Strategic Infrastructure Asset Planning, Risk Management - Policy consideration for government, MMDAs

Look at Ghana’s infrastructure assets and it becomes apparent that we need several positive shifts in the way we plan, deliver, operate and maintain our infrastructure.

Infrastructure is only as good as the user outcomes it delivers. How we have planned, funded and delivered infrastructure is not achieving best practice.

Each decision to build infrastructure can impact taxpayer and user bills for generations. It is essential we get these decisions right to improve the quality, affordability and access to our infrastructure.

The cost of infrastructure across all sectors is a concern for every Ghanaian. However, people’s perceptions on the scale of infrastructure cost rises do not always align with what they are paying.

Infrastructure costs are regressive and hit lowest income households hardest.

Infrastructure projects are getting larger and increasingly complex and will require new approaches.

How the government makes decisions, selects contract models and handles risk will have significant bearing on the functionality and efficiency of our infrastructure.

Alongside these changes, new demands for sustainability, resilience and security will provide opportunities to achieve better outcomes.

Uncertainty

Looking to the future, we face an unprecedented period of uncertainty. The compounding issues of a changing climate, the re-ordering of the world economy, and increasing political polarisation are reshaping global institutions and norms.

Closer to home, our population is growing and changing, the structure of the economy is shifting, our communities and environment are experiencing weather extremes, and rapid technology change is fundamentally reshaping our day-to-day lives.

As a result, Ghana finds itself at a unique point in its history with significant implications for how we plan for our future infrastructure. Infrastructure is central to our quality of life.

But looking to the future, user needs are evolving, and it is highly likely, in coming decades, our infrastructure will look very different to today.

We need to evolve the way we plan for Ghana’s infrastructure to embrace this uncertainty.

Historically, infrastructure planning has sought to predict future conditions and then provide infrastructure to meet anticipated demand. Today, we require a more robust approach.

Planning

Rather than projecting forward the status quo, our infrastructure planning should set an ambitious vision for the country, anticipate, and adapt to change, manage risk, and deliver infrastructure that works towards – rather than against – the current and future needs of Ghanaians.

The time is right to reconsider how we deliver, operate and maintain infrastructure, and how we can adapt existing networks to our changing user needs.

In other areas, ongoing challenges remain, and new issues have emerged:

• Population growth has become a major point of contention in infrastructure debates. In our largest cities, ageing assets have been put under growing strain, with rising road congestion, and growing demands on social infrastructure, such as health and education etc.
• Energy affordability has also deteriorated over recent years.
• In telecommunications, services have not met the expectations of many users.
• In the water sector, the past years have seen mixed results. While there has been some improvement in some MMDAs, however many areas are suffering from growing water security fears

The good news is that there are many opportunities amid these challenges. Proper infrastructure planning, operations and maintenance could unlock future growth and development, and improve quality of life or productivity beyond the status quo.

This context of uncertainty must form the foundational principle for Ghana’s infrastructure.

Way forward

At a National Policy Summit in Accra on May 17, 2017, the Vice President noted that “Ghana infrastructural asset are not properly recorded, managed and are underutilsed”.

Consequently, we miss several opportunities such as the monetisation of our infrastructural assets – at least at the MMDAs level. An example would be using it as collateral to source for funding.

The first step is to conduct an audit of Ghana’s infrastructure. This will provide the lens through which we can assess the current capacity of our existing infrastructure assets and identify the challenges and opportunities we face in the coming, say 10 to 20 years.

The audit will identify infrastructure planning and decision-making that falls short of consistent best practice.

Additionally, it will also identify the mounting risks for Ghana’s infrastructure from changes in technology, the economy, user preferences and the environment

Stakeholder Involvement

Stakeholders play important role in defining expectations and sustainability of infrastructure asset.

MMDAs must maintain relationships with the government, community, as well as with its elected officials.

Asset planning and risk management spans multiple generations and must include all stakeholders.

The real challenge is the risks that asset management programmes and plans are exposed to without the cooperation of these internal and external stakeholders.

Planning for infrastructure requires input from internal stakeholders, multi-sector partners, and other external stakeholders.

In planning infrastructure assets, MMDAs must identify all stakeholders and their relationship with the asset portfolio.

Not engaging these stakeholders could expose them to significant financial risks such as unrealised returns from underutilised assets, or assets that must be prematurely retired because they cannot comply with changing circumstances.

Social, roads, water infrastructural assets

The challenges and opportunities Ghanaian’s face in accessing affordable, high quality social infrastructure has been a concern in the context of substantial increases in demand for services and facilities as our population grows and ages.

The demands placed on education infrastructure, from childcare and pre-school through to tertiary and vocational levels.

Our parks, green spaces, and some past known community facilities are no more.

Road transport is by far the most important means of moving freight in Ghana and is the sector that requires the greatest consideration.  Roads carry about 95 per cent of passengers and 98 per cent of the country’s freight.

According to a World Bank report, Ghana’s road transport indicators are strong. By almost all measures, they are well ahead of those found among low-income peers and nearing the levels expected of a middle-income country.

But some challenges remain. Road conditions are still problematic. Urban congestion remains a particular problem in the main centers.

Water services in some parts of the country do not meet an acceptable standard. Population growth risk severe challenges to our water infrastructure.

 There are significant barriers and costs for delivering safe and reliable water and wastewater to all Ghanaians.

Without action, these barriers could drive further inequality and undermine progress towards national targets and commitments.

Infrastructure asset policy consideration

Clearly, the Government and MMDAs must improve the framework of how asset is planned, operated, and maintained to deliver sustainable level of service.

While some of the challenges are external, majority are in the purview of government and MMDAs.

One of the tools that can be employed is a strategic asset management policy or regulation as practiced by other countries.

As an example, an asset management regulation will mandate all MMDAs to develop and maintain a life cycle strategic asset management plan that describes among others, the the principles to be followed by the MMDAs in their asset management planning, design, operations, maintenance, and funding.

The writer is Managing Director, Assured Reliability Technologies Ghana Limited.

E-mail: eliasacquah@gmail.com

Physical Asset Management and Performance Improvement Consulting Firm.

He is a certified Asset Management Practitioner and Auditor, Member Institute of Asset Management, UK; Asset Management Council, Australia and the Society of Maintenance and Reliability Professionals, USA.