GUIDELINES FOR INFRASTRUCTURE ASSET …

1 GOVERNMENT. 2006 - 2009". GUIDELINES FOR. INFRASTRUCTURE ASSET . management IN. local GOVERNMENT. 2006 2009. ACKNOWLEDGEMENTS. " GUIDELINES FOR INFRASTRUCTURE ASSET management IN local . Project Sponsor GOVERNMENT Molatelo Montwedi Executive Manager Municipal INFRASTRUCTURE , dplg 2006 - 2009". Authors Louis Boshoff Assignment Leader (i @ Consulting). Rob Childs (i @ Consulting). Lisa Roberts (Maunsell). Stakeholder inputs The participation of a number of stakeholder groups is gratefully acknowledged.

2 The inputs of the following parties in particular deserve notice: * Cities Network Focus Group on INFRASTRUCTURE (Buffalo City local Municipality, City of Cape Town Metropolitan Municipality,City of Johannesburg Metropolitan Municipality, Ekurhuleni Metropolitan Municipality, Ethekwini Metropolitan Municipality, Msunduzi local Municipality, Nelson Mandela Metropolitan Municipality, Tshwane Metropolitan Municipality). * Members of the Municipal INFRASTRUCTURE Technical Task Team (MIT3). * Office of the Accountant General (Hester Hermus).

3 * Department of Water Affairs and Forestry (Fred van Zyl). Illustrations, lay-out and design Chantel Colyn (i @ Consulting). Case study material Capricorn District Municipality Lephalale Municipality SPECIAL ACKNOWLEDGEMENTS. The authors wish to thank the Association of local Government Engineering NZ Inc (INGENIUM) and the National ASSET management Steering (NAMS) Group, whose work as contained in the International INFRASTRUCTURE management Manual (International Edition 2006) and other products provided the concepts that underpin this Guideline.

4 The NAMS Group (NZ). has given written permission for the use of specific extracts from their publications in this guideline. This concession enables this Guideline to be modeled upon best international ASSET practices. Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the publisher's written permission. Any unauthorised reproduction of this work will constitute a copyright infringement and render the doer liable under civil and criminal law.

5 Whilst every effort has been made to ensure that the information in this work is accurate, no responsibility for any loss or damage suffered by any person as a result of the reliance upon the information contained therein. Any inquiries regarding the publication should be directed to: Chief Directorate: Municipal INFRASTRUCTURE Department of Provincial and local Government Private Bag X804. Pretoria 0001. Tel: (012) 334 4995. Fax: (012) 334 0540. FOREWORD. Municipalities are custodians of community INFRASTRUCTURE such as roads, waste disposal sites, water and sanitation systems, and public facilities.

6 As Government, we are committed to extend INFRASTRUCTURE service delivery to all South Africans. To this end we have created the Municipal INFRASTRUCTURE Grant in 2004 to assist municipalities to complement the capital budgets of municipalities for the provision of INFRASTRUCTURE to the poor communities. In March 2006, Cabinet approved the National INFRASTRUCTURE Maintenance Strategy and so reinforced Government's support for the protection of community assets through well considered maintenance and renewal strategies aimed at furthering the objective of sustainable INFRASTRUCTURE services delivery.

7 INFRASTRUCTURE is the cornerstone of social upliftment, public health and safety. INFRASTRUCTURE is essential to achieve the increased levels of economic growth through job creation and the establishment of well serviced areas conducive for economic investment. INFRASTRUCTURE assets and community facilities are complex by nature and require robust management practices. Sound knowledge of the location, characteristics, estimated lives, capacity and utilisation, cost characteristics, risk exposure and safety requirements of assets is required to best manage them and make sustainable improvements in service delivery.

8 We support local government in achieving programmes that promote sustainable quality of life to all citizens. As part of a broader and ongoing support framework, we have developed this guide with inputs from local government practitioners. This guide has been compiled to assist municipal immovable ASSET managers. In particular, its application will assist in strengthening IDP processes and outcomes, the implementation of generally accepted municipal accounting practices related to immovable assets, improve INFRASTRUCTURE investment planning efforts and other municipal systems related to municipal INFRASTRUCTURE .

9 The guide draws on internationally accepted best practice, but has a strong South African flavor, given our unique context. The Office of the Accountant General has also been involved in ensuring compliance with local government specific accounting standards, and that sound financial ASSET management practices are embodied in this Guideline. Thus international best practice is presented in a manner that meets local legislative requirements and addresses local challenges. Case studies of how South African municipalities have successfully implemented ASSET management practices are provided.

10 This guide has been prepared specifically to assist small to medium size local municipalities in addressing the INFRASTRUCTURE management challenges that they face. The techniques are as far as possible presented in a format that is easy to understand and apply, supplemented by practical examples. Whilst larger, more capacitated municipalities may wish to apply more advanced techniques and systems, we believe that they will also benefit from the principles, frameworks, processes and techniques described in this guide.