Advancing sustainability in infrastructure
planning, procurement, delivery and operation.
Antony Sprigg
CEO
0414 454 723
w...
• Infrastructure Sustainability Council of Australia
(formerly Australian Green Infrastructure Council)
• Member based, no...
ISCA then to now
• Bipartisan industry initiative
• 5 years old
• 70 members
• Australia and NZ
• $A 5M to develop
• IS gl...
ISCA Members
4
ISCA Members (cont’d)
5
Global Trend
BUILDINGS
• GBCA – Green Star
– Started 2003
– Over 600 rated + 500
registered
• NABERS
• LEED (USA)
• BREEAM...
What is Infrastructure Sustainability
• Infrastructure sustainability
• Sustainable infrastructure
• Green infrastructure
...
• Common national language for sustainability in
infrastructure
• Consistent application and evaluation of sustainability
...
IS Rating Scheme Drivers
Traction
10
Status Number Value ($m)
Certified 2 350
Registered 23 35,000
Potential 30 30,000
IS relative to asset
lifecycle
Development need
Pre-Feasibility
Feasibility
Concept / tender
design
Detailed Design
Constr...
12
Business
Case
Procurement
DesignConstruction
Operations
Master
Planning
IS
Scheme
Why use the IS scheme (slide 1)
13
Why use the IS scheme (slide 2)
Master Planning
Inform/challenge master plan through TBL performance assessment of the ...
14
Why use the IS scheme (slide 3)
Design
An integrated framework which encourages ‘centralising’ of sustainability
owners...
15
Why use the IS scheme (slide 4)
Construction
An industry developed best practise standard for applied sustainability in...
IS Themes and Categories
16
Themes Categories
Management and Governance
Management Systems
Procurement and Purchasing
Clim...
IS rating scheme
17
Benchmarking
18
Level 1
Good
Level 2
Excellent
Level 3
Leading
Beyond Compliance
Business
as Usual
Measurement
Implementin...
IS Scheme Ratings and the Brand
19
Rating Types
20
Rating Type:
Project Phase:
Planning &
Design
Construction Operation
Design Rating
Operation
Rating
As Bui...
21
IS in the Planning Support Phase (pre-
procurement)
• Options comparison.
• Evaluate sustainability related risks and
o...
22
Registered Projects
Project/Asset Location Rating Type Asset Status Capital
Value ($m)
Whitsunday STP
Upgrades
QLD Sewe...
23
Registered Projects
Project/Asset Location Rating Type Asset Status Capital
Value ($m)
Gateway WA - Perth
Airport & Fre...
24
Registered Projects
Project/Asset Location Rating Type Asset Status Capital
Value ($m)
NorthLink WA WA Design
As Built
...
Major projects/PPPs using IS
• Westconnex
• Northconnex
• NWRL
• BAT
• East West?
• Northlink (WA)
• GCLR
• CBD & SE Light...
26
Whitsunday STP Upgrades
Proponent: Whitsunday Regional Council
Contractor: Tenix
Infrastructure Type: Sewerage
Rating T...
27
Whitsunday STP Upgrades – Highlights
Category/
Credit
Score Achievements
Management
Systems
7.3/10.5
• Good management ...
28
Whitsunday STP Upgrades – Highlights
Category/
Credit
Score Achievements
Water 3.9/7.0
• 15% reduction in water use ove...
29
Whitsunday STP Upgrades – Highlights
Category/
Credit
Score Achievements
Innovation 5.0/5.0
• World’s-first trial of Pa...
Great Eastern Highway Upgrade
A 4.2km section of the Great Eastern Highway between Kooyong Road and
Tonkin Highway widened...
Great Eastern Highway Upgrade – Highlights
31
Category/
Credit
Score Achievements
Management
Systems
6.3/10.5
• Commitment...
Great Eastern Highway Upgrade – Highlights
32
Category/
Credit
Score Achievements
Materials 6.2/7.0
• Significant reductio...
Great Eastern Highway Upgrade – Highlights
33
Category/
Credit
Score Achievements
Innovation 1.7/5.0
• Warm mix asphalt wa...
