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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 2 Object of Presentation Overview of current understanding of: project drivers scope approach deliverables organisational context key risks and opportunities progress to date

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Overview of the Approach 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 PHASE 1 INITIATION PHASE 2 IMPLEMENTATION PHASE 3 OPERATIONS & TRANSFER PHASE 4 CLOSE-OUT PROJECT MANAGEMENT AND COMMUNICATIONS

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Work-streams

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Spatial Overview : 4 clusters

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Project Opportunities Document existing practice and secure institutional memory Establish a benchmark for good Infrastructure Asset Management practice for SA (as sector leader)

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry …..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

Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry Department of Water Affairs and Forestry 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