Vision
To be a provider of sustainable, Strategic Objectives universally competitive water and • Achieve growth; sanitation solutions • Achieve a high-performance culture; for Africa. • Positively engage stakeholder base; • Maintain financial health and sustainability; and • Achieve operational integrity and use best fit technology.
Mission To consistently meet the expectations of our customers, partners and the government by strengthening our capability to:
• attract, develop and retain leading edge skills in water services;
• sustain a robust financial performance;
• develop and sustain globally competitive capabilities in core areas;
• enter into and sustain productive partnerships; and
• develop, test and deploy cost-effective technologies.
Primary Activities and Key Competencies
Bulk potable water supply Project and quality management Bulk sanitation services Commissioning of water and waste-water Products and other services treatment plants Operating and maintenance expertise Training, education and communication Engineering planning and designs programmes Catchment management services Infrastructure refurbishment Scientific and analytical services Water demand management Utility management Retail water services Sanitation and waste water management Water cycle management services
Rand Water Annual Report 2009–2010 Message from the Acting Chairperson
of uninterrupted bulk water services supply despite the recessionary environment that characterised the year under review. Some costs saving measures were embarked upon and these mitigated the impact of the drastically reduced Tariff, and the double- digit increase in the cost of energy on the overall results. The Board approved a new Strategy for Rand Water and this created a basis upon which Key Performance Areas (KPAs) were developed. Performance Management was a high priority during the year under review and very strict targets were set for the Executive Management to accomplish.
The total process of risk management, which includes a related system of internal controls, remains the responsibility of the Board of Rand Water. To this end, It gives much pleasure to report on the Rand Water’s the Board adopted the Top Thirteen Risks that were performance for the financial year 2009-10. identified during the year under review. The Board has also established a dedicated Board Risk Committee (BRC) The Report is based on the Shareholder Compact the purpose of which is to ensure adequate controls for entered into between the Board of Rand Water and the Enterprise Wide Risk Management. The Board is satisfied Honorable Minister of Water Affairs and Environment. that the reports prepared by Rand Water’s Internal Included in the Shareholder Compact is a clear Policy Audit division, coupled with those of other independent Directive from the Shareholder towards which Rand organisations have provided sufficient Combined Water should focus its resources in support of the Assurance that controls are in place to mitigate the Risks. Government priorities. I would like to acknowledge the outgoing Chairperson A new multi talented Board of Rand Water was of the Board, Ms Jean Ngubane, for her sterling service inaugurated during April 2009. The various skills and to Rand Water. I would like to express my appreciation expertise of the Board Members have undoubtedly assisted to all the Staff, Management Team, the Portfolio Rand Water to produce the good results. The Board Integrating Committee (PIC) members and also to my remains committed to the principles of good Corporate fellow colleagues on the Board for their contribution to Governance. To this end, the year under review saw the the success and stability of Rand Water. I would like to adoption of both a Board Charter and the Rand Water further acknowledge with gratitude the support extended Code of Ethics. to Rand Water by the Honorable Minister of the Department of Water Affairs and Environmental during During the year under review the critical linkage the time of transition from the old to the new Board and between Policy and the Strategy execution was for having entrusted me with a huge responsibility of emphasised. This necessitated a review of several acting as Chairperson of the Board. of Rand Water’s Policies to enable the effective transformation of the business.
Effective oversight by the Board in partnership with the Adv M PETLANE Executive Team enabled Rand Water achieve its mandate ACTING CHAIRPERSON
Rand Water Annual Report 2009–2010 The Board of Rand Water
Adv Mosotho Petlane – Acting Chairperson
Member of the Board of Rand Water as from: 1 June 2002 Academic qualifications:BA, LLB, Postgraduate Diploma in Business Administration, MBA
Adv Petlane is an Executive Director at the Sedibeng District Municipality, and serves as a Commissioner with the General Public Service Sector Bargaining Council (GPSSBC). He is also the Chairperson of the Vaal University of Technology Foundation.
Mr Percy Sechemane – Chief Executive
Member of the Board of Rand Water as from: 1 September 2008 Academic qualifications:BCom, MBA
Mr Sechemane has previously served as the Chief Executive Officer for the Regional Electricity Distributor – RED ONE. As General Manager at Eskom, he occupied a variety of leadership roles in a number of the electricity supplier’s regions. His experience is rooted in the engineering, strategy, finance and governance disciplines both within the Private and Public sector, with a strong emphasis on services delivery initiatives. Mr Sechemane has a special interest in driving co-operative governance towards achieving key government mandates.
Mr Dawood Coovadia
Member of the Board of Rand Water as from: 1 April 2005 Academic qualifications:BCompt (Hons), BCompt, CA (SA), BAC (SA), CMC, FIMC, FIAC, FCIS, FSAIM, GIA (SA), CAT (UK), M Inst D and JP
Mr Coovadia is a Chartered Accountant (SA) practicing with Coovadia and Associates. He practices as a registered professional Accountant, Internal Auditor, Management Consultant and Tax Advisor. He is a non-executive director of the S A National Roads Agency Limited and the Gauteng Enterprise Propeller. He also serves as Chairman and member of several Audit and Board Committees.
Dr Michael Ellman
Member of the Board of Rand Water as from: 1 June 2002 Academic qualifications:Bsc, MSc Chemical Engineering, MBA, PhD
Dr Ellman is a Senior Consultant and Managing Member of Siyadingana Consultants CC, with more than 35 years professional and managerial experience in the mining, chemical, oil and gas, electricity, standards development and water sectors. Dr Ellman serves on the Advisory Board of the Department of Chemical Engineering at the University of Pretoria. He is a former president of the South African National Committee of the International Electro-technical Commission (IEC) in Geneva; and is also a former Chairman of the Electro-technical Sector Board of the SABS.
Rand Water Annual Report 2009–2010 The Board of Rand Water (continued)
Adv Matshidiso Hashatse
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:BA Journalism, LLM, LLB
Adv Hashatse is the Deputy Dean at the Faculty of Students at Rhodes University. She served her articles at Maluleke, Msimang and Associates, and has also conducted extensive legal consultancy work. She is a former executive councillor with the S A Telecommunications Regulatory Authority. Adv Hashatse has served as the Deputy Director at the University of Pretoria, serving as attorney and project co-ordinator at the Centre for Human Rights. She has also edited and co-edited books on the rights of children, and other legal issues.
Ms Matshidiso Magonare
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:BA Ed, B Ed (Hons Environmental Education) Integrated Environmental Management (IEM), Project Management, Community Capacity Building (Cert), Assessor (Cert), Moderator (Cert)
Ms Magonare is a former education and training quality manager at the Chemical Industries Education and Training Authority (CHIETA). She has extensive experience in education and training, environmental education and community development; and has held numerous positions with both the S A Qualifications Authority and the then Department of Environmental Affairs and Tourism.
Dr Patricia Makhesha
Member of the Board of Rand Water from 1 April 2005 to 15 December 2009 Academic qualifications:DBA, MBA, EDP, PMD, NDip Public Relations Management
Dr Makhesha is the Chief Executive officer of Mothibi Multimedia Investments.
Mr Lefadi Makibinyane
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:MBL (Investment Banking & International Finance), B.Eng (Hons) in Chemical Engineering, MDP (Project Management), Professional Engineer, Chartered Engineer, MIChemE
Mr Makibinyane is currently a Strategic Executive Director at the City of Tshwane Metropolitan Municipality where he heads the Public Works and Infrastructure Development Department (Water & Sanitation and Energy & Electricity). He has extensive Management, Technical/Engineering and Commercial/Financial experience gained with local and international Blue Chip companies over a 20 year working career.
Rand Water Annual Report 2009–2010 Ms Savannah Maziya
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:BCom (Hons) Finance & Broadcast Communication (USA), MBA Strategy & Finance (UK)
Ms Maziya is the Group Chief Executive of the Bunengi Group, a company that is involved in construction, mining, social infrastructure, financial services and agriculture. She also serves on the boards of the Bunengi Group, Wilson Bayley Holmes-Ovcon (WBHO) Construction. Ms Maziya also Chairs the National Regulator for Compulsory Specifications.
Ms Phumelele Ndumo-Vilakazi
Member of the Board of Rand Water as from: 1 April 2005 Academic qualifications:BCom, MBL, Higher Diploma in Computer Auditing
Ms Ndumo-Vilakazi has occupied senior positions with three of South Africa’s major banks, and was also an executive manager for corporate finance and strategy at Metropolitan Retirement Administrators. With competencies in finance, auditing, project management and communications; she also serves as a non-executive director for a number of entities. Ms Ndumo- Vilakazi is an author, and is the founding Managing Director of Thuthuka SA.
Ms Jean Ngubane
Member of the Board of Rand Water from 1 April 1995 to 2 April 2010 Chairperson of the Board of Rand Water from 1 April 2005 to 2 April 2010 Academic qualifications:BA, Postgraduate Diploma Applied Social Science
Ms Ngubane is a former director of the Association for Rural Advancement, the Rural Transformation Association, the S A Council of Churches, and was a researcher at the Human Sciences Research Council. Ms Ngubane currently serves on the boards of numerous entities.
Ms Nolumphumzo Noxaka
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:CA (SA), MBA, BAdmin, BCom. Acc Hons, N Dip Financial Markets and Instruments, H Dip Computer Audit
Ms Noxaka is the Managing Director of Alatha Consulting. She was previously the GM Finance and Administration at SAMRO Ltd. She has occupied senior positions in the financial services sector, including Strategic Projects Consultant at Absa and Chief Financial Officer at Meeg Bank. Ms Noxaka is on the boards of Necsa and Mr Bread (Pty) Ltd, and serves on various Audit Committees.
Rand Water Annual Report 2009–2010 The Board of Rand Water (continued)
Ms Thembisile Nwedamutswu
Member of the Board of Rand Water as from: 1 April 2009 Academic qualifications:Policy Studies (Masters), Adv Diploma in Accounting, Dip Business Admin, Youth Development Certificate, Training of Trainers Cert, Organisation and Strategic Management Certificate
Ms Nwedamutswu is the Chief Executive of the Independent Development Trust. She was previously Deputy Director for Integrated Development and Poverty Relief at the Department of Social Development. She has experience in social development, and has occupied senior positions in the public sector. She is a former member of the Independent Development Trust and the Peoples Housing Trust.
Professor Frederick A. O. Otieno
Member of the Board of Rand Water as from: 1 April 2005 Academic qualifications:PhD (Civil), MBA, MSc, BSc (Civil) (Eng) (Hon), PrEng, FSAICE
Professor Otieno is a professional engineer in South Africa and the United Kingdom. A Fellow of the S A Institute of Civil Engineers and the Water Institute of Southern Africa, he is currently a Professor of Civil Engineering and the Deputy Vice Chancellor: Technology Innovation and Partnerships, at the Durban University of Technology. He has worked as a Consulting Engineer, researcher and entrepreneur in Civil, Water Engineering and Environmental Management. Professor Otieno has served as president of WISA, and is a non-executive director, and a member of numerous organisations.
Ms Ferhina Saloojee
Member of the Board of Rand Water as from: 1 June 2002
Ms Saloojee is a former councillor with the Rustenburg Local Municipality. She has served in numerous leadership roles in local government, as well as in private sector institutions. Ms Saloojee holds directorships in a number of companies, including Halotsal (Pty) Ltd, Bergers Filling Station and Salvest Property Investments CC.
Mr Mdibanisi Tsheke
Member of the Board of Rand Water as from: 1 June 2002 Academic qualifications:National Preliminary Certificate in Business Administration
Mr Tsheke is a former Executive Mayor of the Govan Mbeki Local Municipality. He serves on the Executive Committee of the South African Local Government Association, and as an Executive of SANCO. Mr Tsheke also serves on the board of Rand Water Services (Pty) Ltd.
Rand Water Annual Report 2009–2010 Board and Sub-Committees
Board of Directors • M M Petlane • J M Ngubane† M M Petlane (Acting Chairperson) • N Noxaka (Acting Chairperson) • M Tsheke • T Nwedamutswu • D Coovadia • F A O Otieno • M J Ellman • F Saloojee • M F Hashatse • DKP Sechemane • M B Magonare (Chief Executive) • S P Makhesha # • L Makibinyane • S Maziya • P Ndumo-Vilakazi
Audit Committee Capital Investment Risk Committee M M Petlane Committee M Tsheke (Acting Chairperson) F Saloojee
• D Coovadia • MJ Ellman • MF Hashatse • MJ Ellman • S Maziya • MB Magonare • M Hashatse • N Noxaka • N Noxaka • P Ndumo-Vilakazi • FAO Otieno • FAO Otieno • N Noxaka • M Tsheke • F Saloojee
Remuneration Treasury Committee Committee D Coovadia T Nwedamutswu
• MB Magonare • MJ Ellman • SP Makhesha • L Makibinyane • T Nwedamutswu • S Maziya • FAO Otieno • P Ndumo-Vilakazi • F Saloojee • F Saloojee
# Resigned 15 December 2009 † End of term in office 2 April 2010
Rand Water Annual Report 2009–2010 Chief Executive’s Report
As a mandated bulk water services provider in terms of the Water Services Act No 108 of 1997, Rand Water has during the year under review continued to provide sufficient quantity of high quality water to our customers. This was evidenced by the 2009/10 Blue Drop Certification that was awarded to Rand Water by the Department of Water Affairs and Environment. Furthermore, almost all the municipalities in our service area were also awarded the Blue Drop Certification. The achievement of this award served but to reinforce Rand Water’s international reputation as a supplier of high quality bulk water services.
Rand Water Strategy has also prioritised the provision of Bulk Sanitation to customers. Rand Water is steadily increasing its footprint into this market, and it is envisaged that this will have a positive impact on the overall quality of the Water Resource within our service It gives me much pleasure to announce the results for the area. A more detailed account of the strides made in this financial year ending 30 June 2010. The year under regard is detailed in this Report. review was characterised by interesting challenges. Rand Water’s achievements have been extensively Management is accountable to the board for designing, detailed in this Report. implementing and monitoring the process of risk management, and integrating it into the day-to-day Rand Water is expected to take on an increased role in activities of the company. The internal audit function is the provision of high quality potable water. Rand Water’s used to provide independent assurance in relation to service area was extended to include the Victor Khanye management’s assertions in so far as the effectiveness (formerly Delmas) Local Municipality in Mpumalanga. of risk management and internal control at Rand Water A Ministerial Directive was also received from the is concerned. During the year under review, the Top 13 Shareholder for Rand Water to support the management Risks were identified, and sufficient controls were put in of the Bushbuckridge Water Board. Rand Water place to mitigate them. accepted the Directive, and has to date endeavoured to assist with stabilising the Bushbuckridge Water Board. Rand Water continues to operate on a strong financial footing. In the current year, profitability declined in Stakeholders are critical to the survival of Rand Water. comparison with the previous financial year, mainly as Priority was placed on strategic interaction with the a result of a lower than expected tariff increase that Shareholder, the Parliamentary Portfolio Committee on was awarded by the Shareholder. However, we were Water Affairs and Environmental, the South Africa Local able to institute cost saving measures which enabled Government Association (SALGA) and the Gauteng, the Organisation to generate a profit, albeit lower than North West and Mpumalanga Provincial Legislatures. the previous year. We are confident that the cost saving Some excursions were undertaken to the Lesotho measures, coupled with the new tariff that has been Highlands Water Project (LHWP) as a way of creating awarded for the new financial year will enable us to better awareness among our stakeholders and to meet our operational costs and infrastructure investment engender within them a greater appreciation of the total imperatives going forward. cost of water provision from the source.
Rand Water Annual Report 2009–2010 It must be noted that in order to meet the capital R 3.3 billion will be funded through cash generated from expenditure requirements of the Organisation, operations, and the balance will be funded through a external funding will be required. In order to prepare combination of funding sources, including the new Rand the Organisation for this, we engaged with two Water Domestic Medium Term Note Programme (DMTN). internationally-acclaimed Credit Rating Agencies namely, Rand Water will utilise R 8.1 billion to refurbish its ageing Fitch Ratings and Standard & Poor’s and the results of the infrastructure, as well as to address the focus on Bulk rating exercise vindicate our financial strength. Sanitation over the next five years; and R 1.9 billion will Fitch Ratings maintained its view of Rand Water as be utilised to address Rand Water’s growth investments. follows: • Long term rating of “AA+(zaf)” with a stable outlook On the global front, Rand Water has continued to exert and itself as a force to be reckoned with in the area of bulk • Short term rating of “F1+ (zaf)”. water services provision. Rand Water’s Water Wise These ratings reflect a high level of implied Shareholder Education Team has been nominated in the School support which is in line with Fitch’s assessment of the Information Programme category of the International critical nature of the South African Water Sector. Water Association (IWA) Marketing and Communications Award for 2010. The purpose of the competition is to Standard & Poor’s ratings were as follows: enhance an integrated and sustainable view on water as • Local currency : A+ with negative outlook and the essential good; and to heighten awareness among • Foreign currency rating remained at “BBB+”. water utilities around the world of the ever-increasing Standard & Poor's rating evinces Rand Water’s currently importance of establishing professional and effective strong credit metrics which is supported by a net cash communication with beneficiaries of water services. Balance Sheet. While Rand Water has been undertaking various As Rand Water, we have instituted strong treasury initiatives to ensure that it is sustainable over the long management processes that enable us to effectively term, no formal reporting on these initiatives has quantify, manage and monitor the financial (liquidity been undertaken hitherto. In line with global trends risk, credit risk, investment and interest rate risk) and and in keeping with the spirit of the King III Code, operational risk that we face. the organisation has undertaken to commence formal reporting on its activities in this area. A Sustainability We are confident that on the basis of the ratings that Report will be issued for the year under review, Rand water has been able to maintain, we will be able highlighting our successes and challenges and our to secure funding in the open market to continue to strategy going forward. develop the infrastructure in to the future. These results would not have been achieved without A Funding Strategy and Plan which flows from the the dedication of all the staff at Rand Water. I would Group’s Strategy in respect of Infrastructure Capital therefore like to express my sincere gratitude to all the Expenditure was approved by the Board. The Strategy staff, my Management Team as well as the Board of and Plan will ensure that Rand Water continues to be a Rand Water for their support. We are also grateful to the sustainable bulk water services provider and maintains Shareholder for the guidance provided. its financial viability. Approval for the Funding Strategy and Plan has also been obtained from the Department of Water Affairs and Environment and National Treasury.
Rand Water’s investment programme over the next DKP SECHEMANE 5 years, amounts to R10 billion. Of this amount, CHIEF EXECUTIVE
Rand Water Annual Report 2009–2010 The Portfolio Integrating Committee (PIC)
Mr Percy Sechemane – Chief Executive
Portfolio Integrating Committee member as from: 1 September 2008
Academic qualifications: BCom, MBA
Mr Sipho Mosai – Chief Operating Officer
Portfolio Integrating Committee member as from: 1 April 2009
Academic qualifications:MSc, MBA
Responsibilities: • Bulk Water Services • Scientific Services • Strategic Asset Management • Strategic Customer Partnerships
Ms Matshidiso Nyembe – Chief Financial Officer
Portfolio Integrating Committee member as from: 18 May 2009
Academic qualifications: BCompt, BCom (Hon), CTA, CA (SA)
Responsibilities: • Group Finance • Project Finance • Employee Benefit Funds • Treasury
Rand Water Annual Report 2009–2010 10 Ms Fikile Sithole – Group Governance Executive
Portfolio Integrating Committee member as from: 1 September 2008
Academic qualifications: LLB, Higher Diploma in Labour Law, BA Law, Diploma in Corporate Governance, Board Leadership Programme (GIBS), Admitted Attorney of the High Court
Responsibilities: • Corporate Social Responsibility • Forensic Audit • Group Secretariat • Internal Audit
Mr Zvinaiye Manyere – Group Strategy Executive
Portfolio Integrating Committee member as from: 1 January 2006
Academic qualifications:BSc (Engineering), MSc (Structural Design)
Responsibilities: • Corporate Planning • Corporate Research and Development • Financial and Economic Planning • Legislation and Advocacy
Ms Wayida Mohamed – Strategic Human Capital Executive
Portfolio Integrating Committee member as from: 20 April 2009
Academic qualifications:BA (Hon), Dip Human Resources Management, Post Graduate Programme, Executive Leadership, Registered Skills Development Assessor and Moderator
Responsibilities: • Change Management • HR Administration • Compensation • Learning and Development • Employee Relations • Organisational Development and Design • Employee Wellbeing • Talent Management
Dr Fawcett Ngoatje – Group Shared Services Executive
Portfolio Integrating Committee member as from: 1 July 2008
Academic qualifications:BAEcon (Hon), Project Management, MDev, PhD
Responsibilities: • Risk Advisory Services • Legal Services • Corporate Communications • Logistic Services • IT and Knowledge Management • Supply Chain Management
11 Rand Water Annual Report 2009–2010 Corporate Governance
Rand Water is established in terms of the Water Services To this end, Rand Water initiated the following key Act No 108 of 1997 (“the Act”). The Government of developments: the Republic of South Africa, through the Department of Water and Environmental Affairs (DWEA) and duly • Review of its governance structures and frameworks represented by the Minister, is the sole shareholder of to align its business objectives with the requirements Rand Water. of the King III Report;
The relationship between Rand Water and the • Adopted the Code of Ethics and also continuously Shareholder is governed by the provisions of the Water promotes awareness through campaigns to Services Act. Rand Water operates within the framework all employees, thereby cultivating a culture of of a variety of legislations. The main objectives, the compliance and accountability. mandate and duties of Rand Water, and the powers of the Board of Rand Water are regulated by the Act. Rand Governance Structures Water upholds and promotes the principles of sound financial management as outlined in the Public Finance Board of Directors Management Act No 1 of 1999 (the PFMA) and it subscribes to the Protocol on Corporate Governance in Rand Water has a unitary board structure, which consists the Public Sector which mirrors King II Code of Corporate of a majority of non executive directors and an executive Governance, which has subsequently been superseded director. The position of the Chairperson and the Chief by the King III Report. Executive are separated and their duties are clearly segregated. The Chairperson of the Board is a non Compliance executive director.
Rand Water is fully committed to the highest standards The Board of Rand Water is appointed by the of integrity, professionalism, sound business principles Department of Water and Environmental Affairs, and practices of good corporate governance. Rand duly represented by the Minister, in accordance Water promotes ethical behaviour and through its systems with the provisions of the Water Services Act No 108 and processes, has given life to the ethical culture that of 1997. is cultivated across the organisation demonstrating its commitment to sound governance principles. Roles and Responsibilities of the Board
Key Governance Highlights The Board of Rand Water’s responsibilities are clearly defined in the Board Charter and within the powers The Board of Rand Water has adopted the conferred upon it. The Board’s primary responsibilities are recommendations of the King III Report and has made as follows: a commitment to embrace the principles, and the governance framework recommended therein, with the • Retaining full and effective control over the objective of enhancing the organisation’s governance organisation. practices and processes.
• Providing strategic direction to Rand Water. During the year under review, Rand Water has commenced with the implementation of the key • Fulfilling its role as the focal point of corporate governance requirements introduced and recommended governance and exercising leadership and in the King III Report. judgment in directing Rand Water so as to achieve sustainability for the organisation.
