Corporate Social Investment

War on Leaks

South Africa loses an estimated 37% of fresh water through leaks. In monetary terms, this translates into R7 billion annually. As an initiative to reduce water losses, Department of Water and Sanitation is to train 15 000 youth as Water Agents, Plumbers and Artisans. Training of 3000 youth began on the 28th of September 2015.

To find out more about training, please click here to download the PDF file with all the information.

Management Approach

Umgeni Water is committed to the economic and social transformation of its stakeholders and the communities within which it operates. The organisation’s CSI projects focus, inter alia, on education and training, job creation, public health, community development, environmental conservation, arts culture and sport.

To ensure a focused approach to empowerment, Umgeni Water has in place a Broad-Based Black Economic Empowerment Policy that is aimed at facilitating, inter alia, the procurement of goods and services from Black-owned entities, promotion of entrepreneurship in historically disadvantaged communities and promoting participation of new business entrants in the water sector.

BBBEE Performance

In the year Umgeni Water revised and enhanced its BBBEE initiatives to expand and improve implementation through the continued implementation of Contract Participation Goals (CPGs). CPGs require tenderers to commit a certain percentage of the tender scope of work and value for which the tenderer will contract targeted enterprises through provision of meaningful economic opportunities.

Performance with Contract Participation Goals (CPG) Targets in 2013/2014

CPG targets set for 2013/2014 were 35% for construction contracts and 30% for professional services projects.

Forty-one (41) open tenders were awarded and signed as at 30 June 2014.  For these an average of 36% CPG was achieved with a total CPG value of R311 million being achieved.  The CPG per cent breakdown is listed below:

The average CPG achieved for construction contracts is 37.3% (R274 million). Of 20 contracts awarded:

  • Fifteen (15) achieved CPG  ≥ 35%;
  • One (1) achieved CPG of 34%;
  • One (1) achieved CPG of 33%;
  • Two (2) achieved CPG of 30%;
  • One (1) was exempted.

The average CPG achieved for PSPs (professional service providers) is 33.5% (R35 million). Of 12 PSP contracts awarded:

  • Eleven (11) achieved CPG ≥ 30%;
  • One (1) achieved CPG of 18%.

Nine (9) special materials tenders were awarded, of which:

  • Three (3) achieved CPG of 30%,
  • One (1) achieved CPG of 28%;
  • One (1) achieved CPG of 7.2%,
  • Two (2) achieved 0%, and
  • Two (2) were exempted.

As a result of this initiative nuances of economic transformation will be visible in the forthcoming period and demonstrate the success of this BBBEE initiative.

Monitoring BBBEE/CPG implementation at Umgeni Water

Umgeni Water has appointed two analysts, part of the functions of which is monitoring BBBEE/CPG implementation of awarded contracts to ensure:

(a) established enterprises are in fact engaging the targeted enterprises as per contracts,
(b) targeted enterprises are in fact performing the scope as per contract,
(c) payments due to targeted enterprises are processed at the correct rates and at agreed timeframes.

Performance with Broad-Based Black Economic Empowerment (BBBEE) in 2013/2014

The BBBEE target for 2013/2014 was 70% BBBEE spend and three (3) new entrants to be added to the database.

As at the end of June 2014, the BBBEE spend per cent was 65.6%. The BBBEE spend represents a 14% increase in BBBEE spend over the prior year (2012/2013: 51.6% spend). 

The calculation of this percentage is based on the BBBEE levels of the companies that have been awarded work by Umgeni Water which includes other SOEs. If the spend with SOEs is excluded, the BBBEE spend is 85.7%.

Fourteen (14) new entrants were added to the database.

Job Creation

In 2013/2014 Umgeni Water created a total of 3 375 temporary jobs created, comprising:

  • 1 073 -from Capex Programme
  • 2 302 -from s30 projects.

The 2 302 jobs created through s30 projects, comprise of:

  • 470 jobs created through the Greater Mbizana Bulk Water Supply Scheme to Alfred Nzo District Municipality,
  • 49 jobs created  through the Adopt-a-River Programme,
  • 1 783 jobs created through the Working-for-Water Programme.

