The Drakenstein Municipality is a large local government organisation in the Western Cape Province of South Africa.
Within ever-present budgetary constraints, the asset managers at the municipality face a significant challenge to optimise service levels, risk and expenditure for all assets over the entire asset lifecycle.
The municipality appointed Aurecon to develop a full asset management programme so that they can maintain a balance between their fiscal responsibility and priorities for service delivery, within an optimised decision modelling environment. This optimised decision model is based on asset portfolio optimisation models that are typically used to plan rehabilitation and renewal programmes for road networks. This model was extended to cover all of the other infrastructure categories typically managed by the municipality such as storm water, water supply, sanitation, solid waste and electricity.
The asset management programme has enabled the municipality to optimise the performance of the entire asset portfolio, within specific risk and budgetary regimes.
The sophisticated risk model considers the social, environmental and economic risks associated with infrastructure services to prioritise capital renewal interventions.
The municipality was able to develop a model that assists it with optimising service delivery and risk to prioritise capital renewal projects within set budgetary restrictions. Return on infrastructure investment was maximised by limiting spending of funds to areas the municipality will get the most benefit from.
Long-term models were developed to understand the impact of current funding on service delivery. Aurecon also assisted with communicating the implications of funding decisions over the long-term to technical and non-technical stakeholders.