
of
em
plo
yees.
FV
1.4
So
lve
ncy r
ati
o
0.8
71.25
2.13
1.25
2.4
5S
olv
en
cy r
ati
o i
s fa
vora
ble
.
FV
1.5
Retu
rn o
n a
ssets
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0.0
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0.1%
1.11%
0.1%
3.9
9%
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rn o
n a
ssets
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favo
rab
le d
ue
to
h
igh
er
tha
n e
xp
ecte
d
pro
fit
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rn f
or
the
q
ua
rter.
FV
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pro
fit
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rgin
% (
All)
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ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
su
rplu
s.
FV
1.7
Gro
ss p
rofi
t m
arg
in %
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ll)22%
25
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34
%
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ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
g
ross
pro
fit.
137W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
1.8
Tota
l exp
en
dit
ure
R
in
00
0R
55
0R
80
R13
8R
159
Exp
end
iture
on d
irect
in
put
cost
s h
as
incr
ease
to
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om
mod
ate
the
d
em
and
for
pota
ble
w
ate
r.
FV
1.9
BBB
EE
sp
en
d-
100
%10
0%
100
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0%
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arg
et h
as
been
ach
ieve
d in
the s
eco
nd
q
uart
er
how
ever
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is n
eed
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r im
pro
vem
ent
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BBEE
spend
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ua
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all
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ses
and
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erg
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ro
Ente
rpri
ses
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he
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min
g q
uart
ers
.
FV
1.10
Ele
ctr
icit
y C
ost
(R
/KL)
0.5
60
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0.7
80
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0.7
3
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ctr
icit
y u
sag
e i
s re
lati
vely
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h d
uri
ng
th
e p
ea
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em
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d
sea
son
(w
inte
r).
Th
ere
's a
dow
nw
ard
tr
en
d f
rom
Octo
ber
to D
ece
mb
er
20
13 a
s w
e m
ove
in
sw
iftl
y
in t
he
low
de
ma
nd
se
aso
n.
FV
1.11
Ch
em
ica
l C
ost
(R
/KL)
0.3
40
.36
0.2
00
.36
0
.26
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al c
he
mic
al
exp
end
itu
re a
nd
u
sag
e h
as
incre
ase
d
in t
he
se
cond
qu
art
er
du
e t
o w
ate
r tu
rbid
ity.
FV
FV
2
Su
rplu
s p
er
fin
an
cia
l ye
ar
co
ntr
ibu
tio
n t
o
bu
ild r
ese
rve
s fo
r in
fra
stru
ctu
re
inve
stm
en
tF
V2.1
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nu
e i
n
Ra
nd
s (i
n m
illio
n
ran
ds)
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23
R3
52
R8
4R
140
R
167
Incre
ase
s in
th
e
volu
me
s so
ld f
or
po
tab
le a
nd
ra
w
wa
ter
ha
s co
ntr
ibu
ted
p
osi
tive
ly t
o t
he
re
ven
ue
ge
nera
ted
in
th
e s
eco
nd
qu
art
er
138W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
2.2
Su
rplu
s in
Ra
nd
s (i
n M
illio
n)
0R
10R
62
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R2
1
Hig
her
tha
n e
xp
ecte
d
surp
lus
du
e t
o h
igh
er
sale
s o
f p
ota
ble
w
ate
r a
nd
mo
nth
ly
reco
gn
itio
n o
f p
roje
ct
reve
nu
es.
FV
2.3
Am
oun
t of
targ
ete
d s
urp
lus
pla
ced
in
re
serv
e f
und
(in
m
illio
n R
and
)0
R6
R3
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R13
Ma
na
ge
me
nt
targ
ets
to
pu
t in
to r
ese
rve
s 6
0%
of
the
su
rplu
s.
FV
2.4
% R
eve
nu
e
Se
co
nd
ary
B
usi
ne
ss /
To
tal
Reve
nu
e5
5%
45
%3
3%
55
%3
4%
Se
cti
on
30
reve
nu
e
ha
s b
ee
n g
en
era
lly
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er
tha
n b
ud
gete
d
du
e t
o lo
ss o
f re
ven
ue
fr
om
th
e t
erm
ina
tio
n
of
Jo
e G
qa
bi
co
ntr
act
an
d o
ther
seco
nd
ary
b
usi
ne
ss a
cti
vit
ies.
FV
2.5
% L
ab
ou
r co
sts
of
tota
l co
sts
41%
38
%4
1%3
8%
40
%
The la
bour
cost
s to
to
tal c
ost
rati
o is
ad
vers
e. T
his
rati
o is
g
oin
g t
o im
pro
ve a
s so
me o
f th
e e
mp
loye
es
will
be tra
nsf
erre
d t
o
AD
M in
thir
d a
nd fourt
h
quart
er.
FV
FV
3
Exp
lore
so
urc
ing
o
f fu
nd
ing
a
ltern
ati
ves
for
infr
ast
ructu
re
deve
lop
me
nt
FV
3.1
Am
oun
t of
Gra
nt
fun
din
g s
ecu
red
R
0R
0N
/AR
00
No
t sc
he
dule
d i
n f
irst
ye
ar
FV
3.2
Am
oun
t of
Len
din
g (
ca
pit
al
ma
rket)
fun
din
g
secu
red
0R
0N
/A0
0N
ot
sch
ed
ule
d i
n f
irst
ye
ar
139W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
FV
3.3
Am
oun
t of
Deve
lop
me
nt
Ag
en
cy f
un
din
g
secu
red
0R
0N
/A0
0N
ot
sch
ed
ule
d i
n f
irst
ye
ar
FV
FV
4S
ust
ain
ab
le &
A
ffo
rda
ble
Ta
riff
FV
4.1
% a
vera
ge
in
cre
ase
of
tari
ff (
wit
hin
g
ove
rnm
en
t ta
rgete
d
infl
ati
on
)10
%8
%9
.3%
8%
9.3
%
Tari
ff n
eg
oti
ati
on
s a
nd
co
nsu
lta
tio
n
is p
rog
ress
. Th
e
fin
al a
vera
ge
ta
riff
in
cre
ase
will
be
ma
de
a
va
ilab
le i
n t
he
th
ird
q
ua
rter.
INTE
RNAL
PRO
CESS
ES Q
UADR
ANT
WA
WA
1
Ad
eq
ua
te w
ate
r se
cu
rity
an
d
ass
ura
nce
in
su
pp
ort
of
wa
ter
sup
ply
WA
1.1
% a
ssu
ran
ce
le
vel (1
in
50
ye
ar
dro
ug
ht
/ re
stri
cti
on
)9
8%
98
%9
8%
98
%9
8%
No
ove
r a
bst
racti
on
fr
om
an
y r
eso
urc
e a
t p
rese
nt
sup
ply
leve
ls
ISIS
1R
elia
ble
in
fra
stru
ctu
reIS
1.1
% I
nfr
ast
ructu
re
CA
PE
X v
s.
Reve
nu
e0
%4
%1%
1%0
%
Th
e t
arg
et
ha
s n
ot
be
en
ach
ieve
d
how
eve
r th
ere
is
gre
at
ne
ed
to
in
cre
ase
reve
nu
e
ge
nera
ted
fro
m
op
era
tio
ns
in o
rder
to
sta
rt w
ith
to
p p
rio
rity
C
APE
X p
roje
cts
.
IS1.2
Ove
rall
ca
pex p
roje
ct
co
mp
leti
on
d
ate
s w
ith
in
targ
ets
as
a
perc
en
tag
e0
%75
%0
%0
%2
1%
Pro
gre
ss i
s b
ein
g
ma
de
wit
h p
lan
nin
g
an
d f
ea
sib
iliti
es
on
ca
pex p
roje
cts
140W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
IS1.3
Incre
ase
d
acce
ss t
o
serv
ice
s m
ea
sure
d b
y
Ra
nd
sp
en
d o
n
Ca
pex P
roje
cts
R0
R26
Mil
R5
6K
R5
Mil
R4
,2 M
il
Perf
orm
an
ce
ag
ain
st
this
me
asu
re i
s im
pro
vin
g
ISIS
1.4
% I
nfr
ast
ructu
re
Ma
inte
na
nce
of
Reve
nu
e8
%6
%9
%2
.5%
9%
Th
e t
arg
et
ha
s b
ee
n
ach
ieve
d h
ow
eve
r th
ere
is
gre
at
ne
ed
to
in
cre
ase
reve
nu
e
ge
nera
ted
fro
m
op
era
tio
ns
in o
rder
to c
arr
y o
ut
pla
nn
ed
a
nd
pre
ven
tati
ve
ma
inte
na
nce
.
