Vision Strategic Objectives Mission - Rand Water Reports/2009-2010 Annual Reports/1467 … ·...

MissionTo 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.

Vision

To be a provider of sustainable, universally competitive water and

sanitation solutions for Africa.

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

Bulkpotablewatersupply Bulksanitationservices Productsandotherservices Operatingandmaintenanceexpertise Engineeringplanninganddesigns Catchmentmanagementservices Scientificandanalyticalservices Utilitymanagement Sanitationandwastewatermanagement

Projectandqualitymanagement Commissioningofwaterandwaste-water

treatmentplants Training,educationandcommunication

programmes Infrastructurerefurbishment Waterdemandmanagement Retailwaterservices Watercyclemanagementservices

Rand Water Annual Report 2009–2010�

It gives much pleasure to report on the Rand Water’s

performance for the financial year 2009-10.

The Report is based on the Shareholder Compact

entered into between the Board of Rand Water and the

Honorable Minister of Water Affairs and Environment.

Included in the Shareholder Compact is a clear Policy

Directive from the Shareholder towards which Rand

Water should focus its resources in support of the

Government priorities.

A new multi talented Board of Rand Water was

inaugurated during April 2009. The various skills and

expertise of the Board Members have undoubtedly assisted

Rand Water to produce the good results. The Board

remains committed to the principles of good Corporate

Governance. To this end, the year under review saw the

adoption of both a Board Charter and the Rand Water

Code of Ethics.

During the year under review the critical linkage

between Policy and the Strategy execution was

emphasised. This necessitated a review of several

of Rand Water’s Policies to enable the effective

transformation of the business.

Effective oversight by the Board in partnership with the

Executive Team enabled Rand Water achieve its mandate

of uninterrupted bulk water services supply despite the

recessionary environment that characterised the year under

review. Some costs saving measures were embarked upon

and these mitigated the impact of the drastically reduced

Tariff, and the double- digit increase in the cost of energy

on the overall results. The Board approved a new Strategy

for Rand Water and this created a basis upon which Key

Performance Areas (KPAs) were developed. Performance

Management was a high priority during the year under

review and very strict targets were set for the Executive

Management to accomplish.

The total process of risk management, which includes

a related system of internal controls, remains the

responsibility of the Board of Rand Water. To this end,

the Board adopted the Top Thirteen Risks that were

identified during the year under review. The Board has

also established a dedicated Board Risk Committee (BRC)

the purpose of which is to ensure adequate controls for

Enterprise Wide Risk Management. The Board is satisfied

that the reports prepared by Rand Water’s Internal

Audit division, coupled with those of other independent

organisations have provided sufficient Combined

Assurance that controls are in place to mitigate the Risks.

I would like to acknowledge the outgoing Chairperson

of the Board, Ms Jean Ngubane, for her sterling service

to Rand Water. I would like to express my appreciation

to all the Staff, Management Team, the Portfolio

Integrating Committee (PIC) members and also to my

fellow colleagues on the Board for their contribution to

the success and stability of Rand Water. I would like to

further acknowledge with gratitude the support extended

to Rand Water by the Honorable Minister of the

Department of Water Affairs and Environmental during

the time of transition from the old to the new Board and

for having entrusted me with a huge responsibility of

acting as Chairperson of the Board.

Adv M PETLANE

ACTING CHAIRPERSON

Message from the Acting Chairperson

Rand Water Annual Report 2009–2010 �

The Board of Rand Water

Adv Mosotho Petlane – Acting Chairperson

Member of the Board of Rand Water as from: 1 June 2002

Academic qualifications: BA, LLB, Postgraduate Diploma in Business Administration, MBA

Adv Petlane is an Executive Director at the Sedibeng District Municipality, and serves as

a Commissioner with the General Public Service Sector Bargaining Council (GPSSBC).

He is also the Chairperson of the Vaal University of Technology Foundation.

Mr Percy Sechemane – Chief Executive

Member of the Board of Rand Water as from: 1 September 2008

Academic qualifications: BCom, MBA

Mr Sechemane has previously served as the Chief Executive Officer for the Regional Electricity

Distributor – RED ONE. As General Manager at Eskom, he occupied a variety of leadership

roles in a number of the electricity supplier’s regions. His experience is rooted in the engineering,

strategy, finance and governance disciplines both within the Private and Public sector, with a

strong emphasis on services delivery initiatives. Mr Sechemane has a special interest in driving

co-operative governance towards achieving key government mandates.

Mr Dawood Coovadia

Member of the Board of Rand Water as from: 1 April 2005

Academic qualifications: BCompt (Hons), BCompt, CA (SA), BAC (SA), CMC, FIMC, FIAC,

FCIS, FSAIM, GIA (SA), CAT (UK), M Inst D and JP

Mr Coovadia is a Chartered Accountant (SA) practicing with Coovadia and Associates.

He practices as a registered professional Accountant, Internal Auditor, Management Consultant

and Tax Advisor. He is a non-executive director of the S A National Roads Agency Limited and

the Gauteng Enterprise Propeller. He also serves as Chairman and member of several Audit and

Board Committees.

Dr Michael Ellman


Academic qualifications: Bsc, MSc Chemical Engineering, MBA, PhD

Dr Ellman is a Senior Consultant and Managing Member of Siyadingana Consultants CC, with

more than 35 years professional and managerial experience in the mining, chemical, oil and

gas, electricity, standards development and water sectors. Dr Ellman serves on the Advisory Board

of the Department of Chemical Engineering at the University of Pretoria. He is a former president

of the South African National Committee of the International Electro-technical Commission (IEC)

in Geneva; and is also a former Chairman of the Electro-technical Sector Board of the SABS.


The Board of Rand Water (continued)

Adv Matshidiso Hashatse


Academic qualifications: BA Journalism, LLM, LLB

Adv Hashatse is the Deputy Dean at the Faculty of Students at Rhodes University. She served

her articles at Maluleke, Msimang and Associates, and has also conducted extensive legal

consultancy work. She is a former executive councillor with the S A Telecommunications Regulatory

Authority. Adv Hashatse has served as the Deputy Director at the University of Pretoria, serving

as attorney and project co-ordinator at the Centre for Human Rights. She has also edited and

co-edited books on the rights of children, and other legal issues.

Ms Matshidiso Magonare


Academic qualifications: BA Ed, B Ed (Hons Environmental Education) Integrated Environmental

Management (IEM), Project Management, Community Capacity Building (Cert), Assessor (Cert),

Moderator (Cert)

Ms Magonare is a former education and training quality manager at the Chemical Industries

Education and Training Authority (CHIETA). She has extensive experience in education and

training, environmental education and community development; and has held numerous positions

with both the S A Qualifications Authority and the then Department of Environmental Affairs and

Tourism.

Dr Patricia Makhesha

Member of the Board of Rand Water from 1 April 2005 to 15 December 2009

Academic qualifications: DBA, MBA, EDP, PMD, NDip Public Relations Management

Dr Makhesha is the Chief Executive officer of Mothibi Multimedia Investments.

Mr Lefadi Makibinyane


Academic qualifications: MBL (Investment Banking & International Finance), B.Eng (Hons) in

Chemical Engineering, MDP (Project Management), Professional Engineer, Chartered Engineer,

MIChemE

Mr Makibinyane is currently a Strategic Executive Director at the City of Tshwane Metropolitan

Municipality where he heads the Public Works and Infrastructure Development Department (Water

& Sanitation and Energy & Electricity). He has extensive Management, Technical/Engineering and

Commercial/Financial experience gained with local and international Blue Chip companies over

a 20 year working career.


Ms Savannah Maziya


Academic qualifications: BCom (Hons) Finance & Broadcast Communication (USA),

MBA Strategy & Finance (UK)

Ms Maziya is the Group Chief Executive of the Bunengi Group, a company that is involved in

construction, mining, social infrastructure, financial services and agriculture. She also serves on the

boards of the Bunengi Group, Wilson Bayley Holmes-Ovcon (WBHO) Construction. Ms Maziya

also Chairs the National Regulator for Compulsory Specifications.

Ms Phumelele Ndumo-Vilakazi


Academic qualifications: BCom, MBL, Higher Diploma in Computer Auditing

Ms Ndumo-Vilakazi has occupied senior positions with three of South Africa’s major banks,

and was also an executive manager for corporate finance and strategy at Metropolitan

Retirement Administrators. With competencies in finance, auditing, project management and

communications; she also serves as a non-executive director for a number of entities. Ms Ndumo-

Vilakazi is an author, and is the founding Managing Director of Thuthuka SA.

Ms Nolumphumzo Noxaka


Academic qualifications: CA (SA), MBA, BAdmin, BCom. Acc Hons, N Dip Financial Markets

and Instruments, H Dip Computer Audit

Ms Noxaka is the Managing Director of Alatha Consulting. She was previously the GM Finance

and Administration at SAMRO Ltd. She has occupied senior positions in the financial services

sector, including Strategic Projects Consultant at Absa and Chief Financial Officer at Meeg Bank.

Ms Noxaka is on the boards of NECSA and Mr Bread (Pty) Ltd, and serves on various Audit

Committees.

Ms Jean Ngubane

Member of the Board of Rand Water from 1 April 1995 to 2 April 2010

Chairperson of the Board of Rand Water from 1 April 2005 to 2 April 2010

Academic qualifications: BA, Postgraduate Diploma Applied Social Science

Ms Ngubane is a former director of the Association for Rural Advancement, the Rural

Transformation Association, the S A Council of Churches, and was a researcher at the Human

Sciences Research Council. Ms Ngubane currently serves on the boards of numerous entities.


The Board of Rand Water (continued)

Ms Thembisile Nwedamutswu


Academic qualifications: Policy Studies (Masters), Adv Diploma in Accounting, Dip Business

Admin, Youth Development Certificate, Training of Trainers Cert, Organisation and Strategic

Management Certificate

Ms Nwedamutswu is the Chief Executive of the Independent Development Trust. She was

previously Deputy Director for Integrated Development and Poverty Relief at the Department

of Social Development. She has experience in social development, and has occupied senior

positions in the public sector. She is a former member of the Independent Development Trust and

the Peoples Housing Trust.

Professor Frederick A. O. Otieno


Academic qualifications: PhD (Civil), MBA, MSc, BSc (Civil) (Eng) (Hon), PrEng, FSAICE

Professor Otieno is a professional engineer in South Africa and the United Kingdom. A Fellow of the

S A Institute of Civil Engineers and the Water Institute of Southern Africa, he is currently a Professor

of Civil Engineering and the Deputy Vice Chancellor: Technology Innovation and Partnerships, at

the Durban University of Technology. He has worked as a Consulting Engineer, researcher and

entrepreneur in Civil, Water Engineering and Environmental Management. Professor Otieno has served

as president of WISA, and is a non-executive director, and a member of numerous organisations.

Ms Ferhina Saloojee


Ms Saloojee is a former councillor with the Rustenburg Local Municipality. She has served

in numerous leadership roles in local government, as well as in private sector institutions.

Ms Saloojee holds directorships in a number of companies, including Halotsal (Pty) Ltd, Bergers

Filling Station and Salvest Property Investments CC.

Mr Mdibanisi Tsheke


Academic qualifications: National Preliminary Certificate in Business Administration

Mr Tsheke is a former Executive Mayor of the Govan Mbeki Local Municipality. He serves on the

Executive Committee of the South African Local Government Association, and as an Executive of

SANCO. Mr Tsheke also serves on the board of Rand Water Services (Pty) Ltd.


• D Coovadia

• MJ Ellman

• M Hashatse

• P Ndumo-Vilakazi

• N Noxaka

• MJ Ellman

• S Maziya

• N Noxaka

• FAO Otieno

• M Tsheke

• MF Hashatse

• MB Magonare

• N Noxaka

• FAO Otieno

• F Saloojee

• M M Petlane

(Acting Chairperson)

• M Tsheke

• D Coovadia

• M J Ellman

• M F Hashatse

• M B Magonare

• S P Makhesha #

• L Makibinyane

• S Maziya


• J M Ngubane†

• N Noxaka

• T Nwedamutswu

• F A O Otieno

• F Saloojee

• DKP Sechemane

(Chief Executive)

• MB Magonare

• SP Makhesha

• T Nwedamutswu

• FAO Otieno

• F Saloojee

• MJ Ellman

• L Makibinyane

• S Maziya


• F Saloojee

Audit CommitteeM M Petlane


Capital Investment CommitteeF Saloojee

Risk CommitteeM Tsheke

Remuneration Committee

T Nwedamutswu

Treasury CommitteeD Coovadia

Board and Sub-Committees

Board of DirectorsM M Petlane


# Resigned 15 December 2009 † End of term in office 2 April 2010


It gives me much pleasure to announce the results for the

financial year ending 30 June 2010. The year under

review was characterised by interesting challenges.

Rand Water’s achievements have been extensively

detailed in this Report.

Rand Water is expected to take on an increased role in

the provision of high quality potable water. Rand Water’s

service area was extended to include the Victor Khanye

(formerly Delmas) Local Municipality in Mpumalanga.

A Ministerial Directive was also received from the

Shareholder for Rand Water to support the management

of the Bushbuckridge Water Board. Rand Water

accepted the Directive, and has to date endeavoured

to assist with stabilising the Bushbuckridge Water Board.

Stakeholders are critical to the survival of Rand Water.

Priority was placed on strategic interaction with the

Shareholder, the Parliamentary Portfolio Committee on

Water Affairs and Environmental, the South Africa Local

Government Association (SALGA) and the Gauteng,

North West and Mpumalanga Provincial Legislatures.

Some excursions were undertaken to the Lesotho

Highlands Water Project (LHWP) as a way of creating

better awareness among our stakeholders and to

engender within them a greater appreciation of the total

cost of water provision from the source.

As a mandated bulk water services provider in terms

of the Water Services Act No 108 of 1997, Rand

Water has during the year under review continued to

provide sufficient quantity of high quality water to our

customers. This was evidenced by the 2009/10 Blue

Drop Certification that was awarded to Rand Water

by the Department of Water Affairs and Environment.

Furthermore, almost all the municipalities in our service

area were also awarded the Blue Drop Certification.

The achievement of this award served but to reinforce

Rand Water’s international reputation as a supplier of

high quality bulk water services.

Rand Water Strategy has also prioritised the provision

of Bulk Sanitation to customers. Rand Water is steadily

increasing its footprint into this market, and it is

envisaged that this will have a positive impact on the

overall quality of the Water Resource within our service

area. A more detailed account of the strides made in this

regard is detailed in this Report.

Management is accountable to the board for designing,

implementing and monitoring the process of risk

management, and integrating it into the day-to-day

activities of the company. The internal audit function is

used to provide independent assurance in relation to

management’s assertions in so far as the effectiveness

of risk management and internal control at Rand Water

is concerned. During the year under review, the Top 13

Risks were identified, and sufficient controls were put in

place to mitigate them.

Rand Water continues to operate on a strong financial

footing. In the current year, profitability declined in

comparison with the previous financial year, mainly as

a result of a lower than expected tariff increase that

was awarded by the Shareholder. However, we were

able to institute cost saving measures which enabled

the Organisation to generate a profit, albeit lower than

the previous year. We are confident that the cost saving

measures, coupled with the new tariff that has been

awarded for the new financial year will enable us to

meet our operational costs and infrastructure investment

imperatives going forward.

Chief Executive’s Report


It must be noted that in order to meet the capital

expenditure requirements of the Organisation,

external funding will be required. In order to prepare

the Organisation for this, we engaged with two

internationally-acclaimed Credit Rating Agencies namely,

Fitch Ratings and Standard & Poor’s and the results of the

rating exercise vindicate our financial strength.

Fitch Ratings maintained its view of Rand Water as

follows:

• Long term rating of “AA+(zaf)” with a stable outlook

and

• Short term rating of “F1+ (zaf)”.

These ratings reflect a high level of implied Shareholder

support which is in line with Fitch’s assessment of the

critical nature of the South African Water Sector.

Standard & Poor’s ratings were as follows:

• Local currency : A+ with negative outlook and

• Foreign currency rating remained at “BBB+”.

Standard & Poor's rating evinces Rand Water’s currently

strong credit metrics which is supported by a net cash

Balance Sheet.

As Rand Water, we have instituted strong treasury

management processes that enable us to effectively

quantify, manage and monitor the financial (liquidity

risk, credit risk, investment and interest rate risk) and

operational risk that we face.

We are confident that on the basis of the ratings that

Rand water has been able to maintain, we will be able

to secure funding in the open market to continue to

develop the infrastructure in to the future.

A Funding Strategy and Plan which flows from the

Group’s Strategy in respect of Infrastructure Capital

Expenditure was approved by the Board. The Strategy

and Plan will ensure that Rand Water continues to be a

sustainable bulk water services provider and maintains

its financial viability. Approval for the Funding Strategy

and Plan has also been obtained from the Department of

Water Affairs and Environment and National Treasury.

Rand Water’s investment programme over the next

5 years, amounts to R10 billion. Of this amount,

R 3.3 billion will be funded through cash generated from

operations, and the balance will be funded through a

combination of funding sources, including the new Rand

Water Domestic Medium Term Note Programme (DMTN).

Rand Water will utilise R 8.1 billion to refurbish its ageing

infrastructure, as well as to address the focus on Bulk

Sanitation over the next five years; and R 1.9 billion will

be utilised to address Rand Water’s growth investments.

On the global front, Rand Water has continued to exert

itself as a force to be reckoned with in the area of bulk

water services provision. Rand Water’s Water Wise

Education Team has been nominated in the School

Information Programme category of the International

Water Association (IWA) Marketing and Communications

Award for 2010. The purpose of the competition is to

enhance an integrated and sustainable view on water as

the essential good; and to heighten awareness among

water utilities around the world of the ever-increasing

importance of establishing professional and effective

communication with beneficiaries of water services.

While Rand Water has been undertaking various

initiatives to ensure that it is sustainable over the long

term, no formal reporting on these initiatives has

been undertaken hitherto. In line with global trends

and in keeping with the spirit of the King III Code,

the organisation has undertaken to commence formal

reporting on its activities in this area. A Sustainability

Report will be issued for the year under review,

highlighting our successes and challenges and our

strategy going forward.

These results would not have been achieved without

the dedication of all the staff at Rand Water. I would

therefore like to express my sincere gratitude to all the

staff, my Management Team as well as the Board of

Rand Water for their support. We are also grateful to the

Shareholder for the guidance provided.

DKP SECHEMANE

CHIEF EXECUTIVE


The Portfolio Integrating Committee (PIC)

Mr Percy Sechemane – Chief Executive

Portfolio Integrating Committee member as from: 1 September 2008

Academic qualifications: BCom, MBA

Mr Sipho Mosai – Chief Operating Officer

Portfolio Integrating Committee member as from: 1 April 2009

Academic qualifications: MSc, MBA

Responsibilities:

• Bulk Water Services

• Scientific Services

• Strategic Asset Management

• Strategic Customer Partnerships

Ms Matshidiso Nyembe – Chief Financial Officer

Portfolio Integrating Committee member as from: 18 May 2009

Academic qualifications: BCompt, BCom (Hon), CTA, CA (SA)

Responsibilities:

• Group Finance

• Project Finance

• Employee Benefit Funds

• Treasury

Rand Water Annual Report 2009–2010 �0

Ms Fikile Sithole – Group Governance Executive

Portfolio Integrating Committee member as from: 1 September 2008

Academic qualifications: LLB, Higher Diploma in Labour Law, BA Law, Diploma in Corporate

Governance, Board Leadership Programme (GIBS), Admitted Attorney of the High Court

Responsibilities:

• Corporate Social Responsibility

• Forensic Audit

• Group Secretariat

• Internal Audit

Dr Fawcett Ngoatje – Group Shared Services Executive

Portfolio Integrating Committee member as from: 1 July 2008

Academic qualifications: BAEcon (Hon), Project Management, MDev, PhD

Mr Zvinaiye Manyere – Group Strategy Executive

Portfolio Integrating Committee member as from: 1 January 2006

Academic qualifications: BSc (Engineering), MSc (Structural Design)

Responsibilities:

• Corporate Planning

• Corporate Research and Development

• Financial and Economic Planning

• Legislation and Advocacy

Ms Wayida Mohamed – Strategic Human Capital Executive

Portfolio Integrating Committee member as from: 20 April 2009

Academic qualifications: BA (Hon), Dip Human Resources Management, Post Graduate

Programme, Executive Leadership, Registered Skills Development Assessor and Moderator

Responsibilities:

• Risk Advisory Services

• Corporate Communications

• IT and Knowledge Management

• Legal Services

• Logistic Services

• Supply Chain Management

Responsibilities:

• Change Management

• Compensation

• Employee Relations

• Employee Wellbeing

• HR Administration

• Learning and Development

• Organisational Development and Design

• Talent Management

Rand Water Annual Report 2009–2010��

Rand Water is established in terms of the Water Services

Act No 108 of 1997 (“the Act”). The Government of

the Republic of South Africa, through the Department

of Water and Environmental Affairs (DWEA) and duly

represented by the Minister, is the sole shareholder of

Rand Water.

The relationship between Rand Water and the

Shareholder is governed by the provisions of the Water

Services Act. Rand Water operates within the framework

of a variety of legislations. The main objectives, the

mandate and duties of Rand Water, and the powers of

the Board of Rand Water are regulated by the Act. Rand

Water upholds and promotes the principles of sound

financial management as outlined in the Public Finance

Management Act No 1 of 1999 (the PFMA) and it

subscribes to the Protocol on Corporate Governance in

the Public Sector which mirrors King II Code of Corporate

Governance, which has subsequently been superseded

by the King III Report.

Compliance

Rand Water is fully committed to the highest standards

of integrity, professionalism, sound business principles

and practices of good corporate governance. Rand

Water promotes ethical behaviour and through its systems

and processes, has given life to the ethical culture that

is cultivated across the organisation demonstrating its

commitment to sound governance principles.

Key Governance Highlights

The Board of Rand Water has adopted the

recommendations of the King III Report and has made

a commitment to embrace the principles, and the

governance framework recommended therein, with the

objective of enhancing the organisation’s governance

practices and processes.

During the year under review, Rand Water has

commenced with the implementation of the key

governance requirements introduced and recommended

in the King III Report.

Corporate GovernanceTo this end, Rand Water initiated the following key

developments:

• Review of its governance structures and frameworks

to align its business objectives with the requirements

of the King III Report;

• Adopted the Code of Ethics and also continuously

promotes awareness through campaigns to

all employees, thereby cultivating a culture of

compliance and accountability.

Governance Structures

Board of Directors

Rand Water has a unitary board structure, which consists

of a majority of non executive directors and an executive

director. The position of the Chairperson and the Chief

Executive are separated and their duties are clearly

segregated. The Chairperson of the Board is a non

executive director.

The Board of Rand Water is appointed by the

Department of Water and Environmental Affairs,

duly represented by the Minister, in accordance

with the provisions of the Water Services Act No 108

of 1997.

Roles and Responsibilities of the Board

The Board of Rand Water’s responsibilities are clearly

defined in the Board Charter and within the powers

conferred upon it. The Board’s primary responsibilities are

as follows:

• Retaining full and effective control over the

organisation.

• Providing strategic direction to Rand Water.

• Fulfilling its role as the focal point of corporate

governance and exercising leadership and

judgment in directing Rand Water so as to achieve

sustainability for the organisation.

