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Strategic Asset Management of Water Supply and Wastewater Infrastructures

Strategic Asset Management of Water Supply and Wastewater Infrastructures

Helena Alegre | Maria do Ceu Almeida

(2009)

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Book Details

Abstract

Water and Wastewater companies operating all around the world have faced rising asset management and replacement costs, often to levels that are financially unsustainable. 
Management of investment needs, while meeting regulatory and other goals, has required:

  • A better understanding of what customers demand from the services they pay for, and the extent to which they are willing to pay for improvements or be compensated for a reduction in performance 
  • Development of models to predict asset failure and to identify and concentrate investment on critical assets Improved management systems 
  • Improved accounting for costs and benefits and their incorporation within an appropriate cost-benefit framework 
  • Incorporation of risk management techniques 
  • Utilisation of advanced maintenance techniques including new rehabilitation failure detection technologies
  • Enhancements in pipeline materials, technologies and laying techniques. 
These papers developed from LESAM 2007 for inclusion in Strategic Asset Management of Water Supply and Wastewater Infrastructures are focused on the techniques, technologies and management approaches aiming at optimising the investment in infrastructure while achieving demanded customer service standards, and they provide an opportunity to gain access to the latest discussion and developments at the leading-edge in this field. This book will be essential reading for utility operators and managers, regulators and consultants.

