About Rand Water

For 106 years, Rand Water has supplied bulk potable three pumping stations. The flow of the water in the water to Gauteng and its surrounding areas. Orange River is diverted through a series of tunnels through the Maluti Mountains, into the Eastern Free State, Rand Water’s success is based on sharing in the and from thereon into the Vaal Dam. pioneering spirit that led to the growth of the city of Johannesburg. It is the same spirit that has driven Rand Rand Water extracts water from the Vaal Dam and Water’s growth in terms of infrastructure and quality. purifies and disinfects the water at its Vereeniging and Rand Water has an internationally renowned reputation Zuikerbosch Purification and Pumping Stations. The for supplying water of a quality that ranks among the water is then pumped to Zwartkopjes (Rand Water’s best in the world. main booster pumping station) and three satellite booster pumping stations situated at Palmietfontein, Eikenhof and However, by the early 1970s, Rand Water’s primary Mapleton. From here, the water is then pumped again to source of water, the Vaal River, had its potential exploited the 58 reservoirs located through Rand Water’s area of to the utmost; the problems of future water supply for supply. It is from these reservoirs that water is delivered to industry, commerce and domestic use in the Gauteng Rand Water’s customers. area were becoming increasingly serious. The solution was to transfer water from the catchment area of the Rand Water is the largest water utility in Africa, providing Tugela River to that of the Vaal. bulk potable water to a population that has grown to an estimated 11 191 700 in Gauteng, parts of Since the water transfer over the Drakensberg required Mpumalanga, the Free State and North West provinces. the construction of reservoirs, channels and pumps, Its customer base includes metropolitan municipalities, it opened the way to build a hydroelectric power local municipalities, mines and industries. station which could further exploit the potential of water resources being made available. Through the establishment of Rand Water Services (Pty) Ltd, Rand Water is positioning itself among the leaders In 1982 the project was completed, operating as a in the industry in Africa and beyond. Rand Water pumped storage scheme and as a pumping station for has continued to be trusted by various government water transfer over the Drakensberg from the Tugela to departments, including the DWEA, as an implementing the Vaal. agent in various community projects aimed at improving the lives of people. In February 1998, the Lesotho Highlands Water Project (LHWP) began transferring water into the Vaal Dam. The LHWP in its present form comprises six dams and www.randwater.co.za

1 Rand Water Sustainability Report 2009–2010 About this Report

We present to the stakeholders the Rand Water 2010 Sustainability Report. Our sustainability reporting seeks to provide a balanced, transparent and objective view of the sustainability issues that are relevant and material to Rand Water. This report sets out abstracts of the financial information reported as at 30 June 2010 as well as non- financial information as approved by the board of Rand Water on 7 October 2010.

In addition to this report, stakeholders are advised to read the following:

• Rand Water Annual Report 2009/2010

• Blue Drop 2010 Report

Rand Water Sustainability Report 2009–2010 2 Key Achievements

• Maintenance of our Blue Drop Certification

• Assisted six municipalities within our service area of supply to obtain Blue Drop status

• Awarded the International Water Association Award

• Development of targeted training programmes for Rand Water staff and community members

• Achieved Preferential Spend of 81.12-percent against a target spend of 75-percent

• Re-certification of Occupational Health, Safety, Environmental Management and Quality Management Systems

• Improvement of Customer Perception Indicators

Disappointments and Challenges

• Improvements required on performance of Environmental Impact Assessments and the issue of Water Use Licences

• Increasing pressure on infrastructure

• Continued contamination of water sources

• Shortage of appropriate skills to carry out research projects

3 Rand Water Sustainability Report 2009–2010 Strategic Framework

Vision

To be a provider of sustainable, universally competitive water and sanitation solutions for Africa.

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.

Strategic Objectives

• Achieve growth; • Achieve a high-performance culture; • Positively engage stakeholder base; • Maintain financial health and sustainability; and • Achieve operational integrity and use best fit technology.

Primary Activities and Key Competencies

• Bulk potable water supply • Sanitation and waste water management • Bulk sanitation services • Project and quality management • Products and other services • Commissioning of water and waste-water treatment plants • Operating and maintenance expertise • Training, education and communication programmes • Engineering planning and designs • Infrastructure refurbishment • Catchment management services • Water demand management • Scientific and analytical services • Retail water services • Utility management • Water cycle management services

Rand Water Sustainability Report 2009–2010 4 Statement from the Acting Chairperson and the Chief Executive

Adv Mosotho Petlane – Acting Chairperson Mr Percy Sechemane – Chief Executive

Our annual report is an important element of our strategy clearly visible. The period that is covered by this report is execution system. It is a statutory requirement in terms of from 1 July 2009 to 30 June 2010. the Water Services Act No. 108 of 1997 and the Public Finance Management Act No. 1 of 1999 that disclosure As Rand Water, we entered into a compact with our be made of annual performance against the business Shareholder in which compact is a clear policy directive plan. We have also taken the opportunity to align this that the Organisation should focus its resources in support statutory reporting obligation with best sustainability of the Government’s priorities. The priorities mentioned reporting practice. include, amongst others, a reduction in poverty that will be achieved in part through meeting the Millennium While we have produced annual reports that cover our Development Goals. The continued existence and financial and operational performance since inception, development of the Organisation and our ability to and we have undertaken activities to ensure our future deliver on our compact depend to a large extent on the sustainability for many years now, no formal reporting development of forward looking strategies that not only on sustainability matters has hitherto been undertaken. It focus on the bottom line but take into account the impact therefore gives us much pleasure to present our first ever that the Organisation has on our Earth and its people. Sustainability Report. The Report sets out the strides that The scarcity of water, enterprise development, climate we have been able to achieve over the many years of change, the potential impact of contamination of water existence of Rand Water as well as the milestones we sources, the shortage of skills and the development of our intend to attain in order to ensure a sustainable future for community are all but a few of the challenges that the we all our stakeholders. must surmount going into the future and to this end, efforts are being directed in order to ensure that adequate steps With effect from the year under review and in keeping are taken and taken timeously. It goes without saying that with the recommendations of the King III Code, we are the issues mentioned herein all form the underpinnings of embarking on a process of ensuring that a formalised a successful strategy on Sustainable Development. sustainability strategy is implemented and pursued. The implementation of the strategy will ensure the The financial performance of the Organisation over the measurement of performance of the Organisation against years has been nothing short of commendable. In the predetermined objectives and that the impact of the year under review, the Organisation posted revenues of strategy and operations of the Organisation will be more R5 billion with profit of R302 million. While profitability is

5 Rand Water Sustainability Report 2009–2010 Statement from the Acting Chairperson and the Chief Executive (continued)

down on the amounts achieved in the previous financial educational institutions that assist us with research and year due to cost pressures on the Organisation, we have training projects which enable us to work smarter and taken and continue to take steps to address this and develop more efficient and sustainable processes – ensure profitable operations into the future. whether this be in respect of water purification methods, water conservation methods or the litany of other areas Amongst the measures that we have instituted in order to in which they assist. facilitate profitability are assessments of the adequacy of our infrastructure. We continue to invest in the We have, in the current year, benchmarked our reporting maintenance and establishment of pipelines and pump- on sustainability matters against the Global Reporting stations that will ensure our ability to deliver product to Initiative’s G3 Sustainability Reporting Guidelines. The Gauteng and its environs. In the new financial year, accompanying report covers all the divisions and entities it is our intention to secure funding that will enable us under the Rand Water umbrella and we have prepared to finance projects that will augment the infrastructure it based on the Guidelines at a C level. It is our intention and to this end, our continued stellar performance will to improve on this going forward, while at the same stand us in very good stead with potential financiers. To time, working towards the issuance of an Integrated complement our efforts on the distribution infrastructure, Sustainability Report as espoused by the King III Code. we will continue to engage with the Department of It is our intention to continue reporting on sustainability Water and Environmental Affairs on the development of matters on an annual basis and, going forward, we will alternative and environmentally sustainable sources of endeavour to ensure that the information contained herein water in the area, while at the same time assisting, as is externally assured. best as we can, with dealing with the problems of water contamination. Our thanks go to all the Staff, Management, members of the Portfolio Integrating Committee, members of the None of the work that we do would be possible without Board of Directors and our Shareholder for their unstinting the dedication and skill of our people and their ability support in achieving the milestones that we have and for to impart their skills on the next generation of Rand their continued support into the future. Most of all, we Water staff. To this end, we continue to invest substantial would like to thank, on behalf of Rand Water, the Nation amounts of resources into the education of the future of South Africa and in particular, the people of Gauteng leaders of our Organisation and our Country, the training and its environs who have assisted us to deliver on our of our current staff complement and the community mandate and continue to do so ever so diligently. at large. We are also grateful to the various tertiary

Adv M PETLANE DKP SECHEMANE ACTING CHAIRPERSON CHIEF EXECUTIVE

Rand Water Sustainability Report 2009–2010 6 Stakeholder Engagement

Rand Water undertook a process of identifying its harmoniously. As an organisation, Rand Water continues stakeholders and understanding how they are impacted to be proactive in dealing with community concerns by its operations and how it can strive to achieve a better and interests and continue to undertake corporate social future for all. investment initiatives in the various communities in which it operates with the aim that it develops a sustainable future Our Shareholder and financiers for all concerned.

Rand Water engages with its Shareholder and other Customers financiers through various platforms, the publication of its annual results and other financial information being one Rand Water continues to conduct surveys of its Customer of various methods that are used in order to communicate base in order to understand their requirements and to with them. Meetings are held on a regular basis with the ensure that it continues to meet our objective of satisfying Department of Water Affairs and Environment and the their needs. In addition, various forums have been set results of such engagements with them in turn guide the up which also provide Rand Water with an opportunity overall strategy of the Organisation. to engage directly with the customers, ensuring that concerns are addressed in a timely manner. Local communities and civil society Contractors and service providers Several initiatives have been set up that enable Rand Water to have access to the communities that The quality of products and services provided by are affected by its operations, whether they are the contractors and service providers has a significant impact consumers of its product or they dwell in its catchment on the continued service that it is able to provide to its and service areas. Several initiatives are undertaken customer base. To this end, Rand Water continues to each year in order to educate the communities on water engage with its suppliers in order to ensure that such conservation initiatives and to listen to ideas that they quality is maintained. Rand Water is also very mindful may have on how the Organisation’s operations may of the imbalances that the past dispensation in South impact their livelihoods and how all affected can co-exist Africa created and to this end, it is committed to the

7 Rand Water Sustainability Report 2009–2010 Stakeholder Engagement (continued)

development of Small, Medium and Micro Enterprises. This relationship is evident in the more than 500 news Rand Water has put in place projects to support such articles that were generated during the year, of which entities and to ensure that they are able to establish a 122 were published by media organisations based business model that will be sustainable long into the internationally, in such countries as the United States, future through the offering of training and other relevant Ghana and the United Kingdom. support mechanisms. Staff Educational Institutions Rand Water’s staff are amongst its most prized Rand Water continues to support various tertiary stakeholders and it continues to engage with them on institutions as they are an important supplier of the various platforms in order to ensure that they are aware specialist skills that it requires. It also collaborates with of the issues that confront the Organisation and that a tertiary institutions on research projects and they have common approach to solutions is achieved. It is Rand contributed immensely to new water conservation and Water’s intention to increase their participation in the purification methodologies. Rand Water continues to process of identifying the means by which sustainable engage with schools and has taken its Water Wise development of the Organisation can be achieved initiative to various schools in its area of operation. and to this end, it is planning to carry out sustainability Schools provide the Organisation with a wide captive awareness workshops and surveys from which it will audience for its water conservation message and the be able to gather information and ideas on the efforts results that are starting to be borne are indicative of a embarked upon thus far. change in the mind-set of the younger generation with respect to the use and conservation of water resources. Organised Labour

From time to time the Executive Management consults The Media with Organised Labour on matters of mutual interest and Rand Water maintained a very good working out of these forums, suggestions on matters that feed into relationship with local and international media houses. the overall strategy of the Organisation are made.

Rand Water Sustainability Report 2009–2010 8 Enterprise-Wide Risk Management Framework

Rand Water has an Enterprise-Wide Risk Management During the June 2010 annual risk assessment, Framework which has three components namely: 37 strategic risks were identified and ranked on the • Risk Policy statement; Risk Register. The Risk Register was discussed by • Risk Management Framework; and Corporate Risk Committee, Portfolio Integrating • Methodology Committee (PIC) and recommended to the Board for adoption in September 2010 and were also assigned This framework is currently under review taking into to responsible PIC members. account the requirements set out in the King III Code and ISO 31000. The risk mitigation plans and controls are continuously monitored by Rand Water’s Corporate Risk Committee Rand Water is committed to mitigate and manage all its (CRC) and these are then assessed by the internal audit identified risks. Risk identification is done through the risk function before being considered by the Board Risk assessment process. The risks are identified, analysed, Committee. evaluated and ranked by order of priority and risk owners are appointed. The operational risk assessment Occupational Health, Safety, Environmental and is done by Portfolios, divisions and sites and the Overall Quality Management Systems (SHEQ) Strategic Risk Assessment is conducted once a year Continual maintenance of SHEQ Management Systems with all Portfolios being present. Internal Audit provide during the year under review through the ISO standards assurance on effectiveness of mitigating controls and namely, ISO 14001 (Environmental Management report on this to the Board and its Risk Committees. Systems), ISO 9001 (Quality Management System) and OHSAS 18001 (Occupational Health & Safety All governance structures taking part in management, Management System) have benefited Rand Water with monitoring or playing oversight role in this function are regards to the compliance to legislation most notably stipulated in the Entity-Wide Risk Management (EWRM) the environmental legislation, reduction of ill-health and Framework. workplace injuries.

Table 1: The following are the Rand Water Top Eleven Strategic Risks:

2010 Top Eleven Risks 2009 Top Thirteen Risks Condition of existing infrastructure and future expansion Condition of existing infrastructure Alternative revenue streams (other than bulk sanitation) Availability, cost and tenure of funds Business efficiency Quality of potable water Ability and capability to supply bulk sanitation Critical skills attraction and retention Critical skills attraction and retention Supply of Bulk Sanitation Services Contracting Contractual Obligations Sustainability of supply of goods and services Business Efficiency Availability, cost and tenure of funds Alternative Revenue Streams Contractual performance Achievement of stakeholder expectations Alignment between strategic and operational objectives Application of Corporate Governance Staff Capacity and Capability Quality and Quantity of Raw Water Availability of goods and services Alignment between strategic and operational objectives

9 Rand Water Sustainability Report 2009–2010 Enterprise-Wide Risk Management Framework (continued)

A procedure for the management and execution of EIAs was developed by a task team of specialists from Rand Water’s Risk Advisory Services, Strategic Asset Management, Environmental Management Services and Business Process Mapping departments. Workshops on EIAs and Water Use Licenses were also conducted in the organisation, where legislative requirements and best practices were discussed, and implementation guidelines were consequently developed for the organisation.

Rand Water also adheres to monitoring of environmental In accordance with the Certification Body’s requirements, aspects that may pose a risk to the environment. Rand Water’s SHEQ Management System underwent a Currently, Rand Water is monitoring dust fall out at some re-certification by a third party (SABS) audit and retained of its sites, as well as waste generation, in particular its certifications with distinction. These three yearly hazardous waste, throughout the organisation. re-certification audits have re-affirmed the high maturity level of Rand Water’s SHEQ Management Systems and Occupational Health and Safety – OHSAS has enhanced the Combined Assurance by the Board. 18001:2007 Internal and external surveillance and legal audits are Rand Water has been successfully certified in terms of continuously undertaken as per dedicated schedules to the updated version of OHSAS 18001:2007. The constantly monitor the effectiveness of the systems, and to updates include, but are not limited to, the requirement ensure compliance with all legal and other requirements that the organisation takes human behaviour capabilities applicable to the organisation. into account when assessing hazards and risks in the workplace. Environmental Management – ISO 14001:2004

In September 2009, following extensive internal, Table 2: surveillance and legal audits, Rand Water was able to Year Actual *DIFR Target DIFR maintain its ISO 14001:2004 certification for a further 2003/04 0,78 1,00 three years to September 2012. In so doing, Rand 2004/05 0,64 1,00 Water again demonstrated its ability to implement its 2005/06 0,41 1,00 commitments to sustainable development and pollution 2006/07 0,38 0,8 prevention, and its adherence to legal requirements. 2007/08 0,54 0,8 2008/09 0,57** 0,8 In line with the fundamental principle of continual 2009/2010 0.53 0.8 improvement, entrenched in the ISO 14001:2004 2010/2011 0.6***

standard, Rand Water has also embarked on strategies *DIFR – disabling injury frequency rates (greater than one shift loss- and to improve its environmental monitoring and reporting calculated per 200 000 man-hours worked) **Human behaviour, and tripping and falling from steps were the main as well as its compliance to applicable legislation. After cause of the increase in disabling injury frequency. a gap analysis was completed, the key problem areas *** New target for disabling injury frequency rate of Environmental Impact Assessments (EIAs) and Water A reduction in disabling injuries was experienced from Use Licenses were identified. Rand Water continues disabling injury frequency rate of 0.57 to 0.53 during to engage with the Department of Water Affairs and the year under review. Environment to resolve these challenges.