Rand Water Annual Report 2009–2010 ��

• Setting the risk tolerance level in accordance with

the adopted strategy, overseeing the identification

and evaluation of key risks, as well as the risk

management process

• Monitoring and evaluating the implementation of

strategies, policies, management performance

criteria and business plans, having regard to its own

reporting and performance responsibilities to the

Executive Authority

• Safeguarding a comprehensive system of policies

and procedures and appropriate governance

structures at management level, and taking the

necessary steps to ensure that there is a robust system

of internal controls on the effectiveness of which

regular assurance is received through risk centric

internal audits

• Ensuring ethical behaviour and compliance with

relevant laws and regulations, audit and accounting

principles, and Rand Water’s internal governing

documents and Codes of Conduct

• Continually monitoring the exercise of delegated

powers by management through understanding

the key performance areas and key performance

indicators of Rand Water, and considering reporting

against these

• Defining levels of materiality, reserving specific

powers to itself and delegating other matters, with the

necessary written authority to management

• Regularly evaluating the economic, political,

social and legal issues, as well as other external

developments that may influence or affect the

developments of Rand Water’s business or

the interests of the Department of Water and

Environmental Affairs and, if necessary, obtaining

external expert advice.

Board Meetings

During the year under review, the Board of Rand Water

met as summarised in the table below:

Summary of Attendance of Board Meetings: 1 July 2009

to 30 June 2010

Board Member Total Meetings Total Attended

Ngubane JM † 7 5

Coovadia D 10 8

Ellman MJ 10 7

Hashatse MF 10 6

Magonare MB 10 7

Makhesha P # 5 1

Makibinyane L 10 9

Maziya S 10 7

Ndumo – Vilakazi P 10 8

Noxaka N 10 10

Nwedamutswu T 10 5

Otieno FAO 10 9

Petlane MM 10 10

Saloojee F 10 8

Tsheke M 10 10

Sechemane DKP 10 9

†End of term in office 2 April 2010#Resigned 15 December 2009

SubsidiariesRand Water has established two subsidiaries namely, the

Rand Water Foundation (a section 21 company) which

is the social responsibility arm of Rand Water, and Rand

Water Services (Pty) Ltd, which fulfils other activities. Rand

Water is the sole shareholder of the two companies.

Board Committees

The Board of Rand Water established several committees

to assist it in discharging its duties and these are: the

Executive Committee, Audit Committee, Risk Committee,

Human Resources and Remuneration Committee,

Capital Investment Committee and Treasury Committee.

The Board of Rand Water and its committees are

equitably represented in terms of their diverse skills and

demographics. The Board has approved the Terms of

Reference for each of the committees. This ensures the


optimal discharge of their respective duties within the

scope of the mandate conferred upon each committee.

Executive Committee

The Executive Committee was established to assist the

Board of Rand Water:

• in co-ordinating the implementation of strategy;

• to take responsibility for the authorisation of capital

expenditure;

• to assist in terms of delegation given from time to

time; and

• to assist the Board in monitoring the performance

of executive management in the achievement of the

objectives of Rand Water.

The Executive Committee was subsequently dissolved by

the Board of Rand Water and all the responsibilities and

duties which were performed by the Executive Committee

are now performed by other subcommittees of the Board.

Summary of Attendance of Executive Committee

Meetings: 1 July 2009 to 30 June 2010


Petlane MM 5 4

Tsheke M 5 5

Coovadia D 5 5

Makibinyane L 5 5


Saloojee F 5 3

Ngubane JM † 5 4

†End of term in office 2 April 2010

Audit Committee

The Audit Committee was established by the Board of

Rand Water to assist it with meeting its responsibilities

in compliance with section 51 of the PFMA and the

National Treasury Regulations. The Committee has an

independent role with accountability to both the Board

and the Shareholder. The Committee serves as an

independent oversight and advisory body responsible

for the financial reporting and financial information,

risk management process, internal financial control

and compliance thereto, internal and external audit,

performance monitoring and evaluation and legislative

and regulatory compliance.

Summary of Attendance of Audit Committee Meetings:

1 July 2009 to 30 June 2010


Petlane MM 6 5

Hashatse M 6 3

Coovadia D 6 6

Makibinyane L 6 5


Noxaka N 6 6

Ngubane JM † 4 1

Ellman MJ 6 3

†End of term in office 2 April 2010

Risk Committee

The Risk Committee has been established by the Board

of Rand Water to assist and support it in discharging its

responsibilities and oversight role in respect of the risk

management and internal controls in accordance with

the risk management frameworks and enterprise-wide risk

management plan.

Summary of Attendance of Risk Committee Meetings:

1 July 2009 to 30 June 2010


Tsheke M 4 3

Hashatse FM 4 3

Magonare BM 4 3

Noxaka N 4 4

Otieno FAO 4 1

Saloojee F 4 3

Corporate Governance (continued)


Summary of Attendance of Capital Investment

Committee Meetings: 1 July 2009 to 30 June 2010


Ellman MJ 6 5

Tsheke M 6 2

Maziya NS 6 3

Noxaka N 6 5

Otieno FAO 6 4

Saloojee F 6 6

Treasury Committee

The Treasury Committee has been established by the

Board of Rand Water:

• To oversee the operations of the treasury function

• Assisting with the overall treasury strategy and

monitoring the risks concomitant to the treasury

function

• Oversees the development and implementation of

investment, funding and liquidity strategies in line with

Treasury Policies approved by Rand Water

• The Committee oversees the development and

implementation of policies and procedures with

regards to treasury activities and transactions

• Ensure compliance with financial regulations and

that the activities of the treasury function are in

compliance with the Water Services Act, Public

Finance Management Act and sound corporate

governance

Summary of Attendance of Treasury Committee Meetings:

1 July 2009 to 30 June 2010


Ellman MJ 8 7

Makibinyane L 8 8

Maziya S 8 5

Saloojee F 8 4

Ndumo-Vilakazi P 8 4

Coovadia D 8 8

Human Resources and Remuneration Committee

The Human Resources and Remuneration Committee has

been established to assist in overseeing the development

of remuneration policies for executive directors and

the application thereof; to direct the administration of

the bursary scheme and to oversee the establishment

and implementation of human resources policies. The

Committee monitors and reviews the performance

information provided by Rand Water against the

approved corporate business plan. The Committee

provides the Board of Rand Water and the Shareholder,

as per the Shareholders Compact, with an authoritative

and credible view of the performance of Rand Water.

Summary of Attendance of Human Resources

and Remuneration Committee Meetings: 1 July 2009 to

30 June 2010

Board Member Total Meetings

Total Attended

Petlane MM 5 5

Magonare M 5 5

Makhesha P # 3 0

Nwedamutswu T 5 2

Otieno FAO 5 4

Saloojee F 5 5

Ngubane JM † 4 2

†End of term in office 2 April 2010#Resigned 15 December 2009

Capital Investment Committee

The Capital Investment Committee has been established

by the Board of Rand Water (“the Board”) to optimally

control the major capital expenditure that falls within the

scope of the “Primary Activities” and “Other Activities” as

defined in the Water Services Act 108 of 1997.

The Committee assists the Board to comply with

all directives from the Shareholder with regard to

Integrated Water Resource Management and to oversee

the management and administration of the capital

expenditure budget.


The Office of the Group Company Secretary

A new Group Company Secretary, Ms Pertunia Mohlabi,

was appointed with effect from 7 September 2009.

The Group Company Secretary provides the Board with

guidance on all governance issues and ensures that the

Board functions effectively and that procedures, rules and

regulations are fully observed. The office of the Group

Company Secretary also assists with the implementation

and monitoring of good business governance practices

throughout the organisation, and compliance to

applicable legislation, policies, rules and regulations.

The office of the Group Company Secretary forms part

of the accountability framework of Rand Water which

focuses on adding value to the business by leveraging

the value created by conformance.

Induction and Training

It is the responsibility of the Group Company Secretary

to ensure that newly appointed directors are inducted,

and that the organisation has an induction programme

for the purposes of their training and development with

regards to their roles and responsibilities, their fiduciary

duties, applicable legislation and regulations. In addition

to that, the Group Company Secretary‘s responsibility is

to update members of the Board of Rand Water on the

relevant laws, regulations and any legislative changes

from time to time.

Rand Water has a formal induction programme and

during the year under review, all the board members

attended several workshops and courses to familiarise

themselves with Rand Water’s operations, its business

environment, applicable legislation as well as the

King III Report.

Delegation of Authority

Rand Water has adopted a comprehensive delegation of

authority framework in accordance with section 56 of the

Public Finance Management Act of 1999 (PFMA), which

clarifies the various levels of materiality and assists with

the limits of authorisations throughout the organisation.

The Board of Rand Water has delegated the powers

and authority entrusted to it to management, to perform

any of the duties assigned to it in terms of the PFMA.

The delegation does not in any way divest the Board’s

responsibilities, authority and duties.

Code of Ethics

Rand Water has a strategic objective to engender

a culture of integrity, to foster mutual respect and trust

amongst the employees and the organisation with

regard to any business dealings conducted on its behalf.

The Rand Water Code of Ethics applies to the Board

members, senior management, all employees, Rand

Water’s stakeholders and the public in general. This

ensures high standards of ethical behavior in dealing

with all stakeholders. The Code of Ethics supports

Rand Water’s vision and the values that represent the

organisation.

Corporate Governance (continued)


During the year under review, the Board of Rand Water

contributed significantly to the process of Enterprise Wide

Risk Management (EWRM) by consistently overseeing

the implementation and monitoring of the process of risk

management, and its integration into daily activities of

the organisation.

The EWRM at Rand Water seeks to identify, evaluate,

monitor and report all actual and potential risks at the

earliest possible time. This exercise remains embedded

throughout the organisation via the risk assessments that

are done within the organisation, using the established

as well as the Board approved evaluation criteria.

During the year under review, Rand Water continued to

update its risk management processes. Controls were put

in place to mitigate risks.

Rand Water’s Top 13 Strategic Risks for the financial year

to 30 June 2010 comprised:

• Conditions of existing infrastructure

• Availability, cost and tenure of funds

• Quality of potable water

• Critical skills attraction and retention

• Supply of bulk water services

• Contractual obligations

• Business efficiency

• Alternative revenue streams

• Achievement of stakeholder expectation

• Application of corporate governance

• Quality and quantity of raw water

• Availability of goods and services

• Alignment between strategic and operational objectives

The risk mitigation plans and controls are continuously

monitored by Rand Water’s Corporate Risk Committee

(CRC) and these are then assessed by the internal

audit function before consideration by the Board Risk

Committee.

Occupational Health, Safety, Environmental and Quality Management Systems (SHEQ)

Rand Water maintained the following ISO standards

namely, ISO 14001 (Environmental Management

Enterprise Wide Risk Management (EWRM)Systems), ISO 9001 (Quality Management System)

and OHSAS 18001 (Occupational Health & Safety

Management System). These have benefited Rand

Water with regards to compliance with legislation,

most notably the environmental legislation, reduction

of ill-health and workplace injuries.

In accordance with the Certification Body’s requirements,

Rand Water’s SHEQ Management System underwent a

re-certification by a third party (SABS) audit and retained

its certifications with distinction. These three-yearly

re-certification audits have re-affirmed the high maturity

level of Rand Water’s SHEQ Management Systems and

has enhanced the Combined Assurance by the Board.

Internal and external surveillance and legal audits are

continuously undertaken as per dedicated schedules to

constantly monitor the effectiveness of the systems, and to

ensure compliance with all legal and other requirements

applicable to the organisation.

Environmental Management – ISO 14001:2004

In September 2009, following extensive internal

surveillance and legal audits, Rand Water was able to

maintain its ISO 14001:2004 certification for a further

three years to September 2012. In so doing, Rand

Water again demonstrated its ability to implement its

commitments to sustainable development and pollution

prevention, and its adherence to legal requirements.

In line with the fundamental principle of continual

improvement, entrenched in the ISO 14001:2004

standard, Rand Water has also embarked on strategies

to improve its environmental monitoring and reporting

as well as its compliance to applicable legislation.

After a gap analysis was completed, the key problem

areas of Environmental Impact Assessments (EIAs)

and Water Use Licenses were identified. Rand Water

continues to engage with the Department of Water

and Environmental Affairs to resolve these challenges.

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


Enterprise Wide Risk Management (continued)

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 environ-

mental aspects that may pose a risk to the environment.

Currently, Rand Water is monitoring dust fall-out at some

of its sites, as well as waste generation, in particular

hazardous waste, throughout the organisation.

Occupational Health and Safety – OHSAS 18001:2007

Rand Water has been successfully certified in terms of the

updated version of OHSAS 18001:2007. The updates

include, but are not limited to, the requirement that the

organisation takes human behavior capabilities into account

when assessing hazards and risks in the workplace.

Disabling Injury Frequency Rate (DIFR) reduced from

0.57 to 0.53 during the year under review:

Year Actual DIFR Target DIFR

2007/08 0,54 0,8

2008/09 0,57** 0,8

2009/2010 0.53 0.8

**Human behaviour, and tripping and falling from steps were the main cause of the increase in disabling injury frequency.

This was mainly due to a number of factors including, but

not limited to, the following elements of the Occupational

Health and Safety programme:

• Regular workplace Health and Safety inspections by

Health and Safety Representatives

• Health and Safety awareness programmes

• Effective reporting; corrective and

preventative system

Programmes on SHE awareness including induction and

safety awareness posters have been intensified.

Quality Management Systems (QMS) – ISO 9001:2008

Rand Water holds bi-annual SABS quality management

audits which continue to confirm the high maturity

level of Quality Management Systems. In these SABS

audits, Rand Water’s QMS was found to continuously

comply with all ISO 9001:2008 requirements.

The re-certification process has already commenced,

and the first sets of SABS audits have shown excellent

compliance to the updated ISO 9001:2008.

Contractor Management

During the year under review, all Rand Water sites

continued to focus on contractor management with

regards to compliance to the Construction Regulations

as framed under the Occupational Health and Safety

(OHS Act 85 of 1993). A successful campaign by Rand

Water’s Risk Advisory departments to have all contractors

comply with the Construction Regulations was achieved.

This included all small and emerging, medium and large

contractors. Compliance to the OHS Act 85 of 1993,

improved especially amongst the small and emerging

contractors. A number of SHE workshops facilitated by

Rand Water’s Risk department were held to increase SHE

awareness among the contractors.

Site Business Continuity Plans

During the year under review, all Rand Water’s major

pumping stations’ Business Continuity Plans were

reviewed. The review process identified no specific

areas of serious concern. Nonetheless, all the information

contained in the Business Continuity Plans were updated.

Disaster Simulation Exercises

A total of eight disaster simulation exercises were

conducted during the year under review in conjunction

with the appropriate local authority emergency services,

i.e., Disaster Management Centres, the South African

Police Services, Rand Water operational sites and other

stakeholders. Detailed action plans including timeframes

have been compiled for all deviations and are being

addressed.


External Audit

External auditors have been appointed to provide

assurance and credibility to the organisation’s existing

Assurance Framework in terms of the Public Finance

Management Act (PFMA) and the Water Services Act.

Internal Audit

In recent years, internal audit processes have

internationally undergone significant changes with regard

to how these audits should be undertaken. Most notably,

there has been a visible move from process-based audits

to ones that are risk-based, while also embracing the key

principles of governance and risk management.

Rand Water’s Internal Audit unit is considered critical

to the organisation and has an independent appraisal

function established to evaluate the adequacy and

effectiveness of its controls, disciplines, systems

and procedures in order to reduce business risks to

acceptable and cost effective levels and to ensure the

achievement of the organisation’s objectives.

The head of Rand Water’s Internal Audit unit reports

functionally to the Audit Committee, and administratively

to the Group Governance Executive, and also attends

the meetings of the Board’s Audit Committee. He also

attends the meetings of the PIC by invitation. To deliver

value added service at Rand Water, the Internal Audit

unit has found it imperative to emphasise the importance

of differentiators rather than focusing exclusively on

qualifiers.

Qualifiers are the standard audit processes internal audit

must accomplish daily. These include assurance work,

audit reports, work paper documentation and training

and development. Differentiators push the internal audit

team to strive for excellence and underscore its ability to

deliver distinctive value to the organisation. With this is in

mind, it is not surprising that people play the most critical

role in Rand Water’s internal audit processes.

Rand Water has a formal charter in place to regulate the

functions of the Internal Audit unit, as well as a detailed

audit plan based on risk assessments and issues raised

at the Board, the Audit sub-committee and Portfolio

Integrating Committee (PIC) meetings.

Rand Water’s Internal Audit unit has focused on the

following key issues, which are championed by the

Board and the Portfolio Integrating Committee (PIC),

which insisted on a more tangible demonstration of the

performance of Rand Water’s Internal Audit unit:

• Focusing on client management, to include

knowledge sharing and fostering partnerships with

line managers, and returning the ownership of

controls to management.

• Re-directing its processes from detection to prevention;

and identifying solutions to challenges.

• Focusing on a risk-based approach with its audit

processes.

• Adding value to Rand Water’s organisational

objectives, strategies, risks and corporate governance

priorities.

• Greater emphasis on technology, i.e. automated

work papers, computer assisted audit software, etc.

• The adoption of a risk-based plan and the importance

of cooperation with other assurance providers.

Rand Water’s Internal Audit unit has undertaken the

following processes amid the evolving enterprise risks

and recession to add strategic value to the organisation:

• Linking the organisation’s strategic objectives and

value-drivers to those that fall within the scope of

internal audit.

• Responding to stakeholders’ expectations of internal

audit, and the priorities of the Board, the Audit

Committee and the Portfolio Integrating Committee

(PIC).

• Identifying inefficient processes and eliminating

routine low-value audits.


• Regularly reviewing the updated internal audit plan

together with the implementation of cost-reduction

measures with key stakeholders to further improve

support for internal audit processes.

• Maintaining the alignment with the changing risk

profile of Rand Water.

• Attracting and retaining internal audit human resource

talent and increasing the business and operational

knowledge of staff.

• Leveraging technology to optimise audit operations.

Legal Services

Rand Water’s strategic risk analysis for the year under

review identified “Contractual Performance” as the sixth

most strategic risk of the organisation. Rand Water has

implemented a Contract Management System to streamline

previously fragmented contract management processes.

Essentially, the Contract Management System allows

for the provision of contract governance, execution

management, and performance monitoring while at the

same time improving efficiencies.

The System also allows for:

• The central storage of contracts and a controlled user

access to documents online.

• The establishment of triggers as notification alerts for

the appropriate action requested.

• A significant reduction in the usage of paper.

• Reduction in contract creation times.

All active, expired or terminated contracts entered into

by Rand Water as well as any additional information

pertaining to the contracts are stored on the Contract

Management System.

The standardised templates on the Contract Management

System reduce any legal risk that Rand Water could

potentially face. Since its implementation, Rand Water

has observed a significant decrease in the number of

contracts challenged by interested and affected

Third Parties.

Supply Chain Management

Rand Water considers transformation as an essential

element of its business that is integral to the development

of South Africa.

Rand Water is committed to addressing the imbalances

of the past, not only with regard to its human resource

processes but also in its commercial equity priorities.

The organisation’s Procurement Policy is based on the

Broad Based Black Economic Empowerment Act and

the Department of Trade and Industry’s (DTI) Codes of

Good Practice.

The policy is aimed at the inclusion of previously

disadvantaged individuals onto the supplier base for

goods and services. The policy also allows for the

setting and reviewing of targets to ensure that progress

is made towards the achievement of the organisation’s

BEE targets.

Rand Water’s Procurement Policy strives to:

• Provide an appropriate acquisition process for the

procurement of all goods and services.

• Ensure that the procurement process is fair,

transparent, consistent, equitable, competitive and

cost effective.

• Maintain the highest ethical standards.

• Promote the objectives of the Commercial

Equity policy.

• Ensure that the procurement processes comply with

the legal framework that governs Rand Water.

During the year under review, Rand Water set a BEE

target of 75-percent, with a stretch to 80-percent.

It attained 81.12-percent.


Rand Water has two water purification plants, namely the

Zuikerbosch and Vereeniging Purification and Pumping

Stations; and four booster pump stations, namely:

Zwartkopjes, Palmiet, Eikenhof and Mapleton.

Vereeniging Purification and Pumping Station

The Vereeniging Purification and Pumping Station was

Rand Water’s first river intake pumping site. Situated 37

kilometers from the Vaal River Barrage, it was constructed

and put into operation in the early 1920s. The station

consists of five purification systems and associated

pumping plants which allows for an efficient purification

process.

Zuikerbosch Purification and Pumping Station

First commissioned into operation in 1954, the

Zuikerbosch Purification and Pumping Station is one of

the largest water purification and pumping plants of its

kind in the southern hemisphere. Consisting of four water

purification systems and associated pumping plants,

Zuikerbosch is situated on the banks of the Vaal River,

and is approximately 30 kilometers downstream of the

Vaal Dam.

Purification and Pumping of Water

After completion of the purification process at both of

these plants, the water is pumped at an elevation of

approximately 200 meters to the level of the booster

stations at Zwartkopjes, Palmiet, Eikenhof and Mapleton.

Zwartkopjes Pumping Station

The Zwartkopjes Pumping Station is Rand Water’s

oldest booster pumping station, first established in

1907 on the Zwartkopjes Farm in the south of

Johannesburg. Zwartkopjes, together with its satellite

pumping stations at Palmiet, Eikenhof and Mapleton,

disinfect and re-pump potable water received from the

Vereeniging and Zuikerbosch Purification and Pumping

Stations. The water from these stations is then pumped

to Rand Water’s strategically located reservoirs.

Reliability of Water Supply

Adjacent to Rand Water’s Zwartkopjes Pumping Station

is its distribution unit, Central Depot, which consists

of the central water distribution network, connected to

13 district networks located strategically throughout

the area of supply. The pipeline network is efficiently

managed and controlled to ensure reliability of the supply

of high quality potable water.


Chlorine

Filter House

Primary disinfection

The water leaving the purification works is disinfected with chlorine to kill any remaining micro-organisms, bacteria and viruses.

6 Filtration

The water passes into the filter houses, where it flows through rapid gravity sand filter beds. The remaining suspended particles are removed at this stage.

7

The following diagram presents a schematic flow chart of the process flow from extraction to the end consumer:

Flocculators

2

Activated Silica

Raw Water

Raw water is abstracted from the Vaal Dam via a canal and gravity pipeline and by pumping from the Vaal River Barrage Reservoirs at Lethabo, Zuikerbosch and Vereeniging. The raw water now undergoes a stringent purification process.

1

Carbonation Bay

Stabilisation

The water flows into carbonation bays, where it is stabilised by bubbling carbon dioxide gas, obtained from lime-burning kilns, through the water.

Coagulation

Suspended particles are removed from the raw water through the addition of sodium silicate and slaked lime.

Flocculants

The suspended particles clump together to form heavier visible particles called flocculants.

Average daily water total pumped during the year

under review:

Zwartkopjes 486 Ml /dPalmiet 1187 Ml/dEikenhof 1071 Ml/dMapleton 592 Ml/d


Chlorine and Ammonia

Balancing Reservoir

Potable Water Pumps

Consumer

Secondary disinfection

Chlorine and ammonia are added at the booster pumping station to form monochloramine, which protects the water against bacteria for up to eight days.

8

Sludge Disposal Site

Lime Slaking

During purification, 600 to 1 000 tons of fine silt is removed from the river water daily and 9 000 tons of slaked lime is used in the purification process each month.

3

Lime Kilns

Raw limestone is fired in a kiln.The burnt limestone is crushed and slaked with water to produce slaked lime or calcium hydroxide.

5

Sedimentation Tank

4

Sedimentation

The flocculants settle in specially designed tanks, also engineered to reduce sludge.

Online Labs

Booster Pumping Station

Online Laboratories

The online laboratories measure pH, conductivity, turbidity and chlorine on a continuous basis on all outgoing mains to ensure compliance to SANS 241. The values are displayed on the instrument itself but also on a SCADA system, where an operator can monitor the parameters on computer in the control room. All data is logged and trending can be done on the parameters.

