23 November 2009

A Futuristic Perspective For Sustainable Infrastructure Asset

ManagementManagement

Jannie Pietersenpietersenj@durban.gov.za

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.