Sustainable Infrastructure Asset Management Jannie Pietersen [email protected] 031-3116381 24...

Sustainable Infrastructure Asset Management

Jannie [email protected]

031-3116381

24 November 2010

mailto:[email protected]

Introduction

• Understanding what to do first.

• éThekwini Roads

• éThekwini Stormwater and Coastal Management

• Challenges

• GRAP 17

• Where to from here?

Objectives of Infrastructure Asset Management

To provide an agreed level of servicelevel of service in the most cost effective mannercost effective manner for present and futurepresent and future communities

Infrastructure Assets Approximate Replacement Values (eThekwini)

Asset Group Replacement New Value (Millions)

Roads R 58,500.00

Water R 23,400.00

Buildings R 23,400.00

Electricity R 20,700.00

Sanitation R 18,000.00

Coastal & Drainage R 17,100.00

Other (uShaka etc) R 12,600.00

Land R 1,440.00

Fleet R 1,350.00

Durban Solid Waste R 1,080.00

Computers R 1,080.00

Parks R 1,080.00

eThekwini Transport Authority R 720.00

Total R 180,450.00

Understanding What To Do First?

Operational

Operational

Plans & Cost

Plans & Cost

Rate studies.

Rate studies.

Servi

ce S

tandar

ds

Servi

ce S

tandar

ds

and

and

Deman

d Model

s

Deman

d Model

sPerformance Performance MeasuresMeasures

&&BenchmarkingBenchmarking

CAPEX

New

Works

Total Asset

Total Asset

Managem

ent

Managem

ent

PlanPlan

Risk AssessmentRisk Assessment&&

Management PlansManagement Plans

Str

ate

gic

Main

tenance

Str

ate

gic

Main

tenance

(FM

EC

A,R

CM

)

(FM

EC

A,R

CM

)

ConditionMonitoring &Assessment

CAPEX / ORDM

CAPEX / ORDM

Optimised Renewal

Optimise

d Renewal

Decision M

aking

Decision M

aking

Fitting the Jigsaw Together

Fitting the jigsaw together

•GAP- Ex Level 1

IMESA’s IAM Training Courses

AM Organisational

Structure

Council

City Manager

DCM Forum

Steering Committee

Architecture CSCM Solid Waste

Electricity Parks Sanitation WaterRoads Finance

Flow Chart (Infrastructure Asset Management)

Note 11. Position /location(where the asset is)2. Condition assessment3. Present value and construction cost.4. Types of asset5. Construction date6. Person responsible for asset7. Photograph of asset

Note 4a) 5 year maintenance planb) community consultations

Note 2Historical failure and Predictive modellinga) Assess risk of failureb) Risk policyc) Risk Strategy

Note 3(eg a busy arterial road will require a higher level of service than a local road)a) politicalb) Customers (who are my customers)c) Financial d) Environmentale) Legislative

Decide on computerised

asset management

software

Buy-inPromoted by senior

Management

Knowledge of AssetsOn goingSee note 1

Asset Management Organisational

Structure

Failure Mode AnalysisSee note 2

Define Levels of ServiceSee note 3

Asset Performance

Standards(KPI)

Predict DemandPopulation growthCustomer trends

Asset Financial

Cash flowsSee note 4

Prepare Asset Management

Plan2020 Vision

Asset RenewalReplacement

Disposal

Link with IDP,Maintenance(Operational

Contracts)and Capital Contracts

Select Maintenance /

Capital Options

Asset SelectionPolicy

Policy

•(Done)

•(Done)

•(Done)

•(High Level Strategic Infrastructure Assets June 2007 – June 2009•Remainder June 2009 – June 2012)

•(85% Complete)

•(85% Complete)

•(Completion Date February 2009)

•(Completion Date February 2009)

Proposed Computer System (2004)

AMS 2007This is now VSMART

Asset Groups: Architecture, CSCM, ETA ,Water,

Sanitation, Solid Waste, Bridges, IS

IAM Software (VSMART)

Risk Management - Asset Failure

Condition Residual Life % Consumed

PoF % Life

ConsumedCoF

Population Served

BRE Rankings

•Redundancy Allowance

éThekwini Roads

• Introduction• Road Classification• Network Length• Traffic Flow• Visual Condition Index• Asset Value (Roads)• Maintenance Budget• Backlog

Introduction

• The road network of eThekwini Municipality is an economic resource and a valuable asset to the metropolitan area, the Province and its road users.

