Rand Water intends spending R4-billion on upgrading and refurbishing its distribution infrastructure in the next five years, the company announced in releasing its results on Thursday.
Of this, 57% would be allocated to augmentation projects and the rest to the renovation and upgrading of existing infrastructure, said Rand Water acting chief executive Zvinaiye Manyere.
He put the estimated replacement value of Rand Water’s infrastructure at R30-billion.
Manyere said R630-million was spent augmenting, refurbishing, upgrading and maintaining infrastructure in the 2007 financial year.
”We are ensuring that we are ready for the demands of 2014 and beyond …” he said.
Entering its 104th year, Rand Water has more than 3 000 employees and owns more than 3 000km of water-carrying pipelines, mainly situated in Gauteng.
It is chiefly responsible for providing bulk potable water to more than 11-million people in Gauteng and parts of Mpumalanga and the Free State.
In 2007, municipalities accounted for 92,1% of the 3 550 mega-litres sold a day, mines 6,5% and industry and other customers 1,4%.
South Africa’s demand for water is expected to reach 6 000 mega-litres a day by 2014.
Reporting a 25,2% increase in its surplus to R743-million for the financial year ending June 30, the company said this was despite growth of only 2,7% in the volume of water sold.
”Our supply was uninterrupted despite the fact that demand peaked at an all-time high during the hottest February and March on record,” said Rand Water chairperson Jean Ngubane.
The company attributed the surplus to improved efficiencies, cost controls and the impact of the reduction in the level of debt. It added that skills management had contributed to improved productivity.
Its revenue for the year grew 12,2% to R4,2-billion, and a strengthening in the balance sheet resulted in a debt to equity ratio of 0,21%, compared with 0,25% in the previous financial year.
Ngubane said that while only 59% of South Africans had access to clean, potable water in 1994, that figure had since risen to more than 83%.
Nonetheless, utilities like Rand Water could still play a significant role in reducing water and sanitation backlogs and improving levels of services in rural areas in support of local, provincial and national government imperatives.
He emphasised that poverty alleviation and commitment to the Millennium Development Goals remained a priority.
”Rand Water, among a limited number of water boards, has the financial capacity, asset base and skills to actively participate in and contribute to South Africa’s growth.
”Where necessary, we will work in partnership with other water service providers and we expect further developments in the not too distant future,” he said. — Sapa