7 ARAB REPUBLIC O'EGYPT MINISTRY OF DEVELOPMENT ia AND NEW COMMUNITIES MANAGEMENT AND TARIFF STUDIES .. RELATIVE TO WATER/SEWERAGE SYSTEMS. ''MAN GEMENT SYS EMS> FINAL REPO *! = • ,., . ' -' , .I 1S . . ".-*7 "A••"l"iliY ' " "" . !i i .. . AS : ..... sysA AdMCAT SBOU 9AT 'AS, OCIAtE i.I~ IE . , ~ . -. . I E S M I =uJ f l NM,""
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7 ARAB REPUBLIC O'EGYPT MINISTRY OF DEVELOPMENT ia
AND NEW COMMUNITIES
MANAGEMENT AND TARIFF STUDIES ..RELATIVE TO WATER/SEWERAGE SYSTEMS.
On our cover is a sketch of a sybil, which is a fountain. During the Ottoman Empire these were a common source of drinking water. A well is located at groundlevel and a balcony on the second level where children were taught the Koran. Usually located near mosques,sybils were built and then donated to the public byvarious benefactors.
Beneath the sketch is a quote from the Koran, "We made from water all living things".
BLACK & VEATCH INTERNATIONAL CONSULTING ENGINEERS
A. T. KEARNEY, INC. MANAGEMENT CONSULTANTS
K WITH SABBOUR ASSOCIATES , , " ICONSULTIN., ENGINEERS QJ'L.-s
OUR REP: 79-242 YR REP: DATE: October 8, 1979
Engineer Soliman Abd El Hai Chairman Advisory Committee for Reconstruction Ministry of Development and New Communities 1 Ismail Abaza Street Cairo, A.R.E.
Dear Engineer Abd El Hai:
Pursuant to the provisions of Paragraph 6.5 of Appendix 1 to the Contract dated April 6, 1978 betweenthe Ministry of Housing and Reconstruction and BVI-ATK Associates for Management and Tariff Studies Relative toWater and Sewerage Systems, we are pleased to submit the Final Report on Management Systems Physical-Assets. It is responsive to the provisions of Paragraph5.3.8 of Appendix 1 to the Contract and incorporates, as appropriate, material related to the review comments on the Interim and Draft Final Reports.
Your attention is directed to Section 0.0 of this report, Executive Summary, where a brief synopsis of the findings and recommendations may be found.
We wish to acknowledge the assistance and cooperationof the many individuals, agencies and organizationscontacted during the course of the study.
Ile appreciate the opportunity to serve the Ministry on this important assignment.
Very truly yours
cc: UAID John R. ScottProject Director
cc: USAID TAMSMr._A._P1 ._Na g uib_
3 Al,,ed El B ri Si. Mohandsen
Telub.uc 706727 -Telex 93815 BLAV" U.N.
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TABLE OF CONTENTS
Section Reference Page
0.0 EXECUTIVE SUMMARY
0.1 Findings and Conclusions 0-2
0.2 Recommendations 0-3
1.0 INTRODUCTION
1.1 Background 1-2
1.2 Scope 1-2
1.3 Study Objectives 1-5
1.4 Approach 1-6
2.0 BUILDINGS AND OFFICES
2.1 Findings and Conclusions 2-2
2.1.1 Adequacy of' Assets 2-2
2.1.2 Control Policies and Maintenance Practices 2-3
2.1.2.1 Inventory and basic descriptive data 2-3
2.1.2.2 Building and grounds maintenance 2-4
2.1.2.3 Building housekeeping standards 2-5
2.2 Recommendations 2-6
2.2.1 Interim Period 2-6
2.2.1.1 Adequacy of assets 2-6 2.2.1.2 Control policies and
maintenance practices 2-7
2.2.2 Long-Term 2-8
2.2.2.1 Adequacy of assets 2-8 2.2.2.2 Control policies and
maintenance practices 2-8
CONTENTS
Page 2 of 5
3.0 WAREHOUSES AND STORAGE YARDS
3.1 Findings and Conclusions 3-1
3.1.1 Adequacy of Assets 3-1
3.1.1.1 Warehouses and storage yards - space and distribution 3-2
3.1.1.2 Warehouses and storage yards layouts 3-3
3.1.2 Control Policies and
Maintenance Practices 3-4
3.2 Recommendations 3-5
3.2.1 Interim Period 3-5
3.2.1.1 Adequacy of assets 3-5 3.2.1.2 Control policies and
maintenance practices 3-5
3.2.2 Long-Term 3-6
3.2.2.1 Adequacy of assets 3-6 3.2.2.2 Control policies and
maintenance practices 3-7
4.0 OFFICE SUPPLIES AND EQUIPMENT
4.1 Findings and Conclusions 4-1
4.1.1 Adequacy of Assets 4-1
4.1.2 Control Policies and Maintenance Practices 4-2
4.2 Recommendations
4.2.1 Interim Period 4-3
4.2.1.1 Adequacy of assets 4-3 4.2.1.2 Control policies and
maintenance procedures 4-3
4.2.2 Long-Term 4-4
4.2.2.1 Adequacy of assets 4-4 4.2.2.2 Control policies and
maintenance procedures 4-6
CONTENTS Page 3 of 5
5.0 SUPPLIES AND EQUIPMENT FOR OPERATIONS
AND MAINTENANCE
5.1 Findings and Conclusions 5-1
5.1.1 Adequacy of Assets 5-1
5.1.1.1 5.1.1.2
Water utilities Wastewater utilities
5-1 5-4
5.1.2 Control Policies and Maintenance Practices 5-6
5.2 Recommendations 5-7
5.2.1 Interim Peri6d 5-7
5.2.1.1 5.2.1.2
Adequacy of assets Control policies and
5-7
maintenance practices 5-7
5.2.2 Long-Term 5-7
5.2.2.1 5.2.2.2
Adequacy of assets Control policies and
5-7
maintenance practices 5-7
6.0 COMMUNICATIONS EQUIPMENT
6.1 Findings and Conclusions 6-1
6.1.1 Adequacy of Assets 6-1
6.1.2 Control Policies and Maintenance Practices 6-3
6.2 Recommendations 6-3
6.2.1 Incer-im Period 6-3
6.2.1.1 Adequacy of assets 6-36.2.1.2 Control policies and
maintenance practices 6-1
6.2.2 Long-Term 6-4
6.2.2.1 Adequacy of assets 6-4 6.2.2.2 Control policies and
maintenance practices 6-6
CONTENTS
Page 4 of 5
7.0 TRANSPORTATION EQUIPMENT
7.1 Findings and Conclusions 7-1
7.1.1 Adequacy of Assets 7-1
7.1.2 Control Policies and Preventive Maintenance Practices 7-2
7.2 Recommendations 7-4
7.2.1 Interim Period 7-4
7.2.1.1 Adequacy of assets 7-4 7.2.1.2 Control policies and
maintenance practices 7-4
7.2.2 Long-Term 7-4
7.2.2.1 Adequacy of assets 7-4 7.2.2.2 Control policies and
maintenance practices 7-6
8.0 SUMMARY
8.1 Summary of Findings and Conclusions 8-1
8.1.1 Adequacy of Assets 8-4
8.1.1.1 Buildings and offices 8-4 8.1.1.2 Warehouses and
2.1 Water Treatment Plants and Selected Facilities
2.2 Wastewater Treatment Plants, Some Large Pumping Stations and Selected Facilities
2.3 Property Management - Recommended Buildings and Real Property Inventory System
2.41 Property Management - Improvements in Preventive Maintenance Practices
2.5 Property Management - Improvements in Building and Grounds Housekeeping
4.1 Establishment of Plant Libraries
5.1 Recommended List of Equipment for Systems Repair at Ismailia
5.2 Recommended List of Equipment for Systems Repair at Port Said
7.1 Repair versus Replacement Policy
8.1 Recommended Improvements in Physical Assets Management
8.2 Projected Requirements for Physical Assets During the Next Ten Years
APPENDICES
Appendix 1 Estimates of Additional Physical Assets Required During The Next Ten Years
Note: Exhibits are located at the end of the Section in which they are referenced. Appendices are located at the end of the report.
0.0 EXECUTIVE SUMMARY
Under a contract dated April 6, 1978 with the
Ministry of Housing and Reconstruction, BVI-ATK Associates
have conducted management and tariff studies relative to
water and wastewater utilities in Egypt. The Management
Study consists of eight interrelated studies, each
involved with particular areas of management concern.
This Report documents the findings, conclusions and
recommendations developed relative to the physical assets
of the utilities.
Six categories of physical assets were reviewed
from a management perspective:
- Buildings and Offices
- Warehouses and Storage Yards
- Office Supplies and Equipment
- Supplies and Equipment for Operations and Maintenance
- Communications Equipment
- Transportation Equipment
Each was reviewed with respect to general suitability
and adequacy to support the utilities' present and
anticipated future expansions of services. The control
policies and maintenance practices for each category were
also studied with specific reference to:
- Record - keeping.
- Scheduling of preventive maintenance.
0-2
- Decision making regarding repair versus replacement.
- Acquisition and disposal practices.
Recommendations have been developed which include
improvements that should be made pending implementation
of a new organizational structure (interim period), and
improvements which are longer range or are required to
properly support the new organizational structure during
the next ten years (long-term). Approximate amounts,
general types and estimated costs of additional assets
required during the next ten years have also been
developed for use in the valuation of future assets.
0.1 FINDINGS AND
CONCLUSIONS
Except for communications equipment, which is
inadequate, the assets available to the water and waste
water utilities permit marginally acceptable levels of
service. Relatively, the assets of the wastewater
utilities are less adequate to meet future expansion
than are those of the water utilities. In both types
of utilities and at all locations many improvements can
and should be made by the existing organizations to provide
a higher level of service more efficiently and economically.
The improvements are basically in the area of instituting
more formal control systems and better tools for management
of all categories of physical assets.
n-3
0.2 RECOMMENDATIONS
The principal recommendations of this Study are:
- Property management. Install a buildings andreal property inventory system as described inthe report to improve:
. Property accountability.
• Property management.
" Future planning.
-Preventive maintenance. Provide emphasis and resources to establish an effective program formaintaining the physical plant and other assetsof the utilities.
- Building and grounds housekeeping. Providecontinuing emphasis and interest to upgradeplant and local work conditions.
- Accountability. Require managers to acknowledgereceipt of office supplies and equipment,transportation equipment and other propertyunder their control on an annual basis.
- Acquisition and disposal. Initiate surveys todetermine new equipment needs for office,operations and maintenance, and transportationequipment. Institute programs to identify anddispose of excess and salvage property in a timely manner.
- Repair versus replacement. Install a systemto facilitate making decisions based on costsof repair versus replacement.
- Office supplies and equipment. Initiate a program of gradual modernization.
- Communications equipment. Procure and install two-way radio systems in the operating departments on a priority basis to enable the utilitiesto provide more responsive and efficient service.
- Plantoperations support. Establish technicallibraries at operating plants and laboratories.
0-4
- Operations and maintenance support.
" Provide complete, equipped shop facilities in all capital programs for new plants and plant expansions as required.
" Follow-through on procurement of tools andequipment recommended in engineering consulting studies.
The Report includes outline descriptions of several
- Repair versus replacement policy and procedures for transportation equipment
The additional physical assets required by the
utilities during the next ten years are projected to total
approximately LE 103 million divided approximately 56%
for the water utilities and 44% for the wastewater utilities.
This total includes approximately LE 27 million of expendable
office supplies and supplies for operations and maintenance
that would be used during the period.
1.0 INTRODUCTION
This Report is submitted by BVI-ATK Associates in
partial fulfillment of the April 6, 1978 Contract with
the Ministry of Housing and Reconstruction to perform
Management and Tariff Studies Felative to Water and
Sewerage Systems in Egypt. The studies are specifically
concerned with the utilities in six cities: Cairo and
Helwan, Alexandria, and the Canal cities of Port Said,
Ismailia and Suez. For the management portion, the
contract requires that eight studies be conducted of
various aspects of the water and wastewater utilities:
- Management Procedures - Alexandria Water General Authority
- Organizational Environment and Structure
- Personnel System
- Procedures and Methods
- Management Information Systems
- Physical Assets
- Data Processing
- Organization Manual
The Management Study is to culminate in recommended programs
for the development of the organizations or agencies to
meet the current and future operational and management needs of
water and wastewater systems through the year 2000.