Table of Contents

Section Title Page Action Price
Half title page 1
Title page 3
Copyright page 4
Contents 5
Foreword 9
Conference Organisation 11
CHAPTER 1: INTRODUCTION 13
Introduction: International collaboration a linchpin in sustainable practices 15
OBSERVATIONS 16
FUTURE CHALLENGES AND OPPORTUNITIES 17
A COLLABORATION THAT ENGAGES BOTH SERVICE PROVIDERS AND ENVIRONMENTAL REGULATORS 20
FOUR OBJECTIVES FOR A FIVE YEAR PERIOD 21
CHAPTER 2: GLOBAL APPROACHES TO ASSET MANAGEMENT 23
Report: Global developments of strategic asset management 25
INTRODUCTION 25
THE WORLD OF ASSET MANAGEMENT 27
ASSET MANAGEMENT AROUND THE WATER WORLD 30
CHALLENGES AND FUTURE NEEDS 32
Global cooperation on Strategic Asset Management 33
CONCLUDING REMARKS 35
REFERENCES 39
Developing a sustainability management plan for water supply within Sarawak, Malaysia 43
INTRODUCTION 44
WHAT IS TOTAL MANAGEMENT PLANNING? 46
TOTAL MANAGEMENT PLANNING – THE CONCEPT 47
WHAT DOES A TMP LOOK LIKE? 48
KEY RESULT AREAS 49
TOTAL MANAGEMENT PLANNING GUIDELINES ARE AVAILABLE 51
BENEFITS 52
CONCLUSIONS 53
TVW infrastructure investment planning process – use of forecasting and uncertainty modelling tools 55
INTRODUCTION 55
METHOD 57
Three Valleys approach at PR04 57
Burst model 58
Risk analysis 58
Whole-life investment model 59
Uncertainty modelling 59
Areas of uncertainty 61
Uncertainty modelling associated with the Burst Model 61
Uncertainty modelling and option optimisation associated with the investment model 62
RESULTS 64
Company wide analysis 64
Case study Harrow: 67
CONCLUSION 70
REFERENCES 70
A novel methodology to prioritize investment proposals 71
INTRODUCTION 71
MODEL DEVELOPMENT 73
General requirements and principles of the conceptual model 73
Assessment criteria considered in the investment analysis 74
Cost assessment formulation 74
Modified Net Present Value (MNPV) method 74
Annual costs’ formulation 75
Underlying assumptions of the operational model 76
Description of the operational model 77
CASE STUDIES AND RESULTS’ DISCUSSION 78
Main points of view 78
Case study description 79
Treatment facility 79
Pumping station 80
Mains and service connections 80
Case study comparison 80
Summary of results 80
Criteria for the selection of the analysis period 81
Result sensitivity to subjective input data 82
Relationship between direct and indirect costs 82
Data availability constraints 83
Comparison of relative and absolute benefits 84
INVESTMENT PRIORITIZATION ALTERNATIVES 84
Case studies 84
Prioritization by absolute benefit 86
Prioritization by relative benefit with class stratification 86
Prioritization by relative benefit without class stratification 89
CONCLUSIONS 89
FINAL REMARKS 89
Summary and conclusions 89
Discussion and recommendations for further developments 91
ACKNOWLEDGMENTS 92
REFERENCES 92
CHAPTER 3: INSTITUTIONAL, ORGANISATIONAL AND RESEARCH ASPECTS 95
Report 1: A global vision for driving infrastructure asset management improvement 97
PREAMBLE 97
AT THE STRATEGIC LEVEL 98
ASSET MANAGEMENT, A STEPPING STONE TO ESTABLISHING SUSTAINABLE SYSTEMS 100
IS THE PRACTICE OF ASSET MANAGEMENT BETTER ADVANCED THROUGH A REGULATORY STRUCTURE 102
WILL SHORT TERM DECISION REQUIREMENTS ALWAYS TRUMP LONG TERM OPTIMAL CHOICES? 103
DO SUSTAINABLY FOCUSED ORGANIZATIONS HAVE COMMON CHARACTERISTICS? 104
THREE IDEAS TO BUILD THE KNOWLEDGE BASE:THE EVOLUTION OF EXCELLENCE CENTERS; AN INTERNATIONAL STANDARD AND STEPPED-UP GLOBAL COLLABORATION AND EXCHANGE 105
Assigning a focal point for leadership in advancing sustainable water infrastructure (excellent centers or similar strategies) 106
An international standard for sustainable infrastructure 106
Stepped-up global collaboration on knowledge exchange and training 107
BIBLIOGRAPHY 107
Report 2: Institutional, organisational and research aspects: Asset management system, the corner stone of managing an asset rich industry 109
INTRODUCTION 109
STATE OF THE ART ASSET MANAGEMENT 110
ASSET MANAGEMENT SYSTEM 111
MELBOURNE WATER’S ASSET MANAGEMENT SYSTEM 112
Melbourne Water’s 7 elements of asset management 114
Asset Management Policy 114
Asset Management Strategic Framework 114
Asset Management Guidelines 114
