Managing Infrastructure Assets for Sustainable Development A Handbook for Local and National Governments ������� �� �!" #�"# ���!!�"! �� ��#!"������� ��$�������" �� ���������� �������������"��������$� ����"! ���"����% ��$��� �������� ����������� ��� ����������"&��������� ������ ��� ��� ������� � ��� ������ ��������� ������� ����� ��� ����� � �����������" %���&�����$ �����# �!������� �!���� ��� ��� ������� ��� � � � ���� ������� About UN DESA The Department of Economic and Social Affairsffff of the United Nations Secretariat is a vital inter- face between global policies in the economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it compiles, generates and analyses a wide range of economic, social and environmental data and information on which States Members of the United Nations draw to review common problems and to take stock of policy options; (ii) it facilitates the negotiations of Member States in many intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges; and (iii) it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and, through technical assistance, helps build national capacities. About UNCDF The UN Capital Development Fund makes public and private finance work for the poor in the world’s 47 least developed countries (LDCs). UNCDF offers “last mile” ffff finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyze par- ticipation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local development finance, which capacitates localities through fiscal de- centralization, innovative municipal finance, and structured project finance to drive local eco- nomic expansion and sustainable development; and (3) investment finance, which provides cata- lytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization. For further information, you may contact: United Nations Department of Economic and Social Affairs Financing for Development Office United Nations Secretariat 2 UN Plaza, Room DC2-2170 New York, NY 10017, USA Tel: +1(212) 963-8415| Fax: +1(212) 963-0443 ffdoffice@un.org https://www.un.org/development/desa/financing/ United Nations Capital Development Fund 2 UN Plaza, 26th Floor New York, NY 10017, USA Tel: +1(212) 906-6565 info@uncdf.org https://www.uncdf.org Report production: Editing: Anna Grojec Design: Anna Grojec, Sarah Kenyi, Audaz Group LLC Cover photo of Bogotá, Colombia © Linda Newton. All four part opener photos are also courtesy of Linda Newton. How to cite this publication: United Nations, Managing Infrastructure Assets for Sustainable Development: A handbook for local and national governments (New York, United Nations, 2021), available at https://www.un.org/development/desa/financing/document/un- handbook-infrastructure-asset-management Sales No. E. 20.I.15 ISBN 978-92-1-101433-4 eISBN 978-92-1-005188-0 Disclaimer: The views, opinions and interpretations expressed in this publication are those of the authors and are not necessarily those of the United Nations nor of any of the persons or organizations that contributed to its development. Copyright © United Nations, 2021 All rights reserved. https://www.un.org/development/desa/financing/document/un-handbook-infrastructure-asset-management https://www.un.org/development/desa/financing/document/un-handbook-infrastructure-asset-management v Foreword Welcome to Managing Infrastructure Assets for Sustainable Development: A Hand- book for Local and National Governments. With this publication, we aim to provide practical guidance to local and na- tional governments on how to manage the assets on which people rely every day—the roads they use to get to work, the buildings where they live or attend school, the parks where their children play and the water and sanitation facilities they use to stay healthy. Effective asset management has become as critical as ever across the globe and in the face of mounting pressures, such as limited resources, grow- ing urban populations, shifting patterns of employment and land use, climate-related disruptions and health emergencies, including the COVID-19 pandemic. All of these challenges are felt most acutely in our daily lives as we interact with our built environment and our physical and technical goods and infrastructure. These are our local assets, our common goods. As people turn to government for reliable infrastructure, services and protection, their first point of contact is the village, city or district administration. While most government assets are managed at the local level, national govern- ments often manage critical assets as well, such as long-distance highways, electrical grids and airports. They are also in charge of creating a policy and administrative environment that enables systemic, sustainable asset man- agement at the national and local levels. Done well, local and national asset management efforts not only improve essential service delivery, they also yield positive signals to citizens and public, private, domestic or foreign inves- tors, helping governments to mobilize the resources needed for sustainable development and demonstrating to citizens that their representatives are safe custodians of the public common property. The better governments become at managing their assets and anticipating what they will need, the more resilient they will be. This handbook shows how to improve the reliability and longevity of assets, and how to plan ahead with improved coordination among government and community stakeholders. The handbook draws on the experiences and insights of numerous experts and practitioners from around the world. Authorities in the field within the UN system, multilateral and regional development banks, local government associations, universities and think tanks reviewed and made invaluable contri- butions to the Handbook. In addition, the content draws on the diverse experiences of local governments in the implementation of UN asset management toolkits. The United Nations Department of Economic and Social Affairs and the United Nations Capital Development Fund, through its Local Development Finance team with 25 years' experience supporting local government financial management, collabo- rated with authorities in more than 40 districts, provinces and municipalities in vii About the editors and authors Editors Navid Hanif joined the United Nations Department for Economic and Social Affairs (UNDESA) in 2001. From 2001-2003 he was Senior Policy Adviser in the Division for Sustainable Development and member of the team for the World Summit on Sustainable Development held in Johannesburg in 2002. He later joined the Office of the Under-Secretary General for UNDESA and focused on departmental initiatives in various policy areas. He was appointed as the Chief of Policy Coordination Branch in the office for Economic and Social Council (ECOSOC) support in 2004. In 2005, he was sent on a special assignment as Principal Officer in the Office of the UN Secretary-General and member of the team for the 2005 World Summit. In January 2010, he was appointed as Head of the newly established DESA Strategic Planning Unit. In June 2012, he was appointed Director of the Office for ECOSOC Support and Coordination. In 2018, he was appointed as Director for Financing for Sustainable Development Office. Prior to joining the UN, Mr. Hanif held various assignments in the Ministry of Foreign Affairs of Pakistan, including staff officer to the Foreign Secretary. He was posted to the Permanent Mission to the United Nations in New York in 1995. He holds a Master’s in International Political Economy from Columbia University, New York, and Master’s in English Literature from Government College, Lahore, Pakistan. Caroline Lombardo serves as Chief of the International Tax and Develop- ment Cooperation Branch in the Financing for Sustainable Development Office of the United Nations Department of Economic and Social Affairs. She leads the UN teams that provide policy and capacity building support on tax and domestic resource mobilization and the secretariats to the UN Tax Committee and the Development Cooperation Forum. Ms. Lombardo previ- ously served in the Strategic Planning Unit of UNDESA and had an earlier UN tour in policy planning in the Executive Office of the Secretary-General. She did her post-doctoral fellowship at Yale, where she helped design and launch the Program in Grand Strategy and its multidisciplinary graduate course addressing large-scale, long-term strategic challenges of statecraft, politics and social change. Ms. Lombardo holds a DPhil and MPhil in Inter- national History and Politics from the University of Oxford and Bachelor’s degree in Ethics, Politics & Economics from Yale University. Daniel Platz works in the Financing for Sustainable Development Office of the United Nations Department of Economic and Social Affairs, where he curffff - rently coordinates technical assistance and capacity development work on infrastructure asset management for local and national governments. He has over 20 years of experience with UN intergovernmental processes, research and analytics and technical assistance in support of the implementation of the UN Development Agenda, including the Sustainable Development Goals. He has published widely in the area of development finance, municipal finance and infrastructure finance. Mr. Platz holds a Ph.D. in Economics and an M.A. in Global Political Economy and Finance from