26 September 2005

Parliament of the Republic of South Africa

P.O. Box 15

8000

Dear Madam

The Portfolio Committee on Water Affairs and Forestry requested Amatola Water (letter dated 20 September 2005) to submit a submission on its role in service delivery focusing on the poorest of the poor with regards to the following targets:

• Water supply to all South Africans by 2008; and
• Functioning basic sanitation by 2010

Amatola Water (AW) is a state owned entity consisting of 242 employees created in 1997 to primarily render bulk water supply services within its area of authorization that includes the Amathole District Municipality and portions of the Chris Hani, Ukhahlamba and Cacadu District Municipalities in the Eastern Cape Province. AW currently renders the primary service of bulk water provision to the local municipalities of Buffalo City, Ngqushwa, Nkonkobe and Amahlati located within the Amathole District Municipality. AW currently manages water service assets to the value of R 250 million that can produce a total of 102.74 Mega liters per day.

Secondary services that include technical, financial, institutional and environmental services are rendered through out the Eastern Cape Province on a project by project basis.

AW contributes directly and indirectly to the target of all South Africans having access to a water supply by 2008.

AW’s primary function of the production and distribution of potable water directly benefits the region and significantly impacts the lives of the both rural and urban poor. AW produced 21.36 million kiloliters of potable water in the 04/ 05 financial year of which an estimated 24 % benefited rural poor households in the abovementioned local municipalities. The distribution of the remaining 76% of the potable water is not within the control of Amatola Water and can be sourced from the respective municipalities that received the water.

AW has a well established project implementation agent function that also has a direct impact on service delivery to the poor. AW currently manages water service capital projects to the value of approximately R 81 million for the Amathole District Municipality of which approximately 85% is focused on the elimination of the water backlog and upgrading existing water infrastructure. This function not only directly benefits the poor through the delivery of water services in an efficient, cost effective and professional manner but also supports the District Municipality to utilize its limited human resource base more effectively for all its functions.

Consumers benefit directly from AW’s capital expenditure program. An estimated R 13, 3 million was spent in the 04 / 05 year on refurbishing and upgrading water service infrastructure operated by AW. This work has increased the production capacity and water quality while reducing the unit cost for water on certain schemes. AW has committed R 23, 9 million for the 05 / 06 financial year to continue this trend.

Consumer education and awareness programs are a key part of AW’s service delivery program. AW actively participates in national awareness initiatives such as National Water Week and National Science Week. Its own initiatives include regular interaction with scholars via tours of water treatment works, the laboratory and the sponsorship of radio talk shows on stations such as Umhlobo Wenene, Vukani, Unitra and Khanya community radio stations.

Many activities that AW undertakes have an indirect benefit to service delivery. AW has been appointed by the Chris Hani and Amathole District Municipalities to provide a transfer management service to the Municipalities for the transfer of assets and staff from DWAF for the water service provision function. AW has provided much needed capacity to the Municipalities for this process and has been instrumental in ensuring the transfer process has been transparent, equitable and positive resulting in uninterrupted service delivery to consumers.

Strategic planning is a continuous process at AW that seeks to ensure that AW is always aligned with the service delivery visions of the Water Service Authorities its serves while ensuring the objectives set in its business plan are achieved on an annual basis. This alignment is vital to the effective utilization of limited financial and human resources in the goal of service delivery to all consumers served by AW. AW’s strategic objectives are captured in its Business Plan and its technical vision is captured in its Infrastructure Master Plan.

The Working for Water Program is a multi-faceted program to ensure South Africa’s water resources are maintained in an optimum manner. AW has been involved in the program through the eradication of water hyacinth on the Laing Dam, Wriggleswade Dam and Kubusi River in the Amathole District Municipality in 04 / 05. The program was successfully implemented using herbicides and in future may also include biological control of the weed. The intervention has resulted in the improvement of raw water quality in the affected resources that has had a ripple effect in benefiting consumers with more cost effective potable water.

A key factor in the success of the service delivery cycle is maintaining good working relations between role players. AW actively pursues maintaining good relations with stakeholders through participating in strategic forums such as the South African Association of Water Utilities and the Integrated Water Service Management Forum of the Eastern Cape Province. Relationships with customer organizations such as Water Service Authorities are maintained through relationship building workshops and regular liaison meetings. Where feasible the relationships have been formalized through Service Level Agreements and Memorandums of Understanding.

Training is a key tool in achieving one of AW’s corporate values of empowerment. The development of staff is linked to performance monitoring in the organization. Significant training initiatives included:

• An HIV / AIDS awareness campaign that included road shows for staff members and accredited training for the AW HIV / AIDS committee and Peer Educators.
• Eight previously unemployed people were recruited from areas surrounding AW’s water treatment works and trained as plant operators of which 50% were women.
• Two staff members were trained in Labor Intensive Construction methods in order to better manage government projects in line with the Expanded Public Works Program.
• Application to the LGWSETA to attain accreditation as a trainer for water treatment works operators.

AW believes that highly skilled staff will impact positively on its ability to continuously improve service delivery to its customers.

AW has played a less significant role in sanitation when compared to water supply in the past. The organization has identified the need for more meaningful involvement with sanitation as an objective and is currently developing its influence in this aspect of water service delivery.

The project management service rendered to the Amathole District Municipality has a direct impact on sanitation in the District. The program includes sanitation projects to the value of approximately R12 million of the R 81 million budget. In addition, AW is currently providing a similar service to Buffalo City Municipality which is also a Water Service Authority on the Nxamkwana Sanitation project valued at approximately R 9 million. The project involves the construction of 3200 compositing toilets in the rural village of Nxamkwana.

AW is currently in negotiations with the Amathole District Municipality to render support service agent services to the local municipalities of Great Kei and Mnquma for water service provision. The contract will entail an initial assessment of all water and sanitation infrastructure, develop an operation and maintenance program, undertake targeted maintenance, train the existing water service provision staff and monitor the implementation of the operation and maintenance program.

A similar initiative is in progress with the Eastern Cape Department of Education to manage their schools water service capital expenditure program for the next three financial years. In particular, a possible opportunity is being explored with the Department of Science and Technology to fund a pilot project at rural schools to develop sustainable sanitation solutions. The intention is to utilize the pilot study to inform the capital program for the Department of Education to develop sustainable long term sanitation services at its rural schools. The goal of this initiative will seek to encourage scholars to attend school safe in the knowledge that there safety and dignity in terms of sanitation requirements will be adequately addressed by the Department of Education. It is though that this will particularly impact school going girls in the rural areas of the Eastern Cape Province if successful.

AW has indirectly impacted on sanitation delivery through the secondment of staff to assist with the management of the Amathole District Municipality sanitation program. The secondment involved the placement of a technician in the offices of the District Municipality to provide sanitation project management and planning services. The staff placement assisted in capacitating the Municipality to improve its service delivery and utilize its limited human resources more effectively for the duration of the secondment.

Amatola Water trusts that this submission adequately addresses the instruction from the Portfolio Committee for Water Affairs and Forestry as per your letter dated 20 September 2005. Amatola Water avails itself for further clarification on the contents of this submission in any manner deemed necessary by the Committee. Amatola Water wishes to thank the Committee for the opportunity to make this submission.

Yours faithfully