1-2
This Report summarizes and documents findings,
conclusions and recommendations relative to opportunities
for improvement in the management of those physical assets
used and required by the water and wastewater organizations
to meet their respective functional responsibilities,
and provides estimated requirements for additional future
assets. This Report is submitted to fulfill Task 5.3.8,
Physical Assets, as specified in the Scope of Work
contained in Appendix I to the Contract. Separate reports
have been submitted to cover other areas of management
concern.
1.1 BACKGROUND
Concurrent with the work under this contract,
engineering consultants have been engaged to develop ten
other water and wastewater-related projects including
the initial Waterworks and Wastewater Facilities Master
Plans for the six cities which are the subject of this
study. The Master Plans are in various stages of
completion. These documents have been used in the Management
Study as major sources of information.
1.2 SCOPE
The organizations which are the subject of detailed
analysis under the Management Study are shown in Table 1-1
on the following page. These are the existing organizations
responsible for water and sewerage activities in the six
cities at the present time.
1-3
TABLE 1.1
ORGANIZATIONS RESPONSIBLE FOR WATER AND SEWERAGE IN THE SIX CITIES (1)
WATER WASTEWATER
City Design Operations and Maintenance Design
Operations and Maintenance
Cairo and Helwan GOGCWS GOGCWS GOSSD GOSSD
Alexandria AWGA AWGA GOSSD GOSSD
Canal RegionCities SCA SCA GOSSD Governorates
Ismailia Port Said Suez
AWGA - Alexandria Water General Authority
GOGCWS - General Organization for Greater Cairo Water Supply
GOSSD - General Organization for Sewerage and Sanitary Drainage
Governorate -Government of the area (approximately equivalent to a province in other countries)
SCA - Suez Canal Authority
Note: (1) Adapted from Contract Terms of Reference
1-)1
The major categories of assets studied and specific
types of items included in each are shown in Exhibit 1.2.
The categories that have been specified to cover all
physical assets described in the Terms of Reference and
to facilitate this Study. The list of items is illustra
tive but not all-inclusive. Selected major items were
investigated because of the lack of complete inventory
data for all categories of assets and the limited time
available for study.
The Physical Assets Task has included the following
scope of work:
- Review and analysis of the suitability and adequacy of the following physical assets of existing utility organizations:
* Buildings and Offices
* Warehouses and Storage Yards
Office Supplies and Equipment
Supplies and Equipment for Operations and Maintenance
Communications Equipment
Transportation Equipment
- Review and analysis of policies and practices followed in controlling and maintaining the
physical assets covering the following areas of concern:
• Keeping of records relating to the assets
" Scheduling of regular preventive maintenance
• Decision-making regarding repair versus replacement
• Acquisition and disposal practices
1-5
- Recommended immediate action improvements that can or should be made in the presentlevels or types of physical assets, and the policies and practices to be used in controlling these physical assets in the existing organizations during the interim period until the new organizational structure selected is implemented.
- Estimates of the approximate amounts and general types of physical assets required to support the organizational structure of the utilities during the next ten years, an estimate of the approximate costs of additional assets required, and recommended policies and practices to be followed in controlling these assets.
Specifically excluded from this analysis are physical
assets which are generally classified as installed works
and equipment of the operating systems; i.e., the water and
sewage treatment plants, pumping stations, and distribution
or collection systems. Supplies consumed in plant operations,
such as alum and chlorine in water treatment, are also
excluded, but the storage facilities for such supplies
are included. Laboratory equipment and supplies and other
assets required for technical operations were excluded because
these are being evaluated under separate studies conducted by
engineering consultants. Procurement of supplies and physical
assets is discussed in the Procedures and Methods Report.
1.3 STUDY OBJECTIVES
The basic objective of this Study was to identify problem
areas related to physical assets and to propose improvements.
Generally, management is interested in providing adequate and
reliable services in a safe, economical and efficient manner.
The areas of management concern with respect to physical assets
specified in the Terms of Reference include:
1-6
- Suitability and adequacy
- Record-keeping
- Preventive maintenance
- Repair versus replacement procedures
- Acquisition and disposal practices
A secondary objectivewas to develop estimates of
the approximate amounts, types and costs of additional
assets required to support the utilities during the next
ten years.
1.4 APPROACH
This analysis of physical a.3ets is based on:
- A review of documents prepared by consultants conducting Master Plans and related studies.
- Notes taken during field visits and interviews by team members relative to physical assets-related problems. Data collection has included visits with officials of the water and wastewater utilities and to offices, warehouses, treatment plants, pumping stations, storage yards, maintenance shops and such facilities as are used to support the administration, operations and maintenance of the utilities. Data gathering has been guided by the areas of management concern specified in the Terms of Reference to meet overall study objectives.
- Identification and collection of relevant information during field visits and interviews with utilities officials carried out by team members investigating areas of concern other than physical assets, particularly the team investigating procedures and methods. Combined team interviews were used to minimize interruptions.
- Identification and collection of selected documents from the appropriate organizations, e.g., the Five-Year Plan for Water Projects for Ismailia and Port Said and the Report of the Evaluation of the Capital of the GOGCWS, as of June 30, 1970.
1-7
A list of the agencies interviewed and facilities
visited by the Study Team Leader is shown in Exhibit 1.3.
The basic approach followed in this Study has
been to:
- Obtain a thorough and complete understanding of the physical assets and related management practices as was possible in the time available.
- Request and obtain from the operating agencies all available information on physical assets.
- Review information on physical assets from all sources for the purpose of identifying problem areas.
- Study problem areas as required to enable development of feasible and practicable suggestions for improvement.
- Specify immediate action improvements in sufficient detail to ensure understanding and correct implementation.
- Identify and propose longer-term improvements to accompany the transition to the new organizational structure.
- Prepare preliminary budgetary-type estimates of the general types, amounts and approximate costs of additional assets required to support the utilities during the next ten years suitable for use in the valuation of future assets.
EXHIBIT 1.1
Page 1 of 3
CATEGORIES AND TYPES OF PHYSICAL ASSETS
CATEGORY
Buildings and Offices
Warehouses and Storage Yards
Office Supplies and Equipment
Supplies and Equipment for Operations and Maintenance
SPECIFIC TYPES OF ASSETS
Administrative buildings and offices Workshops Garages and vehicle maintenance shops
Main warehouses and stores buildings Storage shelters Improved storage areas Supply and parts storage buildings at plants
and stations Fences Outside lighting systems Permanent paving
Office furniture - Desks and chairs - Book cases - Filing, storage and other cabinets - Tables - Miscellaneous equipment
Drafting room equipment Library and library equipment Safes Fans Heaters Air conditioners Expendable office supplies Miscellaneous supplies
Supplies for maintenance of operating plant
- Spare parts - Replacement parts
" Pumps " Motors " Pipe and fittings L Other
- Lubricants - Other supplies
EXHIBIT 1.1 Page 2 of 3
CATEGORIES AND TYPES OF PHYSICAL ASSETS
CATEGORY SPECIFIC TYPES OF ASSETS
Supplies and Supplies and equipment for operations Equipment for - Stores equipment Operations and . Portable cranes Maintenance . Forklift trucks (cont'd.) . Hoists
. Scales
. Lockers
. Hand and power trucks
. Storage bins and shelves * Other stores equipment
- Power operated equipment (includes vehicles and all accessories)
" Air compressors " Boring machines " Bulldozers " Compaction equipment " Cranes and hoists * Diggers " Engines " Pipe cleaning machines " Pipe cutting, coating and wrapping machines
" Tractors (crawler and farm types) " Trenchers " Other powered equipment
Supplies and equipment for maintenance - Tools, shop and garage equipment
" Air compressors " Anvils " Automobile repair shop equipment " Battery chargers " Concrete mixers " Drill presses " Derricks " Electric generating equipment " Engines " Hoists " Ladders " Lathes " Machine tools " Motor driven tools " Motors " Pipe threading and cutting tools " Pneumatic tools • Pumps and tanks for gasoline and oil " Pumps " Riveting tools " Smithing equipment " Tool racks " Vises " Welding equipment " Work benches
EXHIBIT 1.1 Page 3 of 3
CATEGORIES AND TYPES OF PHYSICAL ASSETS
CATEGORY SPECTFIC TYPES OF ASSETS
Communications All telephone, telegraph and wireless Equipment equipment
- Antennae - Battery charges - Cables - Distribution boards - Intercommunication sets - Radio transmitting and receiving sets - Remote control equipment - Storage batteries - Switchboards - Telephones and circuits owned by
the utility - Testing instruments
Transportation Automobiles Equipment Bicycles
Buses Motor trucks Motorcycles Repair cars or trucks Tractors and trailers (road type)Other transportation vehicles
EXHIBIT 1.2 Page 1 of 2
LIST OF CONTACTS
WATER OPERATING AGENCIES
qlexandria Water General Authority
Headquarters
Rond Point Water Treatment Plant, Warehouses and Shops
General Organization for Greater Cairo Water Supply
Headquarters
Abbassia*Warehouse/Storage Yards
Ameria Warehouses/Storage Yards
Cairo North Water Treatment Plant
Giz& Water Treatment Plant
Giza South Water Treatment Plant
Maadi Water Treatment Plant
Mostorod Water Treatment Plant
Roda Water-Treatment Plant
Rod El Farag Water Treatment Plant
Suez Canal Authority
SCA Works Department Headquarters
Ismailia Water Treatment Plant
Ismailia Networks Stores
Port Said Water Treatment Plant
Port Said Warehouse and Meter Shop
Port Fouad SCA Main Stores
Suez Water Treatment Plant
EXHIBIT 1.2 Page 2 of 2
LIST OF CONTACTS
WASTEWATER OPERATING AGENCIES
General Organization for Sewerage and
Sanitary Drainage
GOSSD Headquarters
GOSSD Cairo Utility
Cairo Utility Office Zenein Sewage Treatment Works Ameria Pumping Station
GOSSD Alexandria Utility
Alexandria GOSSD Office East Sewage Treatment Works Main Pumping Station No. 11
Suez Governorate
Zarb Pumping Station !o. 2
Suez Wastewater Treatment Plant
2.0 BUILDINGS AND OFFICES
This Section identifies problem areas with respect
to buildings and offices and discusses possible ways to
achieve improvements. Recommendations are provided to
include an estimate of additional assets required
during the next ten years. Because the primary focus
of data gathering has been on operating facilities, a
complete list of the 20 water treatment plants, giving
their capacities and selected information about associated
facilities, is provided in Exhibit 2.1 for convenient
reference. A similar list of the 12 principal wastewater
treatment plants and some of the large pumping stations
in the wastewater collection systems is provided in
Exhibit 2.2. Nevertheless, not all of the utilities
assets are located at the treatment plants and pumping
stations. There are also separate warehouse and storage
yard areas, and separate maintenance shops which are
important properties of the utilities. Assets at all
these locations as well as those at the utilities
headquarters have been considered in this study.
2-2
2.1 FINDINGS AND CONCLUSIONS
2.1.1 Adequacy of Assets
The locations and general layouts of administrative buildings
and offices, workshops and garages, and vehicle maintenance shop
areas were reviewed during site visits and by review of all
information made available in other consultant reports and
provided by the utilities. Very little of the inventory data
requested was provided. It was concluded that such data are not
being compiled or used by the utilities and consequently, were
not available.
In general, considering the general level of overstaffing
that exists and the age of some buildings, all office space is
being effectively used. The treatment plants have adequate
administrative space. Space used for hallways, stairs, storage
closets and kitchens is not excessive. Based on the site visits
and a review of available data, it is concluded that with several
exceptions, buildings and offices are generally suitable and
adequate to support the utilities' functions. Exceptions include:
- Overcrowding exists in some of the headquarters offices of both the water and wastewater utilities.
- Some of the plants and stations do not have workshop facilities. (See Exhibits 2.1 and 2.2)
- Buildings at some of the sewage treatment works are in need of complete rehabilitation. (See Exhibit 2.2)
- Many of the workshops and other buildings have deteriorated because of poor maintenance. Unless corrected, this situation will eventually result in an inadequate condition.
- Inadequate vehicle servicing facilities at workshops; e.g. the lack of grease racks or pits at Ameria for servicing vehicles.
2-3 At AWGA headquarters, a new administration building is being
constructed which will alleviate the overcrowding of present
facilities. A new building for GOSSD (Cairo) operations isi under con:ntruction. Overcrowded conditions were found to result in
part because the numbers of personnel assigned to some of the
headquarters offices are excessive.
Neglect of maintenance was found to be a serious problem
throughout the utilities. This will be discussed in Paragraph
2.1.2.2.
2.1.2 Control Policies and
Maintenance Practices
The principal findings relative to control policies and
maintenance practices are that improvements are needed in a number of problem areas to provide the basis foi better record
keeping, preventive maintenance, and programs for analysis of
repair versus replacement for the utilities' buildings and offices.