Rand Water Annual Report 2009–2010 12 • Setting the risk tolerance level in accordance with Board Meetings the adopted strategy, overseeing the identification During the year under review, the Board of Rand Water and evaluation of key risks, as well as the risk met as summarised in the table below: management process
Summary of Attendance of Board Meetings: 1 July 2009 • Monitoring and evaluating the implementation of to 30 June 2010 strategies, policies, management performance criteria and business plans, having regard to its own Total reporting and performance responsibilities to the Board Member Total Meetings Attended Executive Authority Ngubane JM † 7 5 Coovadia D 10 8 • Safeguarding a comprehensive system of policies Ellman MJ 10 7 and procedures and appropriate governance Hashatse MF 10 6 structures at management level, and taking the Magonare MB 10 7 necessary steps to ensure that there is a robust system Makhesha P # 5 1 of internal controls on the effectiveness of which Makibinyane L 10 9 regular assurance is received through risk centric Maziya S 10 7 internal audits Ndumo – Vilakazi P 10 8 Noxaka N 10 10 • Ensuring ethical behaviour and compliance with Nwedamutswu T 10 5 relevant laws and regulations, audit and accounting Otieno FAO 10 9 principles, and Rand Water’s internal governing Petlane MM 10 10 documents and Codes of Conduct Saloojee F 10 8 Tsheke M 10 10 • Continually monitoring the exercise of delegated Sechemane DKP 10 9 powers by management through understanding †End of term in office 2 April 2010 #Resigned 15 December 2009 the key performance areas and key performance
indicators of Rand Water, and considering reporting Subsidiaries against these Rand Water has established two subsidiaries namely, the Rand Water Foundation (a section 21 company) which • Defining levels of materiality, reserving specific is the social responsibility arm of Rand Water, and Rand powers to itself and delegating other matters, with the Water Services (Pty) Ltd, which fulfils other activities. Rand necessary written authority to management Water is the sole shareholder of the two companies.
• Regularly evaluating the economic, political, Board Committees social and legal issues, as well as other external developments that may influence or affect the The Board of Rand Water established several committees developments of Rand Water’s business or to assist it in discharging its duties and these are: the the interests of the Department of Water and Executive Committee, Audit Committee, Risk Committee, Environmental Affairs and, if necessary, obtaining Human Resources and Remuneration Committee, external expert advice. Capital Investment Committee and Treasury Committee. The Board of Rand Water and its committees are equitably represented in terms of their diverse skills and demographics. The Board has approved the Terms of Reference for each of the committees. This ensures the
13 Rand Water Annual Report 2009–2010 Corporate Governance (continued)
optimal discharge of their respective duties within the and the Shareholder. The Committee serves as an scope of the mandate conferred upon each committee. independent oversight and advisory body responsible for the financial reporting and financial information, Executive Committee risk management process, internal financial control and compliance thereto, internal and external audit, The Executive Committee was established to assist the performance monitoring and evaluation and legislative Board of Rand Water: and regulatory compliance.
• in co-ordinating the implementation of strategy; Summary of Attendance of Audit Committee Meetings: 1 July 2009 to 30 June 2010 • to take responsibility for the authorisation of capital expenditure; Total Board Member Total Meetings • to assist in terms of delegation given from time to Attended time; and Petlane MM 6 5 Hashatse M 6 3 • to assist the Board in monitoring the performance Coovadia D 6 6 of executive management in the achievement of the Makibinyane L 6 5 objectives of Rand Water. Ndumo – Vilakazi P 6 4 Noxaka N 6 6 The Executive Committee was subsequently dissolved by Ngubane JM † 4 1 the Board of Rand Water and all the responsibilities and Ellman MJ 6 3 duties which were performed by the Executive Committee †End of term in office 2 April 2010 are now performed by other subcommittees of the Board. Risk Committee
Summary of Attendance of Executive Committee The Risk Committee has been established by the Board Meetings: 1 July 2009 to 30 June 2010 of Rand Water to assist and support it in discharging its responsibilities and oversight role in respect of the risk
Total management and internal controls in accordance with Board Member Total Meetings Attended the risk management frameworks and enterprise-wide risk Petlane MM 5 4 management plan. Tsheke M 5 5 Coovadia D 5 5 Summary of Attendance of Risk Committee Meetings: Makibinyane L 5 5 1 July 2009 to 30 June 2010 Ndumo – Vilakazi P 5 3 Saloojee F 5 3 Total † 5 4 Board Member Total Meetings Ngubane JM Attended
†End of term in office 2 April 2010 Tsheke M 4 3 Hashatse FM 4 3
Audit Committee Magonare BM 4 3 Noxaka N 4 4 The Audit Committee was established by the Board of Otieno FAO 4 1 Rand Water to assist it with meeting its responsibilities Saloojee F 4 3 in compliance with section 51 of the PFMA and the National Treasury Regulations. The Committee has an independent role with accountability to both the Board
Rand Water Annual Report 2009–2010 14 Human Resources and Remuneration Committee Summary of Attendance of Capital Investment Committee Meetings: 1 July 2009 to 30 June 2010 The Human Resources and Remuneration Committee has been established to assist in overseeing the development Board Member Total Meetings Total Attended of remuneration policies for executive directors and Ellman MJ 6 5 the application thereof; to direct the administration of Tsheke M 6 2 the bursary scheme and to oversee the establishment Maziya NS 6 3 and implementation of human resources policies. The Noxaka N 6 5 Committee monitors and reviews the performance Otieno FAO 6 4 information provided by Rand Water against the Saloojee F 6 6 approved corporate business plan. The Committee provides the Board of Rand Water and the Shareholder, Treasury Committee as per the Shareholders Compact, with an authoritative and credible view of the performance of Rand Water. The Treasury Committee has been established by the Board of Rand Water: Summary of Attendance of Human Resources and Remuneration Committee Meetings: 1 July 2009 to • To oversee the operations of the treasury function 30 June 2010 • Assisting with the overall treasury strategy and monitoring the risks concomitant to the treasury Total Total Board Member Meetings Attended function
Petlane MM 5 5 Magonare M 5 5 • Oversees the development and implementation of Makhesha P # 3 0 investment, funding and liquidity strategies in line with Nwedamutswu T 5 2 Treasury Policies approved by Rand Water Otieno FAO 5 4 Saloojee F 5 5 • The Committee oversees the development and Ngubane JM † 4 2 implementation of policies and procedures with
†End of term in office 2 April 2010 regards to treasury activities and transactions #Resigned 15 December 2009 • Ensure compliance with financial regulations and Capital Investment Committee that the activities of the treasury function are in compliance with the Water Services Act, Public The Capital Investment Committee has been established Finance Management Act and sound corporate by the Board of Rand Water (“the Board”) to optimally governance control the major capital expenditure that falls within the scope of the “Primary Activities” and “Other Activities” as Summary of Attendance of Treasury Committee Meetings: defined in the Water Services Act 108 of 1997. 1 July 2009 to 30 June 2010
The Committee assists the Board to comply with Board Member Total Meetings Total Attended all directives from the Shareholder with regard to Ellman MJ 8 7 Integrated Water Resource Management and to oversee Makibinyane L 8 8 the management and administration of the capital Maziya S 8 5 expenditure budget. Saloojee F 8 4 Ndumo-Vilakazi P 8 4 Coovadia D 8 8
15 Rand Water Annual Report 2009–2010 Corporate Governance (continued)
The Office of the Group Company Secretary Rand Water has a formal induction programme and during the year under review, all the board members A new Group Company Secretary, Ms Pertunia Mohlabi, attended several workshops and courses to familiarise was appointed with effect from 7 September 2009. themselves with Rand Water’s operations, its business environment, applicable legislation as well as the The Group Company Secretary provides the Board with King III Report. guidance on all governance issues and ensures that the Board functions effectively and that procedures, rules and Delegation of Authority regulations are fully observed. The office of the Group Company Secretary also assists with the implementation Rand Water has adopted a comprehensive delegation of and monitoring of good business governance practices authority framework in accordance with section 56 of the throughout the organisation, and compliance to Public Finance Management Act of 1999 (PFMA), which applicable legislation, policies, rules and regulations. clarifies the various levels of materiality and assists with The office of the Group Company Secretary forms part the limits of authorisations throughout the organisation. of the accountability framework of Rand Water which The Board of Rand Water has delegated the powers focuses on adding value to the business by leveraging and authority entrusted to it to management, to perform the value created by conformance. any of the duties assigned to it in terms of the PFMA. The delegation does not in any way divest the Board’s Induction and Training responsibilities, authority and duties.
It is the responsibility of the Group Company Secretary Code of Ethics to ensure that newly appointed directors are inducted, and that the organisation has an induction programme Rand Water has a strategic objective to engender for the purposes of their training and development with a culture of integrity, to foster mutual respect and trust regards to their roles and responsibilities, their fiduciary amongst the employees and the organisation with duties, applicable legislation and regulations. In addition regard to any business dealings conducted on its behalf. to that, the Group Company Secretary‘s responsibility is The Rand Water Code of Ethics applies to the Board to update members of the Board of Rand Water on the members, senior management, all employees, Rand relevant laws, regulations and any legislative changes Water’s stakeholders and the public in general. This from time to time. ensures high standards of ethical behavior in dealing with all stakeholders. The Code of Ethics supports Rand Water’s vision and the values that represent the organisation.
Rand Water Annual Report 2009–2010 16 Enterprise Wide Risk Management (EWRM)
During the year under review, the Board of Rand Water Systems), ISO 9001 (Quality Management System) contributed significantly to the process of Enterprise Wide and OHSAS 18001 (Occupational Health & Safety Risk Management (EWRM) by consistently overseeing Management System). These have benefited Rand the implementation and monitoring of the process of risk Water with regards to compliance with legislation, management, and its integration into daily activities of most notably the environmental legislation, reduction the organisation. of ill-health and workplace injuries.
The EWRM at Rand Water seeks to identify, evaluate, In accordance with the Certification Body’s requirements, monitor and report all actual and potential risks at the Rand Water’s SHEQ Management System underwent a earliest possible time. This exercise remains embedded re-certification by a third party (SABS) audit and retained throughout the organisation via the risk assessments that its certifications with distinction. These three-yearly are done within the organisation, using the established re-certification audits have re-affirmed the high maturity as well as the Board approved evaluation criteria. level of Rand Water’s SHEQ Management Systems and has enhanced the Combined Assurance by the Board. During the year under review, Rand Water continued to Internal and external surveillance and legal audits are update its risk management processes. Controls were put continuously undertaken as per dedicated schedules to in place to mitigate risks. constantly monitor the effectiveness of the systems, and to ensure compliance with all legal and other requirements Rand Water’s Top 13 Strategic Risks for the financial year applicable to the organisation. to 30 June 2010 comprised: Environmental Management – ISO 14001:2004 • Conditions of existing infrastructure In September 2009, following extensive internal • Availability, cost and tenure of funds surveillance and legal audits, Rand Water was able to • Quality of potable water maintain its ISO 14001:2004 certification for a further • Critical skills attraction and retention three years to September 2012. In so doing, Rand • Supply of bulk water services Water again demonstrated its ability to implement its • Contractual obligations commitments to sustainable development and pollution • Business efficiency prevention, and its adherence to legal requirements. • Alternative revenue streams • Achievement of stakeholder expectation In line with the fundamental principle of continual • Application of corporate governance improvement, entrenched in the ISO 14001:2004 • Quality and quantity of raw water standard, Rand Water has also embarked on strategies • Availability of goods and services to improve its environmental monitoring and reporting • Alignment between strategic and operational objectives as well as its compliance to applicable legislation. After a gap analysis was completed, the key problem The risk mitigation plans and controls are continuously areas of Environmental Impact Assessments (EIAs) monitored by Rand Water’s Corporate Risk Committee and Water Use Licenses were identified. Rand Water (CRC) and these are then assessed by the internal continues to engage with the Department of Water audit function before consideration by the Board Risk and Environmental Affairs to resolve these challenges. Committee.
A procedure for the management and execution of Occupational Health, Safety, Environmental EIAs was developed by a task team of specialists from and Quality Management Systems (SHEQ) Rand Water’s Risk Advisory Services, Strategic Asset Rand Water maintained the following ISO standards Management, Environmental Management Services and namely, ISO 14001 (Environmental Management Business Process Mapping departments. Workshops on
17 Rand Water Annual Report 2009–2010 Enterprise Wide Risk Management (continued)
EIAs and Water Use Licenses were also conducted in Quality Management Systems (QMS) the organisation, where legislative requirements and best – ISO 9001:2008 practices were discussed, and implementation guidelines Rand Water holds bi-annual SABS quality management were consequently developed for the organisation. audits which continue to confirm the high maturity level of Quality Management Systems. In these SABS Rand Water also adheres to monitoring of environ- audits, Rand Water’s QMS was found to continuously mental aspects that may pose a risk to the environment. comply with all ISO 9001:2008 requirements. Currently, Rand Water is monitoring dust fall-out at some The re-certification process has already commenced, of its sites, as well as waste generation, in particular and the first sets of SABS audits have shown excellent hazardous waste, throughout the organisation. compliance to the updated ISO 9001:2008.
Occupational Health and Safety Contractor Management – OHSAS 18001:2007 During the year under review, all Rand Water sites Rand Water has been successfully certified in terms of the continued to focus on contractor management with updated version of OHSAS 18001:2007. The updates regards to compliance to the Construction Regulations include, but are not limited to, the requirement that the as framed under the Occupational Health and Safety organisation takes human behavior capabilities into account (OHS Act 85 of 1993). A successful campaign by Rand when assessing hazards and risks in the workplace. Water’s Risk Advisory departments to have all contractors comply with the Construction Regulations was achieved. Disabling Injury Frequency Rate (DIFR) reduced from This included all small and emerging, medium and large 0.57 to 0.53 during the year under review: contractors. Compliance to the OHS Act 85 of 1993, improved especially amongst the small and emerging Year Actual DIFR Target DIFR contractors. A number of SHE workshops facilitated by 2007/08 0,54 0,8 2008/09 0,57** 0,8 Rand Water’s Risk department were held to increase SHE 2009/2010 0.53 0.8 awareness among the contractors.
**Human behaviour, and tripping and falling from steps were the main cause of the increase in disabling injury frequency. Site Business Continuity Plans
During the year under review, all Rand Water’s major pumping stations’ Business Continuity Plans were This was mainly due to a number of factors including, but reviewed. The review process identified no specific not limited to, the following elements of the Occupational areas of serious concern. Nonetheless, all the information Health and Safety programme: contained in the Business Continuity Plans were updated.
• Regular workplace Health and Safety inspections by Disaster Simulation Exercises Health and Safety Representatives A total of eight disaster simulation exercises were conducted during the year under review in conjunction • Health and Safety awareness programmes with the appropriate local authority emergency services, i.e., Disaster Management Centres, the South African • Effective reporting; corrective and Police Services, Rand Water operational sites and other preventative system stakeholders. Detailed action plans including timeframes have been compiled for all deviations and are being Programmes on SHE awareness including induction and addressed. safety awareness posters have been intensified.
Rand Water Annual Report 2009–2010 18 External Audit at the Board, the Audit sub-committee and Portfolio Integrating Committee (PIC) meetings. External auditors have been appointed to provide assurance and credibility to the organisation’s existing Rand Water’s Internal Audit unit has focused on the Assurance Framework in terms of the Public Finance following key issues, which are championed by the Management Act (PFMA) and the Water Services Act. Board and the Portfolio Integrating Committee (PIC), which insisted on a more tangible demonstration of the Internal Audit performance of Rand Water’s Internal Audit unit: In recent years, internal audit processes have internationally undergone significant changes with regard • Focusing on client management, to include to how these audits should be undertaken. Most notably, knowledge sharing and fostering partnerships with there has been a visible move from process-based audits line managers, and returning the ownership of to ones that are risk-based, while also embracing the key controls to management. principles of governance and risk management. • Re-directing its processes from detection to prevention; Rand Water’s Internal Audit unit is considered critical and identifying solutions to challenges. to the organisation and has an independent appraisal function established to evaluate the adequacy and • Focusing on a risk-based approach with its audit effectiveness of its controls, disciplines, systems processes. and procedures in order to reduce business risks to acceptable and cost effective levels and to ensure the • Adding value to Rand Water’s organisational achievement of the organisation’s objectives. objectives, strategies, risks and corporate governance priorities. The head of Rand Water’s Internal Audit unit reports functionally to the Audit Committee, and administratively • Greater emphasis on technology, i.e. automated to the Group Governance Executive, and also attends work papers, computer assisted audit software, etc. the meetings of the Board’s Audit Committee. He also attends the meetings of the PIC by invitation. To deliver • The adoption of a risk-based plan and the importance value added service at Rand Water, the Internal Audit of cooperation with other assurance providers. unit has found it imperative to emphasise the importance of differentiators rather than focusing exclusively on Rand Water’s Internal Audit unit has undertaken the qualifiers. following processes amid the evolving enterprise risks and recession to add strategic value to the organisation: Qualifiersare the standard audit processes internal audit must accomplish daily. These include assurance work, • Linking the organisation’s strategic objectives and audit reports, work paper documentation and training value-drivers to those that fall within the scope of and development. Differentiators push the internal audit internal audit. team to strive for excellence and underscore its ability to deliver distinctive value to the organisation. With this is in • Responding to stakeholders’ expectations of internal mind, it is not surprising that people play the most critical audit, and the priorities of the Board, the Audit role in Rand Water’s internal audit processes. Committee and the Portfolio Integrating Committee (PIC). Rand Water has a formal charter in place to regulate the functions of the Internal Audit unit, as well as a detailed • Identifying inefficient processes and eliminating audit plan based on risk assessments and issues raised routine low-value audits.
19 Rand Water Annual Report 2009–2010 • Regularly reviewing the updated internal audit plan potentially face. Since its implementation, Rand Water together with the implementation of cost-reduction has observed a significant decrease in the number of measures with key stakeholders to further improve contracts challenged by interested and affected support for internal audit processes. Third Parties.
• Maintaining the alignment with the changing risk Supply Chain Management profile of Rand Water. Rand Water considers transformation as an essential element of its business that is integral to the development • Attracting and retaining internal audit human resource of South Africa. talent and increasing the business and operational knowledge of staff. Rand Water is committed to addressing the imbalances of the past, not only with regard to its human resource • Leveraging technology to optimise audit operations. processes but also in its commercial equity priorities. Legal Services The organisation’s Procurement Policy is based on the Rand Water’s strategic risk analysis for the year under Broad Based Black Economic Empowerment Act and review identified “Contractual Performance” as the sixth the Department of Trade and Industry’s (DTI) Codes of most strategic risk of the organisation. Rand Water has Good Practice. implemented a Contract Management System to streamline previously fragmented contract management processes. The policy is aimed at the inclusion of previously disadvantaged individuals onto the supplier base for Essentially, the Contract Management System allows goods and services. The policy also allows for the for the provision of contract governance, execution setting and reviewing of targets to ensure that progress management, and performance monitoring while at the is made towards the achievement of the organisation’s same time improving efficiencies. BEE targets.
The System also allows for: Rand Water’s Procurement Policy strives to:
• The central storage of contracts and a controlled user • Provide an appropriate acquisition process for the access to documents online. procurement of all goods and services. • The establishment of triggers as notification alerts for • Ensure that the procurement process is fair, the appropriate action requested. transparent, consistent, equitable, competitive and • A significant reduction in the usage of paper. cost effective. • Reduction in contract creation times. • Maintain the highest ethical standards. • Promote the objectives of the Commercial All active, expired or terminated contracts entered into Equity policy. by Rand Water as well as any additional information • Ensure that the procurement processes comply with pertaining to the contracts are stored on the Contract the legal framework that governs Rand Water. Management System. During the year under review, Rand Water set a BEE The standardised templates on the Contract Management target of 75-percent, with a stretch to 80-percent. System reduce any legal risk that Rand Water could It attained 81.12-percent.
Rand Water Annual Report 2009–2010 20 Purification and Pumping of Water
Rand Water has two water purification plants, namely the After completion of the purification process at both of Zuikerbosch and Vereeniging Purification and Pumping these plants, the water is pumped at an elevation of Stations; and four booster pump stations, namely: approximately 200 meters to the level of the booster Zwartkopjes, Palmiet, Eikenhof and Mapleton. stations at Zwartkopjes, Palmiet, Eikenhof and Mapleton.
Vereeniging Purification and Pumping Station Zwartkopjes Pumping Station
The Vereeniging Purification and Pumping Station was The Zwartkopjes Pumping Station is Rand Water’s Rand Water’s first river intake pumping site. Situated 37 oldest booster pumping station, first established in kilometers from the Vaal River Barrage, it was constructed 1907 on the Zwartkopjes Farm in the south of and put into operation in the early 1920s. The station Johannesburg. Zwartkopjes, together with its satellite consists of five purification systems and associated pumping stations at Palmiet, Eikenhof and Mapleton, pumping plants which allows for an efficient purification disinfect and re-pump potable water received from the process. Vereeniging and Zuikerbosch Purification and Pumping Stations. The water from these stations is then pumped Zuikerbosch Purification and Pumping Station to Rand Water’s strategically located reservoirs.
First commissioned into operation in 1954, the Reliability of Water Supply Zuikerbosch Purification and Pumping Station is one of the largest water purification and pumping plants of its Adjacent to Rand Water’s Zwartkopjes Pumping Station kind in the southern hemisphere. Consisting of four water is its distribution unit, Central Depot, which consists purification systems and associated pumping plants, of the central water distribution network, connected to Zuikerbosch is situated on the banks of the Vaal River, 13 district networks located strategically throughout and is approximately 30 kilometers downstream of the the area of supply. The pipeline network is efficiently Vaal Dam. managed and controlled to ensure reliability of the supply of high quality potable water.
21 Rand Water Annual Report 2009–2010 The following diagram presents a schematic flow chart of the process flow from extraction to the end consumer:
Stabilisation Raw Water 1 2 Raw water is abstracted The water flows into from the Vaal Dam via Coagulation carbonation bays, a canal and gravity where it is stabilised Suspended particles pipeline and by pumping Flocculators by bubbling carbon are removed from the from the Vaal River dioxide gas, obtained raw water through the Barrage Reservoirs at from lime-burning kilns, addition of sodium Lethabo, Zuikerbosch and through the water. silicate and slaked lime. Vereeniging. The raw water now undergoes a stringent purification Flocculants process. The suspended particles clump together to form heavier visible particles called flocculants. Carbonation Bay
Activated Silica
Primary disinfection 6 Filtration The water leaving the purification 7 The water passes into the filter works is disinfected with chlorine houses, where it flows through to kill any remaining micro- rapid gravity sand filter beds. organisms, bacteria and viruses. The remaining suspended particles are removed at this stage.
Chlorine
Filter House
Average daily water total pumped during the year under review:
Zwartkopjes 486 Ml /d Palmiet 1187 Ml/d Eikenhof 1071 Ml/d Mapleton 592 Ml/d
Rand Water Annual Report 2009–2010 22 3 4 5
During purification, 600 Sedimentation Raw limestone is fired in a kiln. to 1 000 tons of fine silt The burnt limestone is crushed is removed from the river The flocculants settle and slaked with water to produce water daily and 9 000 in specially designed slaked lime or calcium hydroxide. tons of slaked lime is used tanks, also engineered in the purification process to reduce sludge. each month.
Lime Slaking Sedimentation Tank Lime Kilns
Sludge Disposal Site
8
Online Laboratories
The online laboratories measure pH, conductivity, Online Labs Chlorine and Ammonia Potable Water Pumps turbidity and chlorine on a continuous basis on all outgoing mains to ensure compliance to SANS 241. The values Secondary disinfection are displayed on the Chlorine and ammonia are added at 9 instrument itself but also Balancing Reservoir the booster pumping station to form on a SCADA system, monochloramine, which protects the water where an operator can against bacteria for up to eight days. monitor the parameters on computer in the control room. All data is logged and trending can be done on the parameters.
