BUSINESS PLAN 2016/17 - Johannesburg Water...1.3 SWOT Analysis The SWOT analysis, as reflected in table 2 below, guides JW to identify the positives and negatives inside the organisation

Version: 25 April 2016 Page 1

BUSINESS PLAN 2016/17

FINAL

APPROVED BY BOARD

25 APRIL 2016


Providing Water. Providing Life. |JOHANNESBURG WATER BUSINESS PLAN|

SIGN-OFF PAGE

Managing Director: Johannesburg Water

Mr Lungile Dhlamini

..........................................................................

Date

Member of Mayoral Committee: Environment,

Infrastructure & Services Department

Councillor Matshidiso Mfikoe

..............................................................................

Date


List of Acronyms

AMI Advanced Metering Infrastructure

MFMA Municipal Finance Management Act, 2003

AET Adult Education and Training

Ml Megalitres

BBBEE Broad Based Black Economic Empowerment

MNF Minimum Night Flow

BCM Business MOE's Municipal Owned Entities

BI Business Intelligence MTEF Medium, Term Expenditure Framework

BP Business Plan NGO Non- Governmental Organisation

BSC Balanced Scorecard NQF National Qualification Framework

BTE Biogas to Energy NRW Non-Revenue Water

CAPEX Capital Expenditure OHS Occupational Health & Safety

CDS Common Distribution System

OIDC Operations Integrated Dispatch Centre

CEPE Civil Engineering Potential Emerging

O&M Operation and Maintenance

CIDB Construction Industry Development Board

PIP Priority Implementation Plan

CoJ City of Johannesburg PWD People with Disability

CRC Current Replacement Cost

RPL Recognition of Prior Learning

CSA Capacity Support Agent RUL Remaining Useful Life

DIIR Disabling Incident Injury Rate

SANS South African National Standard

DR Disaster Recovery SCM Supply Chain Management

DRC Depreciated Replacement Cost

SDA Service Delivery Agreement

EAM Enterprise Asset Management

SDBIP Service Delivery Budget Implementation Plan

EE Employment Equity SDG Sustainable Development Goal

ERM Enterprise Risk Management

SHSUP Sustainable Human Settlement Upgrade Programme

EPWP Expanded Public Works Programme

SLA Service level Agreement

FSW Field Service Worker SMART Specific, Measurable, Achievable, Relevant & Timebound

FY Financial Year SME Small Medium Enterprise

GDS 2040 Growth & Development Strategy 2040

SMME Small Medium and Micro-sized Enterprise

H/H Households STS Standard Transfer Specification

IAMP Infrastructure Asset management Plan

SWM Smart Water Meter

IT Information Technology SWOT Strengths, Weaknesses, Opportunities & Threats

ICT Information communication Technology

TCTA Trans Caledon Tunnel Authority


IDP Integrated Development Plan

UFW Unaccounted For Water

ISO International Organisation of Standardisation

URWH Urban Rainwater Water Harvesting

JW Johannesburg Water UN United Nations

KPI Key Performance Indicator

VIP Ventilated Improved Pit-latrine

l/c/d Litres per capita per day WC-WDM Water Conservation & Water Demand Management WWTW

LED Light-emitting Diode WWTW Wastewater Treatment Works

LoS Level of Service


TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................................................... 7

CHAPTER 1: CORPORATE PROFILE AND INTRODUCTION .............................................................................. 9

1.1 ABOUT JOHANNESBURG WATER ........................................................................................................... 9

1.2 PESTEL ANALYSIS ............................................................................................................................ 10

1.3 SWOT ANALYSIS ............................................................................................................................... 11

1.4 INTRODUCTION ................................................................................................................................... 12

1.5 KEY ACHIEVEMENTS AND HIGHLIGHTS ................................................................................................. 14

CHAPTER 2: GAME CHANGER – COMMUNICATION AND DEVELOPMENT ................................................. 15

2.1 APPROACH TO COMMUNICATION ......................................................................................................... 15

2.2 COMMUNICATIONS.............................................................................................................................. 15

2.3 CUSTOMER CARE ............................................................................................................................... 16

2.4 STAKEHOLDER MANAGEMENT ............................................................................................................. 16

CHAPTER 3: FLAGSHIP PROGRAMMES ............................................................................................................ 18

3.1 JOZI@WORK ..................................................................................................................................... 18

3.2 GREEN AND BLUE ECONOMY .............................................................................................................. 21

3.3 CORRIDORS OF FREEDOM .................................................................................................................. 22

CHAPTER 4: ACCELERATION OF SERVICE DELIVERY .................................................................................. 25

4.1 SERVICE DELIVERY ............................................................................................................................ 25

4.2 PROVISION OF BASIC SERVICE – WATER ............................................................................................. 25

4.3 PROVISION OF BASIC SERVICE – SANITATION ...................................................................................... 25

CHAPTER 5: PRIORITY IMPLEMENTATION PLANS AND OTHER DAY-TO-DAY OPERATIONS .................. 26

5.1 PRIORITY IMPLEMENTATION PLAN, (PIP) ............................................................................................. 26

5.2 DAY-TO-DAY OPERATIONS ................................................................................................................. 32

CHAPTER 6: SUSTAINABLE DEVELOPMENT GOALS ..................................................................................... 34

CHAPTER 7: CAPITAL INVESTMENT PROGRAMME ........................................................................................ 40

.................................................................................................................................................................... 41

7.1 PROJECT: WATER PIPE REPLACEMENT ............................................................................................... 41

7.2 WWTW INFRASTRUCTURE UPGRADE AND RENEWAL ........................................................................... 43

7.3 SEWER NETWORK PIPE REPLACEMENT AND UPGRADING PROGRAMME ................................................ 43

7.4 WATER NETWORK UPGRADING .......................................................................................................... 44

7.5 STORAGE CAPACITY AUGMENTATION - RESERVOIRS ........................................................................... 44

CHAPTER 8: RISK AND COMPLIANCE MANAGEMENT ................................................................................... 45

CHAPTER 9: FINANCIAL PLAN ........................................................................................................................... 49

CHAPTER 10: MANAGEMENT AND ORGANISATIONAL STRUCTURES .......................................................... 62

10.1 HUMAN CAPITAL................................................................................................................................. 62

10.2 ATTRITION ......................................................................................................................................... 62

10.3 SKILLS DEVELOPMENT ........................................................................................................................ 62

10.4 RECRUITMENT ................................................................................................................................... 64

10.5 EMPLOYMENT EQUITY ........................................................................................................................ 65

CHAPTER 11: SUPPLY CHAIN MANAGEMENT ................................................................................................... 66


11.1 IMPROVED BUSINESS PROCESSES ....................................................................................................... 66

11.2 ENTERPRISE AND SUPPLIER DEVELOPMENT ......................................................................................... 66

11.3 IMPROVE CONTRACT MANAGEMENT AND GOVERNANCE OF SCM ........................................................... 68

CHAPTER 12: INFORMATION, COMMUNICATION AND TECHNOLOGY........................................................... 69

ANNEXURE A: SUMMARY OF JOHANNESBURG WATER CAPITAL PROGRAM ........................................... 72

ANNEXURE B: ORGANOGRAM .......................................................................................................................... 76

ANNEXURE C: FINANCIALS ................................................................................................................................. 77

ANNEXURE D: ANNUAL CORPORATE BALANCED SCORECARD .................................................................. 80

ANNEXURE D: QUARTERLY TARGETS .............................................................................................................. 85

ANNEXURE D: KPIS CALCULATION AND DEFINITIONS .................................................................................. 89


Executive Summary

Johannesburg Water (JW) has developed the 2016/17 Financial Year ( FY) Business Plan (BP) with

an approach of completing programmes that were developed in the 2012/16 Integrated Development

Plan (IDP) as well as the new programmes developed in the subsequent years in particular what now

is termed the House model. The stakeholder relations and communication have been elevated in

alignment with the City of Johannesburg (CoJ) where they are now regarded as game changers.

The BP has taken into account the CoJ 10 priority programmes, in addition to the 10 priorities, JW will

continue to focus on the implementation of CoJ flagship programmes, which form part of the strategic

agenda of the city namely “the House”. The flagship programmes are named below:

Corridors of Freedom

Smart City

Jozi@Work

Green and Blue Economy

The enablers to achieve the set outcomes is the capital and operating budgets of R737 million and

R612 million respectively as per Annexure C. It should however be indicated that the aforementioned

budget were rebased from the three-year approved budget. The total average tariff increase for all

services provided would be approximately 13.9%. A new water restriction tariff has been introduced in

the current financial year. The aim of these tariffs is to encourage residents to save water. The tariff is

applicable for consumption over 20kl per month

JW is well resourced with a workforce of 2540 to respond to service delivery imperatives and the

Human Resources Department supports the business in achieving its plans through a number of

strategic initiatives namely Skills Development, Recruitment, Employment equity, Talent Management

and Succession Planning.

The 2015/16 financial year (FY) has seen a greater focus on Information, Communication and

Technology (ICT) within the company which has led to a review and development of a new ICT

strategic plan to support the company in the next three years. A Corporate Governance Framework has

been developed with reference to King III and the Municipal Corporate Governance of Information and

Communication Technology Policy. The purpose of the Framework Policy is to institutionalise the

corporate governance of ICT in JW. Whilst there are many governance mechanisms in place in JW, the

framework will ensure ICT investments are better aligned with the company‟s business objectives. The

year will see the delivery of existing projects coming to realisation and a number of initiatives centred

on improved communications with citizens and utilisation of technologies to deliver business process

efficiencies.

JW has adopted an entity wide risk management approach, which has been rolled out at a strategic

level, and across all business units for identification of strategic, operation, fraud and compliance risks.

The company will continue to mitigate the seven strategic risks to ensure achievement of objectives in

this plan.


The plan contains a number of programmes which are vehicles to deliver the objectives that the

company is committing to. The Annual Corporate Balanced Scorecard in annexure D is a tool used to

measure performance at strategic level; it is underpinned by Service Delivery Budget Implementation

Plans (SDBIP) for each department whereby performance of these programmes at operational level is

being managed.


Chapter 1: Corporate Profile and Introduction

1.1 About Johannesburg Water

Johannesburg Water SOC Ltd (JW) was incorporated on 21 November 2000 and commenced business

on 1 January 2001.

JW is a municipal entity, wholly owned by the City of Johannesburg (CoJ) and is mandated to provide

water and sanitation services to the residents of Johannesburg. The company‟s strategic objectives are

linked to the shareholder objectives through the Service Delivery Budget Implementation Plan (SDBIP)

and cluster plans whereby JW is assigned to the Sustainable Services cluster. In addition, the relation

between the company and the shareholder is governed through the Service Delivery Agreement (SDA)

which is reviewed from time to time.

The entity provides water and sanitation services to an area stretching from Orange Farm in the south

to Midrand in the north, Roodepoort in the west and Alexandra in the east.

The company operates within operating regions (as depicted in the map on Page-6 below), with ten

network depots and six wastewater treatment plants and employs 2 540 people.

The entity supplies 1,574 Ml/day of potable drinking water, procured from Rand Water, through a

distribution network of 11,896 km, 116 operational reservoirs and water towers, 35 water pump

stations. The spent wastewater is then collected and reticulated via 11,786 km of wastewater network,

37 sewer pump stations and treats 973 Ml/day of sewage at its six wastewater treatment works of

which two of its biogas-to energy plants which convert methane gas to energy are located.

Vision

Johannesburg Water‟s vision is to be a world class African water and sanitation utility.

Mission

Johannesburg Water‟s mission is to provide all the people of Johannesburg with access to quality water and

sanitation services by:

delivering a sustainable, affordable and cost effective service

upgrading services in marginalised areas

creating a customer-focused culture

values and develops its employees to build a sustainable capacity

safeguarding the health and safety of Johannesburg Water employees, contractors and the general

public

improving the protection of the environment

managing assets and leveraging on technology to enhance the level of security and quality of

supply


Organisational Values

Teamwork

Accountability

Cost Effectiveness

Communication

Customer Service

1.2 PESTEL Analysis

The situational analysis as undertaken in table 1 below helps to identify the key external (macro

environment level) forces that might affect JW, identify the external factors that may change in the future,

and also to understand the overall picture surrounding the company.

Table 1: PESTEL Analysis

Political

Economical Social Technological Environmental Legislative

Alignment

to National

developme

nt Plan

Formulation

of tangible

outcomes

by end of

political

term.

Unemployment

Levels are

high

Rising cost of

living and new

price

increases.

New taxes

imposed

Water Tariffs

needs, create

sustainability

whilst

affordable to

lower classes

Labour costs

are rising

Population

growth rate

is

increasing

Consumer

engagemen

ts

Consumer

awareness

Immigration

and

emigration

rates

Rate of

technological

change

Research and

development

Basic

infrastructure

level

Communication

infrastructure

Access to new

technology

Quality,

environmental

standards

Growth in

water Demand

Acid Mine

Drainage

Enforcement

of municipal

by-laws

Education of

consumers

on recent

and revised

by-laws

Compliance

to Acts

relevant to

JW‟s

business


1.3 SWOT Analysis

The SWOT analysis, as reflected in table 2 below, guides JW to identify the positives and negatives

inside the organisation and outside of it, in the external environment. The analysis has been undertaken

to develop full awareness of JW‟s current situation to strengthen both strategic planning and decision-

making.

Table 2: SWOT Analysis

Inte

rnal F

acto

rs

Strengths

Industry Knowledge

Committed Personnel

Disaster management mechanism

Risk Resilient

Weaknesses

Aging Workforce

Consumer engagements

Inadequate integrated planning

Management Accountability

E

xte

rnal fa

cto

rs

Opportunities

New Technology

Good Governance Structures

Threats

Rising water demands

Cash flow and liquidly problems

Staff productivity levels as a result of

e.g.( country economic status, etc)

Aging infrastructure


1.4 Introduction

The company‟s strategic objectives are linked to the shareholder objectives through the Service

Delivery Budget Implementation Plan (SDBIP) and cluster plans. In addition, the relationship between

the company and the shareholder is governed through the 30-year Service Delivery Agreement (SDA)

which is reviewed from time to time.

It is against this backdrop that this plan has been developed in alignment with the Integrated and

Development Plan (IDP) as well as the “House” model which is depicted in figure 1 below.

Figure 1: The "House" Model

In 2011/12 a new cluster approach was put in place. This was intended to cover the outcomes as

stated in the Joburg 2040 Strategy and to provide political leadership, guidance and oversight towards

implementation of coordinated and integrated service delivery. The following four clusters were put in

place: Sustainable Services, Economic Growth, Human and Social Development and Good

Governance respectively. JW is assigned to the Sustainable Services cluster and focus areas of this

cluster are indicated in figure 2.


Figure 2: CoJ Clusters

The work of the Sustainable Services cluster intervenes directly in the physical adaptation and

transformation of the CoJ, with the prime objective of progressively creating a metropolitan environment

that is resilient, livable and sustainable both for Johannesburg and the greater city-region of which it

forms part. This mandate is captured in the outcomes of the Joburg 2040 Strategy, and its related

outputs.

•Cohesion and inclusion

•Community safety

•HIV/AIDS and non-communicable diseases

•ECD, ABET and learning

•Food security and poverty support

•Clean, accountable and productive ggovernance

•Civic collaboration and participation

•Citizen and customer care

•Activist government

•Job intensive economic growth

•Small business, entrepreneurship and informal economy

•Competitive support

•Smart City

•Financial sustainability

•Resource management of water & energy

•Sustainable human settlements

•Mass public transport and nonmotorized transport

•Climate change resilience

•Waste minimisation

•Informal settlement upgrade

Sustainable services

Economic growth

Human and social

development Governance


1.5 Key Achievements and Highlights

A key focus for JW over the past years has been planning for a sustainable future by securing water

needs, investing in infrastructure to service growth and demand, reducing our carbon footprint,

reduction of water losses and managing water demand. Table 3 below reflects the highlights of

achievements and targets of for 2014/15 FY.