• The road network requires careful management and the Municipality was mindful of the implications of good road asset management when the electronic system was implemented.

• This system provides valuable information for road network management and planning.

Total Length = 5829 km

Road Classification Road Category

RISFA Classification

Description

UA 2Trunk roads, primary distributors, freeways, major arterials and bypasses used for primary urban distribution and linking urban districts/sectors.

UB 3 / 4

District and local distributors, minor arterials and collectors, industrial and CBD roads, goods loading areas and bus routes used for district distribution and to link communities.

UC 4Urban access collectors used for local distribution and to link neighbourhoods.

UD 5Local access roads (residential): Loops, access ways, access courts, access strips and cul-de-sacs.

UE Car parks, bus bays and taxi ranks.

UF Walkways, arcades and footpaths.

Distribution of annual traffic amongst road categories: UA, UB,

UC and UD

0% 20% 40% 60% 80% 100%

Length (km)

Annual traffic(million veh-km)

Length (km) Annual traffic(million veh-km)

UA 84 1,532 UB 1,442 2,632 UC 1,072 196 UD 2,842 104

– Very Good = 86% to 100%

– Good = 71% to 85%

– Fair = 51% to 70%

– Poor = 31% to 50%

– Very Poor = 0% to 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Very Good

Good

Fair

Poor

Very Poor

Rehabilitation Backlog

Visual Condition Index

Very Poor Condition

Poor Condition

Fair Condition

Very Good Condition

– Very Good = 86% to 100%

– Good = 71% to 85%

– Fair = 51% to 70%

– Poor = 31% to 50%

– Very Poor = 0% to 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Very Good

Good

Fair

Poor

Very Poor

Rehabilitation Backlog

12, 0% 124, 2%

1001, 17%

2374, 41%

2318, 40%

VCI Distribution - 2009/10Length (km) and Percentage (%)

Very Poor

Poor

Fair

Good

Very Good

Visual Condition Index 81% (4,692 km) of paved roads in either

a very good or good condition

• Severe to warning crocodile cracks have developed on 6% (318 km) of roads indicating an urgent need to inspect these roads for structural repair.

• Moderate crocodile cracks have developed on 12% (660 km) of the network, indicating an urgent need to investigate preventive or repair measures to delay further deterioration.

• A further 12% (690 km) of roads have isolated crocodile cracks indicating a possible need for preventive measures.

VCI distribution for paved roads, 2003 to 2009/10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2005 2007 2009/10

Le

ng

th (%

)

Very Poor Poor Fair Good Very Good

Current asset value versus maximum asset value for paved

roads, 2009/10

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Asset value (CDRC)(R million)

Max asset value (CRC)(R million)

R million

Asset value (CDRC)(R million)

Max asset value (CRC)(R million)

30,500 34,600 Total Replacement Cost (Including fill,

drainage etc) is R58500m

Asset Unbundling/Componentization

Determine asset components:

• Use standardisation (civil, electrical & mechanical)• Identify “parts” of the asset that require different maintenance or have different expected lives (i.e. riding surface, layerworks, embankments/fill, drainage, …)• Understand maintenance frequencies and types of maintenance required• Identify critical asset components

Road Rehabilitation Budget Allocation

0

50

100

150

200

250

300

350

400

2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09 2009/ 10 2010/ 11

Financial Year

Budg

et A

lloca

tion

(R M

illio

n)

Budget for maintenance and rehabilitation

YEAR UA ROADS UB, UC, UD ROADS

2010/11 R47 million R370 million




2014 onwards R55 million R330 million

All budgets and are given in 2010 Rand value.

Optimal annualized fund allocation of the

MTEF Budget, for paved roads

By 2012, the backlog of maintenance and rehabilitation of both UA and UB category roads should be been eradicated and the maintenance objective then shifts towards the UC and UD road categories.

Budget Constraints and Predicted Road Network Deterioration

Constant Annual R80 Million Budget (Cat. B, C & D): Condition Distribution

0%10%20%30%40%50%60%70%80%90%

100%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Year

Len

gth

(%)


Predicted Condition Distribution of Paved Roads under Current Funding Scenario

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20

03

20

05

20

07

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Le

ng

th o

f p

ave

d r

oa

ds

(%

)MTEF Budget


Historic Predicted

The analysis results prove that the current level of funding is sufficient to keep the poor to very poor roads at lower levels.