2.1.2.1 Inventory and basic descriptive data for buildings
and related property assets are inadequate. Although a valuation
of buildings and construction of GOGCWS was made as of June 30,
1970 and annual updatings of the value are presumed to reflect
property additions and other changes during subsequent years, no
records are available to show the number of buildings which are
the property of the utility. This observation generally applies
to other water utilities and also to the wastewater utilities.
At headquarters no department is assigned responsibility for real
property and building management. At the plants most do not have
up-to-date site maps; none have the buildings and structures
numbered; and none could show a liJsting of the buildings comprising the plant. There appears to be only scattered recognition that
a complete inventory and control system for buildings and related
property assets would be useful in improving plant management
and facilitating future planning.
The extent to which inventory data have been
prepared and are being used depends almost entirely on
the perception and concern for such matters by individual
managers. The information is generally available in an
incomplete and scattered form, and is available only to
the extent that the manager believes that it is needed.
This situation, for the most part, has created a
general posture of "doing without". In the absence of
a manager insisting on the need for and use of such data,
it is simply not prepared because the problems of the
day have grown to consume all available time and energy.
The lack of inventory data has been a handicap in
carrying out this Study.
The establishment of complete, accurate real
property building and office inventory data is an
important first step for effective management of
these assets.
2.1.2.2 Building and grounds maintenance is not
being done at an acceptable level on a regular basis.
Evidence of this is found in varying degrees at all
headquarters, plant and warehouse buildings by:
- Broken windows.
- Torn or missing screens.
- Exterior and interior paint peeling or flaking.
- Poor lighting and inoperable electrical fixtures.
2-5
-Leaking water faucets, connections and toilets.
- Inoperable water fixtures.
- Unrepaired damage to buildings including cracks or holes in structures and broken steps in heavily used, poorly lighted stairwells.
- Absence of buildings and grounds preventivemaintenance (PM) program in most cases.
Lack of a good maintenance program is causing the
facilities of the utilities to deteriorate faster than
normal, and has a detrimental effect on employee morale
and pride in their place of work. A properly functioning
program would correct, this adverse trend and could be
expected to result in collateral benefits which accompany
improved morale.
2.1.2.3 Building housekeeping standards do not
exist; or if they exist, they are inadequate or are not
being enforced. Evidence of this problem may be noted
in many of the headquarters, plant and warehouse
facilities by:
- Trash and refuse or debris on floors and throughout the areas around buildings.
- Absence of a Janitorial staff, facilities and equipment.
-Absence of a building and grounds inspection program at most plants but especially at headquarters.
- Oily floors in standby electrical power generation buildings.
- No trash cans in plant area.
- No clean-up of scrap and waste around construction sites.
2-6
A conscientiously applied housekeeping program
throughout all facilities is necessary to remove safety
hazards and enhance employee morale. The development
in all employees of an attitude of care and pride in
their place of work is considered a major challenge to
management at all levels in the utilities'organizations.
This problem is apparently of such long standing
that its correction will require an extraordinary and
concerted effort from top management levels. It will
also require long-term attention.
2.2 RECOMMENDATIONS
2.2.1 Interim Period
2.2.1.1 Adequacy of assets. It is recommended that the
various instances of overcrowding be corrected through adjustment
of the available space at headquarters as the new organizational
structure evolves and as overstaffing is corrected.
The lack of facilities for vehicle servicing can
be solved by constructing several outside grease racks
using locally available material such as concrete, timbers
or welded metal. The racks should be large enough to
accommodate the largest vehicle and high enough for a
person to easily work underneath when the vehicle is on
them. Ramps leading to the rack should be constructed
and positioned to permit driving vehicles on and off safely.
2-7
2.2.1.2 Control policies and maintenance practices.
Improvements are recommended in the policies and practices
with respect to management of buildings and office
property. The following recommendations will establish
a management system over this property through programs
which will improve accountability, preventive maintenance
and decision-making:
- Record-keeping. Institute a complete inventory of the real property to include buildings and offices; assign responsibility for property management and develop the information regarding assets that is essential for sound property management. (See Exhibit 2.3 for a recommended system.)
- Preventive maintenance. Institute a formal preventive maintenance program for all plants, buildings and grounds. Include with this program a concerted and continuing effort to upgrade housekeeping standards. (See Exhibits 2.4 and 2.5 for further details.)
- Repair versus replacement. Institute programsfor the systematic review and removal and/ormodernization and upgrading of outmoded or inadequate buildings and office facilities. Establish criteria for judging the economics of replacement versus repair or renovation of buildings.
- Acquisition or disposal. Perform annual reviews of facilities usage and requirements for additional space. Develop policies for acquisition or disposal based on current and projected needs, the capacity and suitabilityof existing assets, and economic considerations related to capital costs and maintenance expenses. Include in such reviews all unused buildings, e.g., the large, old building in the center of the western part of the Giza Water Treatment Plant and abandoned pumphouse buildings at the Abbassia Storage Yards.
(See the Procedures and Methods Report, Section 3.0
for further discussion of maintenance practices.)
2-8
2.2.2 Long-Term
2.2.2.1 Adequacy of assets. Estimates of the
buildings and offices required during the next ten years
are shown in Table 2.1 on the following page. The
detailed development of the projections is explained
in Appendix 1.
2.2.2.2 Control policies and maintenance practices.
Implementation of the recommendations outlined in
Paragraph 2.2.1.2 will provide the required control
policies and property management tools, including an
adequate preventive maintenance program, to meet the
needs of the utilities during the next ten years.
TABLE 2.1
BUILDINGS AND OFFICES REQUIRED BY THEWATER AND WASTEWATER UTILITIES DURING THE NEXT TEN YEARS
CITY
Cairo and Heiwan
Alexandria
Port Said
Ismailia
Suez
Total
UTILITY
Water Wastewater
Water
Wastewater
Water
Wastewater
Water
Wastewater
Water
Wastewater
Water
Wastewater
ESTIMATED l) CURRENT LEVEL
AMOUNT VALUE
(Meters ) (LE 1,000's)
6,926 404 4,704 272
2,520 144
597 32
638 38
168 9
638 38
168 9
638 38
168 9
11,360 662
5,805 331
ESTIMATED CURRENT ADDITIONAL NEED(1)
AMOUNT VALUE
(Meters2 ) (LE 1,000's)
2,314 135 2,016 117
840 48
243 13
202 12
112 6
202 12
112 6
202 12
112 6
3,760 219
2,595 148 Notes: (1) No inventory of current buildings and offices is available.
Development of estimated amounts is explained in Appendix 1.(2) New and replacement requirements. Includes Estimated Current Additional Need.
UNIT 2 (CTE) 30,000 ALL UNITS LOCATED ON SAME SITE
UNIT 3 (CTE) 20,000
UNIT 4 (BAMAG) 90,000UNDER CONSTRUCTION
PLANT IS UNDER MODIFICATIONS TO UPGRADE CAPACITY TO APPROXI I 150,000 M3/DAY,
NOTES: (1)WHERE TWO NUMBERS ARE GIVEN THE TOP NUMBER IS THE REPORTED OUTPUT: THE BOTTOM NUMBER IS THE RATED OR THE NOMINAL DESIGN OUTPUT. FOR PORT SAID,ISMAILIA AND SUEZ, ONLY THE REPORTED OUTPUTS ARE SHOWN AND THESE ARE SUBJECT TO CHANGE DUE TO THE PLANT MODIFICATIONS IN PROGRESS. SOURCE OFDATA IS VARIOUS ENGINEERING CONSULTANTS' REPORTS.
(2)SOURCE: ES-PARSONS REPORT, GREATER CAIRO WATERWORKS MASTER PLAN, PART 1 - IMMEDIATE PHASE. PRELIMINARY REPORT, VOL. 2 DECEMBER 1977.
(3)SOURCE: CAMP DRESSER & MCKEE INTERNATIONAL INCORPORATED, ALEXANDRIA WATERWORKS MASTER PLAN REPORT, IMMEDIATE PHASE AND STAGED DEVELOPMENT DRAFT FINAL, July 1978
EXHIBIT 2.2 Page 1 of 2
WASTEWATER TREATMENT PLANTS, SOME LARGE PUMPING STATIONS AND SELECTED FACILITIES
PLANT DESIGNATION OUTPUT LABRTORY WORKSHOP STORES
CAIRO AND HELWAN
ZENEIN SEWAGE 220,000 YES YES I YES TREATMENT PLANT (CURRENTLY BEING EXPANDED TO 330,000 M /DAY)NAHYA SEAE3,000 I I TREATMENT PLANT (PHASING OUT RECOMMENDED BY TAYLOR AND BINNIE)
GABAL ELTREATMENTASFAR21,0 21,00_EYSEI ISEWAGE PLANT YE YS YS
KOSSOUS SEWAGE 218,000 (MAJOR REMEDIAL WORK WOULD BE REQUIRED; TREATMENT PLANT PHASING OUT RECOMMENDED BY TAYLOR AND BINNIE)
I DISPOSALABOU RAWASH PLANT (CURRENTLY USED ONLY FOR ITHE TREATNTI AND _____ _ SEWAGE_218,000QOOF SLUDGE FROM ZENEIN AND NAHYA)
HELWAN TREATMENT PLANT (DESIGNED TOI OPERATE AT 30,000II M3 /DAY _____________ ____________ BUT THE PLANT IS CURRENTLY NOT OPERAT IONAL)
LT a I I
EL TEBIN (DESIGNED TO OPERATE AT 15,000 M3 /DAY BUT PLANTTREATMENT PLANT IS NOT FULLY OPERATIONAL)
AMERIA PUMPING STATION NO YES YES
SOUK EL SAMAK PUMPING STATION 250,000 EIN SHAMS PUMPING(NECOSRTI)
STATION (UNDER CONSTRUCTION)
GIZA PUMPING STATION 323,000 AVG. N YES385,000 MAX. YES
GAMMAA PUMPING STATION 35,000 AVG. 80,000 MAX.
ALEXANDRIA
EAST SEWAGE TREATMENT PLANT
6 65,000
Y YES YES YES
WEST SEWAGETREATMENT PLANT 85,000 (UNDER CONSTRUCTION)
(THE PLANT IS NOT ENCLOSED BY A FENCE, HAS NO OUTSIDE LIGHTING, NO OFFICE OR GARAGE AND I WATER SERVICE. A SMALL STRUCTURE ON SITE IS USED PART TIME BY SUPERINTENDENT AS AN OFFICE.)
26,000 NO NO NO
8,600 NO NO NO
9,600 NO NO NO
(CONSTRUCTED IN THE 1920'S TO PROVIDE PRIMARYSEDIMENTATION, THE PLANT REMAINS BASICALLY UNMODIFIED. THE PLANT HAS NO ELECTRIC"OR POTABLE WATER SERVICES AND NO ACCESS ROAD. A LABORATORYBUILDING WAS PROVIDED BUT IS NOT EQUIPPED A BOOSTER STATION WITH FIRM*CAPACITY-OF 600 LITERS/SEC.- 4-200 LITERS/SEC. 'PUMPS- WASCONSTRUCTED ON SITE IN THE 1960'S. STATION NEVER OPERATED APPARENTLY STRUCTURALLY SOUND AND FULLY EQUIPPED.)
2 N Y 20,000 NO YES YES
Source: Sources of data are various engineering consultant's reports and BVI field notes.
EXHIBIT 2.3Page 1 of 6
PROPERTY MANAGEMENT -RECOMMENDED BUILDINGS AND REAL
PROPERTY INVENTORY SYSTEM
Inventory System
A complete, accurate inventory of assets is the
necessary first step to establish meaningful management
control and an effective preventive maintenance program
for plant facilities. Once established the inventory
should be kept current.
The starting point for such an inventory could be
the report of capital assets evaluation. In fact, an
annual capital evaluation report logically should be
derived from such an inventory. The inventory data
should be assembled in such a way that it can be easily
divided into groupings of assets for which a single
manager is assigned responsibility; e.g., all assets of
a water treatment plant and related pumping stations
should be considered as a single group.
Responsibility
Responsibility for management of the inventory,
including preparation and procedures to keep it current
should be assigned to a headquarters department. An
Asset Accounts Department is recommended for this purpose
in the Management Systems Report on Management Information
Systems. The cognizant department should issue necessary
guidelines and directives concerning when and how the
inventory should be conducted, and should prescribe the
EXHIBIT 2. Page 2 of 6
PROPERTY MANAGEMENT -RECOMMENDED BUILDINGS AND REAL
PROPERTY INVENTORY SYSTEM
detailed contents of the inventory including descriptive
data. The use of a standard format for the inventory data
is suggested. The format should contain appropriate
detailed facilities, buildings and offices data which are
useful to managers at various levels in the preformance
of their planning, budgeting, and operations and maintenance
functions.
