“sustaining the source and flow of life forever”

ESENTATION TO THE PORTFOLIO COMMITTEE

DELEGATION

PRESENTATION TO THE PRESENTATION TO THE PORTFOLIO COMMITTEE PORTFOLIO COMMITTEE

2004/20052004/2005

24 MARCH 200624 MARCH 2006

AGENDAAGENDA

1.1. IntroductionIntroduction2.2. Sedibeng Water PerformanceSedibeng Water Performance

2.12.1 Financial PerspectiveFinancial Perspective 2.2 2.2 Internal/Business Processes Internal/Business Processes

PerspectivePerspective 2.3 2.3 Customer/Stakeholder Customer/Stakeholder

PerspectivePerspective 2.42.4 Human Capital PerspectiveHuman Capital Perspective

3.3. ChallengesChallenges4.4. Mitigating Factors and Way ForwardMitigating Factors and Way Forward

1. Introduction1. Introduction

Sedibeng Water’s long term strategies for Sedibeng Water’s long term strategies for sustainability are embedded in the sustainability are embedded in the Annual Report and Shareholders CompactAnnual Report and Shareholders Compact

The organisation has an organisational The organisation has an organisational performance management system performance management system cemented on the following balanced cemented on the following balanced score card persperctives:score card persperctives:- - FinancialFinancial

Introduction Introduction Contd.Contd.

-- Internal Business ProcessesInternal Business Processes

- Customer / Stakeholder and - Customer / Stakeholder and

-- Human Capital Human Capital

Introduction Introduction Contd.Contd.

These pillars have measurable key These pillars have measurable key performance indicators that are performance indicators that are reviewed on a quarterly basis. This reviewed on a quarterly basis. This ensures that the performance of ensures that the performance of the organisation strategic the organisation strategic objectives are measured and objectives are measured and realignedrealigned

2.2. Sedibeng WaterSedibeng WaterPerformancePerformance

2.1 Financial Perspective2.1 Financial Perspective

Budget and Cost ManagementBudget and Cost Management Achieved a 20% cost savingsAchieved a 20% cost savings

RRevenue Management evenue Management Decline by 7% due to water demand Decline by 7% due to water demand

reduction and unpaid equitable sharesreduction and unpaid equitable shares

2.2. Sedibeng WaterSedibeng WaterPerformance Performance Contd.Contd.

Net SurplusNet Surplus

R13.8 million compared with R10.7 Millions R13.8 million compared with R10.7 Millions in the Free State in the previous yearin the Free State in the previous year

AuditsAudits

Unqualified audits for Free State and Qwa-Unqualified audits for Free State and Qwa-QwaQwa

2. Sedibeng Water2. Sedibeng WaterPerformance Performance contd.contd.

Maintenance ExpenditureMaintenance Expenditure An expenditure of 1% more than budgetAn expenditure of 1% more than budget

Proactive/Planned MaintenanceProactive/Planned MaintenanceUnplanned/Reactive Maintenance Unplanned/Reactive Maintenance

CapexCapex An amount of R14. 2million was spentAn amount of R14. 2million was spent

2. Sedibeng Water2. Sedibeng WaterPerformance Performance contd.contd.

2.2 2.2 Internal/Business Processes Internal/Business Processes PerspectivePerspective

Operational PerformanceOperational Performance

Process efficiency savings of R1.5 millionProcess efficiency savings of R1.5 million Water quality maintained at Class 1 Water quality maintained at Class 1

except of periodic colour, iron and except of periodic colour, iron and management concentrations. management concentrations.

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Water quality can be improved to Water quality can be improved to meet class 1 standards 95% of the meet class 1 standards 95% of the time but the cost implication will be time but the cost implication will be enormous to be transferred to enormous to be transferred to consumersconsumers

SANAS accredited laboratorySANAS accredited laboratory

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Commercial EquityCommercial Equity

Average BEE expenditure is 55%, Average BEE expenditure is 55%, andand

Targets are measured quarterlyTargets are measured quarterly

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Negotiation with suppliersNegotiation with suppliers

-- Price increasePrice increase

-- Encourage establishment of Encourage establishment of and joint ventures with BEE and joint ventures with BEE companiescompanies

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Market DevelopmentMarket Development

Signed 5 strategic support management Signed 5 strategic support management contracts in Siyanda Districtcontracts in Siyanda District

Seconded staff to Phumelela Seconded staff to Phumelela Municipality under Project ConsolidateMunicipality under Project Consolidate

2. Sedibeng Water2. Sedibeng WaterPerformance Performance contd.contd.

2.3 Customer/Stakeholder Perspective2.3 Customer/Stakeholder PerspectiveCustomer SatisfactionCustomer Satisfaction

Interaction with Ward CommitteesInteraction with Ward Committees Improved responsive time and reduction Improved responsive time and reduction

of interruptionsof interruptions Reduction of complaints Reduction of complaints Improved performance in line with SLAImproved performance in line with SLA

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Monthly coordinating committee Monthly coordinating committee meetingsmeetings

Customer satisfaction monitoring Customer satisfaction monitoring system (KPIs in place)system (KPIs in place)

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

Corporate Social InvestmentCorporate Social Investment

Invested approximately R1.5 millionInvested approximately R1.5 million The programme concentrated onThe programme concentrated on

- - Food parcels provisioning at Food parcels provisioning at Kestell and Intabazwe in Qwa Kestell and Intabazwe in Qwa QwaQwa- - Donations to schools Donations to schools - Donations to orphanage- Donations to orphanage-- LearnershipLearnership

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

2.4 Human Resources Perspective 2.4 Human Resources Perspective

TrainingTraining• ABETABET• LearnershipLearnership• BursariesBursaries• ExperientialExperiential• Expenditure, 40% more than budgetExpenditure, 40% more than budget• Leadership, management, finance etc.Leadership, management, finance etc.

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

SafetySafety Disabling Injury Frequency rate Disabling Injury Frequency rate

averaged 0.5 compared with 1.1 last averaged 0.5 compared with 1.1 last yearyear

All regions received 5 star NOSA All regions received 5 star NOSA ratingsratings

HealthHealth• Monitoring water quality at provincial Monitoring water quality at provincial

level (FS and NC)level (FS and NC)

2. Sedibeng Water2. Sedibeng Water Performance Performance contd.contd.

• Assist in water and waste water Assist in water and waste water testing and analysis under Project testing and analysis under Project ConsolidateConsolidate

• HIV/AIDS awareness campaign and HIV/AIDS awareness campaign and provision of ART from March 2005provision of ART from March 2005

EnvironmentEnvironment• Monitoring discharges into wet streamMonitoring discharges into wet stream

3. Challenges3. Challenges

• Payment of subsidies and equitable Payment of subsidies and equitable shares by Water Services shares by Water Services AuthoritiesAuthorities

• Acknowledgement of the role of Acknowledgement of the role of Sedibeng Water as a public entity Sedibeng Water as a public entity in water service deliveryin water service delivery

• Section 78 ProcessesSection 78 Processes• Regionalisation of Water BoardsRegionalisation of Water Boards

4. Mitigating Factors 4. Mitigating Factors And And Way ForwardWay Forward

• Improving plant efficienciesImproving plant efficiencies• Increasing area of serviceIncreasing area of service• Training and developmentTraining and development