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23 November 2009
A Futuristic Perspective For Sustainable Infrastructure Asset
ManagementManagement
Jannie [email protected]
031-3116381
What is Infrastructure Asset MManagement
Management of the Asset over its Lifecycle :g y• It involves cost-effective long-term management
strategies• It needs to define levels of service and monitor
performance• It involves the managing of risk associated with failures• It involves the managing of risk associated with failures• The sustainable use of resources and continuous
improvement in IAM practice
The Short Definition of Advanced IAMThe Short Definition of Advanced IAM
Making theMaking theright decision / adopting the right
solutions at thesolutions at theright time for the
right costfor the right reasonsg
Across our whole portfolio of assets aspart of the business strategiespart of the business strategies
‘Making good investment decisions’
Objectives of Infrastructure Asset MManagement
To provide an agreed level of servicelevel of servicein the most cost effective mannercost effective mannerfor present and futurepresent and future communitiesfor present and futurepresent and future communities
Why Infrastructure Asset M ?Management?
It provides a platform for economic and socialIt provides a platform for economic and social developmentIt is the cornerstone of public health and safetyp yQuality infrastructure mitigates potential adverse environmental effectsGood Assets are taken for granted by communities until it failsIt represents major investment by communities, progressively built up over a long period.
Key Benefit Areas – Future Cost Reductions
Benefits – Improved Performance
Poor IAM can have a:Poor IAM can have a:
• Negative impact on business andNegative impact on business and economic growth
• Discernable decline in quality of life• Discernable decline in quality of life• Ripple effect on next generation
• Public concern and protests over poor p pservice standards
Drainage – Stormwater Assets
MindsetMindset
The importance of public infrastructure to any community can be measured by its status in y ythe mindset and routine agenda of individuals, communities and governments.
When the services provided by infrastructure are disrupted, its importance suddenly comes into focus : e.g. recent electricity disruptions.
Current IAM environment in SACurrent IAM environment in SA
• There is a strategic vacuum in manyThere is a strategic vacuum in many organisations
• Infrastructure planning is often fragmented and p g gshort term
• Funding allocations are often mechanistic g• There is a paucity of information• There is inadequate risk managemente e s adequate s a age e t• Implementation is cumbersome and• Capacity constraints are acuteCapacity constraints are acute
There is a Quiet Catastrophei i hwaiting to happen
It’s CharacteristicsIt s CharacteristicsSinister yet realWorks quietly and effectivelyWorks quietly and effectivelyNever stopsLike cancerNo respect for infrastructureRears its head occasionallyLoves inconveniencing peopleCan be managed
The Quiet Catastrophei i h
Our Response
waiting to happenOur Response
General awareness but often ignoredDon't take it seriouslyDon t take it seriouslyPrefer ‘false sense of security’React to its effectsReact to its effectsRather not plan for its effectsBl it f i tBlame it for our own mismanagement
What is theWhat is theQuiet Catastrophe
It’s….
Deterioration!!Deterioration!!Deterioration!!Deterioration!!
The Quiet CatastropheThe Quiet Catastrophe
It is becoming increasingl apparent thatIt is becoming increasingly apparent that aging and deteriorating infrastructure is beginning to detrimentally affect the socialbeginning to detrimentally affect the social, environmental and economic well-being of our community.y
This sinister force is deterioration:
A th t ill ti t dA cancer that will continue to pervade infrastructure.
80
90Historic and Average Condition Index (Roads)
50
60
70
on In
dex
(%)
20
30
40
Ave
rage
Con
ditio
Gap (Funding shortfall)
DETERIORATION
0
10
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
A DETERIORATION
Department Value (m) Budget (m)
% per year
Quantity Description % Required
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year- Do Nothing - Current - Improved Spending
Roads R32500 R239 0.7% 5875km Asphalt roads 1% to 3%
Water R13000 R280 2.2% 12150km Pipe (+Reservoirs etc)
1% to 3 %7% to 15%
Electricity R11500 R325 2.8% Lines, Sub Stations etc
7% to 15%etc.
Sanitation 10000 R248 1.5% 7500Km Pipes (+ pump stations etc.)
1% to 3%7% to 15%
Some Facts – Did you know?Some Facts Did you know?
1 Milli P Cit I1 Million Person City Is Being Built Every 5 Days GloballyGlobally
Some Facts – Did you know?Some Facts Did you know?
