24 November 2010
Sustainable Infrastructure Asset
Management
Jannie Pietersen
pietersenj@durban.gov.za
031-3116381
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 service
in the most cost effective manner
for present 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
Total
R 720.00
R 180,450.00
Fleet
0.7% Durban Solid
Waste
0.6%
Land
0.8%
Computers Parks
0.6%
0.6%
Other (uShaka
etc)
7.0%
Coastel &
Drainage
9.5%
Sanitation
10.0%
eThekwini
Transport
Authority
0.4%
Roads
32.4%
Electricity
11.5%
Buildings
13.0%
Water
13.0%
Understanding What To Do First?
Performance Measures
&
Benchmarking
Risk Assessment
&
Management Plans
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
Roads
CSCM
Solid
Waste
Electricity
Parks
Sanitation
Water
Finance
Flow Chart (Infrastructure Asset Management)
Buy-in
Promoted by senior
Management
•(Done)
Failure Mode
Analysis
•(85% Complete)
See note 2
•(High Level Strategic
Infrastructure Assets
June 2007 – June 2009
•Remainder June 2009 –
June 2012)
Knowledge
of Assets
On going
See note 1
•(Completion Date
February 2009)
Asset Renewal
Replacement
Disposal
Policy
Define Levels
of Service
See note 3
•(Done)
Asset
Selection
Policy
Asset
Management
Organisational
Structure
Link with IDP,
Maintenance(Operational
Contracts)and Capital
Contracts
Asset
Performance
Standards
(KPI)
Prepare Asset
Management
Plan
2020 Vision
•(Done)
•(Completion Date
February 2009)
Decide on
computerised
asset
management
software
•(85% Complete)
Asset
Financial
Cash flows
See note 4
Note 1
1. Position /location(where the
asset is)
2. Condition assessment
3. Present value and
construction cost.
4. Types of asset
5. Construction date
6. Person responsible for asset
7. Photograph of asset
Note 4
a) 5 year maintenance plan
b) community consultations
Select
Maintenance /
Capital Options
Note 2
Historical failure and Predictive
modelling
a) Assess risk of failure
b) Risk policy
c) Risk Strategy
Predict Demand
Population growth
Customer trends
Note 3
(eg a busy arterial road will
require a higher level of service
than a local road)
a) political
b) Customers (who are my
customers)
c) Financial
d) Environmental
e) Legislative
Proposed Computer System (2004)
AMS 2007
This 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
Consumed
CoF
Population
Served
•Redundancy
Allowance
BRE
Rankings
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
UA
RISFA
Classification
2
Description
Trunk 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
4
Urban access collectors used for local distribution and
to link neighbourhoods.
UD
5
Local 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
Annual traffic
(million veh-km)
Length (km)
0%
20%
40%
60%
80%
Length (km)
Annual traffic
(million veh-km)
UA
84
1,532
UB
1,442
2,632
UC
1,072
196
UD
2,842
104
100%
Visual Condition Index
–
–
–
–
–
Very Good
Good
Fair
Poor
Very Poor
= 86% to 100%
= 71% to 85%
= 51% to 70%
= 31% to 50%
= 0% to 30%
100%
90%
80%
Very Good
Good
70%
60%
Fair
50%
40%
Poor
30%
20%
10%
0%
Very Poor
Rehabilitation
Backlog
Very Poor Condition
Very Poor Condition
Poor Condition
Fair Condition
Very Good Condition
Very Good Condition
Visual Condition Index
•81%
Severe
to VCI
warning
cracks in
have
Distribution
- 2009/10
(4,692
km)
ofcrocodile
roads
either
– Very
Good
= 86%
topaved
100%
and
– Good Length
= 71%
to 85% Percentage
developed
on (km)
6%
(318
km) of roads(%)
or
– Fair a very good
= 51% to
70%good condition
indicating
an urgent
to inspect these
– Poor
= 31% toneed
50%
– Very Poor
to 30%2%
12, 0% = 0% 124,
roads
for structural
repair.
100%
• Moderate
crocodile
cracks have developed
Very Good
90%
1001,
80%
on 12%
(660
km)
of
the network, indicating
Good
17%
70% 2318,
an urgent
need to investigate preventive or
60% 40% Fair
50% measures to delay further Very Poor
repair
Poor
40%
deterioration.
Poor
30%
Rehabilitation
20%
Fair
2374,of roads have
Backlog
• A further
12%
(690 km)
Very Poor
10%
41%
Good
isolated
crocodile cracks indicating
a
0%
Very Good
possible need for preventive measures.
VCI distribution for paved roads,
2003 to 2009/10
100%
90%
80%
Length (%)
70%
60%
50%
40%
30%
20%
10%
0%
2003
Very Poor
2005
Poor
2007
Fair
Good
2009/10
Very Good
Current asset value versus
maximum asset value for paved
roads, 2009/10
Max asset value (CRC)
(R million)
Asset value (CDRC)
(R million)
0
Total Replacement
Cost (Including fill,
drainage etc) is
R58500m
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Asset value (CDRC)
(R million)
Max asset value (CRC)
(R million)
30,500
34,600
R million
40,000
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
Budget Allocation (R Million)
Road Rehabilitation Budget
Allocation
400
350
300
250
200
150
100
50
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
Financial Year
Budget for maintenance and
rehabilitation
YEAR
UA ROADS
2010/11
R47 million
UB, UC, UD
ROADS
R370 million
2011/12
R50 million
R370 million
2012/13
R55 million
R330 million
2013/14
R55 million
R330 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
Very Poor
Poor
Year
Fair
Good
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
Length (%)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Constant Annual R80 Million Budget (Cat. B, C & D):
Condition Distribution
Very Good
Predicted Condition Distribution of Paved
Roads under Current Funding Scenario
MTEF Budget
The analysis results prove that the
current level of funding is sufficient to
keep the poor to very poor roads at
lower levels.