Rand Water Sustainability Report 2009–2010 10 Table 3: Disabling frequency injury rate per 200 000 man-hours worked

1 1

0.8 0.8 0.8 0.8

0.64 0.57 0.6 0.54 0.53 0.41 0.38

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

DIFR Target

This was mainly due to a number of factors including, but regards to compliance to the Construction Regulations not limited to, the following elements of the Occupational as framed under the Occupational Health and Safety Health and Safety programme: (OHS Act 85 of 1993). A successful campaign by Rand Water’s Risk Advisory departments to have all • Regular workplace Health and Safety inspections by contractors to comply with the Construction Regulations Health and Safety Representatives was achieved. This included all small and emerging, medium and big contractors. Compliance to the OHS • Health and Safety awareness programmes Act 85 of 1993, improved especially amongst the small and emerging contractors. A number of SHE workshops • Effective reporting; corrective and preventative system facilitated by Rand Water’s Risk departments were held to increase SHE awareness among the contractors. Programmes on SHE awareness including induction and safety awareness posters will now be intensified. Site Business Continuity Plans

During the year under review, all Rand Water’s major Quality Management Systems (QMS) pumping stations’ Business Continuity Plans were – ISO 9001:2008 reviewed. The review process identified no specific Rand Water holds bi-annual SABS quality management areas of serious concern. Nonetheless, all the information audits which continue to confirm the high maturity contained in the Business Continuity Plans were updated, level of Quality Management Systems. In these SABS and are now current. audits, Rand Water’s QMS was found to continuously comply with all ISO 9001:2008 requirements. The Disaster Simulation Exercises re-certification process has already commenced, and the A total of eight disaster simulation exercises were conducted first sets of SABS audits have shown excellent compliance during the year under review in conjunction with the to the updated ISO 9001:2008. appropriate local authority emergency services, i.e., Disaster Management Centres, the South African Police Services, Contractor Management Rand Water operational sites and other stakeholders. During the year under review, all Rand Water sites Detailed action plans including timeframes have been continued focusing on contractor management with compiled for all deviations and are being addressed.

11 Rand Water Sustainability Report 2009–2010 Enterprise-Wide Risk Management Framework (continued)

External Audit as a detailed audit plan based on risk assessments and issues raised at the Board, the Audit sub-committee and External auditors have been appointed to provide Portfolio Integrating Committee (PIC) meetings. assurance and credibility to the organisation’s existing Assurance Framework in terms of the Public Finance Rand Water’s Internal Audit unit has focused on the Management Act (PFMA) and the Water Services Act. In following key issues, which are championed by the future years, the sustainability report will also be subject Board and the Portfolio Integrating Committee, which to external assurance. insisted on a more tangible demonstration of the performance of Rand Water’s Internal Audit unit: Internal Audit

In recent years, internal audit processes have • Focusing on client management, to include internationally undergone significant changes with regard knowledge sharing and fostering partnerships with to how these audits should be undertaken. Most notably, line managers, and returning the ownership of there has been a visible move from process based audits controls to management. to ones that are risk-based, while also embracing the key principles of governance and risk management. • Re-directing its processes from detection to prevention; and identifying solutions to challenges. Rand Water’s Internal Audit unit is considered critical to the Organisation and has an independent appraisal • Focusing on a risk-based approach with its audit function established to evaluate the adequacy and processes. effectiveness of its controls, disciplines, systems and procedures in order to reduce business risks to • Adding value to Rand Water’s organisational acceptable and cost effective levels and to ensure the objectives, strategies, risks and corporate governance achievement of the Organisation’s objectives. priorities.

The head of Rand Water’s Internal Audit unit reports • Greater emphasis on technology, i.e. automated functionally to the Audit Committee and administratively work papers, computer assisted audit software. to the Group Governance Executive attends at meetings of the Board’s Audit Committee. He also attends the • The adoption of a risk-based plan and the meetings of the PIC by invitation. To deliver value added importance of cooperation with other assurance service at Rand Water, the Internal Audit unit has found it providers. imperative to emphasise the importance of differentiators rather than focusing exclusively on qualifiers. Rand Water’s Internal Audit unit has undertaken the following processes amid the evolving enterprise risks Qualifiers are the standard audit processes internal audit and recession to add strategic value to the Organisation: must accomplish daily. These include assurance work, audit reports, work paper documentation and training • Linking the organisation’s strategic objectives and and development. Differentiators push the internal audit value-drivers to those that fall within the scope of team to strive for excellence and underscore its ability to internal audit. deliver distinctive value to the organisation. • Responding to stakeholders’ expectations of With this is in mind, it is not surprising that people play internal audit, and the priorities of the Board, the the most critical role in Rand Water’s internal audit Audit subcommittee and the Portfolio Integrating processes. Rand Water has a formal charter in place to Committee. regulate the functions of the Internal Audit unit, as well

Rand Water Sustainability Report 2009–2010 12 • Identifying inefficient processes and eliminating The standardised templates on the Contract Management routine low-value audits. System reduce any legal risk that Rand Water could potentially face. Since its implementation, Rand Water • Regularly reviewing the updated internal audit plan has observed a significant decrease in the number of together with the implementation of cost-reduction contracts challenged by interested and affected Third measures with key stakeholders to further improve Parties. support for internal audit processes. Supply Chain Management • Maintaining the alignment with the changing risk Rand Water considers transformation as an essential profile of Rand Water. element of its business that is integral to the development of South Africa. Rand Water is committed to addressing • Attracting and retaining internal audit human resource the imbalances of the past, not only with regard to its talent and increasing the business and operational human resource processes but also in its commercial knowledge of staff. equity priorities. The organisation’s Preferential Procurement Policy is based on the Broad-Based Black • Leveraging technology to optimise audit operations. Economic Empowerment Act and the Department of Trade and Industry’s (DTI) Codes of Good Practice. Legal Services

Rand Water’s strategic risk analysis for the year under The policy is aimed at the inclusion of previously review identified “Contractual Performance” as the sixth disadvantaged individuals onto the supplier base for most strategic risk of the organisation. Rand Water goods and services. The policy also allows for the setting has implemented a Contract Management System to and reviewing of targets to ensure that progress is made streamline previously fragmented contract management towards the achievement of the organisation’s objectives. processes. Essentially, the Contract Management System allows for the provision of contract governance, Rand Water’s Procurement Policy strives to: execution management, and performance monitoring while at the same time improving efficiencies. • Provide an appropriate acquisition process for the procurement of all goods and services. The System also allows for: • Ensure that the procurement process is fair, • The central storage of contracts and a controlled user transparent, consistent, equitable, competitive and access on documents online. cost effective.

• The establishment of triggers as notification alerts for • Maintain the highest ethical standards. the appropriate action requested. • Promote the objectives of the Commercial Equity • A significant reduction in the usage of paper. policy.

• Reduction in contract creation times. • Ensure that the procurement processes comply with the legal framework that governs Rand Water. All active, expired or terminated contracts entered into by Rand Water as well as any additional information During the year under review, Rand Water had pertaining to the contracts are stored on the Contract a BEE target of 75-percent, with a stretch to 80-percent. Management System. Rand Water’s Legal Services It attained 81.12-percent; and spent a total of Division is the only authorised user of the System. R4 847 434 659.02 in this regard.

13 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships

Table 4: 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

During the year under review, Rand Water again services provided by the Centre. On finalisation conducted its Customer Value Management (CVM) of a customer’s request, an email is automatically Survey to substantiate on its customer requirements, and generated back to the customer to evaluate the level to ensure that it continues to remain within reach of its of satisfaction. strategic objectives of satisfying all its customers. • The Customer Relationship Management (CRM) The above table is the CVM Survey overview of the Offline Working system - enables Rand Water staff 2009-10 financial year, and its comparison with the members who are not office bound to be able previous two financial years. to work off line on the CRM system. The System automatically updates when the staff member The Rand Water Forums reconnect to the network.

The Rand Water Forums (Water Sector Forum, Mining • The Majuda Voice Logger – the system was Forum and the Industry and Direct Consumers Forum) have introduced for an assessment of quality management undergone a review to align themselves with Rand Water’s purposes and it strives to ensure consistency on good new corporate objectives. This provided a platform for a quality customer interaction. new strategic direction for the forums and its plans.

Service Level Agreements A working group was established with the intention of promoting the development and maintenance of Each year Rand Water evaluates its Bulk Water Supply comprehensive strategies and plans for the forums. Contract service level compliance, to ascertain how Rand Water’s Customer Services Centre is one of the compliant the organisation has been with regards to organisation’s points of contact; during the year under the implementation of the agreed upon operational review, the Centre has remained committed to high levels standards with all its customers. Although the mines and of service delivery. industries contribute 7-percent of Rand Water revenue as compared to the 93-percent contributed by the The following new systems were introduced to improve municipalities; the mines and industries remain equally customer service levels: important to Rand Water. During the year under review, • The customer feedback email system – this is a the municipalities’ service level rating have remained at means of securing customer feedback on the 90-percent over the past three years, the mines have by

Rand Water Sustainability Report 2009–2010 14 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

5-percent and the industries and direct consumers also This is attributed to the heavy rains experienced within indicated a decrease from 93-percent to 87-percent. Rand Water’s area of supply, as well as the various water demand management interventions made by the Potable Water Sales different customer segments in response to the national call to reduce non-revenue water by 15-percent. The The potable water sales during the year under review are consumption of water by mines has also decreased by 1.42-percent below that of the 2008/09 financial year. 2-percent in the past five years due to closure of certain mining operations as well as the increasing use of grey Potable Water Sales water for production purposes by mining houses.

4 000 Municipalities consume the bulk of the potable water, the

3504 amounts consumed by the mines continues to fall, and 3 500 3454 3 383 3 368 the industry and direct consumer consumption levels have 3 150 3 000 remained stable.

2 500 Rand Water’s Five-Year Potable Water Sales Growth

2 000 3 800 3 773 8,0% 3 710 6.82% 7,0% 3 700 1 500 3 668 3 649 6,0% 5,0% 3 600 3.39% 4,0% 1 000 3 500 3,0% 3 434 2,0% 3 400 500 1,0% 238 234 217 229 0,0% 207 3 300 51 48 51 48 50 -1,0% 0 -0.52%

3 200 -0,16% -2,0% Percentage growth (year-on-year) 2005– 2006– 2007– 2008– 2009– -1.70% 2006 2007 2008 2009 2010 Potable water sales – (megalitres/day) 2006 2007 2008 2009 2010 Municipal Customers Total average daily sales (ml/day) % Growth Mining Customers Industrial/Other Customers 15 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships (continued)

Water Sales and Usage

Rand Water Total Potable Water Sales FY 2010

1.3% 5.59%

93.11%

Local Municipalities Mines Sales Industrial & Direct Customer Sales

Table 5: Summary of Customer Value Management Evaluations

FY 2010 FY 2010 \ Budget (ml/d) Actual (ml/d) % Variance Budget (ml/d) Actual (ml/d) % Variance All consumers 45,600 44,588 -2.22% 45,626 44,913 -1.56% Local municipality sales 42,312 41,551 -1.80% 42.404 41,898 -1.19% Mine sales 2,707 2,458 -9.20% 2,652 2,429 -8.41% Industry and direct customer sales 582 579 -0.34% 570 586 2.63%

Quality of water supply

Blue Drop Green Drop Initiative 11 September 2008. In June 2009, this regulatory concept was presented to the Drinking Water Regulators The Department of Water Affairs and Environment Network (RegNet) of the World Health Organisation in initiated the drinking water quality (DWQ) regulation Singapore. Regulators were generally impressed with this programme in 2005 with the objective of ensuring fresh concept and what it has achieved in a short space the improvement of tap water quality by means of of time. The Drinking Water Inspectorate (UK) supported compliance monitoring. A survey conducted in the by means of providing advice and exposure to their preceding year indicated that less than 50% of manner of regulation; this through an informal relationship municipalities then monitored drinking water quality which was initially established in 2004. as per legislated requirements. The introduction of the regulation initiative saw the monitoring performance The Blue Drop Certification programme is only in its improving to 100% by early 2008. However this second year of existence and promises to be the catalyst improvement did not necessarily instil public confidence for sustainable improvement of South African drinking due to the prevailing extensive negative reporting on water quality management in its entirety. This is derived water quality at that stage. This phenomenon triggered from the evidence of holistic improvements detected in the initiation of an incentive-based regulation programme, various areas of the drinking water quality management termed Blue Drop Certification, which commenced on discipline. In spite of it being early days, it is remarkable

Rand Water Sustainability Report 2009–2010 16 The number of Water Services Authorities assessed increased from 66% (2009) to 94% (2010).

2009 2010

107

153

55 9

WSAs Assessed WSAs Assessed WSAs Not Assessed WSAs Not Assessed

National 2010 Municipal Blue Drop Performance >90% (Excellent) 75%-90% (Very Good) 50%-75% (Good) 33%-50% (Needs Attention) <33% (Needs Urgent Attention)

55% of all Municipalities scored higher than 50% which portrays gradual improvement, and 24% of municipal drinking water management programmes were found to be wanting of more substance, which will ensure that good tap water quality could be sustained. But generally there has been improvement since the inception of the Blue Drop Certification programme.

to note the heightened levels of commitment to drinking were assessed in 2010). This implies that 347 water water quality management detected within the municipal supply systems were assessed for the first time ever. fraternity. This all is to the good of the general public who depend on tap water to sustain their livelihoods. • The Blue Drop Requirements increased from 6 to 9. Water Safety Plans, Asset Management and DWQ The significance of this improvement is put into context Performance Publication were introduced as new when considering the fact that this improvement occurred requirements and accumulatively accounted for 25% in spite of: of the weighting.

• The number of systems assessed in 2010 almost doubled on the 440 assessed in 2009. (787systems

17 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships (continued)

Compliance & Monitoring Trend (Microbiological)

Aug 08 Jan 09 Jan 10 14000

12000

10000

8000

6000

4000

2000

0 Samples Taken Number of Samples Complying

This graph indicates the immediate improvement in sampling and compliance levels since the inception of the Blue Drop Certification Programme. (The reduction in February 2010 is due to the delay in laboratory results submission on the Blue Drop System (BDS) and thus not being available at the time of print). This trend though is indicative of an evident paradigm shift since the introduction of incentive-based regulation.

Blue Drop 2010 Performance • City of Ekurhuleni Non Assessed Systems • Emfuleni The 2010 Blue Drop Assessments that were carried • Mogale City highlighted a significant improvement in compliance in the sector. To achieve a Blue Drop status, water services Four trophies: for Excellence recognition for top providers must meet both of the following requirements: 10 municipalities. • Quality of water supplied to consumers • Ekurhuleni • High standard of Water Quality Management System • City of Joburg • Mogale City Rand Water maintained its Blue Drop certification, thus • City of Tshwane ensuring the municipalities and public it serves of a continued commitment to sustain a safe water supply and The audit also served to highlight improvements that quality management systems. are required in this sector. Out of the 162 Water Services Authorities that are in the country, nine did not Rand Water also assisted the top six municipalities within participate in the process. The Department of Water its service area of supply to obtain Blue Drop status. Affairs and Environment have undertaken to pay special attention to these municipalities in order to ensure that the Six certificates of Excellent Drinking Water Quality public is informed on the state of drinking water quality Management were awarded to: management in water supply systems under their areas of • Rustenburg Water Supply System jurisdiction. In order to assist in this process, Rand Water • City of Tshwane has also undertaken to assist three of the municipalities • City of Johannesburg that did not comply.

