Annual Report 2024

Report from the Chairman

Over the past year I have experienced many firsts. The first of those was Kouga Dam overflowing; a first experience as a farmer in the Gamtoos valley where I have, for the past eight years, farmed, as it were, “dry” alongside my fellow farmers. It is with great excitement, hope and thanksgiving that we have experienced a Creator who always provides. I do not have the words to express how wonderful it is to be able to farm with good rain and an excellent water supply. For this we need to acknowledge the Gamtoos Water team and the management committee. Another first for me has been to serve as both a committee member and as the first female chairman of the management committee.

A state water scheme like Gamtoos Water often encounters large and unforeseen expenses. This past financial year has not been an exception. It happens in the best of households, and even more so in those of farmers. The amendment to our water tariffs has been difficult for us all, but they do enable the accomplishment of enormous breakthroughs. Algae management has been greatly improved, ensuring good water quality for us as consumers, and bringing about long-term savings. The renovation and maintenance that was planned and undertaken in previous years is now paying off. And more big plans are afoot to ensure that the scheme remains a well-oiled machine. I stand in full support of our skilled staff under the guidance of Rienette. We are in excellent hands!

I recently spent time in Namaqualand (another first for me). The spectacle of floral splendour was a delight for the eye. It makes one realise what a little bit of rain can accomplish. The Richtersveld with its scorched hardness and aridity takes one’s breath away, yet I am amazed at how it is possible to make a living in the desert.

May we never be without water! It was with nostalgia and excitement that I returned to our valley with its patchwork of green lands. It is great to farm, and especially great with such a fantastic scheme and a team that continues to serve us all so effortlessly!

Adelé Bain

Report from the Chief Executive Officer

South Africa is indeed a unique country. We have the best rugby team in the world, some of the best swimmers in the world, among the best relay teams in athletics, and one of our own is the UFC middleweight champion. At Loftus, during the showdown with the All Blacks, every spectator belted out the national anthem, as they sang together. Every South African, whether on the grandstand, or in front of the television, is proud of our country and of the deep-seated sense of belonging that it evokes in us.

The passing of a year changes the landscape. Gamtoos Water knows that an organisation can only survive by means of resilience, astute planning and daring.

2024 was once again a dynamic year. A new water users association was proclaimed by the Minister of Water and Sanitation. And a considerable portion of the year was devoted to the creation of the management committee for this entity.

This year, no additional funds were generated by means of external projects. This is currently exerting pressure on the budget with the continuous need to maintain and improve the scheme so that infrastructure can be preserved. The water tariffs, which were subsidised by external projects for several years, have been forced to be implemented at a higher rate of increase in order to reduce the gap over time.

We have our own Government of National Unity. In much the same way, the management committee considers all interesting plans that are brought to the table as solutions to our daily problems. Without the diverse personalities and views of our staff, the solutions would be far less creative and effective. Our staff is diligent about wanting to learn and to implement change, making them a valuable resource.

It is a privilege to work for an organisation where our water users are involved and committed, and to ensure the sustainable management of what is certainly the most important resource in our environment. We do this with passion and dedication!

Rienette Colesky

TRANSFORMATION INTO A WATER USERS ASSOCIATION (WUA)

Three is better than one

Institutionally, this was a busy year for Gamtoos Water.

On 6 October 2023, the Minister of Water and Sanitation proclaimed Gamtoos Water to be a Water Users Association (WUA).

Since 1991, Gamtoos Water has functioned as an irrigation board, a legal entity derived from the Water Act of 1956.

However, a Water Users Association is a statutory body under the National Water Act of 1998. As a statutory body, it functions in terms of a cooperative association and strives to manage water in a specified area at grassroots level. This entity has the mandate to manage water-related activities to the benefit of all water users.

The interim committee identified as part of the process, as required of them, elected a management committee (Manco) to see to the management of the Gamtoos Water Users Association. The election took place from 14 to 16 August and was facilitated by independent auditors.

The new water users association unites three catchment areas, namely:

Gamtoos

(L90A-C and L82J)

Sub-area 1

Baviaanskloof

(L81A-D and L82H)

Sub-area 2

Kabeljous

(L90G)

Sub-area 3

The creation of this new entity under the legislation of 1998 has been labelled as a milestone event.

These three catchment areas have different constitutions and, consequently, varied needs; thus, the challenge will be to integrate and manage these needs effectively.