Job Creation through Umgeni Water Capital Infrastructure Programme

Job creation targets for 2013/2014 were set as part of the capital infrastructure programme and in the year, a total of 1073 temporary jobs were created through infrastructure projects implementation, shown in Table 8.4

Table 8.4 Jobs created through Umgeni Water Capital Infrastructure Programme in 2013/2014

Project Jobs Created Wages Paid
Male Female Adult Youth Disabled Total Jobs
Richmond off Take to Umlaas Road 387 8 140 255 0 73 R1 063 917
Hazelmere Raw Water Pipelines 103 34 38 99 0 24 R552 522
Greater Eston Phase 1 216 52 89 179 0 54 R1 290 567
Lower Thukela- Gravity Main 874 245 391 728 0 205 R5 523 099

Project Jobs Created Wages Paid
Male Female Adult Youth Disabled Total Jobs
Groutville Booster Pumpstation 69 0 39 30 0 13 R411 278
Maphumulo Phase 2 592 293 333 552 0 154 R4 239 034
Hazelmere Water Works Upgrade 524 14 203 335 0 97 R2 899 878
Richmond Pipeline 901 33 262 672 0 177 R4 073 079
Lilliefontein Reservoir 78 10 35 53 0 15 R305 532
Howick Reservoir 102 24 84 42 0 22 R408 415
Quarry Reservoir 148 11 52 107 0 70 R511 137
Hazelmere Pumpstation 41 1 10 32 0 8 R158 832
Mhlabatshane BWSS 253 14 213 54 0 62 R1 199 626
Ellingham Link 167 24 57 134 0 33 R1 567 192
Greater Eston Phase 3 15 6 6 15 0 4 R113 414
Greater Eston Phase 4 61 33 31 63 0 20 R504 320
Greater Eston Phase 5 49 12 30 31 0 13 R324 041
Umshwathi BWSS 59 9 25 43 0 11 R214 107
Lower Thukela (55 Ml/d WTW civil works) 28 16 44 0 0 6 R136 533
Richmond Pumpstation 10 0 2 8 0 2 R52 347
Lower Thukela (Weir, Abstraction Works & Access Roads) 38 14 18 34 0 10 R208 389
TOTAL 4715 853 2102 3466 0 1073 R25 757 258

A total of R25.8 million was paid in wages to local labour.

Successful community engagement is a critical success factor for Umgeni Water during water supply infrastructure construction and is approached in a manner that would facilitate communities participating in the identification, definition, and joint solution seeking with other stakeholders regarding issues affecting their surroundings. Umgeni Water, through institutional and social development facilitators, consulted and involved communities to be part of the implementation process for all relevant water infrastructure projects in the year.  Each project had unique incidences or issues that required specific and relevant interventions. As a result of successful management of this, a foundation of trust is built with community stakeholders. The changes in political landscape and servitude encroachments are added factors that require re-negotiation.  Notwithstanding this Umgeni Water has found that all stakeholders are willing to work together in the interest of providing sustainable water supply access to communities.

Water Education and Community Outreach

Three (3) initiatives were implemented in the year:

    • Water Classroom programme
    • Community outreach programme
    • Adopted schools programme

    Umgeni Water continues to reap success from its Water Classrooms and Water Education Programmes it hosts at three operational sites, namely, the Durban Heights WTW, the Midmar Water Treatment Works (WTW) and the Darvill Wastewater Treatment Works (WTW). A total of 100 water classrooms reaching more than 4800 participants were conducted.

    Umgeni Water also continued to reach out to schools through special environmental day awareness programmes.

    Umgeni Water also continued to reach out to schools through special environmental day awareness programmes. These included road shows, clean-up campaigns and tree planting activities during Arbor Week, Wetlands Day, Water Week and Environmental Week.  Tree planting included 142 trees planted at various sites schools within eThekwini Metropolitan Municipality, iLembe, Ugu and Harry Gwala District Municipalities, including at the Amanzimtoti and DV Harris WTWs’ and at Ixopo WWTW. A range of water related educational materials were provided to communities in the year to raise awareness around various themes in the environmental calendar, most notably the dam safety awareness campaign which educates communities on the dangers of raw water contamination and swimming in dams.

    Umgeni Water worked with the twenty (20) schools it has adopted as part of a multi-year initiative which includes environmental education. Interventions during the 2013/2014 year has seen partnerships forged with various state departments in assisting schools within Umgeni Water’s area of jurisdiction:

    • Awareness events at the schools including arbor week, water week, wetlands and environment week.  Events included clean-up campaign conducted during environment week, wetlands awareness walk and tree planting activities at all adopted schools during Arbor week.
    • Sponsorship of garden tools to all adopted schools
    • Umgeni Water sponsored transport for six (6) adopted schools to visit the Durban Heights WTW for an education tour.
    • Work continued with various partners towards strengthening environmental management at the schools. Five of the adopted schools have received certificates for the School Environment Education Programme (SEEP) while one of the schools was registered in the Eco-schools programme. Both programmes are nationally recognised and aimed at encouraging children and youth to take an active role in environmental conservation.

