SDM AMC: Partners in asset optimisation

ENGINEERING SOLUTIONS FOR OUR MOST PRECIOUS RESOURCE

Please tell us more about SDM Consulting Engineering and Project Management.

SDM Consulting Engineering and Project Management (Pty) Ltd was born in 2002 from an amalgamation of a skillful group of entrepreneurial engineers while at college who were, and remain, determined to provide solutions to meet the needs of our clients.

Over the past two decades, we have grown to boast not only a national footprint but an impressive presence in Africa and beyond, and a Level 1 BBBEE certification.

What services does SDM Consulting Engineering and Project Management offer?

Over the years, SDM has established Centres of Excellence including the following: • Infrastructure Development –

Municipal Services • Structural Engineering • Water Engineering - Water Demand Management - Master Planning - Dams and Hydrology - Water and Wastewater Treatment • Infrastructure/Physical

Asset Management • Project and Programme

Management Under the guidance of

Dr Mpafane Deyi, CEO and

Head: Water Engineering,

SDM Consulting Engineering and Project Management offers a high level of expertise in the specialised field of water engineering.

• Mechanical and Electrical Engineering.

Can you drill down specifically into your water engineering offering?

South Africa is a water-scarce country and about 98% of its water resources are already allocated. As a country, we face an estimated 17% deficit between water supply versus the demand by 2030.

Sedimentation accumulation in dams is reducing the available storage capacity of water; in fact, it is reported that the storage capacity in South Africa is reduced by 0.4% every year. To compound this challenge of limited water resources, it was reported in a CSIR study that water losses in the form of non-revenue water (NRW) are at 36.8% nationwide. NRW losses were further reported by the Department of Water and Sanitation (DWS) to be at R9.9 billion per annum, which is mainly driven by high levels of leakage in water distribution systems. SDM has attracted experienced experts and skill sets from the market, including Dr Leon Geusytn, who has expertise in hydraulics, water distribution and the optimisation of sewer reticulation systems, master planning and management, and probabilistic and risk-based engineering system analysis. SDM has also developed water conservation and demand management capacity in order to assist our metros and municipalities, by and large, to reduce NRW and the levels of leakage in water distribution systems.

Another challenge that the municipalities and metros face in South Africa is revenue leakage associated with billing problems: these are due to metering infrastructure and revenue inefficiencies and discrepancies.

Dr Mpafane Deyi, CEO, SDM Consulting Engineering and Project Management

Over the years, SDM has also developed competencies to assist clients with revenue enhancement initiatives.

The traditional civil engineering services remain the backbone of the income streams of SDM.

What are some of the most notable projects SDM has worked on in the water space?

In the past, we have served the National Department of Public Works and district municipalities, and have implemented water efficiency programmes at Correctional Services centres across the Western Cape, KwaZulu-Natal and Mpumalanga. Currently, we are implementing a regional water supply scheme in the Eastern Cape on behalf of O.R. Tambo District Municipality and for uMkhanyakude District Municipality in KwaZulu-Natal. These projects provide water to well over 160 villages, for communities that were not served with potable water before.

Further, we are currently implementing a revenue enhancement and reduction of NRW project in the City of Ekurhuleni, as well as water efficiency measures for the Rebosis Property Fund.

As urbanisation continues to accelerate across the developing world, what are some of the major factors municipalities need to take into account to deliver water services to rapidly growing populations?

The escalating global demand on finite water resources is of great concern and is likely to constrain future economic growth and development. Urban centres in South Africa are faced with the challenge of population growth and the corresponding growing water demand placed on municipal water distribution systems.

In the rural areas, there are still communities that are not provided with water and sanitation services and, to complicate this problem further, the maintenance backlog of water and sanitation infrastructure is escalating. The financing of new infrastructure and maintenance backlog is estimated at R330 billion over the next 10 years.

What challenges do you commonly encounter in the municipal water space and how can SDM assist in resolving them?

Typical challenges for municipalities include the optimal utilisation of water resources and infrastructure to provide acceptable service levels within a limited budget. The technology and expertise of SDM assists comprehensively with this through the performing of optimal upgrading and expansion planning, efficient operation planning and prioritised risk, as based on component refurbishment and replacement.

Do you feel the DWS’s reinstatement of Blue and Green Drop audits is a big step in the right direction in improving drinking and wastewater standards? What are the implications and is there more that should be done?

