Water World Asset Management

Asset Management: Using Alternative Materials to Address Replacement Cost and Maintenance Concerns In the 21st century, water util-ity management professionals for both water and sewer systems strive to implement asset management programs in order to better manage their aging wet infrastructure. In 2012, a Black and Veatch survey1 on the US water industry found that the top asset management issues were all financially driven, namely addressing aging water and sewer infrastructure, managing capital costs, funding or availability of capital, and energy costs. In 2013, a McGraw Hill Construction study, conducted in partnership with CH2M Hill,2 confirmed that 75% of utilities implementing asset management programs did so because of their concerns with aging infrastructure. Major studies from the US Mayor’s Water Council,the USEPA,4 the Congressional Budget Office,5 US Government Accountability Office,6 the American Water Works Association7 and others all conclude that the costs associated with US water and sewer infrastructure — for both replacement of aging systems and for new development driven by growth is financially overwhelming, ranging from $1 trillion to $4 trillion over the next couple of decades. The financial challenges faced by utility, asset and financial managers have intensified with the downturn of the world economy, tapped out rate payers, unstable credit markets, wide-scale downgrades and paralyzed project-and rate-approving authorities. Some consulting firms are responding by offering financial services. For example, MWH Global is an early adopter of wet infrastructure

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