MARCH  2014  

Water  for  Growth  and  Sustainable  Development  

   

 elcome   back   to   my   Blog.   Time  certainly  marches   on  when   you   are  busy,  and   it  has  been  a  busy  period  

since   we   last   communicated   through   this  column.   As   we   hurtle   towards   the   end   of  Quarter   3   of   the   current   Financial   Year,   I  thought   I’d  bring   you  up   to   speed  on  activities  that   have   occurred,   both   internally   and  externally,   involving   the   Executive   and   key  stakeholders   in   pursuit   of   the   organisation’s  business  objectives  and  strategies.    In   Quarter   3   stakeholder   engagements  continued   pretty   much   at   a   similar   tempo   to  that   of   Quarter   2,   when   our   programme   of  strategic  interactions  became  jam-­‐packed  in  our  endeavours   to   reach   out   to   and   share  information  with   key   role  players   that  have  an  interest  in  or  are  affected,  one  way  or  another,  by   our   business.   Here   are   some   deliberations  and   initiatives   of   the   past   two   months.   It   is  important   for   you   to   note   their   contents   and  outcomes   in   order   to   stay   apprised   –   and  informed   -­‐   of   how   our   organisation   is  performing  in  the  big  external  world,  where  the  political   temperature   is   far   from  lukewarm  and  where  Umgeni  Water   has   to   sometimes   assert  itself   to   state   its   position   and   be   heard.   The  information   I   share   with   you   –   now   or   in   the  future   –   will   be   invaluable   to   you   as  Ambassadors  of  this  organisation.    

eThekwini  Metropolitan  Municipality  We   continue   to   have   constructive,   but   robust,  engagements  at  a  political   level  with  our  major  customer.   At   our  most   recent   interaction  with  eThekwini   MM   we   shared   with   the   Mayor,  Municipal   Manager   and   other   officials  proposals   from   the   Minister   of   Water   and  Environmental   Affairs   to   extend   Umgeni  Water’s  area  of   service,   to   incorporate  at   least  six   new   customers   in   the   North   of   KwaZulu-­‐

Natal   and   in   the   Eastern   Cape.   While   future  prospects  for  Umgeni  Water  look  challenging  in  how   to   approach   and   succeed   in   eradicating  water   supply,   quality   and   quantity   problems  that   are   being   faced   in   the   proposed   new  operational   areas,   this,   at   the   same   time,  presents  exciting  prospects  for  us  to  collectively  put   our   thinking   caps   on   and   work   out  innovative  solutions  that  will  ease  the  plight  of  affected   consumers.   EThekwini  MM  welcomed  the   possibility   of   Umgeni   Water   providing   a  service   and   its   expertise   to   vulnerable  municipalities,   but   it   did   caution   us   about  ensuring   that   the   revenue   derived   from  eThekwini  MM  through  potable  water  sales  was  not   used   to   subsidise   services   to   other  municipalities.  The  point  we  made  was  that  we  would   certainly   not   compromise   the  sustainability   of   Umgeni   Water   by   ploughing  head-­‐long  into  a  situation  riddled  with  financial  risks.   We   also   provided   eThekwini   MM   an  assurance   that   the   service   and   cost   of   product  we  provide  to  our  existing  customers  would  not  be   affected.   Unquestionably,   we   will   do   our  financial  sums  and  weight  up  the  risks  carefully  before  taking  a  decision  on  whether  to  become  the   new   bulk   potable   water   supplier   to   the  proposed   new   customers.   At   the   end   of   the  day,   payment   has   to   be  made   for   the   services  and  products  we  provide,  at  a  rate  that   is  both  feasible  and  sustainable.    Another   key   area   of   discussion   was   the   bulk  tariff   for  2014  –  2015.  This   issue  was  raised  on  the   basis   that   there   was   a   need   for   a   1%   cut,  from   the   8,7%   that   was   presented   to  municipalities   during   engagements   in  November   and   subsequently   submitted   to   the  Minister  of  Water  and  Environmental  Affairs  for  approval.   There   were   two   objections   to   the  tariff,   from   Salga   and   Msunduzi   Local  Municipality,   to   which   we   responded.   The  request   for   a   reduction   was  made   against   the  

