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The Role of Executive Leadership in Municipal Infrastructure
Asset Management – A case study of the iLembe District
Municipality
Emmanuel NgcoboiLembe District Municipality, Asset Manager
Dasagen PatherSMEC South Africa, Project Manager&
Local Government & Asset Management
Section 152 (1) South African Constitution: Ensure the provision of services to
communities in a sustainable manner.
Infrastructure assets are the
vehicles through which this
objective can be met.
Effective & efficient
Infrastructure Asset
Management is a must!
Structure of South Africa Government
National Government Provincial Government (9) Local Government/Municipalities (278)
Comprising District & Local Municipalities,such as the iLembe DMRepresented by the South African Local Government Association (SALGA)
Durban
Cape Town
The Role of Executive Leadership
The organizational approach must embrace
both the technical & financial objectives of
Asset Management in a holistic manner.
Responsible for fostering a culture which promotes
proactive collaboration between all structures within the organisation
Responsible for the adoption of a successful
& sustainable Infrastructure Asset
Management Approach.
Must ensure compliance to all
relevant standards and regulations, particularly
GRAP & MFMA
Enforces a Top-Down approach to achieving
sound Asset Management Practice
The iLembe District Municipality (IDM)
Located on the East Coast of KwaZulu-Natal, about 65 km North of Durban, South Africa.
Extent of Infrastructure spans 4 Local municipalities: KwaDukuza, Mandeni,
Maphumulo & Ndwedwe; totalling +2 Billion Rands.
Currently services approximately
600,000 people.
Large degree of people live in rural or
semi-urban conditions.
Primarily a Water & Sanitation Authority, with a few municipal
offices.
Initially, battled to achieve Municipal
Asset Management Compliance.
IDM’s Infrastructure Comprises
Water & Sanitation Authority
Water Treatment
Works
Water Pumpstations
Reservoirs & Storage Tanks
Boreholes & Standpipes
Sewer Pumpstations
Waste-Water Treatment
Works
Administration Offices
Bulk & Consumer
Water Meters
Water Bulk Pipeline &
Reticulation
Sewer Bulk Pipeline &
Reticulation
Infrastructure Asset Management Compliance
GRAP
IMESA
MFMA
Often stigmatises Asset Management as an
accounting or finance issue
Emphasises the role of engineers or technical
personnel, as vital to ensuring best practice & adequate
maintenance practices
Asset Management needs to be a jointly run strategy between both Finance &
Technical municipal spheres, to ensure accurate reporting
& accountability
The Role of IDM’s Executive LeadershipIncludes the Executive Committee (The Mayor & Ward Councillors), The
Municipal Manager & Senior Management
Top-Down Approach; a jointly run strategy between their finance & technical departments was established.
Ensured buy-in from all facets of the organisation; Required adequate ‘Change Management’ Strategies.
Fostered a culture of collaboration & transparency necessary to address issues. Effective monitoring of the municipality’s administration in accordance with policy
directions. Ensured that organisational hold-ups and identified challenges were addressed
appropriately & timeously.
IDM’s Adopted Asset Management Approach
Establishment ofa Working
Committee of a Municipal Personnel
Stakeholder Engagement
Quality Control
Spear-headed by the Executive Leadership & Facilitated by SMEC South Africa An Holistic Programmed & Phased Approach
Verification & Review of Existing Municipal Data (GIS, Asset Inventories, Systems)
Engagement Workshops with Departmental
Personnel & Existing Consultants
Gap Analysis of Current Asset Management Maturity
Level
Physical Verification & Visual Condition Assessment
of Water & Sanitation Infrastructure Assets, including Components
Valuation of Infrastructure Assets (CRCs) including
Calculation of Asset Remaining Useful Lives
(RULs)
Compilation of Updated, Compliant Fixed Asset
Registers, Including Impairment Testing & Audit
Support
Skills Transfer
Gap Analysis & Engagement Workshops
Review of all electronic data, policy documents and existing asset registers/inventories. Formulation of a Gap Analysis. Engagement Workshops conducted. The is prescribed Asset management practice, and comprised a group of municipal experts
who are knowledgeable of the infrastructure assets under the custodianship of their respective Departments.
These sessions take on an interactive workshop feel, thereby allowing for the confirmation and updating of asset information in the asset register & accompanying GIS.
This exercise ultimately serves as an interim solution to reviewing the conditions and useful lives of the Municipalities assets; to be followed by field inspection/physical verification
Asset Tree Structure Formation & Componentization
This entailed the establishment of Asset Classes and a hierarchy for the management of Assets, i.e. A comprehensive Asset Tree.
Organised into Systems, Subsystems, Facilities, Assets and Components. Reflected on the Fixed Asset Register. Enabled for the accurate unbundling or componentisation of assets, in
preparation for field inspections.
Physical Verification & Condition Assessments
Condition Assessment of above ground Assets/Components. All inspections are visual in nature, i.e. not intrusive. Photographic evidence of Assets/Components attained. Unbundling/Componentisation of Assets into Generic Civil, Electrical & Mechanical
Components. Development of a spatial geodatabase (GIS) for IDM’s infrastructure. Engagement and collaboration with IDM Technical, during inspections. Quality Audit of the data by IDM Technical following inspections. Enabled for accurate accounting treatment of Assets/Components.