IS Rating Tool – Continuous Improvement
Review and
Feedback
IS Rating tool V1
Use of Design and As Built V1
IS Rating Tool...
35
Scope of the Workforce Theme
Workforce Theme
Recognising and addressing social aspects is key to achieving sustainable ...
36
Scope of Economics Theme
Economics Theme
Economic sustainability relates to the economic value created by an activity a...
Advancing sustainability in infrastructure
planning, procurement, delivery and operation.
Antony Sprigg
CEO
0414 454 723
w...
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Antony Sprigg - Infrastructure Sustainability Council of Australia - Sustainability Trends in Infrastructure Project Procurement

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Antony Sprigg delivered the presentation at 2014 National PPP Summit.

The National PPP Summit is the leading annual event for industry stakeholders to gather and discuss the issues across the national and global PPP markets. The 2014 agenda reviewed current and emerging financing models as well as showcasing best practice strategies for the procurement process, risk transfer and whole-of-life project management.

For more information about the event, please visit: http://www.informa.com.au/PPPSummit14

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Antony Sprigg - Infrastructure Sustainability Council of Australia - Sustainability Trends in Infrastructure Project Procurement

  1. 1. Advancing sustainability in infrastructure planning, procurement, delivery and operation. Antony Sprigg CEO 0414 454 723 www.isca.org.au Sustainability Trends in Infrastructure Project Procurement
  2. 2. • Infrastructure Sustainability Council of Australia (formerly Australian Green Infrastructure Council) • Member based, not-for-profit, industry council Enhancing the liveability and productivity of our major cities and our regional communities through advancing sustainability in infrastructure planning, procurement, delivery and operation. 2 ISCA Overview
  3. 3. ISCA then to now • Bipartisan industry initiative • 5 years old • 70 members • Australia and NZ • $A 5M to develop • IS globally benchmarked and locally tailored 3
  4. 4. ISCA Members 4
  5. 5. ISCA Members (cont’d) 5
  6. 6. Global Trend BUILDINGS • GBCA – Green Star – Started 2003 – Over 600 rated + 500 registered • NABERS • LEED (USA) • BREEAM (UK) INFRASTRUCTURE • CEEQUAL (UK) – Started 2003 – Over 150 rated • ISI - Envision (USA) – Started 2012 6
  7. 7. What is Infrastructure Sustainability • Infrastructure sustainability • Sustainable infrastructure • Green infrastructure Infrastructure sustainability (IS Technical Manual) ,” … infrastructure that is planned, designed, constructed and operated to optimise environmental, societal and economic outcomes over the long term”. 7
  8. 8. • Common national language for sustainability in infrastructure • Consistent application and evaluation of sustainability in tendering processes • Scoping whole-of-life sustainability risks for projects and assets, enabling smarter solutions that reduce risks and costs • Fosters resource efficiency and waste reduction, reducing costs • Fosters innovation and continuous improvement • Builds an organisation’s credentials and reputation in its approach to sustainability in infrastructure 8 IS Benefits
  9. 9. IS Rating Scheme Drivers
  10. 10. Traction 10 Status Number Value ($m) Certified 2 350 Registered 23 35,000 Potential 30 30,000
  11. 11. IS relative to asset lifecycle Development need Pre-Feasibility Feasibility Concept / tender design Detailed Design Construction Handover Project Cycle AbilitytoInfluenceQBLoutcomes Concept Detailed Design Construction AbilitytoInfluence procurement,materialsandwaste
  12. 12. 12 Business Case Procurement DesignConstruction Operations Master Planning IS Scheme Why use the IS scheme (slide 1)
