Infrastructure Delivery Management Toolkit 2010 Edition Delivery Process

Infrastructure Delivery Management Toolkit: 2010 Edition Delivery Process 1: Portfolio Management Introduction Sonny Schmidt 1 development through partnership

Overview of Portfolio Management “Infrastructure networks, . . . represent a vast investment, made over many generations. . . that support the fabric of modern living in our communities. It is important that we employ the very best management skills and practices to ensure that related services are delivered economically and sustainably. ” (IIMM v 3 2006) 2

Overview of Portfolio Management “Portfolio Management is concerned with doing the right work” (Standard for Portfolio Management 2006 - PMI) 3

Overview of Portfolio Management (PMI) 4

Statutory Requirements for Portfolio Management (1) • PFMA Section 38 (1): – “. . evaluating all major capital projects. . ” – “. . effective, efficient, economical and transparent use of resources. . ” – “. . safeguarding and maintenance. . ” • Chapter 5 of Treasury Regulations: – Prepare and submit a strategic plan and APP for MTEF period annually 5

Statutory Requirements for Portfolio Management (2) • GIAMA: – U-AMP: • Reviewed, submitted annually • Strategic needs assessment – C-AMP • Reviewed, submitted annually • Life cycle management plan for assets • OHS: Operations and Maintenance requirements 6

Standards and Guidelines • International Infrastructure Management Manual (IIMM) • Standard for Portfolio Management (PMI) • Standard for Programme Management (PMI) • GIAMA Guides for Asset Management Plans 7

The IDMS Prov Infr Strat DP 1: Portfolio Management DP 1 -1 Infrastructure Planning Develop U-AMP Develop C-AMP (including prioritised (including work plans) MTEF works list) DP 1 -2 Programme Management G 1(a) PF 1. 3 G 1(b) PF 1. 4 Develop/review IPMP Dev Proc Strat P C 1 PF 2. 1 G 2 PF 2. 2 PF 5 Manage Implementation PF 2. 3 PF 4 DP 2: Project Management DP 2 -1 Planning (Develop IPIP) Package definitio n Package prep P C 2 G 3 PF 1. 3 Works plannin g G 4 Design developt. P C 3 P C 4 a PF 1. 4 G 5 P C 5 MFC Info G 6(a) T 1 PF 2. 1 PF 5 DP 2 -4 Close Out DP 2 -3 Works DP 2 -2 Design Con/Del works G 6(b) P C 4 b PF 2. 2 Project Close Out Handovr works G 7 Update Asset Register G 8 T 2 PF 2. 3 PF 4 DP 3: Operations & Maintenance DP 3 -1 Recognise & accept assets G 8 PF 1. 3 DP 3 -2 Mobilisation for Facilities Mgt PF 1. 4 DP 3 -3 Operations PF 2. 1 PF 5 DP 3 -4 Maintenance PF 2. 2 PF 2. 3 DP 3 -5 Demobilise Facilities Mgt PF 3 PF 4

Portfolio Management Process 9

Components of Portfolio Management 10

Portfolio Management Handover of constructed, upgraded or rehabilitated asset Project Management Operation and Maintenance Management Feedback from Projects in Progress Feedback from Operations and Maintenance 12

OAG: Asset Life Cycle (Asset Management Guidelines)

User and Custodian Portfolio Management Outputs User organisations Custodian organisations U-AMP Construction procurement strategy IPMP Organisation and Support plan Monitoring reports Recommended actions C-AMP Work Plans Organisation and Support plan Monitoring reports Recommended actions 14

Benefits of Portfolio Management • • • Strategic Alignment Improved Stakeholder Management Good Governance Legislative Compliance Consistent Reporting Improved Risk Management 15

Conclusion • Portfolio Management is a continuous process • Reports are snap shots at specific times • Collaboration with custodian - develop • Document work – institutionalisation, transfer lessons learned 16

Thank you 17