    Umgeni Water implemented the following Corporate Social Investment (CSI) programmes in the year:

      • Maphephethwa CSI initiative-for which Umgeni Water continued to work with the Cooperative established in Maphephethwa towards the establishment of a block making business. Umgeni Water has assisted the community in site clearing and demarcation, purchase of tools and protective clothing.

      In addition, six (6) other CSI initiatives were implemented in the year:

        • Swayimani area-provision of Jojo tanks in response to water crisis.
        • KZN Eye Care Coalition-purchase of equipment for cataract surgery.
        • Refurbishment of potable water and sanitation infrastructure at Woodlands Primary School is in progress.
        • Heather Secondary School-refurbishment of laboratory and library resource centre.
        • Northdale Primary School-purchase of school uniforms for children from poor households.
        • Isidingo Primary School-Provision of additional classrooms to ease overcrowding.

        Adopt a River Project

        Umgeni Water continues to provide capacity and support as an Implementing Agent on behalf of the Department of Water and Sanitation (DWS), for the Adopt a River Project. The project focused on a 2km section of the Ncandu River that flows through the town of Newcastle.

        The project employed forty-nine (49) people (71% were women), of whom six (6) were trained as First Aiders, fifteen (15) were trained in Herbicide Application and all forty-nine (49) beneficiaries were trained in Health and Safety, and Alien Plant Identification. Over 1 000 bags of litter were collected during the course of the project.

        Apart from creating job opportunities for the forty-nine (49) beneficiaries, this project has been beneficial in that sensitivity has been built within the communities of Newcastle, regarding the impact of illegal dumping and negligence, exposure to aquatic invertebrates has been provided to schools using Mini SASS, learners and communities have participated in presentations and communication on the benefits of keeping the riverine environment healthy and sustaining the river ecology.

        Through this project, one of the beneficiaries was awarded a bursary from DWS for a degree study at the University of KwaZulu-Natal

        Job Creation and Support for National Government Programmes

        Umgeni Water provides support as an implementing agent to several programmes of national government including the Working-for-Water Programme, the aforementioned Adopt-a-River Programme and for Bulk Water Supply Infrastructure Development to Alfred Nzo DM, amongst other.  In 2012/2013 Umgeni Water created a total of 1790 jobs through these programmes, comprising:

        • 303 jobs created through the Greater Mbizana Bulk Water Supply Scheme to Alfred Nzo,
        • 420 jobs created through Adopt-a-River,
        • 1 067 jobs created and Working-for-Water.

        Cheque Handover  by Umgeni Water  at Heather Secondary School in Pietermaritzburg.

        Pictured from left:  Principal of Heather Secondary School, Mr Armugam. Moodley, BhavanaBharath, Head Girl of Heather Secondary School, Vaeshlin Reddy, Head Boy  of Heather Secondary School, and Mr Shami Harichunder, Manager: Corporate Stakeholder Management Unit, Umgeni Water, in the background is Head of Department for Mathematics and Science, Mr Daryll John

        A recipient of Umgeni Water’s Corporate Social Responsibility Fund was Heather Secondary School of Northdale, Pietermaritzburg. An amount of R70 00 was sponsored towards the upgrade of school’s facilities and equipment.

        An elated Principal Mr Armugam Moodley said: “We are deeply indebted to Umgeni Water for its generous sponsorship which will be used to enhance the quality of teaching and learning at our school”.

        The Corporate Stakeholder Manger of Umgeni Water, Shami Harichunder, said:  “Umgeni Water has great admiration for the school’s determination to ensure it created an environment conducive to learning.  It was in this context that the financial contribution was made by Umgeni Water”.

        CSI Cheque Handover in Durban

        At a function held at the New Germany, Durban, offices of Umgeni Water on Tuesday, 6th August 2013, cheques were handed to representatives of the KwaZulu-Natal Eye Care Coalition, Isidingo Primary School, Heather Secondary School and Northdale Primary School. Among others, the function was attended by the Mayor of uMgungundlovu DM, Mr Yusuf Bhamjee; the Speaker of the eThekwini Metropolitan Municipality, Mr Logie Naidoo; Executive Committee member of the Msunduzi Local Municipality, Mr Thulani Xulu; the Chief Executive of Umgeni Water, Mr Cyril Gamede, and a member of the Board of Umgeni Water, Mr Visvin Reddy.