The New School University. He received Bachelor degrees in Political Sci- ence and Economics from Goethe University in Frankfurt, Germany. viii Claire Chan is an independent consultant with the United Nations De- partment of Economic and Social Affairs after previously working as an intern in the International Tax and Capacity Development Branch of the Financing for Development Office. She has experience in policy research and analysis through past internships working on post-emergency public health issues with CARE USA and on global cybersecurity and digital tech- nology trends with the Atlantic Council where, as a part-time consultant, she contributed to a strategy paper on 5G networks. Much of Ms. Chan’s project management skills have been honed through coordinating outreach, content and dissemi- nation of this publication. She has a Bachelor of Science in Economics and International Affairs, and a minor degree in Computer Science, from the Georgia Institute of Technology. Jaffer Machano is a Global Programme Manager for Municipal Invest- ment Finance at the United Nations Capital Development Fund (UNCDF). Before UNCDF he was Head of Global Banking Tanzania at Standard Char- tered Bank, Deputy Managing Director at TIB Development Bank, worked for the United Nations in different roles in UNDP and the Peacekeeping Division, the Federal Reserve Bank of New York, Citibank and Barclays Bank. Mr. Machano has worked in Canada, the United States, East Timor and Indonesia. He holds a Master’s degree in International Economic Policy from Columbia University. Dmitry Pozhidaev is the Global Advisor for Local Government Finance at the United Nations Capital Development Fund (UNCDF) and Head of UNCDF Office. He has been working with UNCDF since 2010, guiding local development finance programmes for the public and private sector in many countries in the Africa region. Prior to that, he worked with a number of international financial institutions and private sector companies, such as the World Bank, European Union, Extractive Industries Transparency Initiative and Adam Smith International as a consultant on develop- ment finance, public financial management and local governance in Europe, the Middle East and Southeast Asia. He served as an international municipal administrator in Kosovo, managing the capital municipality of Pristina with an annual budget of €11 million. Mr. Pozhidaev has a doctor-rr ate degree in Development Economics and has authored numerous articles and book chapters on public administration, local development, finance and investment. Suresh Balakrishnan is Regional Team Leader of the United Nations Capital Development Fund’s Local Development Finance Practice for the Asia Pacific. He has been with UNCDF since 2012 and facilitated the in- troduction of a wide range of local development finance interventions across several countries in the region. Mr. Balakrishnan has three decades of experience in local development finance and governance reform, which spans institutional leadership, research, training and consulting. He has worked closely with national and sub-national governments and civil society networks, as well as the Asian Development Bank, Commonwealth Secretariat, United Na- tions Development Programme and the World Bank across Asia and Africa. With a doctoral degree in Management, he led several research studies and contributed to international publications on public administration reform, organizational development and evaluation. ix Lead authors Francis Byabagambi is an experienced public service practitioner. He has worked in local government public service for the last 25 years, serving in different roles in local governments and urban administration, and became ffff the Town Clerk and Chief Executive of a local government. He has worked in various municipalities including Bushenyi, Kasese, Arua and Jinja, giving him a broad understanding of asset management, financial and human resources, procurement and general urban management issues that affect ffff local governments. Mr. Byabagambi led the development and implementa- tion of the Asset Management Diagnostic Tool and AMAPs (chapters 3 and 4) in Uganda and provided substantive inputs to the handbook, in particu- lar, Annex B on local government experiences. Dustin Carey is a Capacity Building Officer with the Federation of Cana- dian Municipalities. After receiving his Master of Climate Change degree, he applied his understanding of climate science to the fields of climate adaptation and natural disaster resilience at the municipal scale. Special- izing in flood mitigation and municipal asset management, Dustin has led national training programs to enable local governments to better respond to climate risk. Having managed the development of a guide on integrat- ing climate change considerations into municipal asset management, he is a recognized national expert for those seeking information on climate change adaptation and practical resilience strategies. He is the Secretariat co-lead of the Municipal Climate Services Col- laborative. Mr. Carey is the lead author of Chapter 6, Improving climate resilience. Mitchell Cook works on integrating low-carbon, climate-resilient solu-k tions in local infrastructure planning, urban and regional development, and national economic policy in the Americas, Africa and Asia. He has published more than 25 articles, chapters, guidance and reports on local services, infrastructure finance and resilience for corporations, govern- ments and international development agencies including the World Bank, the Asian Development Bank, the Government of Ethiopia, the Green Cli- mate Fund, the Global Commission on Adaptation, the Gates Foundation, the United Nations and Carnival Corporation. He holds a Ph.D. in Urban and Regional Planning from the Massachusetts Institute of Technology (MIT). Mr. Cook is the lead author of Chapter 7, Strengthening public health emergency preparedness and response. Catherine Dallaire is an asset management specialist with over 13 years of public and private sector experience. She has advised clients’ senior man- agement on a variety of complex asset management initiatives, helping them improve the defensibility of infrastructure plans and management strategies. These initiatives include comprehensive service reviews, policy and strategy development, life cycle assessments, investment optimization and program evaluation. Ms. Dallaire has also implemented municipal asset management capacity development initiatives for provincial and national associations. She currently applies her asset management experience in advising federal govern- ment project teams in the evaluation of alternative procurement models, such as public private x partnerships, and in teaching infrastructure management within the Infrastructure Protection and International Security Master’s program at Carleton University in Ottawa, Canada. Ms. Dallaire is the lead author of Chapter 8, Establishing and sustaining a national enabling environment. Mohan P. Dhakal, a Public Finance Management Expert in Nepal, has many years of experience working with projects managed by various gov- ernment ministries, departments and agencies. He has also been involved in national and international assignments focusing on programme finance and public finance management. During 2015 to 2019, he supported the Ministry of Federal Affairs and General Administration on their local gover-ffff nance programme in Nepal. Mr. Dhakal has served as an International UN Volunteer in Sierra Leone and Bangladesh and holds an MBA in Finance from Tribhuvan University, Nepal. He led the development and implementation of the Asset Man- agement Diagnostic Tool and AMAPs in Nepal and provided substantive inputs to the handbook, in particular, Annex B on local government experiences. Vladimir Grozdev has a Master’s degree in Civil Engineering and works in public infrastructure investment projects as a Civil Engineering Consultant and Senior Project Manager since 1985. He has expertise in the identifi- cation, development, implementation and evaluation of infrastructure projects and institutional development programs and gained experience as a Senior Consultant at Booz Allen & Hamilton, Chemonics International and HKA Engineering in South Eastern Europe and Africa. Since 2001, Mr. Groz- dev has been the owner of a consulting company. As Programme Evaluator, he has provided recommendations for strengthening capacities and implementation of Integrated Asset Management in more than 90 Public Water Utilities in Southeastern Europe. Mr. Grozdev is the lead author of Chapter 5, Capturing and utilizing the right data and information. Bidhan Krishna Das is a Municipal Asset Management and Local Devel- opment Finance Expert. He started his United Nations career in the Local Development Finance Practice Area (LDFPA) at the United Nations Capital Development Fund (UNCDF). Before joining the United Nations, he worked as a business executive for several private companies in Bangladesh and Germany. He earned a Master’s degree in Economics from Shahjalal Uni- versity of Science & Technology, Bangladesh, and another Master’s degree in Economics and Finance from Rhine-Waal University of Applied Sciences, Germany. Mr. Das led the development and implementation of the Asset Management Diagnostic Tool and AMAPs