9


During the year under review, Rand Water was able

to continue to meet the demands of its customers.

Rand Water’s standby capacity and contingency

planning systems ensure that the organisation is in a

position to consistently meet its water supply obligations

in the event of a breakdown, or the technical failure

of components within its infrastructure. Rand Water’s

standby and rapid response teams can be deployed to

manage such circumstances. Rand Water’s confidence

in these measures is evidenced by the fact that during

the year under review, there was no disruption in the

organisation’s provision of high quality potable water

throughout its area of supply.

Energy Consumption for the Year under review

The Energy Efficiency Strategy of the government set

the national target for the reduction of energy at 12-

percent. The national target for the reduction of energy to

be achieved by 2015 is to delineate the growth of energy.

The Energy Demand reduction graph indicates that Rand

Water exceeded the set target during 2006 already.

The Energy Demand reduction graph indicates that the

actual energy consumption during 2008 increased by

1,2-percent. The increase in energy consumption is due

to the increase in pumping overheads in that numerous

pipelines were taken out of service for refurbishment.

Efficiency Measures

Energy Consumption 2010 2009 2008 2007 2006 2005

Coal Used t/Ml PHASED OUT 0.410 0.900

Electricity Used (Average per Station) kWh/Ml 657 643 654 662 660 653

Cost of Energy

Cost of Coal R/t PHASED OUT 184.1 173.0

Cost of Electricity c/kWh 37.9 27.3 20.1 18.3 17.7 17.7

Energy Efficiencies

ZUIKERBOSCH 71.6% 71.6% 71.4% 77.4% 84.3% 84.9%

VEREENIGING: Electrical 68.5% 65.4% 65.5% 73.0% 67.4% 56.1%

VEREENIGING: Steam PHASED OUT 9.3% 9.0%

ZWARTKOPJES: Electrical 82.3% 83.8% 79.9% 72.3% 79.0% 72.4%

ZWARTKOPJES: Steam PHASED OUT 8.4%

PALMIET 78.5% 79.9% 81.7% 82.7% 82.9% 81.6%

EIKENHOF 83.4% 83.3% 82.6% 83.7% 79.9% 81.4%

MAPLETON 78.5% 78.8% 75.3% 72.6% 73.6% 71.5%

Energy Consumption 2009 2008 2007 2006 2005

Coal Used t 35 595 152 640

Electricity Used kWh 1 788 714 933 1 812 765 747 1 731 768 733 1 707 733 162 1 569 610 751 1 503 183 518

3 000 000 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Energy Demand

2 500 000 000

2 000 000 000

1 500 000 000

1 000 000 000

500 000 000

0

Actual

Baseline

Years

Ener

gy U

se in

kW

h

2010

Purification and Pumping of Water (continued)


Rand Water’s infrastructure is a multi-billion rand asset that

needs to be managed and leveraged in order to extract

maximum value, and has to be monitored to avoid the

risk of failure. With 70-percent of the organisation’s

infrastructure expenditure work taking place through

augmentation to meet the growth in demand; other

projects are also initiated to reduce operating costs,

improve treatment processes, enhance plant safety,

as well as to extend the life of its existing assets.

Rand Water estimates demand in growth to continue,

but with a long term decline in annual growth rates.

The age and replacement value of existing assets

will also continue to increase. In response, Rand Water

has an asset management division to co-ordinate

and optimise its existing asset management streams.

Best practice will continue to be confirmed for design,

operation, maintenance, rehabilitation and the disposal

of each asset category, in order to support the required

levels of service at a minimum lifecycle cost. The

management of the existing assets will therefore be

planned in conjunction with augmentation to meet

demand growth.

Strategic Asset Management (SAM)

Infrastructure

Rand Water operates a network of 3 500 km of

pipelines, including two large combined pumping

and purification stations (situated at Vereeniging

and Zuikerbosch), four booster pumping stations

(Zwartkopjes, Palmiet, Mapleton and Eikenhof) and a

number of enclosed reservoirs. Two-thirds of the value

of this infrastructure, estimated to be worth R60-billion

at replacement value, is located within Rand Water’s

pipelines infrastructure.

Planning

After decades of expansion to meet the challenge of

infrastructural development and population growth,

Rand Water’s current infrastructure capacity is more than

adequate to meet its customers until 2012. This is, in

itself, remarkable considering that in 1965, Rand Water

was supplying just 1 000 Megalitres a day (Ml/d); that

demand is expected to increase four-fold to 4 000 Ml/d

by 2012.

Rand Water is now ensuring that it will be ready for

the demands of 2020 and beyond, by focusing on


Strategic Asset Management (continued)

infrastructure refurbishment and development.

The organisation works on a 20-year planning

horison, driven mainly by projections and the forecasts

of future water consumer needs. This involves extensive

research and the analysis of trends and usage patterns,

and through the engagement with various stakeholders

on their expectations.

Capital expenditure is provided for the development of

new infrastructure, and the refurbishing and upgrading

of existing infrastructure. Project approvals incorporate

numerous areas, including pipeline links to reservoirs,

pumping stations and purification works.

By maintaining and expanding its infrastructure, Rand

Water is thus securing and sustaining water supply with

regards to quality and quantity – the core of its business.

Rand Water plans to spend R 8 billion in the next five

years on the upgrading and refurbishing of its water

supply infrastructure. Of this, 70-percent is allocated

for augmentation schemes, with the remaining being

allocated for renovations and the upgrades of its existing

infrastructure.

Pipeline renovation

Less than 10-percent of Rand Water’s 3 500-km pipeline

network is constructed from concrete, the balance is

manufactured from steel. Over the next five years, Rand

Water will renovate or replace all its concrete pipelines

– about 200 km – with steel pipes where the condition

is not acceptable in terms of risk. Thereafter, an ongoing

repetitive condition assessment will be carried out with

the exercise repeated, as necessary. The latter are more

suitable than concrete, as steel pipelines tend to develop

leaks, rather than rupture. Concrete is more susceptible

to rupturing, and thus potentially causing damage to both

people and property.

A percentage of Rand Water’s pipelines is in the region

of 70 years in age, with the overall majority between

15 and 50 years old. A programme of refurbishment,

renovation and replacement is therefore critical.

With this in mind, in 2005, Rand Water commissioned

Rand Water Services (Pty) Ltd to conduct an aerial survey

of its pipeline network through the use of thermal remote

scanning technology. Thermal remote scanning detects

leaks in large diameter pipes, allowing for early repairs,

and a reduction in water loss.

June 10 Actual

June 11 Planned

June 12 Planned

June 13 Planned

June 14 Planned

June 15 Planned

1 800

1 2001 000

800600400200

0

R’m

illio

n

1 6001 400

Year Ending June

Capital Works Projects Including Moveable Assets (2009-2014)


During the aerial survey, digital seamless maps are

produced, and these are geographically modified

for use in provincial or local government Geographic

Information Systems (GIS). High-resolution infrared images

are produced together with a high definition video output

linked with Global Positioning System (GPS) information.

Specific Pipeline Renovation Projects

The phased reconditioning of the 1800 mm diameter O2

pipeline is an ongoing project since its commencement

in the previous financial year. The 32km long pipeline,

which runs from Alberton to Kempton Park, has taken

two years to re-condition, largely due to the length of the

pipeline and the need to avoid operational disruption,

particularly during peak demand periods. The project

involves inserting steel lining into five kilometres of the O2

pipeline, as well as the fixing and renovating of its joints

and valve chambers.

Implementation of pipeline from Bloemendal pumping station to Delmas

In October 2008, Rand Water, together with the

Department of Water and Environmental Affairs,

the Mpumalanga Department for Provincial and

Local Government, the Delmas Local Municipality

(now the Victor Khanye Local Municipality) entered

into an agreement on this 34km project. In terms of

the agreement, Rand Water was appointed as the

implementing agent, to construct a 500mm diameter

water pipeline from its Bloemendal pumping station to

the Municipality. Rand Water will continue to operate

and maintain the water pipeline after its construction.

The Environmental Impact Assessment (EIA), servitudes

processes and the design are currently underway. It is

anticipated that this project will be commissioned in

November 2012.

Western Highveld Region

Rand Water was appointed as the implementing agent

for the Mpumalanga Western Highveld Region by

Department of Water and Environmental Affairs. Rand

Water’s engagement is for the management, operation

and maintenance of the water supply services in the

southern part of the Western Highveld Water Supply

Scheme. This also includes the Kungwini bulk water

supply services in the Bronkhorstspruit, Ekangala and

Ekandustria areas.

Rand Water’s involvement with the short term support

intervention has positively impacted the following

aspects of bulk potable water services provision:

• Water quality

• Water supply management

• Equitable distribution to cross-border communities

The Department of Water and Environmental Affairs

has extended the appointment of Rand Water, with the

additional responsibility of providing services to the entire

Western Highveld Region.

Capital Works and Capital Projects

During the year under review, Rand Water’s actual

capital expenditure in the augmentation and

rehabilitation of infrastructure and assets amounted

to R934.7 million. Of this, R887.6 million was for

infrastructure under Independent Capital Projects; and

R46.3 million for moveable assets and R0.8 million

for land and rights. The overall expenditure was R934.7

million against an overall budget of R1 000 million,

equaling 93-percent of the capital expenditure.



The value of approved work to 30 June 2010 under the

Independent Capital Projects budget amounted to

R5 585 million of which the outstanding value of

approved work in progress amounts to R1 897 million.

The work includes numerous projects necessary to ensure

that Rand Water is able to meet the needs of its consumers

throughout its area of supply in the most efficient and cost

effective manner. Overall, these projects range in value

from R200 000 to over R600 million.

Major Capital Projects

Expenditure was spent on more than 300 projects during

the year under review. However, the top five projects

accounted for more than one third of total capital

expenditure. These five projects involve augmentation,

upgrading and extension of pipeline routes, emphasising

the importance and value of pipelines, as a proportion of

Rand Water’s total infrastructure.

Brakfontein to Hartbeespoort Dam Scheme

This project will initially strengthen the supply to Diepsloot

and environs. Subsequent stages will include supply for

Mnandi and other growth areas between Midrand and

Pretoria, and it will also extend the regional bulk supply

to areas around the Hartbeespoort Dam.

Installation of the first portions of the scheme (H33, H34

pipelines) is complete, and it is already assisting with

supply to the Diepsloot supply zone for Johannesburg

Water. The system extension along a new route towards

Hartbeespoort Dam (H35 pipeline) is currently in progress.

Vlakfontein Reservoir to Mamelodi pipeline augmentation

This project strengthens an existing route, supplying

under gravity from Vlakfontein Reservoir, north of Benoni,

through to eastern and central areas of the Tshwane

Metropolitan Municipality. In addition to growth in

existing areas of supply, the pipeline supports supply to

an extended area of service, including the Mpumalanga

Western Highveld Region.

The installation of the first leg, a 1500 mm diameter

pipeline from the Vlakfontein Reservoir to the Rietvlei

Nature Reserve, south-east of Pretoria, is in progress.

This leg supplies growth along the route, and terminates

at the point of supply to the major Garsfontein Reservoir

zone at the Tshwane Metropolitan Municipality.

The extension to the Mamelodi termination is at present

in the planning phase, and will be informed by growth

in demand from areas in the east of Tshwane, as well

as in the expanded area of service.

BG3 raw water pipeline augmentation

This 3500 mm diameter pipeline increases the capacity

of the system supplying raw water under gravity from the

Below is a table outlining the full scheme:

Pipeline Section Length Diameter Pipeline Id

Brakfontein Reservoir to the Pretoriusrand Reservoir Site

8 km 1400 mm H34

Pretoriusrand Reservoir Site to Mnandi Reservoir H35 Pipeline

3 km 1000 mm H35

Mnandi Reservoir to H35 Pipeline (near Pelindaba)

17 km 1000 mm H35

H36 Pipeline to Hartebeespoort Dam

19km 800/600 mm H36

Pretoriusrand to Diepsloot Reservoir

6 km 600 mm H33

Table 1: Rand Water Capital Expenditure at 30 June 2010

Budget Category Budget Actual Expenditure Variance Actual against Budget

R R R %

Independent Capital Projects 938,594,762 887,632,202 (50,962,560) 95%

Supplementary Budgets: Moveable Assets 59,286,419 46,324,460 (12,961,959) 78%

Land and Rights 2,118,819 773,297 (1,345,522) 36%

TOTAL 1,000,000,000 934,729,959 (65,270,041) 93%


Vaal Dam to the Zuikerbosch Purification and Pumping

Station. The pipeline runs parallel to Rand Water’s

existing 3500 mm diameter BG2 pipeline. Fabrication

of the new pipeline has commenced, and installation is

scheduled for completion by 2012.

The new pipeline will be laid between the BG2 and

the Vaal River. A large portion of the excavation is in

rock, which requires blasting, close to the existing line.

Sections of the line are also close to the river bank,

which will necessitate continuous pumping to remove

water from the trench. Installing such a large pipeline

under these conditions will be a huge engineering feat,

and careful planning, monitoring and control will be

needed.

H14 Lyttelton to Rosslyn pipeline: partial deviation and augmentation

A portion of Rand Water’s pipeline network runs over

dolomite ground conditions, which can affect the

infrastructure mainly due to the formation of sink holes.

In a worst case scnario, such as that which occurs along

the eastern portion of the H14 pipeline, sink hole activity

can force the relocation of affected pipelines.

The H14 pipeline is part of a system that supplies

municipal reservoirs in central Pretoria. The eastern

portion of the line is being re-routed and increased in

capacity. It will run closer to the municipal reservoirs,

allowing portions of the municipal pipework, also

affected by the dolomitic activity, to be de-commissioned.

Upgrade of N7, N8 pipelines from Secunda to Bethal

This eastward leg of Rand Water’s infrastructure runs into

Mpumalanga Province. The portion from Secunda to the

termination at Bethal was acquired from the municipality,

and contains small diameter asbestos cement pipes.

These are being replaced with steel pipes to increase

capacity and improve reliability.

An interesting feature is that much of the pipeline

is recovered from elsewhere in the network, having

become too small for the current need. This occurs

when the pipeline is still in an acceptable condition;

it is then refurbished and can be used in a relatively low

capacity part of the network, at a substantial savings in

comparison to the purchase of a new pipeline.

Weltevredenpark 100Ml Reservoir – northwest of Johannesburg

This R130 million project is underway and is expected

to be complete during the 2009/10 financial year.

The construction of the reservoir, inlet structure and site

pipework is complete, waterproofing, sterilisation and

testing are to follow. Commissioning and handing over

is expected during 2010.

Installation of Cathodic Protection System on the Rand Water pipeline network

The Rand Water pipeline network is exposed to corrosion

from stray water current sources, corrosive soils, and

microbiological corrosion, this can result in metal loss and

potentially threaten the integrity of the pipeline network.

It is therefore necessary that corrosion mitigation

measures be in place for the prevention of corrosion.

The implementation of Carthodic Protection (CP) System

is per the geographical regions of the pipeline network

and the pumping stations. Cathodic Protection and

Corrosive surveys have been completed throughout

the entire Rand Water pipeline network as well as the

pumping stations. The Installation of CP at Zwartkopjes,

Zuikerbosch and Vereeniging and in the regions is in

progress, and the anticipated completion date for the

entire Rand Water network is scheduled for 2014.



Online Labs at various sites

The purpose of Rand Water’s Online Laboratory project

is to implement the 20 new laboratories that will provide

real time, reliable and accurate information with regards

to the various water quality parameters at Rand Water’s

purification and primary booster sites. Such information is

to be used by Rand Water’s operational staff to monitor

and control the various chemical dosing processes, and

to ensure that a high level of water quality is maintained.

The total cost of the project is projected at approximately

R110 million.

Hydro-electric power generation

Following requests by Eskom for proposals, Rand Water

has undertaken a detailed study of the potential for

generating power at four sites within its bulk supply

network. The results of this study were presented in

2009, and a decision was taken at that time to defer the

proposal. The study concluded that capital expenditure of

R400 million would be required to utilise the generating

potential of these sites. It was indicated that the project

would be financially positive over time, using the tariff

scale proposed by Eskom.

An amount of R400 million has now been included in

Rand Water’s five year investment forecast, beginning

in 2011/12, to allow for the finalisation of institutional

methodology and agreements with Eskom and other

relevant parties.

Pipeline Research and Development

Rand Water’s pipeline research and development

focus is in three main areas, i.e. the development of

Intellectual Property (IP) guidelines and policies; the co-

ordination of internal and external research work; and

the development and application of new processes and

materials for pipelines. Pipelines thus account for the

major part of Rand Water’s capital budget expenditure.

Examples from each of these three areas are as follows;

• Rand Water requires a comprehensive intellectual

property policy and those agreements with third party

research and development providers are necessary.

A meeting was held between Rand Water Services

(Pty) Ltd and other stakeholders within Rand Water to

discuss the development, management, protection,

and commercialisation of all intellectual property that

resides in Rand Water. The mapping and assessing

of Rand Water’s intangible assets through a research

and development audit is necessary that will review

people, facilities and budgets.

• Research and development is undertaken by Rand

Water, as well as using external agencies including

universities, the Water Research Commission (WRC),

and suitably qualified consultants and contractors.

Rand Water also funds two Chairs of Water

Utilisation; one at the University of Johannesburg,

the other is based at the Tshwane University

of Technology. Rand Water continues to retain

on-going projects with both universities. Typical

pipeline related projects are those dealing with leaks,

friction factors, bio-films, detection of air pockets,

performance of epoxy and polyurethane linings,

in-line filters for bitumen particles etc. This work

is dependent upon suitable staff or students and

will need to be co-ordinated more effectively.

Rand Water requires an organisational home, and

custodian for technical research and development

and this is being considered in the thrust for growth,

operational integrity, and best-fit technology.

• The pipeline renovation programme is generating a

continuous need for research and development with

innovative methods of evaluating pipeline conditions,

and advanced techniques and materials are being

used to repair or replace the old pipelines. One

project which is funded by the Water Research

Commission (WRC) involves the use of grouted

polyethylene liners to seal leaks in old steel pipelines.

• The new 3.5m diameter Vaal Dam – Zoekfontein

pipeline has been designed using the findings from

the research work conducted at Brakfontein Reservoir

in 2001 for the proposed Clarens – Johannesburg

pipeline. It has thus been possible to reduce the wall

thickness of the pipeline from 11.5mm to 10mm,

resulting in a saving of about R10 million in steel

pipe supply.


During the year under review, Rand Water again

placed a high premium on the quality of its product and

provided water that met both the national drinking water

standards (SANS 241 – Table xxx) as well as the World

Health Organisation’s non organic drinking water quality

guidelines (Table yyy).

To ensure that it sustains its performance Rand Water

not only relies on compliance monitoring, but has

implemented an extensive integrated water quality

management plan which provides effective protection

throughout the entire water supply chain. This risk-based

system is able to pro-actively identify problems and

also employs pre-defined corrective protocols for those

determinants that are likely to have the highest probability

of failure.

To circumvent the problems intrinsic to ad-hoc samples,

Rand Water also has over 500 on-line monitoring

devices, installed at key points throughout the water

supply chain, each are capable of providing real time

water quality information required for the optimum

functioning of its water treatment systems, whilst allowing

for ongoing water quality verification.

Scientific Services

The deterioration of raw water resources has also

received attention, and on-line monitoring devices have

been installed at key points within the catchments from

which Rand Water derives its drinking water to provide

real time information. In order to remain abreast of

activities that may impact our source water quality,

Rand Water also participates in all the appropriate

catchment and national forums, and it lobbies for

its interest where water quality is compromised.

An informed customer base is important for Rand Water

and in this regard the www.reservoir.co.za website,

which provides a wealth of water quality related

information in respect of both drinking and source water

quality, is maintained for public information. The website

is used extensively by the public, research institutions,

consultants and water quality managers.

During the year under review, Rand Water continued to

maintain an impeccable reputation with regard to the

provision of high quality potable water.

Source Water Quality

Rand Water’s supply area, driven economically by the

Vaal River, generates 60-percent of South Africa’s Gross


Scientific Services (continued)

Domestic Product (GDP), which is equal to 10-percent

of the Continent’s GDP. The Vaal Dam is the hub of the

water supply in the Vaal River System. Rand Water, Sasol

(Sasolburg), Eskom and Mittal Steel, as well as downstream

users such as irrigators, Midvaal and Sedibeng Water, are

supplied or supported with water released from Vaal Dam

The quality of the region’s water resources was under

the spotlight during the year under review and received

extensive media attention. This was as a result of a

number of incidents and discoveries that prompted

concerns for the efficiency of water management

structures, and other interventions related to water

resources.

The decanting of acid mine drainage from various mines

in the Johannesburg area also received attention in the

media. The decanting of this water potentially poses

serious threats with respect to possible sinkhole formation

and the pollution of receiving streams.

An additional concern with respect to acid mine water,

is the increasing number of mining applications for new

coal mines to feed Eskom’s increased demand.

The majority of these mines are located within the upper

reaches of the Vaal River’s catchment, and can potentially

be harmful to Rand Water’s consumers if pollution levels

are not appropriately managed.

Sewage contamination remains a concern, and the level

of the problem was highlighted with the release of the

Department of Water Affairs’ “Green Drop” Report, with

only 7-percent of municipalities in South Africa achieving

the Green Drop status.

Climate Change

During the year under review, climate change was again

on the top of the international political agenda, and it

continues to make serious inroads in international trade

markets as well. It is obvious that business will have to

play a major role in the fight against climate change,

and Rand Water has decided to respond to remain

abreast with developments and proactively implement

measures to align itself with government’s position.

