CHAPTER ONE 1. Define infrastructure categories and identify sub-categories 1.

1 Basic concepts of Asset Management Infrastructure asset management is the integrated, multi-disciplinary set of strategies in sustaining public infrastructure assets such as water treatment facilities, sewer lines, roads, utility grids, bridges, and railways. Generally, the process focuses on the later stages of a facilitys life cycle specifically maintenance, rehabilitation, and replacement. Asset management specifically uses software tools to organize and implement these strategies with the fundamental goal to preserve and extend the service life of long-term infrastructure assets which are vital underlying components in maintaining the quality of life in society and efficiency in the economy. Asset management is a specific approach to the management of physical assets, which brings together good technical management practice with sound financial principles. The primary focus of this course is on the management of physical infrastructure, although the approach can be applied equally to the management of assets supporting social infrastructure (e.g. municipal buildings, schools and clinics). For physical infrastructure, asset management provides a foundation for long-term, sustainable, infrastructure management that can used to manage fastgrowing towns and cities. Although the technical approach to asset management is similar for all infrastructure services that have physical assets, the way in which asset management is used as a management tool will vary. In the case of movement networks and urban drainage, for example, asset management should be closely linked to the spatial planning process. Where this planning process uses principles of movement networks and movement corridors, asset management can play an important role in the choice of appropriate modes of transport. The long-term cost of maintaining the different types of streets and paths should be an important factor in planning and design, as well as providing a basis for economic analysis. In the water, sanitation and hygiene sector, cost recovery is a key policy principle, and asset management plays a key role in achieving this. To be effective however, asset management has to be linked to the related issues of levels of service, user needs, and affordability and tariff structures. Similarly, for the delivery of services in this sector, asset management is central to the planning of service delivery. At the same time it needs to be linked to other, equally important, elements if it is to provide the basis for effective delivery. These include health and hygiene education, environmental sustainability, appropriate institutional structures and an effective social policy. Asset management should be seen increasingly as the central component within urban infrastructure management, with the other two major components, i.e. partnerships and operational management, being seen as building blocks supporting asset management.To be effective, asset management has to be situated within a context of clear goals and objectives, this is a subject that will be covered in greater detail in the infrastructure

management primer. In addition, you will begin to see some of the linkages between the asset management plan and the strategic goals and objectives as you proceed through this course. 1.2. Definition of terms What is Asset Management? The first question is what constitutes an asset. This is an item that has economic value or has been purchased, which has a life of more than a year, so that it has to be given a book value, i.e. a value that can be recorded and given a cost for accounting and tax purposes. In governments and utilities this applies to buildings and their contents, to land, physical infrastructure and movables such as vehicles, and to plant and machinery. Items with a shorter lifespan are referred to as consumables and constitute part of the operating cost of the assets with which they are associated. Asset management is a term used to describe a way of managing assets across their entire life cycle in a way which optimizes the life cycle cost and provides for the replacement of the asset at the appropriate point in time. This allows local authorities (municipalities and water enterprises) to know at any point in time exactly what assets it owns; what they are worth; what its financial obligations are towards those assets; and what the residual life of those assets will be. Assets can be described with differing levels of detail. The entire road network, for example, can be described as an asset. However, this in turn can be broken down into a number of constituent parts, for example a specific length of road or traffic sign, which are themselves assets. Asset management seeks to manage assets at the lowest level of definition in order to be able to work at a meaningful level of financial accuracy. As the number of assets being grouped together (as a single cost element) increases, so the level of accuracy of costing decreases, and the financial process changes from one of management to one of cost estimation. Overall, asset management provides a much more effective system for municipalities to plan their future budgets than does the existing system of project planning. And because it takes into account all costs across the project life cycle, it gives priority to maintenance, by demonstrating clearly the long-term financial benefits of effective maintenance 1.3. Approach to Asset Management This part sets out a methodological approach to asset management that will enable Municipalities and Water Enterprises to build their knowledge of their infrastructure asset base. This is becoming common practice in the towns, cities and utilities of developed economies, and there are a number of standardized approaches that have been developed to support asset management in these countries. Certain elements of the asset building process are common to all towns and cities, whatever their economic and social

development, size or geographical location might be. But there are also some significant differences that need to be recognized, and which are context specific. The dominant approach to asset management used by developed countries, which is based upon a seven-step process first developed in Canada, is often taken to be a generic approach (i.e. there is an assumption that it should be applicable in the majority of towns). The reality is that this approach to asset management strongly reflects the needs of mature cities in the developing world. And these needs are not the same as those found in fast growing towns and cities in the developing world. As a result there is a need for a new and different approach if asset management is to be used as a management tool for developing countries. Why is there such a significant difference? The main reason relates to the state of the infrastructure network. In the majority of developed (mature) cities, there is a major focus placed on the need to replace aging infrastructure, some of which has been operational for more than a century. In fast growing towns and cities the focus is on providing new infrastructure within the constraints of affordability and social acceptability. Following from this is the issue of management capacity. Where the existing infrastructure is well mapped, and accompanied by good records, and where management systems are well established, the asset management plan can build on these strengths. Where these are weak or absent, the asset management plan has to begin at an earlier point, and address these weaknesses as part of its development. When taken together, these factors require a quite different approach in developing towns and cities. It is the development of a new, and more appropriate, approach to asset management, which has been developed to meet the needs of African towns and their infrastructure managers. 1.3.1 A Sustainable Approach to Infrastructure Management Urban Network Infrastructure is expensive to construct and maintain. This makes it important to ensure that the solutions provided are cost effective, as well as meeting the needs of the urban population. The historical approach to infrastructure planning based upon five-year capital investment plans, functions well in a project context, but often fails to integrate projects into the wider life-cycle. Planning framework required for more sustainable management. Asset Management provides an alternative approach that can better integrate capital expenditure with long-term operation and maintenance, to provide a more sustainable management system. This course sets out a methodological approach to asset management that will enable Cities, and their Water Enterprises, to build their knowledge of their infrastructure asset base, and improve their capital investment planning, whilst at the same time creating effective strategies for the long-term operation and maintenance of their infrastructure. Asset Management Planning is not a new concept. It has been evolving in western countries, such as the United States, Canada and Europe, since the early 1990s. It has now developed to a point where it is becoming common practice in a number of areas, particularly that of utilities

management. This has led a number of standardized approaches that have been developed to support urban infrastructure asset management in these countries. At this point, however, it has not been applied extensively in the urban areas of sub-Saharan Africa. There are two reasons for this. The first reason lies in the difference in the nature of infrastructure delivery. The mature cities of the western countries have built the Asset Management approach around their, primary need, which is to manage an aging infrastructure base. This has led to quite specific methodological approaches to Asset Management. The second reason derives from the fact that the infrastructure in mature cities tends to be well-mapped, and accompanied by extensive operational records. So again this existing knowledge base became the basis for the approach to Asset Management. The rapidly growing cities of sub-Saharan Africa face a totally different challenge. There the priority is on constructing new infrastructure and this has to be done with more limited resources and a more limited skills base. As a result there is a need for a new and different approach if asset management is to be used as a management tool for fast-growing cities and towns. The approach that is described here has been developed specifically to suit the needs of the Cities in Ethiopia. It is directed more towards the construction of new infrastructure and the management of a wider range of infrastructure service options. Its development has evolved directly from the needs identified in a major development program targeted specifically at the secondary Cities and it has been held at a pilot scale with nine of the project towns. The result is the development of a methodological approach to the building, and ongoing maintenance, of an Asset Management Plan for Ethiopian Cities. This methodological approach is based upon a 10-step procedure that staff in the local authorities can follow to assist and support them in the development of their Asset Management Plan.

1.3.2 A Phased Approach to Asset Management

At first glance (take a brief or hurried look) asset management can appear to be an overwhelming (bury or drown beneath a huge mass) concept which is simply too big and complex to introduce into an overworked and understaffed infrastructure management department. This operational manual will seek to demonstrate that this does not have to be the case. Asset management may not be simple, at least in the beginning, but equally it is not that complex. And it has the major advantage that it can be introduced in a phased manner. This makes an Asset Management Plan a management tool that is well suited to incremental development over time. The concept of phasing relates to the degree of accuracy of information required. The great benefit of asset management is that the process of constructing an asset base can begin with simplified asset inventories and move to more detailed inventories over a period of time. This means that the construction of AMP can be incremental process within an asset category as

well as across asset categories. An example of how an incremental approach to asset management was used to build the AMP for water supply is described below. A review of what information was available on the network infrastructure in a number of secondary towns in Ethiopia indicated that information on the individual service networks was often limited. The water systems in particular lacked the depth of information required for detailed costing of individual assets. To provide a first estimate of the asset base with only limited data, a technique known as a strategic approach to asset management was adopted. This takes what is known as a value approximation approach. An example would be building an asset base for a water distribution network on a basis of total cost per linear meter, as opposed a detailed cost of pipes, fitting and laying. The latter approach, which builds on a much more detailed knowledge of individual infrastructure items, is called an operational approach. Whilst an operational approach provides the most accurate information, a strategic approach can be used in the first years of construction of the asset base. For linear features such as water mains or roads this would be the cost per meter of water main (as indicated above) or (for roads) the cost per square meter of road, both as constructed and at current replacement cost. For a building or a drainage retention pond, it would be cost per m2 of surface area. This provides the initial estimate. As more information on the specific infrastructure becomes available, through a managed so the cost can be refined and the asset management system can move gradually across to a detailed operational approach. This course material maintenance programme merges elements of both the strategic and operational approaches, resulting in a model that is a combination of the two. This approach allows the construction of an Asset Management Plan to begin immediately, based upon whatever knowledge Cities may have of their existing infrastructure.

1.4 Asset management as basis for infrastructure management

Asset management can bring major benefits to a municipality or water enterprise. But if it is to be effective, there will be a high level of commitment at the political level in the organization, a similar institutional commitment at a senior level, and the commitment of appropriate resources to the managing departments. In the context of emerging, rapidly growing towns and cities the situation is different. Here the asset base is growing rapidly and the management of the assets is much more integrated with the setting of design standards, levels of service and technical management. In this situation, the responsibility for infrastructure asset management should be given to the technical department managing the infrastructure. However, there should be a close relationship maintained with the finance department with the latter should have staff involved in the process.

A). Asset Management in Water Asset management has two distinct, though, inter-related roles in this sector. At an operational level, asset management provides the basis for sound financial planning in operation and maintenance. At this level its major role is in the technical and financial management of the water supply and distribution network. In the absence of waterborne sewerage systems the asset base of the water network is far greater than that of the sanitation network. At a policy and planning level however, asset management plays a different role. Internationally, it is being recognized increasingly that water supply, sanitation and hygiene promotion should be seen as a coherent sector that is operated in an integrated way. This is the case even if the different sub-sub-categories of the sector are managed operationally by different departments or institutions. At the same time though, affordability and accessibility remain critical factors to be considered. And in this context, knowledge of the asset base, and the ability to manage this asset base, constitutes a key component of a successful water, sanitation and hygiene promotion strategy. This needs to be recognized not only at a local level, but also regionally and nationally. B). Asset Management in Roads Overall roads represent the greatest capital investment in urban infrastructure. Depending on the surface finish chosen, this can constitute as much as 50% of the total infrastructure cost. In addition roads require high levels of maintenance if they are not to deteriorate rapidly and thereby lose their investment value. Technically this creates a strong relationship between the structural pavement design and the full (life cycle) cost of the pavement itself (which is the major asset sub-category of the road network). Constructing an asset management system that reflects the life cycle cost of the asset thus provides a valuable tool that can be used for comparing the financial cost of alternative pavement designs. This in turn provides a basis for valuing total economic cost that takes into account social costs and benefits. In addition, asset management provides a basis for a pavement management system for the town, which is itself the basis for planning longterm operating and maintenance programmes. This conceptual approach to asset management in the roads sector can be followed through into the spatial planning process, in particular the development or updating of the structure plan for the town. As the basis for planning moves across from a conventional approach based upon roads designed for vehicular traffic to a more sustainable system of variable width roads, streets and paths designed for multiple users, so the cost of the different options becomes an important input into the spatial planning process. For example, even for roads that take vehicular traffic, a reduction in traffic use to below 75-