  13. 13. 13 Why use the IS scheme (slide 2) Master Planning Inform/challenge master plan through TBL performance assessment of the proposed underpinning infrastructure. • Mitigate perverse outcomes • Enhanced integration • Appreciation of material impacts and opportunities Business Case Benchmark, evaluate and gap analyse for TBL aspects in the business case for a new infrastructure project. • Informs and articulates the ‘story’ underpinning the project need • Establishes a TBL governance and performance framework which can be pulled through each project phase • Identifies and incorporates high value sustainability considerations early • Informs procurement • ‘Bottom up’ due diligence ESG assessment framework for investors • Stream line approvals
  14. 14. 14 Why use the IS scheme (slide 3) Design An integrated framework which encourages ‘centralising’ of sustainability ownership, increasing the likelihood of unlocking design solutions which can meet both fit for purpose, cost and sustainability whole of life expectations and outcomes. • Facilitates continuous improvement and innovation • Facilitates sustainability in design processes • Provides a reporting platform Procurement A TBL performance framework to assess and identify sustainability objectives, targets and innovations pretender by client and as part of tender response by tenderers. • Consistent industry language and benchmarks, thus reducing costs and improving outcomes • Reduces risks for clients and increases certainty for tenderers • Provides measureable and quantifiable targets
  15. 15. 15 Why use the IS scheme (slide 4) Construction An industry developed best practise standard for applied sustainability in construction associated with civil and infrastructure projects. • Common industry sustainability language • A framework which can be used to identify and value resource efficiency, innovation and other environmental and community opportunities • Centralises and maintains sustainability ownership during delivery • Informs project KRA’s/KPIs and associated targets • ‘Voluntary’ and outcomes based, therefore can be a project culture enhancer Operation A ‘bottom up’ applied sustainability tool and management framework which can be used to benchmark asset performance and inform continuous improvement. • Value creation and risk identification for investors • Baseline asset/network TBL performance for asset owner/operators • Facilitates identification of risks and opportunities and informs continuous improvement targets • Informs corporate reporting
  16. 16. IS Themes and Categories 16 Themes Categories Management and Governance Management Systems Procurement and Purchasing Climate Change Adaptation Using Resources Energy and Carbon Water Materials Emissions, Pollution and Waste Discharges to Air, Land and Water Land Waste Ecology Ecology People and Place Community Health, Well-being and Safety Heritage Stakeholder Participation Urban and Landscape Design Innovation Innovation
  17. 17. IS rating scheme 17
  18. 18. Benchmarking 18 Level 1 Good Level 2 Excellent Level 3 Leading Beyond Compliance Business as Usual Measurement Implementing Initiatives No net impact Restoration & Enhancement Compliance Level of Performance
  19. 19. IS Scheme Ratings and the Brand 19
  20. 20. Rating Types 20 Rating Type: Project Phase: Planning & Design Construction Operation Design Rating Operation Rating As Built Rating Design – As Built - Operation
  21. 21. 21 IS in the Planning Support Phase (pre- procurement) • Options comparison. • Evaluate sustainability related risks and opportunities to inform the design and planning processes. • Realise the areas you want the private sector to demonstrate performance and innovation against (from EOI, to short list, to preferred tenderer). • Use our performance benchmarks to inform and set requirements/ expectations for project and thus leveraged for each procurement stage. • Use IS to inform your project’s story.