Maps
As a part of the inventory, up-to-date site or
station maps should be prepared showing property lines
and the location and identification of all improvements
including buildings, plant structures, roads, walks,
fences and walls. Site maps may be supplemented with
aerial and ground photographs, ana building floor plans.
The site information should be assembled in a convenient
form arranged to show the entire site followed by
increasing amounts of detail. The starting point for
this information are the site maps of the plants prepared
by the consultants who are developing master plans. Maps
of different scales are desirable for different uses.
For the inventory drawings, a scale of 1:1000 and
photographically reduced to a convenient standard size,
i.e., 300 x 420 mm is recommended. For planning future
property improvements, a scale of 1:250 is suggested.
EXHIBIT 2.3 Page 3 of 6
PROPERTY MANAGEMENT -RECOMMENDED BUILDINGS AND REAL
PROPERTY INVENTORY SYSTEM
In addition to site maps and especially for the headquarters use, a smaller scale street map of the entire current and future service area, should be overprinted to show the locations of all plants, pumping stations and
similar property sites.
The Figure on Page 6 of this Exhibit shows the maps
which are used as a part of the system.
Arrangement of
Inventory Information
It is recommended that the inventory information be arranged in seven sections as outlined below. Each section should be built up and improved as information is obtained.
Section Inventory Information
I Service Area Maps
- For treatment plants show overall area served by the system. Brieflydescribe the role of each plant as a part of the system on an attached sheet.
- For headquarters show all plants,networks and operating sites.
List of System Assets
-List all plants, pumping stations, piping and other assets.
- Show original cost and date completed.
- Show subsequent improvements, cost and date completed.
- Show most recent estimated replacementcost and date of estimate.
II
EXHIBIT 2.3 Page 4 of 6
PROPERTY MANAGEMENT -RECOMMENDED BUILDINGS AND REAL
PROPERTY INVENTORY SYSTEM
Section Inventory Information
III Site Maps
- Convenient size, single sheet preferred.
- Show all land area owned or controlled and potential areas for expansion, if any.
- Show all improvements such as buildings, other structures, roads, fences, walls and other improved areas.
- Show all utilities serving the plant.
IV Site Photographs
- Identify each with a brief description of items shown and date photograph taken.
- Use aerial and ground photographs.
V List of Facilities
- List each building, structure and functional system.
- Use a uniform numbering system.
- Use a descriptive name for each item.
- Show original cost and date completed.
- Show subsequent improvements, date completed.
cost and
- Show most recent estimated replacement cost and date of estimate.
EXHIBIT 2.3 Page 5 of 6
PROPERTY MANAGEMENT -RECOMMENDED BUILDINGS AND REAL
PROPERTY INVENTORY SYSTEM
Section Inventory Information
VI Building Floor Plans
- Include plan for each floor of each building.
- Show dimensions and area of rooms.
- Indicate use of rooms by generalclassification such as laboratory,office, machine shop, storage, library or other use.
VII Building Space Assignments
-Use a uniform numbering system.
-Provide a brief description of the utilization of each room or space.
-Identify any facilities which are not used, which are used for other than the intended purpose or which are substandard.
- Describe planned changes in utilization together with date change is to be made.
SUPPLEMENTARY INFORMATION PROPERTY MANAGEMENT MAPS AND SUPPLEMENTARY DATAFOR RECOMMENDED BUILDINGS AND REAL PROPERTY INVENTORY SYSTEM
USE L W ~ .- S'
N'm
/ FST FLOOR BUILDING FLOOR PLAN
SHOW ROOMS AND SQUARE METERS OF FLOOR SPACE.
j2ESCRIPTION/VALUE OF FACILITIE LIST OF STATION FACILITIES
DESCRIPTION/VALUE OF ASSETS LIST OF SYSTEMS ASSETS
0m. Paolwrr, S.A. ow oft 541W
/ SERVICE AREA MAP
SHOWS UTILITY SYSTEM
IPERATING SITES.
s-"NETWORKS AND ALLD D
o% >
EXHIBIT 2.4 Page 1 of 2
PROPERTY MANAGEMENT - IMPROVEMENTS IN PREVENTIVE MAINTENANCE PRACTICES
To correct the deterioration of buildings and related
property assets of the utilities resulting from non-effective
preventive maintenance program, top level management
interest and emphasis should be provided together with
funding support to:
- Provide for personnel at the various locations or groups of locations to perform the buildings and grounds maintenance, or
- Enable contracting with outside sources to perform buildings and grounds maintenance services on a continuing basis.
Both of these approaches may be used, depending
on location, personnel restrictions, workload, cost and
local considerations.
In either case, but especially if it is decided to
use in-house resources, consideration should be given
to establishing a Facilities Engineer staff position at
each treatment plant and major pumping station, or groups of
plants and stations, together with a similar position on the
headquarters staff of each utility to provide technical
coordination and guidance. The Facilities Engineer should
report to the Plant Manager. Separate technical coordination
should be established between the Facilities Engineering staff
at each plant and the headquarters Facilities Engineering staff.
EXHIBIT 2.4 Page 2 of 2
PROPERTY MANAGEMENT - IMPROVEMENTS IN PREVENTIVE MAINTENANCE PRACTICES
The Facilities Engineer should be assigned the
responsibility for:
- Building maintenance.
- Housing maintenance.
- Grounds maintenance.
- Custodial services.
- Maintenance of roads and surfaced areas.
- Maintenance of walls and fences.
- Irrigation and drainage.
All personnel assigned to perform work for which
the Facilities Engineer has responsibility should be
under his supervision and control.
Regardless of the approach selected, top management
interest and concern should continually be given to this
problem area. Some of the ways that this could be done
include:
- Advising the organization that improvements are expected.
- Inspections and visits.
- Use of property maintenance conditions as a measure of manager performance.
- Ensuring continuing budget support at reasonable levels.
(See the Procedures and Methods Report, Exhibit 3.4,
for further discussion of facilities engineering.)
EXHIBIT 2.5
PROPERTY MANAGEMENT-IMPROVEMENTS IN BUILDING AND GROUNDS HOUSEKEEPING
A conscientiously applied housekeeping program
throughout all facilities is recommended as necessary to
remove safety hazards and enhance employee morale.
Implanting in all employees an attitude of care and pride
in their place of work is a major challenge to management
at all levels.
This is such a long-standing problem that its
correction will require an extraordinary and concerted
effort emanating from top management levels. It will
also require long-term attention.
To start a corrective program the following suggestions
are offered:
- Prior publicity of objective and declaration of a utility-wide annual "clean-up, put-itwhere-it-belongs and repair-it-now" week. Budget to support this effort.
- Installation of trash receptacles in office buildings.
- Coordination of daily building clean-up and trash removal times to insure a clean building every morning.
- Initiation of an annual award to the "best plant", "best office" or "best maintenance shop" as a means of obtaining interest in raising standards.
(See the Procedures and Methods Report, Paragraph 3.2,
for further recommendations concerning building and grounds
housekeeping.)
3.0 WAREHOUSES AND STORAGE YARDS
Both the water and wastewater utilities systemsuse
of separate, dispersed warehouses and storage yards, and
smaller stores buildings, supply or parts rooms or storage
areas at the principal operating plants and stations.
Chemical stocks for water treatment are generally stored
at the operating plants. Warehouses and storage facilities
are important assets in the logistical support systems.
This Section reviews the suitability and adequacy, and
control policies and maintenance practices with respect
to these assets. The Section also includes recommendations
for improvements and estimates of future needs.
3.1 FINDINGS AND CONCLUSIONS
3.1.1 Adequacy of Assets
The systems in use have merit and will become
increasingly important as the utilities expand their
operations. Water utilities in the Canal cities benefit
from relatively strong back-up logistical support from the
Suez Canal Authority. Overall the current systems may have
been suitable and adequate at an earlier time, but the
logistical situation has been changing (as have the
service areas) and can be expected to undergo significant
changes in the future which will probably make the existent
marginal support inadequate. Effective, responsive and
economical operation of logistical support activities
is critical to the utilities in successfully providing the
3-2
services for which they are responsible. The findings of
this Study of these assets are that improvements are
needed in the two problem areas identified in the following
paragraphs:
3.1.1.1 Warehouses and storage yards are becoming increasingly inadequate with respect to space and
distribution. Evidence of the need for additional storage
space is indicated by several factors:
-Large amounts of uncrated spare parts are scattered throughout the warehouse and operating areas.
- Chemicals for water treatment are beingstored in congested plant areas. Reportedstock-outs of essential chemicals suggestthe need for stocking larger quantities.
- All warehouse managers queried cited anddemonstrated a need for additional warehouse space.
- Repair parts inventories will continue toincrease as new plants are constructed and put into operation.
- Offices at some storage locations are crampedand poorly equipped to carry out any increased level of activity.
A corollary problem is that some repair parts and plant
components have been placed in open areas where they have
remained for periods of months or years without being
uncrated or inspected. Deterioration of markings may cause
problems in identification of the items, and prior and
continued exposure may have caused serious damage to the
items themselves.
3-3 Evidence of a need for better strategic locations of the
warehouses and storage yards is indicated by: -The fact that existing properties in most cases are located in older areas to support
then existing plants, service areas andpopulations. These requirements have been changing.
-A need for better distribution as expressedby headquarters-level officials and advocatedby operating officials. (Officials of GOGCWSindicated that they are planning to establish a new warehouse to facilitate distribution.The proposed location and utilization of the new facility have been reviewed.)
- The anticipated further rapid expansion ofwater and wastewater systems into new areasand construction of new treatment plants at new locations.
The situation developing as a result of the emerging
master plans, programs for new facilities construction,
and the large number and types of stocked items in the warehouse system appears to offer opportunities for
improvements in the warehouse operations which should be carefully evaluated because of significant potential cost
savings, especially in Cairo.
3.1.1.2 Warehouse and storage yard layouts are not
optimum for operating efficiency. This problem does not exist at all yards; however, it is pronounced in certain
facilities where the storage facilities are co-located with an operating plant. For example, the problem at Ameria is
evident from the following observations:
- Access to the warehouse and maintenance shopsis through the plant area.
- There are no directional signs or an established traffic pattern.
- Roads through the plant to the warehouses are
paved and not well maintained.
- Access to the meter shop is by footpath only.
3-4
- Space around buildings is cluttered with discarded items and rubbish.
- Storage yards contain excessive quantitiesof unclassified, discarded and unservicable parts, including vehicles and packingmaterials from new parts shipments which are not being disposed of in a timely manner.
The adequacy of the warehouse system can be improved by
careful study of the warehouse operations and existing
facilities with the objective of making the system as
efficient as possible.
3.1.2 Control Policies and
Maintenance Practices
The problems of record-keeping, property accountability,
preventive maintenance and housekeeping discussed in Paragraph
2.1.2 also were noted at warehouses and storage yard
locations of both the water and wastewater utilities.
In general the warehouses and storage yards of the sewage
treatment plants and pumping stations have fewer problems
than the water utilities because fewer items of equipment
and materials were found. This situation reflects in part a
lower level of operations than the water utilities. While
many of the water treatment plants are operating with outputs
above their rated capacity, all of the sewage treatment plants
are failing to meet their design objectives. This situation
is expected to change as sewerage services are upgraded and
expanded. In Cairo, for example, funds for implementation of
top priority projects in the Greater Cairo Wastewater Master
Plan have been identified. Consequently the major impacts on
the warehouses and storage yards will be felt in the future
as the new projects are completed and new facilities put in
operation.
3-5
3.2 RECOMMENDATIONS
3.2.1 Interim Period
3.2.1.1 Adequacy of assets. While the warehouses
and storage yards are generally suitable and adequate
to support the current level and mode of operations,
there are improvements which should be made to increase
efficiency:
- Develop a plan for better utilization of available space, considering:
. Improvements in access routes according to a directed traffic pattern.
. Paving of storage areas and roads.
" Removal of excess items and rubbish.
. Building modifications, e.g.,installation of warehouse doors, shelving and bins, and loading ramps.
- Establish salvage and property disposal areas to facilitate segregation, control and disposal of excess and salvage property;e.g.,similar to the enclosed area for this purpose at the Ameria Sewage Pumping Station.
- Issue instructions on disposal and salvage and implement a program of inspection and follow-up reports. This aspect of inventory management will be dealt with in the Procedures and Methods Report.