Table 3: Past Performance Highlights Against Targets

IDP Programmes

/Priorities

Key Performance Indicator

2014/15 Target

2014/15 Actual

2015/16 Target

2015/16

Q2 Actual

Developmental Service Delivery

Total BBBEE procurement recognition spent from Qualifying Small Enterprises Exempted Micro Enterprises

135%

117%

1355

116%

No of jobs created based on EPWP 5537 4154 3000 1221

Reliable Services

Water burst Restored within 48 hours as a ratio of jobs completed

95% 81% 95% 82.30%

Sewer blockages cleared within 24 as a ratio of jobs completed

95%

93%

96%

93.35%

Effluent Quality 97% 92% 97% 79.26%

Basic services

*Informal Household with access to water -LOS1

90.05%

94.01%

96.14% 94.01%

*Informal Household with access to sanitation- LOS1

44.11%

44.60%

46.37% 44.985

Demand Side Management

% NRW

35%

35.8%

32%

37.20

Note:

* denotes the calibrated figure in relation to census


Chapter 2: Game Changer – Communication and Development

2.1 Approach to Communication

Communications has been agreed as the most important game changer and there is a need

for a radical Shift in how communications is conducted within the organisation. Johannesburg

Water has become communication-centric in how everyone does his or her work.

Johannesburg Water strives for close collaboration with the political principals to support them

to fulfil their responsibility to communicate with the public effectively.

Johannesburg Water advocates truthfulness, accuracy, honesty, and reason as essential to

the integrity of communication and has developed a strategy as indicated in table 4 below to

enable it to implement activities that will:

Improve the awareness and appreciation by the citizens regarding the activities and

services of the company;

Improve the trust and confidence in the company by its customers based on real

service delivery experiences and perceptions;

help the company achieve its organisational objectives;

engage effectively with stakeholders;

demonstrate the success of our work;

ensure citizens understand what we do;

change negative behaviour and perceptions where necessary;

To articulate a singular view of the CoJ

Proactively create awareness about JW‟s Vision & Strategy & Programmes in line with

City Priorities;

Use the media to educate residents on water conservation and reflect contributions

made to service delivery through infrastructure upgrades and renewals; and

Mobilise the residents of the city to support JW programmes and pay for service.

.

2.2 Communications

The organisation has identified key stakeholders who drive the brand awareness, perceptions,

and customer experiences that affect the reputation of the organisation.

The communication with various stakeholders across the city and be improved. The different

communication platforms that JW use prove to be popular and effective. The website has an

average of 2 million hits per month as the most of the users accessing the latest information on

service interruptions update. The website will be made more interactive to attract even more

regular users.


The same applies to the social media platforms. The entity will increase the engagements with

the customers from forty to seventy per day. The anticipated number of followers on Twitter by

the end of the 2016/17 FY should be 200 000.

Continued public education on the correct use of sanitation and water infrastructure will

continue in 12 areas with a target of 180 000 persons reached. The success of this

intervention should have a bearing on the reduction of sewage blockages.

Similarly the campaign to reduce the amount of water used in ten high water use suburbs

should result in a ten percent reduction.

2.3 Customer Care

Customer Care forms an intrinsic part of JW business in that feedback is received on the

service provided to customers before, during and after using the services. The annual

Customer Satisfaction Survey to determine customer satisfaction levels and identify key

drivers for work on customer complaints and issues emerging from the survey is the main tool

used to receive the feed.

As part of customer care company will also ensure notification of customers on planned and

unplanned service disruptions via social media, the website and sms notification. This will be

complimented with update via the media and ward councillors.

2.4 Stakeholder Management

The organisation is committed to honesty and integrity in developing effective relationships

with our stakeholders. In orders to serve these stakeholders in an ethical and social manner,

JW has adopted the model of corporate social responsibility. The organisation will improve

stakeholder consultation by having semester forums with key stakeholders to inform and

educate them about various services that JW provides.

Regular engagements with communities are imperatives and monthly educational tours to JW

facilities will be implemented.

Table 4: Communications and Stakeholder programmes

Priority Objective

Project Performance Indicator Annual Target 30 Jun 2017

Regions

Customer and Stakeholder Perspective

Customer Satisfaction Survey

Customer satisfaction level index on water & sanitation related services

70% All


Priority Objective

Project Performance Indicator Annual Target 30 Jun 2017

Regions

Increased bulk sms consumer database

Number of customers on SMS service interruptions notification database increased

100 000 All regions

Customer engagement

Engagement of clients on social media

70 engagements per day

All regions

Increase followers on social media

Number of followers on Twitter 200 000 followers

Stakeholder engagement with Priority Stakeholders

Meetings with Top 100 and Effluent User customers

Semester All regions

Contact sessions with Ward Councillors

Monthly All regions

Water Conservation & Water Demand Management

Campaigns to reduce water demand and abuse of infastructure

Public Education and awareness on the correct use of toilets in targeted areas

15% reduction in sewage blockages

To be determined in July 2017

Litres/person/day campaign 10% reduction in water use

To be determined in July 2017


Chapter 3: Flagship Programmes

3.1 Jozi@Work

Jozi@Work aims to address the hardships caused by unemployment and very low-income

employment. The sufferings caused by unemployment, along with the social devastation

wrought by poverty and chronic illnesses such as AIDS, constitute South Africa‟s most

pressing social security concerns. Not far behind them, however, is the misery of the poverty

associated with low-wage, precarious employment, like much of that in the informal sector.

Those among the unemployed who are destitute must be a priority as well as the working poor

when rolling capital projects in these communities. The programme will mainly focus on 5

programmes being Pipe Replacement Contractor Development, Retrofitting and Leaks

Repairs; Operation and Maintenance of Water and Sewer Infrastructure, War on Leaks and

Cistern project. These programmes will be rolled out completely different from the

conventional way in that they will also demonstrate a shift of doing things within the

organisation by adopting methodologies that are inclusive to the communities where projects

are being rolled are adopted.

In the 2016/17 FY, JW has planned to support a total of 166 Small Medium Enterprises

(SMEs) while 1 569 decent jobs will be created by the same period. It is envisaged that a total

of R177 million of capital budgets and R92 million of operational budgets will be spent on

Jozi@Work projects in 2016/17 FY. The programme will target unemployed youth and women.

Table 5 provide overall Jozi@Work plan per each programme. Brief summary detail of each

programme is provided below.

Table 5: Jozi@Work Plan

Jozi@Work Wave-Two Outputs (2016/17 FY)

Jozi@Work

programme

No. of

Entities

Entities

owned by

Youth

Entities

owned by

Women

No.

of Jobs

Capex

Budget

(R’m)

Opex

Budget

(R’m)

Region

Pipe Renewal 65 26 39 800 150 Nil All

O&M 25 13 12 175 Nil 15 A,D,E

and G

Leak Repairs

& Retrofitting

35 20 15 210 27 Nil D and G

War On

Leaks

24 10 14 144 Nil 30 All

Cistern

Project

14 7 7 210 Nil 40 D


Jozi@Work Wave-Two Outputs (2016/17 FY)

Installation of

Basic

Services

3 1 2 30 Nil 7 C and G

Total budget 166 77 89 1 569 177 92

Pipe Replacement Contractor Development Programme

In its endeavour to reduce unemployment within the CoJ, JW did embark on learner contractor

development programme in partnership with National Department of Public Works. The

programme targeted a total of 65 small micro enterprises (SMEs) with Construction Industry

Development Board (CIDB) grading of 1 Civil Engineering Potential Emerging (CEPE). The

programme intention is to train all 65 SMEs over three year period so that they can elevate

their CIDB grading to 4 CE upon the exit from the programme.

While recruitment of learner contractors was done in 2014/15 FY, construction did commence

in 2015/16 FY with 1st Trial contract. The SMEs will be allocated and implement their second

projects in 2016/17 financial year.

Water and Sewer Networks Repairs and Maintenance

JW do experience a large number of pipe failures, blockages and bursts on both water and

sewer mains especially hotspot areas like Ivory Park, Alexandra, Diepsloot, Orange Farm and

sections of Soweto. As a result of high level of water pipe burst and sewer pipes blockages JW

run the risk of not adhering to its customer charter with regards to response time.

In an effort to mitigate the identified risk, the company intends to expand its repairs and

maintenance programme that has been implemented in Alexandra Township always referred

to as “Alex Model”. The programme intends to appoint local “as and when” contractors with the

necessary expertise to attend to infrastructure failures on the water and sewer infrastructure on

behalf of the company. The purpose of this programme is to ensure that problems are

attended timeously, with the added benefit of local business opportunities which leads to

addressing unemployment in these targeted areas. The programme intends to support 25

SMEs contractors in 2016/17 FY from the local communities with relevant CIDB grading. It is

anticipated that 175 decent jobs will be created.

Installation of Basic Services

By June 2015 CoJ water and sanitation backlog were 8 521 and 78 823 households

respectively. 100% of all these backlogs are in informal settlements, where poverty and

unemployment is high.


JW will use this programme to contribute in creating decent jobs and improve the livelihood of

the masses trapped in poverty. Through this programme JW intend to appoint local SMEs to

install communal stand pipes and Ventilated Improved Pit-latrines (VIPs) throughout the city.

Based on the allocated budget, it is envisaged that for water the backlog will be cleared within

three years starting in 2016/17 FY, while it will take longer on sanitation. Local contractors will

be assisted by Capacity Support Agents (CSAs), who will be appointed by JW as mentor. It is

anticipated that within the next three years 11 local SMEs will be appointed and 110 decent

jobs will be created. It should however be noted that the number of local SMEs and jobs to be

created will increase if funding increases.

War on Leaks

War on Leaks programme was launched on the 28 August 2015 in Eastern Cape Province by

the President of the Republic of South Africa. The programme has the following main

objectives:

Reduce high level of water losses and create awareness to the public on how to

conserve and save water and,

Train 15 000 artisans and plumbers over three year period through repairing of leaks.

In an effort to curb high level of water losses within the CoJ, JW initiated Urban Rainwater

Water Harvesting (URWH) focusing only at schools in 2014/15 FY. However through intensive

assessment of URWH it was decided that “War on Leaks” programme will be more beneficial

in reducing water losses. JW “War on Leaks” programme will focus on repairing leaks at

schools within the city. The programme commenced in the 2015/16FY and has targeted a total

of 500 schools for the FY.

In 2016/17 FY a total of 600 schools will be covered. 24 local SMEs will be sourced to

implement the project. It is envisaged that the programme will create 144 decent jobs.

Sourcing of all SMEs will be done through Jozi@Work regional steering committees. The

appointed SMEs will be trained by the CSAs.

Jozi@Work in Other Services within JW

Targeted subcontracting will see the main appointed contractor on selected capital projects

being utilised to empower SMEs that would have been procured through the Jozi@Work

initiative.

Unbundling of the chemical toilet contracts has also been identified as potential job creator,

whereby the current model will be phased out and contracts will be re-organised to include

more suppliers at various categories of supply. It is anticipated that more local contractors will

benefit as opposed to the current arrangement whereby less than 5 suppliers have been

appointed.


In order to increase job creation opportunities reinstatement of civil infrastructure in areas not

used by vehicles, standpipe maintenance in informal settlements and water infrastructure

chamber maintenance is also identified as potential job creators through Jozi@Work initiatives.

This will be implemented by appointing main specialised contractors as CSAs that will then in

turn appoint, supervise and mentor local contractors. These projects should support a total of

18 (SMEs) from the local communities.

3.2 Green and Blue Economy

The organisation is committed to protect the environment by implementing stricter standards

and limit the amount of pollution allowed, and can try to heal the environment and do what is

necessary to restore it back to a balanced state. The Green and Blue economy are methods

aimed at resource preservation. CoJ is focusing on building a greener city with an intention of

reducing carbon emissions, minimising waste impacts and protection of the natural

environment and related ecosystem goods and services. While rolling these projects

sustainable jobs will be created.

Cistern Project

On average South Africans have 6 litres cisterns in their homes, while old townships have

even bigger cisterns (9 litres). The project intends to replace 6-9 litres cisterns with 4.5 litres

throughout the city. In 2015/6 FY 10 000 cisterns will be replaced in Soweto, while in 2016/17

FY the project will be rolled-out to other areas within the city(e.g. Orange Farm, Alex).

The programme intends to use local SMEs who will be sourced through Jozi@Work steering

committees. In 2016/17 FY 14 SMEs will be appointed and 210 jobs will be created. It should

be noted that over three year period 64 local SMEs will be supported while 1 000 jobs will be

created.

JW will also commence with “drop a block‟‟ initiative in 2016/17. This initiative involves placing

a block in a cistern to reduce volume of water that is used per flush. This requires cisterns of

more than 7 litres wherein a block will be placed to reduce the volume of water by 2 litres.

In-pipe turbine

JW is implementing a Design, Build, Operate and Maintain project of an in-line pipe turbines

plant to generate 3 MW electricity on Linbro PRV Station site within the CoJ The project is a

two phases approach, with phase one expected to be the delivery of 0.2 MW by the end of

April 2017 and the second phase being the delivery of the balance (2.8 MW) beyond June

2018. The operation and maintenance agreement will be a performance based and is

envisaged to run for three years commencing from the successful completion and

commissioning of the plant.


Biogas to Energy

The initial Biogas to Energy installation was completed in 2012 at Northern wastewater

treatment works (WWTW) and is capable of producing 1.1MW of power for the wastewater

treatment plant, around 12.5% of the wastewater plant‟s power requirements. The installation

included an upgrade of four existing anaerobic digesters, installation of digester gas

conditioning and compression system, upgrade of the gas storage tank and installation of three

Combined Heat and Power (CHP) units of 376kW electrical power (kW) each.

The capacity of the installation is 1.2 MW-e renewable electricity and that can reduce

10 000t CO₂ emissions. Since inception 6,832MWh electricity was generated with 7,037 tons

of CO₂ Greenhouse gas offset. The Northern WWTW biogas to energy project could be

expanded to around 4.5 MW supplying 50-60% of the total plant energy requirement. This

expansion can be realised as soon as a project for refurbishment of existing anaerobic

digesters which is currently taking place is completed.

Driefontein WWTW was upgraded to a 55Ml/d facility with the installation of digestion as part of

the upgrade. The second biogas to energy installation was part of this upgrade and included

two CHP units of 376kW electrical power (kW) each. Commissioning of this CHP plant is

planned for middle 2016.

Performance of the these plants (Northern Works and Driefontein Works) will be closely

monitored in 2016/17 FY in order to give an indication of future installations at Bushkoppie,

Goudkoppies and Olifantsvlei Works. This expansion is planned and will follow once the

digester capacity and optimisation on sludge thickening at these Works are installed. The

digester upgrade commenced in the 2015/16 FY at Olifanstvlei and should be completed in the

2017/18 FY at Goudkoppies.

Eco Buildings

All new Johannesburg Water buildings will be based on eco designs and materials.

Energy efficient fittings like solar power geysers and Light-Emitt ing Diode (LED) lights

will become standard requirements of the new buildings. Johannesburg Water is in the

process of compiling a tender document for refurbishment of 22 depot and wastewater

treatment sites over the next 3 financial years. Retrofitting of these buildings with energy

efficient fittings is included in the brief of the refurbishment project.

3.3 Corridors of Freedom

The Corridors of freedom is one of CoJ special programmes that is design to correct the

imbalances of the past prior to 1994. A corridor of freedom programme is geared toward

ensuring that high density human settlements are developed within the CoJ.


This initiative will ensure that people come closer to the City or working zones, while also being

provided with mobility through public transport (Rea-vaya).

In support of corridors of freedom JW has identified various capital projects that are geared to

support the expected population and economic activities within the corridor. The company will

provide additional water supply infrastructure and sanitation services capacity to support

higher density settlements. The initial plan was to commence with projects construction in

2015/16 FY after corridors needs analysis were done in 2014/15 FY. However due to rebased

budget, only detailed designs have started in 2015/16 FY and construction work will

commence in 2016/17 FY.

The summary below provides detailed projects per corridor which JW will implement in support

of the programme, while Table 6 provides project impact and potential return on investments.

Turffontein Corridor

It should be noted that construction work in this corridor will commence in 2016/17 FY as

detailed design would have been done in the 2015/16 FY. Under Turffontein corridor JW will

implement the following projects.

Construction of 2.2 kilometres of water mains upgrade.

Construction of 2.5 Megalitres Forrest Hill water tower and pump station.

Upgrading of approximately 5.1 kilometres of collector sewers.

Louis Botha Corridor

JW has identified the following projects to be implemented in support of Louis Botha corridor of

which its implementation will start in 2016/17 FY:

Construction of pressure management zones

Construction of 37 Megalitres Linksfield reservoir

Construction of 1.4 kilometre of bulk water mains upgrade.

Upgrading of 5.4 kilometres of collector sewers.

Empire Perth Corridor

With Empire Perth the following project will be implemented:

Construction of 7.2 kilometres of water mains upgrade

26 Ml reservoir and a 2 Megalitres Hurstill/Brixton water tower.

Upgrading of 5.1 kilometres of collectors sewers.