Strategic Asset Management Plans 114
Asset Management Processes and Procedures 114
Asset Management Instructions and Forms 114
BENCHMARKING VS AUDITING 115
Melbourne Water 2004 benchmark results 115
ASSET MANAGEMENT SYSTEMS SUPPORTING REGULATORY REQUIREMENTS 116
SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS 116
FINAL REMARK 118
REFERENCES 118
Asset management and regulation: The Portuguese case 121
THE PORTUGUESE WATER SECTOR 122
THE PORTUGUESE INSTITUTE FOR THE REGULATION OF WATER AND WASTE SERVICES – IRAR 123
Structural regulation of the sector 123
Regulation of the operators’ behaviour 124
ASSET MANAGEMENT IN THE WATER SECTOR 125
REGULATION AND ASSET MANAGEMENT 127
CONCLUSION 132
REFERENCES 133
ISO24500 standards as a support tool to manage assets 135
INTRODUCTION 135
THE ISO24500 SERIES OF STANDARDS 136
CONTENTS OF THE STANDARDS 137
THE STANDARDS AS A SUPPORT TOOL FOR ASSET MANAGEMENT 139
SETTING THE GOALS: THE SERVICE LEVELS 141
MEASURING THE RESULTS: PERFORMANCE INDICATORS SYSTEMS 142
Objective (user expectation) 143
Guidance 143
Assessment criteria 144
CONCLUSIONS 144
REFERENCES 144
Ownership and management of water utility assets in developing countries: The case of Kenya 147
INTRODUCTION 147
WATER SECTOR INSTITUTIONAL FRAMEWORK IN KENYA 149
Water sector reform 149
INSTITUTIONAL GUIDANCE RELATED TO ASSET OWNERSHIP, MANAGEMENT AND INVESTMENT PLANNING 153
Legislation and strategies 153
The Water Act of 2002 153
The Water (Plan of Transfer of Water Services) Rules, 2005 154
Sector Wide Approach to Planning 155
National Water Services Strategy 2007–2015 155
Draft Model Service Provision Agreements 156
DISCUSSION AND CONCLUSIONS 156
NOTE 158
REFERENCES 158
CHAPTER 4: TARGET DEFINITION AND ASSESSMENT OF PERFORMANCE 161
Report: Target definition and assessment of performance in water services 163
INTRODUCTION 163
THE NEED FOR STRATEGIC ASSET MANAGEMENT 164
THE NEED FOR A PERFORMANCE ASSESSMENT SYSTEM 165
The system 165
The performance indicators 167
The variables 167
The context information and other data elements 167
THE DEFINITION OF A SET OF PERFORMANCE INDICATORS 168
The protection of the consumer’s interests 169
The sustainability of the utility 170
The environmental sustainability 170
THE DEFINITION OF TARGET VALUES 171
THE IMPLEMENTATION OF THE PERFORMANCE ASSESSMENT MEASURES 171
THE RELEVANCE OF THIS APPROACH FOR THE OTHER STAKEHOLDERS 173
THE NEED FOR SUPPORTING TOOLS 174
CURRENT STATE-OF-THE-ART, SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS 175
FINAL REMARKS 178
REFERENCES 178
Proposal for a methodology to assess the technical performance of urban sewer systems 181
INTRODUCTION 182
METHODOLOGY 183
General description 183
Assessing infiltration and inflow impacts on the performance of sewer systems 184
Infiltration and inflow in sewer systems 184
Definition of performance indicators to assess I/I impacts 185
Definition of performance functions to assess I/I impacts 186
RESULTS AND DISCUSSION 188
Case study description 188
Results 191
Performance assessment for hydraulic capacity – pipe scale application 191
Performance assessment for infiltration – catchment scale application 191
Performance assessment for inflow – catchment scale application 192
Discussion 193
CONCLUSIONS 194
REFERENCES 195
Extended period simulation in the estimation of the economic level of reliability for the rehabilitation of water distribution systems 197
INTRODUCTION 198
OPTIMISATION METHODOLOGY 200
Lost revenue estimation 203
APPLICATION TO THE PSG CASE STUDY 205
CONCLUSIONS 213
REFERENCES 213
CHAPTER 5: COST AND BENEFIT VALUATION 217
Report: Cost and benefit valuation for asset management 219
INTRODUCTION 219
SOME INSIGHTS INTO THE STATE OF THE ART ABOUT VALUATION OF COSTS AND BENEFITS 221
Decision-making in asset management 221
What are ‘‘costs’’ or ‘‘benefits’’? 222
Quick and partial overview of valuation approaches 224
Some more detailed insight into external costs and benefits 225
SOME SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS 227
Identifying the appropriate spatial boundaries of the infrastructure to be considered and accounting for spatial structure of systems performance 228