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   It  is  important  for  you  to  note  their  (stakeholder  engagements)  contents  and  outcomes  in  order  to  stay  apprised  –  and  informed  -­‐  of  how  our  organisation  is  performing  in  the  big  external  world,  where  the  political  temperature  is  far  from  lukewarm  and  where  Umgeni  Water  has  to  sometimes  assert  itself  to  state  its  position  and  be  heard.  The  information  I  share  with  you  –  now  or  in  the  future  –  will  be  invaluable  to  you  as  Ambassadors  of  this  organisation  

 

 

 

 

MARCH  2014  

Water  for  Growth  and  Sustainable  Development  

   

backdrop   of   2014   being   election   year   and   the  need   to   pass   a   lower   tariff   –   at   9,   9%   -­‐   to  domestic   consumers.   The   Municipal   Manager  asked  that  after  we  do  some  number  crunching  again,   we   submit   a   proposal   to   his   office   that  contains  an  Umgeni  Water  response.  During  our  deliberations   on   the   subject,   we   were   able   to  ascertain   that   the   amount  of   unaccounted-­‐for-­‐water  within  the  eThekwini  region  seems  to  be  quiet  high,  and  we  asked  that  this  be  addressed  in   order   to   reduce   the   cost   of   water   that   is  supplied   to   consumers.   We   also   had   an  interesting   discussion   on   the   Western  Aqueduct,   a   project   that   has   been   initiated   by  eThekwini   MM   and   which   is   expected   to   be  fully  commissioned  by  2017.  Umgeni  Water  will  be  ready  to  meet  the  bulk  potable  water  supply  requirements   in   relation   to   the   Western  Aqueduct.    

Sisonke   District   Municipality   (now  Harry  Gwala  DM)  Our   relationship   with   the   Harry   Gwala   District  Municipality   remains   healthy   and   has   the  potential  to  grow  stronger  as  our  teams  forge  a  closer   working   relationship.   During   discussions  the  possibility  of  assistance  from  Umgeni  Water  in  the  planning  of  bulk  infrastructure  was  raised  by  Harry  Gwala  DM.  There,  however,   seems  to  be   a   blockage   relating   to   the   planning   of   two  regional   schemes:   Umgeni   Water,   at   the  request   of   the   municipality,   has   been   tasked  with   finalising   the   terms   of   reference   for   the  appointment  of   consultants,  but   this   could  not  be  achieved  because  obtaining  the   information  from   Harry   Gwala   DM   has   become   somewhat  problematic.   The   Mayor   had   admirably  volunteered   to   resolve   this   issue,   while  emphasising   the  need   for  Umgeni  Water’s   and  Harry   Gwala   DM’s   technical   teams   to   meet  more   frequently   in   order   to   co-­‐ordinate   plans.  He   also   asked   that   Umgeni   Water   joins   his  technical   team   in   conducting   an   inspection   of  

strategic   projects   in   order   to   gauge   progress.  This   will   be   followed   by   another   engagement  with  the  political  leadership  of  Harry  Gwala  DM  in   April   for   the   purpose   of   providing   a  presentation  on  the  outcomes  of  the  visit  to  the  strategic   projects.   The   Mayor   also   sought   a  commitment  from  Umgeni  Water  that   it  would  make  additional  water  available  to  meet  future  demands   precipitated   by   housing,   commercial  and   industrial   development.   Part   of   the  challenge   that   is   currently   being   faced   is  inadequate   communication   –   a   situation   that  contributed  to  Umgeni  Water  having  to  redirect  R20  million  that  was  originally  set  aside  for  the  Bulwer  project.  There  also  appears  to  be  gaps  in  Harry   Gwala   DM’s   internal   communication  processes,  which  was  illustrated  by  the  Mayor’s  statement  that  he  was  still  awaiting  a  report  on  a  backlog  study  that  was  conducted  by  Umgeni  Water   for   the   then-­‐Sisonke  DM  and  presented  to  municipal  officials.  The  study  is  an  important  yardstick   in   determining   the   extent   of   water  and  sanitation  backlogs  and  how  and  where  to  extend   coverage   of   these   services   on   an  improved  basis.    We  also  dealt  with  sewage  inflows  into  the  river  which  ultimately  makes  its  way  into  the  dam.  As  a   result   of   this   situation,   during   the   raw  water  treatment   process,   sewage   also   has   to   be  treated,   which   has   resulted   in   the   upgrade   of  the   wastewater   works   being   delayed.   It   was  agreed   that   the   upgrade  would   now   go   ahead  while   the   municipality   addresses   the   issue   of  river  pollution  through  sewage  inflows.    