in Bangladesh and provided substantive inputs to the handbook, in particular, Annex B on local government experiences. Siasa Mzenzi is a Senior Lecturer in Accounting at the Department of Accounting, University of Dar es Salaam Business School (UDBS), Univer-rr sity of Dar es Salaam, Tanzania. He has a Bachelor’s degree of Commerce (B.Com.) Accounting and Master’s in Business Administration (MBA), both from University of Dar es Salaam, Tanzania, as well as a Doctor of Philoso- phy (Ph.D.) from University of Southampton, United Kingdom. Mr. Mzenzi is a renowned researcher and professional consultant on public sector accountability and governance. He led the development and implementa- tion of the Asset Management Diagnostic Tool and AMAPs in Tanzania and provided substantive xi inputs to the handbook, in particular, Annex B on local government experiences. Linda Newton (CD, Ph.D., FCSCE, PMP) has over 35 years of experience in physical asset management. This includes managing infrastructure for the Canadian Department of National Defence, post-doctoral work at the National Research Council Institute for Research in Construction, and leading the Real Property Management service line at Defence Construc- tion Canada. She is an Adjunct Professor in the Department of Civil and Environmental Engineering at Carleton University and now has her own consulting firm, Linda Newton Consulting, with a focus on strategic asset management. Ms. Newton is a Fellow of the Canadian Society for Civil En- gineering (FCSCE) and a member of the Institute of Asset Management (MIAM). In her spare time, she’s a Rotarian, an ambassador for parkrun Canada and a member of the Board of Directors of the Canada-Africa Community Health Alliance (CACHA). She is the lead author of the four Fundamen- tals chapters and Annex A: Asset Management Action Plan (AMAP) template. Bishnu Puri has more than 35 years' professional experience with govern- ments, bilateral agencies, UNCDF, UNDP and UNDESA. He has provided advisory services at the international level—in Afghanistan, Bangladesh, Somalia, Solomon Island, Sudan, Myanmar and Tuvalu. He has worked as a project manager and coordinated projects and programmes with NGOs, CBOs, governments and UN and bilateral agencies. Bishnu has extensive expertise in Local Development Finance, public financial management and results-based management. He has managed a wide range of projects with high policy influence and resource mobilization. He is currently working for PricewaterhouseCoo- pers as a Team Leader with the Swiss Agency for Development and Cooperation-funded Provincial Support Programme in Province 1 of Nepal. He holds a Master’s in Development Management from the University of Philippines and a Master’s in Economics from Tribhuvan University in Nepal. Contributing authors Iftekhar Ahmed is the Lead Infrastructure Specialist of the National Resilience Programme, United Nations Office for Project Services (UNOPS) Bangladesh Office. He is one of the key contributors to strengthen the capacity of the Government of Bangladesh to achieve resilience outcomes through designing and constructing risk-informed infrastructure systems, including establishment of an overarching asset management system in the Local Government Engineering Department. Before joining UNOPS he served the Government of Bangladesh for over 35 years in various capacities in the field of rural and urban development. Serge Allou is a special advisor to the United Cities and Local Governments (UCLG) World Secretariat, seconded by Expertise France on behalf of the French Ministry of Foreign Affairs. Within the Secretariat, his primary respon- sibility is the implementation of a renewed UCLG Strategy on Local Finance, including the World Observatory on Subnational Government Finance and Investment—a joint initiative of the UCLG, the OECD and the International Municipal Investment Fund—in partnership with UNCDF and FMDV. xii Penny Burns, infrastructure economist, was instrumental in setting the stage for the development of asset management in Australia in the mid-1980s. She is now writing a social history of how the ideas in asset management arose, but her main interest, as Chair of Talking Infrastruc- ture, is in preparing infrastructure for a changing future. Sandra Diaz is an engineer who has contributed to the development of resilient infrastructure through complex project management and strate- gic planning. Ms. Diaz has worked for the United Nations Office for Project Services (UNOPS) since 2017 in Uganda as Head of Country Office, in Ban- gladesh as Team Leader of the National Resilience Program, and in Costa Rica and the Caribbean as Head of Programmes. She has experience in humanitarian crises and long-term development interventions and previ- ously worked for the private sector and for INGOs. Josh Drake is an Urban Economic Development Specialist at the Cities Alliance hosted by United Nations Office for Project Services (UNOPS) and manages the Joint Work Programme on Fostering Equitable Economic Growth in Cities (JWP-EEG). He has professional experience in international development in Australia, Asia, Middle East and Africa in urban economic policy, land use planning, foreign investment policy and local economic development. Jean-François Habeau is the Executive Director of the Global Fund for Cities Development (FMDV), an international network of local govern- ments providing solutions to finance and investing in a sustainable and integrated urban development. With his 15 years of experience working with central and local governments from all over the world, he acquired an extensive expertise in local finance and investing and strong skills in work- ing with public entities, donors and investors. Before joining FMDV, he has worked for local governments including the city of Antananarivo and the region of Île-de-France. Sarah Hui Li is a consulting Urban Development Specialist at the Asian Development Bank since 2018. Her research and project topics include sustainable urban finance, smart technologies for urban development, in- novative and integrated solutions for creating livable cities. Sarah holds a Master’s degree in Public Policy from Lee Kuan Yew School of Public Policy, National University of Singapore, with a specialization in economic and development policy. She also co-authored the Urban Finance chapter of the UN-ESCAP Future of Asian and Pacific Cities 2019 Report. Richard Hunt is a Senior Infrastructure Adviser on retainer for the United Nations Office for Project Services (UNOPS) engineering advisory panel, with 30 years of experience in the development of infrastructure in the water sector around the world. His experience includes post-disaster infra- structure and environmental impact assessments as well as climate change adaptation and resilience planning for infrastructure systems. xiii Olga Kaganova, Ph.D., is an internationally recognized expert on gov- ernmental asset management, with global expertise and a distinctively multi-disciplinary approach. She has worked in 35 countries on five conti- nents, on projects advising central and local governments on a wide range of strategic asset management issues and practices. The dozens of cities she has advised include Bishkek, Kyrgyzstan; Laibin City, China; Kuwait City, Kuwait; Riyadh, Saudi Arabia; Ulaanbaatar, Mongolia; and Warsaw, Poland. Ms. Kaganova has published three books, numerous book chap- ters and articles, and has served as strategic advisor for the Canadian National Executive Forum on Public Property. Marco Kamiya is a Senior Economist at UN-Habitat, working with the Knowledge & Innovation Branch. He publishes extensively on economic issues, innovation and finance. Sergio Lacambra is Principal Specialist in Disaster Risk Management at the Inter-American Development Bank (IDB), with 25 years of professional ex- perience in Latin America and the Caribbean. He currently coordinates the Disaster Risk Management Cluster in the Environment, Rural Development and Disaster Risk Management Division at the IDB. He is the co-author of the Disaster and Climate Change Risk Assessment Methodology that the IDB applies to all its infrastructure projects to ensure their resilience. Mr. Lacambra holds a Master’s Degree in Economics from the University of London, an Erasmus Diploma in Economics from the University of Bristol (UK), and an Economics Degree from the University of Zaragoza (Spain). Gundula Löffler is a research fellow at ODI specializing in institutional and governance reforms in the areas of decentralization, local and urban finance and taxation in developing countries. Prior to joining ODI, Ms. Löf-ff fler worked as a researcher on fiscal decentralization and local taxation in Rwanda and other African countries. She also worked as a development adviser for the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in Egypt, Syria and Germany on participatory development, decen- tralization, urban management and slum upgrading. Ms. Löffler holds a Ph.D. in Public Administration and Development from NYU Wagner. Diana Lopez Caramazana is Partnership Specialist on cities and urban- ization at UNDP. She has more than 20 years’ experience in the United Nations systems supporting local governments, governance and public management innovation. She previously worked as Head of the Local Governments