Department of Water and Environment Affairs

Rand Water (WaterServicesProvider)

Municipalities (WaterServicesAuthorities)

PurificationRaw Water Drinking Water

Water Quality Assurance

Source Water Quality (a) Production Water Quality (b) Bulk Distribution Water Quality (c) Retail Water Quality (d)

1. Water Quality Specialist Services* (consistsof4sectionsabove)

4. Process technology* (AppliedResearch/Consulting)

2. Analytical Services* (Biological&ChemicalSciences)

3. Divisional Support Services* (IT,HR,TechnologyTraining,Risk)

Scie

ntifi

c Se

rvic

esScientific Services

Bulk Water Treatment

(Production)Catchment & Water

Transfer Schemes

Retail Water

DistributionBulk Water Distribution

End Consum

ers

Figure 1: The Role of Rand Water’s Scientific Services Unit in the Water Supply Chain * Departments


Figure 1: The Role of Rand Water’s Scientific Services Unit in the Water Supply Chain * Departments

Table xxx: Bulk Distribution Water Quality supplied to Local Authorities – July 2009 to June 2010. Date generated: 28 June 2010

Parameter Units of measure

Specifications (based on SANS241: 2005)

No of resultsAchieved compliance levels

Required compliance

95% min to Class I 99% min to Class II Class I Class II

SPECIFICATIONS

Chemical and Physical properties

Colour (mg / l as Pt) < 20 ≤ 50 3928 99.9% 100.0%

Conductivity (mS / m) < 150 ≤ 370 8017 100.0% 100.0%

pH pH units) ≥ 5 to ≤ 9.5 ≥ 4 to ≤ 10 8017 100.0% 100.0%

Turbidity (NTU) < 1 ≤ 5 12128 99.1% 100.0%

Total Dissolved Solids (mg / l) < 1000 ≤ 2400 3907 100.0% 100.0%

Taste (FTN) < 5 ≤ 10 4007 100.0% 100.0%

Odour (TON) < 5 ≤ 10 4010 100.0% 100.0%

Organic Determinants

Total Trihalomethanes (μg / l) < 200 ≤ 300 4044 100.0% 100.0%

Phenols as C6H5OH (μg / l) < 10 ≤ 70 2014 100.0% 100.0%

Dissolved Organic Carbon (mg / l) < 10 ≤ 20 3935 100.0% 100.0%

Micro Elements

Antimony (μg / l as Sb) < 10 ≤ 50 1695 100.0% 100.0%

Arsenic (μg / l as As) < 10 ≤ 50 1953 100.0% 100.0%

Cadmium (μg / l as Cd) < 5 ≤ 10 3974 100.0% 100.0%

Chromium (Total) (μg / l as Cr) < 100 ≤ 500 3975 100.0% 100.0%

Cobalt (μg / l as Co) < 500 ≤ 1000 3975 100.0% 100.0%

Cyanide (Recoverable) (μg / l as CN) < 50 ≤ 70 3879 100.0% 100.0%

Lead (μg / l as Pb) < 20 ≤ 50 3956 100.0% 100.0%

Mercury (μg / l as Hg) < 1 ≤ 5 3108 100.0% 100.0%

Nickel (μg / l as Ni) < 150 ≤ 350 3972 100.0% 100.0%

Selenium (μg / l as Se) < 20 ≤ 50 1756 100.0% 100.0%

Vanadium (μg / l as V) < 200 ≤ 500 3974 100.0% 100.0%

Macro Elements & Miscellaneous Determinants

Aluminium (mg / l as Al) < 0.3 ≤ 0.5 3974 100.0% 100.0%

Ammonia (mg / l as N) < 1 ≤ 2 3932 100.0% 100.0%

Calcium (mg / l as Ca) < 150 ≤ 300 3975 100.0% 100.0%

Chloride (mg / l as Cl) < 200 ≤ 600 3932 100.0% 100.0%

Copper (mg / l as Cu) < 1 ≤ 2 3975 100.0% 100.0%

Fluoride (mg / l as F) < 1 ≤ 1.5 3932 100.0% 100.0%

Iron (mg / l as Fe) < 0.2 ≤ 2 3975 99.8% 100.0%

Magnesium (mg / l as Mg) < 70 ≤ 100 3975 100.0% 100.0%

Manganese (mg / l as Mn) < 0.1 ≤ 1 3975 100.0% 100.0%

Nitrate & Nitrite (mg / l as N) < 10 ≤ 20 3932 100.0% 100.0%

Potassium (mg / l as K ) < 50 ≤ 100 3974 100.0% 100.0%

Sodium (mg / l as Na) < 200 ≤ 400 3974 100.0% 100.0%

Sulphate (mg / l as SO4) < 400 ≤ 600 3932 100.0% 100.0%

Zinc ( mg / l as Zn) < 5 ≤ 10 3974 100.0% 100.0%

Microbiological

E. Coli (cfu per 100 ml)minimum of 95% of the original results shall be non-detected

minimum of 99% of the original and repeat/consecutive results shall be nondetected

12293 99.7% 99.7%

Other Determinants as required by supply contractFree chlorine and monochloramine (mg / l) ≥ 0.2 min 95% compliance 12295 94.8%

For monitoring/reporting purposes only (2)

Guideline Achieved compliance levels

95 % Min compliance 99 % Min compliance 95 % Min 99 % Min

MicrobiologicalStandard Plate Count (cfu per 1 ml) < 100 < 5000 12288 96.2% 99.9%Total Coliforms (cfu per 100 ml) Not detected < 10 12293 98.5% 99.8%Notes:(1) Specification date of effect : July 2006(2) Guideline derived from SANS 241: 2005 operations alert and industry practicesPerformance Index 99.27% 99.96%



Table yyy: Benchmarking of non-organic water quality determinants in the bulk distribution network to WHO standards – 2009/10

Parameter Unitsofmeasure WHOstandards Numberofsamples Compliancelevels(%)

PhysicalandOrganolepticproperties

Colour (mg / l as Pt) < 15 4110 99.0%

Turbidity (4) (NTU) < 0.1 12414 0.0%

Turbidity (2) (NTU) < 5 12414 99.5%

Total Dissolved Solids (mg / l) < 600 3904 100.0%

Hardness (mg / l as CaCO3) < 200 4222 98.8%

Radioactivity

Alpha (1) (bq / l) < 0.5 11 100.0%

Beta (1), (6) (bq / l) < 1 11 100.0%

Inorganic

Aluminium (mg / l as Al) < 0.1 4221 98.3%

Ammonia (mg / l as N) < 1.5 4104 100.0%

Antimony (μg / l as Sb) < 20 1788 100.0%

Arsenic (μg / l as As) < 10 2059 100.0%

Barium (mg / l as Ba) < 0.7 3962 100.0%

Boron (mg / l as B) < 0.5 4221 100.0%

Cadmium (μg / l as Cd) < 3 4221 99.9%

Chloride (mg / l as Cl) < 250 4071 100.0%

Monochloramines (mg / l) < 3 9937 100.0%

Free Chlorine {Contaminant effect} (2) (mg / l) < 0.6 12521 81.7%

Free Chlorine {Contaminant effect} (3) (mg / l) < 5 12521 100.0%

Chromium (Total) (μg / l as Cr) < 50 4222 100.0%

Copper (2) (mg / l as Cu) < 1 4222 100.0%

Copper (3) (mg / l as Cu) < 2 4222 100.0%

Cyanide (Recoverable) (μg / l as CN) < 70 3924 100.0%

Fluoride (mg / l as F) < 1.5 4071 100.0%

Iron (mg / l as Fe) < 0.3 4222 99.8%

Lead (μg / l as Pb) < 10 4201 99.2%

Manganese (2) (mg / l as Mn) < 0.1 4222 100.0%

Manganese (3) (mg / l as Mg) < 0.4 4222 100.0%

Mercury (7) (μg / l as Hg) < 6 3241 100.0%

Molybdenium (mg / l as Mo) < 0.07 4221 100.0%

Nickel (μg / l as Ni) < 70 4219 99.0%

Nitrate (mg / l as NO3 ) < 11.29 4128 100.0%

Nitrite (mg / l as NO2) < 0.91 4128 90.8%

Nitrate/Nitrite ratio (5) (mg / l as N) < 1 4071 90.3%

Selenium (μg / l as Se) < 10 1847 100.0%

Sodium (mg / l as Na) < 200 4221 100.0%

Sulphate (2) (mg / l as SO4) < 250 4071 100.0%

Sulphate (3) (mg / l as SO4) < 500 4071 100.0%

Uranium (ug/l as U) < 15 43 100.0%

Zinc (mg / l as Zn) < 3 4221 100.0%

Microbiological

Faecal Coliforms (cfu per 100 ml) 0 8426 98.8%

E. Coli (cfu per 100 ml) 0 12567 99.5%

Notes:(1) Analysed at the outlets of Purification works(2) Aesthetic effects(3) Health effects(4) For effective disinfection(5) [NO3 as N]/11.29 + [NO2 as N]/0.91(6) Beta radiation excluding radiation from potassium-40 = [measured beta radiation in bq/l] - {0.0276 x [potassium in mg/l]}


Table zzz: Water quality compliance in the Bulk Distribution network as measured by independent third party (CSIR)

– Customer Confidence Report.

Parameter Unitsofmeasure

Specifications(basedonSANS241:2005)Noofresults

AchievedcompliancelevelsRequiredcompliance

95%mintoClassI 99%mintoClassII ClassI ClassII

SPECIFICATIONS

ChemicalandPhysicalproperties

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%

OrganicDeterminants

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%

MicroElements

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%

MacroElements&MiscellaneousDeterminants

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(microbiologicalspecificationsdonothaveaclasscategorisationbutspecificpercentagecompliancerequirements)

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



South Africa’s commitment at Copenhagen

can be consolidated as follows:

Depending on the level of international financial

support to South Africa and a legally-binding agreement

at the United Nations Climate Change Conference

(The Conference is officially referred to as the 16th

session of the Conference of the Parties – COP 16),

such actions contemplate:

• 34 percent deviation below the “Business

as Usual” emissions growth trajectory by

2020; and,

• 42 percent deviation below this trajectory

by 2025.

Rand Water acknowledges the potential impact of

climate change on its operations, and has initiated

a programme to include climate change matters in all

spheres of its business planning.

As a result of South Africa’s sensitive water hydrology,

general aridity and high precipitation variability in space

and time, South Africa is especially vulnerable to climatic

change.

Rand Water is exposed to a number of risks, both in

terms of water supply and water quality, and will react to

this threat by preparing response strategies dealing with

these identified risks.

These risks include issues such as:

• Security of supply

• Extended maximum demand periods

• Algal blooms

• Waterborne diseases

• Infrastructure damages etc.

Rand Water is mindful that such preparedness is likely to

make the difference between a water-secure country and

poverty stricken, water-insecure country.

Catchment Management

Rand Water’s Source Water Quality Management staff

regularly engage with stakeholders at its Catchment Forums

to address water management issues. Water quality reports

are produced and discussed, highlighting both “hot spots”

as well as cumulative trends in water quality.

Rand Water also participates in the process of moving

towards the establishment of the Upper Vaal Catchment

Management Agency (CMA). Engagements also take

place at a higher level via the Vaal Barrage Catchment

Executive Committee (VBCEC) and various government

steering committees. During the year under review,

this process continued, even in the absence of the

establishment of the Upper Vaal CMA, as Rand Water

views the protection of its source waters as critical to its

ability to provide an uninterrupted supply of world class

potable water.

Eutrophication and the Vaal Barrage

The spillage of raw sewage continued in the Vaal

Barrage reservoir with high levels of nutrients and

faecal bacteria.

Fortunately, during the year under review, improvements

in the effluent levels from the waste water treatment plants

have already been observed. This can be ascribed to

Rand Water’s interventions; and the monitoring and

reporting of spills, combined with the “Green Drop”

assessments being executed by the Department of Water

Affairs. The fact that action is being taken is comforting,

and is an indication that awareness levels among

stakeholders remains high.

Monitoring

The rivers and dams in the catchments within Rand

Water’s area of supply are extensively monitored and

a great deal of effort goes into communicating the

water quality status of the catchments to consumers.

This takes place through involvement in catchment

forums. Rand Water assumes the role of water quality

auditor and facilitator in these forums, as it has the most

comprehensive database of chemical, biological, and

microbiological data.


As a result of the increasing water quality problems,

economic pressures and uncertainties surrounding

incidents such as fish kills; Rand Water has installed

a number of electronic monitoring units at selected

sites in the Vaal and Wilge Rivers, and the Vaal River

Barrage reservoir. These instruments measure water flow

at weirs as well as selected water quality variables.

The instruments are linked to data loggers equipped

with cell phone technology, through which the data is

sent to a central server. This real time information of the

determinants measured is available on line to staff in the

Water Quality Specialist Services Department at Rand

Water.

The equipment is also programmed to send warnings

via SMS to the relevant staff members’ cell phones when

certain water quality variables exceed specified limits.

This system will vastly improve response time to pollution

incidents, as well as significantly improve the information

base, which will contribute to a better understanding of

the dynamics of the Vaal River system.

The Vaal Dam Catchment Area

During the year under review, a number of water quality

issues have been identified with regard to the current

water quality in the Vaal River system. Some were related

to the entire length of the Vaal River, while others are of

a localised nature. An increase in salinity and related

macro-ions, has had the greatest impact on the usage of

water in the Vaal River.

The increase in Total Dissolved Solids (TDS) and

concomitant increase in constituents such as chloride

and sulphate has major implications on domestic,

industrial and agricultural water users. The occurrence

of microbiological pollutants as localised problems,

is also an emerging concern. This is likely an indicator

of sewage works not being properly operated, managed

and maintained.

Eutrophication is another key water quality problem in the

Vaal River System, and has resulted in algal blooms and

growth of water hyacinth. Impacts have also resulted in

economic implications for water users and large amounts

of expenditure required to control it.

Municipal wastewater effluent is the principal contributor

to the eutrophication and degradation of the Vaal River

aquatic system. It is also one of the impacts that are

most easy to mitigate because they are easily identified,

measured, and susceptible to control by policies and

regulations.

In the long-term, increased pressures are forecast as a

result of population expansion and development in the

Vaal River catchment, which in turn will increase pollution

levels. This will necessitate additional measures and

strategies to maintain acceptable pollution levels in the

Vaal River system. Through the continuous actions of the

catchment forums, Rand Water and other stakeholders,

these problematic areas have been highlighted and

are being addressed by the Department of Water

and Environmental Affairs, and the appropriate local

municipalities.

Serious attention should be given by municipalities

to upgrade their sewage infrastructure, minimise the

ingress of storm water into the sewer system during

high flow periods; and minimise operational spillages.

An improvement in the quality of the sewage effluent

will also contribute to the environmental sustainability

of the Vaal River ecosystem.

The Vaal Barrage Catchment Area

The Vaal Barrage catchment receives extensive volumes

of water from point-source discharges. The point-source


Table nnn: Recommended list of priority organic contaminants for analysis in the drinking water supply chain.

Organic Contaminant Classification Concern to the Drinking Water Industry

INDUSTRIAL CHEMICALS

Benzene Volatile organic compound chronic lymphatic leukaemia

Chlorobenzene Volatile organic compound Liver and kidney toxicity

1,2-Dichlorobenzene Volatile organic compound Liver and kidney toxicity

1,2,4-Trichlorobenzene Volatile organic compound Changes in adrenal glands

1,4-Dichlorobenzene Volatile organic compound cirrhosis of the liver

Benz [a] pyrene Polynuclear Aromatic Hydrocarbon Human carcinogenicity, potential EDC

Bisphenol A Plasticizer Endocrine disruption

Dibutylphthalate (DBP) Plasticizer Endocrine disruption

Di (2-ethylhexyl) phthalate Plasticizer Endocrine disruption

Ethylbenzene Volatile organic compound Taste and odour, health

Glycol esters Volatile organic compound Taste and odour

Octylphenol Surfactant Endocrine disruption

p-Nonylphenol Surfactant Endocrine disruption

Polychlorinated biphenyls [PCBs Chlorinated biphenyls Teratogenicity

Toluene Volatile organic compound Taste and odour

Xylene isomers Volatile organic compound Taste and odour

2,3,7,8-Tetrachlorodiphenyldioxin(TCDD Dioxin Endocrine disruption, Teratogenicity

Nitrilotriacetic acid (NTA) Detergent metabolite Potential human carcinogenicity, IARC

Di-2-(ethylhexyl) adipate (DEHA) Plasticizer Endocrine disruption

Dibutyltin (DBT) Organotin Reproductive toxicity

Dimethyltin (DMT) Organotin Reproductive toxicity

Tributyltin (TBT) Organotin Endocrine disruption

PESTICIDES

2,4-Dichlorophenoxyacetic acid Herbicide Internal Haemorrhage

Aldrin Organochlorine pesticide Liver & CNS toxicity

Atrazine S-triazine herbicide Endocrine disruption

Chloropyrifos Organochlorine pesticide Decreased plasma ChE

Cyhexatin Organotin pesticide Reproductive toxicity

DDT Organochlorine pesticide Endocrine disruption

DDE DDT metabolite Endocrine disruption

Dieldrin Organochlorine pesticide Endocrine disruption

Diquat Bipyridillium salt pesticide Liver & kidney toxicity

Endosulfan Organochlorine pesticide Human carcinogenicity, potential EDC

Endrin Organochlorine pesticide Liver problems

Heptachlor Organochlorine pesticide Liver and CNS damage

Heptachlor epoxide Organochlorine pesticide Liver toxicity

Lindane [γ-BHC] Organochlorine pesticide Liver and CNS damage

MCPA Phenoxy acetic acid herbicide Male reproductive toxicity

Methoxychlor Organochlorine pesticide Reproductive problems, potential EDC

Paraquat Bipyridillium salt pesticide Chronic pneumonitis

Simazine S-triazine Herbicide Endocrine disruption

Terbutylazine (TBA) S-triazine herbicide Reduced body weight

Vinclozolin Fungicide Endocrine disruption

Cis-Chlordane Metabolite of Chlordane Hepatic necrosis

Trans-Chlordane Metabolite of Chlordane Hepatic necrosis

β-Endosulfan Metabolite of Endosulfan Human carcinogenecity, potential EDC

Endosulfan sulphate Metabolite of endosulfan Endocrine disruption

Acetochlor Chloroacetamide,pesticide Salivation, decrease of sugar levels

Acetochlor ethane sulfonic acid Reaction product of Acetochlor More persistent and toxic than parent compound

Acetochlor oxanilic acid Reaction product of Acetochlor

Alachlor Chloroacetamide,pesticide Liver , kidneys problems

Alachlor ethane sulfonic acid Reaction product of Alachlor More persistent and toxic than parent compound

Alachlor ethane oxanilic acid Reaction product of Alachlor More persistent and toxic than parent compoundHexachlorocyclohexane isomers:

β-HCH, β-HCH, β-HCHMetabolites of HCH organochlorine pesticide Chronic pneumonitis

2-(2,4,5-TrichloroPhenoxy acetic, Silvex, Fernoprop Phenoxy acetic acid herbicide Hepatic and renal toxicity

2,4,5-T-(Trichlorophenoxyacetic acid) Phenoxyacetic acid herbicideReduced body weight, increased liver and kidney weight



(Table nnn: continued)

Organic Contaminant Classification Concern to the Drinking Water Industry

DISINFECTION BY-PRODUCTS

2-Chlorophenol Phenol Reproductive effects, T&O problems

2,4-Dichlorophenol Phenol Delayed sensitivity response, T&O problems

2,4,6-Trichlorophenol Phenol Mutagenicity in vivo, T&O problems

Pentachlorophenol Phenol Cancer, liver and kidney effects

Chloroform Disifection by-product Kidney and liver toxicity

Bromoform Disinfection by-product Kidney, bladder, renal effects

Bromodichloromethane Disifection by-product Renal cytomegaly, liver effects

Dibromochloromethane Disifection by-product Liver & kidney damage

Dichloroacetonitrile Disinfection by-product Developmental toxicity

Dibromoacetonitrile Disinfection by-product Reduced body weight

Trichloroacetonitrile Disinfection by-product Lachrymator, severe eye irritant

Monochloroacetic acid Disinfection by-product Genotoxicity, cytotoxicity

Dichloroacetic acid Disinfection by-product CNS damage, liver &kidney effects

Trichloroacetic acid Disinfection by-product Cytotoxicity

Bromoacetic acid Disinfection by-product Genotoxicity, Cytotoxicity

Bromochloroacetic acid Disinfection by-product Reproductive effects

Dibromoacetic acid Disinfection by-product Liver toxicity

Formaldehyde Disinfection by-product Irritant to nasal cavity

Trichloroacetaldehyde Intermediate product Harmful if inhaled

SYNTHETIC ORGANIC POLYMER RESIDUES

Acrylamide Water Treatment residue Nerve damage, benign tumours

Epichlorohydrin Water treatment residue Increased chronic cancer risk

Diallyldimethylammonium Chloride Water treatment residue Genotoxic

Dimethylamine Water treatment residue Tissue destruction

1,3-Dichloro-2-propanol Water treatment residue Moderately toxic

2,3-Dichloro-1-propanol Water treatment residue Not easily degraded

3-Chloro-1,2-propanediol Water treatment residue Carcinogenicity, male infertility

NATURAL AND SYNTHETIC HORMONES

17-Estradiol Hormone Endocrine disruption

Estriol Hormone Endocrine disruption

Estrone Hormone Endocrine disruption

17-Ethinylestradiol Hormone Endocrine disruption

Dietylstilbestrol (DES) Hormone Endocrine disruption

ALGAL TOXINS

Microcystin-(LR+YR+RR) Cyanotoxin Hepatotoxins (liver toxins)

Anatoxin-a Cyanotoxin Neurotoxin

Homoanatoxin-a Cyanotoxin Neurotoxin

Anatoxin-a(S) Cyanotoxin Neurotoxin

Saxitoxins Cyanotoxin Paralytic Shellfish poisoning

Cylindrospermopsin Cyanotoxin Liver toxicity

Nodularin Cyanotoxin Liver toxicity

T&O – Taste and odour EDC – Endocrine disrupting ChemicalCNS – Central Nervous System ChE – Cholinesterase Enzyme BHC – Benzene Hexachloride IARC – International Agency for Research on Cancer

discharges include the major wastewater treatment

works run by Johannesburg Water, the East Rand Water

Company (ERWAT) and Metsi-a-Lekoa as well as the

discharges from gold mines. There are also industrial

effluent discharges, the largest being from industries in

the Sasolburg and Vanderbijlpark areas. The discharge

volumes from the wastewater treatment plants are likely to

increase with time as the water requirements grow, and

the level of services are improved with the expansion of

water-borne sewerage systems in urban areas.

The two most important water quality issues to be

managed in the Vaal River Barrage catchment for the

majority of the sample points are biological (in the form



of faecal coliforms) and chemical (in the form of gold

mining and industrial impacts through manganese,

sodium and sulphate).

The more difficult issue of water quality management is

that of controlling the different sources of pollution. In this

regard, the biological impact of uncontrolled wastewater

run-off from informal settlements, burst pipes due to

maintenance constraints and the general lack of waste

management processes have seen a deterioration during

the year under review in biological water quality. This can,

and potentially will, lead to potential harmful effects on the

human populations who use the Vaal Barrage catchment

river systems for domestic and recreational uses.

With regards to the eutrophic status of the Vaal River

system, the Vaal River downstream of the Vaal Dam

is severely impacted, resulting in a degradation of

ecological integrity. It must be noted, that the Vaal

Barrage catchment is described as a serious “hotspot”

with the highest levels of pollution (bacteria, algae, heavy

metals, salts and nutrients) recorded throughout the entire

Vaal River system. During the year under review, the

pollution levels in the Klip River and Rietspruit catchments

of the Vaal Barrage catchment remained unacceptably

high, and the scale of nutrient inputs far exceeded the

capacity of the natural environment to assimilate the

waste discharged into these river systems.

Production Water Quality Assurance

Water Quality Specifications

Rand Water has adopted the SANS 241 drinking water

quality standard (95-percent compliance to Class I, and

97-percent compliance to Class II) as delivery specification

to its customers. In addition, the organisation has a more

comprehensive and more stringent internal production

specification, designed to provide Rand Water with a

buffer, so that it can deliver to its customers with certainty

on the SANS 241 specifications.

Water Quality measurement and Reporting

Rand Water has extensive measurement capacity

consisting of three ISO 9001 certified site laboratories,

more than 500 online instruments and an offsite

ISO 17025, as well as an ISO 43 accredited laboratory.

Extensive monitoring programs during the year under

review were documented and complied with. An online

instruments upgrade program was also initiated.

Water Quality Management System

Rand Water is committed to a documented systematic

risk-based water quality management system.

In line with this, a Water Quality Safety Plan (WQSP),

which is based on Hazard Analysis and Chemical

Control (HACC) and ISO 9001 principles, has

been documented.

A preliminary detailed water quality risk register has

also been established. An initiative to align different

site procedures with the WQSP has commenced.

An organisation wide multi-stakeholder water quality

management standing committee has remained functional

over the past five years.

Water Quality Benchmarking

During the year under review, Rand Water continued

to benchmark the quality of water supplied to local

authorities against the World Health Organisation

(WHO) drinking water quality guidelines. The assessment

for non organic parameters is presented on table yyy.

The results compared favourably with the WHO water

quality guidelines.


Water Quality in the Bulk Distribution Network

Water Quality Specifications

In the absence of a national specification for a particular

parameter or group of parameters, benchmarking

against the WHO Drinking Water Quality Guidelines

were adopted as the norm. The drinking water quality

delivered to Rand Water customers during the year

under review remained of excellent quality (Table xxx).

All physical, chemical and biological health related

parameters were complied with.