3.2.1.2 Control policies and maintenance practices.
The control policies and maintenance practices described
in Paragraph 2.2.1.2 are applicable to warehouses and
storage yards.
3-6
3.2.2 Long-Term
3.2.2.1 Adequacy of assets. Because of planned
significant expansions of the utilities systems and the
increasing importance of logistical support to satisfactory
operations and maintenance, detailed studies of warehouse
operations are required, particularly in the Cairo area
because of its large size. Studies of both the water and
wastewater warehousing systems are recommended. The studies
should derive the optimum mode of warehouse configuration and
operations based on careful analysis of:
- The full range of stores items in the supply system.
- The locations of treatment plants, pumpingstations and other operating facilities to be supported.
- The consumption rates of supplies, repair parts and materials required by the operating facilities.
-The storage practices at each warehouse and storage yard, considering the following factors:
Indoor or outdoor storage.
• Bulk or packaged.
. Degree of protection required.
Quantities being handled.
* Frequency of storage.
Storage and handling facilities required.
Applications of these factors will vary between Cairo, Alexandria and the Suez Canal sites.
- Transport modes and types of vehicles and materials handling equipment available for:
. Incoming shipments.
. Outgoing shipments.
3-7
Factors involved in the selection of materials handling equipment include:
• Design of the equipment.
" Flexibility of the equipment.
" Type of power.
" Maintenance and repair requirements.
" Standardization.
" Training required.
- The locations of present main and subsidiary warehouses and storage facilities and the availability of real estate both at existing facilities and at other locations if it is considered more advantageous to establish a warehouse at a new site.
Estimates of the requirements for warehouses and storage
yards during the next ten years are shown in Table 3.1 on the
following page. Detailed development of the projections is
explained in Appendix 1.
3.2.2.2 Control policies and maintenance practices.
Implementation of the recommendations outlined in Paragraph
2.2.1.2 will provide the required control policies and property
management tools, including an adequate preventive maintenance
program, to meet the needs of the utilities during the next
ten years.
TABLE 3.1
WAREHOUSE AND STORAGE YARDS REQUIRED BY THE WATER AND WASTEWATER UTILITIES DURING THE NEXT TEN YEARS
ESTIMATED ESTIMATED CURRENT)CITY UTILITY
CURRENT LEVEL (' ADDITIONAL NEED (2)AMOUNT VALUE AMOUNT VALUE
(Meters2 ) (LE 1,000's) (Meters2 ) (LE 1,000's)
Cairo and Water 3,703 202 1,247 68 Helwan Wastewater 2,520 136 1,080 58
Notes: (1) No inventory of current warehouses and storage yards isavailable. Development of estimated amounts is explained in Appendix 1.
(2) New and replacement requirements. Includes Estimated Current Additional Need.
AMOUNT
(Meters2 )
3,350
2,917
1,250
583
417
367
417
367
417
367
5,851
4,601
TEN YEAR PROJECTED ADDITIONAL NEED(2)
VALUE
(LE 1,000's)
201
175
75
35
25
22
25
22
25
22
351
276
0
4.0 OFFICE SUPPLIES AND EQUIPMENT
The snpcific types of assets included in the category
of office supplies and equipment include furniture,
typewriters, copying machines, expendables for office
operations, drafting room equipment, and library and
library equipment. This Section evaluates the adequacy
of th. se assets, the control policies and preventive
maintenance procedures used with respect to them, and
makes recommendations for improvements. Projected
requirements foi' office supplies and equipment are provided.
4.1 FINDINGS AND CONCLUSIONS
4.1.1 Adequacy ot' Assets
Office supplies and equipment (except for furniture
items) are very limited throughout the organizations.
Under the present mode of operation, the requirements
for typewriters, filing cabinets and office expendables
are minimal. Many of the forms used at the plants and
warehouses are designed and used for handwritten entries.
Most of the drafting equipment in use is very old. No
library facilities or equipment were found at the water
and wastewater treatment plants. Deficiences noted with
respect to the adequacy of these assets are:
- Some furniture items are worn out.
- Some furniture items are outmoded and are not the best type available for modern office use:
" Large overstuffed chairs
" Sofas
• Oversized wall cabinets which are not efficient in the use of space
- Inadequate facilities for map storage
- Worn-out or missing drafting room equipment
- Inadequate library facilities
- Lack of certain office equipment. particularly copying machines and typewriters at various headquarters
4.1.2 Control Policies and
Maintenance Practices
In general the control over office supplies and
equipment appears to be very informal. There are no
written procedures or guidelines. Principal findings are:
- Responsibility for equipment and supplies is not clearly assigned.
- There is no working program for replacement of outmoded or worn-out office equipment and furniture items.
- There is no effective maintenance program for office furniture and equipment.
4.2 RECOMMENDATIONS
4.2.1 Interim Period
4.2.1.1 Adequacy of assets. For the deficiencies noted,
the following corrective actions are recommended:
-Conduct surveys to determine replacement items and new equipment and supplies needed for office and drafting functions. Procure needed items.
-Procure additional copying machines and typewriters for the headquarters offices.
- Develop improvements in the arrangement of office furniture and in the filing of documents. For example, install a system of hanging files for working drawings and maps. Such a system may be fabricated using pairs of thin wooden slats onemeter long fastened together with removable screws. A series of drawings can be securely fastened to the slats by inserting one edge of the drawingsbetween the slats and fastening the slats togetherwith three screws. Slats can be numbered and anindex prepared to identify all map sheets in each set of slats. The slats can be hung on racks along a wall. A flat surface covering the lower racks could serve as a convenient area for working withthe maps. Originals or record copies should be stored flat, protected from dust in cabinets andhandled only when necessary. (See the Procedures and Methods Report, Section 6.0, for further discussion of mapping and record-keeping.)
- Establish technical libraries at the operatingplants. (See Exhibit 14.1 for details.)
4.2.1.2 Control policies and maintenance procedures.
The following improvements are suggested:
-Institute a property accountability system wherebyoffice managers are required to acknowledge receiptfor the equipment in their offices. Receipts forthe property should be renewed every 12 months.
-Initiate a program for inspection, repair and gradualreplacement of office furniture. Include in this program a redistribution of serviceable or excess filing cabinets, desks and chairs.
4-4
- Institute a program for performing preventive maintenance on all office equipment using:
" In-house resources, and/or
" Contract services as may be necessary for specialized and new equipment such as copying machines.
4.2.2 Long-Term
4.2.2.1 Adequacy of assets. Employee effectiveness and
operational efficiency would benefit by gradual modernization
of the offices, consistent with the requirements of the
Egyptian environment (e.g., reliability of electrical power)
and the availability of equipment service. The importance of
modernization will increase as the utilities expand their services.
The introduction of typewriters and copying machines at
the operating plants is recommended to facilitate plant
correspondence, dissemination of written information and clari
fication of records. Requirements should be determined on a
work unit-by-work unit basis with cost effectiven,ss as the
primary factor to be considered.
Furniture items including some desks, filing cabinets,
chairs and wall cupboards, while serviceable, are generally
old and not very efficient for the limited office space. These
items should be phased out and replaced with modern office
equipment.
Estimates of the requirements for additional office supplies
and equipment during the next ten years are shown in Table 4.1
on the following page. Detailed development of the projections
is explained in Appendix 1.
TABLE 4.1 OFFICE SUPPLIES AND EQUIPMENT REQUIRED BY THE
WATER AND WASTEWATER UTILITIES DURING THE NEXT TEN YEARS(1)
CITY UTILITY
ESTIMATED CURRENT LEVEL (2)
AMOUNT VALUE
ESTIMATED CURRENT ADDITIONAL NEED(2)
AMOUNT VALUE (Percent current need)
(LE 1,000's) (Percent current need)
(LE 1,000's)
Cairo and Water 75% 1,753 25% 584 Helwan Wastewater, 70 1,179 30 505
Notes: (1) Includes expendable supplies.(2) No inventory of office supplies and equipment is
available. Development of estimated amounts is explained in Appendix 2.
(3) New and replacement requirements. Includes Estimated Current Addltlnn1 MPP8
AMOUNT (Percent current need)
74%
90
78
152
92
277
92
277
92
277
TEN YEAR PROJECTED ADDITIONAL NEED(3)
VALUE (LE 1,000's)
1,738
1,516
652
294
197
177
197
177
197
177
2,981 2,341
4-6v
4.2.2.2 Control policies and maintenance procedures.
Development of more formal written policies and procedures
for the control and maintenance of office supplies and
equipment assets is recommended to include:
- Record-keeping. Institute an accountability system which includes a complete physical inventory of office property and the requirement that each operating manager acknowledge receipt on an annual basis of all equipment used by his office.
- Preventive maintenance. Initiate a system for the periodic check-up, servicing and adjustment of office machines such as typewriters and copying machines. For new equipment include servicing as a part of procurement.
- Repair versus replacement and acquisition and disposal. Prepare written guidelines which provide policies, instructions, criteria and conditions which are the bases for making decisions regarding repair versus replacement and acquisition and disposal of various types of office equipment. Guidelines should cover:
* Inspections to determine serviceability.
* Justification required for replacement or purchase of additional new items.
Procedures for salvage or disposal of worn-out, unserviceable, outmoded or unsatisfactory items.
EXHIBIT 4.1
ESTABLISHMENT OF PLANT LIBRARIES
An additional opportunity for improvement of the
administrative support of plant operations was noted
during field visits. It was observed that whereas GOSSD
apparently has a central technical library in the
headquarters building, no usable library facilities
were found at the plants visited. Unless reference
materials are readily available, operating and laboratory
personnel are handicapped in the performance of their
duties. Consequently it is suggested that smaller
libraries be established at each plant and laboratory.
Existing facilities may be used where adequate
space is available. Plans for new facilities should
provide for library space.
If central control of library material is desired,
the central (headquarters) library can maintain a card
file of all books and reference materials so that these
items can be located when needed.
One method of stocking the libraries would be to
have individuals who go abroad for training select and
purchase appropriate materials.
(See the Procedures and Methods Report, Exhibit 1.2,
and References of the Exhibits for Section 6.0 of the
Personnel Systems Report for a basic list of books and
reference materials. Manufacturers' literature and reference
material should also be considered for plant libraries.)
5.0 SUPPLIES AND EQUIPMENT FOR OPERATIONS AND MAINTENANCE
In terms of quantities and diversity of items and
total cost, the assets required to operate and maintain
the water and wastewater utility systems greatly exceed
those for any other category. Major types of items include
spare and replacement parts, materials handling and power
operated equipment and machines (for plants, warehouses,
shops and pipeline systems), tools, shop and garage
equipment, and facilities for storing and handling fuels
and lubricants. (See Exhibit 1.2). Both the water and
wastewater utilities require supplies and equipment to
operate and maintain widely dispersed treatment plants,
pumping stations and pipeline systems as well as the
administrative offices and other support facilities.
This Section presents the findings, conclusions and
recommendations resulting from review of these assets and
provides a projection of ten-year needs.
5.1 FINDINGS AND CONCLUSIONS
5.1.1 Adequacy of Assets
5.1.1.1 Water utilities. Several problem areas
relative to the adequacy of supplies and equipment for
5-2
operations and maintenance have been noted:
- Non-availability of critical spare parts
- Lack of materials handling equipment
- Lack of tools
- No facilities for cleaning, maintenance and storage of tools
- Poorly equipped maintenance shops, notably for vehicle servicing and repairs
These problems, to a greater or lesser degree, were
voiced by plant managers, engineers and other supervisors
or were observed during visits to plants and maintenance
shops for mechanical and electrical equipment, vehicles,
and water meters in Alexandria, Cairo, Ismailia and
Port Said.
Concern for shortages of critical spare parts for
operating equipment was expressed at several levels of
management indicating that these problems are being
observed and are being dealt with by management.
Management also appears to be aware (or is being made
aware) of inadequacies in equipment, tools and shop
facilities and there is evidence that some corrective
actions are being taken. For example, the Five-Year Plans
for Water Projects obtained during field visits to
Ismailia and Port Said contain a number of general
purpose facility and maintenance-related items as shown
in Table 5.1.