and Decentralization Unit of UN-Habitat and spent eight years working on local development issues within the International Labour Organization. xiv Kerry McGovern is specialized in whole-of-government governance and works with Auditors-General and public sector central agencies to audit, identify and build effective asset,ffff financial and performance management systems that enable the executive to deliver valued public services to their people. Her work includes building whole-of-government frameworks to identify, manage, plan and audit the service from public sector assets. Babati Mokgethi is a Town Planner and Urban Designer, currently a Senior Urban Development Officer in the Urban Development Division at the African Development Bank, a newly established division dedicated to driv- ing the Bank’s vision for African cities, including urban planning, policy and strategy, infrastructure, finance and governance. Previously, he worked for both local and central governments, with over 11 years of achievements and demonstrated success in master planning, design, spatial planning, development control, stakeholder engagement and management in urban and regional planning in Botswana. Geoffrey Morgan is an Infrastructure Sustainability and Resilience Spe- cialist at United Nations Office for Project Services (UNOPS), where he helps governments improve the way infrastructure is planned, delivered and managed to support the achievement of local, national and global agendas. He has a background in engineering and social sciences, with experience working on projects in Africa, Asia, the Middle East and Latin America. Mathilde Penard is a Local Finance Officer at United Cities and Local Governments (UCLG) World Secretariat. She supports the implementation of UCLG’s Strategy on Localising Financing for Sustainable Urbanisation in three main areas: advocacy, experience sharing and learning and opera- tional work. She holds a M.A. in Project Management, Cooperation and Development in Latin America. Aldrin Plaza is the Urban Development Officer of the Sector Advisory Service Cluster for the Urban Sector Group (SDSC-URB). He is in charge of designing and implementing training programs for ADB staff and DMCsff on cross-cutting urban development topics and provides sector analytical support to project design and development in ADB operations. He is a Me- chanical Engineer and Urban Planner with more than 22 years of combined experience in urban and regional planning, safeguards, project develop- ment and detailed engineering design. xv Manoj Sharma is the Chief of Urban Sector Group, Sustainable Develop- ment and Climate Change Department at the Asian Development Bank (ADB). He is leading ADB’s efforts on ‘Making Cities More Livable’ following a cross-sector and cross-thematic approach of providing integrated solu- tions. Mr. Sharma has 28 years of experience working with the ADB and the Government of India. He has led multi-sector teams for designing and implementing complex and innovative projects for urban infrastructure and economic corridors development in several countries in Asia. He has also supported the strategic development of the urban, water and indus- trial sectors at ADB and the countries in Asia. Daniela Zuloaga works on disaster and climate change risk manage- ment at the Inter-American Development Bank (IDB), where she is part of the Community of Practice on Resilience. She also works as an operations specialist incorporating disaster and climate change risk considerations in projects, and co-authored the Disaster and Climate Change Risk Assess- ment Methodology. Daniela is a Civil Engineer from the Universidad de los Andes in Colombia and holds a MSc. in Civil Engineering from the Illinois Institute of Technology in the USA. Brian H. Roberts is the director of a small Australian company, Urban Frontiers, and an Emeritus Professor at the University of Canberra, Austra- lia. He has an extensive career over 40 years working with international development agencies in Africa, Asia, Latin America and the Pacific, academia and governments, and is the author of several books and publi- cations on secondary cities. xvii Acknowledgements This handbook is the fruit of collaboration among more individuals and in- stitutions than we can acknowledge in detail here. We thank all who gave so willingly of their time and expertise. First and foremost, we acknowledge the invaluable guidance and support of our respective leadership, in particular: Mr. Liu Zhenmin, Under-Secretary- General, United Nations Department of Economics and Social Affairs (UN DESA), and Ms. Judith Karl, Executive Secretary, United Nations Capital Development Fund (UNCDF). Within the UN system, we thank our entire staff at the Financing for Sustainable Development Office, in particular: Dominika Halka (now at evolvevf), Harry Tonino (now at OECD), Maria Cecilia de Azevedo Sodre, Elena Belletti, Tim Hilger, Sheilah Trotta, Anika Leufen, Manuel Castano and Luis Fernando Pineda Domínguez. We also appreciate the important contributions of our colleagues at UNCDF, in particular: Abdulaziz Alsaffar, Pragyan Joshi, Stella Lyatuu and Joel Mundua. We would like to thank Grete Faremo, Under-Secretary-General and Executive Director of the United Nations Office for Project Services for her support to this fruitful interagency collaboration in developing this technical guidance document. We owe our thanks in particular to Geoffrey Morgan, Richard Hunt, Iftekhar Ahmed, Steven Crosskey, Sandra Diaz and Stephan Kohler for contributing material, reviewing content and/or providing information and advice. We look forward to our continued partnership on infrastructure asset management. We also extend our sincere appreciation to our colleagues in the Capac- ity Development Programme Management Office, UN DESA— Haitian Lu, Head of Office; Juergen Gafke, Elie Hobeika and Jennifer Serunjogi—and to Adriana Alberti from the Division for Public Institutions and Digital Govern- ment, UN DESA. Francis Byabagambi, Dustin Carey, Mitchell Cook, Catherine Dallaire, Mohan Prasad Dhakal, Vladimir Grozdev, Bidhan Krishna Das, Siasa Mzenzi, Linda Newton, and Bishnu Puri served as lead authors of the chapters. Each author is highlighted on the About the editors and authors page. Thanks to each and every one of you for your commitment to pushing forward the work on infra- structure asset management! Oliver Nachevski of the International Water Association, Christian Chen of Asset Management Ontario and Katie Geoghegan of the Canadian Network of Asset Managers graciously provided support to the lead authors in preparing spe- cific chapters. This handbook would not be the product it is without the engagement of a wide network of stakeholders, whom we consider valued partners. We thank the following individuals for generously contributing their time and expertise xviii to the handbook: Marco Kamiya (UN-Habitat); Diana Lopez Caramazana (United Nations Development Programme); Diego Aulestia and Bruno Lana (United Nations Economic Commission for Latin America and the Caribbean); Curt Garrigan (United Nations Economic and Social Commission for Asia and the Pacific); Manoj Sharma, Sarah Hui Li, Aldrin B. Plaza and Lindy Lois M. Gamolo (Asian Development Bank); Alice Nabalamba, Babati Mokgethi, Victoria Flattau, Sarah Ovuike, and Wa-Kyendo Mumina (African Development Bank); Sergio Lacambra Avuso, Daniela Zuloaga Romero, Maricarmen Esquivel Gallegos and Doris Melissa Barandiaran Salcedo (Inter-American Development Bank); Serdar Yilmaz, Kai Kaiser, Rama Krishnan Venkateswaran and Syed Khaled Ahsan (World Bank); Serge Allou, Edgardo Bilsky and Mathilde Penard (United Cities and Local Governments); Jean-François Habeau, Luc Aldon and Diane Pialucha (Global Fund for Cities Development); Josh Drake, Brian Roberts and Rene Peter Hohmann (Cities Alliance); Gundula Löffler (Overseas Development Institute); Penny Burns (Talking Infrastructure); Kerry McGovern (McGovern and Associates); Olga Kaganova; Rowan Palmer; and Ajith Parlikad (University of Cambridge). Thank you for your outstanding contributions! We are grateful to Isabelle Delalex and the following students from Columbia University who contributed to this handbook as part of their Capstone project: Jia Fan, Verheije Jade Jolene, Jialiang Wei, Min Kyunghyun, Tahir Shaheera, Chen Zeyao and Wang William. Sincere thanks go to Anna Grojec for designing this publication. xix Contents Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v About the editors and authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxvii Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxiii Part 1: Reader's tools Abbreviations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxvii Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xli Part 2: Fundamentals Chapter 1: Basic tenets of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 2: The dynamics of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Chapter 3: Assessing asset management needs and capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Chapter 4: Taking action with asset management action plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Part 3: In focus Chapter 5: Capturing and utilizing the right data and information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Chapter 6: Improving climate resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Chapter 7: Strengthening public health emergency preparedness and response . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Chapter 8: Establishing and sustaining a national enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Part 4: Annexes Annex A: Asset Management Action Plan (AMAP) template . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Annex B: Local government experiences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Annex C: UN system capacity development support for life cycle asset management . . . . . . . . . . . . . . . . . . . . . . . 363 xx Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v About the editors and authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxvii Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxiii Part 1: Reader's tools Abbreviations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxvii Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xli Part 2: Fundamentals Chapter 1: Basic tenets of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 What is asset management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.1.1 Basic tenets of government asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.1.2 Benefits and challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.1.2.1 Benefits of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.1.2.2 Challenges of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.1.3 Hazard and risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.1.3.1 Climate change impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.1.3.2 Public health emergencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.2 The asset life cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.2.1 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.2.2 Acquire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.3 Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.4 Dispose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.3 Asset information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Chapter 2: The dynamics of asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.1 The big picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.1.1 Legislative framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2.1.2 Policy framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 2.1.3 National strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 2.2 The asset management framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 2.2.1 Asset management policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.2.2 Strategic asset management plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2.2.2.1 Asset management strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2.2.2.2 Asset management plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.2.2.3 Together in a SAMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.2.2.4 Supporting policies and procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 xxi 2.2.2.5 Asset management action plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 2.2.3 Portfolio management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 2.3 Demand management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2.3.1 Current and future demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2.3.2 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 2.3.3 Level of service (LOS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2.4 Life cycle management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2.4.1 Life cycle analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2.4.2 Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2.4.3 Capital planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 2.4.4 Decision support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 2.5 Financial management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 2.5.1 Financial policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 2.5.2 Financial analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 2.5.3 Financial reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 2.5.4 Investment planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 2.5.5 Asset valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 2.6 Asset operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 2.6.1 Operational planning and delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 2.6.2 Setting goals and performance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 2.6.3 Measuring performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 2.6.4 Monitoring performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 2.7 Organizational factors that enable asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 2.7.1 Human factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 2.7.2 Technological factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 2.8 International standards and guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 2.8.1 ISO standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 2.8.1.1 ISO 5500x series of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 2.8.2 International infrastructure management manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 2.8.3 Communities of practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Chapter 3: Assessing asset management needs and capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 3.1 About the UN Diagnostic Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 3.1.2 General assessment process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 3.1.3 Stakeholder consultation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 3.2 Part 1—Self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 3.3 Part 2— On-site assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 3.3.1 Understanding and defining requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 3.3.2 Life cycle decision-making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 3.3.3 Asset management enablers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 3.3.4 Conducting interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 xxii 3.3.5 Documenting responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 3.4 Part 3 — Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 3.5 Part 3 — Recommending interventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 3.6 Preparing an asset management profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Chapter 4: Taking action with asset management action plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 4.1 What is an asset management action plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 4.1.1 How does an asset management action plan help? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 4.1.2 Developing your asset management action plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 4.1.3 Getting started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 4.2 Asset management action plan introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 4.2.1 Assumptions and constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 4.3 Step 1: Establish a national or local asset management framework or policy . . . . . . . . . . . . . . . . 130 4.4 Step 2: Priorities, stakeholders and goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 4.4.1 Identifying priority assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 4.4.2 Identifying stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 4.4.3 Setting performance goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 4.5 Step 3: Review current methods and technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 4.6 Step 4: Identifying areas for improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 4.6.1 Gap analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 4.6.2 Identifying actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 4.7 Finalizing your action plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 4.7.1 Actions and resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 4.7.2 Prioritized action plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 4.8 Follow-up and review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Part 3: In focus Chapter 5: Capturing and utilizing the right data and information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 5.2 The benefits of good asset data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 5.2.1 Data for prioritizing critical assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 5.3 Building the foundation of an efficient asset information system . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 5.3.1 Assemble an asset management information team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 5.3.1.1 The champion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 5.3.1.2 Team members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 5.3.2 Establish the asset register hierarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 5.3.2.1 Information roll-up and information roll-down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 5.3.2.2 Hierarchical structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 5.3.2.3 Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 5.3.3 Plan data collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 xxiii 5.3.3.1 Location data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 5.3.3.2 Asset condition data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 5.3.3.3 Asset performance data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 5.3.3.4 Maintenance data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 5.3.3.5 Financial data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 5.3.3.6 Where to collect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 5.3.4 Collect data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 5.3.5 Validate your data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 5.3.6 Create your asset register database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 5.3.7 Review, maintain and update data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 5.4 Beyond the basic database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 5.4.1 Key performance indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 5.4.2 Information technology tools for asset management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Chapter 6: Improving climate resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 6.1 Benefits and challenges of climate-resilient asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 6.2 Understanding climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 6.3 Climate and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 6.3.1 Climate change hazards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 6.3.2 The impacts of climate change on infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 6.3.3 Natural infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 6.4 Focus on what is important . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 6.5 Climate risk assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 6.5.1 Hazard identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 6.5.2 Climate impact statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 6.5.3 Vulnerability assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 6.5.4 Risk assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 6.5.5 Strategic evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 6.6 Responding to climate risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 6.6.1 Non-capital interventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 6.6.2 New or retrofitted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 6.6.3 Low-carbon resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 6.6.4 Building back better . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 6.7 Putting climate-resilient asset management into practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 6.7.1 Creating a climate-resilient asset management action plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 6.7.2 Making the economic case for climate resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 6.8 How climate-resilient asset management enables disaster risk reduction . . . . . . . . . . . . . . . . . . . 246 Chapter 7: Strengthening public health emergency preparedness and response . . . . . . . . . . . . . . . . . . . 257 7.1 Strengthening infectious disease preparedness in government asset management systems 260 7.1.1 Step 1: Make the case for disease preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 xxiv 7.1.2 Step 2: Specify roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 7.1.3 Step 3: Understand asset data management needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 7.1.4 Step 4: Develop emergency operations plans and procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 7.1.5 Step 5: Train for operational readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 7.1.6 Step 6: Build a public health emergency asset portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 7.2 Mobilizing asset management activities to avoid a public health disaster . . . . . . . . . . . . . . . . . . . 272 7.2.1 Sound decision-making amidst uncertainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 7.2.1.1 Using asset information for rapid risk assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 7.2.1.2 Preventing critical asset failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 7.2.2 Implementing the asset response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 7.2.2.1 The purpose of your emergency response asset management action plan . . . . . . . . . . . . . . . . . 278 7.2.2.2 Updating emergency stakeholders, roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 7.2.2.3 Including transmission risk information in procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 7.2.2.4 Documenting emergency performance goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 7.2.3 Proactive operational planning to contain outbreaks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 7.2.3.1 Ensuring responses are consistent with risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 7.3 Including local assets in social and economic recovery programs . . . . . . . . . . . . . . . . . . . . . . . . . . 282 7.3.1 Revisiting the asset management framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 7.3.2 Tactical asset planning to build back better . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 7.3.3 Revising investment and funding plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 7.4 Additional entry points for disease outbreak-resilient asset management . . . . . . . . . . . . . . . . . . 290 7.4.1 Engage communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 7.4.2 Connect public health to climate resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 7.4.3 Influence the enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Chapter 8: Establishing and sustaining a national enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . 293 8.1 Balancing central and local responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 8.1.1 The role of central governments in asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 8.1.2 Direct and indirect support for local asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 8.2 Designing an enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 8.2.1 Underlying goals of and practical approaches to central government support . . . . . . . . . . . . . . . . . . . . . 301 8.2.2 Assigning budgeting authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 8.2.3 The elements of success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 8.2.3.1 Align funding incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 8.2.3.2 Involve external stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 8.2.3.3 Keep asset management multidisciplinary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 8.2.3.4 Make asset management accessible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 8.3 Establishing the enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 8.3.1 Build commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 8.3.1.1 Establishing central government support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 8.3.2 Develop the enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 xxv 8.3.2.1 Exploring the issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 8.3.2.2 Consulting local governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 8.3.2.3 Proposing an approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 8.3.2.4 Consulting again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 8.3.2.5 Implementing the programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 8.3.3 Sustain the enabling environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 8.3.3.1 Sustaining political support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 8.3.3.2 Sustaining momentum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 8.3.3.3 Sustaining individual and group interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Part 4: Annexes Annex A: Asset Management Action Plan (AMAP) template . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Purpose of an AMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Assumptions and constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Section 1— Local government asset management policy framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Section 2— Priority assets, stakeholders and performance goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Section 2a — Identifying priority assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Section 2b —Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Section 2c—Setting performance goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Section 2d—Active stakeholders for priority assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Section 3 — Current asset management methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Section 4 — Gap analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Section 5 —Action plan (addressing the gaps) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Follow up and review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Annex B: Local government experiences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Insights from the application of the Diagnostic Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Understanding and defining requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 1. Asset inventory data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 2. Asset performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 3. Levels of service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 4. Demand forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 Life cycle decision-making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 5. Decision-making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 6. Operational planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 7. Capital planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 8. Financial planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 xxvi 9. Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Asset management enablers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 10. Asset management leadership and teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 11. Asset management policy and process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 12. Asset management information systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 13. Service procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 14. Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Insights on the design and implementation of AMAPs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Organizational factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Data collection and analysis for improved asset performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Annex C: UN system capacity development support for life cycle asset management . . . . . . . . . . . . . . . 363 xxvii Executive summary Public infrastructure assets are the foundation of national and local economies. They provide essential services to our citizens yet they are often mismanaged. This Handbook provides local and national governments with a set of practical tools to improve infrastructure asset management. This includes guidance on how to adapt these tools to the socioeconomic and environmental challenges of our time. The first four chapters present the basic frame- work for asset management and field-tested tools for assessing needs and taking action. The remaining four chapters build on this foundation and show how governments can expand on these tools to develop informa- tion systems, respond to crisis situations and establish an enabling environment for comprehensive and sustainable asset manage- ment at the local and national levels. Chapter 1 introduces the reader to the fun- damental principles of infrastructure asset management and demonstrates its key role in more reliable, equitable and inclusive delivery of essential public services, for present and future generations. Effective asset manage- ment enables governments to increase their financial viability, creditworthiness and public trust and confidence by anticipating future costs, demonstrating financial responsibility over costly assets and enhancing the account- ability and transparency of government. This first chapter presents the case for life cycle asset management. Often, governments place too much emphasis on the construction or ac- quisition of assets at the expense of planning, use and maintenance. This jeopardizes the sustainability of a project and risks undermin- ing the impact of the initial investment, to the detriment of those it was meant to serve. The disposal of assets can also incur significant costs. When assets are not disposed of in a timely and efficient manner, they can deterio- rate rapidly and drain local resources. Key takeaways � Asset management allows governments to maximize both the financial and the service value of physical assets, to the benefit of communities. � A critical first step in the asset management journey is for governments to take stock of the assets they own and/or manage. Answering the ‘six whats’ will guide gov- ernments toward sound decisions that prioritize critical assets within a broader asset portfolio. � Assets have to be managed adequately over their entire life cycles to ensure that initial invest- ments in new infrastructure are sus- tained for present and future generations. Each phase of an asset's life cycle (planning, acquisition, use and disposal) requires poli- cies and actions that draw on a unique set of human, material and financial resources. Chapter 2 shows the reader how to de- velop a simple framework for asset management. This comprises the national and local plans, policies and strategy that articulate what is to be done and why. To meet their objectives, governments should address demand, life cycle and financial considerations—the three pillars of asset management. Guidance on risk management, as part of the life cycle discussion, helps the reader evaluate the likelihood and conse- quence of risk and, on that basis, make plans for the most critical assets. Governments should strive for the right combination of people, resources and technol- ogy needed to deliver services effectively at minimum long-term cost. There must be clear and effective linkages throughout the asset management system, e.g. regular reporting between senior staff and government and compatibility across IT frameworks. In addi- tion, the asset management office or team, xxviii led by an ‘asset management champion’, must have political support and be visible to other parts of the local government and to external stakeholders. Key takeaways y Asset management must be embedded in a framework based on clear principles and objectives that reflect community needs and national development priori- ties. Each pillar of the asset management framework (demand, life cycle and financial management) deserves equal attention by governments seeking to design and imple- ment policies and strategies that will make infrastructure investments go further. y Asset management must follow a portfolio approach that maximizes the benefit and value of an entire collection of assets. Grow- ing interdependency among infrastructure systems deepens the need for governments to weigh long-term trade-offs and risks when making decisions. y Designating an ‘asset management champi- on’ is necessary to lead improvement efforts, increase visibility and ensure there is political commitment to sustain asset management. Good asset management involves a change in the organizational culture over time. Chapter 3 introduces the UN/DESA-UNCDF Asset Management Diagnostic Tool. Readers are guided through the application of the tool, which helps them recognize the importance and value of taking incremental steps to im- prove asset management. The tool consists of three parts. Part 1 is an organizational self-assessment of goals, assets and challenges. Part 2 is an on-site assess- ment, during which an assessment team visits and interviews operations staff and other key stakeholders using a specially designed ques- tionnaire. In Part 3, interviewees’ responses are evaluated to determine strengths, weaknesses and areas of interest for asset management coaching and education. At the end, the assessment team provides the organization with an ‘Asset Management Profile’ indicating recommended interventions and next steps as the basis for more action-oriented strategies and plans. Since its initial pilot in 2017, the tool has been refined several times to ensure it is effective in raising awareness and assisting govern- ments in improving their asset management. It is available as an Excel® spreadsheet at https://www.un.org/development/ desa/financing/capacity-development/ topics/infrastructure-asset-management/ pilot-project). Key takeaways y A successful start to asset management requires a comprehensive assessment of current needs and challenges. The UN/ DESA-UNCDF Asset Management Diagnos- tic Tool offers a simple way to do this. y The three-part assessment takes into consideration the many factors and stake- holders involved in asset management. An evaluation against set criteria (defin- ing ‘Basic’, ‘Elementary’, ‘Progressing’ and ‘Advanced’ levels) results in a summary of recommended areas for policy intervention. y The main aim of the Diagnostic Tool is to measure and raise governments’ awareness of asset management techniques. It is only the first step towards better asset manage- ment and should be followed by a concrete plan of action. Chapter 4 covers how to design an Asset Mangement Action Plan (AMAP)—a tool to compare current and target scores on asset management knowledge, practice and docu- mentation, as well as to identify gaps and actions to close them. An AMAP is specially de- signed to help a local government or agency identify how and where to invest funds to improve a priority asset in an optimal manner. While the Diagnostic Tool measures asset management awareness within government, https://www.un.org/development/desa/financing/capacity-development/topics/infrastructure-asset-manag https://www.un.org/development/desa/financing/capacity-development/topics/infrastructure-asset-manag https://www.un.org/development/desa/financing/capacity-development/topics/infrastructure-asset-manag https://www.un.org/development/desa/financing/capacity-development/topics/infrastructure-asset-manag xxix the AMAP process goes a step further by call- ing to action the human, financial and material resources needed to make substantive change in asset management practices. In design- ing an AMAP, teams assign focal points and set deadlines to keep