Planning for Infrastructure Service Delivery in Municipalities: The Role of Comprehensive Infrastructure Plans. DJW Wium

Transcription

1 Planning for Infrastructure Service Delivery in Municipalities: The Role of Comprehensive Infrastructure Plans DJW Wium Aurecon South Africa (Pty) Ltd

2 Scope Background on Infrastructure Planning Concepts of the CIP Scope of the CIP Lessons Learnt Creating sustainable human settlements Summary and conclusions

3 Background on Infrastructure Planning Significant progress made in providing services to all households in South Africa Large investments since 1994 Many now served compared to previous dispensation Despite this progress, service boycotts are rampant and demand increase daily Lacking services (no infrastructure) Deterioration in existing services (poor roads, leaking pipes, polluted water, power outages, rubbish in streets) Pro-active plans now required to address these challenges Current budgets not sufficient Current scope of needs not clearly defined 3

4 Life cycle management of assets Provide a service (e.g. giving clean water to every household), requires infrastructure assets Various steps are required over the 50 (or more) year life of these assets... Identifying the need for new infrastructure assets & preparing for implementation Designing the infrastructure assets, and constructing them Operating them (e.g. Cleaning the river water), maintaining the assets, getting paid for providing the service Planning Implementation Operations & Maintenance Policy & strategy Planning Design Operations Construction Maintenance Revenue colection Ratio of total cost: 0.1% 1% 4% 40% 55% 24 November

5 Scope Background on Infrastructure Planning Concepts of the CIP Scope of the CIP Lessons Learnt Creating sustainable human settlements Summary and conclusions

6 Concepts of the CIP Comprehensive Infrastructure Planning addresses these needs: Provides a business model for strategic actions Focuses on implementing key initiatives identified in the IDP Ensures sustainability (technical, financial, institutional) Key focus areas Ensure that all communities are serviced Dilapidated assets are refurbished Efficient operations and maintenance is performed Necessary skills are provided Funding is available 6

7 Concept of the CIP Principle focus in on the WARD Identify needs per ward Ensure that all services are addressed in the ward Develop a long term plan Identify specific projects required to address the needs Summarise this into a municipality wide plan Formulate this as a programme of intervention (as opposed to ad hoc loose projects achieving little continuity) Water Sanitation Roads Electricity Housing Municipality wide programme of intervention Ward

8 Environmental Infrastructure service delivery A municipality is responsible for providing services to its consumers in its jurisdiction. It uses infrastructure to provide these services, and provide institutional support to deliver the required levels of service. Obviously this requires financial resources to afford these services, staff, and resources Institutional Serviced by Natural resources Infrastructure Services Consumers Funded through Financial

9 Environmental Consumers & their needs Polices, strategies Institutional Procedures, org structures, staff Migration Growth IDP/ PGDS/ LED Systems Serviced by Natural resources Create Refurbish Infrastructure Operate Maintain Services Households Industries, Mines, etc Life cycle of infrastructure assets Funded through Loans Capital Grants Financial Costs Operating Revenue Land Housing Land A municipality s key customer is the consumer, be it private households, industries, businesses or other government entities. The demand for services, and the location of these demands, are guided by the spatial development framework, which identifies areas of future growth. This culminates in LED s, housing plans, and eventually the IDP

10 Environmental Households Industries, Mines, etc Infrastructure Infrastructure is required to deliver the service: this infrastructure has a life, during which it is created (starting at the initial planning, designed and constructed), used (operated and maintained), and eventually refurbished when it has deteriorated Polices, strategies Institutional Procedures, org structures, staff Systems Serviced by Natural resources Create Refurbish Operate Maintain Services Consumers Life cycle of infrastructure assets Funded Loans Capital Grants Financial Costs Operating Revenue

11 Environmental Households Industries, Mines, etc Institutional support framework Polices, strategies SLA s, Procedures, org structures, staff The services can only be delivered through an well-designed organisation with well-formulated policies and strategies. Most importantly, it should have trained, motivated staff. In addition, it is necessary to provide appropriate records of the infrastructure as asset registers, with appropriate performance measures and information system. Usually, a number of Service Level Agreements need to be entered into with suppliers and off-takers. Systems Serviced by Natural resources Create Refurbish Infrastructure Operate Maintain Services Consumers Life cycle of infrastructure assets Funded Loans Capital Grants Financial Costs Operating Revenue

12 Environmental Households Industries, Mines, etc Financial & funding Polices, strategies Institutional Procedures, org structures, staff Finally, a municipality needs funds to support the infrastructure. This entails own funds and loans to fund capital investment, and monthly revenue to fund the ongoing operations and maintenance actions. In those cases where sufficient funds are not available, national government provides grants (through MIG, the Equitable Share, etc) to supplement the income. Today, many municipalities only rely on these grants, and it has become impossible to balance their budgets due to low tariffs and payments. Systems Serviced by Natural resources Create Refurbish Infrastructure Operate Maintain Services Consumers Life cycle of infrastructure assets Funded Loans Capital Grants Costs Operating Revenue

13 Environmental Finally, an action plan is required to ensure that these elements are assessed, interventions are identified, and an implementation plan developed to ensure sustainable service delivery. Comprehensive Infrastructure Plans Intervention plan towards sustainability Polices, strategies SLA s, Procedures, org structures, staff Migration Growth IDP/ PGDS/ LED Using resources Systems Providing services Create Refurbish Operate Maintain Households Industries, Mines, etc Life cycle of infrastructure assets Loans Capital Costs Operating $ Land Housing Land Grants Revenue MIG, other NT Equitable Share

14 Scope Background on Infrastructure Planning Concepts of the CIP Scope of the CIP Lessons Learnt Creating sustainable human settlements Summary and conclusions

