Highs in a year of lows - Umgeni Water delivers its mandate

Highs in a year of lows – Umgeni Water delivers on its mandate

The supply of water and sanitation services across difficult hilly terrain and vast rural areas in KwaZulu-Natal is a familiar challenge that Umgeni Water has faced for nearly 50 years. But Covid-19 provided entirely new issues that forced the water board to drastically change the way in which it operates.

While classified as essential workers, people working within the water and wastewater sector are unfortunately not considered ‘frontline workers’ like our colleagues in the health sector.

This is strange because there has been a justifiable increased focus on water and sanitation infrastructure and service delivery as a means of combatting the virus. While a lot of our support staff (human resource staff members work in the frontline and are crucial to the supply of water and wastewater services),” explains Dan Naidoo, regional manager of Umgeni Water.

In a bid to protect its core staff, who are fundamental to the provision of water and wastewater services, from the virus, Umgeni Water had to make operational changes. These company employees were transported to work and back home via specially arranged vehicles. Access to all plants was also restricted – making sure that only the necessary personnel were on site.

During the second wave of Covid-19, key members of the operations team left their families and were put into isolation in various hotel rooms or bed and breakfasts to keep them safe.

“This was a huge sacrifice; many of our staff members lived away from their homes and families for close to three months. However, infection rates among Umgeni Water staff members remained extremely low and there was minimal numbers with covid-19 infections,” adds Naidoo. with Covid-19, we further built upon those capabilities. Presently, we can now remotely operate nearly all key infrastructure (with a margin of safety),” says Naidoo.

Over the past 18 months, Umgeni Water has successfully evolved into an organisation that is largely running remotely. The water board has continued to fulfil its core mandate by responding timeously to breakdowns and repairing any failures, while meeting all water quantity and quality requirements.

“In addition to water and sanitation supply services, Umgeni Water worked closely with municipalities to make sure that a greater number of people had access to water, with boreholes and water storage tanks. The past few months have been challenging but also very rewarding for Umgeni Water,” adds Naidoo.

INFRASTRUCTURE DEVELOPMENT

As a consequence of Covid-19, the roll-out of infrastructure projects was slowed down by lockdowns, additional safety concerns, and difficulty in accessing materials. Presently, Umgeni Water has restarted many of its capex projects. There are currently over 25 development projects being implemented – i.e. pump stations, reservoirs, wastewater treatment works, pipelines, water treatment works, and bulk water supply schemes. The water board spends up to R2 billion annually on capital expenditure and serves a mix of municipalities that are either large and urban or very rural and remote areas.

In fact, close to 40% of our capital expenditure is dedicated towards infrastructure projects in those areas,” adds Naidoo.

“For many years. Umgeni Water has directed a significant amount of its own resources or funds to co-fund large infrastructure projects, with funds from the Regional Bulk Infrastructure Grant, towards providing water and sanitation services to rural municipalities by putting infrastructure in the ground (like the uMshwathi Regional Bulk Water Supply Scheme).

We also assist them with water demand management strategies and conservation.” Naidoo explains that Umgeni Water is unique in that it is not a centralised water board – its infrastructure, which is spread across KwaZulu- Natal, feeds different areas across municipal boundaries. “We have committed to supply water and sanitation services to remote areas. By supplying infrastructure to these places, we prevent the influx of people to other municipalities that have water services. The resettlement of people to these areas put an additional strain on that infrastructure. This is the purpose of an SOE – we invest in places where no other businesses wouldn’t, creating economic growth.”

ASSET MANAGEMENT

While Umgeni has a capex programme that builds new infrastructure, it also has a structured asset management strategy that takes care of existing infrastructure.

Naidoo maintains that Umgeni Water has a thorough approach towards the management of its infrastructure. “Asset management is a fundamental component to a successful infrastructure business. We have a clear asset management strategy that is internationally benchmarked. A significant portion of our expenditure is geared towards maintenance and extending the life of our assets.”

Over the past two years, Umgeni Water has adopted the international standard of asset management – ISO 55000. “Due to Covid-19, there has been no one in the country that can do the certification, but Umgeni Water has been audited against ISO 55000 and looks forward to achieving the certification in due course,” says Naidoo. “Asset management adds further value to our balance sheet and assists in making water more affordable for everybody.”

KwaZulu-Natal is the gazetted supply area of Umgeni Water and Mhlathuze Water and straddles a total geographical area of 94 359 km2, which is home to 11.3 million people and 2.9 million households. KwaZulu- Natal is comprised of:

• 1 Metropolitan Municipality

• 10 District Municipalities

• 43 local Municipalities

• 14 of these Municipalities are water services authorities as defined in the Water Services Act (No. 108 of 1997). In the reporting period, Umgeni Water has focused on service delivery and largely derived revenue from seven customers:

• iLembe District Municipality

• Ugu District Municipality

• Harry Gwala District Municipality

• uMgungundlovu District Municipality

• Msunduzi Local Municipality

• uThukela District Municipality (the agreement between uThukela District Municipality and Umgeni Water has ended, with the handover of infrastructure on 30 June 2021). These customers account for 44% of the KwaZulu-Natal area and are home to 72% of the households.

Umgeni Water has also signed a 15-year Bulk Supply Agreement contract with King Cetshwayo District Municipality starting from 1 July 2020.

This includes:

• the operation and maintenance of 30 potable water schemes (water treatment plants and package plants)

• operating a total of 155 borehole schemes across the district. Umgeni Water’s infrastructure assets in support of its bulk water services business comprise:

• approximately 1 260 km of pipelines and 67 km of tunnels

• 15 impoundments

• 20 water treatment works

• 11 wastewater treatment works. Umgeni Water delivers some impressive numbers, which include:

• despite a 0% tariff increase for the 2019/20 year, Umgeni Water had an 18% increase in profit over the corresponding period in 2019

• it received an unqualified audit from the Auditor General

• bulk wastewater treated annually: 32 million m3

• raw water abstracted from 18 abstraction systems and dams: 506 million m3.