  22. 22. 22 Registered Projects Project/Asset Location Rating Type Asset Status Capital Value ($m) Whitsunday STP Upgrades QLD Sewerage Certified rating awarded 45 Great Eastern Highway Upgrade WA Road Certified rating awarded 300 Enlarged Cotter Dam ACT As Built Water Supply and Storage Verification underway 300 Rous Head Industrial Park WA As Built Port Self- assessment underway 15 Gold Coast Light Rail (Stage 1) QLD As Built Light Rail Verification underway 437 Elizabeth Quay WA As Built Roads, wharfs and utilities Self- assessment underway 438
  23. 23. 23 Registered Projects Project/Asset Location Rating Type Asset Status Capital Value ($m) Gateway WA - Perth Airport & Freight Access WA Design As Built Road Self- assessment underway 1,000 Googong Water Treatment Plant Chemical Facility Upgrade ACT Design Water Supply Self- assessment underway 9 North West Rail Link - Early Works NSW As Built Railway Self- assessment underway 80 Wynyard Walk NSW Design As Built Cycleways and Footpaths Self- assessment underway 286 North West Rail Link - Tunnel and Station Civils NSW Design As Built Railways Self- assessment underway 1,100 CBD and South East Light Rail NSW Design As Built Operation Light Rail Planning and Procurement 1,600
  24. 24. 24 Registered Projects Project/Asset Location Rating Type Asset Status Capital Value ($m) NorthLink WA WA Design As Built Road Self- assessment underway 1,000 Whitsunday STP Upgrades QLD As Built Water Supply Self- assessment underway 45 Confidential Road Asset Management NSW Operation Pilot Road Registration 700 Capital Metro ACT Design As Built Operation Light Rail Self- assessment underway 614 Confidential NSW Design As Built Road Registration 2,700 Madden and Pakenham St Road Upgrade NZ NZ Design Pilot Road Self- assessment underway 13 North West Rail Link – Surface and Viaducts Civil NSW Design As Built Railway Self- assessment underway 340 City Rail Link NZ NZ Design Pilot As Built Railway Registration 2,800
  25. 25. Major projects/PPPs using IS • Westconnex • Northconnex • NWRL • BAT • East West? • Northlink (WA) • GCLR • CBD & SE Light Rail • Capital Metro 25
  26. 26. 26 Whitsunday STP Upgrades Proponent: Whitsunday Regional Council Contractor: Tenix Infrastructure Type: Sewerage Rating Type: Design Location: Whitsundays, QLD Capital Value: $45m Start Date: May 2012 Practical Completion: May 2014 The upgrade of two treatment plants at Proserpine and Cannonvale are to serve growing communities and meet the most stringent effluent discharge requirements to protect the Great Barrier Reef. They will also provide benefits to the local community by reducing sewage overflows, and improving noise and odour.
  27. 27. 27 Whitsunday STP Upgrades – Highlights Category/ Credit Score Achievements Management Systems 7.3/10.5 • Good management systems integrating the IS rating tool into practices • Knowledge sharing clearly demonstrated. Procurement and Purchasing 4.2/5.0 • Strong commitment to and application of sustainable procurement including local procurement: • 50% of total spend in the Whitsunday region • 30% of total spend in greater Queensland Climate Change Adaptation 4.2/5.0 • Did a thorough, formal climate change risk assessment and implemented controls to reduce 22 ‘high’ or ‘very high’ risks to a ‘moderate’ or ‘low’ rating Energy and Carbon 5.1/10.5 • 305 MWh electricity saved over operational life – thus a 14% reduction equating to $75,000 saving/year • 14,000 tCO2-e avoided over lifecycle • Use of B20 Biodiesel avoiding 272 tCO2-e (cost neutral)
  28. 28. 28 Whitsunday STP Upgrades – Highlights Category/ Credit Score Achievements Water 3.9/7.0 • 15% reduction in water use over lifecycle, with associated cost benefit Materials 7.0/7.0 • Reduced the materials footprint by 25%: • Used 4,329 tonnes less concrete • Used 298 tonnes less steel • Used eco-cement with 30% fly ash • Eliminated asphalt from the design Receiving Water Quality 2.9/2.9 • >75% reduction in N and >90% reduction in P (44 tonnes less nutrients annually) to the Great Barrier Reef Marine Park Ecological Value 2.0/2.0 • Ecological value enhanced through >5,000 m2 of regenerated native habitat and 1000 m2 of wetland
  29. 29. 29 Whitsunday STP Upgrades – Highlights Category/ Credit Score Achievements Innovation 5.0/5.0 • World’s-first trial of Parallel Nitrification & De- Nitrification (PND): • Significantly improves nitrogen removal • More compact • Less construction materials • More energy efficient
  30. 30. Great Eastern Highway Upgrade A 4.2km section of the Great Eastern Highway between Kooyong Road and Tonkin Highway widened from four to six lanes with a number of ancillary improvements including central medians, upgraded intersections, on road cycling facilities, bus priority lanes and continuous paths for pedestrians. Proponent: Main Roads WA (MRWA) Contractor: City East Alliance (MRWA, Leighton Cont., GHD, NRW) Infrastructure Type: Road Rating Type: As Built Location: Perth, WA Capital Value: $350 million Start Date: July 2011 Practical Completion: March 2013
  31. 31. Great Eastern Highway Upgrade – Highlights 31 Category/ Credit Score Achievements Management Systems 6.3/10.5 • Commitment to mitigating negative environmental, social and economic impacts • Accredited management systems • Thorough risk and opportunity assessment • Knowledge sharing clearly demonstrated • Strong decision making approach incorporating sustainability aspects Water 2.9/7.0 • Opportunities to reduce water use identified and implemented • Instead of using high-value potable water, the project installed groundwater bores and constructed a weir which, on completion, was handed to the local council to irrigate parks.