Ugu  District  Municipality  The   package   plant   at   the   site   of   the  Mhlabatshane   Bulk   Water   Supply   Scheme   has  been   successfully   installed,   however,   it   is   not  being   fully   utilised   because   of   constraints   on  the   reticulation   side.   In   order   to   reinforce   the  fact  that  the  package  plant  is  ready  to  deliver  in  

   It  is  important  for  you  to  note  their  (stakeholder  engagements)  contents  and  outcomes  in  order  to  stay  apprised  –  and  informed  -­‐  of  how  our  organisation  is  performing  in  the  big  external  world,  where  the  political  temperature  is  far  from  lukewarm  and  where  Umgeni  Water  has  to  sometimes  assert  itself  to  state  its  position  and  be  heard.  The  information  I  share  with  you  –  now  or  in  the  future  –  will  be  invaluable  to  you  as  Ambassadors  of  this  organisation  

 

 

 

 

MARCH  2014  

Water  for  Growth  and  Sustainable  Development  

   

full,   the   Executive   and   I   conducted   a   site   visit  there.   We   were   later   joined   by   the   Deputy  Mayor   of   Ugu   DM.   Technical   inspections   that  were  conducted  on  the  day  of  the  site  visit  also  confirmed   Umgeni   Water’s   readiness.   I   hope  that   the   constraints   that   exist   on   the  reticulation   side   are   speedily   removed   so   that  the  package  plant  can  produce  water  to   its   full  capacity   of   2   megalitres,   thereby   making   it  possible   for  more  households   in  Mhlabatshane  to   receive   drinking   water.   The   people   of   the  area   have   endured   the   hardship   of   not   having  easy   access   to   water   for   far   too   long.   Their  being   connected   to   a   sustainable   supply   will  ease  their  plight.  While  it  may  seem  that  it  was  an   unusual   step   in   conducting   the   site   visit,   I  believe   it   was   necessary   because   there   has  been   much   debate   and   finger-­‐pointing   over  supply  constraints  and  shortages.    

National  Water  Week  You  have  read  on  the  intranet  a  comprehensive  report   on   the   media   launch   of   the   National  Water   Week   programme   for   KwaZulu-­‐Natal.  This   tells   you   what   Umgeni   Water,   the  Department   of   Water   Affairs   and   Mhlathuze  Water  showcased  at  this  launch  function.  It  was  an  interesting  morning  out  on  the  banks  of  the  Umgeni  River  at  Blue  Lagoon  where,   in  unison,  all  three  entities  showed  how  closely  they  work  together  in  bringing  into  the  public  domain,  and  increasing  awareness  of,  an  important  occasion  such   as   National   Water   Week.   The   underlying  thrust  of  the  message  at  the  media  launch  was  water  is  not  an  infinite  resource  and,  therefore,  must  be  used  sparingly.  Umgeni  Water  was  also  able  to  give  exposure  to  its  major  infrastructure  projects,   to   be   implemented   or   under  construction   to   enhance   assurance   of,   or  extend,   water   supply.   Umgeni   Water’s  programme   of   activities,   all   of   which   have   a  strong   education   and   community   focus,   are  being   held   in   various   parts   of   our   operational  

area.   Already   completed   is   the   Umgeni  Water  Marathon   which,   by   all   accounts,   was   a   huge  success.  My  thanks  to  the  organisers,  Collegians  Harriers,   and   staff   of   Umgeni   Water,   who  volunteered   their   time   to   ensure   that  everything  went  smoothly  at  the  marathon.  The  function   to  mark   the   launch  of   construction  of  the   Lower   Thukela  Bulk  Water   Supply   Scheme,  originally  planned  for  20th  March  2014,   is  now  tentatively   scheduled   to   take   place   on   24th  April   2014   in   Mandeni,   iLembe   District.  Indications  at  this  stage  are  that  the  Minister  of  Water   and   Environmental   Affairs,   Edna  Molewa,   and   the   Premier   of   KwaZulu-­‐Natal,  Senzo  Mchunu,  will  attend  this   function  which,  in  essence,   is  a  celebration  of  the  fact  that  one  of  the  largest  bulk  water  infrastructure  projects  in   KwaZulu-­‐Natal   is   in   the   throes   of   being  implemented.   Seen   differently,   the   Lower  Thukela  Bulk  Water  Supply  Scheme  will  change  forever  the  lives  of  thousands  of  people  who  do  not  have  access  to  water.    

