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WATER UTILITIES CORPORATION ANNUAL REPORT 2012/13 WATER CO-OPERATION BUILDING PARTNERSHIPS GABORONE HEAD OFFICE SEDIBENG HOUSE Plot 17530, Luthuli Road P Bag 00276, Gaborone Tel: 360 4400 Fax: 397 3852 E-mail: [email protected] WUC ANNUAL REPORT 2013_Cover1.indd 1 18/02/14 10:13 AM Mission Vision To provide sustainable water and wastewater management We aspire to be services in a cost effective and environmentally friendly a leader in utility manner to the economy. services. Values Botho Therisanyo/Consultation Kgetsi ya Tsie We display a strong work We value open and /Team Work ethic and respect for free exchange of We believe in working people views and ideas together to accomplish more Batho Pele/ People First Botswerere/Quality We understand and We provide a high quality exceed expectations by of products and service putting the customer delivery to our customers first 1 WUC ANNUAL REPORT 2013_Reviews071214.indd 1 17/02/14 10:46 AM WUC ANNUAL REPORT 2013_Reviews071214.indd 2 2 decline inourdamlevels. a hasbeenshowing rainfall thetrend duetoinsufficient theyears, Over BOTSWANA IS A FAST GROWING ECONOMY OF JUST OVER 2 MILLION MILLION 2 OVER JUST OF ECONOMY GROWING FAST A IS BOTSWANA WATER CONSERVATION TO ENSURE THE SUSTAINABILITY OF THE RESOURCE THE OF SUSTAINABILITY THE ENSURE TO CONSERVATION WATER IN PARTICIPATE ACTIVELY TO ALL FOR NECESSARY IT MAKING COUNTRY, THE TO CHALLENGE MAJOR A POSE DROUGHTS PERENNIAL PEOPLE. PERCENTAGE LEVELS TRENDS GABORONE DAM 100 10 20 30 40 50 60 70 80 90 0 Apr - 01 Jun - 01 Monthly Percentage Drop (Overall) =2.6% (Overall) Drop Percentage Monthly Aug - 01 Oct - 01 Dec - 01 Feb - 02 Apr - 02 Jun - 02 Aug - 02 Oct - 02 Dec - 02 Feb - 03 Apr - 03 Jun - 03 Aug - 03 Oct - 03 Dec - 03 Feb - 04 Apr - 04 Jun - 04 Aug - 04 Oct - 04 | Monthly Percentage Drop (Abstractio) =1.0% (Abstractio) Drop Percentage Monthly Dec - 04 Feb - 05 Apr - 05 Jun - 05 2012/ BUILDING PARTNERSHIPS BUILDING Aug - 05 CO-OPERATION: WATER Oct - 05 Dec - 05 Feb - 06 Apr - 06 Jun - 06 Aug - 06 13 Oct - 06 Dec - 06 Feb - 07 Apr - 07 THEME Jun - 07 Aug - 07 Oct - 07 Dec - 07 Feb - 08 Apr - 08 Jun - 08 | Monthly Percentage Drop (Evaporation) =1.6% (Evaporation) Drop Percentage Monthly Aug - 08 Oct - 08 Dec - 08 Feb - 09 Apr - 09 Jun - 09 Aug - 09 Oct - 09 Dec - 09 Feb - 10 Apr - 10 Jun - 10 Aug - 10 Oct - 10 Dec - 10 Feb - 11 Apr - 11 Jun - 11 Aug - 11 Oct - 11 Dec - 11 Feb - 12 Apr - 12 Jun - 12 Aug - 12 Oct - 12 Dec - 12 Feb - 13 Apr - 13 June - 13 Aug - 13 Oct - 13 % Drought PhaseIII % Drought PhaseII% Drought Phase1% Drought % Siltation+D/Storage % DamLevel 17/02/14 10:46AM Gaborone Dam showing receeding water levels 3 WUC ANNUAL REPORT 2013_Reviews071214.indd 3 17/02/14 10:46 AM WATER UTILITIES CORPORATION ANNUAL REPORT 2012/13 WATER CO-OPERATION BUILDING PARTNERSHIPS Table of Contents Performance Highlights Five Year Performance Corporate Profile 06 07 at a Glance 08 Board Chairperson’s Board of Directors Corporate Governance 12 Statement 16 20 Chief Executive Officer’s Corporate Water Sector Reforms 26 Remarks 30 Management Team 32 Programme CSR & Stakeholder General Information 36 Operational Highlights 46 Management 48 4 WUC ANNUAL REPORT 2013_Reviews071214.indd 4 17/02/14 10:46 AM Water is life. Share every drop and save the future. If we all play our part as individuals, our efforts can go a long way and lighten the burden associated with water shortages. Play your part consistently and make water conservation a way of life. 5 WUC ANNUAL REPORT 2013_Reviews071214.indd 5 17/02/14 10:46 AM WATER UTILITIES CORPORATION ANNUAL REPORT 2012/13 WATER CO-OPERATION BUILDING PARTNERSHIPS Performance Highlights for 2012/13 Total Net Loss P191.1m Revenue 36.0% in 2013 compared to a net loss of Total Revenue went up by (P541.6m) in 2012. 36.0% from P579.7m in 2012 to P790.8m in 2013. Water Return on Quantity 75 600tcm Equity (4)% Water quantity sales went up by Return on equity improved from 14,6% from to 66 000tcm in 2012 (13%) in 2012 to (4%) in 2013 to 75 600tcm in 2013 6 WUC ANNUAL REPORT 2013_Reviews071214.indd 6 17/02/14 10:46 AM Five Year Performance at a Glance 2012/13 2011/12 2010/11 2009/10 2008/09 restated restated P’000 P’000 P’000 P’000 P’000 Income and cash flow statements Water sales 770,471 571,296 571,904 560,337 520,400 Total revenue 790,778 579,685 578,543 561,107 524,402 Operating expenses 979,622 947,035 495,494 319,526 321,057 Depreciation and amortisation 184,790 186,558 119,058 86,903 67,182 Net Finance charges 28,111 13,731 14,457 14,682 111 Net surplus/(Loss) (191,062 ) (541,595 ) 21,809 161,414 139,669 Net cash inflow/(outflow) (302,249 ) (102,647 ) 52,502 154,403 (6,445 ) Balance Sheet Operating assets 4,620,261 4,444,660 3,544,677 2,620,435 1,966,504 Development Expenditure 625,866 538,249 110,234 