Zinwa poised to soar to greater heights: CEO

water authority
Q: The last couple of years have witnessed an increasing demand for fresh water, be it for domestic use, industrial and agricultural. Can you give us an assessment of Zimbabwe’s water needs and current available supplies?
A: Zimbabwe, like any other country in the world continues to see an increase in the demand for fresh water mainly due to urbanisation, the current upward trend of our economy and the increase in the number of players in the field of agriculture following the land reform.
In Zimbabwe we count ourselves to be very lucky because we still have a lot of fresh water in our dams, rivers and aquifers. This water is so abundant. Our challenge comes when it comes to the provision of treated water. In this regard we have always had challenges and demand is now outstripping supply. This is largely to the growth of urban populations, which is no longer commensurate with the water treatment infrastructure. Other challenges such as ageing equipment and power outages have also not spared us hence complicating this situation.
Q: In the advent of agricultural reforms, more farmers are joining the stream for irrigation on their plots or holdings. Are the new farmers conversant with the water laws and the obligation to pay for water used?
A: The new farmers have presented us with a challenge in the last years. Most of them did not appreciate the water laws and I think it was because they were coming from communal farming areas where there was little or no commercial use of water. Most of these farmers have not been paying for water and our records show that they now owe us money running into millions of dollars since 2009 when the multi-currency system was introduced. However, we need to maintain our presence on the farms and educate them to be complaint with the Water Act and payment of levies. In some cases, some farmers have even claimed ownership of water in contradiction of the Act and these have even denied other farmers the right to such.
Q: Is the revenue collected by the Authority at the current levels adequate to fund the maintenance and rehabilitation of dams
A: The water billed by the Authority every month is adequate to meet its operational needs, but the money that is collectable is insufficient, hence the bulk of the challenges we are currently facing. A lot of individuals and institutions are failing to pay for their water dating back to 2009 and the money we manage to collect cannot sustain the rehabilitation and maintenance of dams. People simply need to honour their debts and we will be home and dry.
Q: How many dam construction projects are taking place? Which would be prioritised? Will any be completed in the near future considering the funding provided in the 2012 Budget?
A: We have quite a hive of activity taking place at our dam sites. Construction is on at the giant Tokwe-Mukosi Dam, the Gwayi-Tshangani Dam and works are complete at the Bubi-Lupane Dam. Apart from these we also have work going on at Mtshabezi Pipeline and Wenimbi Pipeline. We are also expecting work to commence at Kunzvi Dam. While it is our desire to have all these projects completed at the same time, funding constraints remain our challenge. We hope Government will be able to provide more funds as we go. We, however, expect to complete Mtshabezi Pipeline in the first quarter of 2012.
Q: Zinwa at one point became the supplier of water and sewer services to all urban centres. The experience was chaotic and underfunded culminating in the cholera outbreak that claimed 4 000 lives. Can you now safely assure the nation that there are adequate water supplies for the centres that you still supply?
A: I would not want to say the situation was chaotic when we supplied water to major towns and urban centres. There are a lot of issues which were at play which were beyond our control then. For example, the economic situation then did not permit us to plan due
to inflation. The power aspect of the equation was not within our control as power issues are the province of Zesa. Chemical supplies were also being hampered by foreign currency shortages. Despite these challenges Government did its best to alleviate the situation.
Zinwa would like to thank the Government for its assistance during the period.
That said and done, I think we have adequate water supplies for the areas that we are supplying though our capacity continue to be compromised by incessant power outages and ageing equipment that frequently breaks down. But by and large, we are in control of the situation.
Q: How much is needed to upgrade and rehabilitate the existing water and sewer reticulation in those centres?
A: I believe US$40 million would be sufficient to upgrade our water, sewer and irrigation systems. Basically, the rehabilitation would entail the replacement of dilapidated equipment and the expansion of some water supply stations.
Q: The Authority runs some strategic business units like borehole drilling and still water bottling. How much revenue is being generated from these units and what are the expansion plans?
A: Currently, we are in the process of constructing a water bottling plant in Mutare and we have a fully equipped and functioning Groundwater Division that drills boreholes commercially.
These were brought on board to ensure the improved viability of the Authority and in line with our commercialisation drive. At the moment, we are still in the formative stages of these SBUs and we cannot talk of major revenues and profits yet.
As for borehole drilling, the performance is improving and it has managed to sustain its operations and is currently in the process of improving its capitalisation through the acquisition of new drilling equipment, which is a sign of viability. In terms of the bottling plant, we are still to complete the bottling plant and warehouse so that we are in compliance with the legal and certification requirements. Its outlook remains an exciting thought. We are also, through the commercial department, establishing synergies and alliances with various organisations so that we establish more business units. We will talk about these at the right time.
Q: Can these revenue streams ultimately reduce the Authority’s dependence on the fiscus?
A: The Authority has, of late, not been relying on the fiscus except for projects being funded under the Public Sector Investment Programme. Instead Zinwa is surviving on the revenue it is generating from its own activities. It is our belief that the revenue from the SBUs will go a long way in alleviating some of the challenges we are facing.
Q: Zinwa is working in a partnership with Arda and Ratings to develop the Middle Sabi and Chisumbanje irrigation schemes. How is the partnership performing? Can the country expect more such projects where you work with the private sector to rehabilitate and develop water reservoirs and irrigation capacities?
A: Zinwa is trying to have a working arrangement with Arda and Ratings in Chisumbanje. I also wish to state that Zinwa is prepared to work with the private sector in areas that improve the country’s water resources management and water availability to the people of this country.
I, however, also wish to state that these arrangements are only beneficial to us if they are premised on a proper legal framework that guarantees a win-win situation.
Q: Finally, what capacities do you think should be addressed before Zinwa can operate at optimum, efficiently and effectively?
A: My belief is that we should address our debt recovery and collection capacity so that we are able to collect money from the people who enjoy our services. This is fundamental in the sense that the revenue will allow us to operate viably.
We also need to address the aspect of a Government subsidy for non-profit-making water supply stations as these are also weighing us down. Government should consider subsidising these stations.