In a nutshell, the focus is on the measurement and the management of the consumption, and an understanding of water use rights. This includes an effective system of administration that is accountable to the water users.

In the Gamtoos valley, there is the need for the management of a state water scheme with a complex infrastructure and cost structure. Water users in the Baviaanskloof and Kabeljous have a need to belong to an overarching structure that is knowledgeable about water rights, but which also understands the operation of the department in order to be able to supply answers and advice about water issues that arise daily.

The new management committee that was elected in August 2024, is as follows:

Sub-area 1

Patensie

SG Ferreira and Christof Opperman

Hankey

Noel le Roux and Khaya Katoo

Loerie

Manus Meyer and Adele Bain

Sub-area 2

Baviaanskloof

Rune Janse van Rensburg, Barend Lamprecht and Quentis Bezuidenhout

Sub-area 3

Kabeljous

Mauritz Rautenbach, Billy Hatting and Willem van Vuuren

Three emerging small farmers and/or Cooperative Associations will be chosen to be represented on the management committee. Gamtoos sub-committee will choose one committee member to represent the industries in the Gamtoos area.

The committee members from the environment are the Eastern Cape Parks and Tourism Agency, who represent the Baviaanskloof Nature Reserve as well as the Kabeljous Reserve Action Group (KRAG).

Other representatives include: Kouga Municipality, Nelson Mandela Bay Municipality, Department of Correctional Services, the Catchment Management Agency and the Department of Agriculture.

WATER MANAGEMENT 2023/2024

To understand the incomprehensible

On 29 September 2023, Kouga Dam reached a level of 100%. This event brought relief after a drought that had been the longest in the existence of the scheme. On 10 June 2024, the dam overflowed for a second time after good rain in the catchment area.

During 2023 the department changed the water year for water users of Kouga Dam from 1 November to 31 October. The reason for this is that October is regarded as the end of the rain season and the assumption can be made that water sources are then at their fullest during a cycle. As a result, the most accurate water restrictions can then be determined in terms of the level of the water sources.

Aside from these changes and Kouga Dam being at 100% during November 2023, the water use was restricted by the department by 15% for agricultural users and by 5% for household consumption.

The reason for this is an ongoing study, requested by the department, of the hydrology of the Kouga system to determine the yield of water from the catchment area. The finding of the study is that the yield is less than initially determined during previous studies. Historical studies used less accurate data. Technology has changed this situation.

Agricultural users receive 60.188 million cubic metres of water from Kouga Dam during a normal year’s 100% allocation. Hankey and Patensie municipalities also receive an allocation as does Nelson Mandela Bay Municipality. During a full-quota year that amounts to 23 million cubic metres of water per year.

Water rights in the Kabeljous and the Baviaanskloof are based primarily on extraction from rivers and boreholes. These rights occur at various stages of the verification and validation process determined by the department. One of the main objectives of Gamtoos Water in the short term is to assist water users to complete this process.

The following crops are cultivated in the Gamtoos, Baviaanskloof and Kabeljous catchment areas:

  • Gamtoos: citrus, blueberries, strawberries, prepacked vegetables, cash crops and dairy cattle.
  • Baviaanskloof: feed for small livestock, vegetable seed, and grain.
  • Kabeljous: pasture (ryegrass, lucerne, kikuyu, etc.), dairy cattle, beef cattle, sheep, game, citrus, avocados, and vegetables.

Tourism is also an important stream of income in all three catchment areas.

During 2022/2023, the water year was adjusted by the department from 1 June to 31 May. During 2023, an adjustment was once again made by changing the date of the water year from 1 November to 31 October. The result of this was that, during 2023, a water year of five months was recorded (1 June to 31 October). For this reason, consumption figures are misleading. In fact, 3.8 million cubic metres were used by agricultural users during this period. The allocation varied between 35% for the first four months and 100% for October.

 

Year

Kouga Dam level on 30 June

Allocation for the water year

2024

100.31%

85%

2023

35%

35%

2022

15.37% 

20% 

2021

4.19%

15%

2020

7.11%

20%

2019

44.98%

85%

2018

7.89%

40%

2017

18.65%

40%

2016

68.03%

100%

OPERATIONAL HEALTH

The scheme

The dry periods of each year are the most important for our scheme.

The work is planned by taking the events during the year into account as well as through using information from the risk report for the scheme.

