Irish Water Capital Investment Planning

Transcription

1 Irish Water Capital Investment Planning CIWEM/ Engineers Ireland 7 th April 2014 John Casey Asset Strategy & Sustainability Manager Irish Water 1

2 A function based organisation with a regional presence Irish Water Headquarters in Dublin and a services function in Cork Three regions and 8 regional offices 3 Regions 8 Regional Offices Eastern / Midlands Dublin City Mullingar Castlebar Connaught/Ulster Cavan Town Donegal Town Kilkenny City Southern Limerick City Mallow 2

3 SLA Overview Governance Arrangements Important Inputs Develop Service Plan Deliver Service Plan Annual Review Customer / Stakeholder Needs Rolling 5 Yr Plan Capital Investment Deliver Transformation & Change Clear Roles & Responsibilities Commitment to Collaboration Annual Service Plan Key objectives Performance Activities Change Prog. Headcount Budget Continuous Improvement Cycles Operate & Maintain Assets Continuous Improvement Cycles Decisions Key objectives Activities Change Prog. Funding Commitment to Continuous Improvement Manage Performance & Costs Dispute Avoidance & Issue Resolution 3

4 Regulatory Context New Water Services Regulation Customer Service & Affordability Employment & Growth CER DECLG HSA IW + LA Environmental Protection HSE EPA Balance Sustainability Objectives 4

5 Building a Sustainable Water Service: Asset Management Approach Will drive Investment Planning based on asset data and defined needs Relies on full Asset data including Operations workflow & costs Makes optimum use of available resources Ensures the right projects are selected and delivered in the right way Promotes best use of existing assets capacity & risk models Balances Capital & Operational investment whole life view Promotes a consistent set of policies & standards across asset base Supports a sustainable business model-present & future needs Promotes risk management as a key focus to target investment Asset Management will drive both operational & capital investment based on sustainability principles 5

6 Building a Sustainable Water Service: Funding and Investment Drivers Drinking Water Quality Drinking Water Availability Environmental Compliance Wastewater Availability Meeting Customer Service Obligations Business Efficiencies Asset Condition & Performance Enhancement Enhancement / Growth Enhancement Enhancement / Growth Enhancement Enhancement Capital Maintenance 6

7 Building a Sustainable Water Service: Development of Investment Programmes Irish Water Strategic Investment Plans Financial Regulator - CER Environmental Regulator - EPA DECLG Stakeholders: LA s, Regional Authorities, Customers/Citizens Water Services Strategic Plan (25 Year) This will inform / be supported by Specific Strategies: Water Resources Management Plan National Sludge Management Plan Climate Change and Adaption Strategy Price Control Period Investment Plans Capital Major Projects Small Capital New Connections/Developer Services Surveys & Studies WSPP sets out high level strategic objectives including alignment with Economic and Spatial Plans Will be required by legislation Will require Ministerial approval Investment plans submitted to CER First full regulatory period (TBC) Interim Investment Period

8 Asset Management Function in Irish Water Irish Water Asset Management Asset Strategy Asset Policies & Standards Asset Information (Data & Models) Asset Strategies Investment Planning Asset Investments Investment Options Analysis Portfolio Management Performance/ Benefits Review Asset Programmes Water Supply Programme Wastewater Programme Small Capital Programme Contract Strategy Developer Services 8

9 Asset Management Systems Irish Water Maximo Primavera Oracle GIS SCADA Hydraulic Models Asset inventory and database Asset condition and performance Asset maintenance Planned Reactive Workflow management Cost Capture New connections assessment Project Management Portfolio Management Asset Hierarchy L1 Regulatory/Tariffs L3 Business Level L3 Regional Level (SLA) L4 Chart of Accounts Level (Financial) L5 Installation Level L6 Process Level L7 Stage Level Cake Storage Convey or Unit Submersibl e Pumping Station WATER TREATMENT PLANT Sludge Dewateri ng Plant Abstraction & Intake Works In-Line Pumping Station Sludge Screenin gs Handlin g ABOVE GROUND WASTE WATER WATER TREATMENT REGION 1 REGION 2 REGION 3 Borehole & Adit Borehol e Pumping Station Pipe Recepti on ABSTRACTION Dam Structur e Facilities Sludge Screening Micro Strainer Utilities Tanker Loading WATER SUPPLY ZONE Screening - Coarse Power System Dam Structur e Sludge Thickeni ng Plant PUMPING STATIONS Screenin g - Fine BELOW GROUND Control Systems Reservoi r Draw off & Scour Liquor Treatme nt Environmental Reservoir Inlet & Bye Wash Tanker Receptio n FACILITIES (Buildings) River Basin Attributes/EU Directive 2000/60/EC Local Authority Attributes WATER STORAGE Common Site Services Reservoi r Overflo w Odour Contain ment Water Tower Inter Stage Transfer Sludge Storage SLUDGE MANAGEMENT 9 Chemical Prep Chemica l Recepti on & Storage Dirty Wash water Tank/Sy stem Odour Treatme nt Unit Facilities Utilities Power System Control Systems Environmental Commo n Site Services

