1. Sustainable Infrastructure Asset Management Jannie Pietersen pietersenj@durban.gov.za 031-3116381 24 November 2010

2. Introduction Understanding what to do first. éThekwini Roads éThekwini Stormwater and Coastal Management Challenges GRAP 17 Where to from here?

3. Objectives of Infrastructure Asset Management level of service cost effective manner present and future To provide an agreed level of service in the most cost effective manner for present and future communities

4. Infrastructure Assets Approximate Replacement Values (eThekwini) Asset GroupReplacement New Value (Millions) RoadsR 58,500.00 WaterR 23,400.00 BuildingsR 23,400.00 ElectricityR 20,700.00 SanitationR 18,000.00 Coastal & DrainageR 17,100.00 Other (uShaka etc)R 12,600.00 LandR 1,440.00 FleetR 1,350.00 Durban Solid WasteR 1,080.00 ComputersR 1,080.00 ParksR 1,080.00 eThekwini Transport AuthorityR 720.00 TotalR 180,450.00

5. Understanding What To Do First? Operational Plans & Cost Rate studies. Service Standards and Demand Models Performance Measures &Benchmarking CAPEX New Works Total Asset ManagementPlan Risk Assessment & Management Plans Strategic Maintenance (FMECA,RCM) Condition Monitoring & Assessment CAPEX / ORDM Optimised Renewal Decision Making

6. Fitting the Jigsaw Together Fitting the jigsaw together

7. GAP- Ex Level 1

8. IMESA’s IAM Training Courses

9. AM Organisational Structure Council City Manager DCM Forum Steering Committee ArchitectureCSCMSolid Waste ElectricityParksSanitationWaterRoadsFinance

10. Flow Chart (Infrastructure Asset Management) (Done) (High Level Strategic Infrastructure Assets June 2007 – June 2009 Remainder June 2009 – June 2012) (85% Complete) (Completion Date February 2009)

11. Proposed Computer System (2004) AMS 2007 This is now VSMART Asset Groups: Architecture, CSCM, ETA,Water, Sanitation, Solid Waste, Bridges, IS

12. IAM Software (VSMART)

13. Risk Management - Asset Failure Condition Residual Life % Consumed PoF % Life Consumed CoF Population Served BRE Rankings Redundancy Allowance

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

15. 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.

16. Total Length = 5829 km

17. Road Classification Road Category RISFA Classification Description UA2 Trunk roads, primary distributors, freeways, major arterials and bypasses used for primary urban distribution and linking urban districts/sectors. UB3 / 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. UC4 Urban access collectors used for local distribution and to link neighbourhoods. UD5 Local access roads (residential): Loops, access ways, access courts, access strips and cul-de-sacs. UECar parks, bus bays and taxi ranks. UFWalkways, arcades and footpaths.

18. Distribution of annual traffic amongst road categories: UA, UB, UC and UD

19. –Very Good= 86% to 100% –Good= 71% to 85% –Fair= 51% to 70% –Poor= 31% to 50% –Very Poor= 0% to 30% Visual Condition Index

20. Very Poor Condition

22. Poor Condition

23. Fair Condition

24. Very Good Condition

26. –Very Good= 86% to 100% –Good= 71% to 85% –Fair= 51% to 70% –Poor= 31% to 50% –Very Poor= 0% to 30% 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.

27. VCI distribution for paved roads, 2003 to 2009/10

28. Current asset value versus maximum asset value for paved roads, 2009/10 Total Replacement Cost (Including fill, drainage etc) is R58500m

29. 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

30. Road Rehabilitation Budget Allocation

31. Budget for maintenance and rehabilitation YEARUA ROADSUB, UC, UD ROADS 2010/11R47 millionR370 million 2011/12R50 millionR370 million 2012/13R55 millionR330 million 2013/14R55 millionR330 million 2014 onwardsR55 millionR330 million All budgets and are given in 2010 Rand value.

32. 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.

33. Budget Constraints and Predicted Road Network Deterioration

34. Predicted Condition Distribution of Paved Roads under Current Funding Scenario The analysis results prove that the current level of funding is sufficient to keep the poor to very poor roads at lower levels.

35. éThekwini Coastal Stormwater and Catchment Management CSCM Asset Types Stormwater Network Pipe Lengths Cash Flow (from VSmart) Visual Inspection Coastal Management

36. 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

37. CSCM Asset Statistics Pipe Size (mm) 150225300375450525600675750825900 1050120013501500 % 3.412.527.816.616.32.47.20.61.63.41.53.23.00.30.2 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

38. Condition Assessment-CCTV Cost Budget for 2009 – 2012 =R 54m

39. Infrastructure Assets

41. Drainage – Stormwater Assets

42. Cash Flow Required

43. 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

44. 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)

46. Central sewerage treatment works Defend Retreat

47. March 2007 event (Durban)

51. GRAP 17 Project Overview Grap 17 data required for these and many more

52. Grap 17 Focus Areas IRO Grap 17 Requirements 1.Knowledge / identification of Assets 1.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 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

53. 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

54. 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.TypeList of Asset Sub-TypesCost GroupCost Group DefinitionGroup codeDesign LifeUnitCapital Rate 1BuildingsAdministration - Private - Residential - Canteen - Lifegaurd Tower High specHigh specification buildings used for offices, work/accommodation buhs80m2m2 R 8,000.00 2BuildingsElectrical substation - Pumpstation - Crematoria - - OperationalElectrical Substationbuop80m2m2 R 6,000.00 3BuildingsChangeroom - Coldroom - Ablution - Garage - Store room - Parcel Counter - Paybooth - Sport Equipmentroom Medium specMedium specification buildings used for storage/garage maintenance etc. bums80m2m2 R 5,000.00 4BuildingsTaxi Shelter - Bus shelter - Canopy - Shed - Minor Lifegaurd tower Low specLow specification buildings generally used as a shelter from elements buls80m2m2 R 2,000.00 5Minor structuresStatue - Memorial - Monument - -Feature structureStructures with heritage or other purpose such as statues msfs10No. R 25,000.00 6Minor structuresLow walls - Plant boxes - Surface run-off drain - Drain - Gutters - Pipes & Valves External structureLow walls and other external structures (generally masonary) mses20m2m2 R 1,000.00 7StructuresRetaining wall - - - -Retaining wallWalls used for embankmentsmsrw80m2m2 R 3,000.00 8Minor structuresStairs - - - -AccessStaircasesmsac 9Minor structuresCage metal/enclosed - Cage metal/open - Cage wiremesh enclosed - Cage wiremesh/open - Cage wood/open MiscelaneousAnimal Enclosures and other structures not compatibile with another category msmi10No. R 5,000.00 10GardensFeature garden - - - -GardenFeature gardens such as display gardens, herb gardens, rose gardens, rock gardens, cactus garden, zen garden gaga8m2m2 R 1,500.00

55. 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

56. Asset Condition Asset condition based on inspection information Asset remedial actions based on asset component and urgency of repair Impairment

57. 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

58. 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).

59. Technical Staff Close Quality Primary Gaps Condition Assessment of Underground cables/pipes. Understanding future demands. Challenges Get The Base Foundations In Place

60. 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

61. 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

62. 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)

63. Copyright © RBA. 2009 1993 1996 The Evolution of Asset Management 1999 2000 2002 2003 2005 2004 2005 2006 2008 2009

64. (CRC) Current Replacement Costs: example 1

65. (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

66. 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

68. Challenge Where to?

69. 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.

70. 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