Table 6: Corridors of Freedom Projects

Corridor Programme Programme Impact Return on Investments

Louis Botha

Water

Upgrade:

Additional water demand of 32 851 kilolitres/d and storage, bulk

upgrading of R 99.7 million for extra population of 171 819

Improved infrastructure to support additional

50 000 households equivalent within the corridor

Sewer

Upgrades:

Meet additional sewer generation of 26 280 kilolitres/d through

collector sewer to the value of R 28.2 million

Improved infrastructure to support additional 50

000 households equivalent within the corridor

BWW Northern Works current capacity of 460 Megalitres can accommodate

additional 26 Ml to be generated from the corridor

Treatment service continuity

Empire Perth

Water

Upgrades

Meet additional water demand of 24 889 kilolitres/d and storage

including bulk upgrading to the value of R 152.4 million to support

projected additional population of 130 003



Sewer

Upgrades


collector sewer to the value of R 8.4 million



Bushkoppies

Wastewater

Treatment

Works

Bushkoppies Works capacity of 248 Megalitres can accommodate

additional 20 Megalitres generated from the corridor



Turffontein

Water

Upgrades

Meet additional water demand of 20 368 kilolitres/d and storage

including bulk upgrading to the value of R 31.8 million to support

projected population of 95 776



Sewer

Upgrades


collector sewer upgrading to the value of R 12.4 million



Goudkoppies

Wastewater

Treatment

Works

Goudkoppies Works capacity of 130 Megalitres can accommodate

additional 16 Megalitres generated

Treatment service continuity


Chapter 4: Acceleration of Service Delivery

4.1 Service Delivery

The foundation of the House model is the core mandate, which relates to acceleration of service

delivery to meet service delivery standards. Within JW the core mandate refers to all initiatives

that support the achievements of the flagship programmes as well as the roof of the House,

“Communication and Development” such as operations, and all organisational wide support

functions. JW will proceed with implementation of productivity initiatives. The impact of this

programme will be improvement in response time, service delivery and increase in the number

of jobs completed by each operation team per day. The water team is expected to complete 6

jobs per team per day and the sewer teams 5 jobs per team per day

4.2 Provision of Basic Service – Water

Basic water service (LoS1) in informal settlements has been provided to 133 764 of the 142 285

households with a coverage of 94.01%. These means that the remaining 8 521 households are

being provided water services at nominal service (water tankers) and require to be upgraded to

LoS1. The plan for 2015/16 FY is to provide access to basic water to 3 022 households thereby

increasing the coverage to 136 786. In 2016/17 FY based on the allocated budget the plan is to

upgrade 2 428 households to LoS1 (basic service level) and will result in coverage being

increased to 139 214 which is equivalent to 97.84% in informal settlement.

4.3 Provision of Basic Service – Sanitation

Basic sanitation service (LoS1) in informal settlements has been provided to 63 462 of the 142

285 household equivalents with a coverage of 44.60%. The balance of 78 823 households

(backlog) are being provided with a nominal service (chemical toilets) and they require to be

upgraded to LoS1. During 2015/16 FY an additional 2 527 households are being upgraded to

Los1 (basic service level) which will result in coverage being increased to 65 989 which is

equivalent to 46.38% in informal settlement. In 2016/17 FY, the plan is to upgrade 600

households to LoS1 (basic service level) and this will result in the coverage being increased to

66 589 which is equivalent to 46.80% in informal settlement. The low coverage is attributed to

budget reduction from R37 million to R7 million.


Chapter 5: Priority Implementation Plans and other Day-to-day Operations

5.1 Priority Implementation Plan, (PIP)

PIP: Resource Sustainability

IDP Programme: Water Demand Management

Project: Soweto Infrastructure Upgrade and Renewal Project – Retrofitting & Leaks Repair

The project objective is to reduce the current high level of Non-Revenue Water (NRW) through

the upgrading and renewal of the existing water reticulation pipelines (secondary mains),

retrofitting of internal property leaks, installation of water meters and educating consumers on

water conservation. In 2016/17 FY, JW intends to complete the remaining scope of Soweto

Infrastructure Upgrade and Renewal project. Upon completion a total of 183 940 properties will

be retrofitted and meters installed which include the replacement of old water mains. The

Soweto revenue collection has improved from R 3.5 million in 2012/13 FY to R 9.1 million by

end of June 2015.

The company has planned to expand this project to other areas within the city, which include

Orange Farm, Eldorado Park, Noordgesig, Westbury, Alexandra, and Ivory Park. The

investigation has commenced in these areas with detail designs expected to be completed in

2016/17 FY. This will be followed up by the implementation of the project on a phased approach

with secondary mains (replacement and upgrades) being the first phase to be followed by

retrofitting and metering.

The roll-out of this project will be through Jozi@Work programme whereby local contractors will

be appointed to execute the work and formal training and mentoring will be provided which

includes guidance on registration with construction industry development board. The project will

also focus on installation of Standard Transfer Specification (STS) prepaid Meters so to

enhance the revenue, reduce billing errors and improve customer relations.

Table 7 below indicates programmes that are aligned to the SDBIP and the performance targets

of these programmes. The table indicates the baseline at the beginning of the IDP term, the last

audited outcomes of 2014/15 and targets for 2015/16 and 2016/17 respectively.


Table 7: SDBIP Implementation Plan

Key Priority Long term impact (Joburg 2040 related output)

IDP program

me

Key Performan

ce Indicator (2013/16)

Baseline

(2012/13)

Actual 2014/15 financial

year

Target 2015/16 financia

l year


l year

2016/17 Budget (per

programme)

2016/17 target (Tangible, measurable targets that fulfil

requirements of being SMART)

Capex R,000

Opex R,000

Q1 Q2 Q3 Q4

Financial Sustainability & Resilience

Financial sustainable and resilient city

Water Demand Management

% Non-Revenue Water (NRW)\reduced to

40.7% 35.8% NRW reduced to

32% NRW reduced to

30% NRW reduced to

62 000 31.5% NRW reduced to

31% NRW reduced to

30.5% NRW reduced to

30% NRW reduced to

% Bad debts reduced to

18 % Bad debts reduced to

19.5% Bad debts reduced to

12% Bad debts reduced to

16.5 % Bad debts reduced to

Nil 16.5% Bad debts reduced to




Audit opinion achieved

Unqualified audit

Unqualified Audit Opinion

Clean Audit Opinion

Clean Audit Opinion

Nil Annual target

Annual target

Annual target

Clean Audit Opinion

% meters correctly read on a monthly basis, per CoJ‟s billing system

91% % meters correctly read on a monthly basis, per CoJ‟s billing system

90.9% meters correctly read on a monthly basis, per CoJ‟s billing system



N/A 98% meters correctly read on a monthly basis, per CoJ‟s billing system

98%

meters correctly read on a monthly basis, per CoJ‟s billing system

98%


98%




IDP program

me

Key Performan


Baseline

(2012/13)


year


l year


l year

2016/17 Budget (per

programme)



Capex R,000

Opex R,000

Q1 Q2 Q3 Q4

Sustainable Human Settlement Upgrade Programme

Unlock Socio economic development

Quality services

% sewer blockages cleared within 24 hrs of notification

84% sewer blockages cleared within 24 hrs of notification

92.7 % sewer blockages cleared within 24 hrs of notification

95 % sewer blockages cleared within 24 hrs of notification


60 000 95 % sewer blockages cleared within 24 hrs of notification




% of Water bursts restored within 48 hrs. of notification

91% Water bursts restored within 48 hrs. of notification

80.7 % of Water bursts restored within 48 hrs. of notification

95 % of Water bursts restored within 48 hrs. of notification

95% of Water bursts restored within 48 hrs. of notification

120 000



95% of Water bursts restored within 48 hrs. of notification


Sustainable Human Settlement Upgrade Programme

From informal settlements to interim sustainable settlement

Provision of Basic Services

% HH in informal settlements with access to water at minimum LoS1

85.45%

94.01 % HH in informal settlements with access to water at minimum LoS1

96.14 % HH in informal settlements with access to water at minimum

97.84 % HH in informal settlements with access to water at minimum

10 000 96.14% HH in informal settlements with access to water at minimum

96.20% HH in informal settlements with access to water at minimum





IDP program

me

Key Performan


Baseline

(2012/13)


year


l year


l year

2016/17 Budget (per

programme)



Capex R,000

Opex R,000

Q1 Q2 Q3 Q4

% HH in informal settlements with access to sanitation at minimum LoS1

40.21% 44.60 % HH in informal settlements with access to sanitation at minimum LoS

46.37 % HH in informal settlements with access to sanitation at minimum LoS

46.80 % HH in informal settlements with access to sanitation at minimum LoS

7 000 46.37% HH in informal settlements with access to sanitation at minimum LoS

46.37% HH in informal settlements with access to sanitation at minimum LoS

46.80% HH in informal settlements with access to sanitation at minimum LoS

HH in informal settlements with access to sanitation at minimum LoS

Active & engaged Citizenry

Reduce recurring sewer blockages in intervened areas, and promote Health conditions

Stakeholder Engagement

Number of households reached by the Awareness programmes rolled out in Ivory Park, Diepsloot, Diepkloof, Orange farm, Alexandra, Noordgesig Vlakfontein

Pilot Project conducted in Ivory Park more than 2300 households reached

Conducted monitoring and evaluation of the 2013/14 public education intervention.

Conduct 3

rd

Phase of extensive public education. Reduce water loss and minimise sewer infrastructure abuse in identified hot spots

200 000 Number of households reached by the Awareness programmes

10 000 0 40 Number of households reached by the Awareness programmes

120 Number of households reached by the Awareness programmes

200 Number of households reached by the Awareness programmes



IDP program

me

Key Performan


Baseline

(2012/13)


year


l year


l year

2016/17 Budget (per

programme)



Capex R,000

Opex R,000

Q1 Q2 Q3 Q4

Improve quality of services

Stakeholder Engagement

% customer satisfaction index improved to

New 66% customer satisfaction index improved to

70% customer satisfaction index improved to


500 No target measured annually

No target measured annually

No target measured annually


SMME Development & Entrepreneurship

Higher contract turnover

Contractors Development

Number of registered contractors on Jozi @works pipe replacement programme to complete second projects and submit portfolio of evidence to CIDB for grading

0 0 65 50 150 000

0 AT AT 50 registered contractors on Jozi @works pipe replacement programme to complete second projects and submit portfolio of evidence to CIDB for grading



IDP program

me

Key Performan


Baseline

(2012/13)


year


l year


l year

2016/17 Budget (per

programme)



Capex R,000

Opex R,000

Q1 Q2 Q3 Q4

Number of Jozi@ work entities supported

0 226 Jozi@ work entities supported

114 Jozi@ work entities supported


177 000

92 000 0 25 Jozi@ work entities supported



Green Economy

Reduced energy costs and decrease carbon emissions

Biogas To Energy in WWTWs

Tons of Carbon gas offset in Greenhouse Emissions

610.78 2309 tons of Carbon gas offset in Green house Emissions

6671 tons of Carbon gas offset in Green house Emissions


Nil 1168 tons of Carbon gas offset in Green house Emissions





5.2 Day-to-Day Operations

Table 8 below reflects day to day interventions that support the IDP Programmes and GDS outcomes.

Table 8: Day-to-Day Operations

Key

Programmes

2014/15-16/17

Key

Performance

Indicator

(2013/16)

Baseline

(2014/15)

Target

2016/17

financial

year

2016/17

Budget (per

programme)

2016/17 target

(Tangible, measurable targets that fulfil requirements of being

SMART)

Capex

R’ 000

Opex

R’

000

Q1 Q2 Q3 Q4

Pipe

Replacement

Length of water

pipeline replaced

139 km water

pipeline

replaced

105 km water

pipeline

replaced

100

000

5 km water

pipeline

replaced

35 km water

pipeline

replaced

70 km water

pipeline

replaced

105km water

pipeline

replaced

Pipe Replacement

No of bursts per 100km/length

273 bursts

per

100km/length

273 bursts

per

100km/length

100

000

273 bursts

per

100km/length

273 bursts

per

100km/length

273 bursts

per

100km/length

273 bursts

per

100km/length

Sewer Pipe Replacement & Upgrade

Length of sewer pipe line replaced

40 km sewer pipe line replaced


107

000





Quality of Water Percentage compliance with drinking water quality standard on E. Coli (SANS 241

99.8% compliance with drinking water quality standard on E. Coli (SANS 241

99%

compliance

with drinking

water quality

standard on

E. Coli

N/A 99%

compliance

with drinking

water quality

standard on

E. Coli

99%

compliance

with drinking

water quality

standard on

E. Coli

99%

compliance

with drinking

water quality

standard on

E. Coli

99%

compliance

with drinking

water quality

standard on

E. Coli


Key

Programmes

2014/15-16/17

Key

Performance

Indicator

(2013/16)

Baseline

(2014/15)

Target

2016/17

financial

year

2016/17

Budget (per

programme)

2016/17 target

(Tangible, measurable targets that fulfil requirements of being

SMART)

Capex

R’ 000

Opex

R’

000

Q1 Q2 Q3 Q4

(SANS 241 (SANS 241 (SANS 241 (SANS 241 (SANS 241

Human Capacity Building

Total training expenditure as percentage of identified ratio of total payroll

1.52 Total training expenditure as percentage of identified ratio of total payroll

1.50 Total

training

expenditure

as

percentage

of identified

ratio of total

payroll

10 000

0.3 Total

training

expenditure

as

percentage

of identified

ratio of total

payroll

0.7 Total

training

expenditure

as

percentage

of identified

ratio of total

payroll

1.0 Total

training

expenditure

as

percentage

of identified

ratio of total

payroll

1.5 Total

training

expenditure

as

percentage

of identified

ratio of total

payroll


Chapter 6: Sustainable Development Goals

Sustainable development is defined as development that meets the needs of the present

without compromising the ability of future generations to meet their own needs. Sustainable

development calls for concerted efforts towards building an inclusive, sustainable and resilient

future for people and planet. For sustainable development to be achieved, it is crucial to

harmonize three core elements: economic growth, social inclusion and environmental

protection. To this end, there must be promotion of sustainable, inclusive and equitable

economic growth, creating greater opportunities for all, reducing inequalities, raising basic

standards of living, fostering equitable social development and inclusion, and promoting

integrated and sustainable management of natural resources and ecosystems.

On 25 September 2015 at the United Nations summit, countries including South Africa adopted

a set of 17 Sustainable Development Goals (SDGs) to end poverty, protect the planet, and

ensure prosperity for all as part of a new sustainable development agenda. They seek to build

on the Millennium Development Goals and complete what they did not achieve, and they are

integrated and indivisible and balance the three dimensions of sustainable development: the

economic, social and environmental. It is important to note in a review of long term strategic

planning for the CoJ, that South Africa will be expected to deliver on these goals, targets and

indicators, which in turn cascades down to municipalities in their focus on service delivery and

sustainability. Each goal has specific targets to be achieved over the next 15 years. For the

goals to be reached, everyone needs to do their part: governments, the private sector and civil

society. It is against this backdrop that Johannesburg Water commits to conduct its business in

a manner that support the attainment of the following 7 SDGs which are applicable to the nature

of the business, namely;

• Goal 5 : Gender Equality

• Goal 6 : Clean Water and Sanitation

• Goal 8 :Decent Work and Economic Growth

• Goal 9 : Industry , Innovation and Infrastructure

• Goal 11: Sustainable Cities and Communities

• Goal 12: Responsible Consumption and Production

• Goal 13: Climate Change


The following section discusses the company responses to the aforementioned seven SDGs

and their performance measured as per table 10.

Goal 5: Achieve gender equality and empower all women and girls

While the world has achieved progress towards gender equality and women‟s empowerment

under the Millennium Development Goals (including equal access to primary education between

girls and boys), women and girls continue to suffer discrimination and violence in every part of

the world. Gender equality is not only a fundamental human right, but a necessary foundation

for a peaceful, prosperous and sustainable world. Providing women and girls with equal access

to education, health care, decent work, and representation in political and economic decision-

making processes will fuel sustainable economies and benefit societies and humanity at large.

The company aims to end all forms of discrimination against women through the implementation

of the Employment Equity Plan. The objective of the plan is to provide advancement

opportunities for members from designated groups, especially females and People with

Disabilities (PWD) who are suitably qualified by ensuring proportional representation in the

occupational profiles of Johannesburg Water in line with set targets, this will ensure women‟s

full and effective participation and equal opportunities at all levels within the organisation.