10 Approach to Investment Planning Enduring Previous Approach Future Approach WSIP high investment on relatively small number of schemes including high growth provision Under-investment on large number of schemes Under-investment in capital maintenance All schemes considered for investment Greater spread through small capital / more targeted investment Growth provision just in time Benefits of standardisation and innovation IW Future Process Assess Current Performance & Risk Future Needs Analysis Gap Analysis Define and Optimise Projects Finalise Investment Plan ( 6 year ) Submission to CER Asset Management Regional and LA consultation EPA Engagement Capex Opex Small Capital Bundling Drivers Prioritisation Cost Benefit Analysis 10

11 Investment Planning Process Project Sources WSIP RAL AER Small Capital Strategic Studies Drivers Prioritisation Project Decision Trees First stage filter Project WSIP Readiness + WSIP in-flight Potential cashflow Investment Need by Driver Project list to be prioritised Interim Price Control Submission Q Further Cost Benefit Analysis and Prioritisation of Projects Finalise Investment Plan against Drivers and Funding constraints Ongoing engagement with the EPA to maximise environmental benefit within funding constraint 11

12 Water: Compliance Challenge Active Non-Compliance (Approx. Number) Notification RAL BWN Direction EPA Remedial Action List EPA Notifications EPA Directions EPA Audit reports 12

13 Water: Availability Challenge 41% UFW (LGMA 2012) 25% of WSZs are currently operating beyond their design limits Lack of basic infrastructure and resources to manage leakage: DMA setup not complete Inconsistent and inadequate resourcing of active leakage control Visibility of DMA performance Customer Side Leakage Metering programme providing new data source (>140K meters installed) 5-6% of properties experiencing significant leaks First fix policy under consideration Dual benefit in terms of lead non-compliance Rehabilitation contracts on-going 13

14 Waste Water: Compliance Challenge Licenced Discharges 76% of larger urban areas complied with secondary standards in 2012 Lower compliance rates for N and P EPA Prosecutions (Clifden, Killybegs, Bundoran) ECJ Prosecution under UWWT Directive 70 UWWT WWTPs 39 Collection Networks Major Data Challenge Water Framework Directive requiring Good Status by 2015 (with potential to extend to 2021/2027) Requires potential investment of 3-4 billion New EPA licences being issued based on current 2015 WFD commitments Higher standards required under Habitats Directive E.g. Blackwater Valley 14

15 Capital Investment Capital Investment Required Need to ramp up investment from current approx. 300m to address compliance, capacity and capital maintenance deficits. Need to develop pipeline for Available Capital Capital Requirement

16 Urban Waste Water Compliance Strategy Minor Capital Quick Wins ECJ Response Engagement with DECLG and EU towards Partnership Implementation Agreement Deliver Major Capital Projects Collect appropriate data Roadmap for Compliance WFD Engagement Engagement with EPA/ DECLG/ NPWS Development of Catchment Modelling Capability Collaboration on River Basin Planning and Licencing approach 16

17 Minor Capital Programme Example Quick Wins Plants that failed UWWD Standards in which are not overloaded 47 No. WWTP Systematic bottom up data collection and analysis Installation of appropriate monitoring Steps Operational assessment and resolve if possible Optimise and deliver minor capital solution Confirm benefits delivered Estimated cost 3 million to bring 40 WWTP into compliance 17

18 Summary Significant Investment deficit to be addressed Compliance Capacity Asset Risk/ Asset Maintenance Business Efficiencies Through best practice Asset Management: Spending less to achieve more Stewardship of assets to keep in desired state Managing risks not resources Whole systems not their parts Whole life perspective Integrated view of operations & investment Stakeholders fully engaged 18