Booster Pumping Station
Consumer
23 Rand Water Annual Report 2009–2010 Purification and Pumping of Water (continued)
During the year under review, Rand Water was able Energy Consumption for the Year under review to continue to meet the demands of its customers. The Energy Efficiency Strategy of the government set Rand Water’s standby capacity and contingency the national target for the reduction of energy at 12- planning systems ensure that the organisation is in a percent. The national target for the reduction of energy to position to consistently meet its water supply obligations be achieved by 2015 is to delineate the growth of energy. in the event of a breakdown, or the technical failure The Energy Demand reduction graph indicates that Rand of components within its infrastructure. Rand Water’s Water exceeded the set target during 2006 already. standby and rapid response teams can be deployed to The Energy Demand reduction graph indicates that the manage such circumstances. Rand Water’s confidence actual energy consumption during 2008 increased by in these measures is evidenced by the fact that during 1,2-percent. The increase in energy consumption is due the year under review, there was no disruption in the to the increase in pumping overheads in that numerous organisation’s provision of high quality potable water pipelines were taken out of service for refurbishment. throughout its area of supply.
Energy Demand 3 000 000 000
2 500 000 000
2 000 000 000
1 500 000 000
1 000 000 000
Energy Use in kWh Baseline
500 000 000 Actual
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Years
Efficiency Measures
Energy Consumption 2010 2009 2008 2007 2006 2005 Coal Used t/Ml PHASED OUT 0.410 0.900 Electricity Used kWh/Ml 657 643 654 662 660 653 (Average per Station) Cost of Energy Cost of Coal R/t PHASED OUT 184.1 173.0 Cost of Electricity c/kWh 37.9 27.3 20.1 18.3 17.7 17.7 Energy Efficiencies ZUIKERBOSCH 71.6% 71.6% 71.4% 77.4% 84.3% 84.9% VEREENIGING: Electrical 68.5% 65.4% 65.5% 73.0% 67.4% 56.1% VEREENIGING: Steam PHASED OUT 9.3% 9.0% ZWARTKOPJES: Electrical 82.3% 83.8% 79.9% 72.3% 79.0% 72.4% ZWARTKOPJES: Steam PHASED OUT 8.4% PALMIET 78.5% 79.9% 81.7% 82.7% 82.9% 81.6% EIKENHOF 83.4% 83.3% 82.6% 83.7% 79.9% 81.4% MAPLETON 78.5% 78.8% 75.3% 72.6% 73.6% 71.5%
Energy Consumption 2009 2008 2007 2006 2005 Coal Used t 35 595 152 640 Electricity Used kWh 1 788 714 933 1 812 765 747 1 731 768 733 1 707 733 162 1 569 610 751 1 503 183 518
Rand Water Annual Report 2009–2010 24 Strategic Asset Management (SAM)
Rand Water’s infrastructure is a multi-billion rand asset that Infrastructure needs to be managed and leveraged in order to extract Rand Water operates a network of 3 500 km of maximum value, and has to be monitored to avoid the pipelines, including two large combined pumping risk of failure. With 70-percent of the organisation’s and purification stations (situated at Vereeniging infrastructure expenditure work taking place through and Zuikerbosch), four booster pumping stations augmentation to meet the growth in demand; other (Zwartkopjes, Palmiet, Mapleton and Eikenhof) and a projects are also initiated to reduce operating costs, number of enclosed reservoirs. Two-thirds of the value improve treatment processes, enhance plant safety, of this infrastructure, estimated to be worth R60-billion as well as to extend the life of its existing assets. at replacement value, is located within Rand Water’s pipelines infrastructure. Rand Water estimates demand in growth to continue, but with a long term decline in annual growth rates. Planning The age and replacement value of existing assets will also continue to increase. In response, Rand Water After decades of expansion to meet the challenge of has an asset management division to co-ordinate infrastructural development and population growth, and optimise its existing asset management streams. Rand Water’s current infrastructure capacity is more than Best practice will continue to be confirmed for design, adequate to meet its customers until 2012. This is, in operation, maintenance, rehabilitation and the disposal itself, remarkable considering that in 1965, Rand Water of each asset category, in order to support the required was supplying just 1 000 Megalitres a day (Ml/d); that levels of service at a minimum lifecycle cost. The demand is expected to increase four-fold to 4 000 Ml/d management of the existing assets will therefore be by 2012. planned in conjunction with augmentation to meet demand growth. Rand Water is now ensuring that it will be ready for the demands of 2020 and beyond, by focusing on
25 Rand Water Annual Report 2009–2010 Strategic Asset Management (continued)
Rand Water plans to spend R 8 billion in the next five years on the upgrading and refurbishing of its water supply infrastructure. Of this, 70-percent is allocated for augmentation schemes, with the remaining being allocated for renovations and the upgrades of its existing infrastructure.
Pipeline renovation
Less than 10-percent of Rand Water’s 3 500-km pipeline network is constructed from concrete, the balance is manufactured from steel. Over the next five years, Rand Water will renovate or replace all its concrete pipelines – about 200 km – with steel pipes where the condition is not acceptable in terms of risk. Thereafter, an ongoing infrastructure refurbishment and development. repetitive condition assessment will be carried out with The organisation works on a 20-year planning the exercise repeated, as necessary. The latter are more horison, driven mainly by projections and the forecasts suitable than concrete, as steel pipelines tend to develop of future water consumer needs. This involves extensive leaks, rather than rupture. Concrete is more susceptible research and the analysis of trends and usage patterns, to rupturing, and thus potentially causing damage to both and through the engagement with various stakeholders people and property. on their expectations. A percentage of Rand Water’s pipelines is in the region Capital expenditure is provided for the development of of 70 years in age, with the overall majority between new infrastructure, and the refurbishing and upgrading 15 and 50 years old. A programme of refurbishment, of existing infrastructure. Project approvals incorporate renovation and replacement is therefore critical. numerous areas, including pipeline links to reservoirs, With this in mind, in 2005, Rand Water commissioned pumping stations and purification works. Rand Water Services (Pty) Ltd to conduct an aerial survey of its pipeline network through the use of thermal remote By maintaining and expanding its infrastructure, Rand scanning technology. Thermal remote scanning detects Water is thus securing and sustaining water supply with leaks in large diameter pipes, allowing for early repairs, regards to quality and quantity – the core of its business. and a reduction in water loss.
Capital Works Projects Including Moveable Assets (2009-2014) 1 800 1 600 1 400 1 200 1 000 800 600
R’million 400 200 0 June 10 June 11 June 12 June 13 June 14 June 15 Actual Planned Planned Planned Planned Planned Year Ending June
Rand Water Annual Report 2009–2010 26 During the aerial survey, digital seamless maps are produced, and these are geographically modified for use in provincial or local government Geographic Information Systems (GIS). High-resolution infrared images are produced together with a high definition video output linked with Global Positioning System (GPS) information.
Specific Pipeline Renovation Projects
The phased reconditioning of the 1800 mm diameter O2 pipeline is an ongoing project since its commencement in the previous financial year. The 32km long pipeline, which runs from Alberton to Kempton Park, has taken two years to re-condition, largely due to the length of the pipeline and the need to avoid operational disruption, particularly during peak demand periods. The project involves inserting steel lining into five kilometres of the O2 pipeline, as well as the fixing and renovating of its joints and valve chambers. Scheme. This also includes the Kungwini bulk water supply services in the Bronkhorstspruit, Ekangala and Implementation of pipeline from Bloemendal Ekandustria areas. pumping station to Delmas
In October 2008, Rand Water, together with the Rand Water’s involvement with the short term support Department of Water and Environmental Affairs, intervention has positively impacted the following the Mpumalanga Department for Provincial and aspects of bulk potable water services provision: Local Government, the Delmas Local Municipality (now the Victor Khanye Local Municipality) entered • Water quality into an agreement on this 34km project. In terms of • Water supply management the agreement, Rand Water was appointed as the • Equitable distribution to cross-border communities implementing agent, to construct a 500mm diameter water pipeline from its Bloemendal pumping station to The Department of Water and Environmental Affairs the Municipality. Rand Water will continue to operate has extended the appointment of Rand Water, with the and maintain the water pipeline after its construction. additional responsibility of providing services to the entire The Environmental Impact Assessment (EIA), servitudes Western Highveld Region. processes and the design are currently underway. It is anticipated that this project will be commissioned in Capital Works and Capital Projects November 2012. During the year under review, Rand Water’s actual capital expenditure in the augmentation and Western Highveld Region rehabilitation of infrastructure and assets amounted Rand Water was appointed as the implementing agent to R934.7 million. Of this, R887.6 million was for for the Mpumalanga Western Highveld Region by infrastructure under Independent Capital Projects; and Department of Water and Environmental Affairs. Rand R46.3 million for moveable assets and R0.8 million Water’s engagement is for the management, operation for land and rights. The overall expenditure was R934.7 and maintenance of the water supply services in the million against an overall budget of R1 000 million, southern part of the Western Highveld Water Supply equaling 93-percent of the capital expenditure.
27 Rand Water Annual Report 2009–2010 Strategic Asset Management (continued)
Table 1: Rand Water Capital Expenditure at 30 June 2010
Budget Category Budget Actual Expenditure Variance Actual against Budget
R R R %
Independent Capital Projects 938,594,762 887,632,202 (50,962,560) 95%
Supplementary Budgets: Moveable Assets 59,286,419 46,324,460 (12,961,959) 78%
Land and Rights 2,118,819 773,297 (1,345,522) 36%
TOTAL 1,000,000,000 934,729,959 (65,270,041) 93%
The value of approved work to 30 June 2010 under the Mnandi and other growth areas between Midrand and Independent Capital Projects budget amounted to Pretoria, and it will also extend the regional bulk supply R5 585 million of which the outstanding value of to areas around the Hartbeespoort Dam. approved work in progress amounts to R1 897 million. The work includes numerous projects necessary to ensure Installation of the first portions of the scheme (H33, H34 that Rand Water is able to meet the needs of its consumers pipelines) is complete, and it is already assisting with throughout its area of supply in the most efficient and cost supply to the Diepsloot supply zone for Johannesburg effective manner. Overall, these projects range in value Water. The system extension along a new route towards from R200 000 to over R600 million. Hartbeespoort Dam (H35 pipeline) is currently in progress.
Major Capital Projects Vlakfontein Reservoir to Mamelodi pipeline augmentation Expenditure was spent on more than 300 projects during the year under review. However, the top five projects This project strengthens an existing route, supplying accounted for more than one third of total capital under gravity from Vlakfontein Reservoir, north of Benoni, expenditure. These five projects involve augmentation, through to eastern and central areas of the Tshwane upgrading and extension of pipeline routes, emphasising Metropolitan Municipality. In addition to growth in the importance and value of pipelines, as a proportion of existing areas of supply, the pipeline supports supply to Rand Water’s total infrastructure. an extended area of service, including the Mpumalanga Western Highveld Region. Brakfontein to Hartbeespoort Dam Scheme The installation of the first leg, a 1500 mm diameter This project will initially strengthen the supply to Diepsloot pipeline from the Vlakfontein Reservoir to the Rietvlei and environs. Subsequent stages will include supply for Nature Reserve, south-east of Pretoria, is in progress. This leg supplies growth along the route, and terminates Below is a table outlining the full scheme: at the point of supply to the major Garsfontein Reservoir
Pipeline Section Length Diameter Pipeline Id zone at the Tshwane Metropolitan Municipality. Brakfontein Reservoir to the 8 km 1400 mm H34 The extension to the Mamelodi termination is at present Pretoriusrand Reservoir Site in the planning phase, and will be informed by growth Pretoriusrand Reservoir Site 3 km 1000 mm H35 to Mnandi Reservoir H35 in demand from areas in the east of Tshwane, as well Pipeline as in the expanded area of service. Mnandi Reservoir to H35 17 km 1000 mm H35 Pipeline (near Pelindaba) BG3 raw water pipeline augmentation H36 Pipeline to 19km 800/600 mm H36 Hartebeespoort Dam This 3500 mm diameter pipeline increases the capacity Pretoriusrand to Diepsloot 6 km 600 mm H33 Reservoir of the system supplying raw water under gravity from the
Rand Water Annual Report 2009–2010 28 Vaal Dam to the Zuikerbosch Purification and Pumping Station. The pipeline runs parallel to Rand Water’s existing 3500 mm diameter BG2 pipeline. Fabrication of the new pipeline has commenced, and installation is scheduled for completion by 2012.
The new pipeline will be laid between the BG2 and the Vaal River. A large portion of the excavation is in rock, which requires blasting, close to the existing line. Sections of the line are also close to the river bank, which will necessitate continuous pumping to remove water from the trench. Installing such a large pipeline under these conditions will be a huge engineering feat, when the pipeline is still in an acceptable condition; and careful planning, monitoring and control will be it is then refurbished and can be used in a relatively low needed. capacity part of the network, at a substantial savings in comparison to the purchase of a new pipeline. H14 Lyttelton to Rosslyn pipeline: partial deviation and augmentation Weltevredenpark 100Ml Reservoir – northwest of Johannesburg A portion of Rand Water’s pipeline network runs over dolomite ground conditions, which can affect the This R130 million project is underway and is expected infrastructure mainly due to the formation of sink holes. to be complete during the 2009/10 financial year. In a worst case scnario, such as that which occurs along The construction of the reservoir, inlet structure and site the eastern portion of the H14 pipeline, sink hole activity pipework is complete, waterproofing, sterilisation and can force the relocation of affected pipelines. testing are to follow. Commissioning and handing over is expected during 2010. The H14 pipeline is part of a system that supplies municipal reservoirs in central Pretoria. The eastern Installation of Cathodic Protection System on the portion of the line is being re-routed and increased in Rand Water pipeline network capacity. It will run closer to the municipal reservoirs, The Rand Water pipeline network is exposed to corrosion allowing portions of the municipal pipework, also from stray water current sources, corrosive soils, and affected by the dolomitic activity, to be de-commissioned. microbiological corrosion, this can result in metal loss and potentially threaten the integrity of the pipeline network. Upgrade of N7, N8 pipelines from Secunda It is therefore necessary that corrosion mitigation to Bethal measures be in place for the prevention of corrosion. This eastward leg of Rand Water’s infrastructure runs into Mpumalanga Province. The portion from Secunda to the The implementation of Carthodic Protection (CP) System termination at Bethal was acquired from the municipality, is per the geographical regions of the pipeline network and contains small diameter asbestos cement pipes. and the pumping stations. Cathodic Protection and These are being replaced with steel pipes to increase Corrosive surveys have been completed throughout capacity and improve reliability. the entire Rand Water pipeline network as well as the pumping stations. The Installation of CP at Zwartkopjes, An interesting feature is that much of the pipeline Zuikerbosch and Vereeniging and in the regions is in is recovered from elsewhere in the network, having progress, and the anticipated completion date for the become too small for the current need. This occurs entire Rand Water network is scheduled for 2014.
29 Rand Water Annual Report 2009–2010 Strategic Asset Management (continued)
Online Labs at various sites A meeting was held between Rand Water Services (Pty) Ltd and other stakeholders within Rand Water to The purpose of Rand Water’s Online Laboratory project discuss the development, management, protection, is to implement the 20 new laboratories that will provide and commercialisation of all intellectual property that real time, reliable and accurate information with regards resides in Rand Water. The mapping and assessing to the various water quality parameters at Rand Water’s of Rand Water’s intangible assets through a research purification and primary booster sites. Such information is and development audit is necessary that will review to be used by Rand Water’s operational staff to monitor people, facilities and budgets. and control the various chemical dosing processes, and to ensure that a high level of water quality is maintained. • Research and development is undertaken by Rand The total cost of the project is projected at approximately Water, as well as using external agencies including R110 million. universities, the Water Research Commission (WRC), and suitably qualified consultants and contractors. Hydro-electric power generation Rand Water also funds two Chairs of Water Following requests by Eskom for proposals, Rand Water Utilisation; one at the University of Johannesburg, has undertaken a detailed study of the potential for the other is based at the Tshwane University generating power at four sites within its bulk supply of Technology. Rand Water continues to retain network. The results of this study were presented in on-going projects with both universities. Typical 2009, and a decision was taken at that time to defer the pipeline related projects are those dealing with leaks, proposal. The study concluded that capital expenditure of friction factors, bio-films, detection of air pockets, R400 million would be required to utilise the generating performance of epoxy and polyurethane linings, potential of these sites. It was indicated that the project in-line filters for bitumen particles etc. This work would be financially positive over time, using the tariff is dependent upon suitable staff or students and scale proposed by Eskom. will need to be co-ordinated more effectively. Rand Water requires an organisational home, and An amount of R400 million has now been included in custodian for technical research and development Rand Water’s five year investment forecast, beginning and this is being considered in the thrust for growth, in 2011/12, to allow for the finalisation of institutional operational integrity, and best-fit technology. methodology and agreements with Eskom and other relevant parties. • The pipeline renovation programme is generating a continuous need for research and development with Pipeline Research and Development innovative methods of evaluating pipeline conditions, and advanced techniques and materials are being Rand Water’s pipeline research and development used to repair or replace the old pipelines. One focus is in three main areas, i.e. the development of project which is funded by the Water Research Intellectual Property (IP) guidelines and policies; the co- Commission (WRC) involves the use of grouted ordination of internal and external research work; and polyethylene liners to seal leaks in old steel pipelines. the development and application of new processes and materials for pipelines. Pipelines thus account for the • The new 3.5m diameter Vaal Dam – Zoekfontein major part of Rand Water’s capital budget expenditure. pipeline has been designed using the findings from the research work conducted at Brakfontein Reservoir Examples from each of these three areas are as follows; in 2001 for the proposed Clarens – Johannesburg pipeline. It has thus been possible to reduce the wall • Rand Water requires a comprehensive intellectual thickness of the pipeline from 11.5mm to 10mm, property policy and those agreements with third party resulting in a saving of about R10 million in steel research and development providers are necessary. pipe supply.
Rand Water Annual Report 2009–2010 30 Scientific Services
During the year under review, Rand Water again The deterioration of raw water resources has also placed a high premium on the quality of its product and received attention, and on-line monitoring devices have provided water that met both the national drinking water been installed at key points within the catchments from standards (SANS 241 – Table xxx) as well as the World which Rand Water derives its drinking water to provide Health Organisation’s non organic drinking water quality real time information. In order to remain abreast of guidelines (Table yyy). activities that may impact our source water quality, Rand Water also participates in all the appropriate To ensure that it sustains its performance Rand Water catchment and national forums, and it lobbies for not only relies on compliance monitoring, but has its interest where water quality is compromised. implemented an extensive integrated water quality management plan which provides effective protection An informed customer base is important for Rand Water throughout the entire water supply chain. This risk-based and in this regard the www.reservoir.co.za website, system is able to pro-actively identify problems and which provides a wealth of water quality related also employs pre-defined corrective protocols for those information in respect of both drinking and source water determinants that are likely to have the highest probability quality, is maintained for public information. The website of failure. is used extensively by the public, research institutions, consultants and water quality managers. To circumvent the problems intrinsic to ad-hoc samples, Rand Water also has over 500 on-line monitoring During the year under review, Rand Water continued to devices, installed at key points throughout the water maintain an impeccable reputation with regard to the supply chain, each are capable of providing real time provision of high quality potable water. water quality information required for the optimum functioning of its water treatment systems, whilst allowing Source Water Quality for ongoing water quality verification. Rand Water’s supply area, driven economically by the Vaal River, generates 60-percent of South Africa’s Gross
31 Rand Water Annual Report 2009–2010 Scientific Services (continued)
Domestic Product (GDP), which is equal to 10-percent coal mines to feed Eskom’s increased demand. of the Continent’s GDP. The Vaal Dam is the hub of the The majority of these mines are located within the upper water supply in the Vaal River System. Rand Water, Sasol reaches of the Vaal River’s catchment, and can potentially (Sasolburg), Eskom and Mittal Steel, as well as downstream be harmful to Rand Water’s consumers if pollution levels users such as irrigators, Midvaal and Sedibeng Water, are are not appropriately managed. supplied or supported with water released from Vaal Dam Sewage contamination remains a concern, and the level The quality of the region’s water resources was under of the problem was highlighted with the release of the the spotlight during the year under review and received Department of Water Affairs’ “Green Drop” Report, with extensive media attention. This was as a result of a only 7-percent of municipalities in South Africa achieving number of incidents and discoveries that prompted the Green Drop status. concerns for the efficiency of water management structures, and other interventions related to water Climate Change resources. During the year under review, climate change was again on the top of the international political agenda, and it The decanting of acid mine drainage from various mines continues to make serious inroads in international trade in the Johannesburg area also received attention in the markets as well. It is obvious that business will have to media. The decanting of this water potentially poses play a major role in the fight against climate change, serious threats with respect to possible sinkhole formation and Rand Water has decided to respond to remain and the pollution of receiving streams. abreast with developments and proactively implement measures to align itself with government’s position. An additional concern with respect to acid mine water, is the increasing number of mining applications for new
Figure 1: The Role of Rand Water’s Scientific Services Unit in the Water Supply Chain * Departments
Department of Water and Rand Water Municipalities Environment Affairs (Water Services Provider) (Water Services Authorities) End Consumers
Catchment & Water Bulk Water Treatment Retail Water Bulk Water Distribution Transfer Schemes (Production) Distribution
Raw Water Purification Drinking Water
Water Quality Assurance
Scientific Services Source Water Quality (a) Production Water Quality (b) Bulk Distribution Water Quality (c) Retail Water Quality (d)
1. Water Quality Specialist Services* (consists of 4 sections above) Scientific Services
2. Analytical Services* 3. Divisional Support Services* 4. Process technology* (Biological & Chemical Sciences) (IT, HR, Technology Training, Risk) (Applied Research / Consulting)
Rand Water Annual Report 2009–2010 32 Table xxx: Bulk Distribution Water Quality supplied to Local Authorities – July 2009 to June 2010. Date generated: 28 June 2010
Specifications (based on SANS241: 2005) Units of Achieved compliance levels Parameter Required compliance No of results measure 95% min to Class I 99% min to Class II Class I Class II SPECIFICATIONS Chemical and Physical properties Colour (mg / l as Pt) < 20 ≤ 50 3928 99.9% 100.0% Conductivity (mS / m) < 150 ≤ 370 8017 100.0% 100.0% pH pH units) ≥ 5 to ≤ 9.5 ≥ 4 to ≤ 10 8017 100.0% 100.0% Turbidity (NTU) < 1 ≤ 5 12128 99.1% 100.0% Total Dissolved Solids (mg / l) < 1000 ≤ 2400 3907 100.0% 100.0% Taste (FTN) < 5 ≤ 10 4007 100.0% 100.0% Odour (TON) < 5 ≤ 10 4010 100.0% 100.0% Organic Determinants Total Trihalomethanes (μg / l) < 200 ≤ 300 4044 100.0% 100.0% Phenols as C6H5OH (μg / l) < 10 ≤ 70 2014 100.0% 100.0% Dissolved Organic Carbon (mg / l) < 10 ≤ 20 3935 100.0% 100.0% Micro Elements Antimony (μg / l as Sb) < 10 ≤ 50 1695 100.0% 100.0% Arsenic (μg / l as As) < 10 ≤ 50 1953 100.0% 100.0% Cadmium (μg / l as Cd) < 5 ≤ 10 3974 100.0% 100.0% Chromium (Total) (μg / l as Cr) < 100 ≤ 500 3975 100.0% 100.0% Cobalt (μg / l as Co) < 500 ≤ 1000 3975 100.0% 100.0% Cyanide (Recoverable) (μg / l as CN) < 50 ≤ 70 3879 100.0% 100.0% Lead (μg / l as Pb) < 20 ≤ 50 3956 100.0% 100.0% Mercury (μg / l as Hg) < 1 ≤ 5 3108 100.0% 100.0% Nickel (μg / l as Ni) < 150 ≤ 350 3972 100.0% 100.0% Selenium (μg / l as Se) < 20 ≤ 50 1756 100.0% 100.0% Vanadium (μg / l as V) < 200 ≤ 500 3974 100.0% 100.0% Macro Elements & Miscellaneous Determinants Aluminium (mg / l as Al) < 0.3 ≤ 0.5 3974 100.0% 100.0% Ammonia (mg / l as N) < 1 ≤ 2 3932 100.0% 100.0% Figure 1: The Role of Rand Water’s Scientific Services Unit in the Water Supply Chain * Departments Calcium (mg / l as Ca) < 150 ≤ 300 3975 100.0% 100.0% Chloride (mg / l as Cl) < 200 ≤ 600 3932 100.0% 100.0% Copper (mg / l as Cu) < 1 ≤ 2 3975 100.0% 100.0% Fluoride (mg / l as F) < 1 ≤ 1.5 3932 100.0% 100.0% Iron (mg / l as Fe) < 0.2 ≤ 2 3975 99.8% 100.0% Magnesium (mg / l as Mg) < 70 ≤ 100 3975 100.0% 100.0% Manganese (mg / l as Mn) < 0.1 ≤ 1 3975 100.0% 100.0% Nitrate & Nitrite (mg / l as N) < 10 ≤ 20 3932 100.0% 100.0% Potassium (mg / l as K ) < 50 ≤ 100 3974 100.0% 100.0% Sodium (mg / l as Na) < 200 ≤ 400 3974 100.0% 100.0% Sulphate (mg / l as SO4) < 400 ≤ 600 3932 100.0% 100.0% Zinc ( mg / l as Zn) < 5 ≤ 10 3974 100.0% 100.0% Microbiological minimum of 95% of the minimum of 99% of the original and E. Coli (cfu per 100 ml) original results shall be non- repeat/consecutive results shall be 12293 99.7% 99.7% detected nondetected Other Determinants as required by supply contract Free chlorine and (mg / l) ≥ 0.2 min 95% compliance 12295 94.8% monochloramine For monitoring/reporting purposes only (2) Guideline Achieved compliance levels 95 % Min compliance 99 % Min compliance 95 % Min 99 % Min Microbiological Standard Plate Count (cfu per 1 ml) < 100 < 5000 12288 96.2% 99.9% Total Coliforms (cfu per 100 ml) Not detected < 10 12293 98.5% 99.8% Notes: (1) Specification date of effect : July 2006 (2) Guideline derived from SANS 241: 2005 operations alert and industry practices Performance Index 99.27% 99.96%
33 Rand Water Annual Report 2009–2010 Scientific Services (continued)
Table yyy: Benchmarking of non-organic water quality determinants in the bulk distribution network to WHO standards – 2009/10
Parameter Units of measure WHO standards Number of samples Compliance levels (%) Physical and Organoleptic properties Colour (mg / l as Pt) < 15 4110 99.0% Turbidity (4) (NTU) < 0.1 12414 0.0% Turbidity (2) (NTU) < 5 12414 99.5% Total Dissolved Solids (mg / l) < 600 3904 100.0% Hardness (mg / l as CaCO3) < 200 4222 98.8% Radioactivity Alpha (1) (bq / l) < 0.5 11 100.0% Beta (1), (6) (bq / l) < 1 11 100.0% Inorganic Aluminium (mg / l as Al) < 0.1 4221 98.3% Ammonia (mg / l as N) < 1.5 4104 100.0% Antimony (μg / l as Sb) < 20 1788 100.0% Arsenic (μg / l as As) < 10 2059 100.0% Barium (mg / l as Ba) < 0.7 3962 100.0% Boron (mg / l as B) < 0.5 4221 100.0% Cadmium (μg / l as Cd) < 3 4221 99.9% Chloride (mg / l as Cl) < 250 4071 100.0% Monochloramines (mg / l) < 3 9937 100.0% Free Chlorine {Contaminant effect} (2) (mg / l) < 0.6 12521 81.7% Free Chlorine {Contaminant effect} (3) (mg / l) < 5 12521 100.0% Chromium (Total) (μg / l as Cr) < 50 4222 100.0% Copper (2) (mg / l as Cu) < 1 4222 100.0% Copper (3) (mg / l as Cu) < 2 4222 100.0% Cyanide (Recoverable) (μg / l as CN) < 70 3924 100.0% Fluoride (mg / l as F) < 1.5 4071 100.0% Iron (mg / l as Fe) < 0.3 4222 99.8% Lead (μg / l as Pb) < 10 4201 99.2% Manganese (2) (mg / l as Mn) < 0.1 4222 100.0% Manganese (3) (mg / l as Mg) < 0.4 4222 100.0% Mercury (7) (μg / l as Hg) < 6 3241 100.0% Molybdenium (mg / l as Mo) < 0.07 4221 100.0% Nickel (μg / l as Ni) < 70 4219 99.0% Nitrate (mg / l as NO3 ) < 11.29 4128 100.0% Nitrite (mg / l as NO2) < 0.91 4128 90.8% Nitrate/Nitrite ratio (5) (mg / l as N) < 1 4071 90.3% Selenium (μg / l as Se) < 10 1847 100.0% Sodium (mg / l as Na) < 200 4221 100.0% Sulphate (2) (mg / l as SO4) < 250 4071 100.0% Sulphate (3) (mg / l as SO4) < 500 4071 100.0% Uranium (ug/l as U) < 15 43 100.0% Zinc (mg / l as Zn) < 3 4221 100.0% Microbiological Faecal Coliforms (cfu per 100 ml) 0 8426 98.8% E. Coli (cfu per 100 ml) 0 12567 99.5%
Notes: (1) Analysed at the outlets of Purification works (2) Aesthetic effects (3) Health effects (4) For effective disinfection (5) [NO3 as N]/11.29 + [NO2 as N]/0.91 (6) Beta radiation excluding radiation from potassium-40 = [measured beta radiation in bq/l] - {0.0276 x [potassium in mg/l]}
Rand Water Annual Report 2009–2010 34 Table zzz: Water quality compliance in the Bulk Distribution network as measured by independent third party (CSIR) – Customer Confidence Report.