éThekwiniCoastal Stormwater and Catchment

Management• CSCM Asset Types

• Stormwater Network

• Pipe Lengths

• Cash Flow (from VSmart)

• Visual Inspection

• Coastal Management

CSCM Assets Types

• CSCM Assets covered in this AMP include both the High level Strategic Assets & Second tier assets (known and unrecorded catchment areas): – A) Coastal Structures: Piers, Outfall Structures,;– B) Culverts; – C) Canals; – D) Pipes;– E) Manholes, – F) Pumps and pump stations

CSCM Asset Statistics

Pipe Size (mm)

150 225 300 375 450 525 600 675 750 825 900 1050 1200 1350 1500

% 3.4 12.5 27.8 16.6 16.3 2.4 7.2 0.6 1.6 3.4 1.5 3.2 3.0 0.3 0.2

Percentage of pipe size to Total Length

Culverts :Total Length = 135.94 km

Canals :Total Length = 46.77 km

73.2%

Pipes :Total Length = 4892 km

Condition Assessment-CCTV

Infrastructure Assets

•Drainage – Stormwater Assets

Cash Flow Required

Regional sea-level rise

Mather et al. (submitted to the African Journal of Marine Science )

Region Port Regional sea-level

trends (mm yr -1)

Luderitz Western

Port Nolloth +1.87

Simons Town Granger Bay Mossel Bay

Southern

Knynsa

+1.48 (excluding Granger and

Mossel Bays)

Port Elizabeth Eastern

Durban +2.74

Sea-level rise scenarios for Durban

• 300 mm

• (90% chance of happening by 2100)

• 600 mm


• 1000mm


Central sewerage treatment works

•Def

end

•Retreat

March 2007 event (Durban)

GRAP 17 Project Overview

Grap 17 data required for these and many more

Grap 17Focus Areas IRO Grap 17 Requirements

1. Knowledge / identification of Assets1. On VSmart database – in GIS format

2. In the Fixed Asset Register (JDE)

3. Stand alone GIS systems in each Department

4. Corporate GIS database

2. Condition Assessment of Assets1. It’s required to assist in the review of the useful lives of assets and

impairment costs.

3. Useful Life of Assets(based on National Treasury Guidelines)

1. To be reviewed at least each reporting date

2. Estimation of UL is a matter of judgement based on experience.

4. Impairment1. Loss in future economic benefits

2. The carrying amount (cost – accumulated depreciation) of an asset exceeds its recoverable amount (amount asset can be sold for)

5. Unbundling / Componentisation1. Identify each component with a different useful life

2. Depreciate each component over its expected useful life

Identify Asset Location & Relevant Asset Information

• Ensure asset locations are captured (preferably in a GIS database)

• Use free GIS software (Accuglobe® or other)

• Aerial photographs (SPOT5 or CDSM) can be obtained for free by state owned organisations

Asset Valuation Methods• Infrastructure replacement costs can be calculated quickly

using a “rule-of-thumb” based on indicative rates for construction of new infrastructure

• Calculate Current Replacement Cost using existing asset information (such as asset dimensions)

• Use a simple and consistent asset valuation methodologyNo. Type List of Asset Sub-Types Cost Group Cost Group Definition Group code Design Life Unit Capital Rate

1 Buildings Administration - Private - Residential - Canteen - Lifegaurd Tower

High spec High specification buildings used for offices, work/accommodation

buhs 80 m2 R 8,000.00

2 Buildings Electrical substation - Pumpstation - Crematoria - -

Operational Electrical Substation buop 80 m2 R 6,000.00

3 Buildings Changeroom - Coldroom - Ablution - Garage - Store room - Parcel Counter - Paybooth - Sport Equipmentroom

Medium spec Medium specification buildings used for storage/garage maintenance etc.

bums 80 m2 R 5,000.00

4 Buildings Taxi Shelter - Bus shelter - Canopy - Shed - Minor Lifegaurd tower

Low spec Low specification buildings generally used as a shelter from elements

buls 80 m2 R 2,000.00

5 Minor structures Statue - Memorial - Monument - - Feature structure Structures with heritage or other purpose such as statues

msfs 10 No. R 25,000.00

6 Minor structures Low walls - Plant boxes - Surface run-off drain - Drain - Gutters - Pipes & Valves

External structure Low walls and other external structures (generally masonary)

mses 20 m2 R 1,000.00

7 Structures Retaining wall - - - - Retaining wall Walls used for embankments msrw 80 m2 R 3,000.00

8 Minor structures Stairs - - - - Access Staircases msac 9 Minor structures Cage metal/enclosed - Cage

metal/open - Cage wiremesh enclosed - Cage wiremesh/open - Cage wood/open

Miscelaneous Animal Enclosures and other structures not compatibile with another category

msmi 10 No. R 5,000.00

10 Gardens Feature garden - - - - Garden Feature gardens such as display gardens, herb gardens, rose gardens, rock gardens, cactus garden, zen garden

gaga 8 m2 R 1,500.00

Asset Unbundling/Componentization

Determine asset components:

• Use standardisation (civil, electrical & mechanical)• Identify “parts” of the asset that require different maintenance or have different expected lives (i.e. riding surface, layerworks, embankments/fill, drainage, …)• Understand maintenance frequencies and types of maintenance required• Identify critical asset components

Asset Condition

• Asset condition based on inspection information• Asset remedial actions based on asset component and

urgency of repair

Impairment

Audit Trail• Implement a Quality System (ISO9001 or

similar)– Data management– Document management– Procedures– Management systems

• Undertake database backups• Use systems with built-in audit trails• Take pictures

57

AchievementsIntegrated Infrastructure Asset

Management in éThekwini• First Draft IAMP for high level strategic

asset completed in December.• Eight Individual AMP – December 2009

Roads, ETA, CSCM, Architecture, Parks, Solid Waste, Electricity and Water (Sanitation).

•Technical Staff

•Close Quality Primary Gaps

•Condition Assessment of Underground cables/pipes.

•Understanding future demands.

Challenges

AM Benchmark - EM Water (RBA1) Nov 2008

0

10

20

30

40

50

60

70

80

90

100

P&P Info Sys D&K CommTact

Org People AMP Overall

0

10

20

30

40

50

60

70

80

90

100

Your Assessment Top 10% of Similar Agencies Globally

Average (50%) Best Appropriate Practice

AM Benchmark - EM Water (RBA1) Nov 2008

0

10

20

30

40

50

60

70

80

90

100

P&P Info Sys D&K CommTact

Org People AMP Overall

0

10

20

30

40

50

60

70

80

90

100

Your Assessment Top 10% of Similar Agencies Globally

Average (50%) Best Appropriate Practice

Get The Base

Foundations In

Place

Current Accounting Standards

“We should be looking forward understanding the future demands, and the most appropriate capital and maintenance programs to deliver the levels of service required & funded by our stakeholders”.Source: Dr John Sing, Qld / Roger Byrne Melb

Asset Management Plan:A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide a specified level of service. A significant component of the plan is a long-term cash flow projection for the activities.Asset Register:A record of asset information including some or all of inventory, historical, service, financial, condition, construction, technical and financial information about each asset.

AMP vs Register

The Asset RegisterDoes not

Tell us• The replacement strategy of an asset• The planned maintenance program• The economic life of the asset• The reliability and capacity of the asset

In other wordsIt does not tell usIt’s state of decay(when it will fail)

(CRC) Current Replacement Costs: example 1

(CRC) Current Replacement Costs: example 2

•It was acknowledged that there will be a need for a step up in funding to comply with AM to avoid just having book entries.

•CONSTRUCTION COST = R 91 141 584

•CRC = R 2 388 073 754

Understand Asset Risk

• Failure of 1 asset can cause catastrophic failure of other/supporting assets

• Combination of small failures (pumpstation and blocked drainage channel) coupled with a large storm event caused major damage worth significantly more than the value of the failed assets

•Total damage R20m•Total Asset Cost R4m•Maintenance Cost ±R20000

Challenge

Where to?

The Problem With Our Current Approach

• There appears to be over 25 different approaches being taken to AM.

• Only a few organisations have adopted a quality framework or maturity assessment approach to identifying a logical improvement program.

• Training programs are being developed and undertaken by different groups using different approaches across many industry groups.

• Every industry or asset type is being done differently by different groups.

• Asset valuations and depreciation activities have been undertaken without appropriate guidelines.

• Condition assessments are being undertaken using a variety of methodologies.

Proposed NAMS

• To develop a quality framework by which Infrastructure Assets are managed.

• To drive the National program• Proposed key roll players

– Government / Policy makers– Professional Associations– Industry Sectors– Appropriate Government Departments

Sustainable Infrastructure Asset Management Jannie Pietersen [email protected] 031-3116381 24...

Documents

Transcript of Sustainable Infrastructure Asset Management Jannie Pietersen [email protected] 031-3116381 24...