Water Quality Assurance Activities

Alignment of Site Procedures to the Requirements

of the Water Quality Safety Plan (WQSP)

Rand Water began an initiative to align its different site

procedures with the WQSP. Areas where procedures

were required were identified and aligned to those of

the WQSP. This will be an ongoing process to ensure

that water quality assurance activities are adhered to

throughout the entire bulk distribution network, and to

ensure that initiatives for public health protection via the

delivery of safe drinking water are implemented.

Determination of Water Quality Risks

It is necessary to determine those water quality risks

that can affect the integrity of the supply. During the year

under review, a Water Quality Risk Register for the bulk

distribution network was developed after interacting with

the relevant stakeholders within the Bulk Water Services

cluster. The Register, which is a Blue Drop requirement,

is updated on an ongoing basis.

External Verification of the Quality of Potable Water

Supplied by Rand Water to Local Authorities

To ensure confidence in the quality of the water supplied

by Rand Water, an independent water quality audit

was again conducted during the year under review.

The organisation subjected itself to an independent

system to assess water quality supplied to customers.

The Centre for Science, Information and Industrial

Research (CSIR)’s Analytical Services team was

contracted to render the service, and the result of the

exercise can be seen on Table zzz.

Routine Organics monitoring

Monitoring of organic parameters is subject to an

ongoing investigation as the measurement of these

parameters is complex, and limited analytical capacity

is available in South Africa. Table nnn contains some

compounds that have been assessed in the Rand Water

drinking water value chain. During the year under review,

none of these compounds were detected at levels that

are considered a danger to human health. A set of

water quality monographs for each of the organic

compounds or group of organic compounds was

produced. The water quality monographs are used

as an information and support tool.

Consumer Complaints

There were 12 consumer complaints that neccessitated

technical investigation during the year under review.

The majority of the complaints came from the Ekurhuleni

Metropolitan Municipality and the Midvaal Local

Municipality. All the consumer complaints were processed

successfully and reported to the relevant local authorities.

The service evaluations completed by the complaints

indicate that they were more than satisfied with the

action taken.

Interesting complaints

Complaint 1: Consumer complained that the water in the

company’s office building had a strong chemical smell.

Results of the water samples taken indicated the presence

of toluene in the water, an investigation revealed that

a strong glue (containing toluene) was used in the

manufacturing workshop, the water pipe supplying the

office building ran under the area were the old glue tins

were discarded. Changes were made to the plumbing,

and the results of follow up samples indicate that no

toluene was present in the water.



Complaint 2: Consumer complained that water coming

out of her tap was green. Investigations revealed the use

of low grade plumbing materials and the outside pipes

being exposed to direct sunlight. The results of the sample

taken indicated the presence of algae in the water.

The consumer was informed of the findings and advised

to upgrade the plumbing. She was satisfied with the

findings and the advice given.

Tap Analysis Programme

Rand Water’s Tap Analysis Programme has been

operational for 12 years. This voluntary programme,

monitors water quality with the end consumer. It currently

monitors 74 sample points, covering 12 municipal areas

that are supplied by Rand Water. The data collected

confirms the excellent water quality that is supplied to the

end consumer.

Water Quality Technical meetings are held bi-monthly,

between Rand Water’s Water Quality Specialist

Services department and municipalities within Rand

Water’s service area. During the year under review,

regular meetings were held with nine municipalities; the

Tshwane Metropolitan Municipality, Mogale City Local

Municipality, Govan Mbeki Local Municipality, Ekurhuleni

Metropolitan Municipality, Johannesburg Water, Emfuleni

Local Municipality, Midvaal Local Municipality, Ngwathe

Local Municipality and Westonaria Local Municipality.

These meetings were intended to establish relationships

with Rand Water’s stakeholders and share information

pertaining to water quality issues.

Analytical Services

To ensure the supply of world class water, Rand Water

has in-house laboratories to provide water quality

data. During the year under review, thousands of

water samples were taken throughout its water-chain.

These were analysed at Rand Water Analytical Services

to provide biological and chemical data, as per national

and international drinking water standards.

The focus was on four main disciplines in producing

water quality data, i.e. the Microbiological and Hydro-

biological specialties, and the Organic and Inorganic

specialties. The laboratories remain fully accredited by

SANAS (South African National Accreditation System)

demonstrating its compliance to international best

practices with regard to the production of laboratory

data.

Westonia Ekurhuleni Midvaal Emfuleni Tshwane Mogale Direct Consumer

Health 1 1 - 1 - - -

Chemical - - 2 - 1 1 -

WQ - - - - - - 1

Invertebrate - 1 - - - - -

Aesthetic - 2 1 - - - -

Num

ber o

f Com

plai

nts

2.5

2

1.5

1

0.5

0

Consumer Complaints 2009 – 2010


Furthermore, the laboratories participate in various

national and international proficiency testing schemes

when monitoring its performance against internationally

accepted analytical methodologies.

Among the priorities for the Microbiological laboratories

are the data requirements for indicator organisms

in potable water. In this respect, the microbiology

laboratories have introduced enhanced assays for the

detection of indicator organisms, thereby reducing

the turnaround time required to produce such data.

Scientists from Rand Water’s Microbiology Laboratory

have also entered into a collaborative project with other

stakeholders, including the University of Johannesburg in

developing a real time polymerase chain reaction (PCR)

assay for the detection of cholera in water. The intention

is to implement a PCR based assay to discriminate

between pathogenic and non-pathogenic cholera

organisms.

Hydro-biologists pay attention to aquatic toxicity,

algae and algal toxin monitoring, aquatic invertebrate

assessment and aquatic bio-monitoring. Scientists from

Rand Water’s Hydro-biology Laboratory have recently

concluded a joint study with the University of Pretoria and

the University of the Western Cape. This collaborative

effort studied endocrine disruptor compound activity and

immuno-toxicity in catchment water, as well as purified

water supplied by Rand Water. The team concluded that

from an estrogenic and immuno-toxic perspective, the

potable water produced at Rand Water poses no risk to

human health.

During the year under review, Rand Water’s Inorganic

Laboratory was re-equipped with an ICP-MS and a

graphite furnace atomic absorption spectrophotometer.

These technologies significantly enhance the capabilities

of the Inorganic laboratory with the detection of an

extensive range of metals at extremely low levels.

Scientists at the Organic Laboratory were pleased

with the arrival of a new gas chromatograph with

a revolutionary detector referred to as the ‘Time of

Flight’ detector. This instrument allows for the analysis

of water samples, it detects ultra low levels of organic

contaminants with simultaneous confirmation. The

Organic Laboratory has also recently commissioned its

newly acquired LC-MS-MS for the analysis of volatile

organic compounds.

Process Technology

The core objective of Rand Water’s Process Technology

Department is to optimise treatment processes at Rand

Water, in order to facilitate the production of the

best quality water at the lowest cost. This entails the

identification and implementation of the best available

technology, in combination with the most advantageous

treatment regime.

During the year under review, Process Technology

undertook a diverse range of projects relating to internal

process optimisation, and addressed a range of external

technical queries pertaining to water treatment and

quality. The latter reflected the general interest trends in

the water sector during the year, which mainly revolved

around the topical issue of water re-use. This included the

feasibility of mine water de-salination and the reclamation

of grey water.

As part of its mission to remain conversant with the best

available technology, the Department evaluated several

alternatives relating to conventional water treatment.

Some of the significant assessments included alternative

filter media, products for remediation of existing filter

media, biopolymers for both coagulation and disinfection

purposes, activated zeolite, portable chlorine generators

and several disinfectants.

Trends in the latter, included both chlorine and non-

chlorine based disinfectants, with a marked rise in the

promotion of metal based products such as stabilised

copper and silver solutions.


Key projects undertaken and focus areas during the

year under review;

• One of Process Technology’s core functions is to

verify the technical suitability of water treatment

chemicals for use at Rand Water. Comprehensive

evaluations undertaken on chemicals submitted

for tender purposes during the year under review,

included ammonium hydroxide, quicklime,

sodium hypochlorite, organic coagulants and

polyacrylamide.

• Carbon dioxide is a key requirement in Rand Water’s

preferred chemical treatment process. Process

Technology carried out an extensive characterisation

of power station flue-gas to assess its suitability as

a potential source of this critical constituent.

• Rand Water currently has a treatment plant for

recovered filter wash water, and an investigation into

treatment options for the remaining volumes of filter

wash water was undertaken. This project identified

cost effective recommendations for the treatment

and recovery of filter wash water at Rand Water’s

Zuikerbosch Purification and Pumping Station.

• Computational fluid dynamics (CFD) was utilised

to determine the flow dynamics in flat bottomed

sedimentation tanks in order to optimise their design.

These forms of investigation are vital to ensure that the

correct design criteria is used in the construction of

new water treatment infrastructure.

• Optimal choice of coagulants promotes cost saving,

reduces the mass of sludge produced, and results in

improved water quality. The Department evaluates

alternative coagulants on an ongoing basis in order

to optimise operations. Iron based salts have shown

potential in terms of cost reduction. During the year

under review, the Department conducted laboratory-

scale and limited full-scale evaluations of ferric

chloride as a potential coagulant in combination with

other chemicals.

• A method to increase the total filtration capacity

without the need for new infrastructure, is set to

increase the filtration rate without compromising

water quality. Investigations into the effects of such

increased filtration rates have commenced, with initial

results indicating potential for further comprehensive

investigation.

• Also related to filtration was the treatment of existing

filter sand, to remove mud balls and other deposits

to ensure optimum operation. Several physical and

chemical treatment methods were evaluated, and the

most appropriate were subjected to full scale trials.

• In light of the increasingly stringent requirements

concerning disinfectant residual at point of delivery,

the Department undertook an extensive investigation

into chlorine and monochloramine decay in the

distribution system. Emanating from this project

were several models which may be used to predict

disinfectant decay, and quantify appropriate initial

dosages to ensure compliance. These models also

aid in the identification of potential locations for

tertiary disinfection plants.

• The presence and impact of natural organic

matter (NOM) in raw water sources is steadily

gaining international interest. As an initial survey

of this important aspect, a preliminary investigation

quantified several NOM fractions in the source

water. Further investigations will be conducted into

the reaction of NOM throughout the existing water

treatment process.

Rand Water has one of the largest and most valuable

water quality databases in the country, which is


managed by its Information Management Department.

This Department provides system administration,

development and maintenance support, database

administration and statistical consultation services to

name but a few. Its main focus is on maintaining,

developing and optimising three specialist systems.

They are Labware Laboratory Information Management

System (LIMS), Quality Information Management Decision

Support System (QIMDSS) and Observator System for

weir and several other component data transmitted from

probes via GPRS deployed in a number of sites.

The section strives to integrate as many of the laboratory

instruments as possible into the LIM System. This creates

a seamless workplace where raw data is transferred

to a central repository from where it can be converted

into meaningful information, or be used to produce

comprehensive statistical reports for various management

structures within Rand Water. Laboratory personnel can

conduct research, perform calculations and produce

specific reports remotely via the network, while managers

can proactively review results and authorise findings.

The LIM System at Rand Water Analytical Services is

considered the benchmark for Labware LIMS installations

for the water sector in South Africa.

The Quality Information Management Decision Support

System facilitates the dynamic monitoring of river quality

and contributing pollutants in the catchment areas. Results

from sample points are shown both alphanumerically

and graphically on this system, allowing the comparison

of sample point results with various set criteria. In this

way, Information Management provides comprehensive

reporting on data, as well as extensive statistical analysis

to aid management in making meaningful decisions.

During the year under review, Rand Water’s Information

Management Department continued to develop and

report on Water Quality Statistics for Rand Water.

These reports include;

• Bulk Distribution Water Quality Compliance Reports

• Production Water Quality Compliance Reports

• Tap Water Quality Compliance Reports

• Local Authority Water Quality Compliance Reports

• Clean Water Reports

• Raw Water Quality Reports

These Reports are discussed monthly at the meetings

of the Potable Water Quality Working Committee,

and subsequently reported on at the PIC and Board

meetings. These statistical reports are core to Rand

Water’s continued commitment to monitor and comply

with both national and international water quality

specifications. Currently, a project is underway

to automate these Reports by leveraging business

intelligence.

Rand Water’s Water Technology Training Unit

Rand Water believes that every individual should be

offered the opportunity to improve themselves through

training, the Water Technology Training section focuses

on people development. This unit identifies skills gaps

within Rand Water’s Scientific Services Division. It focuses

on those skills which need to be met through technical

training, in order to ensure the continued sustainability of

the Division and organisation.

All training courses are outcomes-based and the content

is unit-standardised. This approach ensures alignment

with the competencies and qualifications as set out by the

National Qualifications Framework (NQF) and it is the

reason why these courses and modules are recognised

by the South African Qualifications Authority (SAQA).

The unit has been accredited by the Energy Sector

Education Training Authority (ESETA) as a proper training

centre. The training facility, which can accommodate

about 30 trainees, is state-of-the-art, and is equipped with

wireless technology and video conferencing facilities.

In line with the development and supply of a continuous

pipeline of skilled scientists, the Water Technology

Training unit is preparing for the second intake of

graduates who will be contracted into Rand Water’s

Scientific Services Division over two years. The first

graduate development program was initiated in 2009,

and currently a retention program is in place to retain

a percentage of graduates within the organisation.

This program is due to end in March 2011.


The Water Services Act No 108 of 1997 allows for Rand

Water to provide water services (including sanitation services)

to other water services institutions and authorities within its area

of supply. Therefore, the primary objective of Rand Water’s

Bulk Sanitation Division is to extend its services to water

service authorities and institutions both within, and beyond

Rand Water’s area of supply. Rand Water can in terms of a

Ministerial Directive, operate outside of its service area.

The services as outlined in the Water Services

Act No 108 of 1997 include; the assessment of

wastewater treatment plants and to provide site specific

recommendations for municipalities to ensure effluent

compliance to the Department of Water Affairs’ Green

Drop Certification. The provision of management;

capacity building; operation and maintenance; industrial

effluent monitoring programmes; refurbishment and

the processes involved in the upgrading of water and

wastewater treatment works and pumping stations.

Key Projects undertaken, and focus areas during the year under review included:

Emfuleni Local Municipality

Rand Water’s Bulk Sanitation department has signed a

Bulk Sanitation

five-year management contract with the Emfuleni

Local Municipality, effective 23 September 2009 to

September 2014.

The Contract commits Rand Water to the operation

and maintenance of the Municipality’s 52 pumping

stations, and its three wastewaters treatment plants;

as well as the capacity building and implementation

of its Industrial Effluent Monitoring Programme and

process upgrades.

To date, there has been an improvement in the effluent

quality of the Municipality’s wastewater treatment works

to above 85-percent compliance with the relevant

legislation. Rand Water has also implemented a bio-

monitoring programme on all three of the Municipality’s

sewage treatment works to monitor the impact of

effluent discharged into the Vaal River by these plants.

The Executive Mayor of Emfuleni Local Municipality,

Councillor SA Mshudulu in his State of Emfuleni

Local Municipality Address on 31 May 2010,

thanked Rand Water for the improvement of effluent

quality especially at Rietspruit Wastewater Treatment

Works:


Olifants River. Funded by the Department of Water Affairs,

the Programme involves the replacement of all the electrical

and mechanical equipment, civil structures, and bringing the

Works to their maximum operational potential.

The water pollution as a consequence of the inadequate

functioning of the Works, has necessitated that Rand Water

expedites the project by treating it as a priority with regards

to the following:

• The un-blocking and cleaning of the two blocked

collector sewers that should be bringing effluent to

the plant;

• The temporary neutralisation of acid mine water at

the holding ponds, while the reinstatement of the

plant is underway.

Thembisile Hani Local Municipality

Rand Water has been appointed by the Thembisile Hani

Local Municipality in Mpumalanga, on a five year contract

for the management, operation and capacity building at

its Tweefontein Waste Water Treatment Plant. The average

compliance of Tweefontein was at 83.3-percent. However,

since Rand Water began its operations, there has been

improvement on the percentage compliance of the plant to

84.4-percent in June 2010.

“I am pleased to inform residents of Emfuleni that

our vulnerable sewer treatment works, Rietspruit has

improved the quality of its effluent discharges into the

Vaal River to 87% consistently over the past three months.

This is proof that the upgrading, refurbishment and

modifications projects currently under way are beginning

to bear tangible fruit and bringing us closer to legislative

compliance. We thank our partners, the Department of

Water Affairs, Rand Water, …”

Rand Water has also recommended that the Municipality

upgrade its waste water treatment plant at Sebokeng,

proposing the design of a new phase to address the

hydraulic loading of the plant. Rand Water has commenced

with the design and the construction of a second clarifier, as

well as chlorine contact tanks at Emfuleni’s Rietspruit waste

water treatment plant. For these interventions, most notably

for the once problematic Rietspruit Waste Water Treatment

Plant, Rand Water has been commended by the ‘Save the

Vaal’ environmental action group for making a difference

in addressing the discharge of non-compliant effluent to the

Vaal River.

Brugspruit Water Pollution Control Works

During the year under review, Rand Water continued with

the commissioning and refurbishment of the Brugspruit

Water Control Works. The Works are located on the

Brugspruit, a tributary of the Klipspruit draining to the upper


4 unemployed Science-Engineering graduates from the

community were engaged for a year to be trained as

Process Controllers at the Works. While at Tweefontein,

the technical skills related to operations and optimisation of

wastewater treatment plant will be transferred so that the

graduates can also be assessed by Department of Water

Affairs to qualify as competent Process Controllers.

Moqhaka Local Municipality

During the year under review, the Moqhaka Local

Municipality in the Northern Free State, appointed Rand

Water as its service provider for the refurbishment of

mechanical equipment at its Kroonstad Waste Water

Treatment Plant.

The scope of work for the Moqhaka Local Municipality

consisted of the following:

• Reinstate missing mechanical equipment

• Refurbish and repair mechanical equipment

• Reinstate missing measuring appurtenances

• Calibration of flow meters

• Cleaning of settling tanks and digesters

• Re-commissioning of treatment process

This project is due for completion at the end of

September 2010.

Emalahleni Local Municipality

In March 2010, Rand Water was appointed by the

Emalahleni Local Municipality for the refurbishment of its

Klarinet 2 & 3, and its Bush Pumping Stations.

The Bush Pumping Station is due for completion and

handover to municipality in mid July 2010; with the Klarinet

2 & 3 Pumping Stations due for completion by end of

September 2010.

The Municipality also requested Rand Water to conduct

a condition assessment of its Witbank Purification Works.

This was done in May 2010, and was followed by

a report to address the current water quality problems

which continue at the Plant. Rand Water has submitted

a proposal to assist the Municipality with the operations

and maintenance of three other pumping stations.

Victor Khanye Local Municipality

Rand Water was appointed by the Victor Khanye Local

Municipality (formerly the Delmas Local Municipality)

in September 2009 on a monthly contract to manage,

operate and maintain, its two wastewater treatment works.

Positive impacts have already been observed most notably

with the levels of effluent compliance. Rand Water has

worked with the Municipality to secure funding from the

Department of Water Affairs for the treatment of its sludge

handling at the Works, which had in the past resulted

in the cross contamination of potable water with that of

wastewater.

Dipaleseng Local Municipality

In February 2010, Rand Water was appointed by

the Department of Water Affairs for the cleaning of

sludge which had been contaminating a reservoir in the

Dipaleseng Local Municipality in Mpumalanga.

Bulk Sanitation (continued)


Rand Water Environmental Management Services (EMS)

is responsible for three main areas of operation i.e., site

maintenance and landscaping, Water Wise gardening

and education, and Environmental authorisations and

reinstatements.

Environmental Authorisations and Reinstatement

In order for Rand Water to ensure its compliance with the

appropriate legislation, it is essential for various studies,

public participation processes and plans be undertaken

to allow for the necessary approvals to be granted

by authorities. During the year under review, internal

changes within Rand Water have resulted in restructuring,

such that, as of 2010/2011 financial year, all

environmental authorisations are now to be undertaken

via the EMS department.

With ever increasing urbanisation, the need for more

infrastructures to service the demand for water continues

to increase. The 3 300km of Rand Water pipeline

infrastructure in servitudes and related infrastructure

become even more prominent as open green belts.

These servitudes are vulnerable to the impact of storm

water, human and animal traffic, etc, making them

Environmental Management Services

susceptible to erosion and other negative environmental

aspects which can potentially damage pipelines. The

pipelines have become exposed as a result of soil

erosion, resulting in a reduced life span from the normal

65 years as rust thins the pipes. Pipe bursts in themselves,

can result in huge environmental damage on a large

scale, costing large amounts of money to rectify.

Environmental Authorisations (EA) are essential for a

variety of projects ranging from the maintenance of

existing pipelines to the construction of new, and the

demolishing of old infrastructure. These projects are

audited by Environmental Control Officers employed

by Rand Water, with external audits being conducted

by independent Environmental Assessment Practitioners.

Compliance is important to Rand Water, as non-

compliance can potentially affect the organisation

negatively in the form of fines, or the withholding of

further authorisations, and thereby preventing any further

development. During the year under review, the EMS

department has been involved in 66 of these projects.

Of the projects, 44 are in the process of obtaining

authorisation, while 16 projects are being monitored for

compliance. EMS has also been directly involved with


The various zone classifications include amongst others;

focal areas, embankments, veld grass, park lands and

sports fields.

The intention of the exercise was to create uniformity

of site maintenance and to ensure that the correct

horticultural equipment was allocated and used at the

identified areas. All the major Rand Water site entrances

were revamped and upgraded, with Water Wise

principles used as a design criteria in all the upgrades.

The entrance to the Rand Water Head Office received

special attention with the installation of a new water

feature and upgrades to the surrounding indigenous

landscape. Part of this site upgrade included the

installation of new information boards along walkways.

During the year under review, the University of South

Africa (UNISA) undertook a study and finalised the

first phase of identifying all listed Alien Invader Plants

at selected Rand Water sites. This information was

incorporated into site invader removal programs and

implemented with emphasis on Category I invaders.

At Zwartkopjes 1000m² of category I invaders were

removed, and 22 500m² of Category 2 invaders were

controlled to prevent spreading.

A second phase has been implemented to take this

programme to the other Rand Water sites to be able to

Environmental Management Services (continued)

10 rehabilitation projects with current authorisation.

In addition to the 66, an additional 15 other projects

have required water use licenses (WULA) in terms of

National Water Act 36 of 1998, and two projects

required Heritage permits in term of the National

Heritage Act. These are still in progress.

EMS monitors and rehabilitates erosion that occurs over,

and adjacent to pipelines. During the year under review,

investigations by the EMS Rehabilitation unit observed an

additional 16 eroded areas that required intervention.

This brings the total number of erosion incidents that

have been addressed and these still require rehabilitation

to 11. During the 2009/2010 year, the EMS

department conducted 20 erosion interventions on

pipelines and other infrastructure with a total footprint

of 28 927 m2 of rehabilitation.

Site Maintenance

During the year under review, EMS’s site mainte-

nance department maintained landscapes totaling

6 404 504 m². Rand Water’s main sites, i.e: Rietvlei,

Zuikerbosch, Central Depot, Vereeniging, Zwartkopjes

as well as Eikenhof, Palmiet and Mapleton were zoned

into various maintenance areas. The zone classification

used was standardised across all sites, according to set

criteria such as land use, maintenance frequencies, type

of horticultural equipment required and land gradient.

The Braam Fischer rehabilitation project: Before The Braam Fischer rehabilitation project: After


further comply with legislation. Another study currently

underway by UNISA, is investigating the various methods

of maintaining veld grass areas on sites that will reduce

maintenance costs and ensure reduced erosion whilst

maintaining biodiversity.