Rand Water Sustainability Report 2009–2010 18 Table 6: The Blue Drop Performance noted in the audit carried out revealed the following results:

Blue Drop Scores Microbiological Chemical Physical Compliance Compliance Compliance Gauteng 85.54% 99.50% 99.70% 99.60% National Average 70.75% 97.30% 1 99.50% 2 99.00% 2

1 Microbiological compliance will remain the main benchmark for DWQ performance measurement. The National Standard (SANS 241:2006) sets a target of 97% while the Blue Drop excellence target is set at 99% 2 With the drive to enhance data credibility (through the “step ladder” approach towards accreditation and implementation of water safety plan informed monitoring programmes), it is expected that these compliance figures would slightly decline, yet the target will remain 95% as set in the national standard

Catchment Management well as selected water quality variables. The instruments are linked to data loggers equipped with cell phone Rand Water staff actively engage with stakeholders at technology, through which the data is sent to a central Catchment Forum level to address water management server. This real time information of the determinants issues. Water quality reports are produced and measured is available online to staff in the Water Quality discussed, highlighting both “hot spot” issues as well as Specialist Services Department of the Organisation. cumulative trends in water quality

The equipment is also programmed to send warnings Rand Water actively participates in the Upper Vaal via SMS to the relevant staff members’ cell phones when Catchment Management Agency (CMA). Engagement certain water quality variables exceed specified limits. also takes place at a higher level through the Vaal This system will vastly improve response time to pollution Barrage Catchment Executive Committee (VBCEC) and incidents, as well as significantly improve the information various government steering committees. This process base, which will contribute to a better understanding continues even in the absence of the establishment of the of the dynamics of the Vaal River system. The system Upper Vaal CMA, as Rand Water views the protection has proved very effective in enabling Rand Water to of its source waters as vital to its ability to provide an neutralise problem areas as they arise. uninterrupted supply of world class potable water

An informed customer base is also important to Rand The rivers and dams in the catchments of Rand Water’s Water and in this regard the www.resevoir.co.za area of interest are extensively monitored and a great website, which provides a wealth of water quality related deal of effort goes into communicating the water quality information in respect of both drinking and source water status of the catchments to the consumers. This takes quality, is maintained for public information. The website place through involvement in each and every Catchment is extensively used by the public, research institutions, Forum and the Upper Vaal Water Management Area’s consultants and water quality managers. website, www.resevoir.co.za, which is maintained by Rand Water. Rand Water fulfils the role of water quality Climate change auditor and facilitator in these forums, as it has the most comprehensive database of chemical, biological, and During the year under review, climate change was again microbiological information. on the top of the international political agenda, and it continues to make serious inroads in international trade As a result of the increasing water quality problems, markets as well. It is obvious that business will have to economic pressures and uncertainties surrounding play a major role in the fight against climate change, incidents such as fish kills, Rand Water installed a and Rand Water has decided to respond to remain number of electronic monitoring units at selected sites in abreast with developments and proactively implement the Vaal and Wilge Rivers and the Vaal River Barrage measures to align itself with government’s position. reservoir. These instruments measure flow at weirs as

19 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships (continued)

South Africa’s commitment at Copenhagen can be Fortunately, during the year under review, improvements consolidated as follows: in the effluent levels from the waste water treatment plants Depending on the level of international financial support have already been observed. This can be ascribed to to the country and a legally-binding agreement at the Rand Water’s interventions; and the monitoring and United Nations Climate Change Conference (The reporting of spills, combined with the “Green Drop” Conference is officially referred to as the 16th session of assessments being executed by the Department of Water the Conference of the Parties – COP 16), such actions Affairs and Environment. The fact that action is being contemplate: taken is comforting, and is an indication that awareness levels among stakeholders remain high. Rand Water • 34 percent deviation below the “Business as Usual” has also undertaken to assist municipalities that may emissions growth trajectory by 2020; and, encounter problems with their waste treatment works and to this end, several initiatives are already underway. • 42 percent deviation below this trajectory by 2025. Efforts in this area are detailed under the Environmental Rehabilitation Projects section. Rand Water acknowledges the potential impact of climate change on its operations, and has initiated a The Vaal Barrage catchment receives extensive volumes programme to include climate change matters in all of water from point source discharges. The point source spheres of business planning. discharges include the major wastewater treatment works run by Joburg Water, East Rand Water Care As a result of South Africa’s sensitive water hydrology, Company (ERWAT) and Metsi-a-Lekoa as well as the general aridity and high precipitation variability in space discharges from gold mines. A significant portion of and time, South Africa is especially vulnerable to climatic the contamination arises from mines and there are also change. industrial effluent discharges from the Sasolburg and Vanderbijlpark areas. The discharge volumes from the Rand Water is exposed to a number of risks, both in wastewater treatment plants will grow with time as the terms of water supply and water quality, and will react to water requirements grow and the level of services are this threat by preparing response strategies dealing with improved with the expansion of water borne sewerage these identified risks. systems in the urban areas.

These risks include issues such as: The two most important water quality issues to be • Security of supply managed in the Barrage catchment for most of the • Extended maximum demand periods sample points are biological (in the form of faecal • Algal blooms coliforms) and chemical (in the form of gold mining • Waterborne diseases and industrial impacts through manganese, sodium and • Damage to infrastructure sulphate).

Rand Water is mindful that that such preparedness is The more difficult issue of water quality management likely to make the difference between a water-secure is that of controlling diffuse sources of pollution. In this country and poverty- stricken, water-insecure country. regard, the biological impact of uncontrolled wastewater runoff from informal settlements, burst pipes due to lack Impact of run-off, contamination of water sources, of maintenance and general lack of waste management discharge of raw sewerage into water sources. has seen deterioration in biological water quality over the year. This can and will lead to potential harmful The spillage of raw sewage continued in the Vaal effects on the human populations who use the Barrage Barrage reservoir with high levels of nutrients and faecal catchment river systems for domestic and recreation uses. bacteria.

Rand Water Sustainability Report 2009–2010 20 Regarding the eutrophic status of the Vaal River system, comprehensive and more stringent internal production the Vaal River downstream of the Vaal Dam is severely specifications, designed to provide Rand Water with a impacted resulting in a degradation of ecological buffer, so that it can deliver to its customers with certainty integrity. It must be noted that the Vaal Barrage catchment on the SANS 241 specifications. is described as a serious “hotspot” with the highest levels of pollution (bacteria, algae, heavy metals, Water Quality measurement and Reporting salts and nutrients) recorded throughout the entire Vaal Rand Water has extensive measurement capacity River system. The pollution levels in the Klip River and consisting of three ISO 9001 certified site laboratories, Rietspruit catchments of the Vaal Barrage catchment more than 500 online instruments and an offsite ISO are unacceptably high and the scale of nutrient inputs 17025, as well as an ISO 43 accredited laboratory. far exceeds the capacity of the natural environment to Extensive monitoring programs during the year under assimilate the waste discharged into these river systems. review were documented and complied to. An online Steps are being taken to address the contamination and instruments upgrade program was also started. some of the successes scored so far are covered in the Environmental Rehabilitation section of the report. Water Quality Management System

Acid Mine Drainage Rand Water is committed to a documented systematic risk based water quality management system. In line with this, The decanting of acid mine drainage from various mines a Water Quality Safety Plan (WQSP), which is based on in the Johannesburg region received enormous attention Hazard Analysis and Chemical Control (HACC) and ISO in the media. The decanting of this water poses serious 9001 principles, has been documented. threats with respect to the destruction of infrastructure as a result of the formation of sinkholes as well as the A preliminary detailed water quality risk register has contamination of the catchment area through water also been established. An initiative to align different site spillage into streams. Proposals to treat this water to procedures with the WQSP has commenced. In addition, potable standards are being dealt with at government an organisation-wide multi-stakeholder water quality level. management standing committee has remained functional over the past five years. An additional concern with respect to acid mine water is the high number of mining applications for new coal Water Quality Benchmarking mines to feed Eskom’s increased demand. Most of these mines are in the upper reaches of the Vaal River’s During the year under review, Rand Water continued catchment, and will destroy the lifeline of Rand Water’s to benchmark the quality of water supplied to local consumers if pollution cannot be curtailed. Rand Water authorities against the World Health Organisation continues to engage with various interested parties in (WHO) drinking water quality guidelines. The results order to address any issues arising therefrom. compared favourably with the WHO water quality guidelines. Production Water Quality Assurance Water Quality in the Bulk Distribution Network Water Quality Specifications Water Quality Specifications Rand Water has adopted the SANS 241 drinking water quality standard (95% compliance to Class I, and 99% Rand Water has adopted the SANS 241 drinking water compliance to Class II) as delivery specification to its quality standard (95% compliance to Class I, and 99% customers. In addition, the organisation has a more compliance to Class II) as a delivery specification to its

21 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships (continued)

customers. In the absence of a national specification Determination of Water Quality Risks for a particular parameter or group of parameters, It is necessary to determine those water quality risks that benchmarking against the WHO Drinking Water Quality can affect the integrity of the supply. During the year Guidelines were adopted as the norm. The drinking under review, a water quality risk register for the bulk water quality delivered to Rand Water customers during distribution network was developed after interacting with the year under review remained of excellent quality. the relevant stakeholders within the Bulk Water Services All physical, chemical and biological health related cluster. This register, which is one of the Blue Drop parameters were complied with. requirements, is updated on an ongoing basis.

Water Quality Assurance Activities External Verification of the Quality of Potable Water supplied by Rand Water to Local Authorities Alignment of Site Procedures to the Requirements of the To ensure confidence in the quality of the water supplied Water Quality Safety Plan (WQSP) by Rand Water, an independent water quality audit Rand Water began an initiative to align its different site was again conducted during the year under review. The procedures with the WQSP. Areas where procedures organisation subjected itself to an independent system to were required were identified and aligned to those of the assess water quality supplied to customers. The Centre WQSP. This will continue to be an ongoing process to for Science, Information and Industrial Research (CSIR)’s ensure that water quality assurance activities are adhered Analytical Services team was contracted to render the to throughout the entire bulk distribution network, and to service, and the result of the exercise can be seen in the ensure that initiatives for public health protection via the Table 7 on the following page. delivery of safe drinking water are implemented.

Rand Water Sustainability Report 2009–2010 22 Table 7: 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

23 Rand Water Sustainability Report 2009–2010 Strategic Customer Partnerships (continued)

Routine Organics monitoring none of these compounds were detected at levels that Monitoring of organic parameters is subject to an are considered a danger to human health. A set of water ongoing investigation as the measurement of these quality monographs for each of the organic compounds parameters is complex, and limited analytical capacity or group of organic compounds was produced. The is available in South Africa. Table 8 contains some water quality monographs are used as an information compounds that have been assessed in the Rand Water and support tool. drinking water value chain. During the year under review,

Table 8: 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

Rand Water Sustainability Report 2009–2010 24 (Table 8: continued)

Organic Contaminant Classification Concern to the Drinking Water Industry

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 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

25 Rand Water Sustainability Report 2009–2010 Infrastructure and the Approach to the Management of Strategic Assets

Rand Water’s infrastructure is a multi-billion rand asset that Planning needs to be managed and leveraged in order to extract After decades of expansion to meet the challenge of maximum value, and has to be monitored to avoid risk. infrastructural development and population growth, With 70-percent of the Organisation’s infrastructure Rand Water’s current infrastructure capacity is more than expenditure work taking place through augmentation adequate to meet its customer’s requirements until 2012. to meet the growth in demand; other projects are also This is, in itself, remarkable considering that in 1965, initiated to reduce operating costs, improve treatment Rand Water was supplying just 1 000 Megalitres per processes, enhance plant safety, as well as to extend the day (Ml/d) and that demand is expected to increase life of its existing assets. Rand Water estimates demand four-fold to 4 000 Ml/d by 2012. in growth to continue, but with a long term decline in annual growth rates. Rand Water is now ensuring that it will be ready for the demands of 2020 and beyond, by focusing on The age and replacement value of existing assets will infrastructure refurbishment and development. The also continue to increase. In response, Rand Water Organisation works on a 20-year planning horizon, has an asset management division to co-ordinate and driven mainly by projections and the forecasts of future optimise its existing asset management streams. Best water consumer needs. This involves extensive research practice will continue to be confirmed for design, and the analysis of trends and usage patterns, and operation, maintenance, rehabilitation and the disposal through the engagement with various stakeholders on of each asset category, in order to support the required their expectations. levels of service at a minimum lifecycle cost. The management of the existing assets will therefore be Capital expenditure is provided for the development of planned in conjunction with augmentation to meet new infrastructure, and the refurbishing and upgrading demand growth. of existing infrastructure. Project approvals incorporate numerous areas, including pipeline links to reservoirs, Infrastructure pumping stations and purification works. Rand Water operates a network of 3 500 km of pipelines, including two large combined pumping By maintaining and expanding its infrastructure, Rand and purification stations (situated at Vereeniging Water is thus securing and sustaining water supply with and Zuikerbosch), four booster pumping stations regards to quality and quantity - the core of its business. (Zwartkopjes, Palmiet, Mapleton and Eikenhof) and a Rand Water plans to spend R8 billion in the next five number of enclosed reservoirs. Two-thirds of the value years on the upgrading and refurbishing of its water of this infrastructure, estimated to be worth R60-billion supply infrastructure. Of this, 70 percent is allocated for at replacement value, is located within Rand Water’s augmentation schemes, with the remaining portion being pipelines infrastructure. allocated for renovations and the upgrade of its existing infrastructure.

Rand Water Sustainability Report 2009–2010 26 Rand Water Supply System

Rand Water primarily draws raw water from the Vaal • Zwartkopjes (green) – central Johannesburg and a River System. Two river stations – Zuikerbosch and high-lying portion of the East Rand. Vereeniging – abstract, purify and pump into the network some 98% of the water supplied to our customers. About • Palmiet (blue) – eastern and northern Johannesburg, 90% of this water is further pumped by four primary large parts of Tshwane, and western portions of booster stations situated on the southern side of the Ekurhuleni. Witwatersrand ridge. • Mapleton (yellow) – central and eastern parts of The portions of the network supplied by each pumping Tshwane and Ekurhuleni, and selected areas in station are indicated by colour coding all significant Mpumalanga. customer supply points on the map as follows: Projected Growth in Water Demands • Zuikerbosch / Vereeniging direct (brown) – southern Total average daily demand for the Rand Water Gauteng and northern Free State (localised), in network is projected to increase from the current 3700 addition to supply to all booster pumping stations. Ml/d to around 5200 Ml/d in 2025. This gives an average rate of demand growth of 2.1% per annum • Eikenhof (pink) – western and north-western over this period. The three metros supplied by Rand Johannesburg, the West Rand and greater Water –Johannesburg, Ekurhuleni and Tshwane – are all Rustenburg.

27 Rand Water Sustainability Report 2009–2010 Infrastructure and the Approach to the Management of Strategic Assets (continued)

projected to grow at this rate. The metros consume 75% of water supplied from our network.

Projected peak demands by main system

The hydraulic modelling process, forecast demands are added at each significant supply point. This allows the estimation of peak flows in each pipeline, and peak demands on each of the pumping stations. Results for each of the major systems are given in the table below (quoted capacities exclude standby units).

Table 9 – Peak demand forecasts and augmentation dates for main pumping stations

Proposed Proposed Design Projected peak day demands additional year of Station capacity (Ml/d) capacity augmentation (Ml/d) (Ml/d) (first phase) 2015 2020 2025 2030 2035 Zuikerbosch 3900 1200 2015 3910 4500 4030 4550 4080 Vereeniging 1400 Nil N/A 1400 1400 1400 1400 1400 Clarens Scheme Nil 1000 2025 1000 1000 2000 Eikenhof 2000 Nil N/A 1400 1550 1700 1840 1980 Zwartkopjes 800 200 2012 700 760 820 880 930 Palmiet 1870 600 2015 1880 2100 2300 2500 2700 Mapleton 960 300 2016 920 1040 1140 1240 1340

Pipeline renovation

Less than 10-percent of Rand Water’s 3 500-km pipeline 15 and 50 years old. A programme of refurbishment, network is constructed from concrete, the balance are renovation and replacement is therefore critical. With manufactured from steel. Over the next five years, Rand this in mind, in 2005 Rand Water, commissioned Rand Water will renovate or replace all its concrete pipelines Water Services (Pty) Ltd to conduct an aerial survey of – about 200 km – with steel pipes where the condition its pipeline network through the use of thermal remote is not acceptable in terms of risk. Thereafter, an ongoing scanning technology. Thermal remote scanning detects repetitive condition assessment will be carried out with leaks in large diameter pipes, allowing for early repairs, the exercise repeated, as necessary. Steel pipes are and a reduction in water loss. more suitable than concrete, as they tend to develop leaks, rather than rupture. Concrete is more susceptible During the aerial survey, digital seamless maps are to rupturing, and thus potentially causing damage to both produced, and these are geographically modified for use people and property. in provincial or local government Geographic Information Systems (GIS). High-resolution infrared images are A percentage of Rand Water’s pipelines are in the region produced together with a high definition video output of 70 years in age, with the overall majority between linked with Global Positioning System (GPS) information.

Rand Water Sustainability Report 2009–2010 28 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

Infrastructure Expansion and and maintain the water pipeline after its construction. Rehabilitation Projects The Environmental Impact Assessment (EIA), servitudes processes and the design are currently underway. It is anticipated that this project will be commissioned in Specific Pipeline Renovation Projects November 2012. The phased reconditioning of the 1800 mm diameter O2 pipeline is an ongoing project since its Western Highveld Region commencement in the previous financial year. The 32km Rand Water was appointed as the implementing agent long pipeline, which runs from Alberton to Kempton Park, for the Mpumalanga Western Highveld Region by has taken two years to re-condition, largely due to the Department of Water Affairs and Environmental Affairs. length of the pipeline and the need to avoid operational Rand Water’s engagement is for the management, disruption, particularly at peak demand periods. The operation and maintenance of the water supply services project involves inserting steel lining into five kilometres of in the southern part of the Western Highveld Water the O2 pipeline, as well as the fixing and renovating of Supply Scheme. This also includes the Kungwini bulk its joints and valve chambers. water supply services in the Bronkhorstspruit, Ekangala and Ekandustria areas. Implementation of pipeline from Bloemendal pumping station to Delmas Rand Water’s involvement with the short term support In October 2008, Rand Water, together with the intervention has positively impacted the following aspects Department of Water and Environmental Affairs, of bulk potable water services provision: the Mpumalanga Department for Provincial and • Water quality Local Government, the Delmas Local Municipality • Water supply management (now the Victor Khanye Local Municipality) entered • Equitable distribution to cross-border communities into an agreement on this 34km project. In terms of the agreement, Rand Water was appointed as the The Department of Water Affairs and Environment has implementing agent, to construct a 500mm diameter extended the appointment of Rand Water, with the water pipeline from its Bloemendal pumping station to additional responsibility of providing services to the entire the Municipality. Rand Water will continue to operate Western Highveld Region.