Field Data
Team Leaders
Graduate Engineers/
Technologists
Civil Engineering Specialists
Continuous Stakeholder Engagement
Tran
spar
en
t
Inspection Process Flow
Inspection Data – Facility Inventory
Local Municipality Facilities Borehole ReservoirsSewage Pump
Station
Water Pump
StationWTW WWTW Grand Total
KwaDukuza 5 58 37 25 5 7 137
Mandeni 13 43 10 8 7 4 85
Maphumulo 47 68 NA 20 10 3 148
Ndwedwe 30 161 NA 21 7 1 220
Total 95 330 47 74 29 15 590
Facility Type Counts Inspected,
Per Local Municipality
Inspection Data – Average Conditions
0
10
20
30
40
50
60
70
80
Borehole Reservoirs Sewage PumpStation
Water PumpStation
WTW WWTW Overall Ave CIfor LM
Average Condition Index (CI), Per Facility Type
Geospatial Database of Infrastructure
Development of a spatial database (GIS) of Water & Sanitation Infrastructure
Inspection Data - Analysis
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Borehole Reservoirs Sewage PumpStation
Water PumpStation
WTW WWTW Overall LM AveCI
Overall Facility Type Ave CI 2013/14 Overall Facility Type Ave CI 2014/15
Condition Index (CI) Comparison between the Initial Engagement Workshops & Actual Site Verifications
Primary reason for the increase in average condition per water and sanitation facility typesthroughout the DM found to be a direct result of known maintenance efforts (approximately 50million spent over the course of 2 FY’s by IDM).
Another significant factor is that of capitalisation of projects (IDM spent close to 80 million in thelast 2 FY’s against their MWIG), of which backlog items were only addressed/capitalised in the lastFY; resulting in their inspection in the current FY.
FAR Accounting Treatment
The valuation of the Infrastructure Assets will be based on their
conditions assessed in the field
Calculation of Asset Current & Depreciated Replacement Costs
Calculation of Asset Expected and Remaining Useful Lifes (the
calculation takes into consideration the age of an asset,
its condition and its ability to provide the intended service)
Calculation of Asset Impairments
Impairment Testing
Impairment
Assets Under Construction (AUC)/Work In Progress (WIP)
Engagement workshops with Technical Departments. Upon completion of asset construction, the following information needs
to be provided by the Technical Department: A Completion Certificate – Official Project/Facility/Scheme Name;
Date of completion; Relevant signatories. BOQ aligned to the Generic Components of the Asset/s, i.e.
Componentisation; and not at Item level. Project Value (Inclusive of Consulting, Inception, Feasibility,
Technical, Environmental, Social, Construction and Project Management fees) – Must be distributed amongst the Assets/Components identified.
Asset Disposal & Movements
Engagement Workshops with Technical Departments. Obsolete and damaged assets/components (i.e. no future economic
benefits) need to be treated as disposals and communicated as such to the Finance Department. An official disposal form should be completed and counter signed by
the Asset Management Unit. Movement of assets/components which relate to the transfer of
assets/components from one facility to another or from a stores facility to site; must also be communicated to the Finance Department.
Theft or Losses, also to be considered and communicated as such. Key to ensuring a constant updated inventory of assets/components is
constant communication!!!
Water Meter Audit
Water Meters play a vital role in determining customer usage of this valuable and life sustainingcommodity, and as such directly determines the revenue to be generated from the provision of thisservice. Revenue generation and collection is particularly important when it comes to themaintenance of the infrastructure at hand, of which Ilembe has already invested over a billion rands.
This is a follow on project from that of the Infrastructure Asset Management, and entails the following:
Planning and Data collection using Mobile Applications/Tablet devices. Training/Upskilling of Local FET Students working as field data capturers on the project. Field Investigation of Conventional & Intelligent Meters for Residential & Commercial
Customers. Updating of Customer information on the Municipal Revenue Billing System. Spatial Zoning of all meters according to supply areas from water sources such as reservoirs
and the like. Programme to resolve replacement of damaged meters, fixing of leaks, eradication of illegal
connections, implementation of monitoring mechanisms, and quantification of water losses via the network.
The Way Forward for IDM
Other Deliverables in the Pipeline:
Continuation & Strengthening of Infrastructure Asset Management Forums/Steer Comms. Continued Skills Transfer Initiatives. Continuous Updates of the Policy Implementation Guideline, Developed Templates &
Reporting Mechanisms, as suggested by executive leadership. Updating of Infrastructure Asset Management Plans & Master Plans. Further Development of a GIS Database of Bulk Pipelines & Reticulation (Schematics). Development of the High Level Maintenance Plan into a Detailed one (Strategic vs Poor
Condition) (Reactive vs Planned/Preventative). Continued Revenue Enhancement Strategies. Maintaining a Culture among Financial, Technical and Operational Personnel…So as to
enable Sustainable Asset Management Practice…well into the future.
Conclusion
Teamwork
Transparency
Collaboration
Delivery
SustainabilityCompliance to
GRAP Standards &
Relevant MFMA Sections
Thorough Reporting &
Accountability
Pro-active Approach to Maintenance
Accurate Budgetting
Infrastructure Backlog
Eradication
Enhanced Service Delivery
Finance
Department
Technical Department
Other IDM Departments
Planning/GIS Unit
Output of a Successful
Asset Management
Approach driven by IDM
Executive Leadership
Contact Me:
Emmanuel Ngcobo
iLembe District Municipality, Asset Manager
Contact Me:
Dasagen Pather
SMEC South Africa, Project Manager
Questions?