The EMS department also provides support to other

departments in Rand Water. This includes managing site

maintenance contracts on selected sanitation sites where

Rand Water is assisting local authorities.

The EMS nursery was also upgraded to accommodate

and assist the EMS Rehabilitation Teams with the storage

and protection of rescued plants to comply with EMPs.

A total of 1,106 plants of nine species were rescued

from these sites and these are being stored at the nursery

until the projects require them for rehabilitation.



conducted its Customer Value Management (CVM)

Survey to substantiate on its customer requirements, and

to ensure that it continues to remain within reach of its

strategic objectives of satisfying all its customers.

The below table is the CVM Survey overview of the

2009–10 financial year, and its comparison with the

previous two financial years.

Strategic Customer Partnerships

The Rand Water Forums

The Rand Water Forums (Water Sector Forum, Mining

Forum and the Industry and Direct Consumers Forum)

have undergone a review to align themselves with Rand

Water’s new corporate objectives. This provided a

platform for a new strategic direction for the forums and

its initiatives.

Summary of Customer Value Management Evaluations

Categories 2008% rating

2009% rating

2010% rating

Difference (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


A working group was established with the intention

of promoting the development and maintenance of

comprehensive strategies and plans for the forums.

Rand Water’s Customer Services Centre is one of the

organisation’s key points of contact. During the year

under review, the Centre has remained committed to

high levels of service delivery.

The following new systems were introduced to improve

customer service levels:

• The customer feedback email system – this is a

means of securing customer feedback on the

services provided by the Centre. On finalisation

of a customer’s request, an email is automatically

generated back to the customer to evaluate the level

of satisfaction.

• The Customer Relationship Management (CRM)

Offline Working system - enables Rand Water staff

members who are not office bound to be able

to work off line on the CRM system. The System

automatically updates when the staff member

reconnects to the network.

• The Majuda Voice Logger – the system was

introduced for an assessment of quality management

purposes and it strives to ensure consistency on good

quality customer interaction.

Summary of service level evaluations

2010

2009

2008

2007

0 20 40 60 80 100

899090.5

87

9390

9593

8990

8889

7477

7272

OverallRating Municipalities Mines Industries&DirectConsumers


Service level agreements

Each year Rand Water evaluates its Bulk Water Supply

Contract service level compliance, to ascertain how

compliant the organisation has been with regards to

the implementation of the agreed upon operational

standards with its customers. Although the mines and

industries contribute 7-percent of Rand Water revenue

as compared to the 93-percent contributed by the

municipalities, the mines and industries remain equally

important to Rand Water. During the year under review,

the municipalities’ service level ratings remained at

90-percent, the mines have decreased by 5-percent

and the industries and direct consumers have also

shown a decrease from 93-percent to 87-percent.

Strategic Customer Partnerships (continued)

2006

Pota

ble

wat

er s

ales

– (m

egal

itres

/day

)

Rand Water’s Five-Year Potable Water Sales Growth

3700

3500

3300

3200

3800

3400

3600

2007 2008 2009 2010

Perc

enta

ge g

row

th (y

ear-

on-y

ear)

7,0%

5,0%

3,0%

-1,0%

8,0%

1,0%

2,0%

4,0%

6,0%

Totalaveragedailysales(ml/day) %Growth

0,0%

6.82%

-0.52%

3.39%

3 434

3 649

3 773

-1.70%

3 710

-2,0%

3 668

Rand Water’s Bulk Water Sales % Distribution

MunicipalCustomers

MiningCustomers

Industrial/OtherCustomers

1.3%

5.59%

93.11%

Potable water sales

The potable water sales during the year under review

are 1.42-percent below that of the 2008/09 financial

year. This is attributed to the heavy rains experienced

within Rand Water’s area of supply, as well as the

various water demand management interventions made

by the different customer segments in response to the

national call to reduce non revenue water by 15-percent.

The consumption of water by mines has also decreased

by 2-percent in the past five years due to closure of certain

mining operations as well as the increasing useage of

grey water for production purposes by mining houses.

Municipalities consume the bulk of the potable water;

the amounts consumed by the mines continues to drop,

and the industry and direct consumer consumption levels

have remained stable.

-0,16%

2005–2006

2006–2007

2007–2008

2008–2009

2009–2010

4000

3500

3000

2500

2000

1500

1000

500

0

315

023

450

338

323

848

336

822

951

3454

207

48

3504

217

51

MunicipalCustomers

MiningCustomers


Potable Water Sales


Rand Water’s Corporate Communications Division is

responsible for internal and external communication.

During the year under review, the division has continued

to support the Board and the PIC, and has added

value in raising the profile of the organisation. This was

achieved by way of events, publications, conferences,

exhibitions, stakeholder engagement, and the content

management of the Rand Water website and intranet.

Corporate Communications also manages the

organisation’s relationship with local and international

media houses. It has provided support to other divisions

within Rand Water, by means of event management,

international liaison, national, provincial and local

government engagement, the provision of information

and corporate gifts for key stakeholders.

External communication

Rand Water received free media coverage with an

Advertising Value Equivalent (AVE) – the monetary value

attached to free media coverage, of R 13, 563 million

for both electronic and print media during the year under

review. During this period more than 500 news articles

were generated, of which 122 were published by media

Corporate Communications

organisations based internationally, in countries including

the United States, Ghana and the United Kingdom.

During the year under review, Rand Water’s website,

www.randwater.co.za was visited by 326 856 unique

visitors, with visitors to the site showing a keen interest

in data on water, infrastructure, sales and customer

service.

Internal liaison

Corporate Communications created several activities to

support internal communication at Rand Water during

the year under review. The events were specifically to

bring Rand Water staff together in accordance with

the organisation’s values; these included Heritage Day,

Women’s Day, World AIDS Day, National Fly the Flag

Day, Celebrations before the Opening of the 2010 FIFA

World Cup, etc.

As a way of enhancing internal communication, a highly

popular blog on the Rand Water intranet was established

with topical discussion topics recommended by staff.

Internal information sharing within the organisation was

made easy by means of a weekly electronic newsletter.

2005–2006

2006–2007

2007–2008

2008–2009

2009–2010

4000

3500

3000

2500

2000

1500

1000

500

0

315

023

450

338

323

848

336

822

951

3454

207

48

3504

217

51

MunicipalCustomers

MiningCustomers


Potable Water Sales


The newsletter communicates organisational information

with a solid human interest focus. This is apart from the

intranet and the bulk e-mail messages which are sent to

all staff as necessary.

International liaison

Corporate Communications provides strategic planning

and co-ordination services profiling the organisation

abroad, and also when Rand Water receives

international delegations. Rand Water has regular

professional engagements with counterpart organisations

across the globe. During the year under review, Rand

Water participated in sector-related events in Uganda,

Singapore and Sweden. Rand Water also hosted

delegates from Ethiopia, Nigeria, France and

Swaziland on business visits to its head office and

purification plants.

Stakeholder relations

Rand Water has supported the Department of Water

Affairs on numerous professional sector-related activities,

and during the year under review, it also co-operated

with the Parliamentary Portfolio Committee on Water

and Environmental Affairs. Rand Water has also initiated

numerous engagements with the Provincial Legislatures

in Gauteng, the North West, Mpumalanga and the

Free State, as well as local authorities within its area of

supply, and has followed these up with key networking

engagements for members of the Board and the PIC.

Corporate Communications has also continued to

use Rand Water’s Water Wise sub-brand as a means

of promoting water conservation messages with

communities within its area of supply.

These engagements often involve partnerships with its

local government partners, including the City of Tshwane,

Ekurhuleni Metropolitan Municipality, Mogale City

Local Municipality, Kungwini Local Municipality and the

Emfuleni Local Municipality.

During the year under review, Rand Water has supported

its Continental and South African water-sector partners on

many initiatives including the Second Africa Water Week

and the 2010 WISA Conference.

Corporate Communications (continued)


During the year under review, Rand Water achieved

a 98.8-percent availability of its core Information

Communication Technology infrastructure; and further

improvements are already in place to improve this to

99.9-percent within the next two years.

The server virtualisation and consolidation is already

in progress as part of a larger Green Information

Technology (IT) strategy for the organisation. Rand

Water’s current IT Governance Framework will be

replaced during the next financial year with a King

III compliant IT Governance Framework that will be

integrated into the corporate governance framework.

Information Communication Technology

Any risk to Rand Water due to IT failure and information

management was significantly reduced over the last

two years. The position of the IT related risk on Rand

Water’s Residual Risk Register has moved from 8 to 16.

This was principally due to improvements and additional

mitigation measures implemented during the financial

year, including, but not limited to, the implementation

of adequate network redundancy on the wide area

network using wireless technology; the improvement of

the integration between systems based on a middleware

mechanism; obtaining ISO 9001 certification for the

IT function; and an IT security review conducted by the

National Intelligence Agency.


Logistic Services

Rand Water’s Logistics Services Division comprises three

units, i.e. Environmental Management Services (EMS),

Facilities Management and Transport. The division

provides Rand Water with comprehensive logistics

services that are strategically aligned, cost effective, and

ensure compliance with environmental laws to enhance

Rand Water’s image, whilst at the same time increasing

the value of the organisation’s assets.

During the year under review, Logistics Services had a

number of highlights as mentioned below;

• Logistics Services took over the responsibility

for the daily maintenance of Rand Water’s staff

accommodation at the Zwartkopjes and Zuikerbosch

sites.

• The division also undertook numerous projects to

maximise space optimisation in the Rand Water

Head Office building without the expense of

constructing new building space. An additional

120 workstations were created in this exercise,

including a new Programme Management Office

(PMO) for the Strategic Human Capital portfolio.

The space optimisation project will continue into the

new financial year.

• An energy-saving Initiative was introduced where the

Building Maintenance unit and Protective Services

staff ensured that lights were switched off in offices

and boardrooms that were not occupied in the

building. In addition, the unit has, in conjunction with

Rand Water’s Chief Electrical Engineer, embarked

on a project to install a new Building Management

System that will support the efficient management

of energy. This project is due for completion in

December 2010.

• During the year under review, the Canteen at

Rand Water’s Head Office set itself a target of a

25-percent increase in the number of healthy meals

available on its menu. This initiative was set in place

to encourage Rand Water staff to make healthier

eating decisions with regards to their choice of

meals.

Transport Management

Transport is an important factor of production in the

Water Services Value Chain. Rand Water’s transport

management unit continued to render a solid supporting

role to the organisation.


Water Wise

Water Conservation

The Water Wise unit in Rand Water’s Environmental

Management Services department focuses on the

education of members of the public and the “green

industry” on a formal and informal basis. This is achieved

through various activities, such as research, displays,

exhibitions, development of educational material and

media articles. The target audience are adults who have

an interest in gardening or vegetable gardening; as well

irrigation suppliers, landscapers, greenkeepers, municipal

parks departments, etc.

Research Projects

During the year under review, the agreement was signed

with UNISA, and it allows for both organisations to

undertake selected environmental and Water Wise

research, continued to assist with research projects

in various fields. Among them was a research project

which was completed “The Water Wise Guide

to Golf Courses” (this can be downloaded at

www.randwater.co.za).

Projects that are either ongoing or close to completion,

include: Recycling grey water in nurseries, Guidelines

for safe use of grey water in gardens, Testing of three

basic grey water filtration systems for use in the gardens,

Suggested safe planting distances of trees from pipelines,

and Low water use plant list for Gauteng.

Displays, education material and projects

The Water Wise trophy was again sponsored for two

garden design shows, hosted by the Lifestyle Garden

Centre and at the Garden World Garden Centre. The

aim with both the shows is to inspire new landscapers

as well as the public, to incorporate more Water Wise

principles in their landscapes. A trophy for the best Water

Wise Landscape by a landscaper in South Africa was

awarded at the South African Green Industries Council

convention.

The South African Nursery Association’s marketing

campaign, Life is a Garden, again joined Rand Water

with a campaign which was supported by more than

50 Garden Centres. Demand for the material produced

in this campaign also came from beyond Rand Water’s

area of supply.


The Water Wise demonstration garden at the Delta

Environmental Centre in Johannesburg continued to

be maintained (attracting more than 15 000 visitors

during the year under review). A second demonstration

garden is in the planning phase and will be available

for viewing during 2011 at the Walter Sisulu Botanical

Garden in Roodepoort.

During the year under review, 8 educational z-folder

brochures were created, namely: Vegetable gardening,

Climate change, Lawn care, Mulch, Irrigation, and

Invasive Alien plants, Water Wise plant characteristics

and Capture the rain. A 32 page Vegetable Gardening

brochure was also produced.

International Award

During the year under review, Rand Water’s Water

Wise Education Team (WWET) won the “School

Information Programme” category of the International

Water Association (IWA) Marketing & Communications

Award for 2010, for the second time. The winning poster

depicted “The Water Wise Arena”, which is an inflatable

football activity that links the “Water Wise” message

to soccer and is used for educational workshops for

schools. The winners of the five categories will be judged

against each other and an overall winner of the IWA

Marketing & Communications Award is scheduled to

be announced at the “IWA – Project Innovation Awards

Banquet” in September 2010 at the IWA World Water

Congress in Montreal, Canada.

Delta Environmental Centre

Rand Water and the Delta Environmental Centre, north

of Johannesburg, have collaborated to form a successful

partnership, which aims to continuously facilitate and

develop new and stimulating educational workshops.

During the year under review, the following new

workshops were developed:

• An Acid Mine Drainage Workshop in collaboration

with Rand Uranium and the Federation for a

Sustainable Environment (FSE).

• A number of short Foundation Phase activities

to supplement the puppet show and roadshow

workshops, i.e. Water Wise Puzzles; the Manzi

Treasure Hunt; Sorting Water ‘Rights’ from Water

‘Wrongs’; ‘Fill in the missing words Buttons’; and

‘Learn the South African Flag and National Anthem’.

Water Wise (continued)


Water Wise displays and exhibitions

Place of event Type of event Number of visitors attracted to event Total cost of event (R) Return on Investment per

visitor

Garden World Garden Centre

Garden design exhibition 71 000 57 000 1.25

Clear Water Mall Gardening display 22 500 3 000 0.13

Lifestyle Garden Centre Garden design exhibition 100 000 21 000 0.21

Home makers expo Exhibition for home owners 47 594 36 180 0.76

Gardenex expo Exhibition for Gardeners 38 266 16 550 2.3

Total 279 360 133 730 0.47

Water Wise advertorials and media articles

No. of articles placed in the year.

MediaApproximate

monthly circulation

Water Wise message

4 SA Garden/SA Tuin 54 001 Articles on Water Wise gardening for gardeners

4The Gardener/

Die Tuinier50 558

2 Environmental Management 4 000 Technical Water Wise articles for the Green Industry

2 Landscape SA 4 000

4 Golf Course Managers 5 000 Technical Water Wise articles for the golf course industry

2 Compleat Golfer 25 112

1SA Besproeings Instituut

(Irrigation magazine) 5 000

Technical Water Wise article for irrigation farmers

1 Beeld 95 914 Various Water Wise messages for general public

2 Get-IT 30 000

1 Southern Chronicle 39 598

• A new Water Cycle Workshop for Foundation

and Intermediate Phase learners to assist learners

in understanding the processes of the natural

water cycle.

• A Water Conservation demonstration to enable

facilitators to present to a large number of learners at

one time. This demonstration takes the format of an

interactive and visually stimulating water audit and

demonstrates to learners how much water is wasted

in simple daily activities such as brushing teeth and

washing hands.

• A Water Hygiene and Sanitation Workshop to

address the issues of cleanliness in school bathrooms.

• An entertaining puppet show, as well as an

interactive drama that highlights the health problems

that arise from poor hygiene and sanitation practices

in schools which assists learners in developing ways

to encourage cleanliness and hygiene in schools was

developed.

Other highlights during the year under review:

• The Mazda Wildlife Fund continued their sponsorship

of a Mazda bakkie for use at Water Wise

workshops.

• The WWET facilitated a workshop for the second

year at Boksburg Lake and worked with schools

and local organisations to celebrate the increase in

awareness of pollution at the Boksburg Lake.


• The WWET worked closely with the Gauteng

Alliance and the Gauteng Department of Agriculture

and Rural Development (GDARD) in facilitating

weekend Land Care camps at the Suikerbosrand

Nature Reserve.

• Financial sponsorship was received from Digby Wells

Associates, and learners from Craighall Primary

School, which allowed the Delta WWET to hold a

wonderful year-end Christmas party complete with

presents, snacks and lunch for 180 children from the

Passionate Feeding Scheme in Kagiso.

• The team presented a very successful and enjoyable

educator workshop on Wetlands with educators from

the West Rand.

• The Acid Mine Drainage Workshops were initiated

together with the Ahmed Timol Secondary School

in Mogale City, whose Grade 11 and 12 learners

participated in the workshop during sessions from

January to July 2010.

• All four of the WWET’s adopted Eco-Schools were

awarded their Eco-Schools certificates.

• A group of first year nursing students returned to Delta

for their third year to attend the WWET Water-borne

Diseases and Sanitation Workshops, which ran from

February to May 2010.

“Examples of the wonderful feedback received”

“The show is excellent.”

“Extremely useful, relevant and clear. Thank you!”

“Friendly, good service, very informative.”

“Baie dankie, die kinders het dit baie geniet!”

“Very organised centre, absolutely awesome, very

impressed!”

“Dit was puik! Ongelooflik leersaam. Baie dankie!”

“Extremely relevant, well-facilitated course!”

“The Water Wise people made our kids so happy;

we would like them to come again!”

“The staff is so enthusiastic and energetic!

Very well done, keep it up guys.”

Rand Water Nature Centre

The Rand Water WWET at the Rand Water Nature

Centre conducted environmental workshops both at the

centre, and in communities;

• Sponsored learners from St Vincent School for the Deaf

to attend a workshop at Rand Water Nature Centre.

• During National Water Week 2010, activities were

conducted at Danielsrus and also at the Eco Schools



in Katlehong which include the Monde, Reahile and

Izubukho primary schools.

• In May 2010 the WWET conducted workshops at

Mogale City Local Municipality and a total of 2382

learners and 72 educators attended the workshops.

Highlights for the year include:

• The environmental programme which was a

partnership between Delta, GDARD, Rand Water

and Birdlife for Katlehong and Alexander schools

came to an end in October 2009. To finish the

project off the participating schools had to enter a

Green Project Competition. The winning schools

were announced at an Environmental Youth Seminar

which was held at Rand Water’s Head Office on

10 October 2009. Ten learners were elected from

the seminar by their peers to be members of the new

Gauteng Alliance Youth Forum.

• The Christmas for Kids function, which is an

initiative by the WWET and Rand Water’s Scientific

Services, was held at Rand Water’s Head Office on

14 December 2009. A total of 50 learners, who

are orphans from the Agape Legacy organisation,

received their gifts which were donated by Rand

Water staff and fun activities were facilitated by

the WWET.

• Environmental Management Services provided furniture

and a boardwalk at the Rand Water Nature Reserve

for the WWET to use during school workshops.

• Hartford College was awarded an Eco School’s

Green Flag. Hartford is an Eco School that is

supported by the WWET. Manzi, the Water Wise

mascot, had an opportunity to hand over the flag

to the school at the award ceremony, which was

sponsored by Rand Water.

• A new programme on medicinal plants has been

introduced at the Rand Water Nature Centre. The

learners will be learning more about the importance

of indigenous plants and their medicinal use and why

they must be conserved.

• In May 2010, Manzi, the Water Wise mascot,

was invited to be present at the Minister of Water

and Environmental Affairs’ Budget Vote Speech in

Parliament.

Vereeniging Purification Station

Some of the highlights at the centre include:

• Hosting their first birthday party for Grade 0 learners

at Cam Kidz nursery school in Vanderbijlpark on

28 July 2009.

• Running workshops and roadshows at Ozisweni

Science Centre in Secunda in celebration of National

Science Week from 3 to 7 August 2009.

• The Sci-Bono Discovery Centre in Johannesburg,

sponsored a group of FET learners in August to visit

the station as part of the national “Take a Girl Child to

Work” campaign.

• During August 2009, the WWET took part in Sasol

Techno X. The team not only ran workshops at the

Vereeniging Station, but also set up an exhibition

stand at the Boiketlong Centre in Sasolburg. 21 311

visitors passed through the gates of Sasol Techno X

and an average of 600 learners per day, took part in

the Water Wise exhibition and activities. In addition,

the Water wise exhibition won the Best Exhibition,

Business Category Award.

• During August 2009, the WWET held two

workshops sponsored by Eco-Access, in which one

group of learners was from the Ekurhuleni School for

the Deaf.

• In September 2009, the WWET facilitated Water

Wise Games and a Roadshow at the Johannesburg

Zoo in celebration of Arbor Day.

• From 12 to 16 October 2009, the WWET

facilitated workshops on Global Warming and

Climate Change, as well as an exhibition at Sci-Bono

Discovery Centre in celebration of Earth Sciences


Week. This was an event co-sponsored by Sci-Bono

and the University of South Africa.

• In October 2009, a Water Wise workshop was held

in Parys, Free State for the Voortrekkers on Wetlands.

At this workshop an extensive wetland programme

was held on an actual wetland.

• In February 2010, the WWET facilitated two

roadshows at orphanages in the Evaton and

Sebokeng areas.

• The WWET was invited to do a workshop at the

Pretoria Zoo at the Pan African Association of Zoos

and Aquaria (PAAZAAB), International Zookeepers

Symposium. Many new contacts were made and in

addition the WWET activities were voted the best at

the Symposium.

• March 2010 highlights included workshops held with

1500 learners at the Sci-Bono Discovery Centre in

celebration of Health Sciences Week.

• On 13 March a teacher workshop was held at

Emmasdal High School in Heidelberg and a letter of

appreciation was sent to the WWET by the Gauteng

Provincial Department of Education.

• On 17 & 19 March 2010 the WWET facilitated

the Water Wise Roadshow for Rand Water’s

Corporate Communications Division for 180 adults

in Carletonville and Khutsong in celebration of

National Water Week.

• Highlights during April 2010, included the

roadshows that were held at 12 schools in

Heidelberg as a joint project with the Sedibeng East

district of Gauteng Department of Education.

• Another highlight was an information session and

roadshow that was held at the Recreation club for

96 Vereeniging station employees.

• On 30 April the team assisted the Three Rivers

Rotary Club in Vereeniging with their Water Week

celebrations at Meyerton High School.

• In May 2010, two roadshows were held at the

Riverside Hotel on the Vaal River with employees from

the hotel as part of their ‘Going Green’ initiative.

The WWET will be working closely with the hotel on

future projects.

• The WWET also performed a roadshow for

employees and children at Columbus Steel in

Middelburg.

• During June 2010, the WWET held a workshop and

roadshow at the Johannesburg Zoo in celebration of

World Environment Day.

• The WWET, together with the Sedibeng Alliance for

Street Children brought a group of street children to

the Centre to learn about being Water Wise.

• Eureka Special Needs School also visited the Centre

in June 2010.


Table 1: The number of learners and educators that attended workshops, roadshows & exhibitions from July 2000 to June 2010.

July 2000 – June 2001

July 2001 – June 2002

July 2002 – June 2003

July 2003 – June 2004

July 2004 – June 2005

July 2005 – June 2006

July 2006 – June 2007

July 2007 – June 2008

July 2008 – June 2009

July 2009 – June 2010

No. of Workshops, Roadshows & Exhibitions

190 250 227 274 293 337 359 408 589 587

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


Jewish National Fund/Walter Sisulu Environmental Centre


supported the Jewish National Fund/Walter Sisulu

Environmental Centre in Mamelodi for Water Wise

workshops at the Centre. A new and successful water

wise programme for Grade 3 learners was developed.