29 Rand Water Sustainability Report 2009–2010 Infrastructure and the Approach to the Management of Strategic Assets (continued)

Table 10: 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%

Capital Works and Capital Projects

During the year under review, Rand Water’s actual Mnandi and other growth areas between Midrand and capital expenditure in the augmentation and rehabilitation Pretoria, and it will also extend the regional bulk supply of infrastructure and assets amounted to R934,7 million. to areas around the Hartbeespoort Dam. Installation of Of this, R887,6 million was for infrastructure under the first portions of the scheme (H33, H34 pipelines) Independent Capital Projects; and R46,3 million for is complete, and it is already assisting with supply to moveable assets and R0,8 million for land and rights. the Diepsloot supply zone for Joburg Water. The system The overall expenditure was R934,7 million against an extension along a new route towards Hartbeespoort Dam overall budget of R1000 million, equalling 93-percent of (H35 pipeline) is currently in progress. the capital expenditure. Vlakfontein Reservoir to Mamelodi The value of approved work to 30 June 2010 under pipeline augmentation the Independent Capital Projects budget amounted to This project strengthens an existing route, supplying R5 585 million of which the outstanding value of under gravity from Vlakfontein Reservoir, north of Benoni, approved work in progress amounts to R1,897 million. through to eastern and central areas of the Tshwane Metropolitan Municipality. In addition to growth in The work includes numerous projects necessary to existing areas of supply, the pipeline supports supply to ensure that Rand Water is able to meet the needs of an extended area of service, including the Mpumalanga its consumers throughout its area of supply in the most Western Highveld Region. efficient and cost effective manner. Overall, these projects range in value from R200 000 to over R600 million. The installation of the first leg, a 1500 mm diameter pipeline from the Vlakfontein Reservoir to the Rietvlei Major Capital Projects Nature Reserve, south-east of Pretoria, is in progress. This leg supplies growth along the route, and terminates at the Rand Water embarked on capital expenditure on point of supply to the major Garsfontein Reservoir zone more than 300 projects during the year under review. at the Tshwane Metropolitan Municipality. The extension However, the top five projects accounted for more than to the Mamelodi termination is at present in the planning one third of total capital expenditure. These five projects phase, and will be informed by growth in demand from involve augmentation, upgrading and extension of areas in the east of Tshwane, as well as in the expanded pipeline routes, emphasising the importance and value area of service. of pipelines, as a proportion of Rand Water’s total infrastructure. BG3 raw water pipeline augmentation This 3500 mm diameter pipeline increases the capacity Brakfontein to Hartbeespoort Dam Scheme of the system supplying raw water under gravity from the This project will initially strengthen the supply to Diepsloot Vaal Dam to the Zuikerbosch Purification and pumping and environs. Subsequent stages will include supply for

Rand Water Sustainability Report 2009–2010 30 Station. The pipeline runs parallel to Rand Water’s Weltevredenpark 100Ml Reservoir – northwest existing 3500 mm diameter BG2 pipeline. Fabrication of Johannesburg of the new pipeline has commenced, and installation is This R130 million project is underway and is expected scheduled for completion by 2012. The new pipeline to be complete during the 2009/10 financial year. will be laid between the BG2 and the Vaal River. A The construction of the reservoir, inlet structure and site large portion of the excavation is in rock, which requires pipework is complete, waterproofing, sterilisation and blasting, close to the existing line. Sections of the line testing are to follow. Commissioning and handing over is are also close to the river bank, which will necessitate expected during 2010. continuous pumping to remove water from the trench. Installing such a large pipeline under these conditions Installation of Cathodic Protection System on the will be a huge engineering feat, and careful planning, Rand Water pipeline network monitoring and control will be needed. The Rand Water pipeline network is exposed to corrosion from stray water current sources, corrosive soils, and H14 Lyttelton to Rosslyn pipeline: partial deviation microbiological corrosion, this can result in metal loss and and augmentation potentially threaten the integrity of the pipeline network. It A portion of Rand Water’s pipeline network runs over is therefore necessary that corrosion mitigation measures dolomite ground conditions, which can affect the be in place for the prevention of corrosion. infrastructure mainly due to the formation of sink holes. In a worst case scenario, such as that which occurs along The implementation of Carthodic Protection (CP) System is the eastern portion of the H14 pipeline, sinkhole activity per the geographical regions of the pipeline network and can force the relocation of affected pipelines. the pumping stations. Cathodic Protection and Corrosive surveys have been completed throughout the entire Rand The H14 pipeline is part of a system that supplies Water pipeline network as well as the pumping stations. municipal reservoirs in central Pretoria. The eastern The Installation of CP at Zwartkopjes, Zuikerbosch and portion of the line is being rerouted and increased in Vereeniging and in the regions is in progress, and the capacity. It will run closer to the municipal reservoirs, anticipated completion date for the entire Rand Water allowing portions of the municipal pipework, also network is scheduled for 2014. affected by the dolomitic activity, to be decommissioned.

Upgrade of N7, N8 pipelines from Secunda to Bethal Other Projects being undertaken This eastward leg of Rand Water’s infrastructure runs into Mpumalanga Province. The portion from Secunda to the Raw Water Supply termination at Bethal was acquired from the municipality, and contains small diameter asbestos cement pipes. The current raw water supply pipelines to both These are being replaced with steel pipes to increase Zuikerbosch and Vereeniging stations do not have capacity and improve their reliability. sufficient capacity to meet 2015 demands, and the following projects are proposed to meet system demands An interesting feature is that much of the pipeline is to 2025: recovered from elsewhere in the network, having become too small for the current need. This occurs • Duplication of the Vaal Dam – Zoekfontein raw water when the pipeline is still in an acceptable condition; it pipeline (9 km x 3500 mm diameter) is then refurbished and can be used in a relatively low capacity part of the network, at a substantial savings in • Duplication of the Lethabo – Vereeniging raw water comparison to the purchase of a new pipeline. pipeline (14 km x 2500 mm diameter)

31 Rand Water Sustainability Report 2009–2010 Infrastructure and the Approach to the Management of Strategic Assets (continued)

Implementation of System 5 at Zuikerbosch • Duplication of the Kwaggaspoort - Gomsand pipeline Pumping Station route (10 km x 1000 mm diameter) In order to meet projected 2025 peak demands, construction of a new purification and pumping system Augmentation of the Mapleton supply system with a design capacity of 1200 Ml/d is proposed. The Mapleton pumping station zone currently constitutes The first phase should provide not less than 600 Ml/d about one sixth of total Rand Water demand, and this available capacity, which will be sufficient to meet demand is projected to grow by 300 Ml/d between projected 2020 peak demands. The following main 2015 and 2030. The following projects are intended to components are required: cater for system demand to 2030: • Site and services • Raw water supply • Installation of additional capacity at Mapleton • Sedimentation system pumping station (2 x 200 Ml/d pumpsets) • Dosing systems • Filtration system • Installation of remainder of the Mapleton – Rynfield • Engine room and associated works pipeline (16 km x 1800 mm diameter) • Power supply • Instrumentation and supervisory systems • Augmentation of the Vlakfontein – Mamelodi pipeline system (34 km x 1500 mm diameter) We continue to engage with the Department of Water Affairs and Environment on these matters and have • Augmentation of the Van Dyk’s Park – Brakpan provided our input into the national strategy that is being pipeline route (8 km x 1400 mm diameter) implemented to ensure sustainable water supply. Renovation and Augmentation of the Palmiet supply system replacement projects The Palmiet pumping station zone currently constitutes about one third of total Rand Water demand, and has Upgrade of purification systems at Zuikerbosch the highest projected demand growth of the four main pumping station booster pumping station zones – some 600 Ml/d increase between 2015 and 2030. The following Much of the purification plant at the river stations has projects are intended to cater for system demand been in operation for many decades, and actual to 2030. outputs have been reduced below design figures in order to meet current standards for quality, health • Augmentation of the Zuikerbosch – Palmiet pipeline and safety. Downtime for maintenance and cleaning route (45 km x 2300 mm diameter) has also increased. Projects are planned to replace or supplement capacity to return systems to design • Construction of Engine Room 3b at Palmiet pumping capacities: station (4 x 200 Ml/d pumpsets) Systems 1 and 2: Installation of a 250 Ml/d filter block • Partial augmentation of the Palmiet – Klipfontein to replace filter block 2b, and 200 Ml/d sedimentation pipeline system (18 km x 2100 mm diameter, 6 km x tanks to improve quality, augment and add standby 1800 mm diameter) capacity.

• Augmentation of the Klipfontein – Brakfontein pipeline Systems 3: Installation of a 400 Ml/d sedimentation route (14 km x 1700 mm diameter) tanks to replace older systems, augment and increase standby capacity.

Rand Water Sustainability Report 2009–2010 32 Systems 4: Installation of a 250 Ml/d filters block and 70 people from the local communities with intensive 400 Ml/d sedimentation tanks to augment and provide training and development plans for capacity building; standby capacity. • Buy-in, commitment and support from estate owners Hartbeespoort Dam Biological Remediation around the dam regarding the intiative of the Programme (Harties Metsi a Me) programme;

Rand Water was appointed as the Implementing Agent • Development of training material; for the Hartbeespoort Dam Biological Remediation Programme by the Department of Water Affairs and • Communication and awareness creation to various Environment in June 2006 to address and remediate the stakeholder groups including schools; dam from its current hypertrophic status.

• Establishment of a Steering Committee with a The following has been achieved through the documented plans for transformation into an programme to date: Intergovernmental Forum; • Development of a 100% biological remediation plan for the restoration of water quality. Absolutely • Development of a comprehensive Resource no chemicals are utilised. This is the first of its kind Management Plan (RMP) document after intensive in the country if not in Africa to adopt a integrated public participation and involvement which biological approach to address water quality issues; will specify the rules and restrictions related to the management of the water body as well as • Pioneering of an inland waters buoy marker provide direction on the establishment of a Water system which has been adopted by SAMSA for Management Institute. implementation to all inland water bodies;

The project is funded by the DWAE with a total value of • Development of floating islands to compensate for R93 million to date. It is envisaged that the programme areas where riparian vegetation rehabilitation is not will eventually be handed over to a Water Management an option; Institute, one of the outcomes of a comprehensive Resource Management Plan development process, which • Implementation of foodweb restructuring is the first of will continue the efforts currently being undertaken by the such an initiative in the country. 68 tonnes of coarse Metsi a Me Programme. fish (carp and catfish) already removed; Research and Development Projects • Physical removal of biomass (algae and hyacinth) from the dam water surface. To date 15 922 m3 Rand Water’s focus is in three main areas, being: of algae, 26 894 m3 of hyacinth and 752 m3 of • the development of Intellectual Property guidelines debris have been removed from the dam; and policies;

• All ‘waste’ material is recycled and reused for • the co-ordination of internal and external research beneficial purposes, therefore no waste is generated work; and by the programme; • the development and application of new processes • Development and implementation of Integrated Water and materials for pipelines. Use Licenses for housing estates around dam; Pipelines account for the major part of Rand Water’s • Sustainable employment has been created for over capital budget expenditure.

33 Rand Water Sustainability Report 2009–2010 Infrastructure and the Approach to the Management of Strategic Assets (continued)

Examples from each of these three areas are as follows: One project which was funded by the Water • A multidisciplinary team drafted an Intellectual Research Commission (WRC) involves the use of Property Policy document that has been approved grouted polyethylene liners to seal leaks in old steel by the Board. This work needs to be extended by pipelines. This project will be extended with the mapping and assessing Rand Water’s intangible building of a test facility at the University of Pretoria. assets. • The new 3.5m diameter Vaal Dam – Zoekfontein • Research and development is undertaken directly by pipeline has been designed using the findings from Rand Water as well as by using external agencies the research work conducted at Brakfontein Reservoir such as universities, the Water Research Commission in 2001 for the proposed Clarens – Johannesburg (WRC), and suitably qualified consultants and pipeline. It has been possible to reduce the wall contractors. Rand Water also funds two Chairs thickness from 11.5mm to 10mm resulting in a saving of Water Utilisation, one at the University of of about R10 million in steel pipe supply. Johannesburg, the other at the Tshwane University of Technology. Both these Chairs at one stage resided • New planned pipeline research and development at the universities of the Witwatersrand and Pretoria, projects include the comparable testing of discrete and Rand Water continues to retain on-going projects and continuous anodes for Cathodic protection of with both of these universities. steel pipelines, the Cathodic shielding of coating defects by different types of pipe bedding bond • Typical pipeline related projects are those breakers, and the testing of prototype power sources dealing with leaks, friction factors, bio-films, for pipeline flow meters. detection of air pockets, performance of epoxy and polyurethane linings, in-line filters for bitumen • Evaluation and testing of pipeline lining and coating particles etc. Unfortunately this work is dependent materials including those for protection of field joints upon suitable staff or students and will need to is on-going. This is done through laboratory testing be co-ordinated more effectively. Rand Water and the installation of trial sections of pipeline where requires an organisational home and custodian performance can be monitored over several years. for technical research and development and this is being considered in the thrust for growth, operational Development of additional water sources integrity, and best-fit technology. Rand Water is aware of the concern that exists around the adequacy of sustainable water supply in Gauteng • The pipeline renovation programme is generating a and its environs and to this end, it continues to engage continuous need for research and development with with the DWAE with respect to the development of new innovative methods of evaluating pipeline condition and alternative water sources. Plans are being mooted at and advanced techniques and materials are being a government level to address these concerns. used to repair or replace the old pipelines.

Rand Water Sustainability Report 2009–2010 34 Environmental Impact of Operations

Impact on Wetlands International and South African experience has however shown that it is possible to recover some of the health and Wetlands – both natural and constructed - are able to values of degraded wetlands. To this end, Rand Water has purify water because of their ability to filter suspended embarked on programmes to rehabilitate wetlands and to solids, to degrade organic substances and to take up educate people on their importance and the critical role nutrients from the water. Wetlands also perform vital that they play in the water management cycle. functions in the water cycle and are important for flood management, climate and promotion of ecological Environmental Authorisations and Reinstatement biodiversity. In order for Rand Water to ensure its compliance with The ecological significance of wetlands increases due to the appropriate legislation, it is essential for various the fact that the wetness associated with these habitats studies, public participation processes and plans be exercises a major influence on the species composition of undertaken to allow for the necessary approvals to be wetland biota. Consequently, many animals are wholly granted by authorities. With ever increasing urbanisation, or partially dependent on wetlands for refuge, feeding the need for more infrastructures to service the demand and breeding purposes. for water continues to increase. The 3 300km of Rand Water pipeline infrastructure in servitudes and related Studies on wetlands tend to agree that they provide infrastructure become even more prominent as open many water-quality benefits. Wetlands are the areas green belts. These servitudes are vulnerable to the impact that first receive and impede drainage runoff from of storm water, human and animal traffic, making them developed lands. They are also the areas where susceptible to erosion and other negative environmental shallow groundwater seeps into surface waters. Riparian aspects which can potentially damage pipelines. The vegetation traps sediment, removing harmful amounts pipelines have become exposed as a result of soil of nitrates - nitrogen, phosphorus, and pesticides before erosion, resulting in a reduced life span from the normal they can enter streams. For all these reasons, there should 65 years as rust thins the pipes. Pipe bursts in themselves, be a strong effort to maintain or restore wet buffers that can result in huge environmental damage on a large have vegetation cover in areas that are adjacent to scale, costing large amounts to rectify. streams. Environmental Authorisations (EA) are essential for a variety The studies estimate that up to 60% of the wetlands have of projects ranging from the maintenance of existing been damaged due to human impact. South Africa has pipelines to the construction of new, and the demolishing 115 000 wetlands, covering over 4 million hectares of old infrastructure. These projects are audited by and comprising close to 4% of the country’s total surface Environmental Control Officers employed by Rand Water, area. Many of South Africa’s wetlands have been lost with external audits being conducted by independent because of agriculture, timber plantations, mining and Environmental Assessment Practitioners. Compliance urban development. is important to Rand Water, as non-compliance can potentially affect the Organisation negatively in the form Many wetlands in South Africa are likely to be affected of fines, or the withholding of further authorisations, and by the changes in temperature and rainfall brought thereby preventing any further development. about by climate change. Higher water temperatures and extreme events like floods and droughts have During the year under review, Rand Water has been been projected to decrease water quality and increase involved in 66 of these projects. Of the projects, erosion in many of the wetlands. This degradation due to 44 are in the process of obtaining authorisation, droughts is illustrated by the recent continued burning of while 16 projects are being monitored for compliance. the Bodibe wetlands in the North West province. Rand Water has also been directly involved with 10 rehabilitation projects with current authorisation.