Hands   across   the   Southern   African  Development  Community  Relations   that  we   have   established  with  water  sector  companies  and  organisations  in  SADC  are  growing   in   leaps   and   bounds.   The   latest  organisation   to   formalise   its   relationship   with  Umgeni   Water   is   the   Water   Utilities  Corporation  of  Botswana,  a  State-­‐owned  entity  that   is   responsible   for   the   provision   of   water  and   sanitation   services   throughout   Botswana.  On   Tuesday,   18th   March   2014,   the   Chief  Executive   of   the  Water  Utilities   Corporation   of  Botswana,   Godfrey   Mudanga,   and   I   signed   a  Memorandum   of   Understanding   which   now  paves   the   way   for   the   Botswana   entity   and  Umgeni   Water   to   co-­‐operative   across   a   wide  spectrum   of   organisational   and   sector  disciplines.        

   It  is  important  for  you  to  note  their  (stakeholder  engagements)  contents  and  outcomes  in  order  to  stay  apprised  –  and  informed  -­‐  of  how  our  organisation  is  performing  in  the  big  external  world,  where  the  political  temperature  is  far  from  lukewarm  and  where  Umgeni  Water  has  to  sometimes  assert  itself  to  state  its  position  and  be  heard.  The  information  I  share  with  you  –  now  or  in  the  future  –  will  be  invaluable  to  you  as  Ambassadors  of  this  organisation  

 

 

 

 

MARCH  2014  

Water  for  Growth  and  Sustainable  Development  

   

The   areas   in   which   we   will   assist   and   share  experiences  are:    

• Corporate  governance  practices;    • Human  capital  development;    • Staff  welfare;    • Customer  relations;    • Planning   and   design   of   water   supply  

infrastructure;    • Cost   recovery   and   tariff  

determination;    • Water   conservation,   water   demand  

management  and  water  quality;    • Change   management   and  

organisational  development  practices;    • Capacity  building,  and      • Provision   or   implementation   of  

systems   and   procedures   or   methods  applicable  to  the  water  sector  

 I  am  excited  about  the  future  prospects  for  co-­‐operation  with   this  organisation  because   there  will   be   a   lot   to   learn   from   it   and   we   certainly  have   standing,   knowledge   and   experience   that  we   can   impart,   for   the   betterment   of   our  country  and  region.    

Housekeeping  Matters  I  want   to   thank   staff   for   their   unhesitating   co-­‐operation   in   ensuring   that   the   cost-­‐saving  measures  requested  by  National  Treasury  were  implemented  without  glitch.   Your  assistance   in  this   regard  will   go  a   long  way   towards  Umgeni  Water’s   compliance,   which   is   not   negotiable.  On   occasion,   especially   in   difficult   economic  times,   belt   tightening   is   imperative   to   prevent  drastic  measures  being  taken  in  the  future  if  the                

situation   deteriorates.   Finally,   the   Umgeni  Water   Business   Plan   is   in   the   process   of   being  prepared   for   submission   to   our   Executive  Authority.   To   those   who   have   already  contributed,   your   efforts   are   valued,   and   to  those   whose   contributions   have   yet   to  submitted,   please   forward   this  without   further  delay  because  deadlines  have  to  be  met.    Yours  in  Genuine  Black  Economic  Empowerment  and  Equity    Cyril  Vuyani  Gamede  Chief  Executive    

   It  is  important  for  you  to  note  their  (stakeholder  engagements)  contents  and  outcomes  in  order  to  stay  apprised  –  and  informed  -­‐  of  how  our  organisation  is  performing  in  the  big  external  world,  where  the  political  temperature  is  far  from  lukewarm  and  where  Umgeni  Water  has  to  sometimes  assert  itself  to  state  its  position  and  be  heard.  The  information  I  share  with  you  –  now  or  in  the  future  –  will  be  invaluable  to  you  as  Ambassadors  of  this  organisation