We need infrastructure to produce 19 BillionWe need infrastructure to produce 19 Billion meals a day (not all like this)
Growing the Asset DatabaseGrowing the Asset Database
• We are facing a catastrophe and we knowWe are facing a catastrophe and we know it, but we are building more and more infrastructure each day with less and lessinfrastructure each day with less and less provision, effort and funds to deal with it.
• And who is going to manage and maintain• And who is going to manage and maintain this infrastructure ???
There is an old saying thatThere is an old saying that someone pays forsomeone pays for
maintenance whether it is done or not.
Human CapacityHuman CapacitySouth African Infrastructure sector suffers from an
acute skills shortage.• One out of every 130 people in China is an
E iEngineer.• One out of every 220 people in Germany is an
EngineerEngineer.• One out of every 450 people in Australia is an
Engineer.g ee• One out of every 3200 people in South Africa
is an Engineer.
JobsJobs
• Maintenance creates jobsMaintenance creates jobs• Sustainable Infrastructure Asset
Management requires regularManagement requires regular maintenance over the lifecycle (design life) of the asset.
• Most of the maintenance is best done by labour intensive methods.
• Conservative estimates : 12 equivalent full-time jobs per year / R1 million budget.j p y g
cont …
• e g Maintenance budget for R10billion :e.g. Maintenance budget for R10billion : regular employment to approximately 120000 people120000 people.
• On certain selected civil engineering works : levels of employment = approximately 50: levels of employment = approximately 50 jobs per R1 million.
Sustainable Jobs :IAMSustainable Jobs :IAM• Pothole repairs • Road furniture repairs• Kerb repairs• Manhole and catchpit cover
repairs
• Trench reinstatements• Painting• Plastering
• Weed poisoning• Sign maintenance• Open channel maintenance
• Light electrical repairs• Plumbing repairs• Waste collection
• Painting robots poles• Steam cleaning• Stormwater pipe cleaning
• Sewer pump station maintenance
• Waste recovery for reuse and • Stormwater pipe repairs• Gravel road rehabilitation
recycling• Regular inspections of above
Public Infrastructure & Managerial Effort
C M 1
20 YRSAsset Creation 80% + of Effort Asset O&M
Rehabilitation 20% - of Effort
Design /Documentation
Construction
C.M.1
OPERATE & MAINTAIN96% OF LIFE 77 YEARS
20% of Effort
Plan
40 YRS80 YRS
C.M.2C.M.5
C.M.6
RenewalRehabilitate (1)
C.M.3
RenewalRehabilitate (2)
C.M.4
60 YRS
Long Lived Assets (60 - 80 YRS)C.M. : CONDITION MONITORINGBLUE AREA : OPERATION & MAINTENANCENOTE: CONDITION MONITORING IS A PLANNED MAINTENANCE ACTIVITY
Infrastructure Assets Approximate R l V l ( Th k i i)Replacement Values (eThekwini)
ReplacementNew Value
Asset GroupsNew Value
(Millions)
Roads R32,500Fleet0.7%
P kDurban Solid Waste
0 6%Water R13,000
Buildings R13,000
Electricity R11,500
S it ti R10 500
Transport Authority0 4%
Land0.8%
Other (uShaka etc.)7.0%
Coastal and
Parks0.6%
0.6%
Computers0.5%
Sanitation R10,500
Coastal and Stormwater R9,500
Other (uShaka etc) R7,000
Land R800
0.4%Roads32.5%
Stormwater9.5%
Fleet R750
Durban Solid Waste R600
Computers R600WaterBuildings
Electricity11.5%
Sanitation10.0%
Transport Authority R400
Total ± R100 (billion)
Water13.0%13.0%
Understanding What To Do First?