Specifications (based on SANS241: 2005) Units No of Achieved compliance levels Parameter Required compliance of measure results 95% min to Class I 99% min to Class II Class I Class II SPECIFICATIONS Chemical and Physical properties Colour (mg / l as Pt) < 20 ≤ 50 60 100.0% 100.0% Conductivity (mS / m) < 150 ≤ 370 60 100.0% 100.0% pH (pH units) ≥ 5 to ≤ 9.5 ≥ 4 to ≤ 10 60 100.0% 100.0% Turbidity (NTU) < 1 ≤ 5 60 100.0% 100.0% Total Dissolved Solids (mg / l) < 1000 ≤ 2400 60 100.0% 100.0% Taste (FTN) < 5 ≤ 10 60 100.0% 100.0% Odour (TON) < 5 ≤ 10 60 100.0% 100.0% Organic Determinants Total Trihalomethane (ug / l) < 200 ≤ 300 60 98.3% 100.0%
Phenols as C6H5OH (ug / l) < 10 ≤ 70 60 100.0% 100.0% Dissolved Organic Ca (mg / l) < 10 ≤ 20 60 100.0% 100.0% Micro Elements Antimony (μg / l as Sb) < 10 ≤ 50 60 100.0% 100.0% Arsenic (μg / l as As) < 10 ≤ 50 60 100.0% 100.0% Cadmium (μg / l as Cd) < 5 ≤ 10 60 100.0% 100.0% Chromium (Total) (μg / l as Cr) < 100 ≤ 500 60 100.0% 100.0% Cobalt (μg / l as Co) < 500 ≤ 1000 60 100.0% 100.0% Cyanide (Recoverable) (μg / l as CN) < 50 ≤ 70 60 100.0% 100.0% Lead (μg / l as Pb) < 20 ≤ 50 60 100.0% 100.0% Mercury (μg / l as Hg) < 1 ≤ 5 60 100.0% 100.0% Nickel (μg / l as Ni) < 150 ≤ 350 60 100.0% 100.0% Selenium (μg / l as Se) < 20 ≤ 50 60 100.0% 100.0% Vanadium (μg / l as V) < 200 ≤ 500 60 100.0% 100.0% Macro Elements & Miscellaneous Determinants Aluminium (mg / l as Al) < 0.3 ≤ 0.5 60 100.0% 100.0% Ammonia (mg / l as N) < 1 ≤ 2 60 100.0% 100.0% Calcium (mg / l as Ca) < 150 ≤ 300 60 100.0% 100.0% Chloride (mg / l as Cl) < 200 ≤ 600 60 100.0% 100.0% Copper (mg / l as Cu) < 1 ≤ 2 60 100.0% 100.0% Fluoride (mg / l as F) < 1 ≤ 1.5 60 100.0% 100.0% Iron (mg / l as Fe) < 0.2 ≤ 2 60 100.0% 100.0% Magnesium (mg / l as Mg) < 70 ≤ 100 60 100.0% 100.0% Manganese (mg / l as Mn) < 0.1 ≤ 1 60 100.0% 100.0% Nitrate & Nitrite (mg / l as N) < 10 ≤ 20 60 100.0% 100.0% Potassium (mg / l as K ) < 50 ≤ 100 60 100.0% 100.0% Sodium (mg / l as Na) < 200 ≤ 400 60 100.0% 100.0% Sulphate (mg / l as SO4) < 400 ≤ 600 60 100.0% 100.0% Zinc (mg / l as Zn) < 5 ≤ 10 60 100.0% 100.0% Microbiological (microbiological specifications do not have a class categorisation but specific percentage compliance requirements) 95%Min 99%Min 60 95%Min 99%Min E. Coli (cfu per 100 ml) Not detected not detected 60 100.0% 100.0% Standard Plate Count (cfu per 1 ml) < 100 < 5000 60 100.0% 100.0% Total Coliforms (cfu per 100 ml) Not detected < 10 60 100.0% 100.0% Faecal Coliforms (cfu per 100 ml) Not detected < 10 60 100.0% 100.0% Coliphages (per 10ml) Not detected Not detected 60 100.0% 100.0% Giardia (org/10 litres) Not detected Not detected 60 100.0% 100.0% Cryptosporidium (org/10 litres) Not detected Not detected 60 100.0% 100.0% Enteric viruses (per 10 litres) Not detected Not detected 60 100.0% 100.0% Free Chlorine and mo (mg / l) ≥ 0.2 60 86.7% Notes (1) Specification date of effect: July 2007 (2) Guideline derived from SANS 241: 2005 operations alert and industry practices
35 Rand Water Annual Report 2009–2010 Scientific Services (continued)
South Africa’s commitment at Copenhagen Catchment Management can be consolidated as follows: Rand Water’s Source Water Quality Management staff regularly engage with stakeholders at its Catchment Forums Depending on the level of international financial to address water management issues. Water quality reports support to South Africa and a legally-binding agreement are produced and discussed, highlighting both “hot spots” at the United Nations Climate Change Conference as well as cumulative trends in water quality. (The Conference is officially referred to as the 16th session of the Conference of the Parties – COP 16), Rand Water also participates in the process of moving such actions contemplate: towards the establishment of the Upper Vaal Catchment Management Agency (CMA). Engagements also take • 34 percent deviation below the “Business place at a higher level via the Vaal Barrage Catchment as Usual” emissions growth trajectory by Executive Committee (VBCEC) and various government 2020; and, steering committees. During the year under review, this process continued, even in the absence of the • 42 percent deviation below this trajectory establishment of the Upper Vaal CMA, as Rand Water by 2025. views the protection of its source waters as critical to its ability to provide an uninterrupted supply of world class Rand Water acknowledges the potential impact of potable water. climate change on its operations, and has initiated a programme to include climate change matters in all Eutrophication and the Vaal Barrage spheres of its business planning. The spillage of raw sewage continued in the Vaal As a result of South Africa’s sensitive water hydrology, Barrage reservoir with high levels of nutrients and general aridity and high precipitation variability in space faecal bacteria. and time, South Africa is especially vulnerable to climatic change. Fortunately, during the year under review, improvements in the effluent levels from the waste water treatment plants Rand Water is exposed to a number of risks, both in have already been observed. This can be ascribed to terms of water supply and water quality, and will react to Rand Water’s interventions; and the monitoring and this threat by preparing response strategies dealing with reporting of spills, combined with the “Green Drop” these identified risks. assessments being executed by the Department of Water Affairs. The fact that action is being taken is comforting, These risks include issues such as: and is an indication that awareness levels among stakeholders remains high. • Security of supply • Extended maximum demand periods Monitoring • Algal blooms The rivers and dams in the catchments within Rand • Waterborne diseases Water’s area of supply are extensively monitored and • Infrastructure damages etc. a great deal of effort goes into communicating the water quality status of the catchments to consumers. Rand Water is mindful that such preparedness is likely to This takes place through involvement in catchment make the difference between a water-secure country and forums. Rand Water assumes the role of water quality poverty stricken, water-insecure country. auditor and facilitator in these forums, as it has the most comprehensive database of chemical, biological, and microbiological data.
Rand Water Annual Report 2009–2010 36 As a result of the increasing water quality problems, economic pressures and uncertainties surrounding incidents such as fish kills; Rand Water has installed a number of electronic monitoring units at selected sites in the Vaal and Wilge Rivers, and the Vaal River Barrage reservoir. These instruments measure water flow at weirs as well as selected water quality variables. The instruments are linked to data loggers equipped with cell phone technology, through which the data is sent to a central server. This real time information of the determinants measured is available on line to staff in the Water Quality Specialist Services Department at Rand Water.
The equipment is also programmed to send warnings via SMS to the relevant staff members’ cell phones when Municipal wastewater effluent is the principal contributor certain water quality variables exceed specified limits. to the eutrophication and degradation of the Vaal River This system will vastly improve response time to pollution aquatic system. It is also one of the impacts that are incidents, as well as significantly improve the information most easy to mitigate because they are easily identified, base, which will contribute to a better understanding of measured, and susceptible to control by policies and the dynamics of the Vaal River system. regulations.
The Vaal Dam Catchment Area In the long-term, increased pressures are forecast as a result of population expansion and development in the During the year under review, a number of water quality Vaal River catchment, which in turn will increase pollution issues have been identified with regard to the current levels. This will necessitate additional measures and water quality in the Vaal River system. Some were related strategies to maintain acceptable pollution levels in the to the entire length of the Vaal River, while others are of Vaal River system. Through the continuous actions of the a localised nature. An increase in salinity and related catchment forums, Rand Water and other stakeholders, macro-ions, has had the greatest impact on the usage of these problematic areas have been highlighted and water in the Vaal River. are being addressed by the Department of Water and Environmental Affairs, and the appropriate local The increase in Total Dissolved Solids (TDS) and municipalities. concomitant increase in constituents such as chloride and sulphate has major implications on domestic, Serious attention should be given by municipalities industrial and agricultural water users. The occurrence to upgrade their sewage infrastructure, minimise the of microbiological pollutants as localised problems, ingress of storm water into the sewer system during is also an emerging concern. This is likely an indicator high flow periods; and minimise operational spillages. of sewage works not being properly operated, managed An improvement in the quality of the sewage effluent and maintained. will also contribute to the environmental sustainability of the Vaal River ecosystem. Eutrophication is another key water quality problem in the Vaal River System, and has resulted in algal blooms and The Vaal Barrage Catchment Area growth of water hyacinth. Impacts have also resulted in economic implications for water users and large amounts The Vaal Barrage catchment receives extensive volumes of expenditure required to control it. of water from point-source discharges. The point-source
37 Rand Water Annual Report 2009–2010 Scientific Services (continued)
Table nnn: Recommended list of priority organic contaminants for analysis in the drinking water supply chain.
Organic Contaminant Classification Concern to the Drinking Water Industry
INDUSTRIAL CHEMICALS Benzene Volatile organic compound chronic lymphatic leukaemia Chlorobenzene Volatile organic compound Liver and kidney toxicity 1,2-Dichlorobenzene Volatile organic compound Liver and kidney toxicity 1,2,4-Trichlorobenzene Volatile organic compound Changes in adrenal glands 1,4-Dichlorobenzene Volatile organic compound cirrhosis of the liver Benz [a] pyrene Polynuclear Aromatic Hydrocarbon Human carcinogenicity, potential EDC Bisphenol A Plasticizer Endocrine disruption Dibutylphthalate (DBP) Plasticizer Endocrine disruption Di (2-ethylhexyl) phthalate Plasticizer Endocrine disruption Ethylbenzene Volatile organic compound Taste and odour, health Glycol esters Volatile organic compound Taste and odour Octylphenol Surfactant Endocrine disruption p-Nonylphenol Surfactant Endocrine disruption Polychlorinated biphenyls [PCBs Chlorinated biphenyls Teratogenicity Toluene Volatile organic compound Taste and odour Xylene isomers Volatile organic compound Taste and odour 2,3,7,8-Tetrachlorodiphenyldioxin(TCDD Dioxin Endocrine disruption, Teratogenicity Nitrilotriacetic acid (NTA) Detergent metabolite Potential human carcinogenicity, IARC Di-2-(ethylhexyl) adipate (DEHA) Plasticizer Endocrine disruption Dibutyltin (DBT) Organotin Reproductive toxicity Dimethyltin (DMT) Organotin Reproductive toxicity Tributyltin (TBT) Organotin Endocrine disruption PESTICIDES 2,4-Dichlorophenoxyacetic acid Herbicide Internal Haemorrhage Aldrin Organochlorine pesticide Liver & CNS toxicity Atrazine S-triazine herbicide Endocrine disruption Chloropyrifos Organochlorine pesticide Decreased plasma ChE Cyhexatin Organotin pesticide Reproductive toxicity DDT Organochlorine pesticide Endocrine disruption DDE DDT metabolite Endocrine disruption Dieldrin Organochlorine pesticide Endocrine disruption Diquat Bipyridillium salt pesticide Liver & kidney toxicity Endosulfan Organochlorine pesticide Human carcinogenicity, potential EDC Endrin Organochlorine pesticide Liver problems Heptachlor Organochlorine pesticide Liver and CNS damage Heptachlor epoxide Organochlorine pesticide Liver toxicity Lindane [γ-BHC] Organochlorine pesticide Liver and CNS damage MCPA Phenoxy acetic acid herbicide Male reproductive toxicity Methoxychlor Organochlorine pesticide Reproductive problems, potential EDC Paraquat Bipyridillium salt pesticide Chronic pneumonitis Simazine S-triazine Herbicide Endocrine disruption Terbutylazine (TBA) S-triazine herbicide Reduced body weight Vinclozolin Fungicide Endocrine disruption Cis-Chlordane Metabolite of Chlordane Hepatic necrosis Trans-Chlordane Metabolite of Chlordane Hepatic necrosis β-Endosulfan Metabolite of Endosulfan Human carcinogenecity, potential EDC Endosulfan sulphate Metabolite of endosulfan Endocrine disruption Acetochlor Chloroacetamide,pesticide Salivation, decrease of sugar levels Acetochlor ethane sulfonic acid Reaction product of Acetochlor More persistent and toxic than parent compound Acetochlor oxanilic acid Reaction product of Acetochlor Alachlor Chloroacetamide,pesticide Liver , kidneys problems Alachlor ethane sulfonic acid Reaction product of Alachlor More persistent and toxic than parent compound Alachlor ethane oxanilic acid Reaction product of Alachlor More persistent and toxic than parent compound Hexachlorocyclohexane isomers: Metabolites of HCH organochlorine pesticide Chronic pneumonitis β-HCH, β-HCH, β-HCH 2-(2,4,5-TrichloroPhenoxy acetic, Silvex, Fernoprop Phenoxy acetic acid herbicide Hepatic and renal toxicity Reduced body weight, increased liver and 2,4,5-T-(Trichlorophenoxyacetic acid) Phenoxyacetic acid herbicide kidney weight
Rand Water Annual Report 2009–2010 38 (Table nnn: continued)
Organic Contaminant Classification Concern to the Drinking Water Industry
DISINFECTION BY-PRODUCTS 2-Chlorophenol Phenol Reproductive effects, T&O problems 2,4-Dichlorophenol Phenol Delayed sensitivity response, T&O problems 2,4,6-Trichlorophenol Phenol Mutagenicity in vivo, T&O problems Pentachlorophenol Phenol Cancer, liver and kidney effects Chloroform Disifection by-product Kidney and liver toxicity Bromoform Disinfection by-product Kidney, bladder, renal effects Bromodichloromethane Disifection by-product Renal cytomegaly, liver effects Dibromochloromethane Disifection by-product Liver & kidney damage Dichloroacetonitrile Disinfection by-product Developmental toxicity Dibromoacetonitrile Disinfection by-product Reduced body weight Trichloroacetonitrile Disinfection by-product Lachrymator, severe eye irritant Monochloroacetic acid Disinfection by-product Genotoxicity, cytotoxicity Dichloroacetic acid Disinfection by-product CNS damage, liver &kidney effects Trichloroacetic acid Disinfection by-product Cytotoxicity Bromoacetic acid Disinfection by-product Genotoxicity, Cytotoxicity Bromochloroacetic acid Disinfection by-product Reproductive effects Dibromoacetic acid Disinfection by-product Liver toxicity Formaldehyde Disinfection by-product Irritant to nasal cavity Trichloroacetaldehyde Intermediate product Harmful if inhaled SYNTHETIC ORGANIC POLYMER RESIDUES Acrylamide Water Treatment residue Nerve damage, benign tumours Epichlorohydrin Water treatment residue Increased chronic cancer risk Diallyldimethylammonium Chloride Water treatment residue Genotoxic Dimethylamine Water treatment residue Tissue destruction 1,3-Dichloro-2-propanol Water treatment residue Moderately toxic 2,3-Dichloro-1-propanol Water treatment residue Not easily degraded 3-Chloro-1,2-propanediol Water treatment residue Carcinogenicity, male infertility NATURAL AND SYNTHETIC HORMONES 17-Estradiol Hormone Endocrine disruption Estriol Hormone Endocrine disruption Estrone Hormone Endocrine disruption 17-Ethinylestradiol Hormone Endocrine disruption Dietylstilbestrol (DES) Hormone Endocrine disruption ALGAL TOXINS Microcystin-(LR+YR+RR) Cyanotoxin Hepatotoxins (liver toxins) Anatoxin-a Cyanotoxin Neurotoxin Homoanatoxin-a Cyanotoxin Neurotoxin Anatoxin-a(S) Cyanotoxin Neurotoxin Saxitoxins Cyanotoxin Paralytic Shellfish poisoning Cylindrospermopsin Cyanotoxin Liver toxicity Nodularin Cyanotoxin Liver toxicity T&O – Taste and odour EDC – Endocrine disrupting Chemical CNS – Central Nervous System ChE – Cholinesterase Enzyme BHC – Benzene Hexachloride IARC – International Agency for Research on Cancer
discharges include the major wastewater treatment increase with time as the water requirements grow, and works run by Johannesburg Water, the East Rand Water the level of services are improved with the expansion of Company (ERWAT) and Metsi-a-Lekoa as well as the water-borne sewerage systems in urban areas. discharges from gold mines. There are also industrial effluent discharges, the largest being from industries in The two most important water quality issues to be the Sasolburg and Vanderbijlpark areas. The discharge managed in the Vaal River Barrage catchment for the volumes from the wastewater treatment plants are likely to majority of the sample points are biological (in the form
39 Rand Water Annual Report 2009–2010 Scientific Services (continued)
Production Water Quality Assurance
Water Quality Specifications
Rand Water has adopted the SANS 241 drinking water quality standard (95-percent compliance to Class I, and 97-percent compliance to Class II) as delivery specification to its customers. In addition, the organisation has a more comprehensive and more stringent internal production specification, designed to provide Rand Water with a buffer, so that it can deliver to its customers with certainty on the SANS 241 specifications.
Water Quality measurement and Reporting
Rand Water has extensive measurement capacity consisting of three ISO 9001 certified site laboratories, more than 500 online instruments and an offsite ISO 17025, as well as an ISO 43 accredited laboratory. of faecal coliforms) and chemical (in the form of gold Extensive monitoring programs during the year under mining and industrial impacts through manganese, review were documented and complied with. An online sodium and sulphate). instruments upgrade program was also initiated.