35 Rand Water Sustainability Report 2009–2010 Environmental Impact of Operations (continued)

In addition to the 66, an additional 15 other projects During the year under review, the University of South have required Water Use Licenses (WULA) in terms of Africa (UNISA) undertook a study and finalised the National Water Act 36 of 1998, and two projects first phase of identifying all listed Alien Invader Plants required Heritage permits in term of the National at selected Rand Water sites. This information was Heritage Act. These are still in progress. incorporated into site invader removal programs and implemented with emphasis on Category 1 invaders. Rand Water monitors and rehabilitates erosion that occurs over, and adjacent to pipelines. During the At Zwartkopjes 1 000m2 of Category 1 invaders were year under review, investigations by the Rand Water removed, and 22 500m2 of Category 2 invaders were Environmental Management Services Rehabilitation Unit controlled to prevent spreading. A second phase has observed that additional 16 eroded areas that required been implemented to take this programme to the other intervention. This brings the total number of erosion Rand Water sites to be able to further comply with incidents that have been addressed and these still require legislation. Another study currently underway by UNISA, rehabilitation to 11. During the 2009/2010 year, Rand is investigating the various methods of maintaining Water conducted 20 erosion interventions on pipelines veld grass areas on sites that will reduce maintenance and other infrastructure with a total footprint of 28 927m2 costs and ensure reduced erosion whilst maintaining of rehabilitation. biodiversity.

Site Maintenance The Rand Water nursery was also upgraded to accommodate and assist the Rand Water Rehabilitation During the year under review, EMS’s site Teams with the storage and protection of rescued plants maintenance department maintained landscapes to comply with Environmental Management Plans. A total totalling 6 404 504m2. Rand Water’s main sites, of 1 106 plants of nine species were rescued from these i.e: Rietvlei, Zuikerbosch, Central Depot, Vereeniging, sites and are being stored at the nursery until the projects Zwartkopjes as well as Eikenhof, Palmiet and Mapleton require them for rehabilitation. were zoned into various maintenance areas. The zone classification used was standardised across all sites, Personnel employed for education and training according to set criteria such as land use, maintenance frequencies, type of horticultural equipment required and The Water Wise Education Team (16 permanent and land gradient. The various zone classifications include contract staff at 4 bases in Rand Water service area) has amongst others focal areas, embankments, veld grass, made significant progress this financial year through their park lands and sports fields. Water Wise activities and education material. They have attained a record high in terms of their attendance figures The intention of this exercise was to create uniformity (table 11) and the quality of their workshops continues of site maintenance and to ensure that the correct to remain of a high standard (table 12). As the public’s horticultural equipment was allocated and used at the awareness of environmental issues increases, the team identified areas. All the major Rand Water site entrances continues to provide workshops and education material were revamped and upgraded, with Water Wise that addresses current environmental issues that relate to principles used as a design criteria in all the upgrades of water. The team ensures that they are knowledgeable these landscapes. about these issues so that they can continue to educate learners and the general public and assist in increasing The entrance to the Rand Water Head Office received awareness about conserving our most precious natural special attention with the installation of a new water resource, water. The team will continue to score with feature and upgrades to the surrounding indigenous learners and educators and spread the Water Wise landscape. Part of this site upgrade included the message! KE NAKO (WE CAN)! installation of new information boards along walkways.

Rand Water Sustainability Report 2009–2010 36 Table 11: The number of learners and educators that attended workshops, road shows & exhibitions from July 2000 to June 2010

2000/ 2001/ 2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 No. of Workshops, Road 190 250 227 274 293 337 359 408 589 587 Shows & 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

Table 12: The quality of the education service as All training courses are outcomes-based and the content assessed by educators is unit-standardised. This approach ensures alignment with competencies and qualifications as set out by the Standard of Service measured by educators Overall National Qualifications Framework (NQF) and is the through the use of an Evaluation Form Service reason why courses and modules are recognised by the according to financial years: South African Qualifications Authority (SAQA). In fact, July 2003 – June 2004 91.95% this section has been accredited by the Energy Sector July 2004 – June 2005 93.2% Education Training Authority (ESETA) as a proper training July 2005 – June 2006 93.28% centre. The training facility, which can accommodate July 2006 – June 2007 95.16% about 30 trainees, is state-of-the-art, equipped with July 2007 – June 2008 93.57% wireless technology and video conferencing facilities. July 2008 – June 2009 96.07%

July 2009 – June 2010 95.27% In line with the development and supply of a continuous pipeline of skilled scientists, the Water Technology The Water Technology Training unit is preparing for the second intake of graduates who will be contracted into Rand Water’s Training Section Scientific Services Division over two years. The first Rand Water believes that every individual should be graduate development program was initiated in 2009 offered the opportunity to improve themselves through and is preparing a retention program to retain a training, the Water Technology Training section focuses percentage of graduates within the organisation. This on people development. This unit identifies skills gaps program is due to end in March 2011. within Rand Water’s Scientific Services Division. It focuses on those skills which need to be met through technical Research and development training, in order to ensure the continued sustainability of The core objective of the Process Technology Department the Division and organisation is to optimise treatment processes at Rand Water in order to facilitate the production of the best quality This section identifies skills gaps within the division and water at the least cost. This entails the identification focuses on those which need to be met through technical and implementation of the best available technology training in order to ensure the continued sustainability of in combination with the most advantageous treatment the division and organisation at large. Due to its nature, regime. Scientific Services specifically aims to strengthen scientific and technical skills. In 2009/10, Process Technology undertook a number of diverse projects relating to internal process optimisation

37 Rand Water Sustainability Report 2009–2010 Environmental Impact of Operations (continued)

and addressed a range of external technical queries Rand Water’s energy consumption is in the order of pertaining to water treatment and quality. The latter 200 MW and the 16 MW would translate into an reflected the general interest trends in the water sector 8 percent energy efficiency improvement for Rand this past year, which mainly revolved around the topical Water. Should the implementation of these projects be issue of water re-use. This included the feasibility of mine successful, other sites will also be developed. water desalination and the reclamation of grey water. Global warming poses a serious threat to our planet As part of its mission to remain conversant with the best and is caused by the emission of environmentally available technology, the Department evaluated several unfriendly gas such as carbon dioxide. An Eskom coal alternatives relating to conventional water treatment. fired power station emits approximately 0,958 tons of Some of the significant assessments included alternative carbon dioxide to generate one Megawatt-hour (MWh) filter media, products for remediation of existing filter of energy (Source: Eskom’s 2007 Annual Report www. media, biopolymers for both coagulation and disinfection eskom.co.za). Rand Water has an environmental purposes, activated zeolite, portable chlorine generators obligation due to its large carbon footprint resulting from and several disinfectants. Trends in the latter included energy consumption through pumping. The generation both chlorine and non-chlorine based disinfectants, with of hydropower will contribute to the reduction of carbon a marked rise in the promotion of metal based products dioxide emissions as it is a clean energy source. such as stabilised copper and silver solutions. The generation of 16 MW will result in an effective reduction of approximately 16 ton of carbon dioxide Energy used – initiative to save energy or use every hour (11 520 ton/month or 140 160 ton/ alternative renewable energy sources annum). In addition 0,550 ton of coal and 1,35 kl of water is consumed by Eskom per MWh. 16 MW will Rand Water can harness hydraulic energy at various therefore result in an effective reduction of approximately points in its network to generate electricity. This energy is 8,8 ton less coal consumed every hour (77 088 ton/ not used at present. This electricity can either be sold or annum) and 21,6 kl less water consumed every hour can be wheeled through the distribution network to any (189 216 kl/annum). This would be an extremely Rand Water site as a saving. Four sites are earmarked important accolade to add to Rand Water’s other water to start off with for hydropower generation with a total and environmental accolades. capacity in the order of 16 Megawatts (MW).

Rand Water Sustainability Report 2009–2010 38 Environmental Rehabilitation Projects

Waste Treatment

Rand Water has a mandate to contribute to the millennium maintenance, human resources, asset management, development goals of ensuring access to water and budgeting) are outlined in addressing those particular sanitation facilities both of which will ultimately contribute challenges or shortfalls at the plants. Rand Water, as an to the alleviation of poverty. Rand Water also seeks to organ of State is mandated, in terms of Section 80 of address the protection of scarce water resources through: Water Services Act 108 of 1997, to enter into public partnership with municipalities in terms of Municipal • The management, operation and maintenance of System Act 32 of 2000 to address issues of services wastewater treatment plants to improve raw water delivery. quality and its operational cost To date, the key projects undertaken to address issues on • Development, testing and deployment of cost-effective water matters and particularly the treatment of wastewater wastewater technologies. and Acid Mine Drainage (AMD) are as follows:

Rand Water’s approach with respect to the management Emfuleni Local Municipality of waste water is therefore to conduct assessments The water quality in the Vaal River (which is one of on the status of the wastewater treatment works on Rand Water’s abstraction points) had been deteriorating its area of supply and beyond. Detailed reports of for a number of years due to the discharge of effluent. condition assessments of the wastewater treatment To address this issue, Rand Water has taken the works are submitted to the Water Services Authorities initiative to enter into 5 year partnership with Emfuleni (Municipalities) and recommendations (such as operation, Local Municipality to assist in addressing some of the

Rietspruit Waste Water Treatment Works

39 Rand Water Sustainability Report 2009–2010 Environmental Rehabilitation Projects (continued)

Tweefontein Waste Water Treatment Works

challenges that they were faced with in respect of their Thembisile Hani Local Municipality wastewater treatment works. In order to meet the effluent Lack of resources, shortage of skills and an ageing discharge standards as set by Department of Water infrastructure have all been identified as leading Affairs and Environment, Rand Water is assisting the contributors to the inability of many local municipalities municipality with operations, maintenance and capacity to deliver services and improve on the sanitation. building at three wastewater treatment works and 52 The result has been an inability by municipalities to pump stations. Furthermore, bio-monitoring programme operate their sewage treatment facilities to meet Green and Industrial Effluent Monitoring Programme (IEMP) Drop Certification. Rand Water also currently assisting were implemented where industries are categorised and Thembisile Hani Local Municipality with operation and billed appropriately for the discharge of effluent into the maintenance of its wastewater treatment plant to meet municipal sewer networks. legal requirements.

Refurbished Brugspruit AMD Plant

Rand Water Sustainability Report 2009–2010 40 Brugspruit Pollution Control Plant The water pollution as a consequence of the inadequate Brugspruit Pollution Control Plant is 10 Ml/day Acid functioning of the Works, has necessitated that Rand Mine Drainage (AMD) plant situated in Witbank that Water expedites the project by treating it as a priority treats acid mine emanating from old mines in Ferrobank. with regards to the following: The continuous pollution caused by the plant and the malfunctioning collection systems resulted in DWAE • The un-blocking and cleaning of the two blocked appointing Rand Water to refurbish and commission the collector wastes system that should have been Brugspruit Water Pollution Control Plant in September bringing effluent to the plant 2008. The work, which is still in progress, includes replacement of all electrical and mechanical equipment, • The temporary neutralisation of acid mine water at civil structures, and bringing the plant to full operation. the holding ponds, while the reinstatement of the plant was being undertaken

Table 13: Below is the list of Rand Water Bulk Sanitation projects undertaken during the 2009/2010 financial year:

No Year Description Of Work Contract Value Duration Of The Project

1 2009 Refurbishment of Brugspruit Acid Mine Drainage R11 million 2 Years Plant

2 2009 Refurbishment of Tweefontein Wastewater R1.0 million 1 Year Treatment Works

3 2009 Operation & Maintenance of Tweefontein R6.0 million 5 Years Wastewater Treatment Works

4 2009 Operation & Maintenance of Emfuleni Wastewater R72 million 5 Years Treatment Works

5 2009 Design Construction of the Rietspruit Clarifer, R8.7 million 1 Year Contact Chamber & Drying beds

6 2009 Refurbishment of Moqhaka Wastewater Treatment R5.1 million 1 Year Works

7 2009 Refurbishment of Emalahleni Pump stations R5.7 million 1 Year 8 2009 Operation & Maintenance of Victor Khanye R318 000 3 Months Wastewater Treatment Works

9 2009 Sludge Handling at Dipaleseng Local Municipality R290 000 1 Month

41 Rand Water Sustainability Report 2009–2010 Environmental Rehabilitation Projects (continued)

Emissions, Effluent and Waste Effluent and Waste

The discharge of untreated waste and substandard Emissions effluent into municipal sewer systems has detrimental impact on the physical and the biological treatment of Most of the sewage treatment works in South Africa do certain chemicals in the wastewater treatment works. This not have emission control mechanisms. Gases such as eventually results in discharge of substandard effluent into methane, carbon dioxide and Hydrogen sulphide are the rivers and exasperates the aquatic life in the receiving emitted to the atmosphere from anaerobic digestion of waters. the wastewater treatment works and this has an adverse impact on environment and contributes towards the Poorly pre-treated industrial effluent and pig-sty wastes creation of greenhouse gases and acid rain. Collection discharged into the sewage treatment works contain of methane gas can be beneficial not only from the some protozoa such as cryptosporidium that resist perspective of avoidance of damage to the environment disinfection and cannot be effectively treated or removed but can also be used in the co-generation of electricity by conventional wastewater treatment processes. and reduction of operation costs at the wastewater treatment plants. Rand Water always ensures that where its assist required in terms of above, proper Industrial Effluent Monitoring While Rand Water does not own wastewater treatment Programme is conducted and Green Drop Certification works itself, it has, on the recent projects undertaken, is adhered to all the times to prevent pollution to the urged municipalities to refurbish sludge handling facilities environment. in order to collect methane gas for the generation of electricity or, where the municipality is unable to use it in this manner, to burn it before being releasing into the atmosphere.

Rand Water Sustainability Report 2009–2010 42 Information Communication Technology

During the year under review, Rand Water achieved Information Technology Applications Disaster a 98.8-percent availability of its core Information Recovery Communication Technology infrastructure; and further An applications disaster recovery plan and site exist improvements are already in place to improve this to for all business critical non-industrial systems. The 99.9-percent within the next two years. disaster recovery plan and site were compiled and established based on agreed business requirements and The server virtualisation and consolidation is already priorities. The solution therefore satisfies the business in progress as part of a larger Green Information recovery requirements and is cost effective. Backups are Technology (IT) strategy for the organisation. Rand performed on a daily basis and are stored off site. The Water’s current IT governance framework will be recovery time of the individual systems range from one replaced during the next financial year with a King day to one week. The maximum age of the recovered III compliant IT governance framework that will be and restored data in the event of a disaster will be twenty integrated into the corporate governance framework. four hours. The disaster recovery plan is tested at least twice a year and the tests include both IT and system Any risk to Rand Water due to IT failure and information owner involvement and approval. management was significantly reduced over the last two years. The position of the IT related risk on Rand Information Technology Infrastructure Water’s Residual Risk Register has moved from 8 to 16. This was principally due to improvements and additional A wide area network with adequate redundancy has mitigation measures implemented during the financial been implemented between the major Rand Water year, including, but not limited to, the implementation sites and it ensures an availability of 98-percent for of adequate network redundancy on the wide area data, voice and telemetry network traffic. A server and network using wireless technology; the improvement of storage architecture and standard that contain adequate the integration between systems based on a middleware redundancy built into the server and storage devices to mechanism; obtaining ISO 9001 certification for the ensure an availability of 98-percent. All non-industrial IT function; and an IT security review conducted by the systems were centralised into a corporate data centre National Intelligence Agency. to improve the controls around the systems and related infrastructure components. Further improvements will be selected and implemented during the next four years to improve the availability to 99.9-percent.