Performance MeasuresPerformance Measures&&
BenchmarkingBenchmarking
Ri k A tRi k A tRisk AssessmentRisk Assessment&&
Management PlansManagement Plans
Fitting the Jigsaw TogetherFitting the Jigsaw Together
Fitting the jigsaw together
Flow Chart (Infrastructure Asset Management)
(Done)( )
(High Level Strategic Infrastructure Assets June 2007 – June 2009
(85% Complete)
(Completion Date February 2009)
(Done)
Remainder June 2009 –June 2012)
y )
(Done)
(85% Complete)
(Completion Date February 2009)
Note 11. Position /location(where the asset is)
Note 4a) 5 year maintenance planb) community consultations
Note 3(eg a busy arterial road will
i hi h l l f iasset is)2. Condition assessment3. Present value and construction cost.4. Types of asset5. Construction date6. Person responsible for asset7. Photograph of asset
b) community consultations require a higher level of service than a local road)a) politicalb) Customers (who are my customers)c) Financial d) Environmentale) Legislative
Challenges AheadChallenges Ahead
1) Imbedding asset management practice into the municipality as a key business processp y y p
2) Senior management/ councilors buy-in.3) Provide additional funding to Municipalities3) Provide additional funding to Municipalities
for IAM and maintenance through MIG. (Municipal Infrastructure Grant)(Municipal Infrastructure Grant)
4) Key IAM Quality Elements to get right5) Training of Municipal Officials5) Training of Municipal Officials
contcont…
6) Co-ordination challenge (we need to use6) Co ordination challenge (we need to use IAM to glue together engineers, accountants and planners)p )
7) Make use of IAM and the maintenance budget to create sustainable jobs.g j
8) Retain our scare skills-engineers, accountants etc.
9) How should we respond to the issues of climate change.g
Challenge 5IMESA’s IAM Training CoursesIMESA s IAM Training Courses
Challenge 7S i bl J b Ch llSustainable Jobs Challenge
• EPWP – 1million jobs by 2010EPWP 1million jobs by 2010• Focus is on Capital
Expenditure (Temporary Jobs)Expenditure (Temporary Jobs)• Focus should move to Revenue
E dit (S t i bl J b )Expenditure (Sustainable Jobs)• e.g. Zimbambele 5500 jobs
in 2008• Additional MIG Funding.g
Challenge 8Civil engineering staffCivil engineering staff
Regional sea-level riseg
Regional sea-levelRegion Port
gtrends
(mm yr-1)LuderitzLuderitzWestern Port Nolloth +1.87Simons TownGranger Bay +1.48Granger BayMossel BaySouthern
Knynsa
+1.48(excluding Granger and
Mossel Bays)
P Eli b hPort ElizabethEastern Durban +2.74Mather et al. (submitted to the African Journal of Marine Science )
Sea-level rise scenarios for Durban
• 300 mm• (90% chance of happening by 2100)( pp g y )• 600 mm• (10% chance of happening by 2100)• (10% chance of happening by 2100)• 1000mm • (1% chance of happening by 2100)
??
Central sewerage treatment works
300mm SLR
600mm SLR
1000mm SLR
March 2007 event (Durban)
Municipal readinessMunicipal readiness
Almost all municipalities have noAlmost all municipalities have noAlmost all municipalities have no Almost all municipalities have no coastal management plans or coastal management plans or erosion setback lines in placeerosion setback lines in place
No municipalities have shorelineNo municipalities have shorelineNo municipalities have shoreline No municipalities have shoreline management plans to address management plans to address
t l it l icoastal erosioncoastal erosion
All municipal responses are reactiveAll municipal responses are reactiveAll municipal responses are reactiveAll municipal responses are reactive
Thankyou“I think there is still a lack of “I think there is still a lack of Thankyouwillingness by Local Government to willingness by Local Government to commit to anything that is going to commit to anything that is going to y g g gy g g gcost money, this includes longcost money, this includes long--term/ term/ shortshort--term plans for managingterm plans for managingshortshort term plans for managing term plans for managing weather patterns and coastal weather patterns and coastal conditions”conditions”conditions .conditions .
Take Home MessagesTake Home Messages• Asset Management is critical to any g y
infrastructure rich business • It must be done as a Total Enterprise• It is all about Cultural Change – get this
part right Pl th h th hl t b i• Plan the change thoroughly, get buy in across the business
• Choose what you can justify and do it• Choose what you can justify and do it ..• Apply the resources needed and monitor
progressprogress
According to Maslow, four steps are i l d i th l iinvolved in the learning process:
Step 4Unconscious
Step 3Conscious
Competence
Step 2Conscious
Incompetence
Competence
Step 1
Unconscious
Incompetence
Incompetence
At Step 1, you don’t know what you don’t know.
At Step 2, you know what you don’t know
At Step 3, you know what you know and can do it when you think about it.
At Step 4, you know what you know and how to do it without having to think about it.