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GEARED TO LEAD EMPOWERING CUSTOMERS WITH INNOVATIVE TECHNOLOGIES P P P P 2019/2020 ANNUAL REPORT ABOUT US CONTENTS ABOUT THIS REPORT THE THEME IS INSPIRED BY THE CORPORATION’S NEW VISION THAT SETS WUC’S TRANSFORMATION AGENDA IN MOTION. THE DESIRE TO LEAD TARGETS THE CUSTOMER AT THE END OF THE VALUE CHAIN HENCE OUR VALUES; CUSTOMER FIRST ALONGSIDE INNOVATION, TEAMWORK, RELIABILITY AND INTEGRITY. ANNUAL REPORT 2019/2020 WATER UTILITIES CORPORATION 1 INTRODUCTION GOVERNANCE Corporate Profile 2 Board and Corporate Governance 10 Summary of Performance 4 Chief Executive Officer’s Report 14 Board Chairman’s Statement 6 High Level Structure 18 Corporate Management Team 19 SUSTAINABILITY Water Resources Management 24 Water and Wastewater Quality Investment in Employee Safety 25 Management 36 Sustainable Business Practices 25 Wastewater Quality 37 Water Resource Monitoring 26 Potable Water Quality 37 Corporate Citizenship 26 Customer Services 38 Corporate Social Responsiblity 27 Customer Service Channels 40 Growing the Education Centre 27 Debt 41 Sponsorship 28 Consultative Opportunities 42 WUC and Communities 29 Media Engagement 43 Surface Water Resources 30 Our Employees 44 Bulk Water Supply Schemes 31 Employeee Wellness 45 Special Projects 34 Employee Insurance Schemes 45 SHE and Quality 36 Government Internship Programme 45 FINANCIAL STATEMENTS General Information 48 Statement of Financial Position 58 Statement of Responsibility by Statement of Changes in Equity 59 Members of the Board 49 Statement of Cash Flows 60 Independent Auditor’s Report 50 Notes to the Annual Financial Statement of Comprehensive Statements 61 Income 57 Printed Section The printed version of the integrated annual report aims to provide concise, relevant and reliable information addresing the Corporation’s objectives and activities Online Section The online version is made available to provide convenience of accessibility and cater for readership preference to Water Utilities Corporation stakeholders. The integrated annual report aims to provide concise, relevant and reliable information addressing the Corporation`s objectives and activities https://www.wuc.bw/wuc-publications-list/id/3/annual-reports/ 2 ABOUT US INTRODUCTION CORPORATE PROFILE Established in 1970 by an Act of Parliament (Laws of Botswana Cap 74:02), Water Utilities Corporation (WUC) is a parastatal organisation wholly owned by the Government of Botswana. Upon establishment, it was mandated to manage a single project: the supply and distribution of water in what was then called the Shashe Development Area. WUC’s New Values Indicating the Acceptable Behaviours of Employees to Support the Achievement of Our New Strategy RELIABILITY The mandate involved planning, constructing, operating, We do what we promise in our relationships treating, maintaining and distributing water resources in with our colleagues, stakeholders and the country’s urban centres and other areas as mandated customers, and we are consistent in the by the Botswana Government. It also involved the supply delivery of our services and work of bulk water to the then Department of Water Affairs and various Local Authorities for onward distribution to TEAMWORK villages and settlements in the country. We have a collaborative approach to work that always strives to provide the best Between 2009 and 2013, the water sector was solutions to the customers restructured. The Corporation was given a new mandate to supply potable water to all urban centres and villages INNOVATIVE in the country, as well as to manage wastewater We apply practical and contemporary and sanitation services. The Water Sector Reforms solutions to our service delivery, while (WSR) programme was the result of a study aimed at remaining grounded in our markets and rationalising the water sector in Botswana and ensuring customer needs. uniform service levels. The delivery of uniform service levels at a uniform tariff, and upgrading of water CUSTOMER-FIRST infrastructure, remain a long-term project that the Our customers are our first priority, driving Corporation is pursuing. the decision-making and the way in which we carry out our duties The WSR commencement and implementation increased the Corporation’s customer base from 80,000 in 2009 INTEGRITY when the programme began, to over 440,000 to date. We will conduct our business in a trustworthy, honest, and ethical manner ANNUAL REPORT 2019/2020 WATER UTILITIES CORPORATION 3 STRATEGY The Corporation’s asset base, which is valued at over Vision P9 billion, includes nine dams: Gaborone, Nnywane, Bokaa, Shashe, Letsibogo, Ntimbale, Dikgatlhong, Thune and Lotsane. It also incorporates the North South Carrier Scheme, which includes a 360 km NSC 1 pipeline from Letsibogo dam to Mmashashia; 150 km NSC 2.1 pipeline from Dikgatlong dam to Palapye, and Mission a 110 km pipeline from Mmamashia to Kanye. CUSTOMER BASE up from 80,000 in 2009 to 440,000 “We will be a leading water utility service provider by 2022” VISION F 1. ENSURE FINANCIAL SUSTAINABILITY F 2. F 3. F 4. MAXIMIZE REVENUE REDUCE DEBT REDUCE