  32. 32. Great Eastern Highway Upgrade – Highlights 32 Category/ Credit Score Achievements Materials 6.2/7.0 • Significant reduction in materials lifecycle impacts through extensive use of recycled materials, reducing the use of non-renewable resources of limestone, sand and bitumen • The highway now has the largest use of recycled material on any WA State road with 43 per cent of imported material being recycled Previous Land Use 3.3/3.3 • >75% of land used for the project was previously disturbed Heritage 2.3/5.0 • Thorough approach to heritage assessment and management • Monitoring overseen by appropriately qualified persons
  33. 33. Great Eastern Highway Upgrade – Highlights 33 Category/ Credit Score Achievements Innovation 1.7/5.0 • Warm mix asphalt was used on the project, applying innovative foaming technology to mix the bitumen into the asphalt mix • This was a first for Western Australia, reducing energy use and GHG emissions
  34. 34. IS Rating Tool – Continuous Improvement Review and Feedback IS Rating tool V1 Use of Design and As Built V1 IS Rating Tool - Design and As Built V2 Tool Consolidation Launch Preparation OperationPilot (IPWEA) Economic Workforce IS Operation V1 Operation Pilot (Others) 2012 2015 H1 2013 H1 2013 H2 Review and Feedback 2014 H1 2014 H2 New Themes Proposed Operational Priority Review Key ScopingScoping
  35. 35. 35 Scope of the Workforce Theme Workforce Theme Recognising and addressing social aspects is key to achieving sustainable outcomes in infrastructure procurement, delivery and operation. In the IS rating scheme, the workforce is defined as the people directly working (designing, constructing and operating) on the project/asset including direct employees of all key stakeholders and direct employees of sub-contractors (note that the rest of the supply chain is addressed in the Procurement and Purchasing category). The results of the scoping study recommended that the Workforce theme covers the categories (and credit topics) below. Capability and Capacity Knowledge / sustainability awareness Corporate knowledge Learning and development Career management Strategic planning Legacy Performance/ Competency Job Design Diversity and Inclusion Cultural awareness Cultural heritage Organisational culture Supply chain Inclusive employment Flexibility Workstyles Language, literacy and numeracy Workforce Relations Equal Employment Opportunity (EEO) Privacy Fairness Recognition and reward Communication Employee engagement Industrial relations Organisational development Workforce Safety, Health and Wellbeing Active living Physical health Mental health Safety in design Safety in construction Wellbeing
  36. 36. 36 Scope of Economics Theme Economics Theme Economic sustainability relates to the economic value created by an activity after deducting the cost of all inputs, including the cost of the capital tied up. The definition is synonymous with economic efficiency – employing existing resources optimally so that a responsible and beneficial balance can be achieved over the longer term. Overall Economics This category focusses on the overall economics for the project or asset in determining the scope and whether to proceed. How has cast-benefit been analysed? Have wider benefits been considered? How has this information been used in decision making? How have the capacity building and productivity been considered? Options Analysis This category focusses on economics for the project or asset in options analysis within projects. How has the cost- benefit of options been analysed? Have wider benefits been considered? How has this information been used in decision making? How have the capacity building and productivity been considered? Valuing Sustainability This category focusses on sustainability initiatives undertaken on a project or asset and how the value of these initiatives has been recognised. How have sustainability initiatives and their costs and benefits been analysed, recognised and reported?
  37. 37. Advancing sustainability in infrastructure planning, procurement, delivery and operation. Antony Sprigg CEO 0414 454 723 www.isca.org.au Thank you
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