The more difficult issue of water quality management is Water Quality Management System that of controlling the different sources of pollution. In this Rand Water is committed to a documented systematic regard, the biological impact of uncontrolled wastewater risk-based water quality management system. run-off from informal settlements, burst pipes due to In line with this, a Water Quality Safety Plan (WQSP), maintenance constraints and the general lack of waste which is based on Hazard Analysis and Chemical management processes have seen a deterioration during Control (HACC) and ISO 9001 principles, has the year under review in biological water quality. This can, been documented. and potentially will, lead to potential harmful effects on the human populations who use the Vaal Barrage catchment A preliminary detailed water quality risk register has river systems for domestic and recreational uses. also been established. An initiative to align different site procedures with the WQSP has commenced. With regards to the eutrophic status of the Vaal River An organisation wide multi-stakeholder water quality system, the Vaal River downstream of the Vaal Dam management standing committee has remained functional is severely impacted, resulting in a degradation of over the past five years. ecological integrity. It must be noted, that the Vaal Barrage catchment is described as a serious “hotspot” Water Quality Benchmarking with the highest levels of pollution (bacteria, algae, heavy metals, salts and nutrients) recorded throughout the entire During the year under review, Rand Water continued Vaal River system. During the year under review, the to benchmark the quality of water supplied to local pollution levels in the Klip River and Rietspruit catchments authorities against the World Health Organisation of the Vaal Barrage catchment remained unacceptably (WHO) drinking water quality guidelines. The assessment high, and the scale of nutrient inputs far exceeded the for non organic parameters is presented on table yyy. capacity of the natural environment to assimilate the The results compared favourably with the WHO water waste discharged into these river systems. quality guidelines.
Rand Water Annual Report 2009–2010 40 Water Quality in the The Centre for Science, Information and Industrial Bulk Distribution Network Research (CSIR)’s Analytical Services team was contracted to render the service, and the result of the exercise can be seen on Table zzz. Water Quality Specifications
In the absence of a national specification for a particular Routine Organics monitoring parameter or group of parameters, benchmarking against the WHO Drinking Water Quality Guidelines Monitoring of organic parameters is subject to an were adopted as the norm. The drinking water quality ongoing investigation as the measurement of these delivered to Rand Water customers during the year parameters is complex, and limited analytical capacity under review remained of excellent quality (Table xxx). is available in South Africa. Table nnn contains some All physical, chemical and biological health related compounds that have been assessed in the Rand Water parameters were complied with. drinking water value chain. During the year under review, none of these compounds were detected at levels that Water Quality Assurance Activities are considered a danger to human health. A set of water quality monographs for each of the organic Alignment of Site Procedures to the Requirements compounds or group of organic compounds was of the Water Quality Safety Plan (WQSP) produced. The water quality monographs are used as an information and support tool. Rand Water began an initiative to align its different site procedures with the WQSP. Areas where procedures Consumer Complaints were required were identified and aligned to those of the WQSP. This will be an ongoing process to ensure There were 12 consumer complaints that neccessitated that water quality assurance activities are adhered to technical investigation during the year under review. throughout the entire bulk distribution network, and to The majority of the complaints came from the Ekurhuleni ensure that initiatives for public health protection via the Metropolitan Municipality and the Midvaal Local delivery of safe drinking water are implemented. Municipality. All the consumer complaints were processed successfully and reported to the relevant local authorities. Determination of Water Quality Risks The service evaluations completed by the complaints indicate that they were more than satisfied with the It is necessary to determine those water quality risks action taken. that can affect the integrity of the supply. During the year under review, a Water Quality Risk Register for the bulk Interesting complaints distribution network was developed after interacting with the relevant stakeholders within the Bulk Water Services Complaint 1: Consumer complained that the water in the cluster. The Register, which is a Blue Drop requirement, company’s office building had a strong chemical smell. is updated on an ongoing basis. Results of the water samples taken indicated the presence of toluene in the water, an investigation revealed that External Verification of the Quality of Potable Water a strong glue (containing toluene) was used in the Supplied by Rand Water to Local Authorities manufacturing workshop, the water pipe supplying the office building ran under the area were the old glue tins To ensure confidence in the quality of the water supplied were discarded. Changes were made to the plumbing, by Rand Water, an independent water quality audit and the results of follow up samples indicate that no was again conducted during the year under review. toluene was present in the water. The organisation subjected itself to an independent system to assess water quality supplied to customers.
41 Rand Water Annual Report 2009–2010 Scientific Services (continued)
Consumer Complaints 2009 – 2010
2.5
2
1.5
1
Number of Complaints 0.5
0 Direct Westonia Ekurhuleni Midvaal Emfuleni Tshwane Mogale Consumer Health 1 1 - 1 - - - Chemical - - 2 - 1 1 - WQ ------1 Invertebrate - 1 - - - - - Aesthetic - 2 1 - - - -
Complaint 2: Consumer complained that water coming Metropolitan Municipality, Johannesburg Water, Emfuleni out of her tap was green. Investigations revealed the use Local Municipality, Midvaal Local Municipality, Ngwathe of low grade plumbing materials and the outside pipes Local Municipality and Westonaria Local Municipality. being exposed to direct sunlight. The results of the sample taken indicated the presence of algae in the water. These meetings were intended to establish relationships The consumer was informed of the findings and advised with Rand Water’s stakeholders and share information to upgrade the plumbing. She was satisfied with the pertaining to water quality issues. findings and the advice given. Analytical Services Tap Analysis Programme To ensure the supply of world class water, Rand Water has in-house laboratories to provide water quality Rand Water’s Tap Analysis Programme has been data. During the year under review, thousands of operational for 12 years. This voluntary programme, water samples were taken throughout its water-chain. monitors water quality with the end consumer. It currently These were analysed at Rand Water Analytical Services monitors 74 sample points, covering 12 municipal areas to provide biological and chemical data, as per national that are supplied by Rand Water. The data collected and international drinking water standards. confirms the excellent water quality that is supplied to the end consumer. The focus was on four main disciplines in producing water quality data, i.e. the Microbiological and Hydro- Water Quality Technical meetings are held bi-monthly, biological specialties, and the Organic and Inorganic between Rand Water’s Water Quality Specialist specialties. The laboratories remain fully accredited by Services department and municipalities within Rand SANAS (South African National Accreditation System) Water’s service area. During the year under review, demonstrating its compliance to international best regular meetings were held with nine municipalities; the practices with regard to the production of laboratory Tshwane Metropolitan Municipality, Mogale City Local data. Municipality, Govan Mbeki Local Municipality, Ekurhuleni
Rand Water Annual Report 2009–2010 42 Furthermore, the laboratories participate in various a revolutionary detector referred to as the ‘Time of national and international proficiency testing schemes Flight’ detector. This instrument allows for the analysis when monitoring its performance against internationally of water samples, it detects ultra low levels of organic accepted analytical methodologies. contaminants with simultaneous confirmation. The Organic Laboratory has also recently commissioned its Among the priorities for the Microbiological laboratories newly acquired LC-MS-MS for the analysis of volatile are the data requirements for indicator organisms organic compounds. in potable water. In this respect, the microbiology laboratories have introduced enhanced assays for the Process Technology detection of indicator organisms, thereby reducing The core objective of Rand Water’s Process Technology the turnaround time required to produce such data. Department is to optimise treatment processes at Rand Scientists from Rand Water’s Microbiology Laboratory Water, in order to facilitate the production of the have also entered into a collaborative project with other best quality water at the lowest cost. This entails the stakeholders, including the University of Johannesburg in identification and implementation of the best available developing a real time polymerase chain reaction (PCR) technology, in combination with the most advantageous assay for the detection of cholera in water. The intention treatment regime. is to implement a PCR based assay to discriminate between pathogenic and non-pathogenic cholera During the year under review, Process Technology organisms. undertook a diverse range of projects relating to internal process optimisation, and addressed a range of external Hydro-biologists pay attention to aquatic toxicity, technical queries pertaining to water treatment and algae and algal toxin monitoring, aquatic invertebrate quality. The latter reflected the general interest trends in assessment and aquatic bio-monitoring. Scientists from the water sector during the year, which mainly revolved Rand Water’s Hydro-biology Laboratory have recently around the topical issue of water re-use. This included the concluded a joint study with the University of Pretoria and feasibility of mine water de-salination and the reclamation the University of the Western Cape. This collaborative of grey water. effort studied endocrine disruptor compound activity and immuno-toxicity in catchment water, as well as purified As part of its mission to remain conversant with the best water supplied by Rand Water. The team concluded that available technology, the Department evaluated several from an estrogenic and immuno-toxic perspective, the alternatives relating to conventional water treatment. potable water produced at Rand Water poses no risk to Some of the significant assessments included alternative human health. filter media, products for remediation of existing filter media, biopolymers for both coagulation and disinfection During the year under review, Rand Water’s Inorganic purposes, activated zeolite, portable chlorine generators Laboratory was re-equipped with an ICP-MS and a and several disinfectants. graphite furnace atomic absorption spectrophotometer. These technologies significantly enhance the capabilities Trends in the latter, included both chlorine and non- of the Inorganic laboratory with the detection of an chlorine based disinfectants, with a marked rise in the extensive range of metals at extremely low levels. promotion of metal based products such as stabilised copper and silver solutions. Scientists at the Organic Laboratory were pleased with the arrival of a new gas chromatograph with
43 Rand Water Annual Report 2009–2010 improved water quality. The Department evaluates alternative coagulants on an ongoing basis in order to optimise operations. Iron based salts have shown potential in terms of cost reduction. During the year under review, the Department conducted laboratory- scale and limited full-scale evaluations of ferric chloride as a potential coagulant in combination with other chemicals.
• A method to increase the total filtration capacity Key projects undertaken and focus areas during the without the need for new infrastructure, is set to year under review; increase the filtration rate without compromising water quality. Investigations into the effects of such • One of Process Technology’s core functions is to increased filtration rates have commenced, with initial verify the technical suitability of water treatment results indicating potential for further comprehensive chemicals for use at Rand Water. Comprehensive investigation. evaluations undertaken on chemicals submitted for tender purposes during the year under review, • Also related to filtration was the treatment of existing included ammonium hydroxide, quicklime, filter sand, to remove mud balls and other deposits sodium hypochlorite, organic coagulants and to ensure optimum operation. Several physical and polyacrylamide. chemical treatment methods were evaluated, and the most appropriate were subjected to full scale trials. • Carbon dioxide is a key requirement in Rand Water’s preferred chemical treatment process. Process • In light of the increasingly stringent requirements Technology carried out an extensive characterisation concerning disinfectant residual at point of delivery, of power station flue-gas to assess its suitability as the Department undertook an extensive investigation a potential source of this critical constituent. into chlorine and monochloramine decay in the distribution system. Emanating from this project • Rand Water currently has a treatment plant for were several models which may be used to predict recovered filter wash water, and an investigation into disinfectant decay, and quantify appropriate initial treatment options for the remaining volumes of filter dosages to ensure compliance. These models also wash water was undertaken. This project identified aid in the identification of potential locations for cost effective recommendations for the treatment tertiary disinfection plants. and recovery of filter wash water at Rand Water’s Zuikerbosch Purification and Pumping Station. • The presence and impact of natural organic matter (NOM) in raw water sources is steadily • Computational fluid dynamics (CFD) was utilised gaining international interest. As an initial survey to determine the flow dynamics in flat bottomed of this important aspect, a preliminary investigation sedimentation tanks in order to optimise their design. quantified several NOM fractions in the source These forms of investigation are vital to ensure that the water. Further investigations will be conducted into correct design criteria is used in the construction of the reaction of NOM throughout the existing water new water treatment infrastructure. treatment process.
• Optimal choice of coagulants promotes cost saving, Rand Water has one of the largest and most valuable reduces the mass of sludge produced, and results in water quality databases in the country, which is
Rand Water Annual Report 2009–2010 44 managed by its Information Management Department. • Clean Water Reports This Department provides system administration, • Raw Water Quality Reports development and maintenance support, database administration and statistical consultation services to These Reports are discussed monthly at the meetings name but a few. Its main focus is on maintaining, of the Potable Water Quality Working Committee, developing and optimising three specialist systems. and subsequently reported on at the PIC and Board meetings. These statistical reports are core to Rand They are Labware Laboratory Information Management Water’s continued commitment to monitor and comply System (LIMS), Quality Information Management Decision with both national and international water quality Support System (QIMDSS) and Observator System for specifications. Currently, a project is underway weir and several other component data transmitted from to automate these Reports by leveraging business probes via GPRS deployed in a number of sites. intelligence.
The section strives to integrate as many of the laboratory Rand Water’s Water Technology Training Unit instruments as possible into the LIM System. This creates Rand Water believes that every individual should be a seamless workplace where raw data is transferred offered the opportunity to improve themselves through to a central repository from where it can be converted training, the Water Technology Training section focuses into meaningful information, or be used to produce on people development. This unit identifies skills gaps comprehensive statistical reports for various management within Rand Water’s Scientific Services Division. It focuses structures within Rand Water. Laboratory personnel can on those skills which need to be met through technical conduct research, perform calculations and produce training, in order to ensure the continued sustainability of specific reports remotely via the network, while managers the Division and organisation. can proactively review results and authorise findings. The LIM System at Rand Water Analytical Services is All training courses are outcomes-based and the content considered the benchmark for Labware LIMS installations is unit-standardised. This approach ensures alignment for the water sector in South Africa. with the competencies and qualifications as set out by the National Qualifications Framework (NQF) and it is the The Quality Information Management Decision Support reason why these courses and modules are recognised System facilitates the dynamic monitoring of river quality by the South African Qualifications Authority (SAQA). and contributing pollutants in the catchment areas. Results The unit has been accredited by the Energy Sector from sample points are shown both alphanumerically Education Training Authority (ESETA) as a proper training and graphically on this system, allowing the comparison centre. The training facility, which can accommodate of sample point results with various set criteria. In this about 30 trainees, is state-of-the-art, and is equipped with way, Information Management provides comprehensive wireless technology and video conferencing facilities. reporting on data, as well as extensive statistical analysis to aid management in making meaningful decisions. In line with the development and supply of a continuous During the year under review, Rand Water’s Information pipeline of skilled scientists, the Water Technology Management Department continued to develop and Training unit is preparing for the second intake of report on Water Quality Statistics for Rand Water. graduates who will be contracted into Rand Water’s Scientific Services Division over two years. The first These reports include; graduate development program was initiated in 2009, • Bulk Distribution Water Quality Compliance Reports and currently a retention program is in place to retain • Production Water Quality Compliance Reports a percentage of graduates within the organisation. • Tap Water Quality Compliance Reports This program is due to end in March 2011. • Local Authority Water Quality Compliance Reports
45 Rand Water Annual Report 2009–2010 Bulk Sanitation
The Water Services Act No 108 of 1997 allows for Rand five-year management contract with the Emfuleni Water to provide water services (including sanitation services) Local Municipality, effective 23 September 2009 to to other water services institutions and authorities within its area September 2014. of supply. Therefore, the primary objective of Rand Water’s Bulk Sanitation Division is to extend its services to water The Contract commits Rand Water to the operation service authorities and institutions both within, and beyond and maintenance of the Municipality’s 52 pumping Rand Water’s area of supply. Rand Water can in terms of a stations, and its three wastewaters treatment plants; Ministerial Directive, operate outside of its service area. as well as the capacity building and implementation of its Industrial Effluent Monitoring Programme and The services as outlined in the Water Services process upgrades. Act No 108 of 1997 include; the assessment of wastewater treatment plants and to provide site specific To date, there has been an improvement in the effluent recommendations for municipalities to ensure effluent quality of the Municipality’s wastewater treatment works compliance to the Department of Water Affairs’ Green to above 85-percent compliance with the relevant Drop Certification. The provision of management; legislation. Rand Water has also implemented a bio- capacity building; operation and maintenance; industrial monitoring programme on all three of the Municipality’s effluent monitoring programmes; refurbishment and sewage treatment works to monitor the impact of the processes involved in the upgrading of water and effluent discharged into the Vaal River by these plants. wastewater treatment works and pumping stations. The Executive Mayor of Emfuleni Local Municipality, Key Projects undertaken, and focus areas during Councillor SA Mshudulu in his State of Emfuleni the year under review included: Local Municipality Address on 31 May 2010, thanked Rand Water for the improvement of effluent Emfuleni Local Municipality quality especially at Rietspruit Wastewater Treatment Rand Water’s Bulk Sanitation department has signed a Works:
Rand Water Annual Report 2009–2010 46 “I am pleased to inform residents of Emfuleni that Olifants River. Funded by the Department of Water Affairs, our vulnerable sewer treatment works, Rietspruit has the Programme involves the replacement of all the electrical improved the quality of its effluent discharges into the and mechanical equipment, civil structures, and bringing the Vaal River to 87% consistently over the past three months. Works to their maximum operational potential. This is proof that the upgrading, refurbishment and modifications projects currently under way are beginning The water pollution as a consequence of the inadequate to bear tangible fruit and bringing us closer to legislative functioning of the Works, has necessitated that Rand Water compliance. We thank our partners, the Department of expedites the project by treating it as a priority with regards Water Affairs, Rand Water, …” to the following:
Rand Water has also recommended that the Municipality • The un-blocking and cleaning of the two blocked upgrade its waste water treatment plant at Sebokeng, collector sewers that should be bringing effluent to proposing the design of a new phase to address the the plant; hydraulic loading of the plant. Rand Water has commenced with the design and the construction of a second clarifier, as • The temporary neutralisation of acid mine water at well as chlorine contact tanks at Emfuleni’s Rietspruit waste the holding ponds, while the reinstatement of the water treatment plant. For these interventions, most notably plant is underway. for the once problematic Rietspruit Waste Water Treatment Plant, Rand Water has been commended by the ‘Save the Thembisile Hani Local Municipality Vaal’ environmental action group for making a difference Rand Water has been appointed by the Thembisile Hani in addressing the discharge of non-compliant effluent to the Local Municipality in Mpumalanga, on a five year contract Vaal River. for the management, operation and capacity building at its Tweefontein Waste Water Treatment Plant. The average Brugspruit Water Pollution Control Works compliance of Tweefontein was at 83.3-percent. However, During the year under review, Rand Water continued with since Rand Water began its operations, there has been the commissioning and refurbishment of the Brugspruit improvement on the percentage compliance of the plant to Water Control Works. The Works are located on the 84.4-percent in June 2010. Brugspruit, a tributary of the Klipspruit draining to the upper
47 Rand Water Annual Report 2009–2010 Bulk Sanitation (continued)
Emalahleni Local Municipality
In March 2010, Rand Water was appointed by the Emalahleni Local Municipality for the refurbishment of its Klarinet 2 & 3, and its Bush Pumping Stations.
The Bush Pumping Station is due for completion and handover to municipality in mid July 2010; with the Klarinet 2 & 3 Pumping Stations due for completion by end of September 2010.
The Municipality also requested Rand Water to conduct a condition assessment of its Witbank Purification Works. This was done in May 2010, and was followed by a report to address the current water quality problems which continue at the Plant. Rand Water has submitted a proposal to assist the Municipality with the operations and maintenance of three other pumping stations. 4 unemployed Science-Engineering graduates from the community were engaged for a year to be trained as Victor Khanye Local Municipality Process Controllers at the Works. While at Tweefontein, the technical skills related to operations and optimisation of Rand Water was appointed by the Victor Khanye Local wastewater treatment plant will be transferred so that the Municipality (formerly the Delmas Local Municipality) graduates can also be assessed by Department of Water in September 2009 on a monthly contract to manage, Affairs to qualify as competent Process Controllers. operate and maintain, its two wastewater treatment works. Positive impacts have already been observed most notably Moqhaka Local Municipality with the levels of effluent compliance. Rand Water has worked with the Municipality to secure funding from the During the year under review, the Moqhaka Local Department of Water Affairs for the treatment of its sludge Municipality in the Northern Free State, appointed Rand handling at the Works, which had in the past resulted Water as its service provider for the refurbishment of in the cross contamination of potable water with that of mechanical equipment at its Kroonstad Waste Water wastewater. Treatment Plant.
Dipaleseng Local Municipality The scope of work for the Moqhaka Local Municipality consisted of the following: In February 2010, Rand Water was appointed by • Reinstate missing mechanical equipment the Department of Water Affairs for the cleaning of • Refurbish and repair mechanical equipment sludge which had been contaminating a reservoir in the • Reinstate missing measuring appurtenances Dipaleseng Local Municipality in Mpumalanga. • Calibration of flow meters • Cleaning of settling tanks and digesters • Re-commissioning of treatment process
This project is due for completion at the end of September 2010.
Rand Water Annual Report 2009–2010 48 Environmental Management Services
Rand Water Environmental Management Services (EMS) susceptible to erosion and other negative environmental is responsible for three main areas of operation i.e., site aspects which can potentially damage pipelines. The maintenance and landscaping, Water Wise gardening pipelines have become exposed as a result of soil and education, and Environmental authorisations and erosion, resulting in a reduced life span from the normal reinstatements. 65 years as rust thins the pipes. Pipe bursts in themselves, can result in huge environmental damage on a large Environmental Authorisations and Reinstatement scale, costing large amounts of money to rectify.
In order for Rand Water to ensure its compliance with the Environmental Authorisations (EA) are essential for a appropriate legislation, it is essential for various studies, variety of projects ranging from the maintenance of public participation processes and plans be undertaken existing pipelines to the construction of new, and the to allow for the necessary approvals to be granted demolishing of old infrastructure. These projects are by authorities. During the year under review, internal audited by Environmental Control Officers employed changes within Rand Water have resulted in restructuring, by Rand Water, with external audits being conducted such that, as of 2010/2011 financial year, all by independent Environmental Assessment Practitioners. environmental authorisations are now to be undertaken Compliance is important to Rand Water, as non- via the EMS department. compliance can potentially affect the organisation negatively in the form of fines, or the withholding of With ever increasing urbanisation, the need for more further authorisations, and thereby preventing any further infrastructures to service the demand for water continues development. During the year under review, the EMS to increase. The 3 300km of Rand Water pipeline department has been involved in 66 of these projects. infrastructure in servitudes and related infrastructure become even more prominent as open green belts. Of the projects, 44 are in the process of obtaining These servitudes are vulnerable to the impact of storm authorisation, while 16 projects are being monitored for water, human and animal traffic, etc, making them compliance. EMS has also been directly involved with
49 Rand Water Annual Report 2009–2010 Environmental Management Services (continued)
The Braam Fischer rehabilitation project: Before The Braam Fischer rehabilitation project: After
10 rehabilitation projects with current authorisation. The various zone classifications include amongst others; In addition to the 66, an additional 15 other projects focal areas, embankments, veld grass, park lands and have required water use licenses (WULA) in terms of sports fields. National Water Act 36 of 1998, and two projects required Heritage permits in term of the National The intention of the exercise was to create uniformity Heritage Act. These are still in progress. of site maintenance and to ensure that the correct horticultural equipment was allocated and used at the EMS monitors and rehabilitates erosion that occurs over, identified areas. All the major Rand Water site entrances and adjacent to pipelines. During the year under review, were revamped and upgraded, with Water Wise investigations by the EMS Rehabilitation unit observed an principles used as a design criteria in all the upgrades. additional 16 eroded areas that required intervention. This brings the total number of erosion incidents that The entrance to the Rand Water Head Office received have been addressed and these still require rehabilitation special attention with the installation of a new water to 11. During the 2009/2010 year, the EMS feature and upgrades to the surrounding indigenous department conducted 20 erosion interventions on landscape. Part of this site upgrade included the pipelines and other infrastructure with a total footprint installation of new information boards along walkways. of 28 927 m2 of rehabilitation. During the year under review, the University of South Site Maintenance Africa (UNISA) undertook a study and finalised the first phase of identifying all listed Alien Invader Plants During the year under review, EMS’s site mainte- at selected Rand Water sites. This information was nance department maintained landscapes totaling incorporated into site invader removal programs and 6 404 504 m². Rand Water’s main sites, i.e: Rietvlei, implemented with emphasis on Category I invaders. Zuikerbosch, Central Depot, Vereeniging, Zwartkopjes At Zwartkopjes 1000m² of category I invaders were as well as Eikenhof, Palmiet and Mapleton were zoned removed, and 22 500m² of Category 2 invaders were into various maintenance areas. The zone classification controlled to prevent spreading. used was standardised across all sites, according to set criteria such as land use, maintenance frequencies, type A second phase has been implemented to take this of horticultural equipment required and land gradient. programme to the other Rand Water sites to be able to
Rand Water Annual Report 2009–2010 50 further comply with legislation. Another study currently The EMS nursery was also upgraded to accommodate underway by UNISA, is investigating the various methods and assist the EMS Rehabilitation Teams with the storage of maintaining veld grass areas on sites that will reduce and protection of rescued plants to comply with EMPs. maintenance costs and ensure reduced erosion whilst maintaining biodiversity. A total of 1,106 plants of nine species were rescued from these sites and these are being stored at the nursery The EMS department also provides support to other until the projects require them for rehabilitation. departments in Rand Water. This includes managing site maintenance contracts on selected sanitation sites where Rand Water is assisting local authorities.