80 vehicles per day, and the limitation on use by heavy vehicles, can make a substantial saving in the overall cost of the road pavement. Similarly the use of bi-modal access routes (i.e. routes designed for different transport modes, e.g. cars, bicycles, pedestrians, donkey carts) can lead to a use of dual pavement designs in the same route, again resulting in significant cost savings. Finally, in terms of pavement surface finish, many towns in developing countries still rely heavily on gravel and compacted earth roads, which comprise a much greater proportion of the road network than asphalt roads. Such roads tend to be insignificant in developed countries, so that asset management is often seen solely in terms of asphalt roads. However the inclusion of gravel and earth roads in the asset management plan is critical to the success of the plan for secondary towns in Africa. C).Asset Management in Building This manual has physical infrastructure as its primary focus. However, what is said here can be applied equally to other assets, such as the municipal offices and buildings that support social infrastructure. The principles and approach are identical to that set out here using the step approach described in the next section. The main difference of course is that the hard asset sub-category of social infrastructure comprises, primarily, buildings, such as schools, clinics and hospitals. And some buildings, particularly hospitals, can be quite complex. However the use of asset management for schools and clinics would be relatively simpler. The main issue to take into account with buildings is that they comprise a combination of assets and that these different sub-categories of the building could have different design lives and would therefore need to be considered separately. Thus a building typically would comprise: The foundations. The structural core of columns, beams, floors and walls. The roof. Carpentry/metalwork in doors windows and other fixtures and fittings. Wall and ceiling finishes (plastering and paintwork) and floor finishes. Wall and ceiling finishes (plastering and paintwork) and floor finishes. Electrical and mechanical work. Plumbing and sanitary fixtures and fittings. As it has been described earlier this course has physical infrastructure as its primary focus. However, what is said here can be applied equally to other assets, such as the municipal offices and buildings that support social infrastructure. The principles and

approach are identical to that set out here using the step approach described in the next sections. In addition there are then the movables within the buildings that also have to be considered. These can comprise simple fittings, such as chairs, tables, beds and desks; computer hardware and auxiliaries; and medical equipment. All of these need to be included. And finally there is a decision to be made about which department would be most appropriate to manage the asset management process. 1.5. Define the Infrastructure (categories and sub-categories) 1.5.1: Definition of Infrastructure Network Service Categories The first step is to define the infrastructure that will constitute part of the asset management plan. Each major network infrastructure service (e.g. road network, water supply network) is termed a category (i.e. it defines a specific category of assets). And within each category will be a list of s-b-categories, each of which defines a major component of the system. Therefore has two parts to it: 1. To define the categories of infrastructure whose assets belong to the City? 2. To create a list of sub-Categories that will form the basis for the Asset Management Plan. In broad terms, the term category is used to describe a specific infrastructure service that has physical characteristics. There are five categories of assets used for physical infrastructure management that are covered here, which represent the asset owned by the Local Authority. These are: Category 1: Roads and other types of movement network. Category 2: Drainage systems. Category 3: Water supply systems. Category 4: Sanitation and Liquid Waste Systems. Category 5: Solid waste management systems. The responsibility for managing the asset management register should be allocated to one group or department in the local authority. Given the critical importance of the asset management plan to the capital investment program, the head of this group or department should work in close cooperation with the City Manager and the Mayor. It is important to note that the responsibility for the asset management plan does not imply operational responsibility for all categories of assets. Although the Integrated Infrastructure Management Strategy proposes a single management unit for network infrastructure services, this can function at different levels of operational control. For example, the water supply networks are managed by Water Enterprises, established under Regional Proclamation. Or the local authority may form a partnership with a third party to manage parts of its infrastructure network. In these cases, the purpose of the Citys responsible person would be to work with the

operational Department or Management Entity to maintain the integrity of the Local Authoritys Asset base. This means that, in addition to managing the assets under the operational control of the local authority directly, this department or group should also be responsible for ensuring that the Water Enterprise, or other entity responsible for operation, builds the asset management system for the infrastructure under their operational control, e.g. the water supply asset management plan is built by the Water Enterprise. 1.5.2: Definition of Infrastructure Network Service sub-Categories Having determined the list of categories that will have an asset management plan, a list of subcategories can then be created. Ultimately the definition, and upkeep, of sub-category names (as opposed to the individual assets, which remain the responsibility of the City) will become the responsibility of Federal Government. This is because sub-categories will be linked at some stage in the future to a GIS system, where it is important to ensure that there is a common naming terminology (the metadata base). This list will then become part of a wider National Spatial Data Infrastructure Network. For the present the list of sub-categories will be based upon the list provided by this operational manual. Where individual Regions or Cities identify additional sub-categories, these should be added at a Regional or City level. It is anticipated that regular workshops will be held at Regional and Federal level to discuss the Asset Management Plan, and that a revised list of sub-categories will be one outcome of such workshops. The first list described below has been developed from the 9-town Asset Management pilot program described earlier. Category 1: Roads. Sub-categories: Asphalt Road Gravel Road Red-Ash Road Large Block Stone Paved Road Small block (i.e. Cobble) Paved Road Compacted/Reinforced Earth Road Kerbing Pedestrian Sidewalk: Asphalt Pedestrian Sidewalk: Precast Paving block Street signs Culverts (under roads) Vehicles Engineering plant and machinery (e.g. grader) Engineering equipment (soils testing, survey, computing)

Category 2: Drainage

Sub-categories: Masonry Drain Concrete-lined Drains Piped Drains Earth Drain Retention Ponds Detention Ponds Side Weirs Outlet Structures

Category 3: Water Supply Sub-categories: Transmission network: Steel Pipe Distribution network: Steel Pipe Distribution network: Cast Iron Pipe Distribution network: Fiber Cement (bituminized) Distribution network: uPVC (Unplasticised Poly-Vinyl-Chloride) Distribution network: HDPE (High Density Poly-Ethylene) Public Standpipes Isolating Valves Air Valves Scour Valves and Outlets Anti-Vacuum Valves Break Pressure Devices Valve Chambers Treatment systems (with treatment modules) Chlorinators Boreholes Pumps (with sub-types) Reservoirs Yard connections Water Meters Engineering plant and machinery Vehicles Engineering equipment

Category 4: Sanitation Sub-categories:

Public Toilet Blocks Communal Toilet Blocks Septic Tanks Suction tankers Treatment plant (with treatment modules) Vehicles Category 5: Solid waste Sub-categories: Area-based containers Engineering plant and vehicles (e.g. container truck, combination back-hoe) Tractors Trailers Handcarts Donkey Carts Landfill site (with modules) Note:-this is not exhaustive list of main and sub categories. It is possible to add more list of main and sub categories according to assets available.

CHAPTER TWO 2: Build the Asset Management Templates Introduction Once the categories and sub-categories have been created, the next step is to build the basic spatial and tabular database structures that will carry the information on the assets. To do this it is necessary to have knowledge of where assets can be found, how they can be located easily, and how the information about them can be transferred to a database where it can be easily accessed and retrieved. If the information is not readily available, it is a good idea to develop templates to assist in data gathering. A template is a form of specialized container or shell. It has no meaning until it has been filled. However, designing it specifically for an application ensures that the final product will be more accurate and effective. Templates provide the building blocks of the asset management system. As with any successful project, the most effective way to begin is to set out clearly the information that needs to be collected. It is both frustrating and time consuming to spend days or weeks in the field collecting data, only to return to the office and find that critical information has been omitted. Developing a template helps to ensure this will not happen. There are two basic templates that will need to be developed: 1. The spatial template (the spatial data or drawing base). 2. The information template (the tabular data base). 2.1: Building the spatial database template Throughout this process it is important to keep in mind the primary goal of Asset Management, which is the effective management of public assets. So to manage public assets it is necessary to record only public space. This is an important issue. Other development professionals (e.g. urban planners; land surveyors) working in the city have other needs, many of which involve recording all boundaries, both public and private (i.e. a full cadastre).It is particularly important to emphasize to other development professionals that the development of a spatial database for asset management does not require the same level of detail and accuracy as would a planning database. So it is not necessary to wait until the planning or survey department in the City, or the Regional Government, provides a cadastre before commencing with the Asset Management Plan. It is sufficient to take something like one of the maps below and photograph this with a digital

camera. Building an asset management plan is a good example of the application of what is called the 80:20 rule, i.e. 80% of the informational accuracy will come from 20% of the total information-gathering effort or input. The remaining 80% of the effort (input) will be used to refine the accuracy to close to 100%. But 80% is already a significant advance on nothing. Beginning with 80% accuracy in year one is a good start, and with this base in place an asset management plan can be built up to a very high level of accuracy over a three year period. The construction of a spatial database begins with a base map. The template defines the basic structuring elements of this base map. So what are these structuring elements? Essentially they comprise the major activity nodes and linking corridors of movement within the city. All the major infrastructure elements will either follow these corridors or be situated in the nodes. What follows is a list of possible options for building the spatial data template, beginning with the highest level of accuracy and moving through different options with lesser degrees of accuracy. Maps help to develop a template which defines the basic structuring elements of the base map(s). All the major infrastructure elements will either follow these corridors or be situated in the nodes. What follows is a list of possible options for building the spatial data template, beginning with the highest level of accuracy and moving through different options with lesser degrees of accuracy. In our case, the citys team has used the following approaches to develop the citys spatial data templates.

2.1.1. A detailed survey and cadaster A detailed survey provides the highest level of information. This may be taken from a ground level tachometric survey or an aerial photograph where the image has been rectified. Figure 2.1 provides an example of such a plan produced from a tachometric survey. This figure gives an indication of the large amount of data that is captured in a full tachometric survey.

Figure 2.1: Example of a full cadastral survey used as a basis for the roads template

2.1.2. Using a Structure Plan Figure 2.2 below shows an example of a simple structure plan, where some of the structuring elements have been highlighted. Note that a plan at this scale may not show every single road or path. However, following the 80:20 rules above, the work can begin on the main roads or paths shown. Other minor roads and paths can then added over time.

Figure 2.2: Example of a simplified Structure Plan used as a basis for the roads template 2.1.3. Using satellite imagery The third approach is to draw on an existing satellite image. This can be done by searching the internet for images of the City, using sources such as Google Earth for example. If available, the date of such maps should be checked to see how current the information is. They may then

need to be updated. Nonetheless they could provide a valuable base map to begin the process. Figure 2.3 shows such a map (in this case a part of Addis Ababa) downloaded in this way).

Figure 2.3: Example of a satellite image downloaded from the internet 2.1.4. Using the original Master Plan drawings The fourth option is to begin with the Master plan drawings. These may be old and will generally be available only as large scale paper prints. They may also be outdated and/or may not fully reflect the current situation. Nonetheless they provide the starting point. An example of the use of a Master plan is shown in figures 2.4 below.

Figure 2.4: Example of an old Master plan drawing used as a basis for the roads template 2.1.5. Generating a map In the case where even the original Master plan drawings are unavailable, then it is possible to carry out a rough survey of the infrastructure network on the ground using the old maps for guidance and scaling, or to use other forms of spatial data such as schematic maps (often used for water supply networks). For the first asset management plan, the drawings do not have to be very sophisticated to provide useful data. Figure 2.5 and figure 2.6 below show two maps of the same area in a more schematic form. The first provides a rough outline of a road network for a town, whilst the second provides a schematic map of the water distribution network. Both of these can be used to begin to build the asset management database. The main issue, in generating a map, is to ensure that there is a sufficient level of detail present on the map to enable the assets to be defined.

Figure 2.5: Example of a sketch map used as a basis for the roads template

Figure 2.6: Example of a schematic diagram used as a basis for the water supply template Clearly the maps shown above are not ideal. But they are perfectly adequate to develop the first Asset Management Plan. The budget for year 2 can then include for providing a more detailed base map to use as the spatial data template. Once the source of the spatial data has been

identified, the next step is to identify the electronic format that will be used to manage to the spatial data. Two approaches will be described for the next stage of the work, the one using Computer-Aided Design (CAD) package and the other a Geographical Information System (GIS). The choice will depend upon the technology available. The starting point for CAD and GIS is the same. This example starts with method 4 above (using an existing Master plan found on a paper print drawing). Figure 2.4 showed the Master plan outline drawing for a small town, with only the town boundary and the major roads (structuring elements) indicated. The features have been highlighted for greater prominence. The map is shown here in the form of a photograph. This is the method used to transfer the paper print to an electronic format. Once a photograph is available, the digital image will be available in what is termed as raster format. This means that the image is represented by pixels, a format that cannot be used directly for mapping infrastructure. However, this type of image can be used to provide a backdrop over which can be traced a vector map1 (i.e. a map made up of points, lines and area blocks). If a GIS system is available then more sophisticated techniques can be used to generate the vector map, but these methods will not be covered here. In the example used here, the original paper map was drawn to a scale. This means that the vector map can be used directly to provide the different elements of the map with dimensions. With other options the map may need adjusting to ensure that it is approximately to scale. The result is shown in figure 2.7 below. An electronic mapping system needs to be in vector format in order that data can be attached to it.