NRW FINANCIAL C 1. C 2. C 3. C4. “I WANT A CORRECT BILL “I WANT A CONSISTENT AND “TELL ME PROMPTLY WHAT “I WANT A WUC THAT IS SOCIALLY AND ON TIME” RELIABLE WATER SUPPLY” I NEED TO KNOW“ AND ENVIRONMENTALLY RESPONSIBLE” CUSTOMER/ CUSTOMER/ STAKEHOLDERS Operational Excellence Customer Focus Management Excellence IP 1. IP 3. OPTIMISE IMPROVE INFRASTRUCTURE COLLECTION AND ASSET EFFICIENCY IP 5. IP 6. IP 7. IP 8. MANAGEMENT IMPROVE IMPROVE IMPROVE DIVERSIFY CUSTOMER CUSTOMER AND MANAGEMENT REVENUE IP 2. IP 4. SERVICE STAKEHOLDER OF COST STREAMS IMPROVE MAXIMIZE METER ENGAGEMENT COMPLIANCE READING AND INTERNALPERSPECTIVE TO STANDARDS BILLING EFFICIENCY L 1. L 2. L 3. L 4. PROMOTE A INCREASE DIGITISATION OF WUC FOSTER EFFECTIVE ENHANCE INTERNAL COLLABORATIVE AND TO ENABLE THE BUSINESS LEADERSHIP, SKILLS, AND COMMUNICATION PERFORMANCE-DRIVEN COMPETENCIES LEARNING & GROWTH ORGANISATION 4 ABOUT US INTRODUCTION SUMMARY OF PERFORMANCE Strategic Initiatives FINANCIAL 35% Revenue Return on Equity Customer 49% Focus Operational 16% Excellence Management P1.8 billion 1.3% Excellence 0.2% 2% Comprehensive Cash and Cash Operational Excellence We will ensure that we achieve Surplus Equivalents our mandate through providing more reliable services to customers, while also preserving the natural resources of P76million P2.1billion Botswana. 59% 14% Customer Focus WUC will become more focused Key performance indicators in its approach in dealing with customers and turning them into supporters of the brand. This is FY19/20 FY18/19 crucial for its future success. Consolidated P’000 P’000 Management Excellence Total comprehensive income 75,598 185,500 Due to its precarious financial Taxation (28,624) (39,826) situation after the Water Reform, Net assets 5,682,378 5,606,780 WUC needs to dedicate its attention to better managing its financial performance to ensure sustainability of its operations. Refer to page 57 to 101 for additional information on the Corporation’s financial results 21.2hrs/day Reliability of water supply We aim to be the leading water utility service provider by 2022 ANNUAL REPORT 2019/2020 WATER UTILITIES CORPORATION 5 People Percentage of Women at Management Level % % 100 Localisation of 36 Top Management Staff Complement 3,076 as at 31 March 2020 6 GOVERNANCE CHIEF EXECUTIVE OFFICER’S STATEMENT CONTINUED BOARD CHAIRMAN’S STATEMENT On behalf of the Water Utilities Corporation Board of Directors, I am delighted to present our Annual Report for the financial year ending 31 March 2020. The financial year ushered in the Corporation’s new 2019-2022 Strategy aimed at taking WUC through a transformational journey. The report has been carefully crafted to ensure alignment with sustainability practices and global reporting initiatives to help readers appreciate our strategic journey and our commitment to serve the people of Botswana. Corporate Strategy The new Corporate Strategy Vision is to be “…a leading water utility service provider by 2022”. ANNUAL REPORT 2019/2020 WATER UTILITIES CORPORATION 7 The Corporation experienced growth in its asset base OPERATING COSTS CONTINUED TO from P9.2 million in March 2019 to P9.8 million in March GROW AT A HIGHER RATE 2020. Total revenue for the review period remained constant from the previous financial year at P1.9 billion. Operating costs continued to grow at a higher rate than 19% income and reached P1.9 billion in March 2020, up from P BN P1.6 billion in the previous year. Much of this was due to significant IFRS changes as well as the COVID-19 pandemic, which resulted in the introduction of new 1.9 costs in the last month of the financial year. These did not 2019: 1.6BN affect cash outflows, however, it significantly increased total operating costs. Various objectives and initiatives are currently being Outlook and prospects implemented to achieve success in these areas and thus In the face of an ever-challenging water industry to ultimately realise the Vision. which includes threats to the sustainability of supply and access to water, WUC managed to record a 1% The Vision has three critical measures: financial growth in its customer base, bringing the number of performance, which is measured by operating costs over customers to 440,000. A noteworthy achievement was collected revenue; operational performance measured the improved access to potable water infrastructure by Non-Revenue Water; and reliability and accessibility from 84% in FY18/19 to 85% in the reporting period – of water supply with reliability measured as hours of a result of additional connections and the securing of water supply in a day, and accessibility as a percentage water sources. WUC has embarked on major potable of population with access to safely managed drinking and wastewater management projects, signifying a water. The target of reliability of water supply is on a commitment to ensuring water security, improving water positive projectile, as the Corporation managed 21.1 transmission and supply, and improvements to services hours of supply against the target of 22 hours. However, provisioning.
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