5-3
TABLE 5.1
FIVE YEAR PLAN FOR WATER PROJECTS
ITEM yALUE IN LE (THOUSANDS) YEAR(S)
LOCAL FOREIGN ISMAILIA
NEW BUILDINGS FOR CHEMICALS 100 900 1980-1982 REPAIRS TO OLD STATION BUILDING' 10 0 1978 ERECT PREFAB STORES BUILDING 10 0 1978 CONSTRUCT METER WORKSHOP 20 0 1979 CONSTRUCT CHEMICAL STORES 10 0 1979 MAINTENANCE EQUIPMENT 0 115 1979-1980
TOTAL 150 1,015
PORT SAID
CONSTRUCT PUMPS AND CHEMICALS BUILDING 80 0 1978 CONSTRUCT WORKSHOPS FOR WATER STATIONS 50 0 1979-1980 CONSTRUCT/PREPARATION OF METERS WORKSHOP 2 8 1979 SUPPLY AND FITTING OF GAUGE EQUIPMENT 13 35 1979 EQUIPMENT FOR OPERATIONS AND MAINTENANCE 108 1979-1980
TO A 145 151
Further, the Waterworks and Wastewater Facilities
Master Plans being prepared for Ismailia and Port Said
suggest operations and maintenance tools, equipment,
supplies and vehicles which should be obtained on a
priority basis. (See Exhibits 5.1 and 5.2.) It appears
that this area has been studied and corrective actions
are being proposed to remedy the inadequacy of supplies
and equipment for operations and maintenance functions.
5-4
5.1.1.2 Wastewater utilities. Relative to water
production operations, sewage treatment operations are
small. Gauged in terms of treatment plants, for the areas
studied, there are 20 operating water treatment stations
compared to 5 or 6 operating wastewater treatment plants
out of a total of 12. The prevalent situation with
respect to the operations and maintenance of the sewage
treatment plants is that the plants are basically designed
and operated for primary treatment only (except the
Zenein and Alexandria plants) and all are either:
- In such a state of disrepair that majorreconstruction and renovations or modifications are necessary to enable the plants to produce an acceptable effluent, or
- Are operating at flows in excess of rated capacity and in such a manner that the degree of treatment is below the level for which the plant was designed.
In addition, the sewage collection systems are characterized
as grossly overloaded, half-filled with sand and inadequate
to meet service requirements. Despite these inadequacies,
the sewerage utilities continue to make service hook-ups.
The effects of these conditions on requirements
for materials and equipment needed for operations and
maintenance are:
- Few treatment plants in the system and even fewer in service has resulted in reduced comsumption of supplies and low utilization of equipment.
5-5
- The low level of operations and the consequent low demand for plant supplies and equipment has resulted in a reduced supply system which appears to be adequate to handle the present job.
- The gross inadequacy of the collection system and the continuing requirement to make service hook-ups has forced the attention of the operating utilities into almost daily corrections of recurring sewer blockages, overflows and local flow-related problems.
The key problem in the sewerage utilities - that
existing facilities are inadequate to meet current and
projected flows - has been recognized by engineering
consultants and is being addressed through major capital
expenditures for new facilities under programs for
selective implementation of the master plans.
The sewerage systems are in the midst of rapid
growth and general upgrading to secondary treatment
levels. This correction affords the opportunity to
adjust the operations and maintenance activities of the
utilities. An initial stock of supplies and equipment
to operate and maintain the new facilities is being
provided with the new facilities. The specific provisions
in the capital expenditure programs for new facilities
should be carefully reviewed with respect to supplies
and equipment for operations and maintenance as the
projects in the program are established. The following
items, if not included in the budgets, should be obtained
through other sources in order to enable the new facilities
5-6
and equipment to be operated and maintained properly:
-Equipment operations and maintenance manualsparts lists and related services publications.
-Adequate record drawings of all new facilities.
-Provision of complete support facilities, where appropriate, such as offices, laboratories, workshops with equipment, vehicles, communication equipment and warehouses.
- Sufficient spare parts and spare units to keep the equipment operating for at least five years.
- Specifications for all required lubricants. Sufficient lubricants initially to fill all lubricant reservoirs and replace consumptionduring the start-up period.
- All special tools required to service and maintain the equipment.
5.1.2 Control Policies and
Maintenance Practices
Problems of control policies primarily relate to
record-keeping, and acquisition and disposal practices.
There are no written guidelines for such control over
assets. Evidence of problems is indicated by the large
quantities of repair parts and salvage components which
are accumulating in the plants and storage yards, and
the shortages of critical supplies and equipment needed
for operations that were reported during plant visits.
Improvements are needed primarily in inventory management
and disposal practices.
5-7
5.2 RECOMMENDATIONS
5.2.1 Interim Period
5.2.1.1 Adequacy of assets. Deficiencies of supplies
and equipment for operations and maintenance do exist but
appear to have been identified through the technical
studies conducted under the master plans or to have
otherwise been recognized by management as discussed
in Paragraph 5.1. A program of follow-through action
should include systematic review, financing and
implementation of the improvements which have been suggested.
5.2.1.2 Control policies and maintenance practices.
Reccmmendations for improvements in inventory management
and property disposal practices are provided in the
Procedures and Methods Report, Section 5.0.
5.2.2 Long-Term
5.2.2.1 Adequacy of assets. Estimates of the
requirements of supplies and equipment for operations
and maintenance during the next ten years are shown in
Table 5.2 on the following page. Detailed development
of the projections is explained in Appendix 1.
5.2.2.2 Control policies and maintenance practices.
Recommendations dealing with control policies and practices
with respect to supplies and equipment for operations and
maintenance are provided in the Procedures and Methods
Report, Section 5.0.
TABLE 5.2 SUPPLIES AND EQUIPMENT FOR OPERATIONS AND MAINTENANCE REQUIRED BY THE
WATER AND WASTEWATER UTILITIES DURING THE NEXT TEN YEARS(1)
Total Water, 42,074 14,025 Wastewater 21,048 9,428
Notes: (1) Includes expendable supplies.(2) No inventory of office supplies and equipment is available.
Development of estimated amounts is explained in Appendix 2.(3) New and replacement requirements. Includes Estimated Current Additional Need.
AMOUNT
(Percent current need)
74
90
78
152
92
273
92
273
92
273
TEN-YEAR PROJECTED ADDITIONAL NEED(3)
VALUE
(LE 1,000's)
25,571
22,302
9,595
4,332
2,900
2,594
2,900
2,594
2,900
2,594
43,866
34,416
2
EXHIBIT 5.1 Page 1 of 4
RECOMMENDED LIST OF EQUIPMENT FOR SYSTEMS REPAIR AT ISMAILIA
Water Utility
Instruments Quantity
Pipe locator
Geophone 3
Pitometer rod 2
Pressure gauge tester 1
Test pressure gauge 4
Portable pressure recorder 4
Fire hydrant pitot tube 2
Electrical test equipment (set) 2
Operations and Maintenance Equipment
Portable chlorinator 1
Field lathe for AC pipe 1
Wet tapping machine 4
Pipe threading equipment (10 mm to 100 mm) 1
Power cut-off machine for cast iron pipe 1
Metal-cutting band saw with remote pipe support 1
Pipe reaming equipment 2
Two-ton platform scale 1
DC arc welder with engine-driven generator 1
AC arc welder 1
Oxy-acetylene gas cutting, brazing and welding outfit 1
Portable AC generator 1
Grinder on floor stand 1
EXHIBIT 5.1 Page 2 of It
RECOMMENDED LIST OF EQUIPMENT FOR SYSTEMS REPAIR AT ISMAILIA
Operations and Maintenance Equipment (Cont'd) Quantity
Portable electric hand grinder 2
Combination vise 2
Chain vise 2
Pipe vise 2
Anvil - 50 kg. 1
Anvil - 150 kg. 1
Pipe pressure testing equipment for field use 1
Forge 2
Portable crane for shop and yard use 1
Portable 5 hp air compressor 2
Pneumatic valve wrench 2
Electric (12 volts) valve wrench 2
Metalizing equipment 1
Ratchet wrenches (metric measure) 2
Hydraulic shop press (100 ton OTC type) 1
Tap and die set (English measure) 1
Tap and die set (metric measure) 1
Threading die set (metric measure) 1
Mechanic hand tools (set) 4
Manual diesel injector tester 1
Engine cylinder honing and ring compressor and valve grinding tool 1
Floor type drill press 1
Platform truck 2
Flange spreader 2
EXHIBIT 5.1 Page 3 of 4
RECOMMENDED LIST OF EQUIPMENT FOR SYSTEMS REPAIR AT ISMAILIA
Operations and Maintenance Equipment (Cont'd) Quantity
Milling machine 1
Jack hammer 2
Sand blasting equipment 1
Pneumatic spray painting equipment 1
Pipe bending machine (to 100 mm) 1
Vehicles
Service van (1/2 ton) 2
Pickup truck (3/4 ton w/l/2 ton crane) 1
Pickup truck crew cab type - 3/4 ton 2
(Each piece of equipment shall be fully equipped)
Source: Obtained from Plant Manager, Ismailia Water Treatment Plant on 11/4/78. (This is Metcalf and Eddy's recommended list of equipment for systems repair.)
EXHIBIT 5.1Page 4o
RECOMMENDED LIST OF EQUIPMENT FOR SYSTEMS REPAIR AT ISMAILIA
Notes: (1) No inventory of current transportation equipment is available. Development of estimated amounts is explained in Appendix 1.(2) New and replacement equipment. Includes Estimated Current Additional Need.
AMOUNT
(Percent current need)
74%
90
78
152
92 273
92
273
92
273
TEN-YEAR PROJECTED ADDITIONAL NEED(2)
VALUE
(LE 1,000's)
5,181
4,518
1,944
876
587 525
587
525
587
525
8,886
6,969
7-6
7.2.2.2 Control policies and maintenance practices.
Implementation of the recommendations outlined in
Paragraph 7.2.1.2 will provide for gradual upgrading of
transportation vehicles.
For further improvements in the effectiveness and
efficiency of vehicle maintenance, the maintenance function
should be centralized within each utility. Implementation
of the centralization program should include expansion and
upgrading of maintenance shops and procurement of more
modern tools and equipment for servicing and repairs.
EXHIBIT 7.1 Page 1 of 5
REPAIR VERSUS REPLACEMENT POLICY
Need For A Policy
Decisions regarding repair versus replacement of
major items of equipment are apparently made by top
management on the basis of personal experience and
judgment. This approach leads to erratic decisions and
unnecessary involvement of top managers in detailed
decision-making. A rational policy for repair versus
replacement should be established so that decisions are
made consistently and at a lower level in the organization.
Top management could then limit itself to setting policy
and considerations of exceptions to policy.
Scope
Repair versus replacement policy should apply to
major items like trucks that must be overhauled periodically
at considerable expense. Routine day-to-day maintenance
should not be included.
Factors To Consider
In deciding whether to repair or to replace, the
age of the item, the estimated cost of repairs to return
it to serviceable condition and the replacement cost are
the key information that must be determined. Age is
important since it makes little economic sense to spend
more repairing an item than it is worth when repairs are
complete. Repair costs, including labor, administrative
EXHIBIT 7.1
Page 2 of 5
REPAIR VERSUS REPLACEMENT POLICY
and overhead costs must be estimated relatively accurately
so that the decision can be made on the basis of realistic
information. Since inflation always makes new purchases
more costly than previous purchases, it is important to use
replacement cost rather than historical cost in making repair
versus replacement decisions. If the cost of a replacement
item should happen to be less than historical cost the amount
to be spent making repairs should be reduced accordingly.
Procedure
A typical repair versus replacement chart and table
are shown on Page 4 of this Exhibit. This chart could be used for motor vehicles. A life of five years has been
selected to coincide with the life used for depreciation
of vehicles. Since an overhauled vehicle is not quite
equivalent to a new vehicle delivered directly from the
factory, a maximum of 75% of replacement cost has
been selected as the upper limit for overhaul. During the
early period of a vehicle's life, major overhaul is most
likely to result from an accident. Later, overhaul may be
caused by the failure of a major component such as an engine
or transmission or by a combination of accident and wear.
Regardless of the reason for overhaul, the chart and table
can be used. A similar approach can be used for any major
item, e.g., office machines, construction equipment and
process equipment. A suggested Repair versus Replacement
Worksheet is shown on Page 5.
EXHIBIT 7.1 Page3 of
REPAIR VERSUS REPLACEMENT POLICY
Exceptions
There are several reasons why top management may
elect to make an occasional exception to the established
repair versus replacement policy. One of the more
important reasons is the unavailability of a replacement
unit. Under these conditions, management may decide to
repair regardless of cost since providing adequate service
must be given priority over economics in decision-making.
Another reason is obsolescence or standardization. When
an item is nonstandard or has become obsolete, a much
shorter life should be used in establishing the repair
versus replacement plicy.