Ten schools in Mamelodi, Tshwane participated in

a ‘Clean up Week’ with the emphasis on cleaning

waterways and keeping them clean. A ‘Poster

Competition’ was also held with these schools. During

National Water Week three schools from Atteridgeville,

and one school from Cullinan, attended a water

programme at the centre.

Score with Water Wise Education Material

During the year under review, the Water Wise Education

Team also worked with learners and educators by

producing materials and promotional items that spread the

Water Wise message. Some highlights include:

• Manzi’s Water Wise Mission (printed in the Spur

restaurant’s Totem Magazine)

• Make your Own Manzi (printed in the Spur

restaurant’s Totem Magazine)

• The Story of Tap Water (printed in the Envirokids

Magazine)

• Manzi’s 2010 Calendar

• Reprints of the Water Wise droplet, the Water Wise

Beat, and the Water Wise DVD.

• A Water Wise Banner for “Manzi’s Water Wise

Roadshow”

• The Witness newspaper in KwaZulu-Natal, requested

to use the artwork and text from the “Open the Door

to a Water Wise House” z-card for an article on the

WISA Conference during April 2010. Permission

was granted.

• In November 2009, Heinemann Publishers

requested permission to use the Water Wise Pledge

in the Heinemann textbook titled “Spot on Literacy

Grade 1” for South African schools.

• In November the Sultanate of Oman (Public Authority

for Electrical and Water) requested the “What does

it mean to be Water Wise?” brochure in Arabic.

• Members of the public requested for Water Wise

material to be made available in more of the official

languages; articles have since been translated into

Afrikaans, isiZulu and Sesotho, these will also be

published on the website.

• The Water Wise Brand Guidelines have been

updated and distributed to all divisions in Rand

Water who utilise the Water Wise brand.

• The Water Wise logo is presently being registered

as a trademark by Rand Water in a range of NICE

classifications.

Table 2: The quality of the education service as assessed

by educators.

Standard of Service measured by educators through the use of an Evaluation Form according to financial years:

Overall Service

July 2003 – June 2004 91.95%

July 2004 – June 2005 93.2%

July 2005 – June 2006 93.28%

July 2006 – June 2007 95.16%

July 2007 – June 2008 93.57%

July 2008 – June 2009 96.07%

July 2009 – June 2010 95.27%

�� Rand Water Annual Report 2009–2010

Strategic Human Capital

Organisational Development and Design

The Organisational Development and Design (ODD)

department is located within the Strategic Human

Capital Portfolio. The rationale for the introduction of this

component was to enable the implementation of the new

Strategy of Rand Water.

The following are some of the key objectives that ODD

has to enable the business with:

• Transformation and Change Management

• Organisation Design

• Culture Change

• Driving Business Efficiencies and Effectiveness

To enable the achievement of these key business

objectives, ODD has identified strategic initiatives

which will be delivered through a structured program

and in order of priority to the business through an

integrated delivery model in partnership with the Talent

Management department.

For this purpose, the Program Management Office was

established to create capacity in delivering on these

initiatives through the following workstreams:

• Business Case for Change (Business Modeling)

Rand Water faces many challenges - the level of

strategic alignment, business efficiency, and the

attraction and retention of critical skills to name

a few.

The focus of this work stream is to articulate the drivers

of stakeholder value in the business and to align the

various strategic activities across the business with the

business objectives. This will drive focus and the best

allocation of resources to ensure value creation, and

the best return on investment. To ensure a constant

focus on value creation, a single view of initiatives

will be created. In addition to this, measures will be

identified to track and monitor the performance of

strategic initiatives against these measures.


• Leadership Modeling

A leadership brand develops when leaders’

knowledge, skills and value focus employee behaviour

on the factors that target the issues that customers

care about. Good leaders build a brand in their

organisation and role model the brand through their

behaviour. To build the brand, Rand Water will be

developing a set of leadership behaviors that will

become the benchmark for leadership in Rand Water

and the enabler to achieving the vision and strategic

goals related to high performance and innovation.

This will be known as the Leadership Charter.

This will be developed through workshops with the

PIC and Senior Management and will be cascaded

down the levels of management through workshops to

develop and embed the leadership behaviours.

To build a culture of high performance, values

needed to be lived. Vision and values alignment

workshops are cascaded through all the levels of

the organisation. These workshops will be facilitated

by ‘Values Facilitators’. ‘Change Champions’ will

also be identified and developed. These individuals

will undertake continuous improvement projects to

further enable the organisation’s performance and

turnaround at all levels.

• Transformation and Change

Typically any ODD change will have a number

of consequences. In the short term, ODD changes

will result in a reduced organisational performance.

If ODD changes are aligned to strategy, operating

models and processes – they will in the medium to

long term, improve organisational performance.

Where this alignment is not established, the

impacts understood and managed – organisational

changes lead to reduction of performance at both

an individual and organisational level. There are

a number of dependencies to ensure performance

improvement, one of which is the key change

management considerations and activities such

as leadership alignment, strategic context and

expectation management to name but a few.

This work stream deals with the change management

and business impact requirements associated with the

alteration to any given organisational structure. The

main aim is to mitigate the major risk of reduction in

human and departmental performance – this needs to

be done via comprehensive impact identification and

management.

• Re-engineering

As Rand Water transforms to meet the new

directives associated with a change of strategy, the

organisation needs to align itself to deliver on the

new mandate. By implication, this will necessitate a

review and alteration to the way Rand Water is both

structured and the way it does things, i.e. Process.

To meet these new needs the ODD department is

embarking on enabling Rand Water’s Organisational

Redesign. This will involve activities that recommend

structural changes as well assist in managing the

implementation of these changes into the business.

Cognisance will have to be taken of the impact this

will have on, among other things, reporting lines,

specific staff members and their roles as well as

remuneration, labour implications and the like. These

impacts will then be managed via a comprehensive

impact and change management plan that will ensure

a smooth transition to those involved.

From a process perspective, what we do down

to an individual level needs to be reassessed and

continually interrogated to ensure that all activities are

aligned to our strategy as well as selected operating

models. To this end, the ODD department will

complete an analysis of existing business processes,

their level of efficiency as well as opportunity for

improvement. This will also include an investigation

into what each process aims to achieve, best

practice, measurable indices linked to success

and roles associated and responsible for each

step. The long term view is to refine key processes

and ensure their adoption into the business context

in a meaningful, beneficial and Rand Water

centric manner.


• Re-organisation of functions

During the year under review, an enterprise

wide exercise was embarked upon by the ODD

department to increase Rand Water’s agility and

responsiveness as well as enabling new operating

models across all portfolios. This exercise is currently

undergoing a consultation and approval process with

all stakeholders. Furthermore, to enable operational

efficiencies across the business, existing processes

are being streamlined with this exercise running into

the next financial year.

To manage the Rand Water Transformation journey,

a five year plan has been mapped out with key

projects in support of the Business Objectives. The

desired end state is to contribute to the Transformation

of the Rand Water business, which is compatible with

industry best practice.

Capacity Building

Rand Water’s focus has been on providing internal

opportunities for both internal employees and external

community. The key focus has been on centralising

Capacity Building initiatives to ensure integration with

Talent Management.

The organisation has focused on prioritising these

initiatives to ensure value add to business requirements

especially within the operations environment. Below is an

indication of all the initiatives that have been successfully

implemented.

Legislated Training

Legislation requires that Rand Water ensure that training

is conducted for employees undertaking specific activities

which include performing work or operating equipment

for business operations. It is for this reason that Rand

Water has Training Programmes that responded to

compliance with relevant legislation and associated

business needs. Legislated training was prioritised and

targets defined as per business needs.

The table below indicates completed legislated training

per occupational category for the year under review.

Targeted Courses

• SHERQ

• Lifting equipment

• Protective Services

• ISO related

• Incident investigation

• Procedure and observation

• Environmental awareness

• National Key Point

• Fire Fighting

• First Aid

• High Voltage Switching.

• Access to Motorised Areas

• Confined Spaces

2009/2010 Completed Training per Occupational Category.

Sum of headcount Gender Race

Female Female Total Male Male

TotalGrand Total

Occupational Category African Coloured Indian White African Coloured Indian White

Clerk 99 18 10 58 185 91 6 9 23 129 314Craft or related trade worker 33 33 145 10 5 104 264 297Elementary occupational worker 136 12 148 400 8 5 51 464 612Legislator, senior official or manager 173 9 31 30 243 381 10 42 169 602 845Plant or machine operator or assembler 31 31 211 2 48 261 292Professional 237 17 50 74 378 199 6 27 62 294 672Service or sales worker 121 5 2 128 334 2 8 244 472Technical 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 211Grand Total 1104 74 114 258 1550 2157 79 121 685 3042 4592

Strategic Human Capital (continued)


Target Audience

• Operators and Artisans

• Protective Services Personnel

• Supervisors

• Managers

SETA Funded Learning Projects

Rand Water created a culture of continuous personal

development among employees with potential. Capacity-

Building processes equipped individuals with the

understanding, skills, access to information, knowledge

and training to enable them to perform effectively.

Learning projects were aligned to institutional and legal

framework development making legal and regulatory

changes to enable organisations and agencies at all

levels in the sector, to enhance their capacities.

Rand Water fully complied, and is aligned with the

Energy Sector Education and Training Authority (ESETA)

requirements, which enabled delivery of the National

Skills Development Strategy through the following

initiatives:

• ABET

Rand Water embarked on providing learning

opportunities to internal employees and external

community through Sector Education and Training

Authority (SETA) funded programmes in order to support

the National Skills Development Strategy. Rand Water

have up-skilled and re-skilled on numeracy and literacy

skills to enable effective communication in the workplace.

• Learnerships

During the year under review, Rand Water embarked

on the Technical Disability Learnership programme in

the Electrical field at NQF Level 2 and targeted 50

candidates (25 external community members and 25

internal employees). The purpose of this programme was

to assist and enable managers in the Operations and

other technical areas to increase their intake of people

with disabilities upon completion of the programme with

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


the intention of re-absorbing them into targeted positions.

The duration of the programme was 12 months and the

envisaged completion date is April 2011.

• Management Advancement Programme (MAP)

The Management Advancement Programme is a part-time

course designed to assist managers whose experience

and prime activities have been in a functional area.

The objective was to give managers broad exposure

to the fundamental nature and process of management

and human behaviour within organisations. A total of

27 managers graduated successfully of which 26 were

from previously disadvantaged groups and 17 of them

were women.

• Performance Management System (PMS)

The PMS is an educational and change management

process that enables the alignment of strategic objectives

to the organisation, teams and individuals as a response

to enhancing organisational performance. It is aimed

at measuring performance at different levels to ensure

consistency in approach. The target audience was

managers in the M – Q bands. A total of 590 managers

were trained on the modules focusing on planning,

contracting, reviewing and rewarding performance.

The training programme was a success as it was

consistently evaluated and has received an average

rating of 8 (on a rating scale of 1-10).

Social Economic Performance

Transformation Milestones for Rand Water

Rand Water views Employment Equity as a strategic

priority, and is committed to ensuring implementation

of the Employment Equity Act (‘the Act’). Rand Water

has ensured that Employment Equity is aligned to the

organisation’s strategic objectives and is integrally

linked to the Talent Management and Capacity Building

strategy.

Rand Water’s Employment Equity Strategy is designed in

consultation with all relevant stakeholders, including the

representative trade unions. Although it is anticipated that

our Employment Equity Strategy will place emphasis on

advancing designated group employees, Rand Water

will strive to ensure that other deserving employees are

not unfairly denied access to growth and advancement

opportunities on a progressive and structured career

path. The approach to Employment Equity is governed

by principles of equity, affirmative action and equal

opportunity and fairness.

Designated group status has been used as a ‘tie-breaker’

in the recruitment process, to ensure that where two

suitably qualified job candidates are available, Rand

Water may prefer to appoint the employee from a

designated group, if that group is under-represented in

that position or occupational level.

Thus far, Rand Water has been successful in ensuring

that, in general, it strives to achieve the Employment

Equity targets as outlined in the Employment Equity

Plan. Whilst there are some challenges in achieving

these targets in areas like Engineering and Scientific

Services, efforts have been made by way of introducing

Learnerships (such as the Technical Disability Learnership).

Strides have been made in the employment of female

employees, in areas that were previously male

dominated. The organisation has also managed to report

successfully to the Department of Labour.



To ensure that employee’s value diversity in Rand Water a

Diversity Management pilot programme was introduced

to test what diversity issues people were facing. A “Train

the Trainer” programme was implemented as part of the

phase 2 of Diversity Management.

In order to ensure that maximum participation is derived

from all Rand Water Employees, a Consultation Strategy

has been developed as well as a Transformation Forum

document. This strategy ensures that all representatives

within the Employment Equity Forum are visible and are

known to all employees within the organisation.

Composition (%) of Blacks & Women Compared to the Gauteng Average

According to Statistics South Africa, the percentage of

Blacks (ACI) in Gauteng is 74-percent. All males (ACI

and white) comprise 51-percent and all females (ACI

and white) comprise 49-percent of the population.

Rand Water has always set its targets in line with

Gauteng Demographics, which is its largest area of

supply. With its new growth strategy, the organisation

is compelled to relook at this, and use the national

demographic as its benchmark.

Composition of Blacks and Women in Rand Water at M-Q Management (June 2010)

Level Hay Band Total Staff ACI Females

Executive Management Q 8 8 4

Senior Management P 47 34 13

Middle Management O 147 100 43

Junior Management N 211 156 86

Supervisory M 345 250 144

Staff Complement by Race and Gender at M-Q Management Bands.

Job Level African Coloured Indian White Total

M F M F M F M F

Executive Management (PIC) 4 3 0 1 0 0 0 0 8

Senior Management 12 7 1 2 8 2 11 1 44

Middle Management 52 24 3 2 13 6 36 11 147

Junior Management 74 57 6 1 8 10 37 18 211

Supervisory 117 94 12 8 10 9 62 33 345

TOTAL 755

The following are applicable definitions in this section:PDG – Previously Disadvantage Groups (ACI plus White Females)PDI – Previously Disadvantage IndividualsACI – Africans, Coloured and Indians Gender Equity – All FemalesPDW – Persons with Disability


The below tables however, still takes the demographics of

Gauteng as its main source.

Males Rand Water % Gauteng

African 1743 58.00% 73.80%

Coloured 47 1.56% 3.8%

Indian 51 1.69% 2.5%

White 308 10.24% 19.90%

TOTAL 2149

Females Rand Water % Gauteng

African 651 21.66% 36%

Coloured 34 1.13% 1.98%

Indian 40 1.33% 1.24%

White 131 4.35% 10.24%

TOTAL 856

Composition of Disability

Rand Water has made steady progress in improving

its employment of People with Disabilities (PWDs). The

below figures reflecta decrease from 114 to 111 PDW’s

of the total number of staff employed. However this will

increase as Rand Water is currently running a Technical

Disability Learnership for people with disabilities, which

may result in permanent appointment of some of these

learners, as they will be qualified in our technical

operational areas.

Categories June 2010

All PWDActual 111

Percentage 3.69%

Bursaries

• Children of Staff Bursaries

Rand Water provided 84 bursaries for tertiary studies

to children of staff. The availability of these bursaries

was viewed as a benefit of employment of the parent.

The bursary covered the cost of tuition, residential

accommodation and text books for the duration of

a first degree or diploma at a university of technology.

The bursaries were for children studying at recognised

tertiary institutions. The fields of study focused on

university of technology studies relevant to Rand

Water’s business operational requirements.

• Open Bursary Scheme

Rand Water provided 14 bursaries for tertiary studies

to external bursars. The aim of this scheme was

to address the scourge of scarce and critical skills

shortages in South Africa, while building a pool of

suitably qualified potential Rand Water employees.

The bursaries were awarded to persons from previously

disadvantaged backgrounds. The focus is on engineering

and scientific career paths that are relevant to Rand

Water’s operational requirements and where there was

a comparative scarcity of potential employees with

appropriate tertiary qualifications.

• Staff Study Assistance (Study Grant)

Rand Water provided 153 internal bursaries for

employees. The aim is to complement capacity building

initiatives to enhance individual performance, career

aspirations and performance management gaps.

This enables organisational performance by ensuring

that training and development is aligned to Rand

Water’s key business objectives.

Organisational Wellness Programme

A Wellness programme is a people management

system designed for early identification of employees

with problems and the motivation of these individuals to

receive assistance to resolve these problems.

An integrated wellness model was employed, which is a

strategic intervention aimed at producing individual and

organisational benefits by identifying and proactively

managing employees’ personal health and work related

concerns and challenges.

The Wellness Philosophy revolved around

“A Sense of Well-Being” and included 7 dimensions

of Wellness:

• Social

• Occupational and Mental

• Financial

• Physical

• Intellectual

• Medical



Targeted wellness services were provided as follows:

• Wellness Management

• Risk Management

• Demand Management

• Disease/Condition Management

• Disability Management

Projects during the year under review included:

• Wellness Week – September 2009.

• World Aids Day – December 2009.

• Leprosy Awareness – January 2010.

• A VCT campaign – February/March.

• Flu vaccinations – March 2010.

• Malaria Awareness – April.

• World No Tobacco Day – 31 May 2010.

• Men’s Sexual Health – June 2010.

Recruitment

Rand Water made 307 new appointments and

was committed to appointing employees in line with

Employment Equity targets by implementing a more

rigorous process that includes targeting EE candidates for

various positions both in the core and support functions of

the business.

The strategic decision to ensure that the organisation met

the Employment Equity targets was to encourage diversity

in the workplace. During the year under review the

following categories were appointed in the organisation:

• 85-percent Africans

• 4-percent Indians

• 3-percent Coloureds


Employee Relations

The Labour Relations climate remained stable with no

significant threat of turbulence during the year under

review. Rand Water’s workforce is highly unionised. In

2008/9, 86.5-percent of the organisation’s employees

belonged to a trade union. There was a slight increase

in the level of unionisation during the year under review

to 87.6– percent of employees. Rand Water has two

recognised trade unions, namely the South African

Municipal Workers Union (SAMWU) and the United

Association of South Africa (UASA).

The table below depicts membership levels of

trade union representation.

SAMWU UASA No Union Total %

SupportStaff 976 75.4% 207 16% 111 8.6% 1294 49.2%

OperationsandArtisans 333 65.6% 140 27.6% 35 6.9% 508 19.3%

Officials 409 49.3% 240 29% 180 21.7% 829 31.5%

TOTALS 1718 65.3% 578 22.3% 326 12.4% 2631 100%

Participation, Co-operation and Partnership

Since its inception in 1995, Rand Water’s Participation,

Co-operation and Partnership (PCP) structures and

processes have continued to foster a culture of trust,

creative solution-thinking and transparency, underpinned

by the organisational values of Caring, Equity,

Excellence, Integrity and Spirit of Partnership.

Rand Water recognises that these are important elements

needed to yield an effective collective relationship

between Management and the recognised trade unions

towards consensus-seeking on policy matters that affect

employees.

During the year under review, policies that have

been jointly re-developed and endorsed through the

participative structures include the Code of Ethics, Fraud

and Investigation policies and the Constitution of the

Stakeholders’ Forum.

The constitution of the Stakeholders’ Forum defines the

PCP intent and system and has been revised to include

the list of matters for consultation and information-sharing,

to ensure common understanding and an efficient and

stream-lined process.

During March 2010, trade union members and Rand

Water’s Employee Relations management visited various

large organised companies in Germany to benchmark

against their employee relations model. It is evident that

the German economy is further enriched by its adoption

of a participative, co-operative and non-adversarial

labour relations system. The knowledge learnt will

enhance Rand Water’s participative structures.

Ziyagezana Excellence Awards

Rand Water celebrated its seventh employee awards

event in November 2009. The awards programme

endeavours to engender a feeling of appreciation

and recognition to employees for their exceptional

contributions to their areas of work and the organisation.



Corporate Social Responsibility

Rand Water is conscious of the significance of its

involvement in the implementation of Corporate Social

Investment initiatives. The organisation implements

a two-pronged Corporate Social Responsibility (CSR)

programme that focuses on both water related and non-

water related initiatives.

Rand Water’s CSR initiatives during the year under

review were aimed at achieving the following objectives:

• Improving access to water and sanitation

• Water Conservation aimed at making water

affordable by reducing wastage and unnecessary

consumption

• Enhancing water security

• Provision of strategic support to the water sector

• Proactively and reactively protecting Rand Water

pipeline and servitude

Rand Water adopts a partnership approach when

implementing projects. Generally, water related projects

are implemented on a cost recovery basis; and during

the year under review, the total net value of the project

implemented on a cost recovery basis, in partnership

with other government departments amounted to

R 28 977 753.00.

Water Related Programmes

• Socio-Economic development projects

Rand Water’s CSR projects aim to, among others,

stimulate local economies through the work that is

performed by local communities themselves and their

relevant structures. Through adopting labour intensive

methodologies, sourcing the bulk of the material from

local suppliers, training and recruiting local labour; the

projects to provide for both job creation and income

generation.

Employee Relations

The Labour Relations climate remained stable with no

significant threat of turbulence during the year under

review. Rand Water’s workforce is highly unionised. In

2008/9, 86.5-percent of the organisation’s employees

belonged to a trade union. There was a slight increase

in the level of unionisation during the year under review

to 87.6– percent of employees. Rand Water has two

recognised trade unions, namely the South African

Municipal Workers Union (SAMWU) and the United

Association of South Africa (UASA).

The table below depicts membership levels of

trade union representation.

SAMWU UASA No Union Total %

SupportStaff 976 75.4% 207 16% 111 8.6% 1294 49.2%

OperationsandArtisans 333 65.6% 140 27.6% 35 6.9% 508 19.3%

Officials 409 49.3% 240 29% 180 21.7% 829 31.5%

TOTALS 1718 65.3% 578 22.3% 326 12.4% 2631 100%

Participation, Co-operation and Partnership

Since its inception in 1995, Rand Water’s Participation,

Co-operation and Partnership (PCP) structures and

processes have continued to foster a culture of trust,

creative solution-thinking and transparency, underpinned

by the organisational values of Caring, Equity,

Excellence, Integrity and Spirit of Partnership.

Rand Water recognises that these are important elements

needed to yield an effective collective relationship

between Management and the recognised trade unions

towards consensus-seeking on policy matters that affect

employees.

During the year under review, policies that have

been jointly re-developed and endorsed through the

participative structures include the Code of Ethics, Fraud

and Investigation policies and the Constitution of the

Stakeholders’ Forum.

The constitution of the Stakeholders’ Forum defines the

PCP intent and system and has been revised to include


The following projects contributed significantly to the

economic development of the areas where they were

implemented:

Access to water and sanitation: Winterveldt Community Sanitation Project

Rand Water has a proven track record in improving the

quality of life of the communities with its involvement in

sanitation projects through partnerships, most notably with

the City of Tshwane Metropolitan Municipality. During the

year under review, a R 17 million project in the

Metropolitan Municipality was implemented in

partnership with the Winterveldt community. Rand Water

contributed R 7.5 million toward the project, which was

aimed at, among others:

• Promoting correct hygiene behavioural practices.

• Improving sanitation facilities through the construction

of Urine Diversion System (UDS) and the ventilated pit

latrine (VIP) toilets.

• Developing an enabling environment by skills training

in which facilities are maintained and improved.

• Assisting in the reduction of the number of service

delivery backlogs.

• Contributing to the achievement of the Millennium

Development Goals.

A total of 900 UDS toilets were constructed and more

than 2000 households were exposed to health and

hygiene awareness training. The project has created

direct employment opportunities for 130 members of

the community (48-percent were women). Furthermore,

the utilisation of local suppliers ensured that the greater

portion of budget (90-percent) was invested with the

Winterveldt community.