A few issues this year led to the fact that, in specific sections, the scheme was dry for a total of six weeks, so that thorough repairs could be done.

In broader terms, the following was done:
  • The necessary cleaning and repairs were done on the main canal with a specific focus being to upgrade the lower part of the scheme in Loerie.
  • D-canal was cleaned and repaired with specific emphasis on areas where the canal wall was porous.
  • Seunie, the automatic sluice, was replaced on D-canal. This sluice was replaced for the first time since the scheme was commissioned. Two knifegates were replaced on the C and D sections.
  • The upgrade work on B-canal was completed. The canal was cleaned, repaired and painted.
  • K-canal was cleaned and repaired.
  • For the first time, a specific dry period was allocated to G-canal. This canal was cleaned and repaired, and a significant portion of it was painted.
More specifically, the following was done:
  • Kouga Dam Siphon – Merwe du Preez Siphon and the covered canal that links the two siphons (A1): Dewatered, cleaned and inspected.
  • Andrew Prins Siphon (A1): Dewatered, cleaned and inspected.
  • Main Canal special maintenance on A94-95 in Loerie (900m).
  • General maintenance on the entire Main Canal:
    • Emptied and cleaned.
    • Repairs with bitu-putty and multi seal.
    • Concrete repairs done on selected areas.
  • Modification of humps: Inlet to Scheepers Dam Siphon, 94, 102 and 104: The humps were sawn open in the centre and fitted with a hump sluice gate.
  • The two sluice gates that divert or control water supply to the C and D canals were replaced with manual knife gates.
  • Special maintenance was done on B, D, G canals.
  • General maintenance was done on other branch canals.
Note: Where reference is made to ‘Special Maintenance’ below it entails the following:
  • High pressure washing of the entire canal, all cracks and joints.
  • Cleaning out of all cracks and joints with a compressor.
  • Repair of cracks and joints with bitu-putty and bitu-plastic.
  • Concrete repairs done where necessary (large holes or holes that travel through the concrete slab.)
  • Hairline cracks are sealed with Flintkote (a bituminous sealant).
  • Painting of the entire canal section with Flintkote (first layer diluted 50/50 with water, second and third layers are full coats).
The following is noteworthy for the dry periods of 2024:
  • Work was done with 20 contractors, each with 10 employees.
  • The workers received first aid and safety training, health education and confined space training. This is an important mechanism by means of which knowledge is ploughed back into our communities.
The following occurs on a daily basis on the scheme:
  • Control of vegetation and weeds along the canal system. This makes a significant difference during the intensive dry periods.
  • Dry land rehabilitation in various places on the scheme.
  • Maintenance of the system and the daily repair of leaks and breaks.
  • Management of our water supply. Provision of water to the lower areas of our scheme has proven to be a challenge. There are significantly more pivot systems than previously, which means that large volumes of water are required during shorter periods of the year. Various depth level gauges were installed during the year to manage this situation. The Loerie area has turned into a water demand system.
  • The quality of the water in the catchment area, the Gamtoos plain and Kabeljous is measured every three months and reported on various platforms.

The scheme is getting older and has already passed its lifespan. The reality is that it cannot be replaced by rebuilding it. The costs attached to that are enormous. For this reason, it is important to carry out thorough maintenance on the scheme on a daily basis. It has been found that the branch canals are in a particularly weak condition. In terms of planning, special maintenance must be done on all the branch canals over the next few years. Already, in 2024, a considerable difference has been made. The goal is to paint all the branch canals with a rubber layer after cracks have been repaired with cement or a flexible sealant. This process extends the lifetime of the canal and is also much easier to clean. The maintenance is minimal in comparison to that of the traditional cement canals.

However, the products that are used in this process are expensive. For this reason, work is done methodically and each year a specific amount is budgeted to purchase this product and apply it to the scheme.

For the foreseeable future, enough provision will have to be made for work on the branch canals during the dry periods.

FINANCIAL HEALTH

Gamtoos catchment area

Financial statements 2023/2024

(The financial statements mentioned do not include expenditure for the Baviaanskloof and Kabeljous catchment areas. Reporting of these two catchment areas will apply from next year.)

During 2023/2024, the focus was to manage the needs of Gamtoos Water as close to the budget as possible. There were no funds from external projects to subsidise water tariffs. This is problematic since there is a need for certain work to be carried out on the scheme in order to maintain and improve it. Additional expenses in terms of maintenance of the tar road, as well as efforts to bring the waste water treatment works (WWTW) in the catchment area up to standard, has put increased pressure on the budget.

