Relation between
Investment and Operate-Maintain
Harold Muller
3 June 2014
Vitens Evides International
• Mission
− Increase global access to safe and reliable water & sanitation services
• Strategy...
Global portfolio - currently in 20 countries
3
• Water Operator Partnerships
• Service contract
• Technical Assistance
• M...
Why premature failure of water infrastructure ?
4
Examples of premature failures in Uganda
Why premature failure of water infrastructure ?
• Focus on coverage , instead of a full cost recovery approach.
• Lack of ...
What can be done in practice to avoid waste of
investment in infrastructure ?
• Include a list of spare parts during the p...
7
The What and How Question
Vitens Evides International
Approach on Asset management
Step 1
Knowing your assets
Step 2
Preventive maintenance planning...
9
• Asset Management as Mindset
• Guiding principle: “How should I act when deciding about assets?”
• Asset Management as ...
Relation between Investment and Operate-Maintain by Harold Muller VEI
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Relation between Investment and Operate-Maintain by Harold Muller VEI

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Harold Muller of Vitens-Evides International talks about the Relation between Investment and Operate-Maintain — at 7AM. IRC event, 3rd June 201
IRC runs a series of events in The Hague, open to all interested parties. These series bring together professionals to network and discuss hot topics in the water, sanitation and hygiene sector. They are forward looking and multidisciplinary in nature presenting the latest thinking from governments, NGOs, private sector and academia.

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  • This presentation uses outdated concepts. Operate and Maintain is only part of the total integrated Management that is required to ensure a sustained and sustainable service! IRC has pointed this out years ago!
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Relation between Investment and Operate-Maintain by Harold Muller VEI

  1. 1. Relation between Investment and Operate-Maintain Harold Muller 3 June 2014
  2. 2. Vitens Evides International • Mission − Increase global access to safe and reliable water & sanitation services • Strategy • Enhance performance of urban water operators  attract investment  improve and expand services, also to the urban poor • Focus − Water Operator Partnerships − Delegated Management contracts − Technical assistance − Multiple year programmes − Not for profit − No equity (co-) ownership
  3. 3. Global portfolio - currently in 20 countries 3 • Water Operator Partnerships • Service contract • Technical Assistance • Management Contract • Infrastructure development contract • Africa: Mozambique, Zambia, South Africa, Malawi, Ghana, Ethiopia, Kenya, Tanzania, Ethiopia, Zimbabwe, Burkina Faso, Uganda, Rwanda • Asia: Philippines, Vietnam, Bangladesh, India, Mongolia
  4. 4. Why premature failure of water infrastructure ? 4 Examples of premature failures in Uganda
  5. 5. Why premature failure of water infrastructure ? • Focus on coverage , instead of a full cost recovery approach. • Lack of knowledge on operate and maintain. • Distance between strategy and operation. • Often the needs of the operator is not translated into the right investment. • No connection between investment and operation TCO, LCC. 5
  6. 6. What can be done in practice to avoid waste of investment in infrastructure ? • Include a list of spare parts during the procurement; • Include a maintenance scheme and training within the procurement; • Include the operation costs of the different scenarios of the business case; • Clarify the investment process; • Manage the operate and maintain process; • Spare parts. • Tools. • Education. • Asset Management ?. 6
  7. 7. 7 The What and How Question
  8. 8. Vitens Evides International Approach on Asset management Step 1 Knowing your assets Step 2 Preventive maintenance planning on existing infrastructure to ensure its proper functioning over the entire economic design life time. Step 3 Replacement investment planning based on business cases and policy making for short- and long- term investment plans to replace existing infrastructure. Step 4 Total operation and maintenance planning for all existing and extension infrastructure based on Full Cost Recovery tariffs (‘total life cycle costing’). 8
  9. 9. 9 • Asset Management as Mindset • Guiding principle: “How should I act when deciding about assets?” • Asset Management as a Process • This process leads to optimization of asset systems, by focusing on those issues that really matter • A process is manageable • Processes contributes to the ability of continuous improvement • Asset Management as a Set of (Technical) Tools • To ensure that the tooling can be used meaningful it must match the degree of development of the company • Think in terms of organization, technical skills, competencies, etc. Three ways to look at Asset Management

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