16 September 2005 Press Release Operation Gcin'amanzi gains momentum Johannesburg Water, an independent public utility company, wholly owned by the City of Jo'burg to provide water and sanitation services throughout the city, has embarked on an ambitious and far-reaching project to conserve water and improve the level of service delivery to its customers in Soweto. Since its formation in 2001 Johannesburg Water has built a solid reputation as a reliable supplier of water and sanitation services to the residents of our city. The quality of the water coming out of our pipes is among the best in the world and our levels of service delivery and response to complaints are constantly improving. However, an issue of growing concern to us since the formation of the company was the enormous volume of water that was unaccounted for each day because of leakages within the municipal network and on individual properties. Much of these losses attributed to the ageing network of pipes delivering water to the city, especially Soweto. The apartheid government planning led to inadequate investment in infrastructure and the introduction of an inferior water reticulation system. The results were being experienced by the residents of Soweto decades down the line. It was for these reasons that Johannesburg Water, in 2003, launched a multi-million project called Operation Gcin'amanzi in Soweto, with the intention of reducing the severe water losses which amounts to about 7 billion litres of water a month. Water is the source of life, and introducing the free basic water strategy in September 2000, President Thabo Mbeki identified it as a key element in the development of our people, in the eradication of poverty and in creating a better life for all. Operation Gcin'amanzi is a massive and bold investment in new water infrastructure to provide a better service to our customers, access to the free basic 6000 litres of water per month, but also to ensure substantial savings to the city over the longer term. In August 2003 when the project was launched the Executive Mayor of Joburg, Clr Amos Masondo, applauded Operation Gcin'amanzi as a key part of our citywide strategy to provide the people of Johannesburg with the quality of service they deserve and as one of the innovative programmes to extend the reach of the water network but also to bring home the message of responsible consumption. The City of Jo'burg is fully aware of the important role that water plays in the lives of all the people in our communities. It is the source of life and the basis of our daily existence. The city's commitment to provide quality water to our people is reflected in the city budget where the allocation for free water has increased from R36 million in 2002/03 financial year to almost R100 million in the current financial year. As part of the project, leaky taps, faucets and plumbing fixtures in households are being fixed or replaced with durable new fittings free of charge. Experts from Johannesburg Water are always readily available to advise residents on the most effective ways to conserve water and our 24-hour water helpline responds to complaints as they come. Another part of the project is the installation of free-payment water meters in each and every residential property in Soweto. This system of water management brings a number of additional benefits to residents and consumers of water. They will be able to manage their own consumption and control the usage of water more effectively. The system gives an accurate read-out of actual consumption in every household ensuring that the residents of Soweto no longer have to pay for water wasted or lost in other parts of the network. Today, we proud to say the project is gaining momentum since its implementation in 2003. This follows the successful completion of the Phiri prototype where 99 % of residents have opted for the installation of free-payment meters. The following interventions have been implemented successfully to date: replacing and upgrading the water reticulation pipes repairing of leaking household plumbing fixtures metering of properties with a free-pay meter to allow for the monthly dispensing of free 6 000 l per stand and then paying based on actual consumption thereafter creation of employment opportunities to assist in the roll out these measures and provide skills An intensive education and awareness programme is part and parcel of the project to ensure community understanding of the project and instill awareness on customer rights and obligations, within the context of the project. More than 400 community facilitators from the affected communities have been employed and trained to carry out door to door consultation with home owners prior to the installation of free-pay meters. This compliments the community and wards meetings that are held regularly by local ward councilors. The education and consultation interventions are paying off: to date more than 25 250 households are now equipped with free-payment water meters water, supplied to each stand has dropped from 66 000 litres per month per stand to about 11 000 litres per month per stand approximately R10, 6 million has been saved on water losses 4, 016, 221 kl (over 4 billion) litres of water has been saved to date and 1 527 employment opportunities created for local labourers Average water consumption and payment levels in the areas are that 57% of customers are using more than the free 6kl basic water allocation, and only spending R40.56 per month. Further benefits of the project include the debt write-off and the indigent's policy that has recently been introduced by the Executive Mayor of the City of Johannesburg. Plans are already underway to prepare for the next phase of the macro project targeting a further 30 000 households. As the project roll-out gains momentum, the after-care support programme will be intensified to ensure that a more efficient customer care and complaints handling process is in place. Through the project residents can also look forward to better and more consistent service delivery. It will go a long way to address issues of affordability and should reduce the amount a normal household spends on water every month. The new free-payment system also bring a new dimension to payment for essential services and empower the residents of Soweto to take greater control of their own expenses. Johannesburg Water remains committed to its objective of bringing Joburg's liquid gold under better control and improving service delivery in general. With measures like these, it is the customers who are sure to be the main beneficiaries, in this case Soweto customers. We also have a mandate to provide our customers with high quality water at affordable prices. We are confident that Operation Gcin'amanzi is another example of our commitment to excellence in service delivery to the people of Johannesburg. Issued by Gerald Dumas Managing Director: Johannesburg Water For enquiries please phone: Jameel Chand Senior Manager: Marketing and Communications 011 688 1545 082 452 0694