51 Rand Water Annual Report 2009–2010 Strategic Customer Partnerships
During the year under review, Rand Water again The Rand Water Forums conducted its Customer Value Management (CVM) Survey to substantiate on its customer requirements, and The Rand Water Forums (Water Sector Forum, Mining to ensure that it continues to remain within reach of its Forum and the Industry and Direct Consumers Forum) strategic objectives of satisfying all its customers. have undergone a review to align themselves with Rand Water’s new corporate objectives. This provided a The below table is the CVM Survey overview of the platform for a new strategic direction for the forums and 2009–10 financial year, and its comparison with the its initiatives. previous two financial years.
Summary of Customer Value Management Evaluations
2008 2009 2010 Difference Categories % rating % rating % rating (2009-2010)
Overall perception of value 73 82.5 87.1 4.5 Overall product Index score 79.5 86.2 92.6 6.4 Overall forward planning Index score 72.4 82.9 87.4 4.5 Overall water resource Index score 70.3 83.6 84.7 1.1 Overall operations and maintenance Index score 73.0 83.0 87.1 4.1 Overall billing & administration Index score 74.7 82.3 89.6 7.4 Overall strategic competency Index score 74.9 84 89.6 5.7 Overall communication Index score 70.8 81.6 83.4 1.8 Overall relationship building Index score 73.5 83.9 87.6 3.7 Overall price Index score 64.3 73.5 79.6 6.1 Overall image Index score 73.2 85.2 89.1 3.9 Overall RAE Index score 71.5 80.0 84.8 4.8
Rand Water Annual Report 2009–2010 52 A working group was established with the intention of a customer’s request, an email is automatically of promoting the development and maintenance of generated back to the customer to evaluate the level comprehensive strategies and plans for the forums. of satisfaction.
Rand Water’s Customer Services Centre is one of the • The Customer Relationship Management (CRM) organisation’s key points of contact. During the year Offline Working system - enables Rand Water staff under review, the Centre has remained committed to members who are not office bound to be able high levels of service delivery. to work off line on the CRM system. The System automatically updates when the staff member The following new systems were introduced to improve reconnects to the network. customer service levels: • The Majuda Voice Logger – the system was • The customer feedback email system – this is a introduced for an assessment of quality management means of securing customer feedback on the purposes and it strives to ensure consistency on good services provided by the Centre. On finalisation quality customer interaction.
Summary of service level evaluations
89 2010 90 90.5 87
93 2009 90 95 93
89 2008 90 88 89
74 77 2007 72 72
0 20 40 60 80 100
Overall Rating Municipalities Mines Industries & Direct Consumers
53 Rand Water Annual Report 2009–2010 Strategic Customer Partnerships (continued)
Service level agreements Potable water sales
Each year Rand Water evaluates its Bulk Water Supply The potable water sales during the year under review Contract service level compliance, to ascertain how are 1.42-percent below that of the 2008/09 financial compliant the organisation has been with regards to year. This is attributed to the heavy rains experienced the implementation of the agreed upon operational within Rand Water’s area of supply, as well as the standards with its customers. Although the mines and various water demand management interventions made industries contribute 7-percent of Rand Water revenue by the different customer segments in response to the as compared to the 93-percent contributed by the national call to reduce non revenue water by 15-percent. municipalities, the mines and industries remain equally The consumption of water by mines has also decreased important to Rand Water. During the year under review, by 2-percent in the past five years due to closure of certain the municipalities’ service level ratings remained at mining operations as well as the increasing useage of 90-percent, the mines have decreased by 5-percent grey water for production purposes by mining houses. and the industries and direct consumers have also
shown a decrease from 93-percent to 87-percent. Municipalities consume the bulk of the potable water; the amounts consumed by the mines continues to drop, and the industry and direct consumer consumption levels Rand Water’s Five-Year Potable Water Sales Growth have remained stable.
Potable Water Sales 3 800 3 773 8,0% 3 710 6.82% 7,0% 3 700 3 668 3 649 6,0% 4 000 5,0% 3 600
3.39% 4,0% 3504
3 500 3454
3 500 3,0% 3 383 3 434 3 368
2,0% 3 150 3 400 1,0% 3 000 0,0% 3 300 -1,0% -0.52% 2 500
3 200 -0,16% -2,0% Percentage growth (year-on-year) -1.70% Potable water sales – (megalitres/day) 2006 2007 2008 2009 2010 2 000 Total average daily sales (ml/day) % Growth 1 500
1 000 Rand Water’s Bulk Water Sales % Distribution 500 238 234 229 217 207 50 48 51 51 48 1.3% 0 5.59% 2005– 2006– 2007– 2008– 2009– 2006 2007 2008 2009 2010
Municipal Customers
93.11% Mining Customers Industrial/Other Customers
Municipal Customers Mining Customers Industrial/Other Customers
Rand Water Annual Report 2009–2010 54 Corporate Communications
Potable Water Sales
Rand Water’s Corporate Communications Division is organisations based internationally, in countries including 4 000 responsible for internal and external communication. the United States, Ghana and the United Kingdom. 3504
3 500 3454 During the year under review, the division has continued 3 383 3 368
3 150 to support the Board and the PIC, and has added During the year under review, Rand Water’s website, 3 000 value in raising the profile of the organisation. This was www.randwater.co.za was visited by 326 856 unique achieved by way of events, publications, conferences, visitors, with visitors to the site showing a keen interest 2 500 exhibitions, stakeholder engagement, and the content in data on water, infrastructure, sales and customer management of the Rand Water website and intranet. service. 2 000
Corporate Communications also manages the Internal liaison 1 500 organisation’s relationship with local and international Corporate Communications created several activities to media houses. It has provided support to other divisions 1 000 support internal communication at Rand Water during within Rand Water, by means of event management, the year under review. The events were specifically to 500 international liaison, national, provincial and local bring Rand Water staff together in accordance with 238 234 229 217
207 government engagement, the provision of information
50 48 51 51 48 the organisation’s values; these included Heritage Day, 0 and corporate gifts for key stakeholders. 2005– 2006– 2007– 2008– 2009– Women’s Day, World AIDS Day, National Fly the Flag 2006 2007 2008 2009 2010 Day, Celebrations before the Opening of the 2010 FIFA External communication Municipal Customers World Cup, etc. Mining Customers Rand Water received free media coverage with an Industrial/Other Customers Advertising Value Equivalent (AVE) – the monetary value As a way of enhancing internal communication, a highly attached to free media coverage, of R 13, 563 million popular blog on the Rand Water intranet was established for both electronic and print media during the year under with topical discussion topics recommended by staff. review. During this period more than 500 news articles Internal information sharing within the organisation was were generated, of which 122 were published by media made easy by means of a weekly electronic newsletter.
55 Rand Water Annual Report 2009–2010 Corporate Communications (continued)
The newsletter communicates organisational information with a solid human interest focus. This is apart from the intranet and the bulk e-mail messages which are sent to all staff as necessary.
International liaison
Corporate Communications provides strategic planning and co-ordination services profiling the organisation abroad, and also when Rand Water receives international delegations. Rand Water has regular professional engagements with counterpart organisations across the globe. During the year under review, Rand Water participated in sector-related events in Uganda, Singapore and Sweden. Rand Water also hosted delegates from Ethiopia, Nigeria, France and Swaziland on business visits to its head office and purification plants.
Stakeholder relations
Rand Water has supported the Department of Water Affairs on numerous professional sector-related activities, and during the year under review, it also co-operated with the Parliamentary Portfolio Committee on Water and Environmental Affairs. Rand Water has also initiated numerous engagements with the Provincial Legislatures in Gauteng, the North West, Mpumalanga and the Free State, as well as local authorities within its area of supply, and has followed these up with key networking engagements for members of the Board and the PIC.
Corporate Communications has also continued to use Rand Water’s Water Wise sub-brand as a means of promoting water conservation messages with communities within its area of supply.
These engagements often involve partnerships with its local government partners, including the City of Tshwane, Ekurhuleni Metropolitan Municipality, Mogale City Local Municipality, Kungwini Local Municipality and the Emfuleni Local Municipality.
During the year under review, Rand Water has supported its Continental and South African water-sector partners on many initiatives including the Second Africa Water Week and the 2010 WISA Conference.
Rand Water Annual Report 2009–2010 56 Information Communication Technology
During the year under review, Rand Water achieved Any risk to Rand Water due to IT failure and information a 98.8-percent availability of its core Information management was significantly reduced over the last Communication Technology infrastructure; and further two years. The position of the IT related risk on Rand improvements are already in place to improve this to Water’s Residual Risk Register has moved from 8 to 16. 99.9-percent within the next two years. This was principally due to improvements and additional mitigation measures implemented during the financial The server virtualisation and consolidation is already year, including, but not limited to, the implementation in progress as part of a larger Green Information of adequate network redundancy on the wide area Technology (IT) strategy for the organisation. Rand network using wireless technology; the improvement of Water’s current IT Governance Framework will be the integration between systems based on a middleware replaced during the next financial year with a King mechanism; obtaining ISO 9001 certification for the III compliant IT Governance Framework that will be IT function; and an IT security review conducted by the integrated into the corporate governance framework. National Intelligence Agency.
57 Rand Water Annual Report 2009–2010 Logistic Services
Rand Water’s Logistics Services Division comprises three • An energy-saving Initiative was introduced where the units, i.e. Environmental Management Services (EMS), Building Maintenance unit and Protective Services Facilities Management and Transport. The division staff ensured that lights were switched off in offices provides Rand Water with comprehensive logistics and boardrooms that were not occupied in the services that are strategically aligned, cost effective, and building. In addition, the unit has, in conjunction with ensure compliance with environmental laws to enhance Rand Water’s Chief Electrical Engineer, embarked Rand Water’s image, whilst at the same time increasing on a project to install a new Building Management the value of the organisation’s assets. System that will support the efficient management of energy. This project is due for completion in During the year under review, Logistics Services had a December 2010. number of highlights as mentioned below; • During the year under review, the Canteen at • Logistics Services took over the responsibility Rand Water’s Head Office set itself a target of a for the daily maintenance of Rand Water’s staff 25-percent increase in the number of healthy meals accommodation at the Zwartkopjes and Zuikerbosch available on its menu. This initiative was set in place sites. to encourage Rand Water staff to make healthier eating decisions with regards to their choice of • The division also undertook numerous projects to meals. maximise space optimisation in the Rand Water Head Office building without the expense of Transport Management constructing new building space. An additional Transport is an important factor of production in the 120 workstations were created in this exercise, Water Services Value Chain. Rand Water’s transport including a new Programme Management Office management unit continued to render a solid supporting (PMO) for the Strategic Human Capital portfolio. role to the organisation. The space optimisation project will continue into the new financial year.
Rand Water Annual Report 2009–2010 58 Water Wise
Water Conservation
The Water Wise unit in Rand Water’s Environmental for safe use of grey water in gardens, Testing of three Management Services department focuses on the basic grey water filtration systems for use in the gardens, education of members of the public and the “green Suggested safe planting distances of trees from pipelines, industry” on a formal and informal basis. This is achieved and Low water use plant list for Gauteng. through various activities, such as research, displays, exhibitions, development of educational material and Displays, education material and projects media articles. The target audience are adults who have The Water Wise trophy was again sponsored for two an interest in gardening or vegetable gardening; as well garden design shows, hosted by the Lifestyle Garden irrigation suppliers, landscapers, greenkeepers, municipal Centre and at the Garden World Garden Centre. The parks departments, etc. aim with both the shows is to inspire new landscapers as well as the public, to incorporate more Water Wise Research Projects principles in their landscapes. A trophy for the best Water During the year under review, the agreement was signed Wise Landscape by a landscaper in South Africa was with UNISA, and it allows for both organisations to awarded at the South African Green Industries Council undertake selected environmental and Water Wise convention. research, continued to assist with research projects in various fields. Among them was a research project The South African Nursery Association’s marketing which was completed “The Water Wise Guide campaign, Life is a Garden, again joined Rand Water to Golf Courses” (this can be downloaded at with a campaign which was supported by more than www.randwater.co.za). 50 Garden Centres. Demand for the material produced in this campaign also came from beyond Rand Water’s Projects that are either ongoing or close to completion, area of supply. include: Recycling grey water in nurseries, Guidelines
59 Rand Water Annual Report 2009–2010 Water Wise (continued)
The Water Wise demonstration garden at the Delta Environmental Centre in Johannesburg continued to be maintained (attracting more than 15 000 visitors during the year under review). A second demonstration garden is in the planning phase and will be available for viewing during 2011 at the Walter Sisulu Botanical Garden in Roodepoort. Banquet” in September 2010 at the IWA World Water Congress in Montreal, Canada. During the year under review, 8 educational z-folder brochures were created, namely: Vegetable gardening, Delta Environmental Centre Climate change, Lawn care, Mulch, Irrigation, and Rand Water and the Delta Environmental Centre, north Invasive Alien plants, Water Wise plant characteristics of Johannesburg, have collaborated to form a successful and Capture the rain. A 32 page Vegetable Gardening partnership, which aims to continuously facilitate and brochure was also produced. develop new and stimulating educational workshops.
International Award During the year under review, the following new During the year under review, Rand Water’s Water workshops were developed: Wise Education Team (WWET) won the “School Information Programme” category of the International • An Acid Mine Drainage Workshop in collaboration Water Association (IWA) Marketing & Communications with Rand Uranium and the Federation for a Award for 2010, for the second time. The winning poster Sustainable Environment (FSE). depicted “The Water Wise Arena”, which is an inflatable football activity that links the “Water Wise” message • A number of short Foundation Phase activities to soccer and is used for educational workshops for to supplement the puppet show and roadshow schools. The winners of the five categories will be judged workshops, i.e. Water Wise Puzzles; the Manzi against each other and an overall winner of the IWA Treasure Hunt; Sorting Water ‘Rights’ from Water Marketing & Communications Award is scheduled to ‘Wrongs’; ‘Fill in the missing words Buttons’; and be announced at the “IWA – Project Innovation Awards ‘Learn the South African Flag and National Anthem’.
Rand Water Annual Report 2009–2010 60 • A new Water Cycle Workshop for Foundation • An entertaining puppet show, as well as an and Intermediate Phase learners to assist learners interactive drama that highlights the health problems in understanding the processes of the natural that arise from poor hygiene and sanitation practices water cycle. in schools which assists learners in developing ways to encourage cleanliness and hygiene in schools was • A Water Conservation demonstration to enable developed. facilitators to present to a large number of learners at one time. This demonstration takes the format of an Other highlights during the year under review: interactive and visually stimulating water audit and • The Mazda Wildlife Fund continued their sponsorship demonstrates to learners how much water is wasted of a Mazda bakkie for use at Water Wise in simple daily activities such as brushing teeth and workshops. washing hands.
• The WWET facilitated a workshop for the second • A Water Hygiene and Sanitation Workshop to year at Boksburg Lake and worked with schools address the issues of cleanliness in school bathrooms. and local organisations to celebrate the increase in awareness of pollution at the Boksburg Lake. Water Wise displays and exhibitions
Number of visitors Return on Investment per Place of event Type of event Total cost of event (R) attracted to event visitor Garden World Garden Garden design 71 000 57 000 1.25 Centre exhibition Clear Water Mall Gardening display 22 500 3 000 0.13 Garden design Lifestyle Garden Centre 100 000 21 000 0.21 exhibition Exhibition for home Home makers expo 47 594 36 180 0.76 owners Gardenex expo Exhibition for Gardeners 38 266 16 550 2.3 Total 279 360 133 730 0.47
Water Wise advertorials and media articles
Approximate No. of articles Media monthly Water Wise message placed in the year. circulation
4 SA Garden/SA Tuin 54 001 Articles on Water Wise gardening for gardeners The Gardener/ 4 50 558 Die Tuinier 2 Environmental Management 4 000 Technical Water Wise articles for the Green Industry 2 Landscape SA 4 000 4 Golf Course Managers 5 000 Technical Water Wise articles for the golf course industry 2 Compleat Golfer 25 112 SA Besproeings Instituut Technical Water Wise article for irrigation farmers 1 5 000 (Irrigation magazine) 1 Beeld 95 914 Various Water Wise messages for general public 2 Get-IT 30 000 1 Southern Chronicle 39 598
61 Rand Water Annual Report 2009–2010 Water Wise (continued)
participated in the workshop during sessions from January to July 2010.
• All four of the WWET’s adopted Eco-Schools were awarded their Eco-Schools certificates.
• A group of first year nursing students returned to Delta for their third year to attend the WWET Water-borne Diseases and Sanitation Workshops, which ran from February to May 2010.
“Examples of the wonderful feedback received”
“The show is excellent.”
“Extremely useful, relevant and clear. Thank you!”
“Friendly, good service, very informative.”
“Baie dankie, die kinders het dit baie geniet!”
“Very organised centre, absolutely awesome, very impressed!”
“Dit was puik! Ongelooflik leersaam. Baie dankie!” • The WWET worked closely with the Gauteng Alliance and the Gauteng Department of Agriculture “Extremely relevant, well-facilitated course!” and Rural Development (GDARD) in facilitating weekend Land Care camps at the Suikerbosrand “The Water Wise people made our kids so happy; Nature Reserve. we would like them to come again!”
• Financial sponsorship was received from Digby Wells “The staff is so enthusiastic and energetic! Associates, and learners from Craighall Primary Very well done, keep it up guys.” School, which allowed the Delta WWET to hold a wonderful year-end Christmas party complete with Rand Water Nature Centre presents, snacks and lunch for 180 children from the Passionate Feeding Scheme in Kagiso. The Rand Water WWET at the Rand Water Nature Centre conducted environmental workshops both at the • The team presented a very successful and enjoyable centre, and in communities; educator workshop on Wetlands with educators from the West Rand. • Sponsored learners from St Vincent School for the Deaf to attend a workshop at Rand Water Nature Centre. • The Acid Mine Drainage Workshops were initiated together with the Ahmed Timol Secondary School • During National Water Week 2010, activities were in Mogale City, whose Grade 11 and 12 learners conducted at Danielsrus and also at the Eco Schools
Rand Water Annual Report 2009–2010 62 in Katlehong which include the Monde, Reahile and • In May 2010, Manzi, the Water Wise mascot, Izubukho primary schools. was invited to be present at the Minister of Water and Environmental Affairs’ Budget Vote Speech in • In May 2010 the WWET conducted workshops at Parliament. Mogale City Local Municipality and a total of 2382 learners and 72 educators attended the workshops. Vereeniging Purification Station
Some of the highlights at the centre include: Highlights for the year include:
• The environmental programme which was a • Hosting their first birthday party for Grade 0 learners partnership between Delta, GDARD, Rand Water at Cam Kidz nursery school in Vanderbijlpark on and Birdlife for Katlehong and Alexander schools 28 July 2009. came to an end in October 2009. To finish the project off the participating schools had to enter a • Running workshops and roadshows at Ozisweni Green Project Competition. The winning schools Science Centre in Secunda in celebration of National were announced at an Environmental Youth Seminar Science Week from 3 to 7 August 2009. which was held at Rand Water’s Head Office on 10 October 2009. Ten learners were elected from • The Sci-Bono Discovery Centre in Johannesburg, the seminar by their peers to be members of the new sponsored a group of FET learners in August to visit Gauteng Alliance Youth Forum. the station as part of the national “Take a Girl Child to Work” campaign. • The Christmas for Kids function, which is an initiative by the WWET and Rand Water’s Scientific • During August 2009, the WWET took part in Sasol Services, was held at Rand Water’s Head Office on Techno X. The team not only ran workshops at the 14 December 2009. A total of 50 learners, who Vereeniging Station, but also set up an exhibition are orphans from the Agape Legacy organisation, stand at the Boiketlong Centre in Sasolburg. 21 311 received their gifts which were donated by Rand visitors passed through the gates of Sasol Techno X Water staff and fun activities were facilitated by and an average of 600 learners per day, took part in the WWET. the Water Wise exhibition and activities. In addition, the Water wise exhibition won the Best Exhibition, • Environmental Management Services provided furniture Business Category Award. and a boardwalk at the Rand Water Nature Reserve for the WWET to use during school workshops. • During August 2009, the WWET held two workshops sponsored by Eco-Access, in which one • Hartford College was awarded an Eco School’s group of learners was from the Ekurhuleni School for Green Flag. Hartford is an Eco School that is the Deaf. supported by the WWET. Manzi, the Water Wise mascot, had an opportunity to hand over the flag • In September 2009, the WWET facilitated Water to the school at the award ceremony, which was Wise Games and a Roadshow at the Johannesburg sponsored by Rand Water. Zoo in celebration of Arbor Day.
• A new programme on medicinal plants has been • From 12 to 16 October 2009, the WWET introduced at the Rand Water Nature Centre. The facilitated workshops on Global Warming and learners will be learning more about the importance Climate Change, as well as an exhibition at Sci-Bono of indigenous plants and their medicinal use and why Discovery Centre in celebration of Earth Sciences they must be conserved.
63 Rand Water Annual Report 2009–2010 Water Wise (continued)
Week. This was an event co-sponsored by Sci-Bono • Highlights during April 2010, included the and the University of South Africa. roadshows that were held at 12 schools in Heidelberg as a joint project with the Sedibeng East • In October 2009, a Water Wise workshop was held district of Gauteng Department of Education. in Parys, Free State for the Voortrekkers on Wetlands. At this workshop an extensive wetland programme • Another highlight was an information session and was held on an actual wetland. roadshow that was held at the Recreation club for 96 Vereeniging station employees. • In February 2010, the WWET facilitated two roadshows at orphanages in the Evaton and • On 30 April the team assisted the Three Rivers Sebokeng areas. Rotary Club in Vereeniging with their Water Week celebrations at Meyerton High School. • The WWET was invited to do a workshop at the Pretoria Zoo at the Pan African Association of Zoos • In May 2010, two roadshows were held at the and Aquaria (PAAZAAB), International Zookeepers Riverside Hotel on the Vaal River with employees from Symposium. Many new contacts were made and in the hotel as part of their ‘Going Green’ initiative. addition the WWET activities were voted the best at The WWET will be working closely with the hotel on the Symposium. future projects.
• March 2010 highlights included workshops held with • The WWET also performed a roadshow for 1500 learners at the Sci-Bono Discovery Centre in employees and children at Columbus Steel in celebration of Health Sciences Week. Middelburg.