Goal 6: Ensure access to water and sanitation for all

Clean, accessible water for all is an essential part of the world we want to live in. There is

sufficient fresh water on the planet to achieve this. But due to bad economics or poor

infrastructure, every year millions of people, most of them children, die from diseases

associated with inadequate water supply, sanitation and hygiene. Water scarcity, poor water

quality and inadequate sanitation negatively impact food security, livelihood choices and

educational opportunities for poor families across the world.

The organisation plans to continue rolling out water standpipes to achieve universal and

equitable access to safe and affordable drinking water for all. In addition, Ventilated Improved

Pit-latrines will be rolled out to achieve access to adequate and equitable sanitation and hygiene

for all and end open defecation, paying special attention to the needs of those in vulnerable

situations.

JW will work towards improving river water quality by reducing pollution caused by blocked

sewers, minimising release of untreated wastewater at our Wastewater Treatment Works

(WWTW) and substantially increasing recycling treated effluent and safe reuse. Although

potable water is provided by the bulk service provider, the organisation will ensure that the

distribution thereof is conducted in a manner that doesn‟t compromise its quality from point of

sale to the taps of consumers.

The Water Conservation Water Demand Management (WC/WDM) programme will be

accelerated in order to increase water-use efficiency to address water scarcity and substantially

reduce the number of people suffering from water scarcity.


Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for

all

The creation of quality jobs remains a major challenge for almost all economies now and will

remain so well beyond 2015 especially the city of Johannesburg with a high Gini coefficient of

0.64 as indicated in figure 3, well above the distress level of 0.4 identified by the United Nations

(UN).

Figure 3: Gini Coefficient

Sustainable economic growth will require societies to create the conditions that allow people to

have quality jobs that stimulate the economy while not harming the environment. Job

opportunities and decent working conditions are also required for the whole working age

population. Persistence of youth unemployment, income inequality and poverty remains. CoJ

unemployment rate at 25% (official definition) and 30% (broader definition); youth most affected.

Through the EPWP and Jozi@Work programmes the company will create job opportunities as

well as decent jobs while promoting inclusivity to the mainstream economy. We will also

continue supporting entrepreneurship, creativity and innovation, and encourage the

formalisation and growth of SMMEs, including through access to financial services. In creating

decent jobs focus will be given for all women and men, including for young people and persons

with disabilities, and equal pay for work of equal value.


Goal 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation

Investments in infrastructure – transport, irrigation, energy, water and information and

communication technology – are crucial to achieving sustainable development and empowering

communities in many countries. It has long been recognised that growth in productivity and

incomes, and improvements in health and education outcomes require investment in

infrastructure. Inclusive and sustainable industrial development is the primary source of income

generation, allows for rapid and sustained increases in living standards for all people, and

provides the technological solutions to environmentally sound industrialisation.

Through the Asset Management Plan the organisation will develop and upgrade quality, reliable,

sustainable and resilient infrastructure to support economic development and human well-being,

with a focus on affordable and equitable access for all. The emphasis should be placed that

upgraded infrastructure should be sustainable, with increased resource-use efficiency and

greater adoption of clean and environmentally sound technologies and industrial processes.

Goal 11: Make cities inclusive, safe, resilient and sustainable

Cities are hubs for ideas, commerce, culture, science, productivity, social development and

much more. At their best, cities have enabled people to advance socially and economically.

However, many challenges exist to maintaining cities in a way that continues to create jobs and

prosperity while not straining land and resources. Common urban challenges include

congestion, lack of funds to provide basic services, a shortage of adequate housing and

declining infrastructure.

The CoJ has identified sustainable human settlements as a key priority for this term of office.

Among these is the CoJ‟s commitment to providing basic services and infrastructure to all

settlements, regardless of the settlement‟s state of formality. The City is re-stitching itself

through “corridors of freedom” in order to reverse apartheid‟s spatial planning.

Goal 12: Ensure sustainable consumption and production patterns

Sustainable consumption and production is about promoting resource and energy efficiency,

sustainable infrastructure, and providing access to basic services, green and decent jobs and a

better quality of life for all. Its implementation helps to achieve overall development plans,

reduce future economic, environmental and social costs, strengthen economic competitiveness

and reduce poverty.

This goal is aligned to goal 6, 8 and 9 and as such the programmes of the aforementioned goals

namely water demand management, asset implementation plan, access to basic services,

EPWP and Jozi@Work will be responding to this goal.


Goal 13: Take urgent action to combat climate change and its impacts

Climate change is now affecting every country on every continent. It is disrupting national

economies and affecting lives, costing people, communities and countries dearly today and

even more tomorrow.

Communities are experiencing the significant impacts of climate change, which include

changing weather patterns, rising sea level, and more extreme weather events. The greenhouse

gas emissions from human activities are driving climate change and continue to rise.

In response to this challenge JW has recognised the use of biogas as a means of contributing

towards the reduction of greenhouse gas emissions. In this case Methane gas which is a by-

product at the WWTW is converted to energy and that energy fed back to the plant‟s grid. This

initiative also aligns to the Green Economy program. Table 9 indicated the potential energy to

be generated by this process.

Table 9: Potential for Heat Generation

Works Flow treated (m3 / day)

Sludge produced (dry tons)

Actual power required (MW)

Potential electrical capacity (MW)

Potential heat generation (MWh / d)

Driefontein 32 000 9 0.6 0.3 7.5

Northern 447 000 85 8.0 4.4 110.8

Olifantsvlei 214 000 62 4.4 2.1 52.9

Goudkoppies 136 000 40 2.4 1.3 32.7

Bushkoppie 218 000 63 3.5 2.1 52.9

Total 1 047 000 259 18.85 10.2 256.8


Table 10: SDGs Key Performance Indicators (KPIs)

SDGs Goals

Indicator Measure Baseline 2014/15 FY

Target 2016/17 FY

Units of measure

Goal 5 Female representation Number of female employees as a percentage of total staff complement

25.46 27 %

Goal 6 Drinking water quality Percentage compliance with drinking

water quality standard on E. Coli

(SANS 241)

99.8 99 %

Access to water in informal settlements

Percentage informal households with

access to water at minimum LoS1

Cumulative performance

94.01 97.84 %

Access to sanitation in informal settlements

Percentage informal households with access to sanitation at minimum LoS1 Cumulative performance

44.60 46.80 %

Goal 8 Jobs created Number of Jobs created based on

EPWP

4154 2800 No

Jozi@Work – Number of entities supported

223 166 No

Jozi@Work - Number of jobs created 664 1569 No

Goal 9

Water and sewer infrastructure development

Length of water pipeline replaced 137 105 km

Length of sewer pipeline replaced 30 60.7 km

Goal 11 Roll-out of Corridors of freedom infrastructure in Louis Botha, Empire-Perth and Turffontein corridors

Water mains Construction of 2.2 kilometres of water mains upgrade

Design Implement N/A

Construction of 2.5 Ml water tower and pump station.


26 Ml reservoir and a 2 Ml water tower. Design Implement N/A Upgrading of approximately 5.1 kilometres of collector sewers.


Goal 12

Water use efficiency HH water consumption 320 305 l/c/d

Water losses NRW 35.8 30 %

Infrastructure development Capex Budget Spend 97 95 %

Goal 13 Greenhouse gasses offset Tons CO₂ offset in greenhouse gas

emissions from WWTW from Biogas

Projects

2309 4671 Tons

Environmental pollution Aggregated % of all WWTW final effluent compliance

90.5 97 %


Chapter 7: Capital Investment Programme

Over and above the identified Flagship Programmes, the capital projects supports the CoJ 2040

Growth and Development Strategy (GDS 2040) outcomes as well as CoJ Priorities adopted at

the Mayoral Lekgotla in 2013, such projects form part of the cluster Priority Implementation

Plans, referred to as PIPs. The capital programmes have also taken into account the national

outcomes below for 2014 to 2019 as published in the Medium Term Strategic Framework:

• Outcome 2: A long and healthy life for all South Africans.

• Outcome 4: Decent employment through inclusive economic growth.

• Outcome 5: A skilled and capable workforce to support an inclusive growth path.

• Outcome 6: An efficient, competitive and responsive economic infrastructure network.

• Outcome 8: Sustainable human settlements and improved quality of household life..

• Outcome 10: Environmental assets and natural resources that are well protected and

continually enhanced.

JW capital programme relates to infrastructure projects that support the City‟s flagships

Programmes as well as infrastructure management which provide suitable capacity and efficient

infrastructure to CoJ water demand.

The CoJ has made a commitment to invest approximately R110 billion in infrastructure over 10

year period. JW‟s infrastructure commitment for the same period amounted to R25 billion of

which R2 billion had been spent by June 2015. In 2015/16 FY a further R792 million will be

spent of which 45% (R352 million) had been spent by end December 2015. JW‟s 3-year period

proposed budget from 2016/17 FY to 2018/19 FY amounts to R3.1 billion (refers to table 11 and

figure 4 below)

Table 11: 3 year Capital plan

Category 2016/17 R 000

2017/18 R 000

2018/19 R 000

Corporate Requirements 33,000 8,500 8,500

Water Demand Management 62,000 127,100 150,000

Operate and Maintain 43,000 61,000 71,000

Upgrading and Renewal 293,136 674,244 341,377

New Infrastructure 31,000 36,000 18,000

Planning and Engineering Studies 25,000 20,000 28,000

Information Technology 6,000 20,000 25,000

Marginalised Areas Program 90,000 127,700 140,000

Bulk Wastewater 153,500 160,950 361,789

Total 736,636 1,235,494 1,143,666


In line with GDS 2040 outcomes, JW has set a series of high level capital projects and

interventions that seek to increase the current infrastructure capacity in order to meet CoJ

economic development‟s needs (See annexure A). The new Lanseria (50 Ml) wastewater

treatment work is one of the major capital projects, of which technical design has commenced in

2015/16 FY, the project is planned to be completed in 2019/20 FY. Upon completion the project

will provide additional capacity to 50 000 households equivalent. This project will also relieve the

current pressure on Northern WWTW, while also unlocking economic developments, which will

results in job creation.

Pipe Replacement (Upgrade and Renewal) forms part of the key capital programmes that

Johannesburg Water will continue to implement in 2016/17 FY. In order to reduce NRW, pipe

replacement has been identified as key programme to assist in combating physical losses. The

PIP section provides more detail with regards to the set targets for 2016/17 FY.

Figure 4: Capex per programme

7.1 Project: Water Pipe Replacement

JW’s aging network has consumed 52% of its life on average, which implies that there is only

48% remaining useful life. In order to improve the water network‟s remaining life Johannesburg

Water had planned to replace a total of 900 kilometres of water pipes by June 2017. However,

based on rebased budgets, it is estimated that only 540 km will be achieved as some of the

projects have been deferred. Based on the revised target (540 km), JW pipe replacement

achievement is 59% (321 km‟s) by end June 2015.

It should be noted that this initiative is geared towards reduction of physical losses within the

CoJ. Table 12 shows the revised three year plans and regions to be covered, with 114

kilometres planned for the current year 2015/16 FY, while 105 kilometres have been planned for

the 2016/17FY.


Table 2: 2015/16 FY – 2017/18 FY Water Pipe Replacement Plan

PIPE REPLACEMENT PROGRAMME SUMMARY

Johannesburg

Water Regions

Length of Mains (metres)

2014/15

Actual

2015/16 2016/17 2017/18* Total

Midrand

3 830 34 000 30 000

30 000

97 830

Sandton – Alex

54 408 50 000 25 000

30 000

159 408

Roodepoort –

20 296 15 000 30 000

30 000

95 296

Johannesburg

Central 19 229 10 000 10 000

50 000

89 229

Soweto 38 625 Nil Nil

10 000 48 625

Deep South 3 361 5 000 10 000

70 000 88 361

Total

139 749 114 000 105 000

220 000

578 749

Renewal Rate (%) 1.22 1.00 0.95

1.9

Note*: The current pipe replacement four year plans end in 2016/17 financial year and new programme

will start in 2017/18 financial year.


7.2 WWTW Infrastructure Upgrade and Renewal

In order to continue to support the city economic developments, further upgrade or expansions

and renewal will continue in other WWTW in 2016/17 financial which include Olifantsvlei, and

Northern Works. The design of the new Lanseria treatment works will continue with construction

expected to commence in 2017/18.

7.3 Sewer Network Pipe Replacement and Upgrading Programme

JW intends to reduce number of blockages per 100 kilometres of pipes. Reduction in number of

blockages per 100 meters does improve level of service to its customers. The plan was

intended to replace a total of 800 kilometres of old sewer pipes by end June 2017. However

following rebase of capital budget (50%) in 2014/15 FY the target was reduced to 277

kilometres as some of the projects have been deferred.

Table 13 below, shows the detailed sewer pipe replacement per regions for three years city-

wide. These sewer projects will also assist in reducing the sewer blockages as most of these

areas are experiencing high sewer blockages. As a result of budget reduction, it is estimated

that only 228 km against an original target of 800 km will have been replaced by June 2017.

Table 93: 2015/16 – 2017/18 Sewer Pipe Replacement Plan

Johannesburg Water

Regions

Length of Mains ( metres)

2014/15 FY

Actual

2015/16 FY

Target

2016/17 FY

Target

2017/18 FY

Target

Total

Length

Midrand 1 514 10 000 15 654 15 000 42 168

Sandton- Alex 560 6 000 10 000 25 000 41 560

Roodepoort-Diepsloot 2 414 9 000 10 000 15 000 36 414

Johannesburg Central 0 15 000 10 000 15 000 40 000

Soweto 4 166 10 000 5 000 15 000 34 166

Deep South 31 001 5 000 10 000 15 000 61 001

Total 39 655 55 000 60 654 100 000 255 309

Renewal rate % 0.33 0.51 0.56 1.2


7.4 Water Network Upgrading

Besides the pipe renewal programme implementation of water network upgrades will also be

done in 2016/17 financial year. Due to development growth within the city, the current

infrastructure needs upgrading in order to meet the current and future demand, including the

developments within three major corridors of freedom.

7.5 Storage Capacity Augmentation - Reservoirs

The entity‟s service standards commit to ensure a minimum of 24-hour storage facilities. To

ensure a minimum 24-hour security of supply across all supply zones JW will ensure

construction of Diepsloot reservoir, Lenasia High level, and Orange Farm high level, Halfway

House, and Woodmead reservoirs. Table 14 below reflects developmental impact expected on

these projects.

Table 104: Expected Outcomes on Infrastructure Upgrades and Renewal Projects

Name of the

Programme

Project

Name

Budget

R’000

Return on

Investment

Impact

2016/17

FY

2017/18

FY

2018/19

FY

Infrastructure

Upgrade and

Renewal

Bulk

Wastewater

Upgrade

153 000 215 983 364 000 Increased 50

Ml treatment

capacity at

Lanseria

WWTW that

will serve

50 000 HH

equivalent

Green Drop

certification and

reduced level of

river

contamination

Sewer Pipe

Replacement

107 000 100 000 90 000 198

kilometres of

pipes

replaced by

June 2017 &

Less sewer

blockages and

improved level

of service

Reservoirs 86 000 46 000 34 500 Additional

water

storage for

130 000

households

equivalent

Additional

130 000

households

connection

within the City

Total 346 000 361 983 488 500


Chapter 8: Risk and Compliance Management

As articulated in the Municipal Finance Management Act (MFMA, 2003) this section covers, a

summary of any risks to achieving revenue projections, and expected major shifts in revenue

patterns and any non-discretionary expenditure.

JW has adopted an entity wide risk management approach, which has been rolled out at a

strategic level, and across all business units for identification of strategic, operation, fraud and

compliance risks.

To add value to the organization and the business-planning process, and ensure that JW

achieves its objectives, the Risk Management function will fulfill the following responsibilities:

Facilitate organization-wide risk and opportunity identification and analysis

Promote the management of risk in line with best practices at all levels in the organization

Promote training in management of risks within different business units and across the

organization

Ensure enterprise-wide compliance with key regulatory and legal requirements

Ensure resilience of JW operations through Business Continuity and Disaster Management

Planning

Provide emerging risk intelligence in respect of service-delivery projects and interventions.

Provide support and guidance to Departments in managing risks

Report regularly on the performance of the organization with regards to management of

risks.

The Risk and Compliance department seeks to ensure that identified risks are managed by

the respective risk owners in pursuit of achievement of JW‟s business objectives. The plan

indicates the role played by the Risk and Compliance Department in the implementation of

enterprise risk management from JW in 2015/16-2016/17 FY.