Figure 2.7: Converting the raster image (digital photograph) to a vector map

This has now provided the basic spatial data template. Up to this point the approach has been the same. The difference between the CAD and GIS environments becomes more pronounced in the stages that follow, with the greatest difference being the inter-active connectivity that exists between the spatial environment and the tabular (i.e. information) database in a GIS environment. 2.2: Creating a tabular database A specific sub-category of asset, e.g. an asphalt road or drainage system a water distribution system, will be made up of many elements (e.g. the individual roads or water pipes). This will result in a number of different descriptive indicators (e.g. road width, pipe diameter), which reflect the variable characteristics of the particular element. It is important to record this information during the assessment survey. The best way to ensure that information is collected in a single visit is to prepare a template that identifies the different indicators. Using roads as an example, in addition to the sub-Category described earlier (e.g. gravel road, asphalt road), there will also be variations related to road width, number of carriageways and structural pavement design. In addition it may be desirable to divide a long section of road into a number of discrete sections for ease of maintenance or quality definition. Each small section of road is described as an element. Thus a sub-category (e.g. gravel road) could be made up of a large number of elements (e.g. segments of the gravel road). The main point to remember is that each element is unique. This is the approach that is applied to linear elements. A similar situation would apply to the linear elements of the water supply category. So for example, using the sub-category of, say, steel distribution mains, and a similar set of variations would apply, defining different elements (segments) of the sub-category by length, class and diameter. The approach to elements represented by a point (i.e. an individual item on a map) is slightly different. Taking as an example the sub-category of isolating valves, the element would be a specific valve (e.g. a gate valve) of a specific size (e.g. 150mm), make and material. Within the solid waste category, for the sub-category of solid waste containers, there may be only one type of container in use. However, there would still be a number of them. So there is only one generic description of the item here. Nonetheless, each individual container is an element, so the system needs to be defined so that each container can be identified separately. If there were two different sizes of container in use, or if more than one material were used to construct containers of similar size, the description of the element has to contain additional information. Three examples are provided below to clarify this approach. The first is a segment of gravel road; the second an isolating valve on a water supply network. Example A: A linear element, in this case segment of gravel road: Category: Roads and Movement Networks.

Sub-category: Gravel road. Element description: A segment of gravel road defined by two node points, one defining the start of the element and the other defining the end of the element. Identifier for the element: A unique road number. Example B: A segment of Drainage for each sub-category Category: Drainage system Example C: A point element, in this case an isolating valve: Category: Water Supply Network. Sub-category: Isolating Valves. Element description: A specific isolating valve defined by a specific geographic location and described according to materials, type and size. Identifier for the element: A unique number.

Table: 2:1 Basic Elements of Road for each sub-category Category Sub-categories 1-Road Element Description

Cobble Stone paved Are linear elements; Have two nodes, representing a start point roads and an end point ,have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map usingAutoCAD; classified by their condition, etc.

Road

Gravel Road

Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Road

Earth Road

Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Pedestrian

Are linear elements; Have two nodes, representing a start point identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Walkway:Cobblestone and an end point, have width & length, represented by unique

small blocks

Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Bridge Street signs

Are point element classified by condition material type Are point element

Table: 2:2 Basic Elements of Drainage for each sub-category Category 2-Urban drainage system Sub-category Masonry Drain Element Description Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, pipe drains Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, pipe diameter classified by their condition, etc.

Earth Drain

Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys mapusing AutoCAD; classified by their condition,

Table: 2.3 Basic Elements of Water Supply for each sub-category Categor y Transmission network: 3-Water supply Steel Pipe Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using Sub-categories Element Description

AutoCAD; classified by their condition, etc. Distribution network: Are linear elements; Have two nodes, representing a start point and Cast Iron Pipe an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Distribution network:uPVC(Unplast icisedPolyVinylChloride)

Are linear elements; Have two nodes, representing a start point and an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Distribution network: Are linear elements; Have two nodes, representing a start point and HDPE (HighDensity an end point, have width & length, represented by unique identifier, should be broken in to pieces, indicated on the citys map using AutoCAD; classified by their condition, etc.

Poly-Ethylene)

Given the wide range of variables that can exist within sub-categories, it is important that the basic database structure be developed prior to the survey of assets and construction of the asset register. The more variations in sub-categories that can be defined prior to the survey the lower the number of errors that will be made in generating the asset base. Not only does a well thought out database structure limit the number of visits needed to collect data, it also means that the processing of data will be so much easier and quicker. The two lists below provide examples of data for two sub-categories: roads and water distribution mains. The tabular database is drawn from the work in the pilot project mentioned previously, and was produced in a relational database format using Microsoft Access, although it would operate equally well in OpenOffice.org base (the open source equivalent). Alternatively, this database could also be generated initially in a simpler spreadsheet format, such as Microsoft Excel or OpenOffice.org Calc. This would be a temporary measure for year one only, though, due to the greater complexity of managing (and updating) such large quantities of data in a spreadsheet format. Note that these lists are not definitive and that more indicators may be added (or withdrawn) depending upon individual circumstances. An important point to note when constructing the spatial and tabular databases is the importance of defining coordinates, particularly if the map was generated from a Master Plan and national coordinates are not predefined. In this case it will be necessary to create a local X,Y, coordinate reference system for the Asset Management Plan. This should be linked to a prominent spot (either a survey beacon or a clearly identifiable landmark), so that the local coordinate system can be linked easily to the national grid. The following list covers the basic information to be collected on each road element: Auto id (automatic identifier allocated by the database) Road id (an identifier unique to each road). At this point a simple id will be used to describe the process. Road surface type (material). Width of Road (m). Length of road (m). Node id (an identifier associated with the junction of two roads). This allows the start and end point of a road to be defined, using a start point (node origin point) and end point (node destination point) for each road. Node start point. Node end point. Single or dual carriageway. Road classification*. Road design specification*. Road reserve width*. Date of construction*. *Note that information such as that marked with an asterisk is not always available. It is, however, crucial information that directly affects the accuracy of the Asset Management Plan.

Even if it is not readily available in the first year, provision should be made for this data to be collected in subsequent years. This second list covers the basic information to be collected on each water main: Auto id (automatic identifier allocated by the database) Water main id (an identifier unique to each water main). Internal diameter of water main. Water main material of construction. Pressure rating. Length of water main (m). Node id (an identifier associated with the junction of two water mains). This allows the start and end point of a water main to be defined, using a start point (node origin point) and end point (node destination point) for each water main. Node start point. Node end point. Depth of main below surface*. Design criteria*. Date of construction*. *Note, the same point on availability of information applies equally to water mains. In fact the situation is often even more severe in respect of the lack of adequate data. The building of an Asset Management database with limited data is covered in Step 3. This step seeks to define the information required, as distinct from the information available. This next list covers the basic information to be collected on each drain: Auto id (automatic identifier allocated by the database) Drain id (an identifier unique to each storm water drain). Internal diameter of drain (for pipe drains). Pipe material of construction. Shape of drain (open channel drain). Dimensions of drain (open channel drain). Lining material (open channel drain). Length of drain (m). Node id (an identifier associated with the junction of two drains). This allows the start and end point of a drain to be defined, using a start point (node origin point) and end point (node destination point) for each drain. Node start point. Node end point. Depth of main below surface (for pipe drains)*. Design criteria*. Date of construction*. *Note, the same point on availability of information applies equally to storm water drains.

The items above are all examples of linear assets. Point-based assets (e.g. communal toilets or solid waste containers) should be treated on an individual basis, as described above. And areabased assets (e.g. retention ponds; land-fill sites) would also be treated in this way. 2.3: Define the spatial operating environment (i.e. CAD or GIS) Everything that has been described up to this point is applicable to the construction of an Asset Management Plan, regardless of whether information is stored in a CAD system or a GIS. From this point onwards, however, the storage medium becomes important to the further development of the Asset Management Plan. This section covers some of the main differences between the two, as they affect the approach to data management. The basic system is taken to be a CAD operating environment, as this is the cheapest and simplest system to use. To carry out all of this work effectively, the department or institution responsible for developing and maintaining the system has to be equipped with certain tools that will enable them to function. Thus each group responsible for an asset category will require a computer, together with software for basic office use, database management and digital drawing (CAD). Unlike the spatial environment of the GIS, the normal CAD system does not provide dynamic inter-operability between the spatial and tabular data bases (this will be explained in more detail in the discussion on GIS). This means that the updating of the tabular and spatial data bases has to be done separately and the information transferred manually from one to the other. This is a lengthier procedure, and the additional time of working in this spatial environment should be built into the management plan. The spatial environment of the GIS, on the other hand, does provide a dynamic relationship between the tabular and spatial data bases. This is done through the use of the unique identifier. Because each element is already defined by such an identifier, it becomes a simple matter to attach other information to that element. Such information is known as attribute data, meaning that it is attributed to the element in question. As a result of this inter-operability, once the information is entered in the tabular data base, it will immediately be reflected on the spatial data base. Thus clicking on an element on the spatial view of the GIS will bring up all of the attribute data that is associated with this element from within the tabular database. This is what creates a dynamic system and makes the GIS so useful and also powerful as a management tool. When information is changed or added, either spatially or in the attribute database, records associated with this element are automatically updated. Furthermore, the linkage of data in this way allows queries to be generated or linkages established. Thus it is possible to see where maintenance was carried out during a specific period, and to highlight, for example, all roads that were maintained during that period. Or it is useful to identify leakage patterns in water pipes and use this to guide replacement schedules. Because of this dynamic relationship, it is crucial that the development of terminology for different sub-categories,

described in chapter 1, is given thought and developed with care. Changes in spelling, or the multiple uses of terms to describe the same sub-category, can seriously limit the effectiveness of spatial data management. Hence the move towards national spatial data registers. Finally, it is important to recognize that for a query to be made, data relating to that query must first be entered into the system. And the accuracy of the information recovered is only as accurate as the accuracy of the data entered. 2.4: Compile an Inventory of Assets This is the point at which the first part of the work in the office, on building the database templates for the asset management plan, is complete, and the exercise moves into the field. This exercise will take several days, depending upon the extent of the work and the amount of detail already available. Compiling the inventory of assets requires two actions to be taken for each element. The first action is to define the physical extent or nature of the element, and the second action is to provide that element with identification. 2.4.1: Define the physical extent/positioning of the elements Some elements, for example a gate valve or a road sign, may be easy to define. Others are more complex. For example, where does a water pipe or a length of road begin and end? The first useful distinction to make is between elements that can be defined as single items (e.g. the valve and road sign described above, which can be shown on a map as points), elements that take a linear form (such as water pipes) and elements that are described by area (such as a roof, floor or retention basin). Roads, although having a width, are generally described as linear elements measured along their centre line, with the width of the road being an attribute (i.e. one of the descriptive indicators of an element). Points and areas are generally easy to define. It is linear elements that need most thought. And here a degree of personal judgment is required. The objective is to provide easy identification whilst avoiding duplication and confusion. The subcategories containing linear elements will generally require that to be divided along their length. The points where such division takes place are known as nodes (which are represented on the map as points). A linear element will therefore begin and end at a node. These nodes should be logical points of change in the system, for example changes in design (e.g. road width or pipe diameter) or, in the case of a long road or water main, an intersection point with another road. Water pipes are more difficult to break down into elements, particularly with old systems, because details are often missing and visual inspection is not possible. All that can be done here is to use those points that are known, such as valves or cleaning access points. Two useful rules to guide the creation of elements are: 1) there should be a node wherever two elements come together and 2) if in doubt create a node. It is better to have more nodes than not to have enough. The table has shown here details the asset inventory data for the water supply network. This is for a town of approximately 100,000 persons with water coverage of around 70%. This table provides an example of data that is available at a strategic level only, and reflects a situation

where there is very little information available for individual elements (e.g. individual pipes) within the water sub-category. In spite of the limited amount of information, there is still sufficient data available to populate the initial asset database, and make an initial assessment of the cost and value of the network. Further survey work at a later stage will them improve the level of accuracy.