Considering an appropriate time horizon and dealing with the long term 228
Addressing hazards and risks 229
Setting the boundaries of the ‘‘externalities’’ considered within asset performance 229
Further developing suited valuations for external costs and benefits 230
Dealing with uncertainties for decision-making 231
FINAL REMARKS: SHOULD WE GO ON DEVELOPING AND USING COSTS AND BENEFITS VALUATION, AND HOW CAN WE DEAL WITH DATA AVAILABILITY? 231
REFERENCES 232
Asset management in Copenhagen Energy Sewerage Department 235
INTRODUCTION 235
ASSET MANAGEMENT IN CESD 236
STRATEGIC LIFE-CYCLE COST MODEL IN CESD 238
RESULTS AND CONCLUSIONS 242
REFERENCES 242
Effect of water costs on the optimal renovation period of pipes 243
INTRODUCTION 243
REVISION OF THE STRUCTURE AND COST CALCULATION 244
Renovation costs (C⊂1) 244
Maintenance and repair costs (C⊂2) 244
Variable costs related to lost water (C⊂3) 245
Social costs (C⊂4) 246
Total costs (C⊂T) 246
EL MAXIMUM ACCEPTABLE LEAKAGE VOLUME (MALV) 247
EXAMPLE AND ANALYSIS 247
Influence of water production costs in the optimum renovation period 248
Influence of pipe average pressure in the determination of the optimum renovation period 249
Influence of the cost of water on the MALV 251
Influence of a higher failure rate 255
Influence of the repair costs 256
CONCLUSIONS 258
REFERENCES 259
Implementing an asset management approach to capital investment planning 261
INTRODUCTION AND OVERVIEW 263
THE FUNDAMENTALS OF ASSET MANAGEMENT AND CAPITAL PLANNING 264
BUSINESS CASES AND PROJECT PRIORITIZATION 265
BUILDING A SOLID FINANCIAL FOUNDATION 266
EDUCATING AND ENGAGING STAKEHOLDERS 268
THE GOAL: SUSTAINABLE LONG TERM PLANNING 269
CHAPTER 6: TARGET DEFINITION AND ASSESSMENT OF RISKS 271
Report: Risk management: Current state, gaps, and looking ahead 273
INTRODUCTION 273
Definition of risk management 273
STATE OF LEARNING AND PRACTICE FOR RISK MANAGEMENT 274
International infrastructure management manual 274
Australian and UK efforts 275
U.S. research efforts 276
U.S. Guidebook: implementing asset management: a practical guide 277
Utility case studies 277
GWRC’S STUDY OF RISK 278
Scope 278
Survey findings 278
Conclusions 279
Availability of detailed tools and methods (Barnes et al., 2007) 279
Categorization of risks (Barnes et al., 2007) 280
Risk management method (Barnes et al., 2007) 280
Organizational issues (Barnes et al., 2007) 280
KEY TOPICS FOR SPEAKERS 281
The role of uncertainties in urban drainage decisions: uncertainty in inspection data and their impact on rehabilitation decisions 281
Hazard identification and risk analysis of water supply systems 282
Infrastructure strategic management in contingency situations 282
Rehabilitation of a large sewer: methodology for the Alcantara interceptor sewer 282
FUTURE DIRECTIONS/EMERGING THEMES 283
REFERENCES 283
The role of uncertainty in urban drainage decisions: Uncertainty in inspection data and their impact on rehabilitation decisions 285
INTRODUCTION 286
Interviews with urban drainage managers: uncertainties in decision making 286
Sewer inspections in the Netherlands 287
DATA 288
METHOD 288
RESULTS AND DISCUSSION 291
Data analysis: presence of defects 291
Data quality: analysis of sewers inspected more than once 292
Inspection data and sewer rehabilitation decisions 296
CONCLUSIONS 296
REFERENCES 297
Hazard identification and risk analysis of water supply systems 299
INTRODUCTION 299
METHODOLOGY FOR RISK ANALYSIS OF WATER SUPPLY SYSTEMS 300
Terminology of risk analysis and general theory 300
Risk analysis under uncertainty 301
Risk structuring 303
GENERIC FRAMEWORK OF RISK ANALYSIS OF WATER SUPPLY SYSTEMS – PROJECT WATERRISK 303
Water supply system description 303
Catalogue of hazards and risk influencing factors 305
Catalogue of undesired events 305
Frequency analysis 307
Consequence analysis 308
Risk quantification and evaluation 308
Database of risk reducing measures 309
CONCLUSION 309
REFERENCES 310
Rehabilitation of a large sewer: Methodology for the Alcântara interceptor sewer 311
INTRODUCTION 312
METHODOLOGY 314
RESULTS AND DISCUSSION 316
Brief description of the case study 316
Structural degradation mechanisms 316
Degradation by internal causes 317