• On 13 March a teacher workshop was held at • During June 2010, the WWET held a workshop and Emmasdal High School in Heidelberg and a letter of roadshow at the Johannesburg Zoo in celebration of appreciation was sent to the WWET by the Gauteng World Environment Day. Provincial Department of Education. • The WWET, together with the Sedibeng Alliance for • On 17 & 19 March 2010 the WWET facilitated Street Children brought a group of street children to the Water Wise Roadshow for Rand Water’s the Centre to learn about being Water Wise. Corporate Communications Division for 180 adults in Carletonville and Khutsong in celebration of • Eureka Special Needs School also visited the Centre National Water Week. in June 2010.
Table 1: The number of learners and educators that attended workshops, roadshows & exhibitions from July 2000 to June 2010.
July 2000 July 2001 July 2002 July 2003 July 2004 July 2005 July 2006 July 2007 July 2008 July 2009 – June – June – June – June – June – June – June – June – June – June 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 No. of Workshops, Roadshows & 190 250 227 274 293 337 359 408 589 587 Exhibitions No. of Learners 12071 15744 14422 18792 19636 18585 20360 36050 57650 67620 No. of Educators 825 1127 888 765 975 1199 1228 2080 1699 1853 No. of Adults 1136 1327 TOTAL 12896 16871 15310 19557 20611 19784 24464 38130 60485 70800
Rand Water Annual Report 2009–2010 64 Jewish National Fund/Walter Sisulu Environmental Centre
During the year under review, Rand Water again supported the Jewish National Fund/Walter Sisulu Environmental Centre in Mamelodi for Water Wise workshops at the Centre. A new and successful water wise programme for Grade 3 learners was developed. Ten schools in Mamelodi, Tshwane participated in a ‘Clean up Week’ with the emphasis on cleaning waterways and keeping them clean. A ‘Poster Competition’ was also held with these schools. During National Water Week three schools from Atteridgeville, • Reprints of the Water Wise droplet, the Water Wise and one school from Cullinan, attended a water Beat, and the Water Wise DVD. programme at the centre. • A Water Wise Banner for “Manzi’s Water Wise Score with Water Wise Education Material Roadshow”
During the year under review, the Water Wise Education • The Witness newspaper in KwaZulu-Natal, requested Team also worked with learners and educators by to use the artwork and text from the “Open the Door producing materials and promotional items that spread the to a Water Wise House” z-card for an article on the Water Wise message. Some highlights include: WISA Conference during April 2010. Permission was granted. • Manzi’s Water Wise Mission (printed in the Spur restaurant’s Totem Magazine) • In November 2009, Heinemann Publishers requested permission to use the Water Wise Pledge • Make your Own Manzi (printed in the Spur in the Heinemann textbook titled “Spot on Literacy restaurant’s Totem Magazine) Grade 1” for South African schools.
• The Story of Tap Water (printed in the Envirokids • In November the Sultanate of Oman (Public Authority Magazine) for Electrical and Water) requested the “What does it mean to be Water Wise?” brochure in Arabic. • Manzi’s 2010 Calendar Table 2: The quality of the education service as assessed • Members of the public requested for Water Wise by educators. material to be made available in more of the official languages; articles have since been translated into Standard of Service measured Afrikaans, isiZulu and Sesotho, these will also be by educators through the use of Overall Service published on the website. an Evaluation Form according to financial years: July 2003 – June 2004 91.95% • The Water Wise Brand Guidelines have been July 2004 – June 2005 93.2% updated and distributed to all divisions in Rand July 2005 – June 2006 93.28% Water who utilise the Water Wise brand. July 2006 – June 2007 95.16% July 2007 – June 2008 93.57% • The Water Wise logo is presently being registered July 2008 – June 2009 96.07% as a trademark by Rand Water in a range of NICE July 2009 – June 2010 95.27% classifications.
65 Rand Water Annual Report 2009–2010 Strategic Human Capital
Organisational Development and Design
The Organisational Development and Design (ODD) For this purpose, the Program Management Office was department is located within the Strategic Human established to create capacity in delivering on these Capital Portfolio. The rationale for the introduction of this initiatives through the following workstreams: component was to enable the implementation of the new • Business Case for Change (Business Modeling) Strategy of Rand Water. Rand Water faces many challenges - the level of strategic alignment, business efficiency, and the The following are some of the key objectives that ODD attraction and retention of critical skills to name has to enable the business with: a few. • Transformation and Change Management • Organisation Design The focus of this work stream is to articulate the drivers • Culture Change of stakeholder value in the business and to align the • Driving Business Efficiencies and Effectiveness various strategic activities across the business with the business objectives. This will drive focus and the best To enable the achievement of these key business allocation of resources to ensure value creation, and objectives, ODD has identified strategic initiatives the best return on investment. To ensure a constant which will be delivered through a structured program focus on value creation, a single view of initiatives and in order of priority to the business through an will be created. In addition to this, measures will be integrated delivery model in partnership with the Talent identified to track and monitor the performance of Management department. strategic initiatives against these measures.
Rand Water Annual Report 2009–2010 66 • Leadership Modeling This work stream deals with the change management A leadership brand develops when leaders’ and business impact requirements associated with the knowledge, skills and value focus employee behaviour alteration to any given organisational structure. The on the factors that target the issues that customers main aim is to mitigate the major risk of reduction in care about. Good leaders build a brand in their human and departmental performance – this needs to organisation and role model the brand through their be done via comprehensive impact identification and behaviour. To build the brand, Rand Water will be management. developing a set of leadership behaviors that will become the benchmark for leadership in Rand Water • Re-engineering and the enabler to achieving the vision and strategic As Rand Water transforms to meet the new goals related to high performance and innovation. directives associated with a change of strategy, the This will be known as the Leadership Charter. organisation needs to align itself to deliver on the new mandate. By implication, this will necessitate a This will be developed through workshops with the review and alteration to the way Rand Water is both PIC and Senior Management and will be cascaded structured and the way it does things, i.e. Process. down the levels of management through workshops to To meet these new needs the ODD department is develop and embed the leadership behaviours. embarking on enabling Rand Water’s Organisational Redesign. This will involve activities that recommend To build a culture of high performance, values structural changes as well assist in managing the needed to be lived. Vision and values alignment implementation of these changes into the business. workshops are cascaded through all the levels of the organisation. These workshops will be facilitated Cognisance will have to be taken of the impact this by ‘Values Facilitators’. ‘Change Champions’ will will have on, among other things, reporting lines, also be identified and developed. These individuals specific staff members and their roles as well as will undertake continuous improvement projects to remuneration, labour implications and the like. These further enable the organisation’s performance and impacts will then be managed via a comprehensive turnaround at all levels. impact and change management plan that will ensure a smooth transition to those involved. • Transformation and Change Typically any ODD change will have a number From a process perspective, what we do down of consequences. In the short term, ODD changes to an individual level needs to be reassessed and will result in a reduced organisational performance. continually interrogated to ensure that all activities are If ODD changes are aligned to strategy, operating aligned to our strategy as well as selected operating models and processes – they will in the medium to models. To this end, the ODD department will long term, improve organisational performance. complete an analysis of existing business processes, Where this alignment is not established, the their level of efficiency as well as opportunity for impacts understood and managed – organisational improvement. This will also include an investigation changes lead to reduction of performance at both into what each process aims to achieve, best an individual and organisational level. There are practice, measurable indices linked to success a number of dependencies to ensure performance and roles associated and responsible for each improvement, one of which is the key change step. The long term view is to refine key processes management considerations and activities such and ensure their adoption into the business context as leadership alignment, strategic context and in a meaningful, beneficial and Rand Water expectation management to name but a few. centric manner.
67 Rand Water Annual Report 2009–2010 Strategic Human Capital (continued)
Legislated Training • Re-organisation of functions Legislation requires that Rand Water ensure that training During the year under review, an enterprise is conducted for employees undertaking specific activities wide exercise was embarked upon by the ODD which include performing work or operating equipment department to increase Rand Water’s agility and for business operations. It is for this reason that Rand responsiveness as well as enabling new operating Water has Training Programmes that responded to models across all portfolios. This exercise is currently compliance with relevant legislation and associated undergoing a consultation and approval process with business needs. Legislated training was prioritised and all stakeholders. Furthermore, to enable operational targets defined as per business needs. efficiencies across the business, existing processes are being streamlined with this exercise running into The table below indicates completed legislated training the next financial year. per occupational category for the year under review.
To manage the Rand Water Transformation journey, Targeted Courses a five year plan has been mapped out with key projects in support of the Business Objectives. The • SHERQ desired end state is to contribute to the Transformation • Lifting equipment of the Rand Water business, which is compatible with • Protective Services industry best practice. • ISO related • Incident investigation Capacity Building • Procedure and observation • Environmental awareness Rand Water’s focus has been on providing internal • National Key Point opportunities for both internal employees and external • Fire Fighting community. The key focus has been on centralising • First Aid Capacity Building initiatives to ensure integration with • High Voltage Switching. Talent Management. • Access to Motorised Areas • Confined Spaces The organisation has focused on prioritising these initiatives to ensure value add to business requirements especially within the operations environment. Below is an indication of all the initiatives that have been successfully implemented.
2009/2010 Completed Training per Occupational Category.
Sum of headcount Gender Race Female Male Grand Female Male Total Total Total Occupational Category African Coloured Indian White African Coloured Indian White Clerk 99 18 10 58 185 91 6 9 23 129 314 Craft or related trade worker 33 33 145 10 5 104 264 297 Elementary occupational worker 136 12 148 400 8 5 51 464 612 Legislator, senior official or manager 173 9 31 30 243 381 10 42 169 602 845 Plant or machine operator or assembler 31 31 211 2 48 261 292 Professional 237 17 50 74 378 199 6 27 62 294 672 Service or sales worker 121 5 2 128 334 2 8 244 472 Technical or associate professional 221 12 16 71 320 289 32 33 203 357 877 (other) 53 13 7 11 84 1-7 3 17 127 211 Grand Total 1104 74 114 258 1550 2157 79 121 685 3042 4592
Rand Water Annual Report 2009–2010 68 Techincal Disability Learnership May/June 2010.
Female Female Total Male Male Total Grand Total Disability African Coloured African Coloured White Mental 5 3 8 10 1 2 13 21 Physical 3 3 3 Grand Total 5 3 8 13 1 2 16 24
Target Audience Skills Development Strategy through the following initiatives: • Operators and Artisans • Protective Services Personnel • ABET • Supervisors Rand Water embarked on providing learning • Managers opportunities to internal employees and external community through Sector Education and Training SETA Funded Learning Projects Authority (SETA) funded programmes in order to support the National Skills Development Strategy. Rand Water Rand Water created a culture of continuous personal have up-skilled and re-skilled on numeracy and literacy development among employees with potential. Capacity- skills to enable effective communication in the workplace. Building processes equipped individuals with the understanding, skills, access to information, knowledge • Learnerships and training to enable them to perform effectively. During the year under review, Rand Water embarked Learning projects were aligned to institutional and legal on the Technical Disability Learnership programme in framework development making legal and regulatory the Electrical field at NQF Level 2 and targeted 50 changes to enable organisations and agencies at all candidates (25 external community members and 25 levels in the sector, to enhance their capacities. internal employees). The purpose of this programme was Rand Water fully complied, and is aligned with the to assist and enable managers in the Operations and Energy Sector Education and Training Authority (ESETA) other technical areas to increase their intake of people requirements, which enabled delivery of the National with disabilities upon completion of the programme with
69 Rand Water Annual Report 2009–2010 Strategic Human Capital (continued)
Social Economic Performance
Transformation Milestones for Rand Water
Rand Water views Employment Equity as a strategic priority, and is committed to ensuring implementation of the Employment Equity Act (‘the Act’). Rand Water has ensured that Employment Equity is aligned to the organisation’s strategic objectives and is integrally linked to the Talent Management and Capacity Building strategy.
Rand Water’s Employment Equity Strategy is designed in consultation with all relevant stakeholders, including the representative trade unions. Although it is anticipated that our Employment Equity Strategy will place emphasis on the intention of re-absorbing them into targeted positions. advancing designated group employees, Rand Water The duration of the programme was 12 months and the will strive to ensure that other deserving employees are envisaged completion date is April 2011. not unfairly denied access to growth and advancement opportunities on a progressive and structured career • Management Advancement Programme (MAP) path. The approach to Employment Equity is governed The Management Advancement Programme is a part-time by principles of equity, affirmative action and equal course designed to assist managers whose experience opportunity and fairness. and prime activities have been in a functional area. The objective was to give managers broad exposure Designated group status has been used as a ‘tie-breaker’ to the fundamental nature and process of management in the recruitment process, to ensure that where two and human behaviour within organisations. A total of suitably qualified job candidates are available, Rand 27 managers graduated successfully of which 26 were Water may prefer to appoint the employee from a from previously disadvantaged groups and 17 of them designated group, if that group is under-represented in were women. that position or occupational level. • Performance Management System (PMS) The PMS is an educational and change management Thus far, Rand Water has been successful in ensuring process that enables the alignment of strategic objectives that, in general, it strives to achieve the Employment to the organisation, teams and individuals as a response Equity targets as outlined in the Employment Equity to enhancing organisational performance. It is aimed Plan. Whilst there are some challenges in achieving at measuring performance at different levels to ensure these targets in areas like Engineering and Scientific consistency in approach. The target audience was Services, efforts have been made by way of introducing managers in the M – Q bands. A total of 590 managers Learnerships (such as the Technical Disability Learnership). were trained on the modules focusing on planning, contracting, reviewing and rewarding performance. Strides have been made in the employment of female The training programme was a success as it was employees, in areas that were previously male consistently evaluated and has received an average dominated. The organisation has also managed to report rating of 8 (on a rating scale of 1-10). successfully to the Department of Labour.
Rand Water Annual Report 2009–2010 70 To ensure that employee’s value diversity in Rand Water a Diversity Management pilot programme was introduced to test what diversity issues people were facing. A “Train the Trainer” programme was implemented as part of the phase 2 of Diversity Management.
In order to ensure that maximum participation is derived from all Rand Water Employees, a Consultation Strategy has been developed as well as a Transformation Forum document. This strategy ensures that all representatives within the Employment Equity Forum are visible and are known to all employees within the organisation.
Composition (%) of Blacks & Women Compared to the Gauteng Average
According to Statistics South Africa, the percentage of Blacks (ACI) in Gauteng is 74-percent. All males (ACI and white) comprise 51-percent and all females (ACI and white) comprise 49-percent of the population. supply. With its new growth strategy, the organisation Rand Water has always set its targets in line with is compelled to relook at this, and use the national Gauteng Demographics, which is its largest area of demographic as its benchmark.
Composition of Blacks and Women in Rand Water at M-Q Management (June 2010)
Level Hay Band Total Staff Aci Females Executive Management Q 8 8 4 Senior Management P 47 34 13 Middle Management O 147 100 43 Junior Management N 211 156 86 Supervisory M 345 250 144
Staff Complement by Race and Gender at M-Q Management Bands.
Job Level African Coloured Indian White Total M F M F M F M F Executive Management (PIC) 4 3 0 1 0 0 0 0 8 Senior Management 12 7 1 2 8 2 11 1 44 Middle Management 52 24 3 2 13 6 36 11 147 Junior Management 74 57 6 1 8 10 37 18 211 Supervisory 117 94 12 8 10 9 62 33 345 TOTAL 755
The following are applicable definitions in this section: PDG – Previously Disadvantage Groups (ACI plus White Females) PDI – Previously Disadvantage Individuals ACI – Africans, Coloured and Indians Gender Equity – All Females PDW – Persons with Disability
71 Rand Water Annual Report 2009–2010 Strategic Human Capital (continued)
The below tables however, still takes the demographics of • Open Bursary Scheme Gauteng as its main source. Rand Water provided 14 bursaries for tertiary studies to external bursars. The aim of this scheme was Males Rand Water % Gauteng to address the scourge of scarce and critical skills African 1743 58.00% 73.80% shortages in South Africa, while building a pool of Coloured 47 1.56% 3.8% suitably qualified potential Rand Water employees. Indian 51 1.69% 2.5% The bursaries were awarded to persons from previously White 308 10.24% 19.90% disadvantaged backgrounds. The focus is on engineering TOTAL 2149 and scientific career paths that are relevant to Rand Water’s operational requirements and where there was Females Rand Water % Gauteng a comparative scarcity of potential employees with African 651 21.66% 36% appropriate tertiary qualifications. Coloured 34 1.13% 1.98% Indian 40 1.33% 1.24% • Staff Study Assistance (Study Grant) White 131 4.35% 10.24% Rand Water provided 153 internal bursaries for TOTAL 856 employees. The aim is to complement capacity building initiatives to enhance individual performance, career Composition of Disability aspirations and performance management gaps. Rand Water has made steady progress in improving This enables organisational performance by ensuring its employment of People with Disabilities (PWDs). The that training and development is aligned to Rand below figures reflecta decrease from 114 to 111 PDW’s Water’s key business objectives. of the total number of staff employed. However this will increase as Rand Water is currently running a Technical Organisational Wellness Programme Disability Learnership for people with disabilities, which A Wellness programme is a people management may result in permanent appointment of some of these system designed for early identification of employees learners, as they will be qualified in our technical with problems and the motivation of these individuals to operational areas. receive assistance to resolve these problems. An integrated wellness model was employed, which is a Categories June 2010 strategic intervention aimed at producing individual and Actual 111 All PWD organisational benefits by identifying and proactively Percentage 3.69% managing employees’ personal health and work related concerns and challenges. Bursaries
The Wellness Philosophy revolved around • Children of Staff Bursaries “A Sense of Well-Being” and included 7 dimensions Rand Water provided 84 bursaries for tertiary studies of Wellness: to children of staff. The availability of these bursaries • Social was viewed as a benefit of employment of the parent. • Occupational and Mental The bursary covered the cost of tuition, residential • Financial accommodation and text books for the duration of • Physical a first degree or diploma at a university of technology. • Intellectual The bursaries were for children studying at recognised • Medical tertiary institutions. The fields of study focused on university of technology studies relevant to Rand Water’s business operational requirements.
Rand Water Annual Report 2009–2010 72 Targeted wellness services were provided as follows: Recruitment • Wellness Management Rand Water made 307 new appointments and • Risk Management was committed to appointing employees in line with • Demand Management Employment Equity targets by implementing a more • Disease/Condition Management rigorous process that includes targeting EE candidates for • Disability Management various positions both in the core and support functions of
the business. Projects during the year under review included: • Wellness Week – September 2009. The strategic decision to ensure that the organisation met • World Aids Day – December 2009. the Employment Equity targets was to encourage diversity • Leprosy Awareness – January 2010. in the workplace. During the year under review the • A VCT campaign – February/March. following categories were appointed in the organisation: • Flu vaccinations – March 2010. • 85-percent Africans • Malaria Awareness – April. • 4-percent Indians • World No Tobacco Day – 31 May 2010. • 3-percent Coloureds • Men’s Sexual Health – June 2010.
73 Rand Water Annual Report 2009–2010 Strategic Human Capital (continued)
Employee Relations
The Labour Relations climate remained stable with no significant threat of turbulence during the year under review. Rand Water’s workforce is highly unionised. In 2008/9, 86.5-percent of the organisation’s employees belonged to a trade union. There was a slight increase in the level of unionisation during the year under review to 87.6– percent of employees. Rand Water has two recognised trade unions, namely the South African Municipal Workers Union (SAMWU) and the United Association of South Africa (UASA).
The table below depicts membership levels of trade union representation.
SAMWU UASA No Union Total % Support Staff 976 75.4% 207 16% 111 8.6% 1294 49.2% Operations and Artisans 333 65.6% 140 27.6% 35 6.9% 508 19.3% Officials 409 49.3% 240 29% 180 21.7% 829 31.5% TOTALS 1718 65.3% 578 22.3% 326 12.4% 2631 100%
Participation, Co-operation and Partnership
Since its inception in 1995, Rand Water’s Participation, the list of matters for consultation and information-sharing, Co-operation and Partnership (PCP) structures and to ensure common understanding and an efficient and processes have continued to foster a culture of trust, stream-lined process. creative solution-thinking and transparency, underpinned by the organisational values of Caring, Equity, During March 2010, trade union members and Rand Excellence, Integrity and Spirit of Partnership. Water’s Employee Relations management visited various large organised companies in Germany to benchmark Rand Water recognises that these are important elements against their employee relations model. It is evident that needed to yield an effective collective relationship the German economy is further enriched by its adoption between Management and the recognised trade unions of a participative, co-operative and non-adversarial towards consensus-seeking on policy matters that affect labour relations system. The knowledge learnt will employees. enhance Rand Water’s participative structures.
During the year under review, policies that have Ziyagezana Excellence Awards been jointly re-developed and endorsed through the Rand Water celebrated its seventh employee awards participative structures include the Code of Ethics, Fraud event in November 2009. The awards programme and Investigation policies and the Constitution of the endeavours to engender a feeling of appreciation Stakeholders’ Forum. and recognition to employees for their exceptional contributions to their areas of work and the organisation. The constitution of the Stakeholders’ Forum defines the PCP intent and system and has been revised to include
Rand Water Annual Report 2009–2010 74 Corporate Social Responsibility
Employee Relations
The Labour Relations climate remained stable with no significant threat of turbulence during the year under review. Rand Water’s workforce is highly unionised. In 2008/9, 86.5-percent of the organisation’s employees belonged to a trade union. There was a slight increase in the level of unionisation during the year under review to 87.6– percent of employees. Rand Water has two recognised trade unions, namely the South African Municipal Workers Union (SAMWU) and the United Association of South Africa (UASA).
The table below depicts membership levels of trade union representation.
SAMWU UASA No Union Total % Support Staff 976 75.4% 207 16% 111 8.6% 1294 49.2% Operations and Artisans 333 65.6% 140 27.6% 35 6.9% 508 19.3% Officials 409 49.3% 240 29% 180 21.7% 829 31.5% TOTALS 1718 65.3% 578 22.3% 326 12.4% 2631 100%
Rand Water is conscious of the significance of its Rand Water adopts a partnership approach when Participation, Co-operation and Partnership involvement in the implementation of Corporate Social implementing projects. Generally, water related projects Investment initiatives. The organisation implements are implemented on a cost recovery basis; and during Since its inception in 1995, Rand Water’s Participation, a two-pronged Corporate Social Responsibility (CSR) the year under review, the total net value of the project Co-operation and Partnership (PCP) structures and programme that focuses on both water related and non- implemented on a cost recovery basis, in partnership processes have continued to foster a culture of trust, water related initiatives. with other government departments amounted to creative solution-thinking and transparency, underpinned R 28 977 753.00. by the organisational values of Caring, Equity, Rand Water’s CSR initiatives during the year under Excellence, Integrity and Spirit of Partnership. review were aimed at achieving the following objectives: Water Related Programmes
Rand Water recognises that these are important elements • Improving access to water and sanitation • Socio-Economic development projects needed to yield an effective collective relationship between Management and the recognised trade unions Rand Water’s CSR projects aim to, among others, • Water Conservation aimed at making water towards consensus-seeking on policy matters that affect stimulate local economies through the work that is affordable by reducing wastage and unnecessary employees. performed by local communities themselves and their consumption relevant structures. Through adopting labour intensive During the year under review, policies that have methodologies, sourcing the bulk of the material from • Enhancing water security been jointly re-developed and endorsed through the local suppliers, training and recruiting local labour; the participative structures include the Code of Ethics, Fraud projects to provide for both job creation and income • Provision of strategic support to the water sector and Investigation policies and the Constitution of the generation. Stakeholders’ Forum. • Proactively and reactively protecting Rand Water pipeline and servitude The constitution of the Stakeholders’ Forum defines the PCP intent and system and has been revised to include
75 Rand Water Annual Report 2009–2010 Corporate Social Responsibility (continued)
The following projects contributed significantly to the • Assisting in the reduction of the number of service economic development of the areas where they were delivery backlogs. implemented: • Contributing to the achievement of the Millennium Access to water and sanitation: Development Goals. Winterveldt Community Sanitation Project A total of 900 UDS toilets were constructed and more than 2000 households were exposed to health and hygiene awareness training. The project has created direct employment opportunities for 130 members of the community (48-percent were women). Furthermore, the utilisation of local suppliers ensured that the greater portion of budget (90-percent) was invested with the Winterveldt community.