ISIS
2
Infl
ue
nce
Pro
vin
cia
l W
ate
r In
fra
stru
ctu
re
Se
cto
r Pla
nn
ing
IS2.1
% a
lign
me
nt
of
wa
ter
sup
ply
sc
he
me
s to
a
de
qu
ate
wa
ter
reso
urc
es
n/a
95
%9
5.9
%9
5%
100
%
Ad
eq
ua
te r
eso
urc
es
at
cu
rre
nt
de
ma
nd
le
vels
ISIS
3
Min
imis
e
pro
du
ce
d a
nd
d
istr
ibu
ted
wa
ter
to e
ffic
ien
tly
red
uce
wa
ter
loss
es
IS3
.1
% t
ota
l w
ate
r lo
ss A
W O
wn
ed
a
nd
RO
U15
%12
%11
.2%
13%
12%
Wa
ter
loss
es
ca
me
d
ow
n a
nd
th
e t
arg
et
wa
s a
ch
ieve
d, b
ut
still
n
ee
d s
om
e a
tte
nti
on
in
th
e D
eb
e, P
ed
die
a
nd
La
ing
are
as
ISIS
4
Up
gra
de
pla
nts
to
pro
vid
e
min
imu
m 5
me
gs
per
da
yIS
4.1
No
. of
pla
nts
co
mm
issi
on
ed
a
t 5
me
gs
per
da
y4
44
44
Na
ho
on
, Sa
nd
ile
, La
ing
& P
ed
die
OR
OR
1
En
sure
un
inte
rru
pte
d
wa
ter
sup
ply
, w
ith
ad
eq
ua
te
pre
ssu
re t
o
cu
sto
mers
OR
1.1
No
. un
pla
nn
ed
in
terr
up
tio
ns
to s
up
ply
>24
h
ou
rs2
00
1.4
7%
99
.53
%
of
Ass
ura
nce
o
f S
up
ply
wa
s a
ch
ieve
d i
n Q
2
141W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
OO
OO
1
Ad
eq
ua
te
syst
em
s,
stru
ctu
res,
p
olic
ies
an
d
pro
ce
sse
s to
e
na
ble
str
ate
gy
imp
lem
en
tati
on
OO
1.1
% c
om
plia
nce
w
ith
p
red
ete
rmin
ed
K
PA t
ime
fra
me
s S
CM
, HR
an
d
SH
EQ
n/a
75
%0
75
%0
Syst
em
s to
me
asu
re
no
t in
pla
ce
yet
OO
OO
2
As
resp
on
sib
le
pu
blic
en
tity
e
nsu
re s
tro
ng
G
ove
rna
nce
, C
om
plia
nce
, R
isk a
nd
Fra
ud
Pre
ven
tio
n
syst
em
sO
O2.1
Un
-qu
alif
ied
A
ud
itY
YY
YY
OO
2.2
Eff
ecti
ve
inte
rna
l co
ntr
ols
a
nd
ris
k m
an
ag
em
en
t In
tern
al a
ud
it
fin
din
gs:
N
um
ber
Re
pe
ats
n/a
270
270
Du
rin
g t
he
fo
llow
-up
a
ud
it
co
nd
ucte
d b
y
the
in
tern
al a
ud
ito
rs ,
a t
ota
l o
f 10
2 f
ind
ing
s w
ere
fo
llow
ed
up
an
d
: 29
were
fo
un
d t
o
ha
ve b
ee
n a
dd
ress
ed
; 2
7 p
art
ially
ad
dre
sse
d a
nd
43
w
ere
no
t a
dd
ress
ed
. T
his
is
cu
rre
ntl
y
be
ing
pri
ori
tise
d.
Info
rma
tio
n
ou
tsta
nd
ing
OO
2.3
Eff
ecti
ve
inte
rna
l co
ntr
ols
a
nd
ris
k m
an
ag
em
en
t In
tern
al a
ud
it
fin
din
gs:
N
um
ber
un
reso
lve
dn
/a2
43
24
3
OO
2.4
% C
om
plia
nce
to
KIN
G I
II
n/a
50
%6
7%
50
%6
7%
OO
2.5
% C
om
plia
nce
to
ap
plic
ab
le
leg
isla
tio
n i
n
Leg
al re
gis
ter
n/a
80
%0
%8
0%
0%
Cu
rre
ntl
y t
here
is
no
co
mp
an
y s
ecre
tary
w
ho
le
ad
s th
is
pro
ce
ss
142W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
OO
2.6
%
imp
lem
en
tati
on
of
Inte
gra
ted
R
isk F
ram
ew
ork
a
nd
Fra
ud
p
reve
nti
on
pla
nn
/a6
0%
20
%2
0%
25
%
Dra
ft S
tra
teg
ic R
isk
reg
iste
r co
mp
lete
. R
isk C
om
mit
tee
e
sta
blis
he
d a
nd
fu
ncti
on
al
OO
2.7
Bo
ard
me
mb
er
att
en
da
nce
n/a
80
%8
3%
80
%6
7 %
OO
2.8
Imp
rove
d
co
ntr
ols
an
d
risk
mit
iga
tio
n,
ind
ica
ted
by
nu
mb
er
of
Bre
ach
es
of
ma
teri
alit
y a
nd
si
gn
ific
an
ce
fr
am
ew
ork
n/a
00
20
LEAR
NING
& G
ROW
TH Q
UADR
ANT
LGLG
1
En
ha
nce
d
Str
ate
gic
E
ffe
cti
ven
ess
LG1.1
% A
ch
ieve
d o
f th
e C
orp
ora
te
Sco
reca
rd
Targ
ets
75
%6
8%
65
%6
3%
Wit
h i
ncre
asi
ng
ta
rgets
an
d
info
rma
tio
n
ou
tsta
nd
ing
th
e
perf
orm
an
ce
ag
ain
st
sco
reca
rd h
as
red
uce
d
LG1.2
No
. of
inte
racti
on
s b
etw
ee
n B
oa
rd
an
d E
xecu
tive
A
uth
ori
ty
21
01
Na
tio
na
l S
tra
teg
y
Se
ssio
n
143W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
LG1.3
Ave
rag
e B
oa
rd
Co
mm
itte
e
Ra
tin
g o
f a
de
qu
acy o
f su
bm
issi
on
s (O
ut
of
5)
n/a
32.4
3n
/a
Ra
tin
g n
ot
perf
orm
ed
fo
r q
ua
rter
2
me
eti
ng
s
LG1.4
% M
AN
CO
re
solu
tio
ns
wh
ich
a
re
imp
lem
en
ted
in
pre
scri
be
d
tim
efr
am
es
n/a
90
%0
90
%0
Sti
ll se
ttin
g u
p
me
asu
rem
en
ts
LG2
Bu
ild C
ross
-Fu
ncti
on
al
Exc
elle
nce
/ E
ffe
cti
ven
ess
LG2.1
Ave
rag
e
Div
isio
na
l Perf
orm
an
ce
R
evie
w S
co
res
n/a
32
2.5
2
Div
isio
na
l p
erf
orm
an
ce
a
nd
evid
en
ce
re
qu
ire
s co
nti
nu
ed
im
pro
vem
en
t
LG2.2
% i
de
nti
fie
d
cri
tica
l p
ost
s fi
lled
by
pre
dete
rmin
ed
re
cru
itm
en
t ti
me
n/a
80
%5
8%
60
%70
.8%
Du
rin
g t
he
se
co
nd
q
ua
rter
3 a
dd
itio
na
l p
osi
tio
ns
were
fi
lled
ad
din
g u
p t
o
70
.8%
of
the
cri
tica
l p
osi
tio
ns
fille
d a
s a
t 3
1 D
ece
mb
er
20
13.
LG3
Deve
lop
O
pera
tio
na
l C
om
pete
nce
(i
nd
ivid
ua
l)LG
3.1
No
. of
org
an
isa
tio
na
l b
en
efi
cia
l sc
he
me
s d
eve
lop
ed
an
d
succe
ssfu
lly
imp
lem
en
ted
n/a
20
13
1. D
eve
lop
ed
dra
ft
PD
P g
uid
elin
es;
2.
Dra
ft p
olic
y g
ap
a
na
lysi
s re
po
rt a
nd
3
. Pro
ce
ss f
low
s fo
r le
arn
ers
hip
s,
recru
itm
en
t, a
nd
jo
b
eva
lua
tio
n.
LG3
.2
%
imp
lem
en
tati
on
of
PD
Ps
70
85
%0
10%
31%
110
em
plo
ye
es
were
tr
ain
ed
du
rin
g t
he
se
co
nd
qu
art
er
in lin
e
wit
h t
he
PD
Ps.
144W
SU
Ob
No.
Obj
ectiv
esM
e No
.M
easu
re /
In
dica
tor
Base
line
Y1Ta
rget
Q1
Actu
alQ
2 Ta
rget
Q2
Actu
alCo
mm
ent
LG3
.3%
Sta
ff T
urn
ove
r9
%6
%3
.3%
4%
5.8
8%
Th
ere
were
9
term
ina
tio
ns
du
rin
g
the
2n
d q
ua
rter.
LG3
.4
DW
A T
ota
l N
um
ber
Of
sta
ff p
rese
ntl
y
on
Tra
inin
g
co
urs
es,
le
arn
er-
ship
s,
bu
rsa
rie
s21
150
29
25
127
110
em
plo
ye
es
an
d 1
7
lea
rners
were
tra
ine
d;
the
full
op
era
tio
n
of
the
Le
arn
ers
hip
A
ca
de
my h
as
be
en
d
ela
ye
d d
ue
to
th
e
pro
ject
ch
art
er
wh
ich
is
yet
to b
e a
pp
rove
d.
145
Annexure E - Major Dam Yields
Dam
Na
mes
Capa
city
in
Mm3 (
Live
st
orag
e)
Tota
l firm
yi
eld
Mm3/
a
Urba
n/Do
mes
tic
Mm3/
aIrr
igat
ion
Mm3/
a En
viro
nmen
tal
Mm3/
a
Raw
wat
er
use
in
2014
/201
5 in
Mm3/
a
Raw
wat
er
use
in
2015
/201
6 in
Mm3/
a
Raw
wat
er
use
in
2016
/201
7 in
Mm3/
a
Raw
wat
er
use
in
2017
/201
8 in
Mm3/
a
Raw
wat
er
use
in
2018
/201
9 in
Mm3/
a
Surp
lus
(+)/
sh
ortf
all
(-) f
or
2014
/201
5 in
Mm3/
a
Surp
lus
(+)
/ sh
ortf
all
(-) f
or
2018
/201
9 in
Mm3/
a
Bin
fie
ld P
ark
D
am
36
.85
016
.50
01.0
00
8.0
00
0.0
00
3.2
20
3.2
53
3.2
53
4.14
64
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15
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04
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9
Ca
ta D
am
12.10
06
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00
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05
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00
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00
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La
ing
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m19
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00
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ya
me
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00
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50
Ple
asa
nt
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w
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m2.0
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00
0.0
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0.0
00
0.0
00
0.0
00
0.0
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0.0
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0.0
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Ro
oik
ran
tz /
Ma
de
n D
am
4.8
00
4.18
03
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1.24
00
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04
.757
4.8
04
4.8
52
4.9
01
4.9
50
-1.8
17-2
.010
Sa
nd
ile
Da
m3
0.9
60
18.0
00
11.6
00
6.8
00
0.0
00
9.9
1510
.014
13.5
90
14.0
28
14.4
66
1.2
85
-3.2
66
Wri
gg
lesw
ad
e
Da
m9
1.2
103
1.8
00
16.9
00
3.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
28
.80
02
8.8
00
Gle
n B
oyd
B
ala
nce
Da
m0
.150
1.0
00
0.0
00
0.0
00
0.0
00
0.2
60
0.2
62
0.2
65
0.2
68
0.2
70
0.7
40
0.7
30
Alb
an
y C
oa
st
0.5
20
0.8
02
0.0
00
0.0
00
0.8
26
0.8
35
0.8
43
0.8
51
0.8
60
-0.3
06
-0.3
40
Tota
l23
5.6
311
3.9
50
57.