Risk and Compliance Management Objectives

1. Develop and implement Enterprise-wide Risk Management system and tools

(infrastructure) to ensure that JW is at the forefront of best practice in the discipline

2. Develop, implement and the Business Continuity Management (BCM) System.

3. Develop, implement and maintain a Compliance management system that will enable

JW to be compliant to all business related laws and regulations.

4. Monitor and communicate to all governance structures adherence to the enterprise

risk, Compliance and business continuity management policies and frameworks in line

with CoJ requirements.


The activities to be performed in implementing the plan are divided into two parts:

a) Activities to be performed in the normal roll out and implementation of ERM within

JW

b) Activities related to ensuring appropriate and adequate management of major

strategic and operational risks.

The plan has been allocated funds to achieve it and any significant changes will be managed

through internal funding alternatives including shareholder initiatives.

Focus areas for 2015-2017 as per table 15 below;

Risk and Compliance Policy review

Strategy Review

Risk Plan for 2015/16 approval (interim for the remainder of the FY)

Risk Controls and mitigation plans audit by JW internal Audit unit

Combined assurance reporting JW in line with CoJ requirements

Review of appetite and tolerance levels in line with CoJ framework

Risk mitigation implementation progress quarter to quarter comparison

Development of the BCM system which will now be separate from the initially envisaged

CoJ system

Compliance Management

Johannesburg Water has adopted the Compliance Management Framework developed by the

shareholder (CoJ) in consultation with the Entities and Departments.

The entity has developed a Compliance universe, which is being regularly reviewed to keep

track on new legislation and amendments to existing legislation.

The top five Acts that have been identified as Core to the operations of JW are:

• National Environment Management Act,1998 (Act No.107 of 1998)

• National Water Act , 1998 ( Act No.36 of 1998)

• Water Services Act ,1997 ( Act No.108 of 1997)

• Accreditation for Conformity Assessment Calibration and Good Practice Act, 2006 (Act

No. 19 of 2006)

• Occupational Health and Safety Act,1993 (Act No. 85 of 1993)

On a continuous basis, compliance with the above Acts and other relevant legislation is

monitored by the Risk and Compliance Management Department and in areas of non-

compliance, referred to the relevant Act owners for correction action to be taken.


Table 15: Risk Management Implementation Plan – 2015/16- 2016/17 FY

No

.

TASKS/ACTIVITIES CONTENT OUTPUT/OUTCO

ME

TARGET

DATE

Q

1

Q

2

Q

3

Q

4

1.

Review the Risk

Management Policy

Composition,

Roles and

responsibilitie

s,

Approved Policy Jan/Feb 2016

√

2. Risk Assessments

workshops

Strategic

Operational

Flagship

Projects

Review and

re-evaluation

of existing

risks and

identification

of emerging

risks, develop

mitigation

plans.

Risk

Registers/Profile

Sept/Nov

2015

√

√

3. Facilitate finalization

of Compliance status

updates

Status on

compliance

with existing

and new

legislation

Compliance Status

Reports

Sept 2015

√

√ √ √

4. Develop tool for

monitoring

compliance with ISO

31000

Checklist Monitoring tool

and gap analysis

July 2016 √

5. Monitoring &

reporting on risk

mitigations

Status of

implementatio

n

Monitoring reports 2015/2016 √ √ √ √

6. Updates and reports

on compliance status

Status of

compliance

Compliance status

report

Jan 2016 √ √ √ √

7. Finalisation of the

Business Continuity

Plan

Business

Impact

Analysis,

Business

Recovery

Plans

Business

Continuity Plan

Sept

2016

√


No

.

TASKS/ACTIVITIES CONTENT OUTPUT/OUTCO

ME

TARGET

DATE

Q

1

Q

2

Q

3

Q

4

8. ISO 31000

compliance

monitoring

Status of

readiness for

compliance

Improvement

plans

Sept 2016

√


Chapter 9: Financial Plan

The company has been exempted from the payment of normal company tax in terms of sec 10

(1) (t) of the income tax act since July 2007 and has consequently not been providing for tax

since this date.

The revenue function, which includes the customer call centre, invoicing of customers and

collection of monies from customers is outsourced to the City of Johannesburg‟s Revenue and

Customer Relations Management department. Johannesburg Water has a team of 13

employees who are assisting with credit control of platinum customer.

Over the past few years, JW‟s performance regarding revenue, net profit and cash has been

below budgeted levels. This is mainly due to difficult economic conditions. In order to improve

financial performance, JW established revenue and metering project. The objectives of the

project are to enhance revenue by identifying missing customers, ensuring that all customers

are billed at the correct tariff and that all customers are billed monthly for the services

rendered.

The City‟s revenue shared services centre (RSSC), City Power and Johannesburg Water, its

entities embarked on revenue recovery project in January 2014 were a McKenzie Revenue

Diagnostic was conducted which resulting in five key priorities as the main focus areas to:

Reduce the number of non-metered power and water customers, starting with businesses and focusing on critical low performing regions;

Launch an integrated property-by-property audit across the city to improve baseline data;

Address pre-paid meter fraud to enable long-term shift away from deemed/uncollectable service provision;

Improve current collection rates by establishing risk-based contact strategies and implementing a system to monitor portfolio and operational performance and

Increase visibility into billing process flows and manage break-points and exceptions

across entities.

The progress and status update is as tabulated in table 16 below;


Table 16: Revenue Recovery Project

Area Progress Details Issues Status

Business process exception management (BPEM)

The BPEM has been deployed in production with on-going monitoring. The usage of the tool by super users is in the production environment and end user training by super users handed over to operational teams.

Completed

Business process analytics (BPA)

The BPA has also been deployed into production with the handover to operational team completed however additional technical training in progress.

Completed

Management reporting and control

SAP GUI compatibility issues to the version of Business Warehouse (BW) used were resolved. Design, realisation and testing completed on the 21

st of April

2016. Fifteen (15) users were trained and now have access to SAP-ISU in real-time to generate management reports.

Completed

SMS Channel Solution

Business solution design, user acceptance testing (UAT), development of change requests and regression testing were completed and an internal pilot with staff members to sms their meter readings conducted. Phase-II, a broader rollout to open up the alternative channel to the customers awaiting a public announcement.

Completed

Fraud Management Tool

This project milestone resumed on 16th

May 2016 after the activities were put on hold until hardware the migration was completed and tested.

On Hold

Governance Risk and Compliance

Design configuration has been completed Completed

Device Management Meter Reading (MR) Control

The meter reading (MR) control field changes and unit testing are to be completed by the 29

th April 2016 with additional business processes required for

the full solution to work. SAP still to give advice on system capability to support the processes such that the current status of the MR Control solution is incomplete and cannot go-live without the rest of the functionality in place.

The Move-in/ Move-out unit testing in progress (SAP) with the biggest risk on the Billing Logic that would be impacted. SAP still to investigate the Billing Logic impact and provide initial problem statement.

Open

Device Management and Dunning

User acceptance testing (UAT) and knowledge transfer are to be rescheduled.

Open

Device Management and Billing

User acceptance testing (UAT) done and the Billing Block approved and signed off with Bill Correction approved but awaiting signed-off. It should be noted that the function of the Bill Correction transaction EABICO is to bundle access to different functions within SAP IS-U which will allow for invoice cancelling, meter readings update changes, rebilling and re-invoicing (with segregation of duties). The solution would cater for one adjustment reversal and not multiple adjustment reversals as is currently the case.

User acceptance testing (UAT) for Billing Outsorts has been approved, not signed. Mass data update program to be developed and would require business approval

User acceptance testing (UAT) for Invoicing Outsorts is in progress

Open

Device Management and Access to SAP-ISU

Mobilisation of teams is in progress and SAP to share team structure plan with RSSC and the Entities.

Open


Revenue is budgeted to increase to R9.2 billion in 2016/17 FY which is an increase of 11% on

the forecast of R8.3 billion in 2016. This is mainly due to the tariff increases.

Graph 5 below reflects the revenue and % tariff trends

Figure 5: Revenue and tariff trends

The average proposed tariff increase for 2016/17 FY is 13.9%. This is based on the Rand

Water gazetted tariff increase of 11.9% and a retail margin of 2% to fund capital projects and

loans. The increase is above the inflation rate and the inflation target by the South African

Reserve Bank and may have a negative impact on consumer payment levels. The increase

however, does not adequately cover funding for the capital expenditure required to replace

infrastructure that is reaching the end of its useful life over the next few years. Therefore

additional loans will be required to fund the shortfall.

Bulk purchases consist of the purchase of potable water from Rand Water. The price is

determined by a combination of a government pricing strategy which is linked to producer

inflation for the raw water as well as the costs incurred by Rand Water for the treatment of the

water. For the 2016/17 year, the increase from Rand Water will be 11.9%. This includes the

AMD charge which is levied by TCTA to the Vaal River water users through Rand Water, the

AMD charge was not separately levied in the raw water cost.

The bulk water volume purchases budget has been based on current consumption patterns

with a 1.3% allowance for increases which is in line with the population growth per the 2011

census.


The impact of water demand management initiatives such as pressure valve management,

active leakage control and the prepaid metering project have been factored into the

calculation. These initiatives are expected to yield a reduction in the cost of water purchases.

Graph 6 below reflects the net profit trends.

Figure 6: Net Profit

The net profit of the company improved in 2014/15 due to an increase in billed volumes and

efficient management of company resources. The forecast for 2015/16 has been revised down

to R720 million from the original budget of R1 520 million as a result of increased provision for

bad debt due to lower payment level. The budgeted profit for 2017 increased to R773 million.

Debt impairment has been increasing steadily over a number of years. This is reflected in

figure 7 below.


Figure 7: Bad Debts

The low payment level from customers remains a concern. During 2015 the payment level was

81.1% and the forecast for 2016 has been revised down from 93.9% to 83.2% this is due to

adverse economic conditions. The budgeted payment level in 2016/17 is 83.5% and will

require a major effort from the revenue collection department of CoJ as well as from the

internal credit control department in the company which is now responsible for credit

collections of the platinum customers.

Control over operating costs

General expenses will increase to R612 million (32.2%) due to increased maintenance on

water and sanitation infrastructure, software licenses for IT system, communications and

increase on electricity.


The operating costs per major category are reflected in figure 8 below.

Figure 8: Operational Expenses

Employee related cost is budgeted to increase from R872 million in 2016 to R926 in 2017.

This represents 6.2% increase.

The primary increase is due to (1) establishment of the prepaid meters commercial department

and (2) insourcing of meter reading activities. These two departments are expected to play a

critical role in enhancing JW‟s revenue.

The total employee cost as a percentage of total operating costs remained well below the 30%

benchmark of the CoJ and National Treasury as illustrated in figure 9 below.

Figure 9: Salary trends


The company ended the 2015 year on 23% salaries to operating expenses.

The budget for contracted services (excluding the CoJ service fee) increased by 6.2% (R54

million) to R518 million when compared to the 2015/16 FY. The major increase in contracted

services is as a result of an additional R36 million payable to Emfuleni Local Municipality

monthly cross boundary sewer service charges for which the prices never increased since

1997 and the balance is due to inflationary increase.

Cash generated from operations

The collection rate of water billed to customers is set at 83.5% for 2016/2017 FY and 84.2%

and 84.9% for the 2017/2018 FY to 2018/2019 FY. This is an improvement on the 81.1%

achieved in the 2014/2015 FY as illustrated in figure 10 below.

Figure 10: Payment levels

The continued focus on improving billing and collections by the Revenue and Customer

Relations Department at the CoJ will result in improved collection of outstanding monies for the

2016/17 financial year.

The cash balance is swept to the CoJ in terms of the treasury management arrangement. At

the end of 2015 financial year, JW had cash reserves of R330 million (2014: R42 million). The

projected cash reserve for the MTEF is reflected in figure 11 below.


Figure 11: Cash at Bank

The cash position for 30 June 2017 is budgeted at R595 million (forecast 2016: R441 million).

The main contributor to the improvement is the high budgeted payment levels, which is the

RSSC‟s main focus for the financial year and additional reductions on contracted services and

general expenditures. The additional customers added on the customer database and the

increased tariffs are also expected to positively impact the cash reserves.

Solvency

The entity budgeted to be in a strong solvency position with its total assets exceeding the total

liabilities by R3.6 billion in 2017. The solvency ratio as at 30 June 2017 is 1:60 as illustrated in

figure12 below.


Figure 12: Solvency Ratio

Capital projects

The capital expenditure is budgeted as follows:

June 2017 R 737 million

June 2018 R 1 207 billion

June 2019 R 1 235 billion

The capital budget has decreased from what was previously approved by the CoJ to address

backlogs, upgrading and renewal of ageing infrastructure and new infrastructure requirements.

The source of funding for CAPEX is reflected in figure 13 below. The own funding depends

largely on the increased payment levels. The affordability of funding for the infrastructure

remains a challenge, especially if the payment levels do not improve or deteriorate due to the

current economic conditions.


Figure 13: Sources of funding

Revenue and Tariff Analysis

It is proposed that the six (6) kilolitre free basic water allocated per household per month be

continued. It is proposed that differential tariff increases continue to be applied to different

tariff bands for domestic water and prepaid water and sanitation tariffs (refer to tables below).

A rate of 13.9% is applied to Institutional and Industrial/Commercial water consumption up to

200kl per customer and a rate of 14.9% for consumption exceeding 200kl. The tariff for all

other services provided to be increased by 13.9% for the 2016/17 FY. The total average tariff

increase for all services provided would be approximately 13.9%.

The trend of tariff increases can potentially make it unaffordable for households to afford

water sold and other services provided by JW. This may increase the provision for bad debts

and negatively impact the financial sustainability of the CoJ.

Proposed Tariff Increase

Domestic water and prepaid water and sanitation tariffs to be increased as follows:

>0 to 6 kl free

>6 to 10 kl 6.0%

>10 to 15 kl 10.0%

>15 to 20 kl 11.0%

>20 to 30 kl 13.9%

>30 to 40 kl 14.3%

>40 kl 14.9%

61%

29%

10%

Sources of funding

COJ Funding (loans)

Own funding

USDG


Institutional and industrial / commercial tariffs to be increased by:

Consumption up to 200kl at 13.9%

Consumption exceeding 200kl at 14.9%.

All other tariffs to be increased by 13.9%.


Table 17 below depicts tariff increases per Band (consumption levels)

Table 17: Proposed 2016/17 Tariff

Tariff

Bands (kl)

2015/16

Approved

Tariff (R)

Proposed

Tariff

Increase (%)

2016/17

Proposed

Tariff (R)

Motivation

0 - 6 0.00 0%

- Free of charge for all residents

>6 - 10 6.80 6.00%

7.21

Proposed tariff increase below Rand Water

tariff increase to accommodate low income

groups.

>10 - 15 11.07 10.00%

12.17

This band still represents a low consumption

group of customers. Tariff increase still

below Rand Water's proposed tariff increase

>15 - 20 16.03 11.00%

17.79

The average tariff increase is applied to this tariff band as it represents the average household consumption.

>20 - 30 21.23 13.90%

24.18

This band represents the highest consumption for the middle income group. Tariff is therefore above the average tariff increase to subsidise other free basic services. The idea is to reduce unnecessary usage of water thereby encouraging economic and sustainable consumption.

>30 - 40 22.72 14.30%

25.97

The percentage tariff increase in this band is set so as to subsidise the free basic services. The idea is to reduce unnecessary usage of water thereby encouraging economic and sustainable consumption.

>40 - 60 28.08 14.90%

32.27

Unnecessarily high consumption of water in private household is discouraged by applying a higher percentage increase to the tariff band


Proposed water restriction tariff

A new water restriction tariff has been introduced in the current financial year. The aim of

these tariffs is to encourage residents to save water. The tariff is applicable for consumption

over 20kl per month.

Table 18 below depicts water restriction tariffs per Band (consumption levels)

Table 118: Proposed water restriction tariff

Kilolitres per connection per month

Normal Tariff Water Restriction Tariff Water restriction Tariff

(R/kl) % Increase R' Increase (R/kl)

0-6 Free 0% R 0.00 Free

> 6-10 R 7.21 0% R 0.00 R 7.21

>10-15 R 12.17 0% R 0.00 R 12.17

>15-20 R 17.79 0% R 0.00 R 17.79

>20-30 R 24.18 10% R 2.42 R 26.60

>30-40 R 25.97 20% R 5.19 R 31.16

>40 R 32.27 30% R 9.68 R 41.95

Version:13 April 2016 Page 62

Chapter 10: Management and Organisational Structures

10.1 Human Capital.

Johannesburg Water is well resourced to respond to service delivery imperatives and Human

Resources supports the business in achieving its plans through a number of strategic initiatives.