Water Conservation – Invasive alien plants eradication projects
Alien (non-indigenous) plants are a proven threat to water security since they deplete the water table of hundreds of litres of water per day. Investments in projects of this nature are of fundamental importance to ensure that there are enough water resources available for future generations. During the year under review, Rand Water entered into partnerships with Gauteng Department of Rural Development (GDARD) to implement alien plant removal projects in Elandsfontein and in the Mogale City Local Municipality. Rand Water also Rand Water has a proven track record in improving the invested R 2 million in projects to improve water security quality of life of the communities with its involvement in through the eradication of invasive plants in Kestel and sanitation projects through partnerships, most notably with Bethlehem in the eastern Free State. the City of Tshwane Metropolitan Municipality. During the year under review, a R 17 million project in the The intention of these projects is to bring those invasive Metropolitan Municipality was implemented in species such as blue gums, poplar and wattle trees partnership with the Winterveldt community. Rand Water under control in a manner that will contribute to the contributed R 7.5 million toward the project, which was conservation of the natural resources. aimed at, among others: Alien plant removal projects have created combined • Promoting correct hygiene behavioural practices. employment opportunities for 149 individuals in the Gauteng and Free State provinces. The majority of which • Improving sanitation facilities through the construction (60-percent) were women. Initial clearing work included of Urine Diversion System (UDS) and the ventilated pit the removal of 931 hectares of alien plants. Workers latrine (VIP) toilets. also underwent a series of training courses on these projects. In the Free State, four individuals were trained • Developing an enabling environment by skills training and used as contractors as part of Rand Water initiatives in which facilities are maintained and improved. toward the development of SMMEs.
Rand Water Annual Report 2009–2010 76 The following alien plant removal projects were implemented during the year under review:
Jobs Created Project Sites Funders Budget Males Females Totals Mogale City GDARD R 1,475,896 15 35 50 Elandsfontein GDARD R 1,524,124 21 24 45 Kestell Rand Water R 2,068,000 23 31 54 TOTAL R 5,068,020 59 (40%) 90 (60%) 149
Servitude Management: Encroachment projects Rand Water invested R 2 million during the year under review on encroachment management. As a result of the increased migration to urban areas and the establishment of informal areas, Rand Water Utilising community engagement opportunities, Rand is compelled to ensure that its water pipelines and Water was able to achieve the following deliverables; servitudes are not being encroached in a manner that that could compromise accessibility for maintenance • Installed 438 beacons, to promote pipeline visibility purposes. Currently, a large percentage of the Rand Water pipeline network is either being encroached, or is • Constructed 292 concrete sign walls to alert facing a risk of being encroached, as people continue communities of the dangers associated with settling to look for open space for the establishment of informal on Rand Water servitudes. settlements.
With this project, 460 local community members were Encroachments have the following associated risks; employed and where possible, the necessary materials and transportation services were all sourced from within • Potential danger to people in cases of pipe burst; the communities.
• Unauthorised connections to Rand Water’s bulk water pipelines to get access to drinking water
• Safety risks to Rand Water’s staff patrolling and/or servicing the pipeline
• Maintenance access to infrastructure is compromised
77 Rand Water Annual Report 2009–2010 Corporate Social Responsibility (continued)
Rand Water is engaging with the relevant local are required by DWA Directorates, management, sector authorities with a view toward moving those informal stakeholders, donors and general public as to how the communities which are currently being erected within sector is progressing in terms of implementing its various its servitudes. programs. A monitoring and evaluation project was initiated to assist the Department to conduct monitoring Awareness and Capacity Building – Community and assessment of the water sector performance in key Education Programme functional areas namely, Forestry, Water Resources and Water Services. Rand Water community education programme regularly affords community members (including ward councillors, Quarterly reports are prepared to inform various decision schools, community organisations) from within its area makers within the Department on the progress being of supply to tour its Zuikerbosch Pumping Station. made with regard to the implementation and attainment This is done to improve the communities’ knowledge of the key focus areas. Other key tasks and outputs that of the water purification process, and to be educated were successfully completed included the refinement on the value of water, and how to reduce water losses. of water sector key performance indicators, provision The aim of the programme is also to contribute to an of effective and strategic monitoring, evaluation and improved awareness of water related matters and also reporting support to various Directorates within the to encourage communities to understand their role in Department, and the preparation of the Masibambane conserving, and also paying for water. Annual Report.
This programme has been in active for more than five Water Services Policy Regulation years, and during the year under review, Rand Water allocated R 350 000 for its further implementation. Rand Water assisted DWA Water Services Regulation In addition, community members are also exposed Directorate with the aim of implementing a programme to water education programmes via community road aimed at building capacity regulation and compliance at shows and presentations within various forums/seminars regional and municipal level. in their respective communities. More than 3000 individuals from various communities within Rand Water The main objectives of the project are to: area of supply participated in the programme. • Provide management support to the Water Sector Water Sector Support Programmes Leadership Group Regulatory Strategic Task Team.
As part of the public-public partnership initiative Rand • Provide regulation support to the water services Water is currently partnering with the Department of authority and water boards Water Affairs to jointly implement various water sector support programmes in line with the Department’s • Provide regulation driven support for local government. strategic objectives.
Water for Growth and Development The following are projects that Rand Water is implementing in collaboration with various The Department of Water Affairs in the Free State Directorates within DWA: appointed Rand Water as an implementing agent to initiate and execute on behalf of it, the process of Monitoring, Evaluation and Reporting Programme auditing water for growth points, to assess current and future socio-economic growth as well as to develop a The Department of Water Affairs (DWA) has been strategy on how best the water sector can support and mandated to embark on rigorous monitoring, evaluation drive development. and reporting on water sector progress. Various reports
Rand Water Annual Report 2009–2010 78 Non-Water Related Programmes – Corporate Social Investment (CSI)
During the year under review, Rand Water allocated R2.6 million to various organisations as per the focus area outlined below:
HIV /AIDS Provide financial and advisory support to: • Home Based Care • Orphanages • Training programmes(HIV/AIDS related)
Education • Assist NGOs and Government remedial initiatives with regards to Children In Need of Care Children in need of care as stipulated in the Children’s Act No 38 of 2005. • Encourage and support the development of learning skills in childhood, and foster vocational training as a foundation for job creation in schools, with special reference to Schools that cater for children with Learning Difficulties, Learners with Special Educational Needs (LSEN’s)
Women Empowerment • Support women managed structures to improve skills and improve opportunities for job creation. • Provide funding for trauma and victim counselling Centers or support material, as well as resource provision
Youth Empowerment • Provide resources for the development of youth Programmes that improves the marketability of their skills. • Funding of equipment for the training of youth. People with Disabilities • Assisting Institutions or Non Profit Organisations (NPOs) with support to provide the required skills for staff to render the appropriate care for the disabled. • Resource provision to organisations that work with the disabled.
Health • Provide support to NPOs that address Health related Programmes/Projects Care for the Aged • Grants issued to institutions taking care of the aged. • Provide funding for specific requirements and resources related to the care of the aged.
Safety and Security • Assist organisations that look into the safety of Women and Children. • Funding to develop security measures in centers that provide care to vulnerable groups and communities.
The HIV&ME Workshops of Education have indicated that the content of lectures have been relevant to the schools’ Life Orientation subject During the year under review, Rand Water partnered requirements. with HIV&ME, a non-profit organisation that conducts HIV/AIDS Educational Programmes and Workshops in People against Human Abuse (PAHA) Schools for both educators and learners. The practice of the workshops is for the teachers to first undergo During the year under review, Rand Water renovated the training, thereafter, the teachers “teach” the a centre for the People Against Human Abuse (PAHA) learners in the presence of HIV&ME facilitators. School in Sunnyside, Pretoria. The Centre provides around the Management Teams and officials from the Department clock residential care to victims of domestic violence.
79 Rand Water Annual Report 2009–2010 Rand Water Foundation
“Reaching out to Communities, Building Capacity, and leaving Behind Legacy of Infrastructure.”
The Rand Water Foundation is the corporate social broader objectives and the growth and development investment (CSI) arm of Rand Water, it is registered in South Africa and Africa. as a non-profit, Section 21 Entity. Focus Areas The Foundation is mandated to Water and Sanitation
• Promote the delivery of water service to The programme supports the provision of water and basic underprivileged communities. sanitation in poor communities to maximise communities’ access to water and proper sanitation. Developmental • To co-ordinate, administer and manage Rand initiatives include Community Basic Sanitation: Schools; Water’s corporate social investment resources Households; and Clinics; Municipal Funding-Capacity through undertaking community development Building on Wastewater Treatment plants maintenance projects in partnership with donors and the relevant and operations; Rainwater Harvesting; River Cleaning stakeholders. Initiatives; and Water Solar Initiatives.
• Play a strategic developmental role that may Water and Environmental Conservation Management require decisions that are not always optimal from a commercial perspective, but contribute to Rand Interventions aimed at water and environment Water’s socio-economic developmental imperatives, conservation entail Biodiversity Protection, Urban the developmental priorities of the Department of Landscaping and Greening, Parks Development, Water and Environmental Affairs, and government’s Wetlands Rehabilitation, Management of Alien
Rand Water Annual Report 2009–2010 80 Vegetation, Erosion Control and Environmental Education • Cooperatives Development: initiatives. • Community Education and Awareness Raising on Enterprise Development and Capacity Building Water and Environment Conservation.
This programme entails developmental activities aimed at: Key Rand Water Foundation Projects (2009-2010)
School Sanitation Projects • Creating Enabling Environment for emerging entrepreneurs: Three ablution blocks with 82 flushing toilets for three schools, Seageng Secondary School, St Joseph Khulani • Promoting Entrepreneurship: Primary, in the City of Tshwane Municipality, and Bongani Primary School in the Ekurhuleni Municipality. • Enhancing competitiveness and capabilities at Water tanks were also installed to serve as water enterprise level: reservoirs in the event of unforeseen water shortages.
81 Rand Water Annual Report 2009–2010 Rand Water Foundation (continued)
Proper sewer systems were connected, and Health and During the year under review, the project’s success is Hygiene Education Programmes were conducted among marked by; both learners and educators. Almost 1900 learners were the beneficiaries of these projects. The projects were • Erection of 15 tunnels producing cucumber, tomato, implemented in partnership with the Department of Water spinach, and green peppers. Affairs (DWA). • Creation of market linkages with; the Johannesburg Bantubonke Hydroponics Farming Fresh Produce Market; the Vereeniging Fresh Produce Cooperative (Ltd) Project Market; Boxer Superstore in Vereeniging and Spar Supermarket in Sebokeng Township. The project has been in operation since 2006, and is aimed at addressing poverty, skills gaps and • Created twenty sustainable jobs for local community unemployment within the community. members.
Rand Water Annual Report 2009–2010 82 • Envisages creating 26 more jobs for community Reserve, Rietvlei, Esselen Park, Marais Dam, Diepsloot, members. and at Irene.
Rehabilitation of Wetlands Greening Soweto
During the year under review, the Rand Water The Rand Water Foundation supported the Foundation was involved in the rehabilitation of Johannesburg’s City Parks, with its greening the six wetlands in Gauteng (Tshwane Municipality, city campaign ahead of the 2010 FIFA World Cup. City of Johannesburg, Ekurhuleni), and Mpumalanga. The Foundation sponsored the purchasing of trees. These Projects were undertaken in partnership with the A total of 200,000 indigenous trees have been planted South African National Biodiversity Institute (SANBI). as per the initial plan of the City of Johannesburg. The projects were implemented in; Ezemvelo Nature While the project was undertaken in preparation for
83 Rand Water Annual Report 2009–2010 Rand Water Foundation (continued)
the World Cup, it will in the longer term continue to • City of Johannesburg Every Child’s Birthday Mayoral ensure social upliftment through beautification, tourism, Project – Support was provided to the Executive management of environmental degradation, as well as Mayor of the City of Johannesburg in celebrating the addressing issues of global warming and protecting birthdays of orphaned and vulnerable children. underground water by planting indigenous vegetation, as well as the removal of alien vegetation. • Glen Cowie Girls High School, Limpopo Province – as part of the National Historic School Restoration Special Community Projects Project, the Rand Water Foundation contributed towards the upgrading of sanitation facilities at During the year under review, the Rand Water the school. Foundation supported the following special community projects on a once off basis as per requests; • Helen Joseph Hospital Food Garden Project – the Rand Water Foundation‘s support for this • Nyakaza Joint Projects, an initiative of the Mogale project was focused at supplying fresh produce to City Youth Development Project to commemorate the improve the health of the patients and neighbouring Mogale Heritage Festival which aims to encourage disadvantaged communities. young talent and the advancement of emerging talent among the youth, through the performing arts and sports activities.
Rand Water Annual Report 2009–2010 84 Rand Water Services (Pty) Ltd
Rand Water Services (PTY) Ltd was registered in 2000, • Forging and forming alliances and partnerships and is a wholly owned subsidiary of Rand Water. • Acquiring licensing agreements It initially functioned as the Business Development division • The acquisition of companies offering technologies within Rand Water. In 2005 Rand Water Services was of interest operationalised, and its own Board of Directors was appointed. The primary focus of Rand Water Services It is envisaged that where appropriate, the identified is to generate revenue from the market (Rand Water and services, products and technologies will be implemented other customers) by leveraging on Rand Water resources, at Rand Water. This early adoption of products by and developing its own competencies and solutions. Rand Water either generated through the Innovation Hub, or through Rand Water Services will assist Rand The vision of Rand Water Services is “To become an Water Services in terms of raising the barrier of entry for internationally recognised leader in the provision of potential competitors. This will also provide assurances to water and related service solutions in the developing the water sector of the credibility of the solution. world”. Rand Water Services has acquired and developed Rand Water Services achieved a Net Profit before tax of viable capabilities, competencies and solutions and is R20.5m during the year under review, which has resulted now embarking on a growth strategy. This strategy will in a solid platform being developed to launch its next focus on two important components viz. consolidating wave of products and solutions aimed at municipalities, and reinforcing our position with existing markets (e.g. utilities, industries and government departments. Condition Assessment) and nurturing and developing its position in Utility Operations and Performance, as well as Rand Water Services initially focused on the agency in the Specialised Construction sector. agreement model (limited staff initially), the organisation has grown in terms of its technical capabilities and has Key projects during the year under review developed the capability to implement mega projects. As such it has embarked on a strategy which focuses Construction of the R5 pipeline on a nexus of organic growth and inorganic growth Rand Water Services has managed the construction of e.g. acquiring licenses for niche technologies and joint Phase 1 of the R5 Pipeline, which starts in Benoni and ventures while simultaneously enhancing its internal ends in Mamelodi. The construction of this large diameter competencies. pipeline (1.5m in diameter) posed many challenges due to the area which it had to be constructed (through a In an effort to control key elements of the value chain in built-up area) as well as the high water table which made which it operates in, other models such as acquisitions construction difficult. The project was completed on time and joint ventures are now considered equally relevant and within budget, with an emerging contractor among and important. Rand Water Services’ track record the contractors used during the construction phase. The demonstrates its ability to implement products and project further demonstrated how emerging contractors solutions using internal resources which not only allows with an optimal level of supervision can execute mega for greater profitability, but also enhanced the credibility projects in South Africa. of the organisation. Sasol commissions Rand Water Services for their In terms of co-development of new products, solutions Suikerbos Pipeline at Sasolburg and technologies to assess the condition of its assets, Noted for being a specialist in non-disruptive assessment Rand Water Services with the assistance of Rand Water of pipelines, Rand Water Services has successfully will play an instrumental role by: completed the Guided Wave Pipe Survey inspection on • Optimising existing process through participation the Suikebos pipeline for Sasol. Rand Water Services in the establishment of an Innovation Hub was contracted to perform a risk analysis on the pipeline
85 Rand Water Annual Report 2009–2010 Rand Water Services (Pty) Ltd (continued)
with the objective of determining the pipeline’s remaining effectiveness in producing working solutions to pipeline lifetime to failure. The report provided Sasol with a problems encountered by municipalities. more informed understanding of the risk associated with this pipeline, enabling Sasol to plan for its necessary Eskom Management Contract rehabilitation. The key focus was the use of non-disruptive The Grootvlei Raw Water Treatment Works operates technologies that have the ability to assess the condition partially to purify Vaal Dam water and pump it to the of the pipeline without destroying a portion thereof, and Grootvlei Power Station by means of a 45 km buried without taking the pipeline out of commission. The Long pipeline. This water is treated at the power station and is Range Guided Wave Ultrasonic Pipe Screening System used in its cooling process. Eskom decommissioned their (GUL) was utilised for this assessment which uses guided Grootvlei Power Station in 1990, but a decision was waves to screen long lengths of pipes for corrosion or made in 2006 to bring the plant back into commission. cracks on the pipeline. Rand Water Services was awarded the tender for the Operations and Maintenance of the entire Grootvlei Raw City of Cape Town Water Treatment Plant in January 2007 for a duration The City of Cape Town contracted Rand Water of three years. Rand Water Services has been awarded Services to perform a SmartBall leak detection survey a tender for a further three years to operate the water on the 11.4km section of the Voelvlei Pipeline during treatment plant for, and on behalf of Eskom. June 2010. The Voelvlei Pipeline is a 1500mm diameter pre-stressed concrete pipeline that transmits Ghana Urban Management Project water from Voelvlei to the PlatteKloof Reservoir. A leak The Ghana Urban Management Contract which is was indentified from the inspection and was marked funded by a US$ 120 million grant from the World Bank and repaired accordingly. This project is a record has entered into its final year of operation. Rand Water achievement for the SmartBall team with a 11.4km Services and Vitens International established a joint survey completed for the first time on a single deployment venture company, Vitens Rand Water Services, which and it has demonstrated the efficiency and effectiveness is domiciled in The Netherlands. The Company in turn of the SmartBall system. owns 100-percent of Aqua Vitens Rand Limited (AVRL) which is based in Accra, Ghana. A key performance Repairs to the Churchill Bulk Water Supply Pipeline indicator of AVRL is to efficiently manage the bulk in Port Elizabeth infrastructure with a view toward ensuring effective and Nelson Mandela Bay Municipality contracted Rand efficient water distribution and the reduction of non- Water Services to repair the defective joints on its revenue water. Churchill Bulk Water Supply main in Port Elizabeth. The project which commenced in October 2009 Rand Water and Rand Water Services, as part of their required the installation of ethylene propylene diene Corporate Social Responsibility initiatives, have donated Monomer (EPDM) rubber seals on its leaking defective and subsequently launched a Computer Centre in Accra joints of the pre-stressed concrete pipeline. with a view towards training local staff members on the capturing of data. The launch of the Computer Centre A decision was taken to protect the defective joints by took place in February 2010, and was attended by installing a total of 10 EPDM rubber seals. The absolute the Deputy Minister of Water and Housing in Ghana, failure of a pipeline with a diameter of 1295mm (ID) members of the board of the Ghana Water Company under high pressure can potentially be catastrophic Limited, and the South African High Commissioner to and result in property damage and even injuries or Ghana. fatalities. The project demonstrates Rand Water Services
Rand Water Annual Report 2009–2010 86 Rand Water Medical Scheme
The scheme offers two benefit options to its 2860 members and is covering just over 7000 members:
• Option A
This option offers benefits to members and dependants in accordance with the registered rules of the Scheme in the Rand Water Medical Scheme form of a traditional comprehensive healthcare plan. Registration Number 1201 The total membership of this option at 31 December The Rand Water Medical Scheme is a non-profit closed 2009 was 2 511. Of these, 473 are continuation scheme registered in terms of the Medical Schemes Act members (pensioners). 131 of 1998, as amended. Membership is limited to Rand Water employees. Since its establishment on The increase in contributions to the Scheme will amount 1 January 1918, the Scheme has been an in-house to approximately 9-percent in 2011. administered scheme providing healthcare for members and their dependants. The weekly settlement of medical claims is aligned toward member satisfaction and service excellence. The Scheme is governed by its Board of Trustees, and The Scheme has several managed care providers for consists of five member elected trustees and five employer diabetes, HIV Aids, hospital managed care and chronic appointed trustees. The total contributions received for and medicines benefit management. The Scheme the year ending 31 December 2009 amounted to has further offered all its members and Rand Water R 89.4 million which is subsidised with a two-thirds employees, an added opportunity to join an affordable portion by Rand Water. The Scheme has a healthy hospital shortfall insurance product on a voluntary basis solvency ratio of 96-percent for the same period, which during the three-month open window anniversary and is over three times the minimum requirement of the calendar dates. statutory Council for Medical Schemes. The Scheme intends to implement a pharmacy network in During March 2010, the Council for Medical Schemes 2011 in order to curtail the spiraling medicines costs by carried out an Accreditation Review of the Scheme, the 25-percent. results of which are pending the Council’s Committee Meeting to be held in November 2010. The Scheme • Option B has improved its customers call centre facility and has been incorporated with the Rand Water’s call centre, This option is a low-cost primary health care option. together with a voice-monitoring system for improved It provides health care at various Rand Water site clinics customer service. with the usage of specific healthcare service providers. This option was introduced primarily to cater for the The Scheme is activated via the BHF (Board of needs of the support staff. As at 31 December 2009 Healthcare Funders) Forensics Management Unit (FMU) the membership of this option was 389. as certain providers have been found to be corrupt in their dealings with members. Recovery processes are in There are plans to re-structure Option B, so as to provide place by Rand Water’s Group Forensics Services Unit. flexibility of choice for members.
87 Rand Water Annual Report 2009–2010 Rand Water Provident Fund
The Fund’s membership at the last financial year end, 30 June 2010, reflected a membership of 2653. There were 547 new members engaged on the Fund in the financial year ended 30 June 2010. This is due to Rand Water, through it’s Central Bargaining Forum, allowing a once-off transfer of employees between the South African Municipal Workers Union (SAMWU) National Provident Fund and the Rand Water Provident Fund and vice versa. Rand Water Provident Fund did not lose but rather gained membership from the SAMWU National The Rand Water Provident Fund is a defined contribution Provident Fund. fund with a defined employer and employee contribution rate. The Fund provides retirement, death, disability and The total contributions received by the Fund during the withdrawal benefits to members and their dependants. year under review was R100 147 201. Members contribute 8-percent of pensionable emoluments and the The Fund is a privately administered fund in terms of the employer contributes 15.87-percent for majority of the Pension Funds Act 1956. It is administered internally by members. Employees’ bonuses are pensionable. Rand Water who are registered Administrators in terms of Section 13B of the Pension Funds Act 1956. The Fund invests in terms of Regulation 28 of the Pensions Fund Act. Non current assets of the Fund The Fund is governed by the Board of Trustees which equated to R747 189 546 for the year ended 30 June consists of 5 member elected trustees and 5 employer 2010. R713 289 546 is held in insurance policies nominated trustees. The term of office for the current member and R33 900 000 is held in direct property. The Fund’s trustees will be ending in 2010 and as a result member current asset was R11 608 735 as at 30 June 2010. trustee elections are currently taking place. The results of this Total assets of the Fund for the financial year end 30 June election will be announced in November 2010. 2010 was R758 798 281.
Benefits to the value of R69 603 671 were paid out to members. Members who retired during the period, and commuted full lump sums equated to R31 664 225 with the balance having been paid out for withdrawal, death and disability benefits.
The Fund has granted guarantees to their service provider for housing loans granted to members. Currently, members may not borrow more than 70-percent of their fund values on this scheme. Whilst the Fund’s credit limit is R50 000 000, guarantees to the value of R41 346 788 were outstanding as at 30 June 2010. This facility is renewable annually.
Rand Water Annual Report 2009–2010 88