100%
80%
70%
60%
50%
40%
30%
20%
10%
Historic
Very Poor
Predicted
Poor
Fair
Good
Very Good
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2007
2005
0%
2003
Length of paved roads (%)
90%
éThekwini
Coastal 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
Pipes :Total Length = 4892 km
Percentage of pipe size to Total Length
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
73.2%
Culverts :Total Length = 135.94 km
Canals :Total Length = 46.77 km
Condition Assessment-CCTV
Cost Budget for 2009 – 2012
=R 54m
Infrastructure Assets
•Drainage – Stormwater Assets
Cash Flow Required
Regional sea-level rise
Region
Port
Luderitz
Port Nolloth
Simons Town
Granger Bay
Southern
Mossel Bay
Knynsa
Port Elizabeth
Eastern
Durban
Western
Regional sea-level
trends
(mm yr -1)
+1.87
+1.48
(excluding Granger and
Mossel Bays)
+2.74
Mather et al. (submitted to the African Journal of Marine Science )
Sea-level rise scenarios for
Durban
• 300 mm
•
(90% chance of happening by 2100)
• 600 mm
•
(10% chance of happening by 2100)
• 1000mm
•
(1% chance of happening by 2100)
Central
sewerage
treatment
works
March 2007 event (Durban)
GRAP 17 Project Overview
Grap 17 data required for these and many more
Grap 17
Focus Areas IRO Grap 17 Requirements
1. Knowledge / identification of Assets
1.
2.
3.
4.
On VSmart database – in GIS format
In the Fixed Asset Register (JDE)
Stand alone GIS systems in each Department
Corporate GIS database
2. Condition Assessment of Assets
1. 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. Impairment
1. 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 / Componentisation
1. 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
methodology
No.
1
Type
Buildings
List of Asset Sub-Types
Administration - Private Residential - Canteen - Lifegaurd
Tower
Cost Group
High spec
2
Buildings
Electrical substation - Pumpstation - Operational
Crematoria - Changeroom - Coldroom - Ablution - Medium spec
Garage - Store room - Parcel
Counter - Paybooth - Sport
Equipmentroom
Electrical Substation
3
Buildings
4
Buildings
Taxi Shelter - Bus shelter - Canopy - Low spec
Shed - Minor Lifegaurd tower
5
Minor structures
Statue - Memorial - Monument - -
Feature structure
Cost Group Definition
High specification buildings used for offices,
work/accommodation
Medium specification buildings used for
storage/garage maintenance etc.
Group code
buhs
Design Life
80
Unit
2
m
buop
80
m
2
2
bums
80
m
Low specification buildings generally used as a
shelter from elements
buls
80
m
Structures with heritage or other purpose such
as statues
msfs
10
No.
2
2
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
m
7
Structures
Retaining wall - - - -
Retaining wall
Walls used for embankments
msrw
80
m
8
9
Minor structures
Minor structures
Stairs - - - Cage metal/enclosed - Cage
metal/open - Cage wiremesh
enclosed - Cage wiremesh/open Cage wood/open
Access
Miscelaneous
Staircases
Animal Enclosures and other structures not
compatibile with another category
msac
msmi
10
No.
10
Gardens
Feature garden - - - -
Garden
Feature gardens such as display gardens, herb
gardens, rose gardens, rock gardens, cactus
garden, zen garden
gaga
8
m
2
2
Capital Rate
R 8,000.00
R 6,000.00
R 5,000.00
R 2,000.00
R 25,000.00
R 1,000.00
R 3,000.00
R 5,000.00
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
Achievements
Integrated 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).
Challenges
•Technical Staff
•Close Quality Primary Gaps
•Condition Assessment of Underground
Get The Base
cables/pipes.
Foundations
In demands.
•Understanding
future
Place
AM Benchmark - EM Water (RBA1) Nov 2008
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
P&P
Info Sys
Your Assessment
Average (50%)
D&K
Comm
Tact
Org
People
AMP
Overall
Top 10% of Similar Agencies Globally
Best Appropriate Practice
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
AMP vs Register
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.
The Asset Register
•
•
•
•
Does 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 words
It does not tell us
It’s state of decay
(when it will fail)
The Evolution of Asset
Management
•1993
2005
•1996
2009
•2004
•2000
Copyright © RBA. 2009
•2003
1999
•2002 •2005
•2005
•2008
•2006
(CRC) Current Replacement Costs: example 1
(CRC) Current Replacement Costs: example 2
•CONSTRUCTION COST = R 91 141 584
•CRC = R 2 388 073 754
•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.
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