e r 2 - Umgeni Water

Chapter| Self-Appraisal5.1.5 For the strategic objective ‘manage stakeholder relations’ targeting the outcome ofstakeholder understanding and support:• Umgeni Water has made progress towards engendering understanding and support from statutory,contracted and non-contracted institutions in respect of: business planning, capital improvementprogrammes, operating budgets and tariff structures, performance with plans, and service delivery,amongst others.Highlights include:• Engagement with DWA at its strategy planning session in December 2010, where the twelvegovernment outcomes were presented and the six outcomes that were relevant to the ExecutiveAuthority and DWA clearly articulated.• Collaboration with KZN CoGTA in organising and participating in the KZN Water Summit inDecember 2010, where participation and input into the key issues affecting the water sector weremade.• Participation in the KZN Cabinet Lekgotla session.• Appointment of the Chief Executive to the KZN Planning Commission.• Arising from the Minister’s Directive to assist OR Tambo, the organisation concluded an agreementto operate a total of 70,500 cubic metres per day water treatment works and associatedinfrastructure for OR Tambo DM (further details of which are provided in chapter 11 of this businessplan).5.2 Performance in relation to the Financial Perspective5.2.1 For the strategic objectives ‘contribute to an affordable tariff,’ ‘maintain an optimal debtlevel,’ ‘improve return on asset,’ and ‘enhance shareholder value,’ which are targeting theoutcome of financial viability:• The medium-term trend shows slowing in revenue growth due to slowing in volume growth.• The organisation has, at least in the past five years, provided a tariff consistent with customerexpectations, cost recovery and enabled reasonable provision for infrastructure expansion. Themedium-term trend is however a slightly higher (above inflation rate) tariff that will enable costrecovery for water resources developments to assure future raw water supplies.• Regional Bulk Infrastructure Grants were allocated for the Mhlabatshane Bulk Water Supply and theGreater Eston Water Scheme.• The financial self-evaluation chapter that follows the financial plan of this business plan providesmore details on the achievement of this outcome.5.3 Performance in relation to the Developmental and EnvironmentalPerspective5.3.1 For the strategic objective ‘contribute to the national developmental agenda and reductionof backlogs’ targeting the outcome of community and environmental sustainability:• As part of ensuring assurance and security of bulk water supply to category B municipalities,Umgeni Water is developing the following water resource dams:o The Mhlabatshane Dam, which is under construction.o The Sikoto Dam and the Mvutshane Dam, for which the designs have significantly advanced.• As part of its contribution to the social economy:o Umgeni Water approved a cooperatives policy in September 2010, following which, fouropportunities for cooperatives have been identified in the areas of: Pipeline Maintenance;Reservoir and General Maintenance; Security; and Cleaning Services.o In addition, one cooperative was established as part of the Adopt a River project for whichUmgeni Water is the implementing agent for DWA.• Job Creation: significant jobs have been created during implementation of projects:Page 24 Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016