everyone on track and accountable. Key takeaways y Governments can use the UN/DESA-UNCDF Asset Management Action Plan (AMAP) to lay out a clear and comprehensive map of actions and measures to improve the per- formance of priority assets. y Creating an AMAP entails a series of steps, including stakeholder analysis, performance projections, gap assessment and corrective actions, to ensure follow-through and sus- tainability of improvement efforts. y Having AMAPs in place for priority assets is an indication of a transparent and finan- cially responsible government and can help attract additional public and private invest- ment in sustainable development. Chapter 5 argues that capturing and utilizing the right data and information is the founda- tion of effective asset management. It guides readers through the development of an asset register database, which starts with assembling a team of personnel with the technical know- how and means to collect data. Even once a database is established, the asset management team needs to keep it relevant, up to date and easy to use. A periodic evaluation of the data- base can ensure that the information provided continues to meet the needs of technical per- sonnel, government officials, decision-makers and the asset management team. Building on lessons from previous chapters, Chapter 5 emphasizes the link between adequate data collection and the strong per- formance of critical assets. A well-structured database with key information about, for instance, asset condition and valuation is vital to making informed decisions that will impact delivery of basic services. These decisions will also shape government’s ability to attract and manage new infrastructure investments. Key takeaways y A systematic, methodical approach to data collection will result in a more effective and robust asset management information system that delivers reliable information necessary for sound decision-making and, ultimately, for improved service performance. y Having adequate data on the location, condition, performance and finances of assets allows governments to anticipate the resources that need to be set aside for repair, renewal and replacement over the long term, particularly for critical assets. y Ensuring the accuracy, quality and quantity of asset information is a collective effort. However, the costs of collecting, validating and maintaining data should not exceed the value of information. Chapter 6 makes the case for climate-resilient asset management. Cli- mate change causes not only environmental degradation but also potential loss of life, de- struction of infrastructure and disruption to key services. Asset management must factor in climate concerns if it is to support sustain- able and equitable development in the face of these disruptions. The chapter provides a blueprint for making climate resilience — decreased vulnerability of services and its underlying assets to climate impacts—part of routine government opera- tions through asset management practices. The climate risk assessment process guides readers on how to assess the local impact of a changing climate. They can customize climate adaptation and mitigation strategies based on the exposure and adaptive capacity of the community to specific climate hazards. These levels of vulnerability, along with overall toler- ance and appetite for risk, are deciding factors xxx in local resource allocation, as not all potential climate risks can be addressed. Moreover, national and local governments already own some of the most cost-effective resources available in the form of natural infra- structure, such as lakes and wetlands. Key takeaways y Climate change threatens local services and the assets they rely on, jeopardizing the quality of life of residents. Local govern- ments are closest to the lives of residents, so they play an essential role in adapting to climate change. y Climate risk assessments provide informa- tion needed to make climate resilience a part of government operations through asset management practices. Publicly available climate information is often suf- ficient to conduct a high-level climate risk assessment. y The economic value of climate resilience is enormous. By reducing service and asset vulnerability to climate impacts, local and national governments can reduce the costs of disaster events, while acquiring greater value from infrastructure investments. Chapter 7 addresses how to strengthen asset management to enhance preparedness, response and recovery efforts in the face of major public health events and emergencies. As governments reckon with the broader societal and economic effects of COVID-19, well-managed assets have emerged as the first line of defense against public health threats. Local governments can take concrete steps to institutionalize health emergency preparedness across the asset management system.The Emer- gency Response Asset Management Action Plan (ER-AMAP) guides governments on how to improve existing AMAPs in times of health crises by incorporating actions to support and improve emergency operations plans, coordi- nation, safety and response time. As they are at the forefront of health emergency response, local governments must ensure that their assets, from hospitals to temporary shelters, are equipped to perform—and also adapt—before, during and after emergencies. Government assets often suffer from public health disasters, but they are also necessary components of eco- nomic and social recovery programmes. Key takeaways y Aligning emergency operations plans and procedures with asset management strate- gies strengthens institutional preparedness for disasters, shocks and emergencies, but it is not enough; key stakeholders need to build operational readiness to act accord- ingly in times of uncertainty. y Proactive asset management provides a first line of defense. When faced with situations of unanticipated scale and immeasurable impact, governments can use Emergency Response Asset Management Action Plans (ER-AMAPs) to mobilize key assets and re- sources for quicker, more effective response and containment. y A strong and inclusive recovery requires revisiting the local asset management framework and identifying the measures and interventions that will maximize public infrastructure investments and community wellbeing for generations to come. Chapter 8 outlines a role for central govern- ment to enable asset management by way of legislation, regulation, policies and pro- grammes stemming from the national level. While national governments themselves manage a number of important assets, they also make policy, set safety and performance standards, and draw up budgets that govern or influence asset management at all levels of government. Central governments can also support effective local asset management through capacity development, data and technical support and advisory services. A key objective of such activities is to encourage long-term planning and implementation that extends beyond the next local-level elections. xxxi In fostering an enabling environment for asset management across the local government sector, national governments might also scale expectations for asset management accord- ing to the unique size and financial position of local governments. A key step in developing the enabling environment is to understand long-standing pain points in managing infra- structure and propose solutions to help local governments address them. Through ongoing, multi-stakeholder dialogue and collaboration, the national government can create and sus- tain an environment that engages communities to advance their asset management systems and serve the needs of their population. Key takeaways y An enabling national legislative and policy environment can unlock the benefits that flow from good stewardship of public assets. Such an environment consists of leg- islation, policies and programmes that not only reflect but reinforce the commitment of senior local and national stakeholders to asset management. y National policymakers should keep in mind the assorted priorities, objectives and com- positions across a local government sector to ensure that country-wide asset manage- ment policies and interventions align with the actual needs of local governments, who stand at the forefront of service delivery. y Convening a multi-stakeholder technical advisory committee can guide and sustain the efforts of national and local officials to establish a supportive environment for asset management. xxxiii Introduction The global context Governments around the world are explor- ing innovative financing mechanisms to fill infrastructure financing gaps in support of the Sustainable Development Goals (SDGs). Often such efforts do not budget for the financial, human and material resources needed to manage infrastructure assets over their entire lifespans. As a result of a strong focus on the ‘new and shiny’, old assets are often neglect- ed, while new ones are built without putting in place an asset management framework that supports reliable, inclusive and sustainable es- sential services. Making this mistake can be extremely costly. Underinvestment in infrastructure main- tenance has been estimated to cost some developing countries up to 2 per cent growth in GDP. Under-maintained infrastructure assets are more likely to fail, disrupt