EXHIBIT 7.1 Page 4 of 5
REPAIR VERSUS REPLACEMENT POLICY
REPAIR VERSUS REPLACEMENT CHART cn l00 0
00 80
N 470 90
60
50
40
S30
20
10
1 2 3 4 5
AGE IN YEARS
TABLE
MAXIMUM REPAIR COST AGE AS PERCENT OF
IN YEARS REPLACEMENT COST
0.5 68 %
1.0 60
1.5 53
2.0 45
2.5 37
3.0 30
3.5 22
4.0 15
4.5 7
5.0 0
REPAIR VERSUS REPLACEMENT POLICY
REPAIR VERSUS REPLACEMENT WORKSHEET
Estimated Cost of Repairs
New Parts Description
Labor Classification Rate
Administrative Cost
Overhead Cost
Total Cost LE
Replacement Cost
Percentage from chart
Justifiable repair cost LE
EXHIBIT 7.1 Page 5 of 5
Date
Cost
Cost
ORepair E]Replace
Signature of Estimator
8.0 SUMMARY
8.1 SUMMARY OF FINDINGS AND CONCLUSIONS
Summaries of the problem areas related to the
physical assets of the water and wastewater utilities,
are shown in Tables 8.1 and 8.2 respectively on the
following pages. The principal findings and conclusions
with respect to each category of assets are discussed in
the following Paragraphs, first regarding suitability and
adequacy and second regarding control policies and practices.
It is generally concluded that, except for
communications facilities which are entirely inadequate,
the existing assets of the water and wastewater utilities
permit marginally acceptable levels of service. Relatively
the wastewater utilities are less capable of meeting
future expansion than are the water utilities. In both
systems and at all locations, many improvements could be
made to provide a higher level of service more efficiently
and economically. These improvements should be made as
a first step toward better application of the utilities
resources to meet future needs regardless of the organiza
tional structure adopted. The improvements are basically
the. use of more formal control systems and better
management of the assets.
TABLE 8.1
DIAGNOSIS OF PROBLEM AREAS - WATER UTILITIES
ASSETS Suitability Adequacy Record Keeping
Policies and Practices Preventive Repair versus Maintenance Replacement
Acquisitionand Disposal
Buildings and Offices 7 5 2 2 3 5
Warehouses and Storage Yards 5 3 2 2 3 5 Office Supplies and Equipment
Supplies and Equipment for Operations and Maintenance
7
3
5
2
3
4
2
N=2, P=2
2
2
2
2
Communications Equipment
Transportation Equipment
N=l 0=4 P=3 N=4 0=6
N=l o=4 P=3 N=4 0=7
4
4
2
2
3
3
4
3
P=6 P=6
Problem area scores are based on a range from 0 (very severe problems requiringimmediate corrective action) to 10 (no significant problem).
Symbols: N 0 p
= Networks; = Office-; = Treatment Plants and Pumping Stations
0
TABLE 8.2
DIAGNOSIS OF PROBLEM AREAS - WASTEWATER UTILITIES
Policies and Practices ASSETS Record Preventive Repair versus AcquisitionSuitability Adequacy Keeping Maintenance Replacement and Disposal
Buildings and Offices 5 4 2 2 3 5
Warehouses and Storage Yards 6 5 2 2 3 5 Office Supplies and Equipment 7 5 3 2 2 3 Supplies and Equipment for Operations and Maintenance 3 2 3 2 3 3
P=t P=6 Problem area scores are based on a range from 0 (very severe problems requiringimmediate corrective action) to 10 (no significant problem).
Symbols: N = Networks; 0 = Offices; P = Treatment Plants and Pumping Stations
ci
8-4
8.1.1 Adequacy of Assets
8.1.1.1 Buildings and offices. The types and
amounts of buildings and office space in use and available
for use by the utilities are generally suitable and
adequate for the plants and field network operations.
There are some noticeable exceptions at the wastewater
treatment plants. Some of the offices within the GOGCWS
and GOSSD (Cairo) headquarters buildings are cramped for
the current numbers of employees.
Neglect of building maintenance can cause buildings
and offices to become inadequate.
8.1.1.2 Warehouses and storage yards. Warehouses
and storage yards are generally suitable and adequate to
support the current level and mode of operations.
Looking to the future expansion of utilitie services,
the need for better strategic locations of main warehouses
will become more important.
8.1.1.3 Office supplies and equipment. Office
supplies and equipment are very limited but are generally
suitable and adequate to support the current level of
operations. Nearly all forms and records are designed
and used for handwritten entries and appear to be
consistent and satisfactory with this mode of operation.
Employee effectiveness and operational efficiency
would benefit by gradual modernization of the offices
consistent with the requirements of the Egyptian environment
and the availability of equipment service. The importance
of modernization will increase as the utilities expand their
services,
8-5
Furniture items, including some desks, filing
cabinets, chairs, and wall cupboards, while serviceable,
are generally old and not the best equipment for the
limited office space.
8.1.1.4 Supplies and equipment for operations and
maintenance. Shortages of supplies and equipment for
operations and maintenance do exist but appear to have
been identified through the technical studies conducted
under the master plans or to have otherwise been recognized
by management as discussed in Paragraph 5.1.1.
8.1.1.5 Communications equipment. Communications
equipment available to the water and wastewater utilities
are not adequate to meet their operational needs. A
solution to this problem through sources outside of the
utilities is highly unlikely in the foreseeable future.
8.1.1.6 Transportation equipment. While the types
and amounts of transport equipment appear to be suitable
and adequate for the current mode of operations, many
complaints concern the serviceability of assigned vehicles.
Approximately 30% of the transport vehicles are reported
as being marginally serviceable or unserviceable.
8.1.2 Control Policies
and Practices
As a basis f'or subsequent service and improvements
in the cost of operations, the utilities should move
toward adoption of more formal and precise methods of
inventory control and accounting for assets. They must
8-6
know what they have, where it is located, what it is worth,
and what it does or how it contributes to their operation.
All of this information is essential to making rational
decisions on ways to achieve optimum service at minimum
cost. They must also have an effective program for
maintaining all physical assets and know the condition
of these assets on a continuing basis.
8.1.2.1 Buildings and offices. The control policies
and preventive maintenance practices regarding buildings
and offices of the utilities are inadequate based on
observations that:
- Property inventory and basic descriptive data necessary for sound property management are not readily available.
- Building and grounds maintenance is not being accomplished to an acceptable level on a regular basis.
- Building housekeeping standards do not exist; or if they exist, they are inadequate or are not being enforced.
8.1.2.2 Warehouses and storage yards. Deficiencies
with respect to control policies and preventive maintenance
practices are of the same types as those for buildings
and offices.
8.1.2.3 Office supplies and equipment. Control over
office supplies and equipment appears to be very informal.
Procedures for accountability, preventive maintenance, and
guidelines regarding repair versus replacement, and
acquisition or disposal have not been established in
writing. Formal procedures are necessary for the control
and more efficient use of this property.
8-7
8.1.2.4 Supplies and equipment for operations and
maintenance. Problems with respect to inventory control
in warehouse operations which were observed during the
conduct of this study are addressed in the Management
Systems Report on Procedures and Methods. A principal
deficiency noted was the lack of an effective operating
system for identification and timely disposal of large
accumulations of excess, outmoded and salvage items.
8.1.2.5 Communications equipment. Because of the
almost complete lack of such equipment no problems were
uoted with respect to control and preventive maintenance
practices. Development of policies and instructional
guidelines will be necessary as new communications
facilities and equipment are installed.
8.1.2.6 Transportation equipment. The principal
findings with respect to control policies and practices
are that:
- There are no written policies and guidelines covering preventive maintenance, repair versus replacement, and acquisition and disposal.
- The current practices for vehicle replacement do not appear to be based on a system which considers costs in deciding on repair versus replacement.
8.2 SUMMARY OF
RECOMMENDATIONS
Sections 2.0 through 7.0 of this Report contain
recommendations immediately following the presentation
of findings and conclusions. This Paragraph is a summary
of those recommendations.
8-8
8.2.1 Interim and Long-Term Improvements
Recommendations developed as a result of this Study
are summarized in Exhibit 8.1 for both the interim period
(until the new organizational structure selected is
implemented) and the long-term future (up to ten years).
The interim period recommendations should be implemented
without delay but in a deliberate fashion.
Long-term recommendations are those which are either:
- Considered necessary and important for proper support of the anticipated growth of the utilities during the next ten years, or
- Will require several years to be fullyimpleriented and produce cost effective results.
The long-term recommendations are considered
appropriate for each of the organizational arrangements
contemplated in the Interim Report on Organizational
Environment and Structure. The manner of implementation
would be dependent on the specific organizational
structure that is selected.
8.2.2 Additional Assets
Required
Types, amounts and approximate costs of assets
estimated to be needed during the next ten years were
developed in other sections of this report and are
summarized in Exhibit 8.2.
EXHIBIT 8.1 Page 1 of 4
RECOMMENDED IMPROVEMENTS IN PHYSICAL ASSETS MANAGEMENT
INTERIM PERIOD LONG-TERM
Buildings and Offices
- Assign responsibilities for - Conduct overall review property management. of property management
program and adjust or - Publish written policy guidelines revise as needed. and procedures for property management: - Improve quality and • Accountability quantity of asset • Inventory inventory data needed * PM of assets for property management:* Replacement versus repair . Update site mapsand renovation . Simplify and improve
* Acquisition and disposal usefulness of formats . Study and consider
- Conduct inventory of assets, computer storage of data
- Institute housekeeping program. - Maintain inspection,
- Institute PM program. follow-up and annual review programs:
- Institute inspections and . Update facilityfollow-up program, utilization data.
- Institute property management - Support and maintain reviews: housekeeping and PM " For first review emphasize programs. adjustments to office space assignments to reduce - Implement programsovercrowding, for gradual upgrading
" Identify all unused buildings of facilities on a and office property. priority basis:
• Workshops- Acquire site maps. . Toolrooms
" Vehicle maintenance - Provide grease racks for servicing (Consider centraliza
vehicles at vehicle maintenance tion of vehicle shops. maintenance.)
- Provide operations and maintenance facilities in all capital programs for new plants and plant expansions.
EXHIBIT 8.1 Page 2 of L
RECOMMENDED IMPROVEMENTS IN PHYSICAL ASSETS MANAGEMENT
INTERIM PERIOD LONG-TERM
Warehouses and Storage Yards
- Acquire site maps. - Conduct overall review of property mqnagement
- Conduct inventory of assets, program and adjust or revise as needed.
- Institute housekeeping and PM programs. - Improve quality and
quantity of asset -Publish written policy guidelines inventory data needed and procedures for property for propertymanagement: management:• Accountability . Update site maps.* Inventory . Simplify and improve* PM of assets usefulness of formats. Replacement versus repair and renovation - Conduct a study of Acquisition and disposal warehouse distribu
tion operations in -Improve site roads and establish Cairo area. traffic plans.
- Maintain inspection,- Institute inspection, update and update and annual annual review programs, review programs:
. Update facility- Institute a program to identify utilization data. and dispose of excess and salvage property. - Implement program for
gradual upgrading of facilities throughcapital improvements: " Paved roads and improved access to existing a,,d new buildings
• Improved storage yard areas
• Facility renovations and interior building improvements
EXHIBIT 3.1 Page 3 ofT
RECOMMENDED IMPHOVEMENTS IN PHYSICAL ASSETS MANAGEMENT
- Publish written policy guidelines of property management programs and adjust or
and procedures for: revise as needed. • Accountability. * Inventory. * PM of assets,
- Implement a program for gradual replacement
• Repair versus replacement and upgrading of * Acquisition and disposal. equipment through
- Conduct inventory of assets. budgetary provisions: . Typewriters
- Institute a program to identify • Copying machines . Office supplies
and dispose of excess and . Office furniture salvage property.
- Conduct a survey of new equipment needs.
- Institute PM program.
- Institute accountability program procedures.
- Institute program to establish libraries at operating plants.
Supplies and Equipment for Operations and Maintenance
- Institute a system to develop - Conduct overall review longer range projections of of property management chemical stocks requirements. programs of operations
and maintenance equip- Conduct survey of new equipment ment and revise or
needs for operations and adjust as needed. maintenance and follow-up on authorization and procurement. - Implement a program
for gradual replacement - Institute a program to identify and upgrading of
and dispose of excess, outmoded operations and mainand salvage assets. tenance equipment
through budgetary - Publish written policy guidelines provisions:
and procedures for property . Tools and equipment management: for workshops* Accountability . Tools and equipment * Inventory for portable shops
PM of assets
EXHIBIT 8.1 Page 4 of 4
RECOMMENDED IMPROVEMENTS IN PHYSICAL ASSETS MANAGEMENT
INTERIM PERIOD LONG-TERM
Communications Equipment
-Conduct survey of minimum initial - Conduct overall review requirements for a trial two-way of equipment assignmentradio communications system. and usage, and property
management of assets. - Acquire dedicated two-way radio Adjust as needed. communications system and install according to operational priorities.- Institute a recurring
- Install intra-plant and intra- training program: headquarters paging and telephone . Equipment maintenance systems. . Operators
- Institute program for - Institute training program in gradual upgrading of operations and maintenance of communicainsystem. communicationsfacilities.