Water Supply sub-Category Details Transmission network 20.603 km Distribution network 163.504 km Valves number not known Treatment systems None Chlorination system 1 (total number) Boreholes 6 (total number) Pumps (with sub-types) 12 (total number) Reservoirs 2 (total number) Yard connections 10,415 (total number) Water Meters 10,415 (total number) Mobile plant and machinery None Vehicles 2 (total number) Engineering equipment None Office 1 (total number) Table 2.4: an example of sub-category data for a water supply network 2.4.2 Provide elements with an identity (create unique identifiers) An identifier is an alpha-numeric string (i.e. a list of characters and letters) attached to an element. The identifier does not contain all of the attribute data for an element; that is provided in the database. The objective of the identifier is to be able to locate the element in both the spatial and the tabular databases. It is also important to be able to distinguish the category and sub-category to which the element belongs. This is particularly important for linear elements, where different services are provided in the same vicinity (e.g. road, a water main and an electrical cable for example). So the unique identifier provides both a definition of the element, and a linkage between the elements as it is defined on the map, and the information that is associated with the element in the tabular database. To achieve this, it follows then that an identifier should describe only one element; hence the term unique identifier. Thus r1 could be an identifier meaning road 1. This is clearly simplistic, but gives the general idea. In defining identifiers in this way care should be taken not to become too complex, by trying to incorporate too many descriptive indicators in the identifier. Specific proposals for creating the unique identifiers are described after this next part

of the discussion that focuses on the wider geographical context of an asset (i.e. local authority assets in a Regional or Federal context). See table 2.5 below. The context for defining what is unique will be linked to the mapping process. In an urban context the town boundary will often define the context for the identifier. However, there may be more than one spatial level involved (for example where there are both municipal and national roads within the City boundary). In this case the national road will have an identifier that links it to a national database, while the municipal road could have an identifier that is linked to the municipal database. In the latter case it is possible to have similar identifiers in different towns, but this is not a problem since each town will have its own separate map. If town information is to be used at a regional level, however, the identifier should include a character which is specific to the town. In a water supply scheme the extent of the identifiers should correspond to the boundaries of the scheme. And again if schemes are linked at a regional level they should have a unique character set that defines the scheme spatially in the regional (or federal) context. In summary then, identifiers should provide a basic level of information that (a) provides an indication of its category and sub-category; and (b) situates the element in a specific spatial context. This next part of the chapter looks at the development of the identifiers themselves. The context is defined by the local authority boundary. As part of the wider urban asset management program, Federal Government, working with Regions and in consultation with local authorities, will develop a unique identifier for each local authority. Many asset management plans incorporating road networks provide an identifier for the specific road (as defined by its name). The system used here assumes that road names are not present or are not complete. Even here, though, a two tier system is recommended for linear assets. It can be quite difficult to find an element, particularly in a CAD drawing, since there is no clear geographic context for the identifier; having a longer reference item help to overcome this problem. To assist further in simplifying the location of assets, it is proposed that the indicator provide some indication of geographical location. The first step in developing the identifier system is therefore to create a grid for the City. The issue of geographic location is less problematic on a GIS, as typing the element identifier will highlight the element on the map. Nonetheless the coordinate system should still be used. This provides the following system of identification: Example of an identifier for a linear asset (in this case Gravel Road on a Movement Network): MN/RG001/00/a4b5. The identifier is divided into four parts, each separated by a forward slash.

The first two letters identify the category of asset, followed by a forward slash. In the example the letters MN stand for Movement Network. The second two letters identify the sub-category of asset and are accompanied by a three digit number, followed by a forward slash. In the example the letters RG stand for Road, Gravel. This system of numbering allows up to 999 linear components per sub-category. The third section comprises a two digit number, which defines the element itself. This is also followed by a forward slash. In the example RG001 stands for gravel road 1. The second number is two digits and provides up to 99 elements per sub-component. Here the sub-division is not used as the first three-digit number is sufficient. The final section comprises four alpha numeric characters that together define the geographical location, with the North Reading first and the East reading second. The first character of each will define the large grid. Each square of the large grid will be divided into ten parts, reading from 0 to 9. The grid should be defined from outside the town with a 0,0 coordinate in the South Western corner. This system defines the element of a linear network RG000/00. In this case (where the number 0 represents any number). As mentioned above, the second string (/00) is not used here. This would be the case if the element is the same as the road (i.e. it is a short road that does not require breaking down into more, smaller elements). An example of a long road that required further breaking down into elements might be, for example RG001/15. This would describe the element as the 15th element of road RG001. This more extended system is useful when there are road names. This allows the first three-digit number to be an identifier for a road name, and still allow a road to be broken down into elements (the second two-digit number) for more effective management. For point source and area-based assets, only a three component number would be required, with the following system of identification: Example of an identifier for a point-based asset (in this case anIsolating Valve on a Water supply network): WS/IV001/a4b5. Set of Identifiers for all sub-categories of Assets Table: 2.5 Identifier of asset category and sub categories Category of Asset 1. Road Sub-Category 1.1. Gravel Road 1.2.Cobble stone Road 1.3. Earth Road Identifier RG CR ER Description RG - Gravel Road CR - Cobble Road ER- Earth Road

1.4 Small blocks 1.5 Pedistrain walk way 1.6 Bridge 1.7 Street signs 2. Urban Drainage System 2.1. Masonry Drain 2.2. Earth Drain 2.3. Pipe drain 3.1. Transmission Network 3.2. Distribution Network 3.Water supply net 3.3. Isolating Valve work 3.4. Treatment systems 3.5. Chlorination system 3.6. Boreholes 3.7. Pumps (with sub-types) 3.8. Reservoirs 3.9. Yard connections 3.10. Water Meters 3.11. Mobile plant

SB PW B SS MD ED PD TN DN IV TS CS BH Pp Rs YC WM and MM

SB -Small blocks PW- Perdistrain Walk way B- Bridge SS- Street light MD - Masonry Drain ED - Earth Drain PD- Pipe drain TN - Transmission Network DN - Distribution Network IV - Isolating Valve TS - Treatment System CS - Chlorination System BH -Bore-Hole Pp Pumps Rs Reservoir YC -Yard Connection WM - Water Meter MM - Mobile plant &

machinery 3.12. Vehicles 3.13. Engineering Equipment VI EE VI stands for Vehicle EE - Engineering Equipment

3.14. Office 4. Sanitation 4.1. Public pit latrine 4.2. Communal pit latrine 1.3.Public shower 5. Solid waste 5.1 Donkey Carts 5.2 Damping site 5.3 Area based container 6. Street light 6.1 Sodium lump 6.2 Florescent Lump 6.3 Land light 7. Mobile Asset 7.1 Computer 7.2 Marchdis car 7.3 Photo copy 8.1 Quataba bet 8. Building 8.2 Low cost house 8.3 Rent shops 8.4 Kebele house

OF PT CT PS DC DS ABC SL FL LL C MC PC QB LCH RS KH

OF Office PT - Public Toilet CT - Communal Toilet PS- Public shower DC - Donkey-Carts DS - Damping Site ABC- Area based container SL -Sodium Lump FL- Florescent Lump LL- Land light C Computer MC- Marchdis car PC- Photo copy QB- Qutaba bet LCH- low cost house RS- Rent shops KH- kebele house

2.4.3 Building the database Having completed the construction of identifiers for all sub-categories of assets, each element of the asset database can now be identified. This should be done by a physical survey, using the map to confirm that the assets actually exist and are in the place indicated on the map. If they are not already indicated, then they are added. This part of the work is best done using a GPS, which can be provided by the Regional Bureau. If a GPS is not available however, the work can be carried out using an approximate coordinate system developed on the map and described in the previous section. The information included in the inventory is that covered in section 2.4.2. This data is termed attribute data, which is, quite literally, any information that can be "attributed" to a specific asset. In practice, attribute data can be divided into two parts. The first part covers the information associated with the asset at the point when it was purchased or constructed, and is that covered in previous chapter. The second part of the attribute data covers the information associated with the asset as it progresses through its project life cycle (i.e. Operation and Maintenance related data). This would equate to information provided in a maintenance log, for example (for a road), or in a schedule of details of repairs (for a water main). Eventually all of this information will be attached to the tabular database. The point-based elements are easily identified and have only limited attribute data. This is also true, to some extent, with the area-based data. Here the geographical information and the attribute data can be collected in one trip. With the visible linear assets (roads and drains) those responsible for the asset management plan may prefer to collect the spatial data initially, update the map and then return with an updated map to collect attributes data. Underground assets (e.g. water mains) cannot be identified this way. However, all house connections can be identified, and this will help to confirm the routes of water mains as used on schematic diagrams. The position of house connections, as well as other above ground water main related assets such as valves and hydrants should all be noted. Once all spatial information, the team can see how much attribute information can be collected from written records. This may then need to be supplemented by a second visit, to confirm add or missing attribute data. 2.4.4 Update the drawing/plan of the Assets Once all the spatial information has been gathered on the assets, this should be transferred to the spatial data base template (the digital drawing). This will bring the drawing up to date and provide full information in a spatial format. Having done this a set of paper prints should be made that are available in the office of the department/group responsible for the asset management plan, as well as in other departments or groups who may be involved in the planning and/or operation of the asset base. Updated drawings of the assets in their area should also be made available to all Kabele offices.

Note that, after the completion of this step, drawings will operate at two levels of information. The first level of information will cover major asset sub-categories (e.g. movement networks, drainage networks, water reticulation networks and major sanitation and solid waste assets (e.g. treatment units, communal and public toilets, containers). This is the drawing data that will normally be distributed. The second level of information incorporates the minor sub-categories (e.g. valves and fittings, drainage points) and information on nodes. This drawing information is used for management and maintenance of the assets.

CHATER THREE

3: Assess the Condition of Assets

An Asset Condition Assessment is the process of continuous or periodic inspection, assessment, measurement and interpretation of the resultant data to indicate the condition of a specific asset so as to determine the need for some preventative or remedial action. It is a crucial part of asset management to determine remaining useful life and an assets capability to meet performance requirements. Assessing the condition of assets may require benchmarking or developing quality/standards profile against which the asset can be managed. With above ground assets this will generally take the form of visual inspection, although in some cases it may also involve mechanical testing. A road for example needs to have some definition of the types of deterioration that occurs and a quantitative description of what constitutes different levels of deterioration. Here a three- or fivepoint scale could be used. The definitions and descriptions will differ for different road surfaces. Where assets are below ground then more indirect methods should be used, at least in the first instance. Thus a water main quality could be linked to the extent of leakage or number of breakages for example. Again this is illustrated further in the course material on Water Supply. And finally, with mobile assets, the visual checks should be combined with the use of service records and design life to assess condition. Deciding how often to assess an asset will be linked to the nature of the asset, its design life and its level of use. Mobile plant may need checking monthly, weekly or even daily. Other assets, such as water supply mains, which have a design life in excess of 60 years, may require assessments only every two or three years. Roads should be assessed annually. What follows is a description of an assessment procedure for Roads and Pathways, since this is considered to be the most complex infrastructure service to review.

3.1: Assessment using simple condition indicators

There are different levels of assessment that can be used to determine the condition of assets. Owners of major assets (e.g. the ERA) would employ sophisticated assessment methods. However, this is also linked to the nature and use of the assets. For example, asphalt roads on Federal highways with high axle loadings require sophisticated assessment techniques to ensure rapid reviews of large surface areas to a sufficient level of analysis. This degree of sophistication is not required for the majority of urban infrastructure outside of Addis Ababa, since where the major through routes are ERA (Ethiopian Road Authority) roads. For the majority of assets, therefore, it is adequate to use simpler assessment techniques that links condition to a simple three point scale based upon visual inspection. Here the three points would link to whether the asset could be repaired using simple maintenance procedures; whether a more specific repair is required; or whether rehabilitation is required. Examples are provided below for different categories of Assets.

A. Roads and Movement Networks Table 3.1 below provides a description of the state of the road/network for different surfaces, with a brief description of each condition. Note that simpler assets may have only two condition indicators. Type of Road and Indicator Asphalt road Light (covered by maintenance) Moderate Extensive (sever) Brief Description

Can be repaired within the normal maintenance procedures Can be repaired by patching Requires work on both the asphalt layer and the base course, with compaction.

Red Ash Light (covered Can be repaired within the normal maintenance procedures by maintenance) Moderate Small areas of coverage; can be repaired by hand compactors Extensive(sever) More extensive and requires machine compaction or rehabilitation. Earth Light (covered Can be repaired within the normal maintenance procedures by maintenance) In need of Effectively requires remaking the road. rehabilitation Pedestrian walkway Light (covered Can be repaired within the normal maintenance procedures by maintenance) In need of Major repairs requiring resurfacing. rehabilitation Table 3.1: Example of simplified assessment indicators of the condition of roads and paths

Table 3.2 below provides a summary of the total road/pathway network in a smaller town, where the results are based upon this type of rapid assessment. Note that this summary is derived from a survey of all roads and paths in the town.

Condition of Road (to the nearest 0.1km) 2.9km in a state of light (i.e. limited) Asphalt 6.85 deterioration 3.56km in a state of moderate deterioration 0.39km in a state of severe deterioration 18.8km in a state of light (i.e. limited) Gravel 27.52 deterioration 5.3km in a state of moderate deterioration 3.42km in a state of severe deterioration 6.7km in a state of light (i.e. limited) Red Ash 6.73 deterioration 0km in a state of moderate deterioration 0km in a state of severe deterioration 15.3km in a state of light (i.e. limited) Earth 36.84 deterioration 14.8km in a state of moderate deterioration 6.5km in a state of severe deterioration Table3.2: Example of an output from a simplified assessment of the condition of roads and paths in a town A more detailed technical assessment procedure can be found in the Roads Operational Manual produced by the Ministry of Works and Urban Development. This procedure is more specific, both in terms of describing the nature of the damage and also in moving to a measure of deterioration based upon road surface area, rather than simply road length. It is suitable for use with asphalt roads and more heavily trafficked gravel and Red-Ash roads. B. Drainage Network Again a simple three point scale can be used, with the condition of the drains being classified as good, moderate or poor. If the drains are in good condition they can be managed under a normal maintenance plan. Drains in moderate condition can be rehabilitated by local work. Drains where the condition is poor would require sections of drain to be re-laid or completely reformed. A similar approach can be adopted for drainage ponds and small structures.

