Sustaining capital planning with a clear view
Volatile markets, decarbonisation challenges, scarcity of capital and increased operational pressures are driving the need for smarter capital investment and delivery decisions to build asset resilience and performance. Whether it is debottlenecking or enhancing operations, today’s leaders are rethinking ‘sustaining capital’ and how to strategically reinvest in existing assets through planned, long-term programs.
Sustaining capital is not just about maintenance. The opportunity lies in deciding where to focus capital to optimise value and performance across large, complex asset portfolios. As priorities shift from building new assets to enhancing the performance of what’s already there, sustaining capital is a powerful lever for connecting assets to strategy, managing risk, exploring options and making informed trade-offs to unlock the full potential of your asset base.
An effective sustaining capital strategy would include:
- In-depth analysis prior to asset investment: Before finalising investment commitments, conducting a thorough analysis is crucial. This informs what can be done to improve the existing healthcare infrastructure to maintain or increase necessary levels of service or functionality.
- Interrogating operational efficiency: Assess asset performance by examining utilisation rates, identifying downtime and improving maintenance processes to enhance overall efficiency.
- Management practices: Review and refine business processes and governance structures. And clearly define roles and responsibilities to improve operational management.
- Reinvestment strategies: Develop a strategy for allocating sustaining capital, through the life cycle of the facility, to refurbish or renew existing assets.