06
52
3.17
33
.90
04
5.6
85
46
.376
54
.24
95
6.6
46
58
.158
38
.39
22
5.9
19
% o
f Firm
Yie
ld
for dom
estic
use
50
%2
0%
3%
40
.1%4
0.7
%4
7.6
%4
9.7
%5
1.0
%3
3.7
%2
2.7
%
% o
f F
irm
Yie
ld
for
all
use
s
74
%
6
3.9
%6
4.5
%7
1.4
%73
.5%
74.8
%57.
5%
46
.5%
146
Annexure F - High Level Organogram
Director: Finance
Director: Corporate Services
Director: Operations
Director: Planning & Development
Company Secretary
Chief Executive
Dam
Na
mes
Capa
city
in
Mm3 (
Live
st
orag
e)
Tota
l firm
yi
eld
Mm3/
a
Urba
n/Do
mes
tic
Mm3/
aIrr
igat
ion
Mm3/
a En
viro
nmen
tal
Mm3/
a
Raw
wat
er
use
in
2014
/201
5 in
Mm3/
a
Raw
wat
er
use
in
2015
/201
6 in
Mm3/
a
Raw
wat
er
use
in
2016
/201
7 in
Mm3/
a
Raw
wat
er
use
in
2017
/201
8 in
Mm3/
a
Raw
wat
er
use
in
2018
/201
9 in
Mm3/
a
Surp
lus
(+)/
sh
ortf
all
(-) f
or
2014
/201
5 in
Mm3/
a
Surp
lus
(+)
/ sh
ortf
all
(-) f
or
2018
/201
9 in
Mm3/
a
Bin
fie
ld P
ark
D
am
36
.85
016
.50
01.0
00
8.0
00
0.0
00
3.2
20
3.2
53
3.2
53
4.14
64
.26
15
.28
04
.23
9
Ca
ta D
am
12.10
06
.20
00
.00
05
.30
00
.00
00
.00
00
.00
00
.00
00
.00
00
.00
00
.90
00
.90
0
Da
bi
Da
m1.0
00
0.0
50
0.0
33
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
50
0.0
50
De
be
Da
m6
.00
02
.150
0.3
50
0.0
00
0.0
00
0.8
180
.82
61.3
37
1.4
01
1.4
65
1.3
32
0.6
85
Gu
bu
Da
m8
.80
02
.870
2.3
00
0.7
83
0.0
00
1.75
31.770
1.78
81.8
06
1.8
24
0.3
34
0.2
63
La
ing
Da
m19
.80
018
.270
14.9
00
1.9
00
0.0
00
10.11
110
.212
10.7
08
10.8
65
10.9
146
.25
95
.45
6
Mn
ya
me
ni
Da
m2.0
60
4.0
00
0.4
50
0.7
00
0.0
00
0.9
61
0.9
70
1.2
63
1.3
01
1.3
38
2.3
39
1.9
62
Na
ho
on
Da
m19
.90
08
.410
5.6
00
1.2
50
0.9
00
13.0
65
13.4
30
16.3
50
17.0
80
17.8
10-6
.80
5-1
1.5
50
Ple
asa
nt
Vie
w
Da
m2.0
00
0.0
00
0.0
30
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
Ro
oik
ran
tz /
Ma
de
n D
am
4.8
00
4.18
03
.100
1.24
00
.00
04
.757
4.8
04
4.8
52
4.9
01
4.9
50
-1.8
17-2
.010
Sa
nd
ile
Da
m3
0.9
60
18.0
00
11.6
00
6.8
00
0.0
00
9.9
1510
.014
13.5
90
14.0
28
14.4
66
1.2
85
-3.2
66
Wri
gg
lesw
ad
e
Da
m9
1.2
103
1.8
00
16.9
00
3.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
0.0
00
28
.80
02
8.8
00
Gle
n B
oyd
B
ala
nce
Da
m0
.150
1.0
00
0.0
00
0.0
00
0.0
00
0.2
60
0.2
62
0.2
65
0.2
68
0.2
70
0.7
40
0.7
30
Alb
an
y C
oa
st
0.5
20
0.8
02
0.0
00
0.0
00
0.8
26
0.8
35
0.8
43
0.8
51
0.8
60
-0.3
06
-0.3
40
Tota
l23
5.6
311
3.9
50
57.
06
52
3.17
33
.90
04
5.6
85
46
.376
54
.24
95
6.6
46
58
.158
38
.39
22
5.9
19
% o
f Firm
Yie
ld
for dom
estic
use
50
%2
0%
3%
40
.1%4
0.7
%4
7.6
%4
9.7
%5
1.0
%3
3.7
%2
2.7
%
% o
f F
irm
Yie
ld
for
all
use
s
74
%
6
3.9
%6
4.5
%7
1.4
%73
.5%
74.8
%57.
5%
46
.5%
147
Annexure G - Financial Model
Actu
al20
12/2
013
Acco
unt
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
39
56
5 0
00
Wa
ter
sold
(kilo
litre
s)4
2 1
28
03
54
2 5
49
315
43
174
80
35
1 79
9 0
41
53
46
1 8
105
5 1
27 5
73
6.4
8
5.6
8
7 8
42 0
00
- R
aw
wa
ter
sale
s (k
l)8
411
08
18
49
5 1
91
8 5
34
42
08
618
89
28
70
4 2
09
8 7
90
379
7.2
6
1.9
2
31
723
00
0-
Po
tab
le w
ate
r sa
les
(kl)
33
716
95
43
4 0
54
124
34
64
0 3
83
43
18
0 1
49
44
757 6
01
46
337 1
94
6.2
9
6.5
2
- W
ast
e w
ate
r sa
les
(kl)
35
2 5
21
00
0T
OTA
L R
EV
EN
UE
(Pri
ma
ry
an
d s
eco
nd
ary
acti
vit
ies)
39
0 6
09
32
93
61
146
016
39
3 9
69
657
49
5 1
20
33
25
22
84
7 0
71
55
2 1
26
50
710
.80
7.
76
195
05
6 0
00
Reve
nu
e (
Pri
ma
ry
acti
vit
y)
25
8 9
17 8
77
28
0 7
79
90
53
09
86
2 9
47
40
7 3
98
10
74
21
182
02
64
35
08
4 4
94
11 1
92 0
00
- R
aw
wa
ter
sale
s14
024
72
914
60
9 6
65
16 2
00
33
42
1 75
2 4
79
22
42
6 8
06
23
12
2 0
37
25
.31
12.8
5
183
86
4 0
00
- Po
tab
le w
ate
r sa
les
24
4 8
93
14
82
37 4
93
69
92
63
35
1 5
09
35
3 6
06
79
13
64
92
2 2
09
376
23
4 7
97
33
.19
12.6
7
- W
ast
e w
ate
r sa
les
- In
du
stri
al w
ate
r sa
les
- W
ast
ew
ate
r m
an
ag
em
en
t fe
e
- R
igh
t of
use
(R
OU
)2
8 6
76
54
13
0 3
11 1
04
32
03
8 8
37
33
83
3 0
123
5 7
27 6
61
157 4
65
00
0R
eve
nu
e (
Se
co
nd
ary
a
cti
vit
y)
131
69
1 4
52
80
36
6 1
118
4 1
06
710
87 7
22
22
510
1 6
65
04
411
7 0
42
012
(16
.37)
(4.8
2)
- R
eta
il w
ate
r o
pera
tio
n
Wa
ste
wa
ter
ma
na
ge
me
nt
fee
- M
an
ag
em
en
t fe
e -
co
nsu
ltin
g
- M
an
ag
em
en
t fe
e -
oth
er
157 4
65
00
0-
Se
cti
on
30
acti
vit
ies
131
69
1 4
52
80
36
6 1
118
4 1
06
710
87 7
22
22
510
1 6
65
04
411
7 0
42
012
(16
.37)
(4.8
2)
147 2
81
00
0T
OTA
L C
OS
T O
F S
ALE
S14
4 0
00
18
614
3 9
81
77
114
8 1
97 7
1417
2 3
22
82
917
6 7
98
618
176
410
48
3(2
.23
)3
.05
56
66
5 0
00
Co
st o
f sa
les
(ra
w w
ate
r p
urc
ha
sed
)6
3 0
06
95
972
33
8 6
45
80
29
5 8
96
107 5
96
50
011
4 7
27 8
06
114
727 8
06
11.19
12
.48
56
66
5 0
00
- R
aw
wa
ter
63
00
6 9
59
72
33
8 6
45
80
29
5 8
96
107 5
96
50
011
4 7
27 8
06
114
727 8
06
11.19
12
.48
90
616
00
0C
ost
of
sale
s (s
eco
nd
ary
a
cti
vit
ies)
80
99
3 2
27
71
64
3 1
26
67 9
01
818
64
72
6 3
29
62
070
811
61
68
2 6
76
(10
.62
)(6
.21)
Statement of Comprehensive Income
148Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
41
94
8 0
00
- E
mp
loye
e c
ost
s37 7
53
20
03
3 9
77 8
80
30
58
0 0
92
27 5
22
08
324
76
9 8
75
22
29
2 8
87
(10
.00
)(1
0.0
0)
6 7
97 0
00
- C
he
mic
als
an
d
pu
rifi
ca
tio
n5
44
6 7
40
5 7
51
75
86
073
85
66
413
99
26
773
176
7 1
52
474
(19
.87)
0.8
5
1 3
07 0
00
- E
nerg
y1
176
30
01
24
2 1
73
1 3
11 7
34
1 3
85
19
21
46
2 7
62
1 5
44
677
(10
.00
)2
.82
24
957 0
00
- R
ep
air
s a
nd
m
ain
ten
an
ce
22
46
1 3
00
15 7
22
910
14 1
50
619
12 7
35
557
11 4
62
00
112
10
3 8
73
(10
.00
)(1
1.3
6)
15 6
07 0
00
- G
en
era
l a
nd
a
dm
inis
tra
tio
n e
xp
en
ses
14 0
46
30
014
83
2 8
93
15 6
63
53
516
54
0 6
93
17 4
66
972
18 4
45
12
2(1
0.0
0)
2.8
2
-Pro
ject
/ W
IP c
ost
s
- O
ther
dir
ect
op
era
tin
g
acti
vit
ies
109
38
711
5 5
1312
1 9
81
128
812
136
02
614
3 6
43
20
5 2
40
00
0G
RO
SS
IN
CO
ME
24
6 6
09
14
32
17 1
64
24
524
5 7
71
94
33
22
79
7 5
03
34
6 0
48
45
3375
716
024
20
.16
10.6
0
58
.2
Gro
ss p
rofi
t %
63
.1 6
0.1
62
.4
65
.2
66
.2
68
