Private Sector Participation in Mun WSS

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Government Immovable Assets Management Bill
DBSA Comments
Barry Jackson, DBSA 7 March 2007
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ImmovableAsset Management

• The Bill is an important initiative
• The need for GIAM is self-evident
• Many recent developments in the science of
  asset management
• Need for a systematic approach
• Building the right assets
• Aware of the total cost of providing a service
• Maintaining the value of assets
• Maintaining quality of service.

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Implications of GIAMAfor South Africa

• Range of state-owned assets
• Land, buildings
• Roads, airfields, military bases
• Dams, canals, pipes, treatment works
• Range of capabilities of state entities
• Caution when introducing requirements
• Encourage adoption under conviction rather than
  compulsion (incentives?)
• Aware of dangers of precedents.

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GIAMA as a precedent

• Government Departments
• Provinces

Municipalities of many sizes
Under MFMA?
Parastatals eg SANRAL, ACSA, NWRA, EDIH/REDS
Under PFMA?
Statement of Long-Term Strategy?
Need to consult on possible unintended
consequences for other entities.
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GIAMA as a precedent Notable SA IAM Initiatives

• International Infrastructure Management Manual
  (IIMM)- SA version endorsed by dplg, SALGA and
  IMESA
• dplg and European Union- IAM implementation, best
  practices, tools and training
• Handbook on Managing Community Assets by ASALGA
  now available from DBSA

• Municipal Infrastructure Investment Framework
  (MIIF) dplg and DBSA
• Water Services Infrastructure Asset Management
  Strategy- DWAF
• Development of an Enabling Framework
  forMunicipal Infrastructure in SA by CSIR
  (funded by Parliament)

• Municipal Infrastructure Asset Management
  Towards a National Strategy dplg and DBSA
• CIDB Initiatives Regulations
• GIAMA Bill DPW
• Municipal IAM Guidelines dplg

• IDIP Programme National Treasury
• Audit Standards re Asset Registers -Accountant
  General and Auditor General (Qualified Audits)
• Various Provincial and Local Government
  initiatives eg WC, Johannesburg Metro, Buffalo
  City, Ethekwini

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IAMManuals
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Giving effect to GIAMA

• The Minister -
• Issue regulations subject to consultation
  process Cl.20(2)
• Issue standards prescribe minimum standards
  consultation not required? C.19(2)(3). Must
  involve industry players, stakeholders future
  stakeholders given much weight Cl.10(b)
  guidelines prevail...
• Issue standards prescribe minimum standards -
  begin with approaches which match capability
• Vary according to type, size capacity of
  custodians and users
• May implement programmes to give effect
  substantial budget required and strategic
  approach starting where greatest risk is evident.

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Detailed comments on GIAMA

• Policy statements in legislation? Cl.5(1)(f)(iii)
  eg redistribution of wealth
• User v. Custodian? Clauses 6 -14
• Who will best understand OM needs?
• Who does the costing?
• Decision on surplus disposal?
• Whose performance measuring system takes
  precedence?
• Processes
• Exemptions, sub-delegations, designate as
  custodian (ref DWAF experience)

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DBSA
barry_at_dbsa.org www.dbsa.org