Department of Water Affairs

1. Department of Water Affairs Department of Water Affairs and Forestry and Forestry Enterprise Wide Asset Management System (EWAMS) Verification and Valuation of Major Water Infrastructure Assets Project Overview (based on draft Inception Plan)

2. Object of Presentation Overview of current understanding of: • project drivers • scope • approach • deliverables • organisational context • key risks and opportunities • progress to date

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

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

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

6. PHASE 3 OPERATIONS & TRANSFER PHASE 1 INITIATION PHASE 2 IMPLEMENTATION PHASE 4 CLOSE-OUT • Raise awareness of IAM • Project Definition & PEP • Project Communications Plan • Project Management Plan • Project “Blue-print” • IAM Practice Improvement Plan • IAM Policy and Procedures • AMIS solution • Valuation Methodology • Water Pricing Strategy inputs • Collect, capture and validate data • Tech & Fin Reports • IAM Plans • H R Plan • Raise general awareness with staff • Targeted skills training • Transfer the Asset Register • Re-assess IAM Practices Improvement Plan for 2008/9 • Document the project history and lessons learnt • Deliver integrated project deliverables PROJECT MANAGEMENT AND COMMUNICATIONS Overview of the Approach

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

8. Work-streams

9. Spatial Overview : 4 clusters

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

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

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

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

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

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