.0
8.4
4
2.6
3
70
.9
- G
ross
pro
fit
% -
pri
ma
ry
acti
vit
y75
.7
74.2
74
.1 73
.6
72
.8
73
.6
6.6
5
0.6
2
42.5
-
Gro
ss p
rofi
t %
-
seco
nd
ary
acti
vit
y3
8.5
10
.9
19.3
2
6.2
3
8.9
4
7.3
(9
.32
)1.8
2
Go
vern
me
nt
gra
nts
an
d
oth
er
fun
din
g
Oth
er
op
era
tin
g i
nco
me
5 3
53
10
72
73
6 0
00
2 8
91
95
23
05
6 7
93
3 1
96
18
33
34
1 9
29
- C
om
mis
sio
n i
nco
me
an
d
insu
ran
ce
- G
am
e a
nd
gra
zin
g s
ale
s (n
et
of
exp
en
ses)
- H
ou
se a
nd
oth
er
ren
tals
-
all
rela
ted
in
co
me
- O
ther
inco
me
(sc
rap
, te
lep
ho
ne
, re
furb
ish
me
nt,
la
b)
5 3
53
10
72
73
6 0
00
2 8
91
95
23
05
6 7
93
3 1
96
18
33
34
1 9
29
- Pro
ject
inco
me
- B
ad
de
bts
re
co
vere
d
- Pro
fit
Lo
ss)
on
sa
le o
f fi
xed
ass
ets
- Pro
fit
(lo
ss)
on
dis
po
sal
of
inve
stm
en
ts
149Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
- Pro
fit
(lo
ss)
on
sa
le o
f b
iolo
gic
al a
ssets
- Pro
fit
Lo
ss)
on
sa
le o
f in
tan
gib
le a
ssets
- W
ast
ew
ate
r -
Da
rvill
e
reve
nu
e a
mo
rt
20
5 2
40
00
0T
OTA
L O
PE
RAT
ING
IN
CO
ME
25
1 9
62
25
02
19 9
00
24
524
8 6
63
89
53
25
85
4 2
96
34
9 2
44
63
6379
057 9
53
22
.76
10
.77
191
30
3 7
62
TO
TAL E
XPE
NS
ES
20
6 9
39
82
62
21
72
9 3
22
24
8 4
17 2
08
29
1 772
16
53
08
43
1 16
23
28
111
94
18
.17
9.4
1
139
55
6 0
00
- V
ari
ab
le c
ost
s (r
ela
ted
to
co
st o
f sa
les)
159
52
1 8
36
172
08
0 3
29
186
30
0 0
33
216
34
1 8
53
23
2 3
96
12
624
9 6
64
46
514
.31
10.18
80
65
3 0
00
- E
mp
loye
e c
ost
s8
4 6
42
55
69
1 4
13 9
60
98
727 0
77
106
62
5 2
43
115
15
5 2
63
124
36
7 6
84
4.9
5
7.4
8
- D
ire
cto
rs e
mo
lum
en
ts (
in
clu
de
in
ge
nera
l)
80
65
3 0
00
- E
mp
loye
e s
ala
rie
s -
(in
clu
din
g l
ea
ve, a
nn
ua
l b
on
us,
13
th c
he
qu
e)
68
46
8 5
21.7
173
94
6 0
03
79
86
1 6
84
86
25
0 6
189
3 1
50
66
810
0 6
02
72
1(1
5.11
)3
.75
- Perf
orm
an
ce
bo
nu
ses
4 1
08
111
4 4
36
76
04
79
1 70
15
175
037
5 5
89
04
06
03
6 1
63
- C
om
pa
ny c
on
trib
uti
on
s -
Me
dic
al co
ntr
ibu
tio
ns
an
d e
xp
en
ses
6 2
77 5
98
6 7
79
80
67 3
22
19
07 9
07 9
65
8 5
40
60
29
22
3 8
51
- C
om
pa
ny c
on
trib
uti
on
-
UIF
an
d S
DL
46
3 9
27
50
1 0
41
54
1 12
45
84
414
63
1 16
76
81
66
1
- C
on
trib
uti
on
s to
pe
nsi
on
a
nd
pro
vid
en
t fu
nd
s5
324
39
85
75
0 3
50
6 2
10 3
78
6 7
07 2
08
7 2
43
78
57 8
23
28
8
- O
ID c
on
trib
uti
on
s
- C
ha
ng
es
in p
ost
e
mp
loym
en
t lia
bili
tie
s
10 4
18 0
00
- C
he
mic
als
15 0
79
20
815
973
737
16 8
84
24
017
84
6 6
42
18 8
46
05
419
90
1 4
33
44
.74
11
.39
26
13
3 0
00
- E
nerg
y3
0 6
04
98
63
3 7
66
28
937 9
99
779
57 3
17 9
83
61
90
3 4
21
66
85
5 6
95
17.11
16
.95
9 8
78
00
0
- R
ep
air
s a
nd
m
ain
ten
an
ce
- (
co
st o
f sa
les
rela
ted
)14
22
6 3
1915
03
5 6
00
15 8
81
614
16 7
75
23
417
719
13
918
716
15
84
4.0
2
11.2
4
- Pro
pert
y a
nd
bu
ildin
gs
3 7
95
15
14
02
0 2
87
4 2
49
44
34
49
1 6
62
4 7
47 6
86
5 0
18 3
04
9 8
78
00
0-
Pla
nt,
ma
ch
inery
an
d
eq
uip
me
nt
10 4
31
168
11 0
15 3
1311
63
2 1
71
12 2
83
573
12 9
71
45
313
69
7 8
54
5.6
0
5.6
0
150Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
- O
ther
- to
be
in
clu
de
d i
n
ge
nera
l exp
en
ses
12 4
74 0
00
- D
ep
recia
tio
n14
77
1 578
15 6
82
510
16 5
87 4
29
17 5
44
54
418
527 0
39
19 5
64
55
318
.42
7.79
12 4
74 0
00
- D
ep
recia
tio
n p
rop
ert
y,
pla
nt
an
d e
qu
ipm
en
t14
77
1 578
15 6
82
510
16 5
87 4
29
17 5
44
54
418
527 0
39
19 5
64
55
318
.42
7.79
- A
mo
rtis
ati
on
of
inta
ng
ible
ass
ets
- Im
pa
irm
en
ts o
f p
rop
ert
y, p
lan
t a
nd
e
qu
ipm
en
t
- im
pa
irm
en
ts o
f in
tan
gib
le a
ssets
- Im
pa
irm
en
t of
tra
de
re
ce
iva
ble
s
- O
ther
dir
ect
co
sts
197 1
89
20
8 2
32
219
89
32
32
20
724
5 2
102
58
94
2
- M
oto
r ve
hic
le r
ep
air
s a
nd
run
nin
g e
xp
en
ses
197 1
89
20
8 2
32
219
89
32
32
20
724
5 2
102
58
94
2
- O
ther
dir
ect
51
747 7
62
- G
en
era
l exp
en
ses
47 4
17 9
90
49
64
8 9
93
62
117
175
75
43
0 3
1276
03
5 0
36
78
44
7 4
76
(8.3
7)
7.18
- A
dve
rtis
ing
an
d
pro
mo
tio
ns
- A
mo
rtis
ati
on
- o
ffic
e
inta
ng
ible
s
- A
mo
rtis
ati
on
of
bio
log
ica
l a
ssets
1 0
65
00
0-
Au
dit
fe
es
70
5 0
00
744
48
078
6 1
71
83
0 1
96
876
68
79
25
78
2(3
3.8
0)
(2.3
1)
5 4
11 0
00
- B
ad
de
bts
2 5
26
76
72
66
8 2
66
2 8
17 6
89
2 9
75
479
3 1
42
10
63
318
06
4(5
3.3
0)
(7.8
3)
- B
urs
ari
es,
do
na
tio
ns
an
d
gif
ts
- C
lea
nin
g -
all
ad
min
istr
ati
on
are
as
33
775
- C
om
pu
ter
an
d I
T
co
nsu
ma
ble
s5
9 5
68
62
90
46
6 4
26
70
14
674
074
78
22
376
.37
15.0
2
- C
on
fere
nce
s, s
em
ina
rs
an
d w
ork
sho
ps
22
5 4
29
23
8 0
53
25
1 3
84
26
5 4
61
28
0 3
27
29
6 0
25
5 9
98
00
0-
Co
nsu
lta
nts
an
d
pro
fess
ion
al fe
es
5 6
85
578
6 0
03
970
10 3
40
19
213
69
5 2
43
11 0
70
177
8 7
32
618
(5.2
1)6
.46
151Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
- C
on
tra
cto
rs
- C
ou
rier
an
d p
ost
ag
e4
3 7
134
6 1
60
48
74
55
1 4
75
54
35
857 4
02
20
7 0
00
- D
ep
recia
tio
n o
f off
ice
a
ssets
29
9 7
33
316
518
33
4 2
43
35
2 9
60
372
72
63
93
59
94
4.8
0
11.3
0
54
2 0
00
- D
ire
cto
rs -
perf
orm
an
ce
b
on
use
s5
61
60
55
93
05
56
26
26
66
61
337
69
8 3
72
737 4
81
3.6
2
5.2
7
- D
ire
cto
rs e
mo
lum
en
ts
- E
mp
loye
e c
ost
s -
(re
late
d t
o
ad
min
istr
ati
on
)
- E
nerg
y -
re
late
d t
o
ad
min
istr
ati
on
are
as
- Im
pa
irm
en
ts o
f b
iolo
gic
al a
ssets
- In
sura
nce
9 3
11 0
00
- Le
ase
co
sts
8 4
85
270
8 9
60
44
59
46
2 2
30
9 9
92
115
10 5
51
674
11 1
42
56
7(8
.87)
3.0
4
- Le
ga
l a
nd
co
ntr
act
fee
s3
93
89
14
15 9
49
43
9 2
43
46
3 8
40
48
9 8
155
17 2
45
- M
ark
eti
ng
- n
ot
ad
vert
isin
g a
nd
p
rom
oti
on
s8
7 0
109
1 8
83
97 0
28
102
46
210
8 2
00
114
25
9
12 1
00
00
0-
Mo
tor
veh
icle
exp
en
ses
(no
t in
dir
ect
co
sts)
8 6
46
46
910
46
6 5
83
13 4
42
573
17 9
71
357
17 5
29
75
318
119
419
(28
.54
)6
.96
- O
pera
tin
g l
ea
ses
- p
ho
toco
pie
rs e
tc2
14 8
172
26
84
72
39
55
02
52
96
52
67 1
31
28
2 0
91
- O
ther
op
era
tin
g
exp
en
ses
34
0 2
91
- Pri
nti
ng
an
d s
tati
on
ery
33
5 6
73
35
4 4
70
374
32
13