15 Scope of the CIP Focus areas Development planning where will development take place Infrastructure provision which new assets need to be provided Institutional arrangements who will do the work Financial resources what will it cost Intervention plan Provide and/or refurbish the necessary infrastructure Improving revenue Improved billing, collection, enforcements, and cost reflective tariffs Develop internal institutional capacity of the municipality Obtain additional short term financing Own revenues, loans, grants, or savings Build awareness amongst all consumers 15

16 Scope of the CIP Provides inputs into the IDP review process Ensures that all needs have been identified Formulates an intervention plan & budget Creates a framework for prioritising projects based upon needs of the communities

17 Benefits of the CIP process Conducive to inter-governmental relationships, cooperative government Support was provided by Inputs by sector departments Bridge gap between municipal and sector strategies Integrate plans between different sectors (ensure that all work from a common demographic model, etc) Creates a business model for... Balancing costs and revenues for sustainable service delivery Taking cognisance of actual costs for services whilst Balancing affordability versus appropriateness Developing necessary capacity in the municipality 17

18 Scope Background on Infrastructure Planning Concepts of the CIP Scope of the CIP Lessons Learnt Creating sustainable human settlements Summary and conclusions

19 Lessons Learnt Backlogs in service delivery Integrated planning Deteriorating asset base Skills based in municipalities Limited funding Protracted supply chain management processes 19

20 Backlogs in service delivery Vast improvement in access to water and sanitation services achieved, but challenges remain: Needs of more rural consumers Areas of rapid growth (informal areas around cities) Housing programmes to upgrade informal areas Water: R15 R20 billion Sanitation: R30 R35 billion Bulk supply to communities Large investments required (R45 R60 billion)

21 Typical water cycle No Details 1 Water resources: surface & ground water 2 Bulk storage (Dam) Abstraction point 1 2 Dams, abstraction point in river, dam Regional bulk water supply system 4 Water treatment works 4 Water treatment works Internal bulk and storage Community reticulation 5 Internal bulk water supply system 6 Water reticulation to houses, consumers 7 On-site sanitation or sewer reticulation 8 Bulk outfall sewer pipelines 9 Waste water treatment works 10 Return to river River (Resource) 10 Discharge back into resource Water services require full extent of items 1 6 Sanitation requires either on-site or items 7 10 Municipal responsibility DWAE/others 9 Waste water treatment works Diagram courtesy of DBSA s MIIF 8

22 Integrated planning Limited coordination between sector departments in planning for municipalities Plans often reflect differing populations models Impact: households don t benefit fully from services, e.g. Communities provided with water borne sanitation, but insufficient water available for new facilities Schools and clinics provided much later than housing developments Sector plans ignore the need for integrated nature of developing sustainable communities Need for attention to High cost of bulk infrastructure Local/micro needs of single communities need to consider plans aimed at long term sustainability

23 Deteriorating asset base Infrastructure assets reached end of design life Poor service delivery (low pressures, potholes, etc) Significant water losses Unhealthy conditions Large refurbishment programmes identified Funding not available (12 15% of replacement cost) EPWP II programme could assist using labour-based approach Municipalities have developed asset registers Basis for formulating detailed Asset Management Plans Prepare detailed maintenance and refurbishment plans Include a funding plan to achieve these goals

24 Skills based in municipalities Skills remain a challenge in municipalities Large staff turnover (especially in remote/rural areas) Lack of suitably skilled staff with appropriate experience while understanding of the needs of communities Use of external service providers not sufficient Limited focus with no continuity Do not have the benefit of long term planning in the particular municipality Not sustainable in the long term Alternative methods need to be considered Recruiting, training, mentoring

25 Limited funding, supply chain challenges Municipalities rely on grant funding for infrastructure Limited use of own funding, borrowing Low revenues of these municipalities Low tariffs, large numbers of indigents Low billings and long overdue debtors Intervention plans required to define cost-reflective tariffs Infrastructure projects are complex requiring convoluted processes Improved internal coordination between different departments to expedite the delivery Use of numerous small projects increases delays Consider larger programmes to reducing the transaction costs

26 Scope Background on Infrastructure Planning Concepts of the CIP Scope of the CIP Lessons Learnt Creating sustainable human settlements Summary and conclusions

27 Creating sustainable human settlements Define an intervention plan using a developmental approach Formulate an organisational model addressing full infrastructure life cycle Business processes, structure, and job descriptions Provide skilled staff Training programmes for staff (operators, asset & project management, etc) Mentoring of staff towards full professional qualifications Development of small contractors and service providers Clear development plans reflecting service needs of communities Local economic development and spatial planning Guide infrastructure planning 27

28 Creating sustainable human settlements Budgeting should focus on achieving those agreed goals Revenue improvement programmes Monitoring and evaluation programme linked to a benchmarking forum Municipalities can learn from one another

29 Framework for intervention Objectives Address backlogs, maintenance needs of roads, water networks Resolve operational needs of treatment works Create long term jobs, build skills Short term (1 3 months) Assess condition of infrastructure and develop intervention plan Initiate operational support for treatment works Develop turn-around plan for institutional challenges, train staff Medium term (4 12/24 months) Build new networks Refurbish infrastructure Longer term (2 5 years) Maintain infrastructure Operate treatment works 29

30 Summary and conclusions CIP process provides solid basis for future planning Focuses on service delivery of infrastructure services Uses wards as point of delivery, building up towards municipality wide solutions Various officials have gained significantly in developing a clearer understanding of the needs Current opportunity is to apply leadership in implementing these plans Focus on implementing and sustaining infrastructure assets Review these plans on annual basis 30

31 Acknowledgements The inputs provided by the Department of Cooperative Governance and Traditional Affairs are hereby acknowledged Funding provided by the DBSA is acknowledged 31