It is indeed a step in the right direction to use Blue and Green Drop, as it assists to track the investment made as well as shortfalls within the municipalities with regard to water and wastewater treatment infrastructure. Furthermore, it assesses the condition-performance aspects. The recently published Green Drop Report shows that the National Risk Ratio has deteriorated from 2013 and regressed from medium-risk to high-risk, whereas the Department of Public Works’ wastewater treatment plants are at critical risk.

The implication of this is the contamination of the catchments and water resources (rivers and dams) and the deterioration of water quality. To conclude, I would like to quote Professor Anthony Turton, who stated, “A tsunami of human waste inundates our rivers and dams, and it’s a security issue.”

Government should work to attract private investors into this critical infrastructure for the development of our economies, as there is not enough money in the fiscus to fund the maintenance backlog.

What are the anticipated effects of climate change and the resultant increasingly variable weather patterns on municipal water supply and water-related infrastructure?

Apart from extended droughts possibly making groundwater resources redundant, more frequent or more intense rain events could not only damage water infrastructure but could, for example, cause increased ingress of stormwater and seepage in sewer systems.

How can these effects be guarded against or countered?

In the case of sewer systems, adequate assessment of the criticality and planning of system capacity, such as performed through accurate modelling by SDM, is essential to also allow for the prioritised treatment and protection of the most vulnerable section of the system. The same applies in terms of the protection of the most critical components and sections of water supply systems.

Any final thoughts you’d like to share?

For the benefit of all in our country, government and business should come together and build state capacity in relation to the availability of water engineers and scientists to address the above-mentioned challenges. Together, we can achieve so much more.

PARTNERS IN ASSET OPTIMISATION

SDM Asset Management and Consulting (SDM AMC) – an ISO 9001 certified, Level 1 BBBEE Contributor – specialises in end-to-end, full life-cycle fixed asset management solutions. Mkululi Dube, Director: Operations, details the holistic approach to asset management.

Mkululi Dube, Director: Operations, SDM Asset Management and Consulting

Please provide a bit of a background on SDM AMC.

Our company was established in 2014 to pursue opportunities in physical asset management and draws from a rich SDM brand from as far back as 2002, which was then a pure engineering entity. At its formation, SDM AMC focused purely on an opportunity that it serviced as a subcontractor to one of the top four auditing firms. Then in 2017, we won our first solo contract. The company has since grown its footprint into national, provincial and local government, as well as the private sector, and has successfully executed projects in six of South Africa’s provinces.

SDM AMC has over the years attracted some of the most experienced professionals in the asset management space. Our teams of experienced resources comprise a diversified mix between top academics, experience, gender and race, reflecting the key demographics of our society.

What asset management services does SDM AMC offer?

We provide holistic, end-to-end asset management solutions to organisations, with a particular focus on the entire asset management life cycle. Our vision has grown from merely assisting our clients with compliance to helping them fully optimise their asset base. Our holistic asset management approach includes assessment of the current state for optimisation, the physical verification of movable and immovable assets, compiling compliant GRAP 17 and IAS 16 fixed asset registers, the valuation of immovable property, asset classification, asset policy and standard operating procedures review and development, and the preparation of journals and notes for annual financial statements and audit/ CFO support. This further includes system implementation and business consulting to ensure the optimisation of the asset base, increased performance and cost-savings, among others. Besides offering general asset management consulting services for resource optimisation, SDM AMC has six operational business units: • Asset and Inventory Management • Fleet Management • Infrastructure and Facilities Management • Agriculture Consulting Services • SDM Training Academy • SDM Asset Management

Software System.

What are some of the most notable projects SDM AMC has worked on?

Some of the key projects we’ve worked on include: • Department of Defence: We offered the client primary asset management solutions. The complexity of the client compelled our teams to assist with multiple classes of assets, including movable, heritage, work-in-progress, intangible and inventory assets, among others. • Department of Correctional Services: This client allowed us to delve deeply into inventory management in line with the department’s strategic drive towards self-sustainability and the preparation of financial reporting in line with GRAP requirements. With assistance from SDM AMC, the client obtained an unqualified-audit outcome in the AFS for the 2020/21 financial year – its first in four years. • CoGTA Mpumalanga: This niche opportunity allowed SDM AMC to partner with the client in its oversight mandate to support local government to perform at an optimum level, especially struggling municipalities.

Why is it important for public sector entities to ensure their asset registers are accurate?

In order for local government to fulfil its mandate of service delivery, all environments need to have accurate,