Road Surface Type

Total Length of Road (km)

Table 3.3: A simplified Assessment of Condition of Drainage Network

Type

of

Drainage

and

Brief Description

Indicator

Masonry Drain Good Moderate Poor/ severely deteriorated can be managed under a normal maintenance plan can be rehabilitated by local work require sections of drain to be re-laid or completely rehabilitated Earth Drain Good Moderate Poor/severely deteriorated` Can be repaired within the normal maintenance procedures Effectively requires remaking the drain Require sections of drain to be re-laid or completely rehabilitated Pipe drain Require sections of drain to be re-laid or completely rehabilitated

C. The Water Supply Network The assessment of a water supply network should begin by dividing the network into three component parts: Major above ground assets that can be visually inspected. The reticulation network.

 Individual items (e.g. valves, control fittings, water meters). The approach to each of these will be different. For the major above ground assets, the approach followed in the roads and drainage sections can be applied here (i.e. the use of a simple three point scale). For the reticulation network, the breakage and repair record for the system provides the best indicator of condition. This should be accompanied by a visual inspection and recording of all sections of pipe that are removed for repairs, so as to build up a more detailed assessment. Finally individual items should be classified initially according to age (depreciation). Once a maintenance system is in place then the information on these assets can be upgraded. 3.2: Update the drawing/plan of the assets Once information on the condition of the assets has been collected this should be added to the drawings. A system of color coding can be used to identify the different condition categories. This operation is automated in a GIS but will need to be done manually in a CAD system. 3.3: Develop a Maintenance Budget Guide for each Asset This section deals with the creation of a maintenance plan for asset management. Where a maintenance plan already exists, this step will begin with a review of the past years maintenance work. The same procedure will be followed as is indicated here. However, instead of building the maintenance plan as described in previously, the procedure will review the plan and update it. The same will apply to for each year of the asset management plan. Maintenance is a key element of infrastructure asset management. Not only does the asset management plan show the cost implications of poor maintenance, in terms of an accelerated asset deficit, as discussed in the next chapter; it also shows the importance of integrating capital and recurrent expenditure. This section deals with the development of a maintenance plan. The integration into the wider Asset Management Planning process, and particularly the interaction between capital and recurrent expenditure, will follow in later steps. The development of a maintenance plan involves creating a schedule of what actions need to be taken to maintain the condition of the asset; when such actions should occur; and who is directly responsible for the actions. The following figure shows the impact of maintenance on the total life service of asset.

In building up these costs, it is also important to recognize that, if an asset management system is being implemented for the first time, with assets that are already operational, then this costing exercise will also have to include rehabilitation work. Once the assets are rehabilitated, then the costing process would revert to that dealing with preventative and routine maintenance. The development of a maintenance plan will vary between services. For the major services of roads and water supply, the examples shown here are drawn from the respective operational manuals. In many cases the figures quoted below comprise a first estimate of maintenance costs on an annual basis. Because there is little history of maintenance, the cost cannot always integrate past experience. Having set out the maintenance plan, however, it will be possible over the subsequent years of operation to cost each of the maintenance needs much more accurately. This will mean that, by the second and third years of the AMP, more accurate figures can be used and the maintenance plan will be much clearer. 3.3.1: Defining the maintenance activities This step then begins by pulling across the list of maintenance activities developed in the Citys existing maintenance plan for the individual infrastructure services. If such a plan does not exist, then this step provides an opportunity to initiate a planned maintenance operation. The tables that follow show a simple maintenance task list for each major service. These are illustrative and have been simplified for this purpose.

Category: Roads Road Sub-Category Asphalt Roads Red-Ash Roads Earth Roads Pedestrian Sidewalks Culverts Rate Used for Maintenance per m2 per m2 per m2 per m2 each Details of Maintenance

patching and sealing Filling, grading and compaction Filling, grading and compaction patching and sealing cleaning and pointing; maintain foundations Street Signs n/a cleaning and replacement Vehicles per vehicle year servicing, tyre change, replacement of parts Major Plant and per vehicle year servicing, tyre change, replacement of Equipment parts Engineering Equipment item n/a at this stage Table 3.3: Summary of maintenance needs by sub-category: Roads Category: Drainage Rate Used for Maintenance Masonry Drain per l.m.* Earth Drain per l.m.* Pipe Drains (excluding per l.m.* culverts) Retention Ponds per m2 Outlet Structures each Drainage Sub-Category Details of Maintenance Cleaning and pointing Cleaning, grass cutting, levelling slopes Cleaning Cleaning and grass cutting cleaning and pointing; foundations

maintain

*. The term l.m. denotes linear metre. Table 3.4: Summary of maintenance needs by sub-category: Drainage Category: Street lighting Street Light Sub-Category Rate Used for Maintenance Details of Maintenance

Street lights Each Cleaning, lamp replacement Table 3. 5: Summary of maintenance needs by sub-category: Street lighting

Category: Sanitation Sanitation Sub-Category Public Toilets Communal Toilets Suction Tankers Rate Used for Maintenance Each Each per vehicle year Details of Maintenance

Cleaning, painting, emptying Cleaning, painting, emptying cleaning of tank, servicing, tyre change, replacement of parts Treatment Plant n/a n/a Vehicles per vehicle year none Table 3.6: Summary of maintenance needs by sub-category: Sanitation Category: Solid waste Solid Waste Sub-Category Area-Based Containers Each Rate Used for Maintenance Details of Maintenance

Check for corrosion, welding repairs Plant and Vehicles Per vehicle year servicing, tyre change, replacement of parts Landfill Site n/a n/a Table 3.7: Summary of maintenance needs by sub-category: Solid waste Category: Water Supply Water Supply Sub-Category Transmission network Distribution network Valves Treatment systems Chlorination system Boreholes Pumps (with sub-types) Reservoirs Yard connections Water Meters Mobile plant and machinery Vehicles Engineering equipment Office Rate Used for Maintenance per l.m. per l.m. Each n/a Each Each Each Each Each Each per vehicle year per vehicle year per vehicle year item Details of Maintenance Replace broken sections Replace broken sections Strip, clean and repack, check wear n/a Clean and replace parts, chlorine use Check Service and replace parts Clean, check leakage and valves Replace broken sections Testing and servicing servicing, tyre change, replacement of parts servicing, tyre change, replacement of parts n/a Painting and repairs

Table 3.8: Summary of maintenance needs by sub-category: Water Supply 3.3.2: Building a catalogue of Unit Rates for Maintenance Having constructed these lists of tasks for the different services, each task can be allocated a unit rate. These rates should be updated each year. In the absence of historical maintenance data, the operational manual proposes using percentage figures to calculate maintenance costs. The figures proposed are: 1st full year of operation: 0% of capital cost, 2nd full year of operation: 0.5% of capital cost, 3rd full year of operation: 1.0% of capital cost, 4th full year of operation: 1.5% of capital cost, 5th full year of operation: 2.0% of capital cost.

Sub-Category Roads: Cobble stone Gravel Roads Earth Roads Street Signs Bridge Sub-Total Drains: Masonry drains Earth drains Pipe drain Sub-Total Street lighting: Solid waste: Total maintenance cost Area based container

unit

Quantity

Rate

cost(ETB)

M2 M2 M2 No No

50 20,000 320,000 8 4

86 35 20 25 4000

4300 700,000 6,400,000 200 16,000 7,120,500

lm lm 1m

3.72 5000 300

450 4 10

1674 20000 3000 24,674

No

200

30

6000

24,674 No 6 50 300

Donkey carts Damping site Sub-total Sanitation: Public latrine Public shower Communal pit latrine Sub -total

No No

6 2

150 300

900 600 1800

Block Block No

5 5 80

300 1500 1610

1500 7500 12,880 21,880

Table 3.9 Summary of unit rates for all maintenance activities in each asset category

3.3.3: Cost the total budgetary requirements for maintenance

Using the results of the infrastructure condition assessment a schedule of quantities can be developed that covers all the maintenance requirements. This combines maintenance activities, unit rates and quantities to produce an outcome similar to that shown in the two tables below. The first table covers infrastructure services with the exception of water supply. Note that the quantities for roads only include those roads with light or limited deterioration. More severely deteriorated roads are dealt with separately in. The second table then covers the water supply system. Taken together the two tables will provide the estimate for the maintenance budget backlog. Once the backlog has been eliminated, then this exercise will provide the maintenance budgetary requirements for the following year. This section provides the total budgetary requirement. Integrating this into the recurrent expenditure program

Sub-Category Roads: Asphalt Roads Gravel Roads Red-Ash Roads Earth Roads Pedestrian Sidewalks Culverts Street Signs Vehicles Major Plant and Equipment Engineering Equipment Sub-Total Drains: Masonry drains Earth drains Retention ponds Sub-Total Street lighting: Sanitation:** Solid waste:** Total Maintenance Cost:

Unit of Measure m2 m2 m2 m2 m2 Each Each per vehicle year per vehicle year Item

Quantity

Rate2

Cost (EB)*

21,448 141,000 50,250 114,750 2,500 123 nil currently nil currently 2 nil currently

7 2.4 1.6 0.5 4 200 400 5,000 10,000 10,000

150,000 338,000 80,000 57,000 10,000 25,000 0 0 20,000 0 680,000 24000 16000 3000 43,000 17,000 30,000 30,000 800,000

l.m. l.m. m2 No. Lump sum Lump sum

11,953 8,028 10,000 100 1 1

2 2 0.3 170 30,000 30,000

Table 3.1o: maintenance activities, unit rates and quantities of road network

NOTE: These examples of rates should be replaced by those applicable in the Cities themselves. The way in which they have been applied here is to use a figure of 2% of capital cost per year for larger items and estimates provided by different Cities for the remainder. Where no figures are available then an amount has been chosen that appears reasonable, to begin the process of building the maintenance budget.

The table 3.11 shows the high potential cost of maintaining the road network, and highlights the importance of well-planned, effective, road maintenance to reduce this figure to a minimum. Water Supply Sub-Category Transmission breaks Distribution network breaks Valves Chlorination system Boreholes Pumps (with sub-types) Reservoirs Yard connections Water Meters Mobile plant and machinery Vehicles Unit Used for Maintenance network each each each each each each each each each per year per year item item Rate (EB) 2,000 400 50 2,000 1,000 2,000 5,000 100 50 10,000 5,000 Amount 5 200 100 1 6 2 1 500 2,000 1 4 Cost 10,000 80,000 5,000 2,000 6,000 4,000 5,000 50,000 100,000 10,000 20,000

vehicle vehicle

Engineering equipment 10,000 1 10,000 Office 20,000 1 20,000 Total Cost of Maintenance 322,000 Table 3.11: Example of the maintenance budgetary requirement for the water supply network. Here the table highlights a major cost for water mains, which again reflects the absence of planned maintenance.

3.3.4: Add information to attribute data base

This maintenance information needs to be added to the attribute data developed in chapter 2 of the process. This ensures that the information on the asset and the information on the maintenance record are linked and can be found in one place. This maintenance attribute data record for an asset should record a description of the action taken, the date, the cost of the action, staff involved, and their time, and comments. The record should also include repair work carried out in response to emergencies (e.g. pipe breakages) with similar details. This information will be carried forward to Step 9 in chapter 5 where it will be refined following agreement on capital spending plans. The final maintenance schedule will be developed in Step 10 in chapter 5.