95
28
34
17 4
184
40
79
4(1
.36
)4
.41
59
3 8
07
- Pro
tecti
ve c
loth
ing
an
d
un
ifo
rms
58
5 7
47
618
54
96
53
18
86
89
76
772
8 3
94
76
9 1
84
(1.3
6)
4.4
1
78
9 1
15-
Ra
tes
an
d t
axe
s778
40
48
21
99
58
68
02
69
16 6
36
96
7 9
67
1 0
22
174
(1.3
6)
4.4
1
- R
elo
ca
tio
n c
ost
s -
all
ite
ms
68
1 4
45
- R
en
t p
aid
- e
qu
ipm
en
t h
ire
and
oth
er
hir
ing
co
sts
672
19
570
9 8
38
749
58
979
1 5
66
83
5 8
94
88
2 7
04
(1.3
6)
4.4
1
9 8
78
00
0-
Re
pa
irs
an
d
ma
inte
na
nce
11
28
4 0
80
10 1
55
672
14 0
22
36
717
09
0 1
95
20
32
3 8
73
22
96
5 9
76
14.2
3
15.10
152Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
30
5 0
00
- S
afe
ty a
nd
se
cu
rity
1 0
87 2
58
1 14
8 1
45
1 2
12 4
41
2 2
80
33
81
35
2 0
36
1 4
27 7
50
#R
EF
!2
9.3
4
- S
erv
ice
co
ntr
acts
55
99
4-
Soft
wa
re a
nd
oth
er
sma
ll a
ssets
exp
en
sed
59
56
86
2 9
04
66
42
670
14
674
074
78
22
36
.38
5
.73
140
24
9-
Sta
ff w
elf
are
146
09
315
4 2
7416
2 9
1417
2 0
37
181
67
119
1 8
45
4.17
5
.36
370
25
8-
Su
bsc
rip
tio
ns,
lic
en
ce
s a
nd
me
mb
ers
hip
fe
es
39
3 8
91
415
94
94
39
24
34
63
84
04
89
815
517
24
56
.38
5
.73
68
0 6
31
- Tr
ain
ing
an
d
deve
lop
me
nt
70
8 9
91
748
69
479
0 6
21
83
4 8
96
88
1 6
50
93
1 0
23
4.17
5
.36
64
1 224
- Te
lep
ho
ne
an
d f
ax
66
1 0
56
69
8 0
75
737 1
67
778
44
98
22
04
28
68
076
3.0
9
5.18
2 6
03
972
- Tr
ave
l a
nd
e
nte
rta
inm
en
t2
770
18
32
92
5 3
133
08
9 1
31
3 2
62
12
23
44
4 8
01
3 6
37 7
106
.38
5
.73
- V
ete
rin
ary
serv
ice
s,
sup
plie
s a
nd
bio
log
ica
l co
sts
13 9
36
23
8O
PE
RAT
ING
PR
OF
IT
(LO
SS
) FO
R Y
EA
R4
5 0
22
424
-1 8
29
077
24
6 6
88
34
08
2 1
31
40
813
474
50
94
6 0
122
23
.06
24
.12
7 1
95
00
0F
ina
nce
in
co
me
- (
en
ter
as
po
siti
ve)
3 7
93
214
4 5
12 0
00
4 7
69
18
45
04
1 0
27
5 3
23
474
5 6
21
749
(47.
28
)(4
.03
)
- Tr
ad
e r
ece
iva
ble
s13
82
114
719
15 6
76
16 6
95
17 7
80
18 9
35
- E
xte
nd
ed
pa
ym
en
t tr
ad
e
rece
iva
ble
s -
de
em
ed
in
tere
st
7 1
95
00
0-
Sh
ort
term
de
po
sits
-
ca
ll a
cco
un
ts3
779
39
34
49
7 2
81
4 7
53
50
85
024
33
25
30
5 6
95
5 6
02
813
(47.
47)
(4.0
8)
- H
eld
to
ma
turi
ty
fin
an
cia
l a
ssets
- Ava
ilab
le f
or
sale
in
vest
me
nts
- E
mp
loye
e a
dva
nce
s
- S
AR
S
- O
ther
3 9
52 0
00
Fin
an
ce
co
sts
- (e
nte
r a
s n
eg
ati
ve)
-38
73
6-3
6 2
40
-38
30
6-4
0 4
89
-44
12
6-4
8 0
90
(10
0.9
8)
#N
UM
!
3 9
52 0
00
- Lo
ng
term
bo
rrow
ing
s-3
8 5
59
-36
05
4-3
8 1
09
-40
28
1-4
3 9
06
-47 8
58
(10
0.9
8)
#N
UM
!
153Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
- B
an
k o
verd
raft
-177
-18
6-1
97
-20
8-2
20
-23
2
- S
AR
S
- F
ina
nce
le
ase
s
- B
orr
ow
ing
co
sts
ca
pit
alis
ed
(p
osi
tive
)
- O
ther
25
08
3 2
38
PR
OF
IT (
LOS
S)
FO
R Y
EA
R4
8 7
76
90
22
64
6 6
82
4 9
77 5
65
39
08
2 6
69
46
09
2 8
22
56
519
67
19
4.4
6
14.5
0
Oth
er
com
pre
he
nsi
ve
inco
me
- G
ain
on
reva
lua
tio
n
of
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pert
y, p
lan
t a
nd
e
qu
ipm
en
t
- G
ain
on
reva
lua
tio
n o
f in
tan
gib
le a
ssets
- Tr
an
sfers
(to
) fr
om
g
en
era
l re
serv
es
- G
ain
s /
(lo
sse
s) o
n
reti
rem
en
t b
en
efi
t p
lan
s
25
08
3 2
38
TO
TAL C
OM
PR
EH
EN
SIV
E
INC
OM
E (
LOS
S)
FO
R T
HE
YE
AR
48
776
90
22
64
6 6
82
4 9
77 5
65
39
08
2 6
69
46
09
2 8
22
56
519
67
19
4.4
6
14.5
0
154
Statement of Financial Position
Actu
al20
12/2
013
Acco
unt
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
AS
SE
TS
No
n-c
urr
en
t a
ssets
29
2 5
25
00
0Pro
pert
y, p
lan
t a
nd
e
qu
ipm
en
t3
23
23
8 2
64
374
84
8 6
28
43
3 1
21
49
14
66
88
7 6
56
50
0 6
33
878
53
3 1
43
79
010
.50
10
.52
45
8 7
11 0
00
Ca
rryin
g v
alu
e -
op
en
ing
b
ala
nce
29
2 5
25
00
03
23
23
8 2
64
374
84
8 6
28
43
3 1
21
49
14
66
88
7 6
56
50
0 6
33
878
(36
.23
)1.4
7
13 7
40
00
0A
dd
itio
ns
- (w
ill b
e
ca
rrie
d t
o c
ash
flow
)4
9 5
87 3
99
71
44
0 1
41
81
69
6 1
65
62
75
2 2
43
65
00
0 0
00
65
00
0 0
00
26
0.9
0
29
.57
-173
34
4 0
00
De
pre
cia
tio
n -
( e
x
inco
me
sta
tem
en
t)-1
5 0
71
310
-15
99
9 0
28
-16
92
1 6
71
-17 8
97 5
05
-18
89
9 7
65
-19
95
8 1
52
(91.3
1)(3
0.2
5)
-6 5
82 0
00
Dis
po
sals
- c
arr
yin
g v
alu
e-3
80
2 8
25
-3 8
30
75
0-6
50
1 6
31
-11
08
8 5
72
-12
35
4 0
13-1
2 5
31
937
(42
.22
)11
.33
Imp
air
me
nts
- (
ex i
nco
me
st
ate
me
nt)
Reva
lua
tio
ns
- (e
x i
nco
me
st
ate
me
nt)
Inte
rest
ca
pit
alis
ed
Inta
ng
ible
ass
ets
Ca
rryin
g v
alu
e -
op
en
ing
b
ala
nce
Ad
dit
ion
s -
(will
be
ca
rrie
d t
o c
ash
flow
)
Am
ort
isa
tio
n -
(ex i
nco
me
st
ate
me
nt)
Dis
po
sals
- c
arr
yin
g v
alu
e
Imp
air
me
nts
- (
ex i
nco
me
st
ate
me
nt)
Reva
lua
tio
ns
- (e
x i
nco
me
st
ate
me
nt)
Bio
log
ica
l a
ssets
Ca
rryin
g v
alu
e
- o
pe
nin
g
ba
lan
ce
Ad
dit
ion
s -
(will
be
ca
rrie
d t
o c
ash
flow
)
Am
ort
isa
tio
n -
(ex i
nco
me
st
ate
me
nt)
Dis
po
sals
- c
arr
yin
g v
alu
e
155Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
Imp
air
me
nts
- (
ex i
nco
me
st
ate
me
nt)
Inve
stm
en
ts i
n
sub
sid
iari
es
an
d
ass
ocia
tes
Op
en
ing
ba
lan
ce
Ch
an
ge
s in
ye
ar
Inve
stm
en
ts -
fin
an
cia
l in
stru
me
nts
He
ld t
o m
atu
rity
Loa
ns
rece
iva
ble
Em
plo
ye
e lo
an
s
Oth
er
fin
an
cia
l a
ssets
Ge
nera
l
29
2 5
25
00
03
23
23
8 2
64
374
84
8 6
28
43
3 1
21
49
14
66
88
7 6
56
50
0 6
33
878
53
3 1
43
79
010
.50
10
.52
Ass
ets
he
ld f
or
sale
- n
et
Da
ms
Fa
rms
Re
serv
oir
s
Oth
er
Cu
rre
nt
ass
ets
Inve
stm
en
ts
Sh
ort
term
Ava
ilab
le f
or
sale
1 5
85
00
0In
ven
tori
es
1 6
75
34
51
76
9 1
64
1 770
84
01
870
00
71
87
1 778
1 9
76
59
75
.70
3
.75
156Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
1 3
86
00
0Pip
ing
1
46
5 0
02
1 5
47 0
42
1 5
48
50
71
63
5 2
24
1 6
36
772
1 72
8 4
31
5.7
0
3.7
5
Ele
ctr
ica
l
Ma
inte
na
nce
sp
are
s
Wa
ter
167 0
00
Ch
em
ica
l st
ore
s17
6 5
1918
6 4
04
186
58
119
7 0
29
197 2
162
08
26
05
.70
3
.75
32 0
00
Co
nsu
ma
ble
s3
3 8
24
35
718
35
75
237 7
54
37 7
90
39
90
65
.70
3
.75
Mis
ce
llan
eo
us
28
4 9
29
00
0Tr
ad
e r
ece
iva
ble
s279
13
4 9
31
29
7 6
27 2