The following is noteworthy in terms of the financial statements:

  • Total reserves amount to:
    • R 34.8 million (June 2024)
    • R 35.8 million (June 2023)

During the drawing up of the budget it was decided to make use of the reserves from the previous year to accommodate the increase.

  • Water tariffs advanced amount to:
    • R 34.9 million (June 2024)
    • R 34.1 million (June 2023)
    • Water tariffs income amounts to 90% of the income (2022/2023: 74.5%).
    • No income was received from external projects during 2023/2024.
    • R10.5 million was spent on consumable supplies and consultants with the goal to maintain the scheme.
    • Gamtoos Water has no long-term debt.
Budget 2024/2025

An increase of 12% is recommended.

  • Total budget: R43 873 690
  • Water tariffs income: R32 420 200
  • Water management charge (DWS): R  2 004 260
  • Consumption management charge (DWS): R  2 973 000
  • Nelson Mandela Bay Municipality: R  2 075 800

Although much hard work has gone into identifying new business in order to subsidise the water tariffs of our users, the level of subsidy will not be similar to that of the more than 22 years during which we implemented the work of the Department of Environmental Affairs.

Water tariffs for 2024/2025

An increase of 12% is recommended for water tariffs for the 2024/2025 water year.

Description

Previous Tariff

New Tariff

Water resource management charge (DWS)

R245.60

R266.40

Consumptive charge (DWS)

R373.60

R395.20

Gamtoos Water tariffs

R3 791.80

R4 278.72

Total (Basic for 80% or less of full allocation)

R4 411.00

R4 940.32

Grand Total (Full allocation)

R4 635.00

R5 228.32

Amounts do not include VAT.

Budgets will be drawn up in the 2024/2025 financial year for the Baviaanskloof and Kabeljous catchment areas.

PERSONNEL

“Outstanding people have one thing in common: An absolute sense of mission.” – Zig Ziglar

Our staff is a melting pot of cultures. Over many years we have developed tolerance and an understanding of one another. Among us, there is respect and togetherness.

We are proud of our work, and we go the extra mile. Each one is appreciated for what they bring to the table. This sometimes includes unconventional suggestions and ideas, but if one challenges the boundaries this often leads to creative and alternative solutions.

We are grateful for each one of you.

THE ROAD AHEAD

Tomorrow and the day after

Gamtoos Water understands that the pivot around which the Gamtoos plain’s economy turns is the availability of water. It is also the case in all agricultural areas, as in our sister catchment areas of the Baviaanskloof and Kabeljous. In many instances, it is the only source of income for communities.

It is our mission to manage the water sources in all three catchment areas in an effective and regulated manner. We will do so together with our water users, but also with any other entity or group that has an interest in water management.

In the Baviaanskloof there is a need for administrative assistance and for a link with the Department of Water and Sanitation.

This need is similar in the Kabeljous, but there are also other issues that, over time, must be handled in terms of the needs of the Kabeljous sub-committee and also of its water users.

In the Gamtoos plain, the dynamics and initiatives are naturally legion. Other than the normal water management issues there are matters such as water quality, supplementary sources of income, the maintenance of the road, and the preservation of our environment.

Over time, the most important risk areas for the scheme have been addressed, and the scheme has been stabilised. Attention will be focused over the next three years on the upgrading of the branch canals.

Water management is an enormous responsibility and an exceptionally important task. To supply water to users at the end of the scheme is a challenge. There has been investment in an electronic system to monitor the availability of water in the system and we are looking at alternative measurement means for areas that register abnormally high withdrawal during high demand times.

It has taken Gamtoos Water approximately three years to develop the new water management system. It is almost ready to function independently. A request has been made that the software developer should focus in the second phase on the availability of water use to the water users. An attempt will also be made to create an application that will draw meter readings into the system automatically.

Gamtoos Water strives to be service oriented towards our water users, but also to be accessible to our local communities and, in so doing, to help build Gamtoos, Baviaanskloof and Kabeljous together.

It is a privilege to have two sister catchment areas as part of our water users association. We look forward to new challenges, and to making the water use environment an example of effective water management at grassroots level.

Asimi, siyaqhuba.
We do not stand still; we move forward.

Passionate about people. Passionate about water.