CHAPTER FOUR
4: Cost, and Residual Value, the Existing Asset Base and its Deficit
By this point the Local Authority should have a comprehensive overview of its infrastructure asset base and the condition of the infrastructure assets. The next phase of the program of building an AMP is to build information on both the costs of infrastructure and their value (which is related to, but not the same as, their cost). The capital cost of an asset is often seen, by local authority decision makers, as the major cost component. However, if assets are viewed from the perspective of Life Cycle Costing, then it will be seen that the operation and maintenance costs play a major role. Hence knowledge of operation and maintenance costs is equally important, as is knowledge of how well an asset retains its value. If an asset, such as a road for example, is not maintained, then its working life will be reduced significantly. Similarly if an asset such as a water main is poorly planned (for capacity against future growth for example) then its effective working life will also be reduced significantly. This will impact on the credit worthiness of a City (and its ability to borrow money from capital markets) as well as requiring a City to replace its assets earlier than originally planned. Hence knowledge of both asset cost and asset value are important for the successful functioning of an Asset Management Plan. There are two different types of information required about asset cost and value. The first relates to the replacement cost, i.e. what would the asset cost to replace with a new asset of the same (or modern equivalent) specification. This information can be obtained from different sources, including suppliers and contractors as well as the organizations own recent experiences. The second type of information relates to current value, i.e. what is the asset worth now. There are two ways of looking at this. The first is an accounting view. This requires linking the value of the asset to a depreciation rate. For a first approximation straight line depreciation can be used to make this calculation. In this case, the asset falls in value from its initial value to its final or residual value by the same amount across each year of its life. Where inflation is significant this will need to be taken into account in the calculation. As knowledge of the infrastructure asset base grows, this depreciation rate can be changed to follow a more accurate depreciation curve related to the specific asset3. This knowledge of both the asset replacement cost and the current value is necessary in order to track the financial status of the asset for the purpose of both valuation and replacement. The difference between the current and replacement values represents an asset deficit. This in turn defines the amount of money required to replace the asset. A municipality should have a financial plan for the replacement of all its assets, and the asset deficit defines how much is required at any point in time.

The Federal Infrastructure Asset Management Strategy provides further background on this issue.

A second way of looking at current value is in terms of its residual life. Many infrastructure assets can last well beyond their design life. Water mains are a good example here, as are structures such as reservoirs and culverts. From an engineering perspective it is important to know how long an asset is likely to last and under what circumstances. Conversely, an infrastructure asset can undergo accelerated loss in value. This can happen for a number of reasons. One example is in a water supply network, where a situation of unplanned, very high, population growth or per capita consumption can mean that an asset has to be replaced by a system with larger capacity before it reaches the end of its design life. A second example relates to the issue of what happens to an asset when maintenance is delayed or reduced. This is a particular problem with roads, where a lack of planned maintenance can lead to a rapid deterioration in the condition of the infrastructure, and a subsequent loss of value for the asset, i.e. accelerated depreciation. The issue described in this second example is particularly important as it leads to a condition where there is a seriously enhanced asset deficit. This means that the residual value of the asset is actually lower than its book value (based upon its depreciation). Such a deficit arises from either a lack of planned maintenance or poor infrastructure planning. Both can result in a significant loss to a local authority, since the infrastructure services comprise a significant proportion of their assets. The implications of such a loss could have a major impact on a Citys credit rating later, when the City wants to move into capital markets to raise investments for new infrastructure.

4.1: Building a list of Rates for new asset provision

The inventory developed provides a basis for calculating replacement cost for the asset base. And here the first step is to develop, within the local authority, a list of rates that reflect the cost of new work by measure (i.e. unit rates cost in Birr/m; Birr/m2etc). The following table provides a partial example of this, developed for the pilot project. The local authority would clearly need a much more comprehensive list, covering all sub-categories of assets, which will need to be updated annually.

Sub-Category Roads: Asphalt Road Gravel Road Red-Ash Road Earth Road Pedestrian Walkway (asphalt) Culvert Street signs

Unit of Measure m m2 m2 m2 m2
2

Rate

Sub-Category Sanitation: Latrines Suction Tanker Treatment Site Access Road

Unit of Measure each each each m2

Rate

360 120 40 4 200

35,000 1,500,000 600,000 120

Each Lump Sum

35,000 Solid Waste: 20,000 Containers

each each each m2

20,000 800,000 300,000 120

Grader Drains: Landfill Site Masonry drains l.m. 260 Access Road Earth drains l.m. 10 Engineering Equipment: Street lighting: Computers, etc: Street lights Each 1,000 Testing Equipment: Books and Manuals: Table 4.1: Example of a list of unit rates for selected sub-categories

Lump sum Lump sum Lump sum

50,000 100,000 10,000

This can be carried through to table 6.3 below, by the addition of total quantities of assets, to provide a replacement cost for all assets. By definition, this gives the full cost that would be required to replace the existing assets at current rates. This is one indicator of asset value.

4.2: Cost the total budgetary requirements for infrastructure rehabilitation

If regular maintenance is not carried out on the infrastructure, then more intensive repair work will be required. And in some cases, elements of the infrastructure may have deteriorated beyond the capacity of standard maintenance operations to restore it. In this case more intensive rehabilitation of the infrastructure will be required. Both major repairs and rehabilitation represent infrastructure costs, with budgetary implications, that fall between normal maintenance operations on the one hand, and complete replacement of the asset on the other. In other words, remedial action will be required to repair or rehabilitate parts of the network to bring it back to an acceptable standard. This will have a higher unit cost than maintenance but is not necessarily the same unit cost as new work. Both the major repairs and rehabilitation work represent costs that can be equated to a loss of value of an asset. And this loss is over and above the Asset Deficit based upon depreciation

(although major rehabilitation may reduce the asset deficit by providing some added value to the asset that prolongs it life). The Asset Management Plan therefore needs to identify, and take into account, the cost of both major repairs and rehabilitation work. This section covers the integration of a rehabilitation costing programme into the Asset Management Plan. Given that major rehabilitation work is also considered sometimes to be a capital expense (since it is clearly not a recurrent expense), it could equally be included with the calculations for new work. The main reason for including it at this stage, with the Asset deficit, is so that it is reflected in the analysis of asset cost and value, since it has a critical impact here. The infrastructure in need of rehabilitation is taken from the results of the condition assessment. The greatest impact is in the area of roads and drainage. The work to be rehabilitated is covered by the intermediate deterioration classification in table 4.2. The table below shows the rehabilitation cost requirements for the roads as a total backlog cost. Managing the budgeting of this cost is dealt with in later steps. Drainage works would be treated in the same way. Note that water supply has not been included here, as the situation is slightly different. With water supply there is less difference between major rehabilitation and new work and the two can be considered together for budgetary planning purposes. Condition indicator description Asphalt Roads Moderate Damage Extensive Damage Sub-Total Gravel Roads Moderate Damage Extensive Damage Sub-Total Red Ash Roads Moderate Damage Extensive Damage Sub-Total Earth Roads In Need of Re-grading In Need of Rehabilitation Sub-Total Unit Quantity Rate Cost (rounded to the nearest EB1,000) 2,243,000 819,000 3,062,000

m2 m2

24,920 2,730

90 300

m2 m2

37100 23940

40 80

1,484,000 1,915,000 3,399,000

m2 m2

nil nil

0 0

m2 m2

103,000 45,500

2 4

206,000 182,000 388,000

Total Rehabilitation Cost: Roads 6,849,000 Table 4.2: Estimation of major repair/rehabilitation costs of existing road network

4.3: Costing and valuing the infrastructure asset base

Bringing all of these information together results in table 4.3 below. Note that this example, like the other tables in this operational manual, is for illustration purposes only. Local Authorities should carry out their own calculations based upon the information (rates, quantities etc) applicable to their specific situation.

SubCategory

Replacement Cost

Residual Asset Value

Asset Deficit

Maintenance Deficit

Asphalt Road Gravel Roads Red ash Road Earth Road Pedestrian Walkway Culverts and pipes Major plant and equipment Masonry Drain Earth Drain Retention ponds

6,961,321 16,268,490 23,116,800 37,429,200 938,730 693,000 2,475,000 9,307,169 9,246,720 13,870,080 11,689,800 25,739,400 475,060 330,000 not known 500,000 3,000,000 3,606,008 131,935 216,000 2,500,000 1,171,594 2,434,414 112,783 216,000 not included not known 19152 0 1,172,000 19,000 Nil Nil 463,670 363,000 Nil 388,000 363,000 3,399,000 3,062,000

Residual Asset Value based on Actual Condition 3,899,000 5,848,000 11,690,000 76,000 0

0 0

Street light 471,380 Public Toilets 175,000 Communal not known Toilets 210,000 Suction 1,500,000 1,500,000 Tankers 1,500,000 0 0 Plant and 500,000 Vehicles 500,000 0 500,000 0 Table 4.3: Asset Replacement Cost, Residual Value, Asset Deficit and Maintenance Deficit (excluding Water Supply).A similar table 4.4 can be derived for the water supply network. This

table clearly illustrates the significant infrastructure deficit that has accumulated since the water infrastructure was first constructed. The residual value and asset deficit shown here were calculated from straight line depreciation, using life expectance figures modified from a chart produced by the Environmental Protection Agency of the United States. For information this table is attached here. Replacement cost Residual Asset Value Maintenance Deficit (EB) not available: review of condition required

Sub-category Distribution network

20,249,616 Distribution Old System Valves 2,024,962 Treatment systems n/a Chlorination system n/a Boreholes Pumps (with subtypes) Reservoirs 500,000 Yard connections Included with distribution 2,083,000 1,440,000

11,137,288

5,279,438

in need of replacement information not available information not available information not available rehabilitation required

1,113,729

n/a

n/a 0

1,005,000

in need of replacement not available: review of condition required Included with distribution

0 Included with distribution

Water Meters Mobile plant and machinery Vehicles Engineering

1,042,000 not available: review of condition required in need of replacement Support equipment

None 180,000 n/a

n/a 0 n/a

equipment Office 600,000 600,000

urgently required not available: review of condition required

Table 4.4: Asset Replacement Cost, Residual Value, Asset Deficit and Maintenance Deficit for Water Supply

4.4: Measure the Assets against Strategic Goals and Objectives

The completion of step 6 of the Asset Management Plan completes the first part of the planning process. At this point the local authority should have a detailed, and reasonably accurate, knowledge of what assets exists; what they are worth; the cost of meeting maintenance needs (addressing the maintenance backlog); and, where relevant, what rehabilitation costs are required to bring the assets back to a good working condition. This is the point at which to consider what new assets are required, and to begin to integrate the planning of the new assets with the existing asset base. Used in this way, Asset Management becomes an important planning tool, which can be used to link the infrastructure asset base to an integrated settlement/development planning process. To understand why this is such a valuable tool, it is useful to explore the current approach to five-year planning, which tends to build on needs analysis within a project framework. Such a project-based approach to capital investment planning tends to review projects in isolation, either from an urban planning perspective or from an economic perspective, depending on the nature of the investment. An example of the former would be a new neighborhood development, whilst an example of the latter would be a new asphalt road that required capital investment plan based on achieving a specific rate of return. The problem with both of these approaches is that neither integrates the project into the wider management framework. Asset Management Planning is therefore a strategic approach that provides this integration. The way in which this is done is described in the sections that follow. New infrastructure work can be divided into three types: (i) work that upgrades existing services: (ii) work that extends the infrastructure service network to new areas; and (iii) the construction of specific individual assets. In all three cases, the new assets need to be situated within a strategic plan; the role of the assets need to be measured against strategic needs and objectives; and the choice of assets need to incorporate their long-term operational and maintenance cost. If this is not done, there is a danger that the capital investment plan will simply become a wish list of needs that are either inappropriate or cannot be sustained. Such a review (of assets against strategic goals and objectives) should be undertaken annually across all infrastructure services. This is one reason why a rolling three-year investment planning process is actually more effective that a five-year plan. A rolling program is much easier to integrate with an Asset

Management Plan and provides greater inter-operability between the two, thereby ensuring better strategic planning and more effective management. 4.4.1 New Work: Upgrading the existing asset base The provision of new assets through an upgrading process is generally carried out to improve user convenience or operational efficiency. In both cases this implies the replacement of a specific infrastructure service by a new one that has a higher operational cost and, very often a greater degree of technical complexity. Examples of upgrading include the replacement of a road by one that is either wider or of a higher standard of surface finish and/or load bearing capacity; upgrading an earth drain to masonry/concrete channel or pipe; changing an on-site sanitation system to a water-borne system. Using the drawing as a base, the section of work to be upgraded should be highlighted on the infrastructure map. In addition to the capital cost, the additional operational and maintenance costs should be calculated (in terms of both recurrent expenditure and operational staff). The decision to add an upgrading project to the three-year rolling program for capital expenditure should include a description of the impact of the new work on the recurrent budget and the Asset Management Plan.

4.4.2 New Work: Extending infrastructure services into new areas

New work of this type is generally driven by urban growth, which requires new development. All new work of this type should be reviewed against the Federal Integrated Urban Infrastructure Policy objectives. New work of this type provides an opportunity to review planning and design standards for infrastructure delivery. This means reviewing the movement network policy; the sustainability of the urban drainage plans; and the degree to which water supply, sanitation and hygiene address the needs of, and operate within the affordability of, the poor sectors of the population. This is also the point at which reviews should be held jointly with the health sector professionals to review the integrated performance of water, sanitation and hygiene. At the same time all plans for new area development should also include a section on the operation and maintenance costs, and ensure that this work is included in the plans for recurrent expenditure.