43 Rand Water Sustainability Report 2009–2010 Strategic Human Capital

Rand Water’s focus has been and continues to be on • Re-engineering providing opportunities to both existing employees and • Re-organisation of functions the communities which it serves. A key focus of the Organisation has been the creation of initiatives that Some of the initiatives that have been successfully build capacity and address the needs of the individuals implemented are as follows: concerned, the community as well as addressing Rand Water’s skills requirements into the future. This culminated Legislated Training in the establishment of the Organisational Development Legislation requires that Rand Water ensure that training and Design (ODD) department which is housed within is conducted for employees undertaking specific the Strategic Human Capital Portfolio. The rationale for activities which include performing work or operating the introduction of this component was to enable the equipment for business operations. It is for this reason implementation of the new Strategy of Rand Water. that Rand Water has a service of training programmes that responded to compliance with relevant legislation The following are some of the key objectives that ODD and associated business needs. Legislated training was has to enable the business with: prioritised and targets defined as per business needs. • Transformation and Change Management The table below indicates completed legislated training • Organisation Design per occupational category for the period under review. • Culture Change • Driving Business Efficiencies and Effectiveness Targeted Courses • SHERQ To enable the achievement of these key business • Lifting equipment objectives, ODD has identified strategic initiatives • Protective Services which will be delivered through a structured program • ISO related and in order of priority to the business through an • Incident investigation integrated delivery model in partnership with the Talent • Procedure and observation Management department. • Environmental awareness • National Key Point For this purpose, the Program Management Office was • Fire Fighting established to create capacity in delivering on these • First Aid initiatives through the following work streams: • High Voltage Switching • Business Case for Change (Business Modelling) • Access to Motorised Areas • Leadership Modelling • Confined Spaces • Transformation and Change

Table 14: 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 Sustainability Report 2009–2010 44 Target Audience to assist and enable managers in the Operations and • Operators and Artisans other technical areas to increase their intake of people • Protective Services Personnel with disabilities upon completion of the programme with • Supervisors the intention of re-absorbing them into targeted positions. • Managers The duration of the programme was for 12 months and the envisaged completion date is April 2011. The SETA Funded Learning Projects table below indicates the current status on the Technical Disability Learnership for the period under review. Rand Water created a culture of continuous personal development among employees with potential. • Management Advancement Programme (MAP) Capacity- Building processes equipped individuals The Management Advancement Programme is a part-time with the understanding, skills, access to information, course designed to assist managers whose experience knowledge and training to enable them to perform and prime activities have been in a functional area. The effectively. Learning projects were aligned to institutional objective was to give managers broad exposure to the and legal framework development making legal and fundamental nature and process of management and regulatory changes to enable organisations and agencies human behaviour within organisations. A total of 27 at all levels in the sector, to enhance their capacities. managers graduated successfully of which 26 were from Rand Water fully complied, and is aligned with the previously disadvantaged groups and 17 of them were Energy Sector Education and Training Authority (ESETA) women. requirements, which enabled delivery of the National Skills Development Strategy through the following • Performance Management System (PMS) initiatives: The PMS is an educational and change management process that enables the alignment of strategic objectives • ABET to the organisation, teams and individuals as a response Rand Water embarked on providing learning to enhancing organisational performance. It is aimed opportunities to internal employees and external at measuring performance at different levels to ensure community through Sector Education and Training consistency in approach. The target audience was Authority (SETA) funded programmes in order to support managers in the M – Q bands. A total of 590 managers the National Skills Development Strategy. Rand Water were trained on the modules focusing on planning, has up-skilled and re-skilled on numeracy and literacy contracting, reviewing and rewarding performance. The skills to enable effective communication in the workplace. training programme was a success as it was consistently evaluated and has received an average rating of 8 (on a • Learnerships rating scale of 1-10). During the year under review, Rand Water embarked on the Technical Disability Learnership programme in Social Economic Performance the Electrical field at NQF Level 2 and targeted 50 candidates (25 external community members and 25 Transformation Milestones for Rand Water internal employees). The purpose of this programme was Rand Water views Employment Equity as a strategic

Table 15: 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

45 Rand Water Sustainability Report 2009–2010 Strategic Human Capital (continued)

priority, and is committed to ensuring implementation To ensure that employee’s value diversity in Rand Water a of the Employment Equity Act (‘the Act’). Rand Water Diversity Management pilot programme was introduced has ensured that Employment Equity is aligned to the to test what diversity issues people were facing. A “train organisation’s strategic objectives and is integrally the trainer” programme was implemented as part of the linked to the Talent Management and Capacity Building phase 2 of Diversity Management. strategy. In order to ensure that maximum participation is derived Rand Water’s Employment Equity Strategy is designed in from all Rand Water Employees, a consultation strategy consultation with all relevant stakeholders, including the has been developed as well as a Transformation Forum representative trade unions. Although it is anticipated that document. This strategy ensures that all representatives our Employment Equity Strategy will place emphasis on within the Employment Equity Forum are visible and are advancing designated group employees, Rand Water known to all employees within the organisation. will strive to ensure that other deserving employees are not unfairly denied access to growth and advancement Composition (%) of Blacks & Women Compared to opportunities on a progressive and structured career the Gauteng Average path. The approach to Employment Equity is governed According to Statistics South Africa, the percentage of by principles of equity, affirmative action and equal Blacks (ACI) in Gauteng is 74 percent. All males (ACI opportunity and fairness. and white) comprise of 51 percent and all females (ACI and white) comprise of 49 percent of the population. Designated group status have been used as a tie-breaker Rand Water has always set its targets in line with in recruitment process, to ensure that where two suitably Gauteng Demographics, which is its largest area of qualified job candidates are available, Rand Water supply. With its new growth strategy, the organisation may prefer to appoint the employee from a designated is compelled to relook at this, and use the national group, if that group is under-represented in that position demographic as its benchmark. Table 18 below or occupational level. benchmarks the Organisation against the demographics of Gauteng. Thus far, Rand Water has been successful in ensuring that, in general, it strives to achieve the Employment Table 16: Composition of Blacks and Women in Rand Equity targets as outlined in the Employment Equity Water at M-Q Management (June 2010) Plan. Whilst there are some challenges in achieving these targets in areas like Engineering and Scientific Hay Total Level Aci Females Services, efforts have been made by way of introducing Band Staff Learnerships (such as the Technical Disability Learnership). Executive Q 8 8 4 Management Senior P 47 34 13 Strides have been made in the employment of female Management employees, in areas that were previously male Middle O 147 100 43 dominated. The organisation has also managed to report Management Junior successfully to the Department of Labour. N 211 156 86 Management Supervisory M 345 250 144

Rand Water Sustainability Report 2009–2010 46 Table 17: 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

Table 18: Bursaries

Rand Water is committed to the advancement of Males Rand Water % Gauteng individuals, whether they are within the organisation or African 1743 58.00% 73.80% they reside within the community. To this end, bursaries Coloured 47 1.56% 3.8% Indian 51 1.69% 2.5% are provided to promising students who wish to pursue White 308 10.24% 19.90% studies that are relevant to Rand Water’s operational TOTAL 2149 requirements. In the year under review, Rand Water provided 251 bursaries: Females Rand Water % Gauteng African 651 21.66% 36% • 84 for tertiary studies to children of staff. The Coloured 34 1.13% 1.98% availability of these bursaries was viewed as a Indian 40 1.33% 1.24% benefit of employment of the parent. White 131 4.35% 10.24% TOTAL 856 • 14 Open Bursaries to external students

Composition of People with Disabilities • 153 Staff Study Assistance (Study Grant) Rand Water has made steady progress in improving its employment of People with Disabilities (PWDs). Recruitment The figures below reflect a decrease from 114 to 111 Rand Water made 307 new appointments and PWDs) of the total number staff employed. However remains committed to appointing employees in line with this will increase as Rand Water is currently running Employment Equity (EE) targets by implementing a more a Technical Disability Learnership for people with rigorous process that includes targeting EE candidates for disabilities, which may result in permanent appointment various positions both in the core and support functions of some of these learners, as they will be qualified in our of the business. The strategic decision to ensure that the technical operational areas. organisation met the Employment Equity targets was to encourage diversity in the workplace. During the period Table 19: under review the following categories were appointed in the organisation: Categories June 2010 85% Africans Actual 111 • All PWD 4% Indians Percentage 3.69% • • 3% Coloureds

47 Rand Water Sustainability Report 2009–2010 Strategic Human Capital (continued)

Employee Relations Ziyagezana Excellence Awards

The Labour Relations climate remained stable with no Rand Water celebrated its seventh employee awards significant threat of turbulence during the year under event in November 2009. The awards programme review. Rand Water’s workforce is highly unionised. In endeavours to engender a feeling of appreciation 2008/9, 86.5-percent of the organisation’s employees and recognition to employees for their exceptional belonged to a trade union. There was a slight increase contributions to their areas of work and the organisation. in the level of unionisation during the year under review to 87.6 percent of employees. Rand Water has two Prevalence of HIV/AIDS recognised trade unions, namely the South African South Africa has the highest prevalence of HIV/ AIDS Municipal Workers Union (SAMWU) and the United throughout the world with almost 6 million people living Association of South Africa (UASA). with HIV and a low percentage of citizens who know their status. Rand Water as a company forms part of this Participation, Co-operation and Partnership society and it is obviously impacted by this pandemic. Since its inception in 1995, Rand Water’s Participation, As such, Rand Water established a comprehensive Co-operation and Partnership (PCP) structures and programme in 2001 in order to address this issue. processes have continued to foster a culture of trust, Over the years, a number of interventions have been creative solution-thinking and transparency, underpinned implemented under the programme and some of these by the organisational values of Caring, Equity, interventions are highlighted below: Excellence, Integrity and Spirit of Partnership. • Knowledge Attitude & Practices (KAP) Surveys: to Rand Water recognises that these are important elements determine the level of knowledge of HIV amongst needed to yield an effective collective relationship between employees, their attitudes and practices as pertaining Management and the recognised trade unions towards to this. consensus-seeking on policy matters that affect employees. • Annual Voluntary Counselling and Testing (VCT): During the year under review, policies that have to determine the impact on the business and for been jointly re-developed and endorsed through the employees to know their status. participative structures include the Code of Ethics, Fraud and Investigation policies and the Constitution of the • Actuarial Analysis Study: conducted by Metropolitan Stakeholders’ Forum. Life Company in 2005, with the objective of:

The constitution of the Stakeholders’ Forum defines the • Determining HIV/AIDS prevalence among Rand PCP intent and system and has been revised to include Water employees. the list of matters for consultation and information-sharing, to ensure common understanding and an efficient and • Projecting the current prevalence and its potential stream-lined process. impact on employee benefits such as Medical aid, pensions, leave, recruitment, etc. During March 2010, trade union members and Rand Water’s Employee Relations management visited various • Evaluating the impact of the VCT programme in large organised companies in Germany to benchmark alleviating the problem and initiating behaviour against their employee relations model. It is evident that change. the German economy is further enriched by its adoption of a participative, co-operative and non-adversarial • Determining whether the interventions were sufficient labour relations system. The knowledge learnt will or needed review as well as to assist Rand Water enhance Rand Water’s participative structures. plan better for the future.

Rand Water Sustainability Report 2009–2010 48 Current HIV Prevalence in Rand Water

Table 20: Based on the 2009 VCT results

HIV Prevalence in Rand Water Positive Sites Male Female Total Male Female % Male % Female Positive Positive Vereeniging 97 51 148 4 2 4.12% 3.92% Central Depot 118 40 158 10 2 8.47% 5.00% Zuikerbosch 136 31 167 13 0 9.56% 0.00% Zwartkopjes 71 25 96 5 5 7.04% 20.00% Nursery 92 9 101 17 0 18.48% 0.00% Rietvlei 72 68 140 6 1 8.33% 1.47% Vereeniging (AS) 81 43 124 1 3 1.23% 6.98% Totals 667 267 934 56 13 8.40% 4.87% % Males Positive of Male Tested 8% % Females Positive of 5% Female Tested Aggregate employees who 7.39% tested positive

Comparisons per gender on HIV prevalence

20.00% 20.00% 18.48% 18.00% 16.00% 14.00% 12.00%

10.00% 9.56% 8.47% 8.33% 8.40%

8.00% 7.04% 6.98%

6.00% 5.00% 4.87% 4.12% 4.00% 3.92%

2.00% 1.23% 1.47% 0.00% 0.00% 0.00% % Male Positive % Female Positive Gender

VEREENIGING CENTRAL DEPOT ZUIKERBOSCH ZWARTKOPJES NURSERY RIETVLEI VEREENIGING (AS) TOTALS

Actuarial Analysis Study

The study that was undertaken provided the Organisation From the demographic actuarial assessment of the impact with an insight on the potential impact that the prevalence of HIV/AIDS, it was concluded that the HIV prevalence of HIV/ AIDS could have on the entity, not only from the rate amongst Rand Water employees was estimated impact that could arise from the loss of scarce resources to be 13.4% in 2005 based on the death claims data in the form of skilled labour but also the added cost of gathered from the various Rand Water Group Life conducting business arising from increased medical and Assurance schemes as well as the VCT statistics from the administration expenses. 2001 to 2004 VCT campaigns.

49 Rand Water Sustainability Report 2009–2010 Strategic Human Capital (continued)

The Wellness Approach: Level 2 – Individual Focus In summary, it can be said that Rand Water had already made substantial net savings as a result of introducing an HIV/Aids treatment programme. Savings at the time were estimated at R28.7 million for 2005 with a further Transformation and Change Journey R4.3 million that could be obtained if more employees joined the programme. Rand Water could save up to Employee External R31.2 million in total, after allowing for ART, if the uptake Health Enabling Wellness Sociao- Management Environment Programmes Political rate on its disease management programmes increases. System and Service issues The annual saving as a result of treatment will, however, gradually decrease to around R19.3 million (net of the cost of ART) by 2015 due to increasing AIDS morbidity.

Culture, Leadership, Physical Environment, Employee Benefits

Employee Wellness Programme

The Rand Water HIV Strategy is aligned to the broader • Priority Area 3: Research, monitoring and integrated Wellness Model which is the foundation of surveillance. This will be achieved through the all wellness programmes and interventions implemented development and implementation of a monitoring within the organisation. This strategy is also aligned and evaluation framework for process and outcome to the National Strategic Plan (NSP) 2007 – 2011 indicators on HIV/AIDS pertaining to all the priority areas on intervention, namely:- • Priority Area 4: Human rights, access to justice and law reform. Ensuring knowledge of and adherence to • Priority Area 1: Prevention: 50% reduction in HIV the legal and policy environment. incidence rate by 2011 The slogan of our strategy reads • Priority Area 2: Treatment, care and support. The “TRIPLE ZERO – LET’S DO IT”: target is to provide an appropriate package of • Zero new infections treatment, care and support services to 80% of HIV • Zero Aids deaths positive adults and children as well as their families • Zero mother to child transmission of the virus by 2011 in order to reduce morbidity and mortality as well as other impacts of HIV and AIDS.

Employee Wellness Management System

Work life balance, Job satisfaction, Flexible working conditions, Managing employee leave, Enabling Environment RW Policies, Sabbaticals, Creches, Burnout, Performance Excellence, Employee benefits

Risk assessment, HMS model, Health care plan, Assessment and reporting, Cost benefit Health Management System advantage, Clinics, Primary health care, In-house referrals, Preventative care, Case management, Disease management, Information system

Employee Wellness Programmes Absenteeism management, Increased morale, Supervisor support, Incident services, Toll- and Services free services, In-house professional as organisational advisors, ROI, Visibility, Accessibility, Tools and technologies, Budget, External supplier management solution

External Socio-Political Climate Economic factors beyond RW control but has direct impact to employee

Rand Water Sustainability Report 2009–2010 50 Our HIV/AIDS campaigns are run under the “It’s My National (HCT) HIV Counselling & Testing Lifestyle” slogan which puts emphasis on individual On 25 April 2010 the Minister of Health launched the employees taking responsibility for their health and National HCT Campaign that will run until June 2011 behaviour and making wise life style choices. and it aims to mobilize 15 million South Africans to know their status. This strategy tackles HIV/Aids as only one of a number of other life threatening diseases resulting from life style Rand Water is currently embarking on VCT in support choices and does not single out those infected with HIV/ of the Government’s National HCT Campaign as well AIDS, thereby de-stigmatising the disease. It is for this as an integral and complementary element of their reason that VCT (Voluntary Counselling and Testing) is comprehensive wellness and HIV and AIDS management done along with other wellness screening tests. programmes/systems.

Mitigating Programmes Objectives Interventions: The objectives of the VCT campaign are to: • Annual VCT • Mobilise all employees to know their status. • Industrial theatres • Support people with key prevention messaging in order to take proactive steps to a healthy lifestyle, • Poster campaigns, brochures, fliers (knowledge irrespective of HIV status. packs)

• Reduce the number of new HIV infections by 50% • Information sessions • Reduce the impact of HIV and AIDS on individuals, • Training of Wellness Champs families, communities and society by expanding access to appropriate treatment, care and support. • Lifestyle management

In order to encourage participation by all, Rand Water’s • Addressing risky behaviour talks, e.g. “It’s My leadership will be at the forefront of the campaign with Lifestyle” campaign photographs taken and placed in strategic areas as a showing of the stand that is being taken in the fight • Information resource list for employees against HIV and AIDS.

• Educating employees on lifestyle choices Targeted Audience

• Wellness programme as part of the induction All Rand Water employees (and contractors) are the programme primary beneficiaries of this campaign and secondary beneficiaries are families that live at Rand Water • Inclusion of all contract workers on VCT programmes premises.

• Partnership with occupational health & primary health Communication Tools creating a seamless process in service delivery to • Fact sheets – easy to read fact sheets with essential employees information on the benefits of testing, finding out your risk of contracting HIV/Aids and the action necessary to reduce the risk.

51 Rand Water Sustainability Report 2009–2010 Strategic Human Capital (continued)

• Encourage employees to wear red ribbons and HIV/ Going Forward AIDS T-Shirts on days testing is conducted at their • A revised disease management plan which is respective sites to increase awareness. inclusive of all employees irrespective of CD4 count

• Pamphlets and posters on tips for healthy living; • Access of more medical aid members to quality care resources for getting information, treatment options and support including access to disease management and steps in developing a health plan. at an early stage.

• Campaign related by-line in all corporate news • Develop and run a lifelong treatment literacy messages for the duration of the campaign. programme.

• A list of questions to ask our doctor and a quiz to • 2 minute message on HIV/AIDS for use during green establish your HIV/AIDS risk. areas and departmental meetings.

