ASSET MANAGEMENT PLANNING - THEORY AND PRACTICE

In 1988, water undertakers in England and Wales were charged with producing asset management plans as a prelude to privatization. These plans had to provide an auditable statement with respect to the condition and performance of underground assets, with a view to defining and setting priorities for investment requirements. Some water authorities were ill-prepared for producing the required formalized plans, resulting in variable confidence limits being placed on the identified investment requirements. A need existed to refine most plans, which was reinforced by a statutory requirement to update the asset management plans. This paper deals particularly with water distribution systems and provides an insight into the production of asset management plans. A brief review of the current approach used by a certain major water plc, to update and refine their plans, is also included. The contribution of asset management plans to the effective management of distribution network investment and operation in England and Wales should not be underestimated and is equally relevant in Scotland.