115,304 145,986 Government equity 4,374,297 4,089,391 2,364,477 1,410,577 752,738 Interest subsidy reserve 10,984 9,213 7,421 – – Reserves 796,214 989,047 1,532,434 1,518,046 1,392,943 Long term borrowings 515,036 549,212 577,720 599,721 612,473 Retirement benefit asset / (obligation) (21,611 ) (3,920 ) 33,045 28,925 6,736 Water sales quantities (TCM) 75 600 66,000 61,672 58,455 51,177 Ratios Return on equity -4% -13% 1% 11% 19% Return on capital employed -4% -11% 1% 6% 7% Return on net operating assets -4% -12% 1% 6% 7% Debt service cover (times) -1.77% -10.66% 0.83% 4.14% 0.32% Debt/Equity Ratio 0.12 0.13 0.24 0.43 0.81 Statistics Annual Inflation (%) 7.30% 7.20% 8.50% 6% 11.70% Prime lending rate 11% 9.50% 11% 11.50% 16.50% 7 WUC ANNUAL REPORT 2013_Reviews071214.indd 7 17/02/14 10:46 AM Corporate Profile The Water Utilities This involved planning, the Water Sector Reforms Corporation (WUC) is a constructing, operating, Programme (WSRP). The treating, maintaining and programme resulted from a parastatal organisation, distributing water resources in study to rationalise the water wholly owned by the the country’s urban centres and sector in Botswana and ensure Botswana Government. other areas mandated by the uniform service levels for all. The Botswana Government, as well implementation of the Water It was established as the supply of bulk water to Sector Reforms Programme in 1970 by an Act of the Department of Water Affairs effected in May 2009 and is Parliament (Laws of and the various Local Authorities scheduled for completion in for distribution to villages and 2014. Botswana Cap 74:02) with other smaller settlements in the a mandate to manage country. Following the commencement of a single project for the the implementation of the Water In the forty three years since its Sector Reforms Project, the supply and distribution inception, the Corporation’s Corporation’s customer base has of water in what was mandate has expanded grown significantly from 80 000 then called the Shashe to supplying potable water to at the beginning of the reforms in all urban centres and villages 2009 to just over 300 000 at 31st Development Area. in the country, as well as March 2013. The Corporation managing wastewater under presently supplies over 75 million 8 WUC ANNUAL REPORT 2013_Reviews071214.indd 8 17/02/14 10:46 AM ANNIVERSARY MANAGING THE WORTH OF PROPERTY, PLANT AND 43RD WATER AFFAIRS OF BOTSWANA 4.6BN EQUIPMENT INCLUDING SIX DAMS cubic metres of potable water annually to its total customer base. The low customer base is largely attributable to the fact that not all households have individual private connections, most get their supply from public standpipes. With a property, plant and equipment value of over P4.6 billion, the Corporation’s infrastructure includes six dams: Gaborone, Nnywane, Bokaa, Shashe, Letsibogo and Ntimbale as well as the North South Carrier Scheme (NSC ) which comprises a 365km long pipeline, water treatment plants and associated pump stations. Water Utilities Corporation Revenue Office 9 WUC ANNUAL REPORT 2013_Reviews071214.indd 9 17/02/14 10:46 AM WATER UTILITIES CORPORATION ANNUAL REPORT 2012/13 WATER CO-OPERATION BUILDING PARTNERSHIPS Corporate Profile (CONTINUED) Additional dams, the Dikgatlhong, with internationally accepted Thune and Lotsane’s construction corporate governance practices. was recently completed. They To this end the Water Utilities are yet to be commissioned. The Corporation identified key WSRP resulted in the transfer strategic objectives to guide its of around 821 boreholes from activities, business focus and Local Authorities and the the allocation of resources for Department of Water Affairs its planning period 2012-2015. to the Corporation making it These are: one of the major groundwater abstractors. These boreholes • To generate acceptable constitute about 7% of the 10951 financial returns for the Government drilled boreholes in shareholder within the context the country. of acceptable corporate governance structures Strategic Objectives • To drive initiatives associated with the development and In keeping with its vision upgrading of dilapidated “We aspire to be a leader in infrastructure in villages utility services” the Water Utilities Corporation needs to • To proactively identify be adequately prepared for strategies of managing the risk institutional reforms in the of inadequate water supply water sector, be able to satisfy • To emphasise both internal an increasingly discerning and external stakeholder customer and ensure compliance relationship management Conserving water-using a little for laundry Water Sector Reforms Programme Timeline with milestones 2009/10 2010/11 2012 2014 May Phase I May Phase II October Phase III Phase IV Phase V Scheduled project completion date.
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