• Monthly articles in the Weekly News with site • Payslips messaging. updates and pictures of employees getting tested.

• Partner with Water Wise on school holiday • Weekly updates of numbers of testing on plasma programme to access children for training on life style screens. choice.

• A poster of the Chief Executive Officer and Portfolio • Educating employees on how to talk to their children Integrating Committee participating in the VCT about HIV, sex, drugs and rape.

• Intranet input on Rand Water in support of • Wellness management as business case needs to Government’s campaign. be built into the leadership training programmes designed for Rand Water Timeline

The VCT Campaign will commence from October until April 2011.

Rand Water Sustainability Report 2009–2010 52 Corporate Social Responsibility

In recognition of the impact that it has on the wider • Basic Sanitation (Construction of Sanitation facilities community, Rand Water established as a separate with emphasis on Urine Diversion System (UDS) & division in the organisation a Corporate Social Ventilated Improved Pit (VIP’s) toilets structures Responsibility (CSR) Division whose vision and strategy is “To position Rand Water as a socially responsible • Water Conservation & Environmental Management citizen through the implementation of Corporate Social (Invasive Plant Removal, Leaks Repairs and Donga Investment (CSI) programmes that have a high socio- Rehabilitation); economic impact” • Servitude & Encroachment Management; The CSR objectives that the Organisation espouses are as follows: • Water Sector Support and Capacity Building

• To ensure financial viability and excellence in cost • HIV/AIDS management; • Educational support for children with special needs • To improve customer and stakeholder satisfaction; • Women and Youth Empowerment • To ensure integrated delivery and compliance to internal requirements; • People with disabilities

• To build a high performance culture through effective • Health talent management; • Care for the elderly • To implement Corporate Social Responsibility programmes that have a high socio-economic impact • Safety and Security

The CSR Mandate is therefore carried out by CSI Committee undertaking programmes that address the following A CSI Committee was established that oversees all areas: the CSI activities of the Organisation. The Committee • Partnership is made up of members of staff from across the • Stakeholder Relationship Organisation whose roles are aligned to undertaken by • Capacity Building the division. The activities undertaken include but are not • Contract Management limited to the following: • Project Management • Review proposals for various forms of assistance • Implementation received from deserving organisations; • Community Development • Approve and decline proposal where necessary • Education • Conduct project’s site visits; • Customer Management • Management of CSI unit performance; • Monitor and Evaluate performance of programmes Key Focus Areas funded by the unit Programmes will be implemented for water and non-water related programmes and will focus on the Project Advisory Committees following areas: The Municipal Service Act of 2000, states that where • Water Infrastructure (Construction of Pipelines & projects are implemented at Community level, the Reservoirs)

53 Rand Water Sustainability Report 2009–2010 Corporate Social Responsibility (continued)

implementing organisation must ensure that there is Programme beneficiaries full community participation. All projects where Labour The beneficiaries of these programmes and initiatives Intensive methods are applied fully comply with this can be classified as follows: requirement.

• Unemployed communities (male, female, youth and Projects have Project Advisory Committees (PAC) in disabled); place, a generic terms of reference is the guiding document for this structure. Monthly progress meetings • Communities with a high level of illiteracy; are held at PAC level where project progress is discussed. The PAC also assists with performance • Poor, underserviced communities; monitoring, appointment of local service providers, staff recruitment etc. This ensures transparency and community • Vulnerable groups including, the aged, people with buy-in and support. Regular Project site visits are disabilities, children particularly, orphans; undertaken to ensure that agreed targets are achieved and increase management visibility. • Women Empowerment Organisations

Programme Performance Key Challenges The programmes that the Organisation undertakes The areas that are targeted for benefiting from the are aimed at contributing positively to the overall programmes are generally populated by communities development of South Africa. In addition to this overall that are economically and socially deprived. Lack of objective, the programmes’ other objectives include: access to basic services and resources make project implementation in these communities challenging. Some • Contribute to Government achieving Millennium of the challenges that the Organisation faces include: Development Goals (MDG) by 2014;

• Sustainable and increased funding to reach more • Making the Rand Water infrastructure accessible for communities; routine maintenance and also reducing risk of Rand Water facing lawsuits; • Lack of local skills; • Fostering ecological restoration and water • Sustainability of Projects; conservation, through clearing of Alien Plants in the Rand Water Catchment Area; • HIV/AIDS and its impact on the labour employed on the projects; • Contributing to the reduction of unemployment; • CSR initiatives not adequately profiled in relevant • Assisting Government departments to fast track publications; service delivery;

• Increasing pressure to fast track service delivery

Rand Water Sustainability Report 2009–2010 54 Table 21: Projects’ Performance Indicators

Perspective Strategic Objectives Strategic activities/focus Projects Key Performance Indicators Achieved Environmental To promote and implement • To conserve water • Alien plant removal • Created 149 Job 90 (60%) being Social and CSI initiative to ensure through: • Leaks Repair female Economic enhancement of water • eradication of alien • Community Education • Cleared 931 hectares; security and conservation vegetation in the • Provided accredited & informal training catchment areas to workers • retrofitting and repairing • Retrofitted 505 houses; of household leaking • Exposed 3006 communities to water taps and pipes purification process • Community water wise • Total budget R 5.5m awareness creation

Environmental To promote and implement Contribute towards • Basic Household • Created 130 jobs 58 (48%) being Social and CSI initiative that have high Millennium Development sanitation female Economic socio-economic impact Goals so of poverty • Alien plant removal • Created Health & Hygiene awareness reduction by maximizing • Water for growth to 2231 households social benefits through: • Food gardens • Provided accredited & informal training • improved water supply programme to workers (e.g. Project & Administration and sanitation facilities • Encroachment Management) • job opportunities • Total budget R17.5m • skills development • women empowerment

Environmental Proactive and reactive • Installation of beacon • Encroachment • Created 460 jobs 278 (59%) being Social and management of Rand to mark Rand Water female Stakeholder Water servitude and pipeline • Installed 438 beacons; to mitigate risks to • Build 292 sign walls pipeline damages • Provide informal training to builders as well as financial implication in cases of encroachers death/ property damages loss of life resulting from burst pipe

Financial Contribute towards Rand • Increase Rand Water • All Cost recovery • Total budget allocation to all social, Water revenue stream spending on CSI projects environmental programmes for 2009-10 and prudent financial through sourcing of fiscal R 28.0m sustainability by generating external funding and income from CSI implementation of community projects on cost recovery basis

Social To promote sustainable • Provide assistance in the • CSI (non water) projects Various interventions in line with the focus stakeholder management form of funding to needy areas to the value of R2.6m allocated as through partnerships, organisations and non- follows: collaborative initiative and profit organisation in the • HIV/AIDS = R550,000 corporate giving Rand Water areas of • Special schools support = R331,000 supply on various social • Women Empowerment = R361,000 programs including • People with Disabilities = R278,000 HIV/AIDS, home based • Health = R206,000 care, youth and women • Youth Empowerment = R416,000 empowerment • Care for the elderly=R277,000 • Safety & Security = R277,000

55 Rand Water Sustainability Report 2009–2010 Corporate Social Responsibility (continued)

By generally adopting labour intensive implementation The CSR division will continue to undertake projects methods, CSR division ensures that almost all the projects that are focused on the removal of alien vegetation and contribute to both the social and economic development where possible, external funding for the projects will also of the targeted communities. be sourced. The following projects have been identified and are planned for the next three financial years: Targets set for each project aim to address issues such as: Table 23: • Gender equity • Youth and Female empowerment Projects 2010 2011 2012 • Local Supplier development – 2011 – 2012 – 2013 Budget Budget Budget Local capacity building • Elandsfontein Alien Plants Yes Yes Yes • Development of people with disabilities Removal • Community participation Mogale City Alien Plants Yes Yes Yes • Local Social Economic Development Removal Winterveld Sanitation Yes Yes Yes Ward 24 Stakeholder Relationship Management Winterveld Sanitation Yes Yes Yes The Organisation also works hand-in-hand with other Ward 9 stakeholders who make significant contributions to the Water Sector Monitoring Yes No No Water for Growth & activities that are undertaken. In the 2009-10 financial Yes No No Development year, the following projects were undertaken that were Water services Regulation Yes No No funded by such stakeholders: Encroachment (Servitude Yes Yes Yes Management) Table 22: Kestel Alien Plants Removal Yes Yes Yes Hammanskraal Sanitation No Yes Yes Project Funder Tshwane Leaks Phase 4 No Yes Yes

1. Elandsfontein Alien Gauteng Department Non-Water CSI: HIV/AIDS Yes Yes Yes Plants Removal of Agriculture and Rural Women & Youth Yes Yes Yes Development Empowerment 2. Mogale City Alien Gauteng Department People with disabilities Yes Yes Yes Plants Removal of Agriculture and Rural Children & the Elderly Yes Yes Yes Development Safety & Security Yes Yes Yes 3. Winterveldt Sanitation City of Tshwane – ward 24

4. Water Sector Department of Water Affairs Monitoring and Environment 5. Strategic financial Department of Water Affairs Support and Environment 6. Water for Growth & Department of Water Affairs development and Environment 7. Water services Department of Water Affairs regulation and Environment 8. Encroachment Rand Water

9. Kestell Alien Plant Rand Water Removal 10. Winterveldt Sanitation – Rand Water Ward 9

Rand Water Sustainability Report 2009–2010 56 Rand Water’s Contribution to Broad-Based Black Economic Empowerment (B-BBEE)

South Africa’s Policy of Black Economic Empowerment construction and engineering sectors. In 2009/2010 (BEE) is not simply a moral initiative to redress the wrongs out of Rand Water’s top 100 contractors and suppliers, of the past. It is a pragmatic attempt to ensure that the 85 contractors and suppliers were black economic proceeds from the Economic Growth are equitably empowered companies. redistributed. Enterprise Development Our country requires an economy that can meet the The promotion of entrepreneurship and Small, Medium needs of all our economic citizens - our people and their and Micro Enterprises remains an important priority of enterprises – in a sustainable manner. This will only be Rand Water. Rand Water is committed to ensuring that possible if our economy builds on the full potential of all small businesses progressively increase their contribution persons and communities across the length and breadth to growth and performance of the South African of this country. economy in critical areas such as job creation, equity and access to markets. Rand Water realises that it has a far greater responsibility than just pursuing the BEE obligations. What is required It is the responsibility of Rand Water to make sure to succeed is a true understanding of the BEE objectives – that access for all new entrants in the SMME sector is its significance for the country’s future economic success, facilitated through the provision of adequate support in and the challenges it poses for many sectors of society, order to ensure that SMME’s survive the harsh introduction especially business entrepreneurs. to the stiff competition by big business in the mainstream economy. The current four contractors implementing Rand Water continues to make progress with B-BBEE the Kestell project are cases in point. These individual and, in the year under review, met and exceeded the contractors were originally working on the project as site targets set in respect of orders placed with BEE suppliers. office staff members before being assisted to form their own individual companies. Technical and basic business Preferential Procurement skills training were provided and were also assisted To contribute to the success of BEE in South Africa, to comply with labour and safety related acts. The Rand Water set the target of spending 75 percent of performance of these contractors is enhanced through its procurement from BEE enterprises in 2009/2010 weekly site visits thus ensuring that work deficiencies are Financial year, with a stretch to 80 percent. Rand Water identified and addressed on time. ensures meaningful participation of black people in all its projects and in this regard, it exceed its targets by The challenges Rand Water seeks to address through achieving a BEE spent of R4 847 434 659.02 which Enterprise Development include: constitutes 81.12 percent. High failure rate amongst black-owned start-ups due to Rand Water fosters the achievement of substantial lack of access to finance and other business support – change in racial and gender composition through encouraging the traditional companies to form The solutions to this challenge amongst others are: joint ventures with entities that are run by previously Investment, Loans, Grants, Guarantees, Provision of seed disadvantaged individuals. capital, Access to credit, interest free loans, less stringent collateral requirements and other commercial/financial Rand Water contributes to increasing the number of conditions, time spent on training and mentoring of black quality black firms providing services and products to the entrepreneurs.

57 Rand Water Sustainability Report 2009–2010 Job-creation cannot be attained without the growth of who are also supported by means of ensuring: the small business sector – • early payments, • supplier guidance forums and; Growth with respect to job creation will predominantly • facilitation of cession agreements. come from the small business sector. This will only be made possible if small businesses are assisted to grow, Through the above Enterprise Development initiatives develop and graduate from micro and survivalist entities Rand Water aims to achieve the following: to become sustainable, job-creating enterprises. The • Beneficiary enterprises should demonstrate financial Enterprise Development element of the scorecard seeks independence and stability. to incentivise organisations like Rand Water by providing • Development of Management skills (Financial, recognition for various types of assistance to SMME’s Marketing, Operations, etc.) with the objective of expanding their operational and • Beneficiary enterprises should demonstrate financial capacity. profitability, well managed cash flow and long-term sustainable growth. Rand Water‘s objectives towards Enterprise • Enhanced technical skills Development are to: • Enhanced competitive edge • Enhance competitiveness of the BEE suppliers to • Weaned from Rand Water Dependency Syndrome acceptable standards Job creation and local empowerment – Through • Increase the capacity of Rand Water’s BEE suppliers community-based projects, Rand Water is promoting to meet not only Rand Water’s but other customers’ the development in underdeveloped areas by procuring demands, thereby fulfilling the objective of self- goods and services from local businesses where projects sustainability are undertaken. During the year under review, in all community based projects Rand Water procure materials • Assist in developing capabilities of Rand Water’s from local small business enterprises. In the year under BEE/SMME suppliers to take up new challenges review emerging black contractors were given contracts brought by global competitive environment for the construction of sanitation facilities. A total of R10 million in 2009/2010 financial year was spent • Enhance the Design & Development as well as on these contracts. Another R10 million is committed for Manufacturing capabilities of BEE suppliers with the the current financial year under review. Our job creation view of driving “Local Content” initiative efforts included: employment of local people through sanitation construction projects • Influence Rand Water’s 1st tier suppliers to develop lower tiers in line with the objectives of the B-BBEE Contractor assistance Codes of Good Practice and the B-BBEE strategy. At this stage Rand Water is proud to note that 100 This in turn will achieve the objectives of Accelerated contractors and suppliers now have a BEE Certificates and Shared Growth Initiative for South Africa obtained through Rand Water funding. Our intended (ASGISA), which seeks to reduce unemployment and assistance and empowerment outcomes and impacts poverty by accelerating economic growth. are to enable: Generation of seed funding for small business; Empowerment through upgrading of skills and To foster the Enterprise Development, Rand Water ensures competencies to compete more equitably in the economy. that multiple projects are awarded to number of SMME’s .