The interventions planned for the 2016/17 financial year are based on the following

assumptions.

It is assumed that the staff complement that currently provides for approximately 2550

employees will remain stable and not move by more than five percent.

The skills development initiatives depend on funding and the target for the year is for two

percent of the payroll budget to be spent on training and development. This requires an

additional R2 m over and above the 2015/16 budgetary provision.

In so far as the recruitment initiatives are concerned the assumption is made that

attrition will be stable and that the growth in employee numbers will not exceed five

percent. Similarly the targets set for Employment Equity are based on the assumption

that both attrition and the recruitment of additional staff will be in line with past

experience.

Based on the above the capacity of the Human Resources function is considered appropriate to

deliver on the plans for the 2016/17 financial year.

10.2 Attrition

In general the Company has labour stability with a low level of voluntary turnover. Turnover for

both scarce skills such as engineers and artisans as well as for all staff is set at a retention level

of 97% for the 2016/17 FY. There are a number of programs in place that cement the low

turnover rate and encourage retention. One such program is the Engineering Capacitation

program and Specialist Career Grade which promotes the professional development of

engineers and scientists. Johannesburg Water has managed to build up its engineering

capacity to 24 professionally registered engineers, technologists and technicians with the

Engineering Council of South Africa.

10.3 Skills development

In order to supplement the current engineering capacity and to ensure the provision of a pipeline

of skills, the Company runs a bursary program, predominantly in the field of civil engineering.


This program not only enables the Company to focus on future competency requirements but

also provides previously disadvantaged students with the opportunity to further their

qualifications and it increases the awareness among young people of the job and career

opportunities in JW.

There will be 16 bursars in 2016/17 FY of which 3 would have started their practical training in

the Company in 2015/16 FY. It is the intention to maintain the number of bursars at 16 in

2016/17. Likewise, the Company also runs an internship program where graduates are provided

with practical experience in their field of study. Whilst the interns complete their internships at

various times depending on when they were recruited it is the intention to have at least 13

interns across the various disciplines in 2016/17 FY. The majority are funded from the salaries

and allowances budget whilst a few are funded by the National Research Fund in terms of an

arrangement the Company has with the fund.

These graduates are placed in various departments within the Company, also providing a

potential pool of future skills. New bursars and interns are recruited on an annual basis.

As far as the provision of technical training is concerned, a number of initiatives have been

rolled out in various disciplines. Five employees are participated in an electrical learnership

successfully completed NQF level 4, these learners are now in the process to qualify as

Electricians and will be writing they Trade Test by beginning 2016/17. In the past it has been

difficult to fill electrician positions and this will ensure that there is a suitable pool of applicants

within the Company from the latter half of the 2016/17 FY.

Forty Three (43) employees are currently participating in water and wastewater related

learnerships at NQF 1 and 3, namely Water and Wastewater Reticulation Services. There are

currently thirteen (13) employees at NQF level 1. These employees will be progressing to NQF

level 2 in Feb 2016 and should be completing the learnerships at NQF level 3 by March 2017.

A group of thirty (30) employees are currently busy with NQF Level 3 in Water and Wastewater

Reticulation and will continue to NQF level 4 early in 2016, completing in 2017. In addition,

seven (7) employees completed NQF 3 & 4 in Water and Wastewater Reticulation in 2015.

Learnerships for 15 Candidates are planned for Water Process Controllers in 2016/17 FY.

These learnerships not only increase the overall competency and skills of employees but they

also ensure that JW is in a position to meet the green drop requirements in terms of staff

competency levels.

Recognition of Prior Learning (RPL) in Water & Waste Water Reticulation and Water Process

Control Supervision at NQF level 3 and 4 is currently in progress for twenty five (25) employees.

Fifty (50) employees are planned for further RPL interventions (Trade Qualifications and Water

and Wastewater related Learnerships) up to NQF level 4 in 2016/17 FY.

An apprenticeship program in plumbing has also been identified as a priority and 15 apprentices

have been enrolled for Plumbing from 1 August 2015 to complete end July 2018. The aim of this

program will be to supplement the existing skills and provide an alternative source of skills

against the backdrop of an aging plumber profile within Johannesburg Water. Five (5) additional


Apprentices will be employed in 2016/17 FY, in identified scarce and critical trades required at

JW.

Short Skills Training Programmes and on the job training Interventions for technical employees

will also be implemented as determined in the training need analysis. This is to ensure higher

productivity of employees in their specific jobs. This will include coaching and mentoring

training. The intention is to create a learning organisation by promoting lifelong learning

initiatives.

At lower levels, an Adult Education and Training, (AET) Programme had been in place for a

number of years. There are currently 75 learners at various levels of communication and

numeracy. The intention in 2016/17 FY is to be able to continue providing those core and

elective modules to those learners that have completed AET level 4 which will enable them to

achieve a Grade 9 qualification.

In support of the above programs, the Company has implemented a talent management and

succession planning program that will continue into 2016/17 with the overall objective of

facilitating a structured identification and growth of employees as well as aid the retention of

talent and in the process create and strengthen the talent pool of the Company.

One of the interventions required to ensure that adequate capacity is available for the enhanced

roll out of technical training is the upgrading of the training facility at the Ffennel Road depot.

The planning has been done and the roll out of the Capital Investment Programme is planned

for 2016/17FY.

10.4 Recruitment

The Company has done well in decreasing the vacancy turnaround time to 11.9 weeks during

the 2014/15 FY. Going forward, a target of 11.5 weeks has been set for the 2016/17 FY.

It is imperative to note that while focus will remain on achieving the turnaround time of 11.5

weeks, the company‟s economic and financial circumstances and ability to fund the filling of

vacancies continue to be the biggest threat to filling vacancies. It has also been noted that

attempts to recruit employees from other municipal structures and Government departments

have in a number of cases led to those entities making successful counter offers. In terms of the

Remuneration Policy the Company is to use the 50th Percentile as its remuneration guideline. It

is the intention to develop a new Remuneration Policy for implementation with effect from 1 July

2016 .


10.5 Employment Equity

While JW has done well in achieving employment equity targets set in the 2011/12 – 2014/15

FY EE Plan, the appointment of women and people with disabilities still remain a priority. The

Company has set a target of 25% for females to be achieved by 2015/16 FY with an increase to

26% representation by 2016/17 FY. The revised Employment Equity plan for the following three

years will be developed in 2016/17 FY and targets will be revised based on labour market data

and demographics.

The Company will continue to monitor these targets closely via the Employment Equity

Committee and institute corrective measures when challenges are identified.

JW has also set a target of 3.71% for people with disability with this target to increase to 3.91%

for 2016/17FY.

Currently the JW is in the process of rolling out the diversity programmes to all JW employees to

empower them in understanding diversity and discrimination issues and this will receive more

attention in 2016/17 as the programme increases in intensity. As the Company continues to

employ more employees with disabilities it is imperative to sensitize JW employees and

managers on disability awareness in order to ensure that the working environment is supportive

and non-discriminatory to all employees.


Chapter 11: Supply Chain Management

11.1 Improved business processes

To ensure an efficient and cost effective supply chain management system, through streamlined

and standardized processes as follows:

identifying and removing all unnecessary steps in the SCM value chain and

ensure a reduction of administrative burden

improve response time and customer service by automating the vendor

database and tender processes through an eProcurement system

simplify and reduce the number of documents needed for tendering and ensure

the current SCM standard operating procedures are simplified

ensure economic and cost effective buying of inventory items via the

centralization and establishment of a megastore

review of resource requirements of the department in line with National Treasury

requirements

bench marking best practices and standards against other reputable

organizations and international organizations such as the World Bank

Assumptions

The Centralized Supplier Database by National Treasury is implemented by 01

July 2016 to ensure improved SCM compliance with regards to verification and

vetting of suppliers

The web based eTender system by Treasury is up and running and tender

advertisements are uploaded on this system and tender documents printed from

the system as well, to reduce printing & advertisement costs and administration

burden

Budget is provided to establish a centralized inventory megastore to ensure

economies of scale in the buying processes

11.2 Enterprise and supplier development

Reduce barriers for small micro enterprises (SMEs) and ensure effective

participation through subcontracting 25% of projects value to emerging

contractors and other designated groups (i.e. ensure creation of pool of SMEs for

this purpose)

Ensure early payment of emerging contractors within the 15 day payment period

Increased preferential procurement spend with black youth (20%), black women

owned enterprises (25%) and SMEs (130%)


Provide business support via information sessions and debriefings, business

management, financial management, health & safety training

Ensure the successful implementation of the Basic Plumbing Skills Programme

for unemployed youth

Table 19: Supplier development action plan

Description of

Initiative

Action Plan

Infrastructure projects

JW to create a pool of EMEs/QSEs in a vendor database,

including the Vukuphile contractors for convenient access by

large contractors who require subcontractors.

Ensure award of 25% subcontracts of project value to emerging contractors, specifically women, youth and black owned companies.

Assist emerging

contractors with cash flow

Early payment terms for all EME suppliers.

Monitor payment terms monthly and ensure adherence to the

15 days payment period.

Increased preferential

procurement spend

Targeted preferential procurement spend with black women

owned entities = 30% of total measured procurement spend

Targeted preferential procurement spend with black youth

owned entities = 30% of total measured procurement spend

Ensure an allocation of 15% of procurement opportunities

from RFQs to Vukuphile and Plumbing Skills candidates

Preferential Procurement Spend with all EME/QSEs: = 130%

of total measured procurement spent.

Business support and

handholding for start-up

enterprise

Provide entrepreneurial & business management, health & safety and financial management training to 50 EMEs

Establish a Basic Plumbing

Skills Programme for the

unemployed youth

Provide 80 unemployed youth with training and work

experience in plumbing

Place those you completed skills programme in infrastructure

projects to enable them to gain practical experience from skills

learnt

Assist in the establishment of co-ops/entities in the identified

communities after completion of training and link to

Jozi@Work programme for opportunities


11.3 Improve contract management and governance of SCM

Implement a contract management system to record , monitor and measure

contractor performance and ensure early intervention

Ensure contract variations are regularly reviewed and properly approved

Table 20: Summary Schedule of Contract performance

Description Capex Contracts

(Number & Value)

Opex Contracts

(Number & Value)

No. of poor performing contractors

vs. total contractors

Not more than 5 Not more than 5


Chapter 12: Information, Communication and Technology

The 2015/16 FY has seen a greater focus on information, communication and technology in JW

which has led to a review and development of a new ICT strategic plan to support the company

in the next three years. A Corporate Governance Framework has been developed with

reference to King III and the Municipal Corporate Governance of Information and

Communication Technology Policy. The purpose of the Framework Policy is to institutionalise

the corporate governance of ICT in JW. Whilst there are many governance mechanisms in

place in JW, the framework will ensure ICT investments are better aligned with the company‟s

business objectives. The 2015/16 FY will see the delivery of existing projects coming to

realisation and a number of initiatives centred on improved communications with citizens and

utilisation of technologies to deliver business process efficiencies. The budget plan for the new

ICT strategy over the next three years is R60-65 million

The ICT operations have continued to deliver above target performance; 99.3% uptime for core

ICT applications and 98.0% for core ICT services. The overall uptime for the data network was

99.2%. The performance has been achieved through solid technology platforms supported by

good controls in respect of ICT risks. There has been no significant change to the company‟s

ICT asset base covering 21 locations with 1100 users. The implementation of the company‟s

Disaster Recovery Data Centre site is in progress and to be operational by end of June 2016.


The main technology projects earmarked for 2016/17 FY are highlighted in table 21 below:

Table 21: 2016/17 ICT Programme

Strategic Priority

Description Capital Budget

2

Data Analytics A solution to provide information to business on the operations of the company both real-time and history. Using data analytic tools, the role of ICT shifts from that of data guardian to that of „information broker‟. The value proposition is to have information readily accessible (anywhere and at time) and directly from systems providing greater visibility into real-time operations.

R7 mil

2

Digitisation The company has standardised on two technology platforms to drive information and knowledge management. iManage has enabled the digitisation of information and thus realised savings by significantly reducing printed material. The platform has been enhanced with workflow management to drive business process efficiencies through the support of document management in business processes.

The SAP Document Management System (DMS) is being enhanced to scan a number of operational documents linked to transactions in SAP, e.g. work orders, employee records. Therefore scanned documents are now linked to transactions and therefore stored securely and easily accessible from anywhere. The overall value proposition behind digitisation is to enhance productivity, reduced risk of non-compliance and loss of documents and improve accessibility and responsiveness.

R8 mil

2

National Treasury Standard Chart of Accounts (SCOA) The ICT department will be working with the CoJ to support the systems implementation of National Treasury‟s Standard Chart of Accounts The impacted systems are SAP and IMQS. The estimated project budget is to be finalised after the CoJ appointed service provider completes the readiness assessment for the MOEs.

TBD

2

Operations Integrated Dispatch Centre (OIDC) The OIDC concept involves different technologies including a mobile app for citizens and workforce optimisation including mobility for the work force. The solution is to be integrated into JW‟s SAP and IMQS systems in respect of asset management, inventory and work order maintenance, and linked to Data Analytics for the purpose of reporting. The value proposition is to provide a technology solution for citizens to engage with JW with real-time information and notifications, optimise Operations work force including optimisation of travelling routes, storage of information to enable real-time, history and trend reporting and improve work force productivity with the use of mobile technology. A Request for Information document has been compiled and will inform the estimated budget for the OIDC.

TBD


2

Disaster Recovery Staff Site The DR staff site will be complete by end of December 2016. The site will seat an estimated 85 people equipped with the required facilities and technology to enable business continuity in the event of a major or catastrophic disaster to Head Office. The staff site will be linked to the DR Data Centre providing access to the company‟s core ICT systems.

R5 mil

Note. Strategic Priority 2 – Capacity and Innovation

The SCOA and OIDC projects are to be funded from other capital budget plans. The allocated

budget for ICT for 2016/17 FY is R6 mil. The budget will need to be revised for the

implementation of Data Analytics, Digitisation and DR Staff Site.


Annexure A: Summary of Johannesburg Water Capital Program

Summary of Johannesburg Water Capital Programme

Name of

Program Project Name

Capital Budget (R’000)

Return on Investment

COJ

Region

s 2016/17 2017/18 2018/19

Water

Demand

Management

Infrastructure

Upgrade and

Renewal

(Retrofitting & leaks

repair)

62 000 127 100 173 000

Total water savings of 36 000 Ml per annum

(R 245 Million water saving per annum at a

current rate of R 6.81/ kl)

City

Wide

Pipe Replacement 105 136 131 000 125 000

Potential Water savings of 1 296 Ml/annum

on completion of programme equivalent to R

8.8 Million/year).

City

Wide

O & M Category

(including pressure

management)

43 000 61 000 71 000

Potential Water savings of 1 296 Ml/annum

on completion of programme equivalent to R

8.8 Million/year).

City

Wide

Bulk

Wastewater

Expansion

and

Upgrades

Olifantsvlei heating

and mixing /

refurbishment

18 000 63 878 15 000 Treatment service continuity D & F

Bushkoppies

balancing tank 35 000 25 000 Treatment service continuity D

Goudkoppies

(Refurbishment) 150 14 500 21 100 45 000 Treatment service continuity D & F



Ml/d

Northern Works

(Refurbishment) 460

Ml/d

60 500 54 505 80 000 Treatment service continuity A, B,C &

E

Driefontein concrete

lining over-flow 15 000 20 000 17 000 Treatment service continuity C

Lanseria 50Ml/d 10 000 56 000 150 000 Treatment capacity for 50 000 HH equivalent C

Ennerdale 500 500 12 000 Treatment service continuity G

WWTW General

20 000 Treatment service continuity City

Reservoirs

Blue Hills Tower 1.2

Ml 2 000 10 000 Storage capacity for 1 000 HH equivalent A

Robertville Tower

2.25Ml 1 000 Storage capacity for 2250 HH equivalent C

Orange Farm High

Level Reservoir

35Ml

20 000 Storage capacity upgrade for 35 000 HH

equivalent G

Lenasia High Level

Reef Reservoir 15Ml 10 000

Storage capacity upgrade to 30 000 HH

equivalent C



Diepsloot Reservoir

and Tower 20 Ml 25 000

Storage capacity upgrade for 20 000 HH

equivalent A

Woodmead

Reservoir 20Ml 1 000 Storage capacity for 20 000 HH equivalent E

Halfway House

Reservoir 20Ml 2 000 Storage capacity for 20 000 HH equivalent A

Crown Gardens

Reservoir & Tower

16 Ml

12 000 5000 Storage capacity upgrade for 16 000 HH

equivalent F

Aeroton Tower

1.4 Ml 1 000 5 000 Storage capacity 1 000 HH equivalent F

Erand Tower 1.5 Ml 12 000 Storage capacity 1 000 HH equivalent A

Sewer

Upgrade

Sewer Pipe

Replacement (City

Wide)

107 000 119 653 76 916 Reduced number of blockages per 100

meters.