29
317
36
9 9
193
51
93
5 5
58
38
7 2
43
96
04
15 2
76
02
8(2
.03
)6
.48
47 5
52 0
00
Tra
de
re
ce
iva
ble
s -
bulk
a
nd
wa
ste
wa
ter
46
60
3 3
52
51
72
8 9
77
57 3
56
46
277 0
16 4
43
86
94
4 4
54
97 8
14 8
46
(1.9
9)
12.7
7
24
3 5
36
00
0Tr
ad
e r
ece
iva
ble
s -
oth
er
acti
vit
ies
23
8 6
90
579
25
2 0
57 2
51
26
6 1
72
45
82
81
078
115
30
6 4
58
50
63
23
62
0 1
82
(1.9
9)
4.8
5
-6 1
59
00
0
less
: pro
vis
ion
fo
r d
ou
btf
ul d
eb
ts /
im
pa
irm
en
ts -
ba
lan
ce
b/f
-6 1
59
00
0-6
15
9 0
00
-6 1
59
00
0-6
15
9 0
00
-6 1
59
00
0-6
15
9 0
00
Ch
an
ge
in
pro
v -
d
ou
btf
ul/
imp
air
me
nts
- e
x
inco
me
sta
tem
en
t
Sun
dry
de
bto
rs
Inte
rest
re
ce
iva
ble
Loa
ns
an
d f
ina
ncia
l re
ce
iva
ble
s
Em
plo
ye
e lo
an
s
Oth
er
loa
ns
106
40
2 0
00
Ca
sh a
nd
ca
sh
eq
uiv
ale
nts
112
36
0 5
1211
8 6
52
70
111
8 6
52
70
112
5 2
97 2
52
125
29
7 2
52
132
313
89
85
.60
3
.70
34
276
00
0C
ash
on
ha
nd
36
19
5 4
56
38
22
2 4
02
38
22
2 4
02
40
36
2 8
56
40
36
2 8
56
42
62
3 1
76
5.6
0
3.7
0
Ba
nk c
urr
en
t a
cco
un
t
72 1
26
00
0S
ho
rt t
erm
de
po
sits
76
16
5 0
56
80
43
0 2
99
80
43
0 2
99
84
93
4 3
96
84
93
4 3
96
89
69
0 7
22
5.6
0
3.7
0
157Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
39
2 9
16 0
00
39
3 1
70
78
84
18 0
49
09
44
37 7
93
45
94
79
10
2 8
165
14 4
12 9
89
54
9 5
66
52
30
.06
5
.75
68
5 4
41
00
0T
OTA
L A
SS
ET
S7
16 4
09
05
179
2 8
97 7
21
870
914
95
09
45
99
0 4
73
1 0
15 0
46
86
71
08
2 7
10 3
134
.52
7.9
2
EQ
UIT
Y A
ND
LIA
BIL
ITIE
S
Ca
pit
al a
nd
re
serv
es
274
557 0
00
Ca
pit
al
274
557 0
00
274
557 0
00
274
557 0
00
274
557 0
00
274
557 0
00
274
557 0
00
Re
serv
es
Op
en
ing
ba
lan
ce
Tra
nsf
ers
in
(o
ut)
20
04
5 0
00
Accu
mula
ted
pro
fit
(lo
ss)
68
82
1 9
02
71
46
8 5
84
76
44
6 1
49
115
52
8 8
1816
1 6
21
64
02
18 1
41
311
24
3.3
4
48
.86
-5 0
38
00
0O
pe
nin
g b
ala
nce
20
04
5 0
00
68
82
1 9
02
71
46
8 5
84
76
44
6 1
49
115
52
8 8
1816
1 6
21
64
0(4
97.
88
)#
NU
M!
25
08
3 0
00
Co
mp
reh
en
sive
in
co
me
(l
oss
) fo
r ye
ar
- (e
x
inco
me
sta
tem
en
t)4
8 7
76
90
22
64
6 6
82
4 9
77 5
65
39
08
2 6
69
46
09
2 8
22
56
519
67
19
4.4
6
14.5
0
Oth
er
29
4 6
02 0
00
34
3 3
78
90
23
46
02
5 5
84
35
1 0
03
14
93
90
08
5 8
184
36
178
64
04
92
69
8 3
1116
.56
8
.95
No
n-c
urr
en
t lia
bili
tie
s
10 4
48
00
0Lo
ng
term
de
bt
88
3 8
00
79
5 4
20
79
5 4
20
715
878
5 7
15 8
78
5 6
44
29
0(9
1.5
4)
(9.7
5)
Ba
nk lo
an
- f
ixe
d r
ate
Ba
nk lo
an
- v
ari
ab
le r
ate
5 0
00
00
05
00
0 0
00
Bo
nd
s -
fixe
d r
ate
98
2 0
00
Bo
nd
s -
va
ria
ble
ra
te8
83
80
079
5 4
20
79
5 4
20
715
878
715
878
64
4 2
90
(10
.00
)(6
.78
)
Loa
ns
- in
tere
st f
ree
7 8
58
00
0S
ett
lem
en
t a
gre
em
en
ts
(10
0.0
0)
(10
0.0
0)
Inco
me
re
ce
ive
d i
n
ad
va
nce
158Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
1 6
08
00
0F
ina
nce
le
ase
ob
liga
tio
n(1
00
.00
)(1
00
.00
)
Oth
er
no
n-c
urr
en
t lia
bili
tie
s
Po
st r
eti
rem
en
t b
en
efi
t o
blig
ati
on
s
De
fin
ed
be
ne
fit
an
d
co
ntr
ibu
tio
n p
lan
s -
op
en
ing
Actu
ari
al m
ove
me
nt
on
de
fin
ed
be
ne
fit
co
ntr
ibu
tio
n
- H
ea
lth
ca
re b
en
efi
ts
10 4
48
00
08
83
80
079
5 4
20
79
5 4
20
715
878
5 7
15 8
78
5 6
44
29
0(9
1.5
4)
(9.7
5)
Cu
rre
nt
liab
iliti
es
26
44
1 0
00
Cu
rre
nt
po
rtio
n o
f lo
ng
te
rm lo
an
s7 8
58
00
05
0 0
00
100
00
0(7
0.2
8)
(60
.53
)
Ba
nk lo
an
- f
ixe
d r
ate
50
00
010
0 0
00
Ba
nk lo
an
- v
ari
ab
le r
ate
Bo
nd
s -
fixe
d r
ate
Bo
nd
s -
va
ria
ble
ra
te
Loa
ns
- in
tere
st f
ree
26
44
1 0
00
Sett
lem
en
t a
gre
em
en
ts
7 8
58
00
0(7
0.2
8)
(10
0.0
0)
Inco
me
re
ce
ive
d i
n
ad
va
nce
Fin
an
ce
le
ase
ob
liga
tio
ns
Inte
rest
pa
ya
ble
217
13
6 0
00
Tra
de
an
d o
ther
pa
ya
ble
s2
38
09
5 5
73
33
0 2
08
30
74
12 3
96
827
457 0
91
101
48
2 6
88
20
25
00
68
8 3
159
.65
14
.94
217
13
6 0
00
Tra
de
pa
ya
ble
s 2
38
09
5 5
73
33
0 2
08
30
74
12 3
96
827
457 0
91
101
48
2 6
88
20
25
00
68
8 3
159
.65
14
.94
Tra
de
pa
ya
ble
s -
rela
ted
p
art
ies
159Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
Sta
tuto
ry p
aya
ble
s -
em
plo
ye
es
tax /
be
ne
fits
fu
nd
s
SA
RS
- V
AT
Am
oun
ts r
ece
ive
d i
n
ad
va
nce
Accru
al -
au
dit
fe
es
Accru
als
- o
ther
124
96
7 0
00
Oth
er
pa
ya
ble
s /
loa
ns
112
470
30
010
1 2
23
270
91
100
94
38
1 9
90
84
973
79
1 76
46
6 4
12 5
87
(10
.00
)(1
0.0
0)
11 8
47 0
00
Pro
vis
ion
s13
72
2 4
77
14 6
45
14
015
618
611
16 1
06
827
16 6
22
38
217
16
6 8
09
15.8
3
6.3
8
Lea
ve p
ay
4 0
29
00
0B
on
use
s5
90
4 4
77
6 3
89
33
26
90
0 4
78
6 9
00
478
6 9
00
478
6 9
00
478
46
.55
9
.38
Leg
al fe
es
- co
sts
an
d
cla
ims
7 8
18 0
00
Oth
er
7 8
18 0
00
8 2
55
80
88
718
13
39
20
6 3
49
9 7
21
90
410
26
6 3
31
4.6
5
Ba
nk o
verd
raft
Cu
rre
nt
acco
un
t 1
Cu
rre
nt
acco
un
t 2
Cu
rre
nt
acco
un
t 3
38
0 3
91
00
0372
14
6 3
50
44
6 0
76
717
519
116
38
15
55
18
8 7
76
573
15
2 3
49
58
4 3
67 7
11(2
.17)
7.4
2
68
5 4
41
00
0To
tal e
qu
ity a
nd
lia
bili
tie
s7
16 4
09
05
279
2 8
97 7
21
870
914
95
09
45
99
0 4
73
1 0
15 0
46
86
71
08
2 7
10 3
134
.52
7.9
2
160
Statement of Cashflow
Actu
al20
12/2
013
Acco
unt
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
OPE
RAT
ING
AC
TIV
ITIE
S
25
08
3 0
00
Net
pro
fit
for
peri
od
b
efo
re c
ha
ng
es
48
776
90
22
64
6 6
82
4 9
77 5
65
39
08
2 6
69
46
09
2 8
22
56
519
67
19
4.4
6
14.5
0
16370
00
0
Ad
just
me
nts
fo
r n
on
-ca
sh
ite
ms,
in
tere
st a
nd
oth
er
11 3
16 8
32
11 5
23
26
912
19
0 7
94
12 8
96
96
713
62
0 4
1614
38
4 4
93
(30
.87)
(2.13
)
126
80
00
0
- D
ep
recia
tio
n a
nd
a
mo
rtis
ati
on
15 0
71
310
15 9
99
02
816
92
1 6
71
17 8
97 5
05
18 8
99
76
519
95
8 1
52
18.8
6
7.8
5
- Im
pa
irm
en
ts o
f PPE
, in
tan
gib
les
an
d b
iolo
gic
al
ass
ets
- R
eti
rem
en
t b
en
efi
ts
pro
vis
ion
s
100
0
- Pro
fit
(lo
ss)
on
sa
le
of
fixe
d, i
nta
ng
ible
an
d
bio
log
ica
l a
ssets
(10
0.0
0)
(10
0.0
0)
39
520
00
-
Inte
rest
re
ce
ive
d -
(d
ed
uct
fro
m p
rofi
t)-3
79
3 2
14-4
512
00
0-4
76
9 1
84
-5 0
41
027
-5 3
23
474
-5 6
21
749
(19
5.9
8)
#N
UM
!