Degradation by external causes 320
CONCLUSIONS 321
REFERENCES 322
CHAPTER 7: ASSET DATA AND INFORMATION SYSTEMS 325
Report: Overview of asset data and information systems session 327
INTRODUCTION 327
STATE-OF-ART 328
Integrated support systems 328
AMS as core system 329
Best practice leakage control tools 329
SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS 329
Challenges 329
Shortcomings 330
Future trends 330
FINAL REMARKS 331
Global approaches to asset management – an Australian integration of asset management techniques with executive business decision 333
ASSET MANAGEMENT SYSTEM BUSINESS INTEGRATION 334
First level integration 336
Second level integration 337
BUSINESS REPORTING AND DECISIONS 337
AMS DEVELOPMENT DIRECTIONS 339
CONCLUSIONS 340
REFERENCES 340
SIROCO, a decision support system for rehabilitation adapted for small and medium size water distribution companies 341
INTRODUCTION 342
Context 342
Features of the SIROCO approach 343
DEFINITION AND COLLECTION OF DATA 344
Design phase 344
Pipes 344
Nodes 344
Failures 344
Data 345
Collecting information 345
BREAK PREDICTION MODEL WITH AMALGAMATED DATABASE 347
Model used 347
Validating the models 348
HYDRAULIC RELIABILITY MODEL WITH DATA ORIGINATING FROM A GIS 349
Presentation of software to calculate hydraulic reliability 349
Constraints of network structure associated with using a GIS 350
Dividing the network into hydraulic sectors 350
Basic rules of network topology 351
DECISION SUPPORT SYSTEM 351
Criteria 351
Impact criteria 351
Opportunity criteria 352
Calculating the multicriteria score of a pipe 352
Standardisation method 352
Aggregation methods 353
INTEGRATED SOFTWARE 354
Preparation of data base 354
Configuring the hypotheses 354
Production of data files, exported to Cemagref 354
Processing at Cemagref and production of result file 354
Importation of result file by user 355
Definition of weighting 355
Analysis 355
CONCLUSION 356
REFERENCES 357
CHAPTER 8: ENGINEERING DEVELOPMENTS 359
Engineering developments in asset management: Water supply 361
INTRODUCTION 361
SUMMARY OF THE STATE OF THE ART 362
FOCUSING THE RISK ASSESSMENT AND UTILISING AVAILABLE DATA 367
DETERIORATION AND CHANGE 369
WILLINGNESS TO PAY (WTP) 371
CULTURE AND ORGANISATION 372
ENGINEERING SOLUTIONS 372
Innovations related to wastewater network assessment 374
CONCLUSIONS 375
RECOMMENDATION 376
REFERENCES 376
Planning the upgrading of urban water networks – is there a need for the CARE-approaches 377
BACKGROUND: THE GLOBAL PROBLEM 377
INDICES OF AGEING IN URBAN WATER NETWORKS 378
Leakage 379
Burst frequencies 379
Pipe materials and age 380
Distribution network rehabilitation 381
Wastewater collection systems 382
STRATEGIES APPLIED FOR REHAB PLANNING 382
Strategic planning, level of service 382
The CARE support 383
Tactical planning 383
The CARE support 384
Technical planning 384
The CARE support 385
WAYS TO USE THE CARE-APPROACH 385
USE OF CARE-W, AN EXAMPLE 386
LESSONS LEARNT 390
ACKNOWLEDGEMENT 391
REFERENCES 391
Planning the rehabilitation of the Las Vegas water distribution network using CARE-W 393
CONDITIONS AT LVVWD THAT LED TO REHABILITATION PLANNING PROGRAM; OBJECTIVES PURSUED 393
Need 394
Feasibility 396
CARE-W TOOLS; PROGRAM THAT WILL BE SET UP AT LVVWD 398
CURRENT ADVANCEMENT OF THE PROJECT; FUTURE&?show [NBsp]; PLANS 400
Current advancement 400
Performance Indicators (PI’s) 400
Long Term Planning (LTP) 401
Failure forecasting (PHM and LEYP) 404
Hydraulic criticality (Relnet) 406
Annual Rehabilitation Planning (ARP) 409
Future plans 412
APPENDIX 1 414
Water Resources indicators (This section refers to the whole network) 414
Physical indicators (This section may refer to the whole network, sector, cluster or individual pipe) 414
Storage 414
Pumping 414
Transmission and distribution network 414
Operational indicators (This section may refer to the whole network, sector, cluster or individual pipe) 414
Inspection and maintenance 414
Mains, valves and service connection rehabilitation 414
Pumps rehabilitation 414
Water losses 415
Failures 415
Quality of Service indicators (This section may refer to the whole network, sector or cluster) 415
Author index 547