City

Wide

Water

Upgrade

Water Pipe Upgrade

(Networks) 81 000 376 258 189 050

To maintain capacity for current demand and

create capacity for future demand to support

developments

City

Wide

Other

Small projects, IT,

engineering studies

and operational

capital

99 000 184 500 144 700 Water supply continuity City

Wide



TOTAL 736 636 736 636 1 235 494 1 143 666 N/A


Annexure B: Organogram

BOARD OF DIRECTORS

Managing Director

Lungile Dhlamini

Chief Operations

Officer Ntshavheni Mukwevho

Financial Director

Busisiwe Shongwe

Executive Manager: Human Resources

& Corporate services

Thembaletu Fikizolo

Senior Manager:

Risk &

Compliance

Vacant

Company Secretary

Graham Luden

Chief Internal Auditor

Duduzile Tshabalala

Executive Manager:Stakeholder

Relations

& Communications

Hilgard Matthews

Personal Assistant

Hester Balt


Annexure C: Financials

JOHANNESBURG WATER (SOC) LIMITED DASHBOARD OF KEY INFORMATION FOR THE YEARS 2016 to 2019

Preferred Scenario - Rand Water plus 2% = 13.9%

ACTUAL

ORIGINAL

BUDGET FORECAST

2014/15 2015/16 2015/16 2016/17 2017/18 2018/19

CPIX 5.7% 5.8% 5.8% 5.6% 5.9% 5.6%

TARIFF RATE 8.90% 14.0% 14.0% 13.90% 10.9% 10.6%

TARIFF RATE - COST OF SALES 7.80% 13.5% 13.5% 11.90% 6.9% 6.6%

REVENUE 7,286,791 8,361,144 8,321,723 9,211,044 10,187,415 11,257,093

CAPEX - FUNDING SOURCES 1,010,394 735,560 735,560 579,219 499,540 522,990

Grant Funded Capex (USDG) 307,925 249,560 249,560 76,950 189,000 177,190

External (COJ) 676,279 475,000 475,000 445,769 310,540 345,800

Own funding/ BSC 26,190 11,000 11,000 - - -

CASH POSITION 330,300 1,288,320 441,452 594,531 778,632 1,001,138

PROFIT 671,996 1,520,086 719,516 773,490 1,307,654 1,701,742

PAYMENT LEVEL (TOTAL) 81.1% 93.9% 83.2% 83.5% 84.2% 84.9%

PROFIT BEFORE BAD DEBT PROVISION 2,095,123 2,027,806 2,134,209 2,309,450 2,932,700 3,421,041

307,811 355,580 355,580 400,052 446,141 569,465

206,595 1,214,026 413,456 696,540 1,118,654 1,524,552

INTEREST CHARGES

PROFIT BEFORE CAPITAL TRANSFERS

BUDGET


JOHANNESBURG WATER (SOC) LIMITED

R '000 ACTUAL

ORIGINAL

BUDGET

REVISED

BUDGET

2014/15 2015/16 2015/16 2017/18 2018/19

Yr (1) Yr (1) Yr (2) Yr (3) Yr (4)

Revenues

Operating Income Generated 7,286,791 8,361,144 8,321,723 9,211,044 10,187,415 11,257,093

Service charges - water revenue from tariff billings 7,286,791 8,361,144 8,321,723 9,211,044 10,187,415 11,257,093

0

Cost of Sales (3,496,500) (3,880,176) (3,992,742) (4,178,880) (4,454,686) (4,744,240)

Bulk Purchases - Water (3,496,500) (3,880,176) (3,992,742) (4,178,880) (4,454,686) (4,744,240)

Gross margin 3,790,291 4,480,967 4,328,982 5,032,165 5,732,729 6,512,853

Gross Profit Margin % 52.0% 53.6% 52.0% 54.6% 56.3% 57.9%

Other Income 465,402 306,060 306,060 76,950 189,000 177,190

Other revenue 241,485 56,500 56,500 - - -

Deferred income release 223,917 249,560 249,560 76,950 189,000 177,190

Expenditure (3,358,392) (2,999,461) (3,656,432) (4,033,363) (4,271,200) (4,527,782)

Employee Related Costs - Wages & Salaries (771,920) (829,102) (871,810) (926,043) (983,655) (1,049,560)

Contracted Services (393,521) (557,270) (470,570) (518,228) (548,285) (580,085)

CoJ Service fee (184,201) (194,422) (194,422) (202,728) (214,486) (226,926)

Gen. Expenses - Other (387,360) (656,731) (462,923) (611,766) (647,249) (684,789)

Repairs & Maintenance (12,640) (20,469) (19,269) (27,363) (28,950) (30,629)

Depreciation (185,624) (233,746) (222,746) (211,276) (223,530) (236,494)

Contributions - Bad debts (1,423,127) (507,721) (1,414,693) (1,535,960) (1,625,046) (1,719,298)

Profit/(Loss) before interest 897,300 1,787,567 978,609 1,075,751 1,650,529 2,162,261

Net interest & sundry items (225,304) (267,481) (259,093) (302,262) (342,875) (460,519)

Interest income - Internal (CoJ) 8,830 0 8,388 0 0 0

Interest income - External Bad debt 73,678 88,099 88,099 97,790 103,266 108,946

Interest on CoJ shareholder loans (35,717) (25,925) (25,925) (16,019) (6,167) 0

Interest on Mirror conduit loans (228,031) (292,243) (292,243) (354,338) (412,652) (546,263)

Commercial interest payable (44,062) (37,412) (37,412) (29,695) (27,322) (23,201)

Sundry income / (expenses) 0 0 0 0

Profit/(Loss) after finance costs, before FV adj 671,996 1,520,086 719,516 773,490 1,307,654 1,701,742

Taxation payable - - - -

Net Surplus/(Loss) for the year 671,996 1,520,086 719,516 773,490 1,307,654 1,701,742

IAS adjustments

Retained income for the period 671,996 1,520,086 719,516 773,490 1,307,654 1,701,742

Retained income at beginning of period 4,428,624 5,322,947 4,935,936 5,655,452 6,428,942 7,736,597

Prior year adjustments (164,684) - - - -

Retained income at end of period 4,935,936 6,843,033 5,655,452 6,428,942 7,736,597 9,438,339

STATEMENT OF FINANCIAL PERFORMANCE

2016/17

BUDGET


JOHANNESBURG WATER (SOC) LIMITED

STATEMENT OF FINANCIAL POSITION

R '000 ACTUAL

ORIGINAL

BUDGET

REVISED

BUDGET

2014/15 2015/16 2015/16 2016/17 2017/18 2018/19

Yr (1) Yr (1) Yr (2) Yr (3) Yr (4)

ASSETS

NON CURRENT ASSETS 8,817,210 9,159,623 9,159,623 9,685,007 10,696,972 11,604,143

Fixed assets (net book values) 8,817,210 9,159,623 9,159,623 9,685,007 10,696,972 11,604,143

Land and buildings 93,949 286,347 286,347 286,347 286,347 286,347

Plant & equipment 6,390,020 8,337,889 8,337,889 8,863,249 9,875,214 10,782,385

Motor vehicles - Other 24 50 50 50 50 50

Furniture and fittings 9,225 10,820 10,820 10,820 10,820 10,820

Office Equipment 7,675 3,234 3,234 3,234 3,234 3,234

Other fixed assets 2,316,293 521,283 521,283 521,283 521,283 521,283

Other non-current assets - - - - -

Biological Assets - -

Current assets 2,324,088 3,621,272 1,828,011 3,169,212 4,228,575 5,422,690

Service Debtors 5,476,190 8,611,249 7,664,857 9,006,885 10,049,237 11,199,104

Less: Provision for Bad Debts (3,877,038) (6,721,026) (6,721,026) (6,905,342) (7,100,347) (7,306,663)

Sundry Debtors 16,528 14,034 14,034 14,820 15,694 16,573

Inventory 64,938 67,668 67,668 77,074 81,621 86,192

Cash & equivalents 330,301 1,288,320 441,452 594,531 778,632 1,001,138

CoJ 313,169 361,023 361,023 381,240 403,733 426,342

Other UAC's of CoJ 4 4 4 4 4

Total Employment of Capital 11,141,298 12,780,895 10,987,634 12,854,220 14,925,546 17,026,833

EQUITY AND LIABILITIES

Capital and Reserves 5,226,659 6,843,034 6,042,465 6,815,955 8,123,609 9,825,351

Share capital & premium 1 1 1 1 1 1

Retained income 5,226,658 6,843,033 6,042,464 6,815,954 8,123,608 9,825,350

Non-Current Liabilities 3,024,609 2,968,192 2,968,192 3,957,238 4,601,487 4,877,629

Mirror Conduit External loans 2,309,393 2,392,171 2,392,171 3,440,916 4,156,557 4,467,777

Shareholder Loan 129,966 64,992 64,992 - - -

Other External loans 487,273 409,566 409,566 409,177 331,464 290,031

Deferred Income 2,260 - - - - -

Fleet lease obligation 8,727 9,476 9,476 10,007 10,597 11,190

Employee benefit obligations 86,990 91,987 91,987 97,138 102,869 108,630

Current liabilities 2,890,030 2,969,668 1,976,977 2,081,027 2,200,450 2,323,854

Trade creditors 975,040 1,293,079 300,387 300,387 318,110 335,924

Accruals and provisions 84,459 83,237 83,237 87,898 93,084 98,297

Consumer Deposits - Services 291,839 204,699 204,699 216,162 228,916 241,735

Value Added Tax 100,901 384,948 384,948 406,505 430,488 454,596

CoJ 917,727 436,132 436,132 460,555 487,728 515,041

Other UAC's of CoJ 3,635 24,871 24,871 26,264 27,813 29,371

Current portion of non-current liabiliites 512,559 538,679 538,679 583,256 614,310 648,890

Fleet lease obligation 3,868 4,024 4,024 - - -

Total equity and liabilities 11,141,298 12,780,895 10,987,634 12,854,220 14,925,546 17,026,833

BUDGET


Annexure D: Annual Corporate Balanced Scorecard

BSC

Perspective

Performance

Objectives

Key Performance

Indicator We

igh

t

Un

it

Me

asu

re

2

01

4/1

5

Ta

rge

t

20

14

/15

Actu

al

(Bas

eli

ne

)

20

15

/16

Ta

rge

t

20

15

/16

Q2

Ac

tua

l

20

16

/17

Ta

rge

t

Ris

k i

n

ac

hie

vin

g

se

t ta

rge

t

Res

po

ns

i

ble

Pe

rso

n

Ref

Nu

mb

er

City Priority Increase Active and Engaged Citizenry

Customer &

Stakeholder

Perspective

Weight 25%

Increase

Customer

Services

Weight 100%

Customer Satisfaction

Level Index on Water &

sanitation

(conducted

independently on behalf

of JW)

10% % 69 66 70 AT 70 None C&SR 1

% water bursts restored

within 48 hours of

notification

30% % 95 80.70 95 82.30 95 None COO 2

% Sewer blockages

cleared within 24hrs of

notification

30% % 95 92.66 96 93.35 95 None COO 3

% correctly read meters

(actual consumption vs

estimated) on a monthly

basis, per CoJ's Billing

system

30% % 95 90.94 95 87.7 95 None FD

4

City Priority Create Sustainable Human Settlements

No. of sewer blockages

per 100 km of network

length per annum 45% No 441 447 406

255.6

4

447

Reduction of

capital budget

will reduce the

length of sewer

remains to be

replaced

COO 5


BSC

Perspective

Performance

Objectives

Key Performance

Indicator We

igh

t

Un

it

Me

asu

re

2

01

4/1

5

Ta

rge

t

20

14

/15

Ac

tua

l

(Ba

se

lin

e)

20

15

/16

Ta

rge

t

20

15

/16

Q2

Ac

tua

l

20

16

/17

Ta

rge

t

Ris

k i

n

ac

hie

vin

g

se

t ta

rge

t

Re

sp

on

si

ble

Pe

rso

n

Re

f

Nu

mb

er

Internal

Processes

Perspective

Weights

40%

Reduce

service

interruptions

& ensure

reliable

services

Weight 30%

No. of pipe bursts per

100 km of network

length per annum 45% No 266 273 259

168.21

249

Reduction of

capital budget

will reduce the

length of water

remains to be

replaced

COO 6

% compliance with

drinking water quality

standard on E. Coli

(SANS 241)

10% % 99% 99.80 NA 99.9 99 None COO 7

Increase

access to

basic

services

Weight 30%

% informal HH with

access to water at

minimum LoS1

( Cumulative No of HH)

40% % 90.05

94.01

(133 164)

HH

96.14

(136786)

HH

94.01

97.84

(139 214)

HH)

Dependant on

budget

availability

COO 8

% informal HH with

access to sanitation at

minimum LoS1

60% % 44.11

44.60

(63462)

HH

46.37

(65989)

HH

44.98

46.80

(66589)

HH)

Budget

reduced for

2016/17

COO 9

Contribute

towards

National

Development

Goals

Weight 20%

No. of Jobs created

based on EPWP 33% No 5 357

4154 3 000

1221 2 800 none COO 10

No. of registered

contractors on Jozi

@works pipe

replacement

programme to complete

second projects and

submit portfolio of

evidence to CIDB for

32% No

1st

Trial

Projec

t

Compl

eted

for 65

contra

First trial

projected

awarded

50

All

contr

actors

at

30%

constr

uction

of first

50

Contractors

resigning from

the incubation

program and

thus less

contractors

graduating to

4CE by 2016

COO 11


BSC

Perspective

Performance

Objectives

Key Performance

Indicator We

igh

t

Un

it

Me

asu

re

2

01

4/1

5

Ta

rge

t

20

14

/15

Ac

tua

l

(Ba

se

lin

e)

20

15

/16

Ta

rge

t

20

15

/16

Q2

Ac

tua

l

20

16

/17

Ta

rge

t

Ris

k i

n

ac

hie

vin

g

se

t ta

rge

t

Re

sp

on

si

ble

Pe

rso

n

Re

f

Nu

mb

er

grading

ctors projec

ts

and 6CE by

2018

Procurement

recognition spent from

Qualifying Small &

Exempted Micro

Enterprise as a % of

total BBBEE

procurement recognition

spend

35% % 135 117 135 116 125

Maximum

points

achievable is

135%

FD 12

Protect the

Environment

Weight 20%

Bacteria levels on

sewer spills with

negative impact to the

river

30%

%

10 %

reducti

on of

prior

year

33.33

10%

reduction

of prior

year

No

Data

10%

reduction

of prior

year

None

COO

13

Aggregated % of all

WWTW final effluent

compliance

40%

% 97 91.83 N/A 74.5 97

Dependent on

the revision of

the new

licence

condition

COO 14

Tons CO₂ offset in

greenhouse gas

emissions from WWTW

from Biogas Projects

30% Tons

CO₂ 2 659 2309 6 671

716 (Annu

al equivalent 1432)

4 671 None COO 15


BSC

Perspective

Performance

Objectives

Key Performance

Indicator We

igh

t

Un

it

Me

asu

re

2

01

4/1

5

Ta

rge

t

20

14

/15

Ac

tua

l

(Ba

se

lin

e)

20

15

/16

Ta

rge

t

20

15

/16

Q2

Ac

tua

l

20

16

/17

Ta

rge

t

Ris

k i

n

ac

hie

vin

g

se

t ta

rge

t

Re

sp

on

si

ble

Pe

rso

n

Re

f

Nu

mb

er

City Priority Ensure Financial Sustainability, Resilience and Return on Investment

