NAMWATER:NAMWATER:BUILDING BUILDING

RELATIONS RELATIONS WITH WITH

CUSTOMERSCUSTOMERS

Dr. Vaino P. ShivuteDr. Vaino P. Shivute

CEO – Namibia Water CorporationCEO – Namibia Water Corporation21 July 201121 July 2011

WATER SUPPLY IN NAMIBIA

Water Supply and Sanitation

Access to potable water:

Urban 98%

Rural 94%

Access to sanitation:

National 34%

WATER SUPPLY IN NAMIBIA Water Resources

Border rivers

Dams on ephemeral rivers

Groundwater

Seawater desalination

Water recycling

COMPOSITION OF POTABLE WATER SUPPLY

Ministries

Abstraction

PurificationBulk

Distribution

Local Authority

Commercial Enterprises

Small customers

End Users

WATER SERVICES : SUPPLY CHAIN

WATER SUPPLY IN NAMIBIA

Evaporation Annual gross evaporation

ranges from 2 600 mm in the north east to 3 700 mm in the central southern area.

Evaporation is highest in areas with ..the lowest rainfall.

Evaporation is highest for the months October and December.

Dams in Namibia can lose between ..20% and 65% of their water through ..evaporation within one season.

WATER SUPPLY IN NAMIBIA

Hydrological Cycle in Namibia

ESTABLISHMENT OF NAMWATER

Act of Parliament, Act 12 of 1997. Registered as company on 9 Dec

1997. Supply water in bulk to bulk

customers. Government is the SOLE

shareholder, represented by a Board of Directors.

NAMWATER BOARD OF DIRECTORS

Mr. A. Nehemia (Chairperson)

10 permanent & 6 alternate Board Members

MANAGEMENT STRUCTUTRE

OUR MISSION

We shall provide quality water and related services to the

satisfaction of all stakeholders, taking

cognizance of the environment, scarcity of and dependency of all on water.

OUR VISION

We shall be a company of excellence in the water

industry.

OUR VALUES

In pursuing our vision we will always value the following

principles: Growth, Integrity, Accountability, Human Dignity, Service & Quality, Value Adding Orientation.

OBJECTIVES OF THE CORPORATION

I

PRIMARY BUSINESS: Supply bulk water to customers in:

Sufficient quantities, Quality suitable for customers’

purpose, Cost-effective, Environmentally sound & sustainable

means.

OBJECTIVES OF THE CORPORATION

II

SECONDARY BUSINESS: Render water-related services, Supply facilities, Grant rights to customers upon their

request.

Major Bulk Water Schemes Central North Bulk Water Scheme Central Area of Namibia Bulk Water

Scheme Central Namib Area Bulk Water

Scheme     

WATER SUPPLY IN NAMIBIA

WATER SUPPLY IN NAMIBIA

Central North Bulk Water Scheme

Oshana

Ohangwena

Oshikoto

Central North Water Supply Area

Omusati

WATER SUPPLY IN NAMIBIACentral North Bulk Water Scheme

(cont’d)

Angola

Namibia

N

WATER SUPPLY IN NAMIBIA

Central Area Bulk Water Scheme

Otjituuo

Otjiwarongo

Kalkfeld

Omaruru

Karib ib

W INDHOEKGobabis

BOTSWANA

Rehoboth

Outjo

O tavi

OndangwaRundu

ANGOLA

Angola

Namibia

Botswana

Windhoek

Legend Existing P ipeline

Proposed Pipeline

Existing Canal

Dam

Ephem eral R ivers

0 50 100

km

Tsumeb

Aquifer

Okakarara

Omatako Dam

Von Bach Dam

Otjivero Dam

Friedenau Dam

Oanob Dam

SwakoppoortDam

NAMIBIA

Grootfontein

Okahandja

Second largest water scheme in Namibia

Supplies about 25% of Namibia’s population

Sources: 3 Dams – 20 Mm3/aGroundwater – 11.8-18.6 Mm3/a

1 Reclamation plant – 5.25 Mm3/a

WATER SUPPLY IN NAMIBIA

Central Namib Area Bulk Water Scheme Third largest water

scheme in Namibia Supplies about 6% of

Namibia’s.population

Sources: Groundwater – 12

million m3/a Desalination plant – 20-

25 million m3/a (by 2014)

Desalination Plant

COST FACTOR-COST RECOVERY I

Government provided a subsidy to NamWater during it’s the first three years of operations.

The Act requires that water be supplied on a cost recovery basis.

Service of supplying water is a very COSTLY EXERCISE.

COST FACTOR-INFRASTRUCTURE II

Infrastructure such as dams, water pipes, reservoirs, purification plants are expensive to build, and to maintain.

Money spent on water schemes & related projects should be recovered fully.

Return on those investments should allow the company to invest further in water infrastructure.

COST FACTOR-CHEMICALS & TARIFFS

Millions of dollars is spent on the treatment & purification of water.

Cost of water is built into tariffs that should be adjusted each year so that costs are recovered fully.

The tariff includes depreciation, operating costs plus a return on investments.

AFFORDABILITY OF WATER

Recognize that there are people who are not in position to pay for water.

Cabinet decided to task relevant ministries to look at subsidy scheme for pool in urban and rural areas.

Social responsibility to look after poor is mainly the responsibility of government.

CHALLENGES

Financial sustainability. Ageing infrastructure. Limited product portfolio. Declining/ stagnant water demand. Managing debtors. Alternative source of bulk water.

RELATIONSHIP WITH CUSTOMERS

Want to maintain good relationship. Want to give excellent service. Despite floods no water interruption. Excellent quality of water. Expect payment in full & on time. Consult with NW if there are problems. Realise that Government has purpose

when it does not grant tariffs to NW.

RELATIONSHIP WITH CUSTOMERS contd…

The purpose is for end users to benefit from low tariffs.

NW not granted tariffs for 3 years. But, some Town Councils increased

tariffs. These are much higher than NW tariffs. Blame is put on NamWater. This is not good for the maintenance of

relationship.

CONCLUSION-I

NamWater is the major supplier of water in the country. It is our intention to improve our service delivery.

The service of delivering water is very costly. Maintenance, new infrastructure, purifying, pumping etc)

Water is essential for development. It is our intention to supply water in the most effective and cost efficient way to our customers.

CONCLUSION-II

Our aim is to ensure a reliable and sustainable water supply in Namibia. Join us on this exciting yet challenging path.

Want co-operation with our customers to realise our mission.

Thank you!