4.4.3 New Work: Construction new individual assets

The term individual asset is used here to describe a single item of urban infrastructure that has a significant cost attached. Typical examples would be landfill sites, road bypasses, water treatment facilities or wastewater treatment plants. They may be associated with either upgrading or new area development. The difference is that, whereas the two previous categories of new works generally increase existing operational cost and manpower needs incrementally, this category of new works adds a completely new cost to the recurrent expenditure budget as well as requiring additional staff allocated specifically to its operation and management. The impact of both of these can be significant. Planning for capital expenditure on new works will, generally, imply a significant step change in both costs and manpower requirements, and will often require changes to the management structure of the local authority to accommodate the work. It is critical therefore that all of these impacts (recurrent cost, manpower/staffing increases, and organizational changes) are included in the plan for the new works together with the capital cost.

CHAPTER FIVE
5: Develop Plans for New Assets
The previous chapter looked at the new assets individually, linking these to the strategic plan and defining the operational and maintenance requirements on an individual basis. The first attempt at developing the plan for new works is likely to result in a high budget that will require both prioritizing and pruning. This is dealt with in section 5.2.Section 5 provides the intermediate step between these two. Here all the proposals for new infrastructure assets are assembled and viewed collectively. 5.1: Assemble the proposals for new works This process of assembling new asset proposals is best looked at using a case study example. This case study is a town that has, to date, focused primarily on building its main road network and primary drainage routes. As a result, secondary drainage is weak and there is limited sanitation and solid waste. The water supply has good coverage but the system is in poor condition. The review of infrastructure needs was wide ranging, with a high level of community feedback. Hence the proposals reflect the needs of community groups, politicians and technical staff. As might be expected in this situation this first attempt to assemble a list of new infrastructure requirements has some elements of a "shopping list" of needs. This is not necessarily a fault. It is important at an early stage to identify all areas of need, even though not all of them will be affordable. The table that follows shows the results of this process. This table has followed the proposal in section 4.4, of dividing new work into three separate parts: upgrading of existing areas; development of new areas; and new (individual) infrastructure assets. In this particular example, the first of these represents the greatest cost. In other cases, however, new area development or major individual assets may be more important. To these three components of New Work, there is then an additional component, reflecting the capital cost required for major repairs and rehabilitation work. In building this table of Capital Investment requirements, is important to be clear about the distinction between Rehabilitation (discussed in section 4) and Upgrading. Rehabilitation means major renovation or replacement of existing assets, where the condition of the assets is beyond the capacity of regular maintenance activities to repair. Here the asset sub-category remains the same, e.g. rehabilitating a gravel road results in a refurbished gravel road with a specification similar to the existing one. Upgrading, on the other hand, means replacing an asset by another asset in a different type (sub-category), or adding a new asset in an existing area, generally to improve the Quality of Life or economic development. An example of an improvement to Quality of Life would be installing communal toilets, or road drainage, where none existed previously. An example of economic development could be widening and replacing a gravel road by an asphalt road.

Both upgrading and rehabilitation, then, are covered in this budget. The figures for rehabilitation (and major repair) work may not correspond exactly to those developed in section 3.3, since some of the upgrading work could be taking place instead of rehabilitation, in which case the rehabilitation would no longer be necessary.

Sub-Category 1. Upgrading of existing areas Asphalt Road (upgraded from Gravel) Red-Ash Road (upgraded from Earth) Earth Road Pedestrian Walkway Culvert Street signs Masonry drains (upgraded from Earth) Earth drains Public Latrines Suction Tanker Street lights Containers Sub-Total 2. New area development Red-Ash Road Earth Road Pedestrian Walkway Culvert Masonry drains Earth drains Street lights Public Latrines Containers Sub-Total 3. Individual Assets Treatment Site for liquid waste Access Road Landfill Site for solid waste Access Road Engineering Equipment to support the Asset Management Plan Computers, etc: Testing Equipment: Books and Manuals: Sub-Total 4. Rehabilitation and major repairs

Unit of Measure m2 m2 m2 m2 No. lump Sum linear m. linear m. No. No. No. No.

Quantity

Unit Rate 357 40 3 210 35,000 20,000 266 10 50 1 1,000 40

Cost (Birr)

14,000 42,000 70,000 4,000 20 1 4,000 10,000 35,000 1,500,000 624 20,000

4,998,000 1,680,000 210,000 84,000 700,000 20,000 1,064,000 100,000 1,750,000 1,500,000 624,000 800,000 13,530,000

m2 m2 m2 no. linear m. linear m. no. no. no.

28,000 70,000 4,000 12 500 60,000 300 35,000 20,000

40 3 210 35,000 266 10 1,000 20 20

112,000 210,000 840,000 420,000 1,330,000 600,000 300,000 700,000 400,000 4,912,000

no. M2 no. m2

300,000 40 200,000 40,000

1 10,000 1 40

300,000 400,000 200,000 1,600,000

lump sum lump sum lump sum

100,000 100,000 20,000

100,000 100,000 20,000 1,880,000

Asphalt Roads: Moderate Damage Asphalt Roads: Extensive Damage Gravel Roads: Moderate Damage Gravel Roads: Extensive Damage Earth Roads: In Need of Re-grading Earth Roads: In Need of Rehabilitation Sub-Total

m2 m2 m2 m2 m2 m2

24,920 2,730 37100 9940 103,000 3,500

90 300 40 80 2 4

2,243,000 819,000 1,484,000 795,000 206,000 14,000 5,561,000

Grand Total (1 + 2 + 3 + 4) 25,883,000 Table 5.1: Cost of new works proposals for infrastructure (excluding water supply) Setting out the capital spending proposals in this way is particularly useful in demonstrating the importance of linking capital planning to goals and objectives. It also helps to provide context to the spending plan. So, for example, if sanitation has been given a high priority in the strategic plan for the City, then should be analyzed in the context of a strategic planning approach. Important questions in this regard might be: to what extent public toilets, which represent 12% of the budget, can be replaced by communal toilets paid for by the community, or alternatively financed under a separate budget that is based upon cost recovery and loan repayment?4 In a second sub-category, that of asphalt roads, the capital expenditure plan indicates that this item constitutes 20% of the total budget (and almost 30% if rehabilitation and major repairs to asphalt roads are included). To which must still be added the high subsequent cost of operation and maintenance of these roads, which is also an important factor. This indicates that a much more comprehensive capital investment planning process is required to justify this level of expenditure. As a final example, this budget in table 5.1 has an item for equipment to support engineers managing the asset management plan. Currently the infrastructure departments are poorly equipped. However, this budget indicates that these departments can be well equipped for a cost equivalent to approximately 1% of the capital investment proposal. As a once-off cost that improves the effectiveness of managing assets worth tens of millions, this can be seen as an investment with a very high rate of return. The spending program described here is hypothetical and used for illustrative purposes. However, as mentioned earlier, it was based upon a real budget and can be seen as typical of the budgets obtained in a number of pilot studies where the Asset Management Approach was tested. The process that led to these pilot spending proposals was consultative, and included a high level of community participation. However, they took place in an environment where there was no significant strategic planning or broader strategic goals and objectives for the infrastructure. Setting out the proposals for spending in the way shown here, the City can begin to identify
4

This use of public and communal toilets is for illustrative purposes only and does not imply a recommendation for sanitation. Each City will develop its own strategic plan for sanitation based upon its specific needs and circumstances.

items that are difficult to justify in economic terms, or that can possibly be either provided, or funded, by alternative means. This is a valuable first step in moving towards a strategic, wellplanned, capital expenditure plan and beginning a process of prioritization. This process is continued in section 5.2, when the capital investment proposals are combined with the operation and maintenance implications of the new work added to current commitments to operation and maintenance. In respect of water supply, which is treated separately here, a similar approach is required. This is simpler than the other infrastructure services, since it can be developed within a framework of cost recovery, based upon income generation from tariff charges. Even so the proposal shares a similar problem with other services, in that the proposal has been prepared without a strategic plan, and without any strategic goals and objectives to guide the planning and budget process. Sub-Category Unit of Measure No. No. Quantity Rate Cost (EB) 480,000 540,000 540,000 2,083,000 100,000 5,280,000* 450,000 180,000 100,000 25,000 400,000 5,000 150,000

Boreholes 2 240,000 Borehole 6 90,000 pumps Operational No. 6 90,000 pumps Water meters No. 10,415 200 Valves Lump sum 1 100,000 Old system Lump sum 1 5,279,438 replacement Isuzu 10t truck No. 1 450,000 Nissan one cab No. 1 180,000 Office fittings Lump sum 1 100,000 Pump tripod No. 1 25,000 Backhoe No. 1 400,000 Tools Lump sum 1 5,000 Leakage Lump sum 1 150,000 detection equipment Total Table 5.2: Cost of new works proposals in water supply (example)

10,333,000

The development, and funding, of new works for water supply may follow a path that differs from the one shown here, depending upon its management structure and funding routes. For example, Water Enterprises accessing funding directly from the Water Resources Development Fund will follow a specific approach linked directly to that funding source. 5.2: Construct the Budget for the Asset Management Plan Section 3.3 of chapter three built the maintenance budget (and the rehabilitation budget where applicable), while section 5 of this chapter looked at the initial proposals for new works. This

section brings all the budgetary information together. In addition, this step also looks at the future maintenance implications of new capital investments. The result should be a final budgetary requirement for both capital and recurrent spending on physical infrastructure. Looking first at the capital spending requirement developed earlier, this should have already been checked against the strategic planning goals and objectives. What is brought forward may, or may not have been revised, depending upon the extent to which the planning program is in line with strategic goals and objectives. This revised budget is then brought forward into section 5.2, where four actions are carried out: Action 1: Calculate the ongoing maintenance costs of New Work; Action 2: Identify different potential funding/management options for the New Works; Action 3: Review the New Works once more in the light of Actions 1 and 2, and prioritise the New Works. Action 4: Finalize the maintenance budget for existing work.

5.2.1: Calculate the on-going maintenance costs of New Works

The first year of operation of New Infrastructure Works will have a negligible impact on the maintenance budget. However, thereafter the cost will increase over 2-4 years (depending upon the nature of the infrastructure, until it reaches the current rates of maintenance work. The figures used for maintenance can be taken from existing figures based upon experience. If these do not exist however (as in year 1 of the AMP for example), then an estimate can be used. Typical figures could be 0 in year 1; 1% of initial capital cost in year 2; 1.5% in year 3; and 2% in year 4. It is important to note that these costs will vary among different assets; this is one reason why it is preferable to use cost estimates based on experience. Some assets, such as pit latrines or solid waste containers, will have a lower maintenance cost, whilst others, such as mobile plant and vehicles, may have a higher cost. Note also that these percentage figures are for maintenance only; they do not include for replacing the cost of the assets. Finally, the costs for assets such as landfill sites or tankers will need to take into account the additional staffing requirements necessary to operate them. Assuming that the entire budget proposal has been brought through the review process, the cost of maintenance would be as shown in table 5.3 below. Note that, for upgrading work, the maintenance cost of the infrastructure being replaced should be deleted from the maintenance budget, and replaced with the figures calculated here for. This is done in section 5.2.4.