Water Conservation – Invasive alien plants eradication projects

Alien (non-indigenous) plants are a proven threat to water

security since they deplete the water table of hundreds

of litres of water per day. Investments in projects of this

nature are of fundamental importance to ensure that

there are enough water resources available for future

generations. During the year under review, Rand Water

entered into partnerships with Gauteng Department

of Rural Development (GDARD) to implement alien

plant removal projects in Elandsfontein and in the

Mogale City Local Municipality. Rand Water also

invested R 2 million in projects to improve water security

through the eradication of invasive plants in Kestel and

Bethlehem in the eastern Free State.

The intention of these projects is to bring those invasive

species such as blue gums, poplar and wattle trees

under control in a manner that will contribute to the

conservation of the natural resources.

Alien plant removal projects have created combined

employment opportunities for 149 individuals in the

Gauteng and Free State provinces. The majority of which

(60-percent) were women. Initial clearing work included

the removal of 931 hectares of alien plants. Workers

also underwent a series of training courses on these

projects. In the Free State, four individuals were trained

and used as contractors as part of Rand Water initiatives

toward the development of SMMEs.

Corporate Social Responsibility (continued)


Servitude Management: Encroachment projects

As a result of the increased migration to urban areas

and the establishment of informal areas, Rand Water

is compelled to ensure that its water pipelines and

servitudes are not being encroached in a manner that

that could compromise accessibility for maintenance

purposes. Currently, a large percentage of the Rand

Water pipeline network is either being encroached, or is

facing a risk of being encroached, as people continue

to look for open space for the establishment of informal

settlements.

Encroachments have the following associated risks;

• Potential danger to people in cases of pipe burst;

• Unauthorised connections to Rand Water’s bulk water

pipelines to get access to drinking water

• Safety risks to Rand Water’s staff patrolling and/or

servicing the pipeline

• Maintenance access to infrastructure is compromised

Rand Water invested R 2 million during the year under

review on encroachment management.

Utilising community engagement opportunities, Rand

Water was able to achieve the following deliverables;

• Installed 438 beacons, to promote pipeline visibility

• Constructed 292 concrete sign walls to alert

communities of the dangers associated with settling

on Rand Water servitudes.

With this project, 460 local community members were

employed and where possible, the necessary materials

and transportation services were all sourced from within

the communities.

The following alien plant removal projects were implemented during the year under review:

Project Sites Funders BudgetJobs Created

Males Females Totals

Mogale City GDARD R 1,475,896 15 35 50

Elandsfontein GDARD R 1,524,124 21 24 45

Kestell Rand Water R 2,068,000 23 31 54

TOTAL R 5,068,020 59 (40%) 90 (60%) 149


Rand Water is engaging with the relevant local

authorities with a view toward moving those informal

communities which are currently being erected within

its servitudes.

Awareness and Capacity Building – Community Education Programme

Rand Water community education programme regularly

affords community members (including ward councillors,

schools, community organisations) from within its area

of supply to tour its Zuikerbosch Pumping Station.

This is done to improve the communities’ knowledge

of the water purification process, and to be educated

on the value of water, and how to reduce water losses.

The aim of the programme is also to contribute to an

improved awareness of water related matters and also

to encourage communities to understand their role in

conserving, and also paying for water.

This programme has been in active for more than five

years, and during the year under review, Rand Water

allocated R 350 000 for its further implementation.

In addition, community members are also exposed

to water education programmes via community road

shows and presentations within various forums/seminars

in their respective communities. More than 3000

individuals from various communities within Rand Water

area of supply participated in the programme.

Water Sector Support Programmes

As part of the public-public partnership initiative Rand

Water is currently partnering with the Department of

Water Affairs to jointly implement various water sector

support programmes in line with the Department’s

strategic objectives.

The following are projects that Rand Water is

implementing in collaboration with various

Directorates within DWA:

Monitoring, Evaluation and Reporting Programme

The Department of Water Affairs (DWA) has been

mandated to embark on rigorous monitoring, evaluation

and reporting on water sector progress. Various reports

are required by DWA Directorates, management, sector

stakeholders, donors and general public as to how the

sector is progressing in terms of implementing its various

programs. A monitoring and evaluation project was

initiated to assist the Department to conduct monitoring

and assessment of the water sector performance in key

functional areas namely, Forestry, Water Resources and

Water Services.

Quarterly reports are prepared to inform various decision

makers within the Department on the progress being

made with regard to the implementation and attainment

of the key focus areas. Other key tasks and outputs that

were successfully completed included the refinement

of water sector key performance indicators, provision

of effective and strategic monitoring, evaluation and

reporting support to various Directorates within the

Department, and the preparation of the Masibambane

Annual Report.

Water Services Policy Regulation

Rand Water assisted DWA Water Services Regulation

Directorate with the aim of implementing a programme

aimed at building capacity regulation and compliance at

regional and municipal level.

The main objectives of the project are to:

• Provide management support to the Water Sector

Leadership Group Regulatory Strategic Task Team.

• Provide regulation support to the water services

authority and water boards

• Provide regulation driven support for local government.

Water for Growth and Development

The Department of Water Affairs in the Free State

appointed Rand Water as an implementing agent

to initiate and execute on behalf of it, the process of

auditing water for growth points, to assess current and

future socio-economic growth as well as to develop a

strategy on how best the water sector can support and

drive development.

Corporate Social Responsibility (continued)


The HIV&ME Workshops

During the year under review, Rand Water partnered

with HIV&ME, a non-profit organisation that conducts

HIV/AIDS Educational Programmes and Workshops in

Schools for both educators and learners. The practice

of the workshops is for the teachers to first undergo

the training, thereafter, the teachers “teach” the

learners in the presence of HIV&ME facilitators. School

Management Teams and officials from the Department

of Education have indicated that the content of lectures

have been relevant to the schools’ Life Orientation subject

requirements.

People against Human Abuse (PAHA)

During the year under review, Rand Water renovated

a centre for the People Against Human Abuse (PAHA)

in Sunnyside, Pretoria. The Centre provides around the

clock residential care to victims of domestic violence.

Non-Water Related Programmes – Corporate Social Investment (CSI)

During the year under review, Rand Water allocated R2.6 million to various organisations as per the focus area

outlined below:

HIV /AIDS Provide financial and advisory support to:

• Home Based Care

• Orphanages

• Training programmes(HIV/AIDS related)

EducationChildren in need of care

• Assist NGOs and Government remedial initiatives with regards to Children In Need of Care as stipulated in the Children’s Act No 38 of 2005.

• Encourage and support the development of learning skills in childhood, and foster vocational training as a foundation for job creation in schools, with special reference to Schools that cater for children with Learning Difficulties, Learners with Special Educational Needs (LSEN’s)

Women Empowerment • Support women managed structures to improve skills and improve opportunities for job creation.

• Provide funding for trauma and victim counselling Centers or support material, as well as resource provision

Youth Empowerment • Provide resources for the development of youth Programmes that improves the marketability of their skills.

• Funding of equipment for the training of youth.

People with Disabilities • Assisting Institutions or Non Profit Organisations (NPOs) with support to provide the required skills for staff to render the appropriate care for the disabled.

• Resource provision to organisations that work with the disabled.

Health • Provide support to NPOs that address Health related Programmes/Projects

Care for the Aged • Grants issued to institutions taking care of the aged.

• Provide funding for specific requirements and resources related to the care of the aged.

Safety and Security • Assist organisations that look into the safety of Women and Children.

• Funding to develop security measures in centers that provide care to vulnerable groups and communities.


Rand Water Foundation

“Reaching out to Communities, Building Capacity, and leaving Behind Legacy of Infrastructure.”

The Rand Water Foundation is the corporate social

investment (CSI) arm of Rand Water, it is registered

as a non-profit, Section 21 Entity.

The Foundation is mandated to

• Promote the delivery of water service to

underprivileged communities.

• To co-ordinate, administer and manage Rand

Water’s corporate social investment resources

through undertaking community development

projects in partnership with donors and the relevant

stakeholders.

• Play a strategic developmental role that may

require decisions that are not always optimal from

a commercial perspective, but contribute to Rand

Water’s socio-economic developmental imperatives,

the developmental priorities of the Department of

Water and Environmental Affairs, and government’s

broader objectives and the growth and development

in South Africa and Africa.

Focus Areas

Water and Sanitation

The programme supports the provision of water and basic

sanitation in poor communities to maximise communities’

access to water and proper sanitation. Developmental

initiatives include Community Basic Sanitation: Schools;

Households; and Clinics; Municipal Funding-Capacity

Building on Wastewater Treatment plants maintenance

and operations; Rainwater Harvesting; River Cleaning

Initiatives; and Water Solar Initiatives.

Water and Environmental Conservation Management

Interventions aimed at water and environment

conservation entail Biodiversity Protection, Urban

Landscaping and Greening, Parks Development,

Wetlands Rehabilitation, Management of Alien


Vegetation, Erosion Control and Environmental Education

initiatives.

Enterprise Development and Capacity Building

This programme entails developmental activities aimed at:

• Creating Enabling Environment for emerging

entrepreneurs:

• Promoting Entrepreneurship:

• Enhancing competitiveness and capabilities at

enterprise level:

• Cooperatives Development:

• Community Education and Awareness Raising on

Water and Environment Conservation.

Key Rand Water Foundation Projects (2009-2010)

School Sanitation Projects

Three ablution blocks with 82 flushing toilets for three

schools, Seageng Secondary School, St Joseph Khulani

Primary, in the City of Tshwane Municipality, and

Bongani Primary School in the Ekurhuleni Municipality.

Water tanks were also installed to serve as water

reservoirs in the event of unforeseen water shortages.


Proper sewer systems were connected, and Health and

Hygiene Education Programmes were conducted among

both learners and educators. Almost 1900 learners were

the beneficiaries of these projects. The projects were

implemented in partnership with the Department of Water

Affairs (DWA).

Bantubonke Hydroponics Farming

Cooperative (Ltd) Project

The project has been in operation since 2006,

and is aimed at addressing poverty, skills gaps and

unemployment within the community.

During the year under review, the project’s success is

marked by;

• Erection of 15 tunnels producing cucumber, tomato,

spinach, and green peppers.

• Creation of market linkages with; the Johannesburg

Fresh Produce Market; the Vereeniging Fresh Produce

Market; Boxer Superstore in Vereeniging and Spar

Supermarket in Sebokeng Township.

• Created twenty sustainable jobs for local community

members.

Rand Water Foundation (continued)


• Envisages creating 26 more jobs for community

members.

Rehabilitation of Wetlands

During the year under review, the Rand Water

Foundation was involved in the rehabilitation of

six wetlands in Gauteng (Tshwane Municipality,

City of Johannesburg, Ekurhuleni), and Mpumalanga.

These Projects were undertaken in partnership with the

South African National Biodiversity Institute (SANBI).

The projects were implemented in; Ezemvelo Nature

Reserve, Rietvlei, Esselen Park, Marais Dam, Diepsloot,

and at Irene.

Greening Soweto

The Rand Water Foundation supported the

Johannesburg’s City Parks, with its greening the

city campaign ahead of the 2010 FIFA World Cup.

The Foundation sponsored the purchasing of trees.

A total of 200,000 indigenous trees have been planted

as per the initial plan of the City of Johannesburg.

While the project was undertaken in preparation for


Rand Water Foundation (continued)

the World Cup, it will in the longer term continue to

ensure social upliftment through beautification, tourism,

management of environmental degradation, as well as

addressing issues of global warming and protecting

underground water by planting indigenous vegetation,

as well as the removal of alien vegetation.

Special Community Projects

During the year under review, the Rand Water

Foundation supported the following special community

projects on a once off basis as per requests;

• Nyakaza Joint Projects, an initiative of the Mogale

City Youth Development Project to commemorate the

Mogale Heritage Festival which aims to encourage

young talent and the advancement of emerging talent

among the youth, through the performing arts and

sports activities.

• City of Johannesburg Every Child’s Birthday Mayoral

Project – Support was provided to the Executive

Mayor of the City of Johannesburg in celebrating the

birthdays of orphaned and vulnerable children.

• Glen Cowie Girls High School, Limpopo Province

– as part of the National Historic School Restoration

Project, the Rand Water Foundation contributed

towards the upgrading of sanitation facilities at

the school.

• Helen Joseph Hospital Food Garden Project

– the Rand Water Foundation‘s support for this

project was focused at supplying fresh produce to

improve the health of the patients and neighbouring

disadvantaged communities.


Rand Water Services (Pty) LtdRand Water Services (PTY) Ltd was registered in 2000,

and is a wholly owned subsidiary of Rand Water.

It initially functioned as the Business Development division

within Rand Water. In 2005 Rand Water Services was

operationalised, and its own Board of Directors was

appointed. The primary focus of Rand Water Services

is to generate revenue from the market (Rand Water and

other customers) by leveraging on Rand Water resources,

and developing its own competencies and solutions.

The vision of Rand Water Services is “To become an

internationally recognised leader in the provision of

water and related service solutions in the developing

world”.

Rand Water Services achieved a Net Profit before tax of

R20.5m during the year under review, which has resulted

in a solid platform being developed to launch its next

wave of products and solutions aimed at municipalities,

utilities, industries and government departments.

Rand Water Services initially focused on the agency

agreement model (limited staff initially), the organisation

has grown in terms of its technical capabilities and has

developed the capability to implement mega projects.

As such it has embarked on a strategy which focuses

on a nexus of organic growth and inorganic growth

e.g. acquiring licenses for niche technologies and joint

ventures while simultaneously enhancing its internal

competencies.

In an effort to control key elements of the value chain in

which it operates in, other models such as acquisitions

and joint ventures are now considered equally relevant

and important. Rand Water Services’ track record

demonstrates its ability to implement products and

solutions using internal resources which not only allows

for greater profitability, but also enhanced the credibility

of the organisation.

In terms of co-development of new products, solutions

and technologies to assess the condition of its assets,

Rand Water Services with the assistance of Rand Water

will play an instrumental role by:

• Optimising existing process through participation

in the establishment of an Innovation Hub

• Forging and forming alliances and partnerships

• Acquiring licensing agreements

• The acquisition of companies offering technologies

of interest

It is envisaged that where appropriate, the identified

services, products and technologies will be implemented

at Rand Water. This early adoption of products by

Rand Water either generated through the Innovation

Hub, or through Rand Water Services will assist Rand

Water Services in terms of raising the barrier of entry for

potential competitors. This will also provide assurances to

the water sector of the credibility of the solution.

Rand Water Services has acquired and developed

viable capabilities, competencies and solutions and is

now embarking on a growth strategy. This strategy will

focus on two important components viz. consolidating

and reinforcing our position with existing markets (e.g.

Condition Assessment) and nurturing and developing its

position in Utility Operations and Performance, as well as

in the Specialised Construction sector.

Key projects during the year under review

Construction of the R5 pipeline

Rand Water Services has managed the construction of

Phase 1 of the R5 Pipeline, which starts in Benoni and

ends in Mamelodi. The construction of this large diameter

pipeline (1.5m in diameter) posed many challenges due

to the area which it had to be constructed (through a

built-up area) as well as the high water table which made

construction difficult. The project was completed on time

and within budget, with an emerging contractor among

the contractors used during the construction phase. The

project further demonstrated how emerging contractors

with an optimal level of supervision can execute mega

projects in South Africa.

Sasol commissions Rand Water Services for their

Suikerbos Pipeline at Sasolburg

Noted for being a specialist in non-disruptive assessment

of pipelines, Rand Water Services has successfully

completed the Guided Wave Pipe Survey inspection on

the Suikebos pipeline for Sasol. Rand Water Services

was contracted to perform a risk analysis on the pipeline


with the objective of determining the pipeline’s remaining

lifetime to failure. The report provided Sasol with a

more informed understanding of the risk associated with

this pipeline, enabling Sasol to plan for its necessary

rehabilitation. The key focus was the use of non-disruptive

technologies that have the ability to assess the condition

of the pipeline without destroying a portion thereof, and

without taking the pipeline out of commission. The Long

Range Guided Wave Ultrasonic Pipe Screening System

(GUL) was utilised for this assessment which uses guided

waves to screen long lengths of pipes for corrosion or

cracks on the pipeline.

City of Cape Town

The City of Cape Town contracted Rand Water

Services to perform a SmartBall leak detection survey

on the 11.4km section of the Voelvlei Pipeline during

June 2010. The Voelvlei Pipeline is a 1500mm

diameter pre-stressed concrete pipeline that transmits

water from Voelvlei to the PlatteKloof Reservoir. A leak

was indentified from the inspection and was marked

and repaired accordingly. This project is a record

achievement for the SmartBall team with a 11.4km

survey completed for the first time on a single deployment

and it has demonstrated the efficiency and effectiveness

of the SmartBall system.

Repairs to the Churchill Bulk Water Supply Pipeline

in Port Elizabeth

Nelson Mandela Bay Municipality contracted Rand

Water Services to repair the defective joints on its

Churchill Bulk Water Supply main in Port Elizabeth.

The project which commenced in October 2009

required the installation of ethylene propylene diene

Monomer (EPDM) rubber seals on its leaking defective

joints of the pre-stressed concrete pipeline.

A decision was taken to protect the defective joints by

installing a total of 10 EPDM rubber seals. The absolute

failure of a pipeline with a diameter of 1295mm (ID)

under high pressure can potentially be catastrophic

and result in property damage and even injuries or

fatalities. The project demonstrates Rand Water Services

effectiveness in producing working solutions to pipeline

problems encountered by municipalities.

Eskom Management Contract

The Grootvlei Raw Water Treatment Works operates

partially to purify Vaal Dam water and pump it to the

Grootvlei Power Station by means of a 45 km buried

pipeline. This water is treated at the power station and is

used in its cooling process. Eskom decommissioned their

Grootvlei Power Station in 1990, but a decision was

made in 2006 to bring the plant back into commission.

Rand Water Services was awarded the tender for the

Operations and Maintenance of the entire Grootvlei Raw

Water Treatment Plant in January 2007 for a duration

of three years. Rand Water Services has been awarded

a tender for a further three years to operate the water

treatment plant for, and on behalf of Eskom.

Ghana Urban Management Project

The Ghana Urban Management Contract which is

funded by a US$ 120 million grant from the World Bank

has entered into its final year of operation. Rand Water

Services and Vitens International established a joint

venture company, Vitens Rand Water Services, which

is domiciled in The Netherlands. The Company in turn

owns 100-percent of Aqua Vitens Rand Limited (AVRL)

which is based in Accra, Ghana. A key performance

indicator of AVRL is to efficiently manage the bulk

infrastructure with a view toward ensuring effective and

efficient water distribution and the reduction of non-

revenue water.

Rand Water and Rand Water Services, as part of their

Corporate Social Responsibility initiatives, have donated

and subsequently launched a Computer Centre in Accra

with a view towards training local staff members on the

capturing of data. The launch of the Computer Centre

took place in February 2010, and was attended by

the Deputy Minister of Water and Housing in Ghana,

members of the board of the Ghana Water Company

Limited, and the South African High Commissioner to

Ghana.

Rand Water Services (Pty) Ltd (continued)


Rand Water Medical Scheme

The Rand Water Medical Scheme is a non-profit closed

scheme registered in terms of the Medical Schemes Act

131 of 1998, as amended. Membership is limited

to Rand Water employees. Since its establishment on

1 January 1918, the Scheme has been an in-house

administered scheme providing healthcare for members

and their dependants.

The Scheme is governed by its Board of Trustees, and

consists of five member elected trustees and five employer

appointed trustees. The total contributions received for

the year ending 31 December 2009 amounted to

R 89.4 million which is subsidised with a two-thirds

portion by Rand Water. The Scheme has a healthy

solvency ratio of 96-percent for the same period, which

is over three times the minimum requirement of the

statutory Council for Medical Schemes.

During March 2010, the Council for Medical Schemes

carried out an Accreditation Review of the Scheme, the

results of which are pending the Council’s Committee

Meeting to be held in November 2010. The Scheme

has improved its customers call centre facility and has

been incorporated with the Rand Water’s call centre,

together with a voice-monitoring system for improved

customer service.

The Scheme is activated via the BHF (Board of

Healthcare Funders) Forensics Management Unit (FMU)

as certain providers have been found to be corrupt in

their dealings with members. Recovery processes are in

place by Rand Water’s Group Forensics Services Unit.

The scheme offers two benefit options to its 2860

members and is covering just over 7000 members:

• Option A

This option offers benefits to members and dependants in

accordance with the registered rules of the Scheme in the

form of a traditional comprehensive healthcare plan.

The total membership of this option at 31 December

2009 was 2 511. Of these, 473 are continuation

members (pensioners).

The increase in contributions to the Scheme will amount

to approximately 9-percent in 2011.

The weekly settlement of medical claims is aligned

toward member satisfaction and service excellence.

The Scheme has several managed care providers for

diabetes, HIV Aids, hospital managed care and chronic

and medicines benefit management. The Scheme

has further offered all its members and Rand Water

employees, an added opportunity to join an affordable

hospital shortfall insurance product on a voluntary basis

during the three-month open window anniversary and

calendar dates.

The Scheme intends to implement a pharmacy network in

2011 in order to curtail the spiraling medicines costs by

25-percent.

• Option B

This option is a low-cost primary health care option.

It provides health care at various Rand Water site clinics

with the usage of specific healthcare service providers.

This option was introduced primarily to cater for the

needs of the support staff. As at 31 December 2009

the membership of this option was 389.

There are plans to re-structure Option B, so as to provide

flexibility of choice for members.

Rand WateR Medical ScheMeRegistration Number 1201


Rand Water Provident Fund

The Rand Water Provident Fund is a defined contribution

fund with a defined employer and employee contribution

rate. The Fund provides retirement, death, disability and

withdrawal benefits to members and their dependants.

The Fund is a privately administered fund in terms of the

Pension Funds Act 1956. It is administered internally by

Rand Water who are registered Administrators in terms of

Section 13B of the Pension Funds Act 1956.

The Fund is governed by the Board of Trustees which

consists of 5 member elected trustees and 5 employer

nominated trustees. The term of office for the current member

trustees will be ending in 2010 and as a result member

trustee elections are currently taking place. The results of this

election will be announced in November 2010.

The Fund’s membership at the last financial year end,

30 June 2010, reflected a membership of 2653. There

were 547 new members engaged on the Fund in the

financial year ended 30 June 2010. This is due to Rand

Water, through it’s Central Bargaining Forum, allowing

a once-off transfer of employees between the South

African Municipal Workers Union (SAMWU) National

Provident Fund and the Rand Water Provident Fund and

vice versa. Rand Water Provident Fund did not lose but

rather gained membership from the SAMWU National

Provident Fund.

The total contributions received by the Fund during the

year under review was R100 147 201. Members

contribute 8-percent of pensionable emoluments and the

employer contributes 15.87-percent for majority of the

members. Employees’ bonuses are pensionable.

The Fund invests in terms of Regulation 28 of the

Pensions Fund Act. Non current assets of the Fund

equated to R747 189 546 for the year ended 30 June

2010. R713 289 546 is held in insurance policies

and R33 900 000 is held in direct property. The Fund’s

current asset was R11 608 735 as at 30 June 2010.

Total assets of the Fund for the financial year end 30 June

2010 was R758 798 281.

Benefits to the value of R69 603 671 were paid out to

members. Members who retired during the period, and

commuted full lump sums equated to R31 664 225 with

the balance having been paid out for withdrawal, death

and disability benefits.

The Fund has granted guarantees to their service

provider for housing loans granted to members. Currently,

members may not borrow more than 70-percent of their

fund values on this scheme. Whilst the Fund’s credit

limit is R50 000 000, guarantees to the value of

R41 346 788 were outstanding as at 30 June 2010.

This facility is renewable annually.


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