RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Contracted for but not provided: Property, plant and equipment 2 544 694 2 140 768 2 764 401 2 544 694 2 140 270 2 764 401 Intangible assets 35 576 42 132 - 35 576 42 132 - Total Capital Contracted 2 580 270 2 182 900 2 764 401 2 580 270 2 182 900 2 764 401 Assets pledged as security

2021

Restated *

Figures in Rand thousand Group Rand Water 2023 2022 Restated * 2021 Restated * 2023 2022 Restated *

Capital commitments

Notes to the Consolidated Annual Financial Statements 4. Property, plant and equipment (Continued)

As at 30 June 2023 the Group pledged a portion of the Zwartkopjes farm amounting to R100.3 million, as security for the rehabilitation cost of the Panfontein sludge disposal site at end of useful life. Changes in estimates During the current reporting period, the Group reassessed environmental restoration obligation to rehabilitate and decommissioning costs arising from the sludge disposal site. An actual quantification of the rehabilitation provision was calculated based on the adopted rehabilitation approach which included the revision of the estimated useful life of the site. Rand Water recognised an additional amount of R8.5 million (2022: R9.7 million; 2021: R2.6 million) estimate based on the actual rehabilitated calculation value. Management has placed reliance on the work of an expert in determining the value which was based on a combination of phyto‑desiccation and water treatment residue removal approach. Future estimates are determined by using the forecast inflation rate as per projections from the four major banks and the financial information from market news centre (Bloomberg) for a period of three years.

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