Sub-Category 1. Upgrading of existing areas Asphalt Road (upgraded from RedAsh) Red-Ash Road (upgraded from Earth) Earth Road Pedestrian Walkway Culvert Street signs Masonry drains (upgraded from Earth) Earth drains Public Latrines Suction Tanker Street lights Containers Sub-Total 2.New area development Red-Ash Road Earth Road Pedestrian Walkway Culvert Masonry drains Earth drains Street lights Public Latrines Containers Sub-Total 3. Individual Assets Treatment Site for liquid waste Access Road Landfill Site for solid waste Access Road Engineering Equipment to support the Asset Management Plan Computers, etc: Testing Equipment: Books and Manuals: Sub-Total Grand Total (1 + 2 + 3)

Cost (Birr)

Maint. Year 2 50,000 17,000 4,000 1,000 7,000 0 10,000 1,000 20,000 10,000 6,000 4,000 130,000

Maint. Year 3 75.000 25,000 6,000 2,000 10,000 15,000 2,000 30,000 20,000 9,000 6,000 194,000

Maint. Year 4 100,000 34,000 8,000 2,000 14,000 1,000 20,000 2,000 40,000 30,000 12,000 8,000 271,000

4,998,000 1,680,000 210,000 84,000 700,000 20,000 1,064,000 100,000 1,750,000 1,500,000 624,000 800,000 13,530,000

112,000 210,000 840,000 420,000 1,330,000 600,000 300,000 700,000 400,000 4,912,000

1,000 2,000 8,000 4,000 13,000 6,000 3,000 4,000 2,000 43,000

1,000 3,000 12,000 6,000 19,000 9,000 4,000 6,000 3,000 63,000

2,000 4,000 16,000 8,000 26,000 12,000 6,000 8,000 4,000 86,000

300,000 400,000 200,000 1,600,000

3,000 4,000 2,000 16,000

4,000 6,000 3,000 24,000

6,000 8,000 4,000 32,000

100,000 100,000 20,000 1,880,000 20,322,000

2,000 2,000 29,000 207,000

3,000 3,000 43,000 300,000

4,000 4,000 58,000 415,000

Table 5.3: Maintenance cost implications of new works to year 4 (based on % of New Work cost) A calculation such as the one shown above highlights the long-term implications for the recurrent expenditure budget of capital investment. Overall the long-term maintenance cost is EB423,000 per year. Taking the existing (illustrative) maintenance cost from section 3.3, this represents an increase of over 50% in the existing recurrent maintenance budget. And in addition there will be further costs of increased staff, both in the management of the asset base and in the operation of the major individual assets. There are two ways to deal with this, and both are required. The first is to plan for increased expenditure. This additional capital expenditure will require a rate of increase in the overall maintenance budget amounting to 7% per year at current prices (i.e. excluding inflation). This can only be achieved if the investment in new infrastructure is linked to a capital enhancement plan that enables a long-term increase to be sustained. The second approach is to review the capital investment plan again, in the light of these figures, and either remove items; carry out a more in-depth capital investment planning analysis; delay their implementation; or move them off-line (in respect of the budget). As an example of the first two (removing items or implementing a more in-depth capital investment planning analysis) the item of upgrading existing roads to asphalt provides a useful example. Not only does this item represent 20% of the capital budget, it also represents almost 25% of the additional recurrent budget. Clearly this item has the most significant impact on the budget. Hence there is a need to carry out a more in-depth review that can either justify this expenditure in a benefit-cost analysis or result in its removal from the budget altogether. Te other issues (of delaying implementation or moving items off-line) are discussed further below. 5.2.2: Identify different potential funding/management options for the New Works This section of reviews the different line item in the capital expenditure budget and asks the question Should this item be part of the general municipal budget or can it be funded elsewhere? Some items, particularly in the movement network, are clearly the direct responsibility of the local authority. However, there are others that can reflect services that can be managed by others or that can be financed within a cost recovery framework. Each local authority should review each of its proposed new assets in this way. Some examples are provided below that provide an example of how such a review might work. (i) Asphalt roads Remove the asphalt road upgrading proposal from the list and submit it to a full economic costbenefit analysis. Apply to the Road Fund for the budget to rehabilitate the existing asphalt roads. After a review of the costs, a decision is taken to remove asphalt roads from the mainstream funding proposal. Total cost EB7.2M

(ii) Public/communal toilets, liquid waste and solid waste This item is prioritized (for the purposes of this example. All items related to sanitation are taken together. Toilet blocks accessible to public use can either be public (i.e. open to everyone) or communal (i.e. reserved for the use of residents of an identifiable community. This review can re-evaluate which toilets fall into which category. Those in the category of public toilet could be funded under a separate budget, which incorporates a cost recovery element and also covers the cost of operation. Those in the category of communal toilets could be financed by the community, with possible support (in terms of loans or grants) from a branch of government. Once this issue is resolved, sanitation should be submitted for funding from one donor, with a motivation based upon a clear sanitation strategy. Total cost EB3.4M. (iii) Trucks for liquid waste This review could explore the possibility of an individual or a small enterprise operating this truck. The financing would be private, but could be linked to a contract with the local authority for a fixed term (e.g. 2-3 years) that would provide an income stream for the individual or small enterprise to raise capital. Total cost: EB1.5M (iv) Solid waste management Although this is a key item, there are still strategic issues unresolved related to collection and recycling. Delay this budget decision until the strategic issues have been resolved. Total cost EB3.0M. (v) Engineering equipment to support the Asset Management Plan Invest in year 1. Total cost EB0.2M (vi) Movement networks and Urban Drainage The feedback loop that looks at new work in the proposal in the context of the strategic planning goals and objective should have covered the need for masonry drains and the width of existing roads (both of which could reduce costs). The cost of culverts could also be reduced. Assuming these costs stay unchanged however, the total cost of movement network and drainage works is approximately EB10.5M. Reduce this further by spreading the cost of culvert and masonry drain construction over five years. 5.2.3: Review the New Works once more, and prioritise capital spending The reviews carried out in sections 5.2.1 and 5.2.2 above have the potential to impact on over 60% of the capital budget. In addition, the outcome of this review is that the road, path and drainage network will be prioritized under one budget, with the sanitation project the highest priority but funded separately.

Moving down to a level of detail within this outcome, the prioritizing exercise reverts to the system of managing the capital budget by parts, as described in section 5.1. The objective of this exercise is to develop a regular spending program that can be better managed by the City. Thus upgrading work should be prioritized in conjunction with the maintenance plan, or to most effectively address the maintenance deficit. This means that the condition of existing assets should be a factor in determining priorities. New Area development should be linked to the housing development that it accompanies, which might itself be spread over more than one year. And new individual assets should be spread over a period of time to equalize cash flow. 5.2.4: Bring forward the maintenance budget The final work in is to update the maintenance budget to reflect changes in the infrastructure asset base. This affects existing infrastructure, so the budget at this stage will be varied either by assets being taken out of service or by assets being upgraded. Because the upgrading from gravel to asphalt is being re-appraised, this does not affect quantities at present. So the only upgrading is that from earth to Red Ash. This accounts for approximately 50% of the earth roads in need of maintenance. Hence this figure (i.e. earth road maintenance) can be halved. One thing that should have emerged in this review is the high cost of gravel maintenance compared to Red Ash. Hence both the maintenance and rehabilitation programs could look at slowly replacing gravel by Red Ash. This would result in a saving on the maintenance budget that could be as high as, without any loss of quality. 5.3: Develop the Implementation Strategy for the Asset Management Plan The implementation strategy comprises the final step in the development of an Asset Management Plan, and consists of four parts: Action 1: Finalizing the budget and operational plan. Action 2: Develop the maintenance plan. Action 3: Ensure there is an adequate allocation of staff and resources to support the operational and maintenance plans. Action 4: Initiate (in year 1) or review and update (in subsequent years) the project management function.

5.3.1: Finalise the budget and operational plan In this step the expenditure plan should be clearly defined spending program. An example is provided below. In practice costs that are divided equally over three years would vary slightly, as the quantities would be drawn from the map showing the condition of the roads.

Sub-Category

Unit of Measure

Quantity

Unit Rate

Cost (Birr)

Sanitation 1. Upgrading of existing areas Public Latrines 350,000 350,000 Communal Latrines 1,400,000 700,000 350,000 2. New area development Public Latrines 175,000 175,000 Communal Latrines 525,000 350,000 3. Individual Assets Treatment Site for liquid waste 300,000 Access Road 400,000 200,000 Total 3,100,000 1,050,000 1,075,000 Table 5.4: Rolling three year program for Sanitation Sub-Category Cost (Birr) Year 1 Year 2

350,000

175,000 300,000 200,000 975,000 Year 3

1. Upgrading of existing areas Red-Ash Road (upgraded from 1,680,000 560,000 560,000 Earth) Earth Road 210,000 210,000 Pedestrian Walkway 84,000 84,000 Culvert 700,000 140,000 140,000 Street signs 20,000 Masonry drains (upgraded from 1,064,000 212,000 212,000 Earth) Earth drains 100,000 100,000 Street lights 624,000 150,000 150,000 Total 3,774,000 1,272,000 1,246,000 Table 5.5: Rolling three year program for Upgrading Existing Areas Sub-Category Cost (Birr) Year 1 Year 2

560,000

140,000 20,000 212,000

324,000 1,256,000 Year 3

2.New area development Red-Ash Road 112,000 Earth Road 210,000 Pedestrian Walkway 840,000 Culvert 420,000 Masonry drains 1,330,000 Earth drains 600,000 Street lights 300,000 Total 3,812,000 1,300,000 1,300,000 Table 5.6: Rolling three year program for New Area Development

1,218,000

Sub-Category

Cost (Birr)

Year 1

Year 2

Year 3

3. Individual Assets Engineering Equipment to support the Asset Management Plan Computers, etc: 100,000 100,000 Testing Equipment: 100,000 100,000 Books and Manuals: 20,000 20,000 Total 220,000 220,000 Table 5.7: Rolling three year program for Individual Assets Sub-Category Cost (Birr) Year 1 Year 2

0 Year 3

4. Rehabilitation and major repairs Gravel Roads: Moderate Damage 1,484,000 500,000 500,000 Gravel Roads: Extensive Damage 795,000 265,000 265,000 Earth Roads: In Need of Re-grading 206,000 65,000 70,000 Earth Roads: In Need of Rehabilitation 14,000 14,000 0 Total 5,561,000 844,000 835,000 Table 5.8: Rolling three year program for Rehabilitation and Major Repairs

484,000 265,000 71,000 0 820,000

This budgeting process highlights very clearly the distinction between the three-year rolling programming and the five-year planning approaches to capital investment. The latter is project driven but takes place outside of the wider management context. The three-year rolling program, on the other hand, is situated in the context of both Asset Management Planning and wider infrastructure management planning. The table shown above provides a clear management framework, which is then carried forward into the sections that follow. 5.3.2: Develop the maintenance plan The maintenance plan has two parts, relating respectively to costs and activities. In the first year the cost estimate comes first. In subsequent years, however, when there is a clearer understanding of what individual activities cost, then the activities will be defined first and the cost will follow. The cost of eliminating the maintenance backlog of the non-water supply infrastructure came to just over EB1M. The second and subsequent years would not require as much maintenance spending. And once the maintenance backlog has been eliminated, and then the actual maintenance needs with respect to the budget for existing works. In both cases (i.e. first and subsequent years) there will also be additional maintenance arising from the new, upgraded, and rehabilitated works. This section of the Asset Management Plan should convert the budget into a three year rolling program of expenditure.

A good first approximation of the maintenance spending in year 1 is then modified as described in section 5.2.4. To this will be added ongoing maintenance of the system, as well as the maintenance that will arise from the new work, though this last item will only begin (in the first AMP) in year 2. Overall, a reasonable approach would be to spread the maintenance backlog over 2-3 years, with additional expenditure being provided for years 2 and onwards, to account for ongoing maintenance. It is important at this point to remember that the Asset Management planning exercise is carried out annually, and in the second year there will be significantly more information available on which to base costing data. Sub-Category Cost (EB) Backlog from Table 5.7 Year 1 Year 2, incl Gravel to Red Ash Year 3, incl Gravel to Red Ash 85,000 nil 90,000 13,000 5,000 13,000

Roads: Asphalt Roads 150,000 75,000 80,000 Gravel Roads 338,000 nil nil Red-Ash Roads 80,000 80,000 85,000 Earth Roads 57,000 12,000 12,000 Pedestrian Sidewalks 10,000 5,000 5,000 Culverts 25,000 12,000 12,500 Street Signs 0 Vehicles 0 Major Plant and 10,000 11,000 Equipment 20,000 Engineering Equipment 0 Sub-Total 680,000 194,000 205,000 Drains: Masonry drains 24000 12,000 12,000 Earth drains 16000 8,000 8,000 Retention ponds 3000 1,000 1,000 Sub-Total 43,000 21,000 21,000 Street lighting: 17,000 8,000 8,000 Sanitation:** 30,000 15,000 15,000 Solid waste:** 30,000 15,000 15,000 Total Maintenance Cost: 800,000 253,000 264,000 Table 5.9: Rolling three year program for maintenance (excl. water supply)

12,000 218,000 12,000 8,000 1,000 21,000 8,000 15,000 15,000 277,000

Each of these costs should be allocated to maintenance tasks. And the maintenance should be highlighted on the drawing and included in the attribute data records for the different subcategories. This will result, each year, in a clear mapping of the infrastructure that has been maintained.

5.3.3: Allocation of staff and resources Once new and ongoing work is defined, then it also becomes possible to define the tasks required (in human terms) to achieve these outputs. Beginning with maintenance, it is possible to calculate how many engineers are required to plan for and oversee this maintenance. There is also the work involved in producing and maintaining the Asset Management Plan. And then there is the Rehabilitation, Upgrading and New Work. A list of tasks can be developed and estimates made of the number of person-days of work involved. For the capital works it is clear that much of the design, and perhaps even construction supervision work, will need to be carried out by Consultants. Overall there will need to be an ongoing assessment of the work balance between City and Consultancy staff. 5.3.4: Project planning and project management The fourth element of the implementation strategy is the use of the Asset Management Plan to support project planning and project management once the capital investment program is defined. If the capital planning is developed, then it becomes a simple matter to convert the work into specific projects.