Financial

Perspective

Weight 25%

Improve

financial

ratios

Weight 45%

% Non-Revenue Water

45% % 35 35.8 32 37.3 30

Dependency

on accurate

billing data

COO 16

Water consumption per

capita 5% l/c/d 310 320 308 313 305 None COO 17

Audit opinion from AG

SA 40% Clean Audit

Unqualified Audit

Clean Audit A/T

Clean Audit

Dependency

on CoJ

revenue

MD 18

Net Profit before bad

debt provision

10% R

billion 1.738 2.095 2.116

442

(Annu

al

equiv

alent

884)

2.309

Ongoing credit

control function

not being

agreed with

CoJ Finance

department

FD 19

Improve

liquidity /

cash flows -

Weight 10%

Bad debts as % of

revenue sales

100

% % 7 19.53 12 16.32 16.5

Ongoing credit

control function

not being

agreed with

CoJ Finance

department

FD 20

Improve

% confidence on asset

inventory data integrity 40% % 92 92 91 92 92 None COO 21


BSC

Perspective

Performance

Objectives

Key Performance

Indicator We

igh

t

Un

it

Me

asu

re

2

01

4/1

5

Ta

rge

t

20

14

/15

Ac

tua

l

(Ba

se

lin

e)

20

15

/16

Ta

rge

t

20

15

/16

Q2

Ac

tua

l

20

16

/17

Ta

rge

t

Ris

k i

n

ac

hie

vin

g

se

t ta

rge

t

Re

sp

on

si

ble

Pe

rso

n

Re

f

Nu

mb

er

infrastructure

condition

Weight 45%

Renewal rate of water,

sewer networks; and

WWTW electro

mechanical components

based on value"

60% % 1.5 1.7 1.1 0.8 1.0 Dependent on

capital budget COO 22

Learning &

Growth

Weight 10%

Ensure

Organisationa

l Excellence

Weight 100%

No. of female

employees as a % of

total staff complement

20% % 24 25.79 26 26.51 27 None HR&CS 23

% retention of

employees identified as

critical skills as per the

annual skills analysis

20% % 97 98.66 97 99.67 97 None HR&CS 24

Total training

expenditure as % of

identified payroll items

15% % 1.5 1.52 1.7 0.86 1.5 None HR&CS 25

OHS compliance

through NOSA star

system rating 30% Rate 4* 3* N/A N/A 4* None COO 26

IT Disaster Recovery

(DR) site established

and operational

15% No

1 Site

with

50

people

capaci

ty

Acquisitio

n of DR

Kit

1 Site

with 75

people

capacity

Tend

er for

site

award

ed

Annual

mock-test

of the

facility

None FD 27


Annexure D: Quarterly Targets

BSC

Perspective

Performance

Objectives


Un

it

Me

asu

re

20

16

/17

Ta

rge

t

Q1

Ta

rge

t

Q2

Ta

rge

t

Q3

Ta

rge

t

Q4

Ta

rge

t

Ref

Nu

mb

er

City Priority Increase Active and Engaged Citizenry

Customer &

Stakeholder

Perspective

Weight 25%

Increase Customer

Services

Weight 100%

Customer Satisfaction Level

Index on Water & sanitation

(conducted independently on

behalf of JW

10% % 70 AT AT AT 70 1

% water bursts restored within

48 hours of notification 30%

% 95 95 95 95 95 2

% sewer blockage cleared

within 24hours of notification 30%

% 95 96 95 95 95 3

% meters correctly read (actual

consumption vs estimated) on a

monthly basis, per CoJ's Billing

system

30% %

95 95 95 95 95 4

City Priority Create Sustainable Human Settlements

Internal

Processes

Perspective

Reduce service

interruptions &

ensure reliable

services

No. of sewer blockages per 100

km of network length per

annum

45% No 447 111.8 223.5 335.3 447 5

No. of pipe bursts per 100 km

of network length per annum 45% No 249 62.25 124.5 186.8 249 6


BSC

Perspective

Performance

Objectives


Un

it

Me

asu

re

20

16

/17

Ta

rge

t

Q1

Ta

rge

t

Q2

Ta

rge

t

Q3

Ta

rge

t

Q4

Ta

rge

t

Re

f

Nu

mb

er

Weights

40%

Weight 30%

% compliance with drinking

water quality standard on E.

Coli (SANS 241)

10% % 99 99 99 99

99

7

Increase access to

basic services

Weight 30%

% informal HH with access to

water at minimum LoS1

((Total Coverage to date -

Cumulative Serviced)

40% %

97.84

(139 214)

HH)

96.39

(136 786)

HH)

96.74

(136 786)

HH)

97.25

(138 286)

HH)

97.84

(139 214)

HH)

8

% informal HH with access to

sanitation at minimum LoS1

(Total Coverage to date -

Cumulative Serviced)

60% %

46.38

(65 989

HH)

46.38

(65 989)

HH)

46.38

(65 989)

HH)

46.38

(65 989)

HH)

46.80

(66 589)

HH)

9

Contribute towards

National

Development Goals

Weight 20%

No. of Jobs created based on

EPWP 33% No 2 800 400 1 240 1 940 2 800 10

No. of registered contractors on

Jozi @works pipe replacement

programme to complete second

projects and submit portfolio of

evidence to CIDB for grading

32%

No

50 AT AT AT 50 11

Procurement recognition spent

from Qualifying Small &

Exempted Micro Enterprise as

a % of total BBBEE

procurement recognition spend

35% % 125 125 125 125 125 12

Protect the

Environment

Bacteria levels on sewer spills

with negative impact to the river 30%

%

10%

reduced

2.5 5.0 7.5 10.0 13


BSC

Perspective

Performance

Objectives


Un

it

Me

asu

re

20

16

/17

Ta

rge

t

Q1

Ta

rge

t

Q2

Ta

rge

t

Q3

Ta

rge

t

Q4

Ta

rge

t

Re

f

Nu

mb

er

Weight 20%

Aggregated % of all

WWTW final effluent

compliance 40% % 97% 97 97 97 97 14

Tons CO₂ offset in greenhouse

gas emissions from WWTW

from Biogas Projects

30% Tons

CO₂ 4 671 1 668 2 376 3 544 4 671

15

City Priority Ensure Financial Sustainability, Resilience and Return on Investment

Financial

Perspective

Weight 25%

Improve financial

ratios

Weight 45%

% Non-Revenue Water 45% % 30 31.5 31 30.5 30 16

Water consumption per capita 5% l/c/d 305 305 305 305 305 17

Achieve Unqualified Audit 40% N/A

Clean

Audit AT A T AT Clean Audit

18

Net Profit before bad debt

provision 10%

R”

billion 2.309 539 1.045 1.569 2.309 19

Improve liquidity /

cash flows

Weight 10%

bad debts as a % of revenue

sales 100% % 16.5 16.5 16.5 16.5 16.5 20

Improve

infrastructure

conditions

Weight 45%

% confidence on asset

inventory data integrity

Cumulative performance

40% % 92 92 92 92 92 21

Renewal rate of water and

sewer networks; and

wastewater treatment works

electro mechanical components

based on value"

60% % 1.0 0.2 0.45 0.6 1.0 22

No. of female employees as a 20% % 27 26.5 26.5 27 27 23


BSC

Perspective

Performance

Objectives


Un

it

Me

asu

re

20

16

/17

Ta

rge

t

Q1

Ta

rge

t

Q2

Ta

rge

t

Q3

Ta

rge

t

Q4

Ta

rge

t

Re

f

Nu

mb

er

Learning &

Growth

Weight 10%

Ensure

Organisational

Excellence

Weight 100%

% of total staff complement

% retention of employees

identified as critical skills as per

the annual skills analysis.

20% % 97 99.25 98.5 97.75 97

24

Total training expenditure as %

of identified payroll items

15% % 1.5 0.30 0.70 1.0 1.5 25

OSH Compliance through Nosa

star rating

30%

Nosa

Star

rating

4* AT AT AT 4* 26

IT Disaster Recovery (DR) site

established and operational

15%

N/A

Annual

mock-

test of

facility

AT AT AT

Mock-test of

facility

conducted

27


Annexure D: KPIs Calculation and Definitions

REF KPI KPI CALCULATION FORMULA Defined as

1 Customer

Satisfaction Level

Index on water and

sanitation as

conducted by JW

N/A Customer satisfaction on Service delivery provision of water and sanitation services including uninterrupted supply and turnaround times in terms of the customer services charter

2 Percentage of

Water bursts

restored within 48

hours of

notification

(A) Number of WO Completed (Major and Minor Bursts) in Time (B) Number of WO Received (Major and Minor Bursts) (C) A / B = % Response Time (monthly)

The percentage water bursts repaired within 48 hours to the number of water burst reported as one of the service delivery functions linked to customer satisfaction.

3 Percentage of

Sewer blockages

cleared within 24

hours of

notification

A) Number of WO Completed (Sewer Main Blockages) in Time/(B) Number of WO Received (Sewer Main Blockages) (C) A / B = % Response Time (monthly)

The percentage sewer blockages cleared within 24 hours to the number of sewer blockages reported as one of the service delivery functions linked to customer satisfaction.

4 Percentage meters

read (actual

consumption vs

estimated) on a

monthly basis, per

CoJs billing system

Number of meters read/number of meter downloaded on CoJ billing = %

The percentage actual metered connection read to readable metered connections as one of the principal billing functions that links customer consumption with revenue performance.

5 Number of sewer

blockages per 100

km of network

length per annum

(A) Number of Works Orders received Sewer Main Blockages/(B)Total Length of sewer mains/100 (C) A / B = Number of Blockages per 100km (monthly)

Frequency of sewer blockages being experienced as an indication of the sewer infrastructure performance and condition.

6 Number of water

pipe bursts per 100

km on network

(A) Number of Works Orders received R&M Mains + Number of Works Orders received R&M Valves and Hydrants/(B) Total Length of water mains/100

Frequency of water bursts being experienced as an indication of the water infrastructure performance and condition.



length per annum

7 Percentage

compliance with

drinking water

quality standard on

E. Coli (SANS 241)

A) Number of tests Complying/(B) Number of tests (C) A / B = % Compliance (monthly)

The percentage of drinking water samples complying too the SANS 241 E.Coli standard to the number of drinking water samples taken.

8 percentage of

households in

informal

settlements with

access to water at

minimum LoS1

% Coverage = (Cumulative No of Households serviced / Total Number of Households in informal settlement

A basic water service refers to provision of water in informal settlements through the installation of communal standpipes.

9 percentage of

households in

informal

settlements with

access to

sanitation at

minimum LoS1

% Coverage = (Cumulative No of Households serviced / Total Number of Households in informal settlement

A basic sanitation service refers to provision of sanitation in informal settlements through the installation of Ventilated Pit-latrines (VIPs) and ablution blocks.

10 Number of Jobs

created based on

EPWP

N/A The Expanded Public Works Programme (EPWP) is a South African Government initiated programme aimed at creating 4.5 million work opportunities by employing labour-intensive methods.

11 Number of

registered

contractors on

jozi@work pipe

replacement

programme

N/A Number of registered contractors on jozi@work pipe replacement programme



12 Procurement

recognition spent

from Qualifying

Small & Exempted

Micro Enterprise as

a percentage of

total BBBEE

procurement

recognition spend

Formula: A = sum of (B x C) where

A is the sum total of BBBEE procurement spend

B is the value of procurement falling within the total measured procurement spend from each supplier

C is the recognition level of each supplier with a BBBEE certificate

1. The BBBEE procurement recognition spent figure for EMEs &QSEs comprises the sum total of measured procurement spend from each supplier in this categories, where EME are all exempted micro enterprises with a turnover of less than R10m and QSE are qualifying small & medium enterprises with a turnover of between R10m-R50m with a BBBEE scorecard or affidavit.

2. BBBEE procurement spend is based on actual expenditure incurred (i.e. invoiced amounts)

3. All goods and services procured within the relevant financial year, comprising operational and capital expenditure

13 Bacteria levels on

sewer spills with

negative impact to

the river

(A) Number of spills affecting the environment for the month/(B) Total number of spills for the month (C) A / B x 100 = % spills affecting the environment (monthly)

The percentage of the number of spills occurring at the Waste Water Treatment Works that have a negative impact on the E.Coli of the river or steam it is discharging in and having a negative impact on the environment.

14 Aggregated

percentage of all

WWTW final

effluent

compliance

A) (Total number of daily samples per Works per indicator per month complying with the limit in the water use licence) / (Total number of daily samples per Works per indicator per month) x 100 = % monthly compliance per Works per indicator in the water use licence

The overall percentage compliance of the Waste Water Treatment Plants to the compliance parameters as stipulated in their individual Water Use Licenses.

15 Tons of CO2 gas

offset in

Greenhouse

Gases emissions

(A) = End Reading, (B) = Start Reading, C = conversion factor to CO2. (A-B) X C = Tons of CO2

The mass of CO2 gas emissions off set due to the amount of green energy generated versus old technology coal fire energy generation.

16 Percentage Non

Revenue Water (%

UFW for 13/14)

Bulk water supplied – water billed for = Total UFW (kl)

Percentage reduction of the three components of Non-Revenue Water including physical (real) losses, commercial (apparent) losses and authorised unbilled metered and non-metered consumption.

17 Household water

consumption per

capita

(A) System Input Volume in the period under review, (B) Population as Census 2011 with 3.5% growth per year and C the number of days of the period under review. (D) HH Water consumption per capita per day = A/B/C

Volume of water supplied to each person per day including losses being experienced on the reticulation system.

18 Achieve clean

Audit opinion

Clean audit as per definition of AGSA; The financial statements are free from material misstatements, There are no material findings on the annual performance report, There are no

Clean audit opinion entails being unqualified in the audit areas covering, financial statements, performance against predetermined objectives as well as compliance with laws and regulations.



material findings on non-compliance with key legislation

19 Net Profit before

bad debt provision

Net Profit + Bad debt provision + CoJ Service Fee Bad debts are accounts receivable that a business cannot collect. The provision is used to estimate bad debts which businesses incur because customers sometimes cannot pay their bills on time, or at all. Bad debt provisions are recorded as an expense on the income statement; reduce the net profit as an allowance for doubtful debts which in turn reduce accounts receivable on the balance sheet.

20 Bad debts as a

percentage of

revenue sales

Bad debts/sales = % The ratio indicates the collection rate ( i.e. level of payments). It measures increases or decreases in Debtors relative to annual billed revenue and its effect on net profit. it provide an indication of the performance against quality of credit control (ensuring that what is billed is collected) and quality of revenue management (the ability to bill correctly).

21 Percentage

confidence on

asset inventory

data Integrity

Overall Accuracy =(Valuation Accuracy+Attribute Accuracy)/2 where Valuation Accuracy = (Condition/Age CG% +Extent CG%+Unit Rate CG%+EUL CG%)/4 Attribute accuracy = (Criticality_CG%+Performance_CG%+Utilisation_CG%+OpsCostGrade_CG%+Co-ordinateCG%)/5

The measure of overall accuracy of data contained in the infrastructure asset register.

22 Renewal rate of

water and sewer

networks; and

WWTW electro

mechanical

components based

on value

Renewal Rate = Total cost of infrastructure renewal expenditure divided by network replacement cost + WWTW electro mechanical replacement cost

Renewal rate of water and sewer networks; and WWTW electro mechanical components based on value

23 Number of female

employees as a

percentage of total

staff complement

No of female employees/ total staff complement The total female employees employed by the company as a percentage of the total staff complement of the company as at the end of the year and every quarter.

24 Percentage

retention of

employees

identified as critical

% Retention = R/N * 100 R= No of resignations N= Average staff (employee) complement

Percentage voluntary resignations by employees identified as critical skills include engineers and artisans as a percentage of the total number of employees in the specific category



skills as per the

annual skills

analysis

25 Total training expenditure as percentage of identified ratio of total payroll

Training Actual Expenditure / Actual Payroll x 100 = % (Actuals) The total expenditure on training interventions in the areas of training overheads, subsidised education, bursaries and training courses as a percentage of the total payroll expenditure

26 Disabling Injury incidence rate

(Number of disabling injuries x 200 000)/Total number of hours worked

A work-related injury that results in death, permanent disability, permanent partial disability or temporary disability. Disabling injuries include lost workday cases, restricted workday cases and noise induced hearing loss. These injuries are used in calculating the disabling injury frequency rate.

27 IT Disaster recovery site established

N/A ICT Disaster Recovery (DR) site established and operational

Documents

BUSINESS PLAN 2016/17 - Johannesburg Water...1.3 SWOT Analysis The SWOT analysis, as reflected in table 2 below, guides JW to identify the positives and negatives inside the organisation