(26
30
00
)-
Inte
rest
pa
id -
(a
dd
to
p
rofi
t)3
8 7
36
36
24
03
8 3
06
40
48
94
4 1
26
48
09
0(1
14.7
3)
#N
UM
!
- R
eva
lua
tio
ns
of
ass
ets
- Im
pa
irm
en
t of
tra
de
re
ce
iva
ble
s
34
115
00
0
Ad
just
me
nts
fo
r:
- D
isco
nti
nu
ed
op
era
tio
ns
34
115
00
0
- o
ther
no
n c
ash
flow
a
dju
tme
nts
(175
320
00
)W
ork
ing
ca
pit
al ch
an
ge
s 2
8 5
38
774
74 4
49
279
63
417
62
510
517
68
4-9
19
7 5
16-9
59
2 3
49
(26
2.7
8)
(9.5
6)
220
00
-
Inve
nto
rie
s-9
0 3
45
-93
819
-1 6
75
-99
16
7-1
77
1-1
04
82
0(5
10.6
6)
#N
UM
!
(15
38
55
00
0)
- Tr
ad
e d
eb
tors
5 7
94
06
9-1
8 4
92
29
8-1
9 7
42
69
0-3
4 5
65
63
9-3
5 3
08
40
2-2
8 0
32
06
8(1
03
.77)
(24
.71)
- S
un
dry
de
bto
rs
1322720
00
-
Tra
de
an
d o
ther
pa
ya
ble
s2
0 9
59
573
92
112
73
48
2 1
88
519
44
69
4 2
742
5 5
97 1
02
18 0
00
112
(84
.15)
(28
.28
)
40
29
00
0
- Pro
vis
ion
s1
875
477
92
2 6
63
973
472
48
8 2
155
15 5
56
54
4 4
27
(53
.45
)(2
8.3
7)
58
03
60
00
N
et
ca
sh g
en
era
ted
fro
m
op
era
tin
g a
cti
vit
ies
88
63
2 5
08
88
619
23
08
0 5
85
98
46
2 4
97 3
20
50
515
72
36
1 3
11 8
145
2.7
2
0.9
2
161Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
(73
28
00
0)
INV
ES
TIN
G A
CT
IVIT
IES
-
NE
T C
AS
H U
TIL
ISE
D-4
5 7
84
574
-67 6
09
39
2-7
5 1
94
53
4-5
1 6
63
670
-52
64
5 9
87
-52
46
8 0
63
524
.79
3
8.8
3
(73
28
00
0)
- A
dd
itio
ns
to p
rop
ert
y,
pla
nt
an
d e
qu
ipm
en
t-4
9 5
87 3
99
-71
44
0 1
41
-81
69
6 1
65
-62
75
2 2
43
-65
00
0 0
00
-65
00
0 0
00
576
.68
4
3.8
8
- A
dd
itio
ns
to i
nta
ng
ible
a
ssets
- A
dd
itio
ns
to b
iolo
gic
al
ass
ets
- Pro
ce
ed
s o
n d
isp
osa
l of
fixe
d a
nd
in
tan
gib
le
ass
ets
3 8
02
82
53
83
0 7
50
6 5
01
63
111
08
8 5
72
12 3
54
013
12 5
31
937
- Pro
ce
ed
s o
n d
isp
osa
l of
bio
log
ica
l a
ssets
- In
vest
me
nts
in
su
bsi
dia
rie
s a
nd
a
sso
cia
tes
- In
tere
st r
ece
iva
ble
m
ove
me
nt
- M
ove
me
nt
in a
ssets
he
ld
for
sale
- In
cre
ase
(d
ecre
ase
) in
ca
pit
al
93
00
00
F
INA
NC
ING
AC
TIV
ITIE
S -
N
ET
CA
SH
UT
ILIS
ED
-36
88
9 4
22
-14
717
65
1-5
39
1 4
49
-4 1
89
09
92
13
0 2
64
-1 8
27 1
05
(40
66
.60
)#
NU
M!
(10
160
00
)-
Mo
vem
en
t in
lo
ng
term
b
orr
ow
ing
s -9
56
4 2
00
-88
38
0-7
9 5
42
5 0
00
00
0-7
1 5
88
84
1.3
6
(35
.73
)
- M
ove
me
nt
in
inve
stm
en
ts
194
60
00
-
Pro
ce
ed
s (r
ep
aym
en
t)
sho
rt t
erm
bo
rrow
ing
s-1
8 5
83
00
0-7
85
8 0
00
50
00
05
0 0
00
(10
54
.93
)(4
5.6
8)
- M
ove
me
nt
in lo
an
re
ce
iva
ble
s-1
2 4
96
70
0-1
1 24
7 0
30
-10
12
2 3
27
-9 1
10 0
94
-8 1
99
08
5-7
379
176
- In
tere
st r
ece
ive
d
3 7
93
214
4 5
12 0
00
4 7
69
18
45
04
1 0
27
5 3
23
474
5 6
21
749
- In
tere
st p
aid
-38
73
6-3
6 2
40
-38
30
6-4
0 4
89
-44
12
6-4
8 0
90
- M
ove
me
nt
in r
eti
rem
en
t b
en
efi
t o
blig
ati
on
s
- A
dju
stm
en
t fo
r n
on
-ca
sh
inte
rest
CA
SH
AN
D C
AS
H
EQ
UIV
ALE
NT
S
162Ac
tual
2012
/201
3Ac
coun
t
Estim
ated
Ac
tual
20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2014
/201
320
19/2
013
516
38
00
0
- N
et
incre
ase
(d
ecre
ase
) in
ca
sh u
tilis
ed
fo
r th
e
ye
ar
5 9
58
512
6 2
92
18
81
6 6
44
55
1-0
7 0
16 6
46
(88
.46
)(2
8.3
0)
54
76
40
00
-
At
be
gin
nin
g o
f ye
ar
106
40
2 0
00
112
36
0 5
1211
8 6
52
70
111
8 6
52
70
112
5 2
97 2
52
125
29
7 2
52
94
.29
14
.79
106
40
2 0
00
- AT
EN
D O
F Y
EA
R11
2 3
60
512
118
65
2 7
00
118
65
2 7
02
125
29
7 2
51
125
29
7 2
52
132
313
89
85
.60
3
.70
-01
-10
00
106
40
20
00
-
en
d o
f ye
ar
per
ba
lan
ce
sh
eet
112
36
0 5
1211
8 6
52
70
111
8 6
52
70
112
5 2
97 2
52
125
29
7 2
52
132
313
89
8
163
Capital Expenditure Program
Actu
al20
12/2
013
Cape
x Ca
tego
ryEs
timat
ed A
ctua
l 20
13/2
014
Proj
ecte
d20
14/2
015
Budg
et20
15/2
016
Budg
et20
16/2
017
Budg
et20
17/2
018
Budg
et20
18/2
019
Grow
th %
2013
/201
420
19/2
013
Imm
ova
ble
ca
pex
Au
gm
en
tati
on
an
d
up
gra
de
48
53
8 3
80
48
14
7 8
41
57 0
61
35
13
6 6
97 5
00
Exp
an
sio
n3
5 0
00
00
03
5 0
00
00
0
100
140
00
Re
ha
bili
tati
on
(10
0.0
0)
(10
0.0
0)
Deve
lop
me
nt
pro
jects
100
140
00
48
53
8 3
80
48
14
7 8
41
57 0
61
35
13
6 6
97 5
00
35
00
0 0
00
35
00
0 0
00
38
4.7
1 2
3.19
Mo
vab
le c
ap
ex
3726
00
0E
qu
ipm
en
t a
nd
ve
hic
les
1 0
49
019
23
29
2 3
00
24
63
4 8
142
6 0
54
74
33
0 0
00
00
03
0 0
00
00
0(7
1.8
5)
41.57
Info
rma
tio
n t
ech
no
log
y
co
mm
un
ica
tio
n
La
bo
rato
ry a
nd
pro
ce
ss
serv
ice
s
3726
00
01
04
9 0
192
3 2
92
30
024
63
4 8
142
6 0
54
74
33
0 0
00
00
03
0 0
00
00
0(7
1.8
5)
41.57
Su
mm
ary
100
140
00
Imm
ova
ble
ca
pex
48
53
8 3
80
48
14
7 8
41
57 0
61
35
13
6 6
97 5
00
35
00
0 0
00
35
00
0 0
00
38
4.7
1 2
3.19
3726
00
0M
ova
ble
ca
pex
1 0
49
019
23
29
2 3
00
24
63
4 8
142
6 0
54
74
33
0 0
00
00
03
0 0
00
00
0(7
1.8
5)
41.57
1374
00
00
49
58
7 3
99
71
44
0 1
41
81
69
6 1
65
62
75
2 2
43
65
00
0 0
00
65
00
0 0
00
26
0.9
0
29
.57
% o
f to
tal
12.5
%18
.1%2
0.7
%15
.9%
16.4
%16
.4%
Tota
l fo
reca
st p
eri
od
-
20
14 t
o 2
019
39
5 4
75
94
83
0.6
%3
8.7
%3
6.5
%3
2.3
%3
2.9
%
