Project Overview

1
Enterprise Wide Asset Management System
(EWAMS) Verification and Valuation of Major Water
Infrastructure Assets
Project Overview (based on draft Inception Plan)
2
Object of Presentation

• Overview of current understanding of
• project drivers
• scope
• approach
• deliverables
• organisational context
• key risks and opportunities
• progress to date

3
Project Drivers

• Auditor General qualifications
• Approach Scientific and documented
• AC policy in line with required standards
• Asset Register in line with the AC policy
• Data needs to be verified
• Improved Infrastructure Asset Management Practice
• Compliance (eg PFMA and GIAMA)
• Business drivers high value, high criticality
  infrastructure potential economic, financial,
  safety, environmental and social impacts
• Best international practice - more systematic,
  holistic, consistent, integrated and sustainable
  approach
• Inputs to Tariff Setting
• Robust data
• Sound rationale

4
Asset Scope

• Water Resource Infrastructure Assets associated
  with the following
• Integrated Water Schemes (TA2)
• Bulk Supply Schemes (TA3)
• Gauging Weirs
• Support Services (workshop and admin buildings,
  houses, electricity, water supply, sanitation,
  roads)
• Associated land and servitudes

5
Extent of Assets (estimated)

• 402 Dams (47 value)
• 3,800 kms Canals (27 value)
• 170 km Tunnels (10)
• 1,800 km Pipelines (13)
• 76 Pump Stations
• 18 Treatment Works
• 71 Reservoirs
• 63 Office Buildings
• 70 Housing Areas

6
Overview of the Approach
7
Organisational Context

• Pending establishment of NWRIA and transfers to
  Catchment Management Areas
• Program of Strategic Interventions
• SAP Implementation
• Corporate Risk Management System
• Review of the Tariff Setting Strategy
• Asset Management (Kwinana)
• Working Group and Steering Committee (existing
  Exco)
• Internal and external stakeholders

8
Work-streams
9
Spatial Overview 4 clusters
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Summary of Main Deliverables

• IAM Training Course
• Inception Report, Project Management Plan and
  Communications Plan
• Valuation Methodology and Approach
• Infrastructure Asset Management Practices
  Improvement Plan
• AMIS User Requirements and Solution
  Recommendation
• Infrastructure Asset Management Policy and
  Procedures
• Technical and Financial assessment Reports
• Inputs into the Tariff Setting Strategy
• Human Resources Plan and skills training
• Asset Register
• Close-Out Report

11
Key Project Risks

• Completion within 12 month project period (a)
  considerable extent of assets approach adopted
  is to progressively drill into further levels of
  detail, leveraging existing asset knowledge, the
  value of achieving a greater level of detail
  (with an adjusted time frame) has been noted and
  is to be reviewed based on sign-off of asset
  scope, and level of detail (2 pilot schemes)
  (b) there needs to be ready access to DWAF
  information to be tested in the pilots and (c)
  DWAF needs to have effective resources and an
  AMIS in place by project hand-over.
• Delays in decision-making existing DWAF staff
  overloaded, and the work is pioneering in nature
• Organisational fit due to uncertain timing and
  arrangements relating to the establishment of the
  NWRIA
• Compliance the approach required to satisfy the
  AG and GIAMA are not well-established

12
Project Opportunities

• Document existing practice and secure
  institutional memory
• Establish a benchmark for good Infrastructure
  Asset Management practice for SA (as sector
  leader)

13
Progress to Date

• Working Group, Work-streams established and
  briefed
• IAM Training (two 4-day sessions) held
• Requirements Analysis Workshop held
• Existing Infrastructure Asset Management
  Practices documented
• Accounting Position (standards) established
• Draft Inception Report submitted
• Draft Communications Plan submitted
• Project Management Plan 80 complete
• Interim Project Tool is being established

14
..continued

• Assessment of DWAFs existing IT infrastructure
  conducted
• Legal review in process
• Asset hierarchy and level of detail of data
  collection approaching finality
• Draft Filed Guide being prepared
• Scope of known assets being finalised
• Valuation Approach and Methodology reaching
  advanced stage
• Data collection at national level commenced
• Preparations in hand for pilot projects

15
Conclusion

• The project will impact across many aspects of
  DWAFs business
• It is pioneering in nature
• Success will depend substantially on a close
  working relationship of the PSP and DWAF and
  effective communication
• There are considerable project risks, and
  opportunities, which will need to be closely
  managed
• The value-add of the project is substantial in
  terms of improved planning and operations, risk
  mitigation, and, ultimately, in improved service
  delivery