Table 24:

2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ Key Performance Indicator 2004 2005 2006 2007 2008 2009 2010 Jobs Created 648 660 1079 513 809 621 808 Female Staff Employed 259 (40%) 366 (55%) 563 (52%) 267 (52%) 459 (56%) 341 (55%) 470 (59%)

Rand Water Sustainability Report 2009–2010 58 Maintaining Sound Financial Health

Financial Performance

The Group has produced modest results for the financial as accumulated cash reserves have been utilised to year ended 30 June 2010 which have been achieved fund the capital expenditure for the period as well as to during a high inflationary period with energy costs redeem the a portion of the long-term loan amounting increases of approximately 96% compared to the to R100 million for the year, thus reducing the interest 2008 levels and higher than expected raw water costs. bearing borrowings to R630 million. The Group achieved revenues of R5 billion in 2010 compared to the same period last year, an increase The group incurred capital expenditure of of approximately 7.5% mainly driven by tariff increase R910 million during the period under review, the of 8.3% for the year which has been obviated by majority of which relates to the augmentation and a reduction in volumes consumption for the year of rehabilitation of infrastructure which has resulted in an 1.5% which is attributable to the high rainfall patterns increase in property, plant and equipment to R6.3 billion. experienced compared to previous years. The group is undertaking major infrastructure renovations to ageing infrastructure. The capital expenditure Net profit has come under pressure due to the difficult decreased by 6% compared to the previous year due trading conditions experienced during the year to lack of sufficient capacity, however, capital under review. Net profit for the year decreased from expenditure is expected to return to normal levels in the R582 million to R302 million mainly as a result of 39% new financial year. increase in variable costs comprising of energy and chemical costs, each of which increased by 39% and The decrease in return on asset from 6% in the previous 36% respectively compared to the previous year and year to 4% is attributable to the increased level of capital lower than expected tariff increases awarded by the expenditure investments embarked upon over the last two Shareholder. The full impact of these increases was years as well as lower operating profits generated for alleviated by the cost saving and efficiency measures the year. that were put in place in order to curb further losses and higher interest earned on investments. Accumulated reserves at the end of the financial year amounted to R6.2 billion, representing a R297 million The group remained cash positive reporting closing cash increase from the R5.9 billion in 2009. The increase is balance of R925 million with a cash generated from mainly as a result of the net profit generated for the year. operations of R535 million. Cash generation capability The group has a healthy balance sheet with the debt to has been affected by the tight trading conditions, a equity ratio of 14% (2009: 16%) reflecting the available shift in the profile of some customers, and increased tax debt raising capacity of the organisation. payments. The cash generated from operations as well

59 Rand Water Sustainability Report 2009–2010 Maintaining Sound Financial Health (continued)

Abridged Consolidated Annual Financial Statements for the year ended 30 June 2010

In millions of Rands 2010 2009 Income Statement Revenue 4 998 4 648 Cost of sales (2 457) (2 259) Gross income 2 541 2 389 Net operating expenses (2 223) (1 876) Operating profit 318 513 Net finance costs (11) 74 Taxation (5) (5) Profit for the year 302 582 Statement of Comprehensive Income Profit for the year 302 582 Other comprehensive income (4) 4 Total comprehensive income 298 586 Statement of Financial Position Assets Non-current assets 6 586 5 892 Current assets 1 875 2 028 Non-current assets held for sale - 1 Total assets 8 461 7 921 Equity and Liabilities Accumulated Reserves 6 222 5 925 Non current liabilities 949 860 Current liabilities 1 290 1 136 Total equity and liabilities 8 461 7 921 Statement of Changes in Equity Balance at 1 July 5 924 5 338 Total comprehensive income 298 586 Balance at 30 June 6 222 5 924 Statement of Cash Flows Net cash from operating activities 535 957 Cash generated from operations 546 881 Other (11) 76

Net cash from investing activities (862) (955)

Net cash from financing activities (100) -

Net (decrease)/increase in cash and cash equivalents (427) 2

Funding

Rand Water is embarking on a Capital Expenditure/ R8.1 billion to address the core business requirements Investment Programme (CAPEX) amounting to R10 billion that is made up of 70% new augmentation to increase to meet the demand projections for 2015, 2020 and capacity and 30% renovations and refurbishments to 2025, to refurbish the ageing infrastructure and to maintain current operations. A further R1.9 billion is address the new focus on Bulk Sanitation for the next included to address the Group’s growth investments five years. Included in the CAPEX Programme is a which would include Bulk Sanitation, Co-Generation as

Rand Water Sustainability Report 2009–2010 60 well as investments contributing to the National Priorities The feasibility of Rand Water’s Funding Strategy is being, Water Conservation, providing for areas where dependent on its ability to meet its strategic objectives there is a significant social responsibility / indigent and the elements of the Corporate/Business Plan. component and Green Agenda’s for the next five years. The Funding Plan and Strategy encompasses the Rand Water will fund its requirements cost-effectively following key strategic considerations for Rand Water: and with a combination of funding sources. Out of the • Credit rating analysis evaluating the impact of R10 billion Capex requirements, R3.3 billion will be increased gearing and other key financial covenants funded through cash generated from operation and the • Balance sheet optimisation and utilisation of cash balance will be funded through a combination of the resources; following Funding sources: • Maintenance of an optimum debt level; • Development Financial Institutions (DFI’s); • Optimisation of the cost of capital; • Bank Funding; • Adopt an efficient Asset and Liability Management • Debt Capital Markets, and methodology; • Off Balance Sheet funding this includes Project • Compliance with legislation and Regulatory Bodies; Financing and Public Private Partnerships. Credit Ratings Project Financing and Public Private Partnerships would be utilized to ring fence growth investments as well as Rand Water is rated by two rating agencies namely, Fitch a combination of Grant Funding in line with National Ratings and Standard & Poor’s. priorities. Fitch Ratings has maintained its view of Rand Water Currently Rand Water will be launching a Domestic as follows: Medium Term Note (DMTN) Programme. The size of the • Long term rating of “AA+(zaf)” with a stable outlook programme is R5 billion. The programme will allow Rand and Water to build an issuer profile by issuing short term • Short term rating of “F1+ (zaf)”. commercial paper and long dated instruments to match the assets and liability profile. The ratings reflect a high level of implied Shareholder support which is in line with Fitch’s assessment of the The Funding Strategy and Plan that has been formulated critical nature of the country’s water sector. in line with the Group’s strategy, relevant regulation and taking into account the economic drivers, key covenants Standard & Poor’s ratings and liquidity requirements in order to address the CAPEX • Local currency : A+ with negative outlook and requirements has been approved by the Board. The • Foreign currency rating remained at “BBB+”. plan aims to ensure that Rand Water continues to be a sustainable bulk water services provider and maintains Standard & Poor’s is of the view that our ratings reflects its financial viability while addressing the funding the company’s currently strong credit metrics and requirements. Further to Board approval the Funding supported by a net cash balance sheet. Plan together with the required borrowing limits of R4 billion pertaining to the core business requirements for Rand Water effectively quantifies, manages and monitors the three years ending 2013 has been approved by the the financial (liquidity risk, credit risk, investment and Department of Water Affairs and National Treasury and interest rate risk) and operational risk of the treasury gazette accordingly in the Government Gazette dated 4 environment by ensuring policies and procedures related June 2010. to these risks are adhered to.

61 Rand Water Sustainability Report 2009–2010 Global Reporting Initiative’s Sustainability Reporting Guidelines and Other Statistics

This section includes all statistical and other information The detailed GRI G3 content index providing an that pertains to the Global Reporting Initiative’s (GRI) G3 indicator by indicator view of our compliance with GRI Sustainability Reporting Guidelines. The report has been G3 is presented below: prepared based on the guidelines at a C level.

Report Application Level C C+ B B+ A A+ G3 Profile Disclosures Report on: Report on all criteria listed Same as requirement for 1.1 for level C plus: level B 2.1 - 2.10 1.2 3.1 - 3.8, 3.10 -3.12 3.9, 3.13 4.1 - 4.4, 4.14 - 4.15 4.5 - 4.13, 4.16 - 4.17 G3 Management Not required Management approach Management approach Approach Disclosures disclosures for each disclosures for each indicator indicator category category

G3 Performance Report on a minimum of Report on a minimum Respond on each core Indicators and 10 performance indicators, of 20 performance G3 and sector supplement Standard Disclosures

Sector Supplement including at least one from Report externally assured indicators, including at Report externally assured indicator with due regard to Report externally assured Performance Indicators each of: social, economic least one from each of: the materiality principle by and environment economic, environment, either: a) reporting on the human rights, labour, indicator; or b) explaining the society, product reason for its omission. responsibility.

Other pertinent statistics based on the GRI indicators addressed

GRI Summary Table

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number 1.1 Statement from the most senior decision-maker of the Yes 9 5–6 organisation 1.2 Description of key impacts, risks, and opportunities. No – 9

2.1 Name of the organisation. Yes – 1 2.2 Primary brands, products, and/or services. Yes – 1 2.3 Operational structure of the organisation, including main Yes 7 – divisions, operating companies, subsidiaries, and joint ventures. 2.4 Location of organisation’s headquarters. Yes – Back Cover 2.5 Number of countries where the organisation operates, and names of countries with either major operations or that are Yes – 1, 2 specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. Yes 12 – 2.7 Markets served (including geographic breakdown, sectors Yes – 1, 27 served, and types of customers/beneficiaries). 2.8 Scale of the reporting organisation. Yes – 26 2.9 Significant changes during the reporting period regarding size, Yes 12 – structure, or ownership.

Rand Water Sustainability Report 2009–2010 62 GRI Summary Table (continued)

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number 2.10 Awards received in the reporting period. Yes 60,63 3, 18 3.1 Reporting period (e.g., fiscal/calendar year) for information Yes – 2, 5 provided. 3.2 Date of most recent previous report (if any). Yes – 5 3.3 Reporting cycle (annual, biennial, etc.) Yes – 5 3.4 Contact point for questions regarding the report or its contents. Yes Inside Back Cover 3.5 Process for defining report content. Yes 5, 6, 7 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, Yes – 1 leased facilities, joint ventures, suppliers). 3.7 State any specific limitations on the scope or boundary of the Yes – 5 report. 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can Yes 13 – significantly affect comparability from period to period and/or between organisations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other No – – information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement Yes – N/A (e.g., mergers /acquisitions, change of base years/periods, nature of business, measurement methods). 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the Yes – N/A report. 3.12 Table identifying the location of the Standard Disclosures in the Yes – 62 report. 3.13 Policy and current practice with regard to seeking external No – 6 assurance for the report. 4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific Yes 12–16 – tasks, such as setting strategy or organisational oversight. 4.2 Indicate whether the Chair of the highest governance body is Yes 12–16 – also an executive officer. 4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are Yes 12–16 – independent and/or non-executive members. 4.4 Mechanisms for shareholders and employees to provide Yes – 7 recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including No – _ departure arrangements), and the organisation’s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure No – _ conflicts of interest are avoided. 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the No – _ organisation’s strategy on economic, environmental, and social topics.

63 Rand Water Sustainability Report 2009–2010 GRI Summary Table (continued)

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, No – 4 and social performance and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant No – 9–13 risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, No 12–16 – environmental, and social performance. 4.11 Explanation of whether and how the precautionary approach or No – – principle is addressed by the organisation. 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation No – 9 subscribes or endorses. 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation: * Has positions in governance bodies; * No – 16, 19 Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. 4.14 List of stakeholder groups engaged by the organisation. Yes – 7, 8 4.15 Basis for identification and selection of stakeholders with whom Yes – 7, 8 to engage. 4.16 Approaches to stakeholder engagement, including frequency of No – 7, 8 engagement by type and by stakeholder group. 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has No – – responded to those key topics and concerns, including through its reporting. EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations – 59–61 and other community investments, retained earnings, and payments to capital providers and governments. EC2 Financial implications and other risks and opportunities for the – 19 organisation’s activities due to climate change. EC3 Coverage of the organisation’s defined benefit plan obligations. – – EC4 Significant financial assistance received from government. – – EC5 Range of ratios of standard entry level wage compared to local – – minimum wage at significant locations of operation. EC6 Policy, practices, and proportion of spending on locally-based – 57, 58 suppliers at significant locations of operation. EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of – 45, 46 operation. EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through – 45 commercial, in-kind, or pro bono engagement. EC9 Understanding and describing significant indirect economic – – impacts, including the extent of impacts.

Rand Water Sustainability Report 2009–2010 64 GRI Summary Table (continued)

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number EN1 Materials used by weight or volume. – 15, 16 EN2 Percentage of materials used that are recycled input materials. – – EN3 Direct energy consumption by primary energy source. – – EN4 Indirect energy consumption by primary source. – – EN5 Energy saved due to conservation and efficiency improvements. – EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as – 38 a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption and reductions – 38 achieved. EN8 Total water withdrawal by source. – 15, 16 EN9 Water sources significantly affected by withdrawal of water. – 1 EN10 Percentage and total volume of water recycled and reused. – – EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity – 35, 36 value outside protected areas. EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high – 35, 36 biodiversity value outside protected areas. EN13 Habitats protected or restored. – 35, 36 EN14 Strategies, current actions, and future plans for managing – 35, 36 impacts on biodiversity. EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of – 34, 35 extinction risk. EN16 Total direct and indirect greenhouse gas emissions by weight. – – EN17 Other relevant indirect greenhouse gas emissions by weight. – – EN18 Initiatives to reduce greenhouse gas emissions and reductions – 42 achieved. EN19 Emissions of ozone-depleting substances by weight. – – EN20 NOx, SOx, and other significant air emissions by type and – – weight. EN21 Total water discharge by quality and destination. – – EN22 Total weight of waste by type and disposal method. – – EN23 Total number and volume of significant spills. – – EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention – – Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the – – reporting organisation’s discharges of water and runoff. EN26 Initiatives to mitigate environmental impacts of products and – 39–42 services, and extent of impact mitigation. EN27 Percentage of products sold and their packaging materials that – – are reclaimed by category. EN28 Monetary value of significant fines and total number of non- monetary sanctions for non-compliance with environmental laws – – and regulations.

65 Rand Water Sustainability Report 2009–2010 GRI Summary Table (continued)

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation’s – – operations, and transporting members of the workforce. EN30 Total environmental protection expenditures and investments by – 41, 55 type. LA1 Total workforce by employment type, employment contract, and – – region. LA2 Total number and rate of employee turnover by age group, – – gender, and region. LA3 Benefits provided to full-time employees that are not provided to – – temporary or part-time employees, by major operations. LA4 Percentage of employees covered by collective bargaining – 48 agreements. LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective – – agreements. LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help – monitor and advise on occupational health and safety programs. LA7 Rates of injury, occupational diseases, lost days, and – 10, 11 absenteeism, and number of work-related fatalities by region. LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or – 44–52 community members regarding serious diseases. LA9 Health and safety topics covered in formal agreements with 44–52 trade unions. LA10 Average hours of training per year per employee by employee – – category. LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist – 44, 45 them in managing career endings. LA12 Percentage of employees receiving regular performance and – – career development reviews. LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, – 46, 47 minority group membership, and other indicators of diversity. LA14 Ratio of basic salary of men to women by employee category. – – HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have – – undergone human rights screening. HR2 Percentage of significant suppliers and contractors that have – – undergone screening on human rights and actions taken. HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to – – operations, including the percentage of employees trained. HR4 Total number of incidents of discrimination and actions taken. – – HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, – – and actions taken to support these rights. HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination – – of child labour.

Rand Water Sustainability Report 2009–2010 66 GRI Summary Table (continued)

Indicator Disclosure Annual Report Sustainability Report Core Page Number Page Number HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the – – elimination of forced or compulsory labour. HR8 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that – – are relevant to operations. HR9 Total number of incidents of violations involving rights of – – indigenous people and actions taken. SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on – – communities, including entering, operating, and exiting. SO2 Percentage and total number of business units analysed for risks – – related to corruption. SO3 Percentage of employees trained in organisation’s anti-corruption – – policies and procedures. SO4 Actions taken in response to incidents of corruption. – – SO5 Public policy positions and participation in public policy – – development and lobbying. SO6 Total value of financial and in-kind contributions to political – – parties, politicians, and related institutions by country. SO7 Total number of legal actions for anti-competitive behaviour, anti- – – trust, and monopoly practices and their outcomes. SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and – – regulations. PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage – – of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts – – of products and services during their life cycle, by type of outcomes. PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to – – such information requirements. PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and – – labelling, by type of outcomes. PR5 Practices related to customer satisfaction, including results of – 14 surveys measuring customer satisfaction. PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, – – promotion, and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, – – including advertising, promotion, and sponsorship by type of outcomes. PR8 Total number of substantiated complaints regarding breaches of – – customer privacy and losses of customer data. PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products – – and services.

67 Rand Water Sustainability Report 2009–2010 List of Acronyms

ABET Adult Basic Education and Training MW Megawatt ACI Africans, Coloureds and Indians MWh Megawatt Hour AMD Acid Mine Drainage Ml/d Megalitres per day ASGISA Accelerated and Shared Growth Initiative mm Millimetre for South Africa m2 Square metres BD Blue Drop NQF National Qualifications Framework BDS Blue Drop System NSP National Strategic Plan (www.dwa.gov.za/buedrop) ODD Organisational Development and Design BEE Black Economic Empowerment O&M Operation and Maintenance COP16 16th session of the Conference of PAC Project Advisory Committees the Parties on Climate Change at the PCP Participation, Co-operation and United Nations Partnership CP Carthodic Protection PDG Previously Disadvantaged Groups CRM Customer Relationship Management (ACI plus White Females) CSIR Centre for Science, Information and PDI Previously Disadvantaged Individuals Industrial Research PFMA Public Finance Management Act CSR Corporate Social Responsibility PIC Portfolio Integrating Committee CSI Corporate Social Investment PMS Performance Management System CVM Customer Value Management PWD People with Disabilities DBSA Development Bank of Southern Africa RMP Resource Management Plan DM District Municipality RWS Rural Water Scheme dTI Department of Trade and Industry SABS South African Bureau of Standards DWAE Department of Water Affairs and SAMWU South African Municipal Workers Union Environment SAQA South African Qualifications Authority DWQ Drinking Water Quality SETA Sector Education Training Authority DWQM Drinking Water Quality Management SHEQ Occupational Health, Safety, EA Environmental Authorisations Environmental and Quality Management EE Employment Equity Systems EIA Environmental Impact Assessments SMS Short Message Service ERWAT East Rand Water Care Company UASA United Association of South Africa ESETA Energy Sector Education Training Authority UDS Urine Diversion System eWQMS Electronic Water Quality Management UK United Kingdom System UNISA University of South Africa GIS Geographic Information Systems VBCEC Vaal Barrage Catchment Executive GPS Global Positioning System Committee HACC Hazard Analysis and Chemical Control VCT Voluntary Counselling and Testing IEMP Industrial Effluent Monitoring Programme VIP Ventilated Improved Pit IT Information Technology WHO World Health Organisation KAP Knowledge Attitude & Practices Surveys WSA Water Service Authority Kl Kilolitres WQSP Water Quality Safety Plan km Kilometre WRC Water Research Commission LM Local Municipality WSP Water Service Provider MAP Management Advancement Programme WTW Water Treatment Works MDG Millennium Development Goals WULA Water Use Licenses

Rand Water Sustainability Report 2009–2010 68