Re
con
cili
ati
on
1374
00
00
Ca
pex a
bo
ve
49
58
7 3
99
71
44
0 1
41
81
69
6 1
65
62
75
2 2
43
65
00
0 0
00
65
00
0 0
00
26
0.9
0
29
.57
-13
74
0 0
00
Ca
pit
alis
ed
fix
ed
ass
ets
-
per
fixe
d a
ssets
en
try
-49
58
7 3
99
-71
44
0 1
41
-81
69
6 1
65
-62
75
2 2
43
-65
00
0 0
00
-65
00
0 0
00
26
0.9
0
29
.57
Ca
pit
alis
ed
in
tan
gib
les
- p
er
inta
ng
ible
s e
ntr
y
Wri
tte
n o
ff t
o e
xp
en
ses
Dif
fere
nce
-0
-0-0
0
Cu
mula
tive
dif
fere
nce
-0-0
-1-0
-0-0
164
Financial Ratios
Actu
al20
12/2
013
Cate
gory
Estim
ated
Act
ual
2013
/201
4Pr
ojec
ted
2014
/201
5Bu
dget
2015
/201
6Bu
dget
2016
/201
7Bu
dget
2017
/201
8Bu
dget
2018
/201
9
Grow
th %
2013
/201
420
19/2
013
Perf
orm
an
ce i
nd
ica
tors
0.2
91
- C
ost
of
raw
wa
ter
/ p
rim
ary
reve
nu
e0
.24
3
0.2
58
0
.25
9
0.2
64
0
.272
0.2
64
(1
6.2
3)
(1.6
0)
0.8
14
- C
ost
of
sale
s /
tota
l re
ven
ue
0.7
77
0.8
75
0
.84
9
0.7
85
0
.78
3
0.7
72
(4.5
0)
(0.8
8)
0.14
7
- G
en
era
l exp
en
ses
/ to
tal
reve
nu
e0
.121
0.13
7
0.15
8
0.15
2
0.14
5
0.14
2
(17.
30
)(0
.54
)
20
52.19
3
- E
mp
loye
es
co
sts
/ p
er
me
ga
litre
20
22
.50
5
216
2.3
62
23
01.1
88
2
07
1.2
08
2
167.
03
5
22
69
.376
(1
.45
)1.6
9
0.2
40
-
Em
plo
ye
e c
ost
s /
tota
l co
sts
exc
l fi
na
nce
co
sts
0.2
43
0
.25
2
0.2
51
0.2
31
0.2
39
0
.24
8
1.24
0
.56
- O
pera
tin
g p
rofi
t (l
oss
) p
er
em
plo
ye
e
- To
tal st
aff
co
mp
lem
en
t
- M
an
ag
em
en
t
- O
ther
Op
era
tin
g r
isks
26
4.4
- D
eb
tors
da
ys
(tra
de
d
eb
tors
exc
l V
AT/
reve
nu
e
x 3
65
da
ys)
23
3.9
2
69
.3
26
2.9
2
31.6
24
0.9
24
4.4
(1
1.5
5)
(1.3
0)
2.0
%
- R
etu
rn o
n a
ssets
(E
BIT
/
tota
l a
ssets
exc
lud
ing
in
vest
me
nts
)6
.3%
0.0
%3
.6%
4.0
%4
.7%
20
9.10
15
.01
Fin
an
cia
l ri
sks
1.0
33
-
Cu
rre
nt
rati
o (
cu
rre
nt
ass
ets
/ c
urr
en
t lia
bili
tie
s)1.0
56
0
.937
0.8
43
0
.86
3
0.8
98
0
.94
0
2.2
8
(1.5
5)
0.12
5
- G
ross
de
bt
/ e
qu
ity r
ati
o
(to
tal d
eb
t lia
bili
tie
s /
tota
l e
qu
ity)
0.0
25
0
.00
2
0.0
02
0.0
02
0.0
13
0.0
12
(79
.67)
(32
.68
)
0.0
54
-
De
bt
/ a
ssets
ra
tio
(to
tal
de
bt
/ to
tal a
ssets
)0
.012
0
.00
1 0
.00
1 0
.00
1 0
.00
6
0.0
05
(7
7.3
3)
(32
.03
)
Bu
sin
ess
cre
dit
ris
k
- in
tere
st c
ove
r (E
BIT
/
inte
rest
pa
id)
116
2.3
02
(50
.47
1)6
.44
0
84
1.76
4
924
.93
3
105
9.3
95
Su
rplu
s ra
tio
s
0.0
7
- R
etu
rn o
n t
urn
ove
r (n
et
pro
fit
/ tu
rno
ver
)0
.12
0.0
1 0
.01
0.0
8
0.0
9
0.10
75
.50
6
.25
165
Annexure H - 5 Year Capex Programme
Proj
ects
Prop
osed
Fun
ding
Sou
rce
Grow
th S
trat
egy
Pla
n P
roje
ctio
n
Amat
ola
Wat
er
Rese
rves
Loan
Na
tiona
l Tr
easu
ry G
rant
Tota
l20
14Ye
ar 0
2015
Year
120
16Ye
ar 2
2017
Year
3
2018
Year
420
19Ye
ar 5
Na
ho
on
BW
S
Up
gra
de
WT
W R
-
R -
R
12
92
5 3
13
R 1
2 9
25
313
R
1 0
02
82
5
R 1
2 9
25
313
Su
b-t
ota
l R
-
R -
R
12
92
5 3
13
R 1
2 9
25
313
R
1 0
02
82
5
R 1
2 9
25
313
R
-
R -
R
-
R -
Sa
nd
ile
BW
S
Up
gra
de
Re
serv
oir
s R
-
R -
R
16
770
00
0
R 1
6 7
70
00
0
R -
R
-
R 1
6 0
80
00
0
R 6
90
00
0
R -
R
-
Up
gra
de
Bulk
d
istr
ibu
tio
n R
-
R -
R
15
9 1
30
20
0
R 1
59
13
0 2
00
R
-
R -
R
15
2 2
30
20
0
R 6
90
0 0
00
R
-
R -
Up
gra
de
WT
W R
-
R -
R
65
66
7 5
68
R
65
66
7 5
68
R
8 8
17 2
32
R 6
2 1
67 5
68
R
3 5
00
00
0
R -
R
-
R -
Up
gra
de
pu
mp
st
ati
on
s R
-
R -
R
2 6
33
00
0
R 2
63
3 0
00
R
-
R -
R
2 5
08
00
0
R 1
25
00
0
R -
R
-
Su
b-t
ota
l R
-
R -
R
24
4 2
00
76
8
R 2
44
20
0 7
68
R
8 8
17 2
32
R 6
2 1
67 5
68
R
174
318
20
0
R 7
715
00
0
R -
R
-
Pe
dd
ie B
WS
Up
gra
de
Bulk
d
istr
ibu
tio
n R
-
R -
R
23
54
0 0
00
R
23
54
0 0
00
R
1 6
14 2
40
R
22
42
0 0
00
R
1 1
20
00
0
R -
R
-
R -
Re
serv
oir
s R
-
R -
R
-
R -
R
-
R -
R
-
R -
R
-
R -
Up
gra
de
WT
W R
-
R -
R
-
R -
R
-
R -
R
-
R -
R
-
R -
Up
gra
de
pu
mp
st
ati
on
s R
-
R -
R
-
R -
R
-
R -
R
-
R -
R
-
R -
Su
b-t
ota
l R
-
R -
R
23
54
0 0
00
R
23
54
0 0
00
R
1 6
14 2
40
R
22
42
0 0
00
R
1 1
20
00
0
R -
R
-
R -
De
be
Ne
k B
WS
Up
gra
de
Bulk
d
istr
ibu
tio
n R
-
R -
R
10
36
0 0
00
R
10
36
0 0
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Annexure I - Bank Account Details
Bank Accounts Account Number Branch Branch Number
Standard Bank
Current Accounts
Cheque - Current 081075138 East London 050021
Cheque - Current 080002277 Port Elizabeth 050017
Cheque - Salary 081076533 East London 050021
Cheque - DOE Projects 081180616 East London 050021
Call Accounts
Daily Call 088594866-1 East London 050021
Daily Call 088594866-2 East London 050021
Daily Call 088594866-3 East London 050022
Daily Call 088420124-2 Port Elizabeth 050017
Market Link 655728821 Port Elizabeth 050017
Stanlib
Call Accounts
Daily Call 54781016 Melrose
Daily Call 75144785 Melrose
Nedbank
Current Accounts
Cheque - Current 1210394685 East London 121021
Call Accounts
Daily Call 7210519319 East London 121021
Private Bag X3, Vincent, 5217
Amatola House, 6 Lancaster Road, Vincent, 5247
Tel: (043) 709 3700
Fax: (043) 707 3701
Email: [email protected]
www.amatolawater.co.za
Contact Details