Transportation Equipment
- Assign responsibilities. - Conduct overall review of property management- Publish written policy guidelines programs and adjust or
and procedures for: revise as needed. Accountability. Inventory. - Improve quality andPM of assets. quantity of asset Replacement versus repair, inventory data needed* Acquisition and disposal, for property management
Simplify'and improve- Perform inventory and condition usefulness of formats. report.
- Implement program of- Conduct survey of new equipment review and gradualand vehicle needs and acquire upgrading of fleet. necessary new assets.
- Institute PM program.
EXHIBIT 8.2 Page 1 of 3
PROJECTED REQUIREMENTS FOR PHYSICAL ASSETS DURING THE NEXT TEN YEARS
TEN-YEAR PROJECTED
CITY UTILITY ASSET CATEGORY ADDITIONAL NEED
AMOUNT VALUE (Meters2 or percent)(s
(LE 1,000's)
Cairo and Helwan
Water Buildings and Offices 6,700 M2 402
Warehouses and Storage Yards 3,350 M2 201 Office Supplies and Equipment 74% 1,738 Supplies and Equipment for Operations and Maintenance 74% 25,571
Supplies and Equipment for Operations and Maintenance 90% 22,302 Communications Equipment 140% 453 Transportation Equipment 90% 4,518
Subtotal 29,314
TOTAL 62,988
Note: (1) All percentages are stated as a percent of estimated current need.
EXHIBIT 8.2 Page 2 of 3
PROJECTED REQUIREMENTS FOR PHYSICAL ASSETS DURING THE NEXT TEN YEARS
TEN-YEAR PROJECTED
CITY UTILITY ASSET CATEGORY ADDITIONAL NEED
AMOUNT VALUE
(Metersd 0 (LE percent).(L ,uO0's)
Alexandria Water Buildings and Offices 2,500 M2 150 Warehouses and Storage Yards 1,250 M2 75 Office Suppliesand Equipment 78% 652 Supplies and Equipment for Operations and Maintenance 78% 9,595 Communications Equipment 133% 213 Transportation Equipment 78% 1,944
Subtotal 12,629
Wastewater Buildings and Offices 1,133 M2 68 Warehouses and Storage Yards 583 M2 35
Office Supplies and Equipment 152% 294 Supplies and Equipment for Operations and Maintenance 152% 4,332 Communications Equipment 197% 73 Transportation Equipment 152% 876
Subtotal 5,678
TOTAL 18,307
Note: (1) All percentages are stated as a percent of estimated current need.
EXHIBIT 8.2 Page 3 of 3
PROJECTED REQUIREMENTS FOR PHYSICAL ASSETS DURING THE NEXT TEN YEARS
CITY UTILITY
Port Said, Water Ismaila(2)
Wastewater
ASSET CATEGORY
Buildings and Offices Warehouses and Storage Yards
Office Supplies and Equipment Supplies and Equipment for Operations and Maintenance
Communications Equipment
Transportation Equipment
Subtotal
Buildings and Offices Warehouses and Storage Yards
Office Supplies and Equipment
Supplies and Equipment for Operations and Maintenance Communications Equipment
Transportation Equipment
Subtotal
TOTAL
TEN-YEAR PROJECTED ADDITIONAL NEED
AMOUNT VALUE (Metersf or (LE 1,000's percen$(1)
750 M2
417 M2 25
92% 197
92% 2,900
148% 59
92% 587
3,813
683 M2 41
367 M2 22
277% 177
273% 2,594
316% 38
273% 525
3,397
7,210
Notes: (1) All percentages are stated as a percent of estimated current need.
(2) Amounts shown are for each city based on model system. Since the three cities will function as a single system, the total for three cities should be used.
APPENDIX 1 Page I of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS RE4UIRED DURING THE NEXT TEN YEARS
This Appendix describes the methodology used to derive initial
estimates of the additional physical assets required by the
utilities serving the six cities during the next ten years. In
accordance with the Terms of Reference these are approximate
estimates, suitable for use in the overall valuation of future
assets. They are based in part on subjective judgment. They are
not engineering estimates and should not be used for engineering
purposes.
The estimates developed in this Appendix are-for entire
system requirements, not for any specific plant. The relative
mix of physical assets will change as the systems grow. Consequently
the amounts estimated for individual categories of assets should
not be used to project requirements for individual equipment
items, supplies or space.
The estimates are suitable for planning purposes. Like all
long-term projections, the estimates should be subject to review
and updating or adjustment as conditions warrant and the planning
process continues. The final Paragraph of this Appendix discusses
various means of improving the estimates.
APPROACH
The following general approach was followed to develop
estimates of additional future physical assets:
- Specify assets.
- Establish estimating guidelines:
• Guides for real. property assets.
. Guides for supplies and equipment.
- Review existing assets against guides:
" Estimate current (1979) needs.
• Estimate current shortage of assets.
ESTINATES OF ADDITIONAL PHYSICAL ASSETS APPENDIX 1REQUIRED DURING THE NEXT TEN YEARS Page 2 =64 -Review plans 1or future expansion and estimate
ten-year needs.
- Estimate additional future needs.
ASSETS
Six categories of assets have been studied:
- Buildings and Offices
- Warehouses and Storage Yards
- Office Supplies and EqUipment
- Supplies and Equipment for Operations and Maintenance
- Communications Equipment
- Transportation Equipment
For meaningful analysis it was necessary to specify in
detail the assets included in each category as shown
in Exhibit 1.2.
Assets in the first two categories are basically real
property improvements of a general support nature.
Quantities of these assets are measured in square meters.
Estimated costs currently range from LE 30 to 90 per meter 2 .
The estimates derived in this Study are based generally
on LE 60 per meter2 . Variations occur in the calculations
because of rounding.
Assets in the remaining four categories are basically
equipment and supply types of items. Costs for these items
have been estimated in various ways as described in later
paragraphs. Costs were determined in current LS. dollars
and converted into Egyptian pounds (LE 1 = $1.40).
APPENDIX 1 Page 3 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
ESTIMATING GUIDELINES
Although the adequacy of assets is primarily a
subjective determination, the use of estimating guidelines
or yardsticks is helpful in making the determination. The
precision desired in the estimate is an important factor
to consider in deciding upon the guides to use. Guidelines
developed during the course of this Study used information
from field visits and the work of other consultants, and
have been used to make the estimates contained in this Report.
Guidelines for
Real Property Assets
As an example of the available data, detailed calc
ulations and rationale are presented in the Helwan Waste
water Master Plan, Volume 3, pertaining to Year 2000
requirements for physical assets for the Helwan wastewater
system. Among other things, the report shows the buildings,
shope, warehouses and storage yards for a 556,000 meter 3
per day wastewater treatment plant and associated networks
systems to be approximately as shown in Table Al.l:
Table A1.1
ESTIMATED SPACE ALLOCATIONS FOR SELECTED TYPES OF PHYSICAL ASSETS
Physical Asset Plant Networks Total
(M2 ) (M2 ) (M2 )
Administration 600 645 1,245
Shops 210 485 695
Total 810 1,130 1,940
Warehouses and Storage Yards 50 1,000 1,050
APPENDIX 1 Page 4 of i1
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
From these data, guidelines have been established
for buildings and offices, and warehouses and storage yards
for three size groupings of treatment plants:
-Small (S) - Under 100,000 M3 /day; represented by 50,000 M 3/day
-Medium (M) - 100,000 to 300,000 M 3/day; represented by 200,000 M3/day
-Large (L) - Over 300,000 M3/day; represented by 400,000 M3 /day
Calculations of space requirements and costs for buildings
and offices at approximately LE 60 per meter 2 are shown below:
- Large Plant Systems'400 0002
use 1400 meters .5500000 x 1,940 = 1,396; 2
1,396 x 60 = LE 83,741; use LE 84,000.
- Medium Plant System Estimated at 60% of large plant
- Small Plant System Estimated at 30% of medium plant
Similar estimates were made for warehouses and storage yards. 2
The results are shown in Table A1.2 with space in meters
and cost in LE thousands:
TABLE A1.2
ESTIMATING GUIDELINES FOR BUILDINGS AND OFFICES, AND WAREHOUSES AND STORAGE YARDS
Physical Small Plant Medium Plant Large Plant Asset (50,000 M5/day) (200,000 Mi/day) (400,000 MJ/day)
Space Cost Space Cost Space Cost
Buildings and Offices 280 15 840 50 1,400 84
Warehouses and Storage Yards 150 8 450 27 750 45
APPENDIX 1 Page 5 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
Since similar operations and functions are involved, the
space and costs derived are appropriate for initial
estimates of either water or wastewater systems in Egypt.
Guidelines for Supplies
and Equipment
Guidelines for the types, quantities and costs of the
remaining four categories of assets are derived by:
- Choosing a model medium-size treatment plant system with the following features:
• Headquarters allocation
• Treatment plant
" Two networks field units
• One maintenance shop
" One warehouse
- Selecting sets of assets appropriate for the model system.
- Estimating the costs of the selected assets.
- Expanding the cost information thus derived to the small and large plant systems.
For two of the four categories, Office Supplies and
Equipment and Communications Equipment, lump sum estimates
for the total assets required are shown in Table Al3 on
the following page:
APPENDIX 1 Page 6 oT
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
TABLE A1.3
ESTIMATING GUIDELINES FOR OFFICE SUPPLIESAND EQUIPMENT, AND COMMUNICATIONS EQUIPMENT
MEDIUM-SIZE TREATMENT PLANT SYSTEM -
Physical ESTIMATED COSTAssets ITEMS ITEM TOTAL (LE 1,000's) (LEIOOO's)Office Supplies Office furniture 215.0 for a 215.0and Equipment Office equipment set to support
Drafting room the model equipment medium-size
Library treatm9 plantOffice machines system J Expendable supplies Miscellaneous supplies
and equipment
Communications Base station 18.0 Equipment Repeater
18.0 4.o 4.o
Five radio sets 7.0 7.0Generator set 11.0 11.0
40.0
Note: (1) Based on US experience for similar plants indicating an equivalent need for approximately LE 100,000 peryear operating allowance and LE 115,000 for initial stock cf items.
Estimates for Supplies and Equipment for Operations
and Maintenance, and Transportation Equipment are presented
in Exhibits A1.1 and A1.2 respectively.
Table A1.4 on the following page shows a summary of the
developed estimating guidelines for the three sizes of
treatment plant systems.
APPENDIX I Page 7 or 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
TABLE Al. 4
SUMMARY OF ESTIMATING GUIDELINES
Physical Asset Category
I Buildings and Offices
II Warehouses and Storage Yards
III Office Supplies and Equipment
IV Supplies and Equipment for Operations and Maintenance
V Communications Equipment
VI Transportation Equipment
Applicable Plant System
Small Medium
Large
Small
Medium
Large
Small
Medium
Large
Small
Medium
Large
Small
Medium
Large
Small
Medium
Large
Estimating Guidelines Amount or Location Estimated Cost of List
(LE l,O00's)
280 meters 2 15
840 meters 2 50
1,400meters2 84
150 meters 2 8
450 meters 2 27
750 meters 2 45
Estimated cost 64 from limited list of Table 215 Al.3
358
949
See Exhibit Al.1 3,163
5,272
Complete two- 12 way radio system from 40 Table Al.3
67
See Exhibit A1.2 640
1,067
APPENDIX I Page 8 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
REVIEW EXISTING
ASSETS
A detailed review of existing assets was not possible
because of incomplete inventory data covering physical
assets. Complete inventory data would be useful in refining
estimates by providing a better base from which to make
future projections. In the absence of such an inventory,
and the lack of time to make one, deficiencies in the current
levels of assets were derived by using the estimating
guidelines to model existing systems.
First, the actual water and wastewater systems of the
utilities studied were approximated with systems formed by
use of the estimating guidelines. The resulting model
systems provide an estimate of current needs. Next the
suitability and adequacy of current system assets, which
had been evaluated in the Study (Sections 2.0 through 7.0)
were used as a scale to estimate current asset needs and
thereby provide an estimate of the current level of assets.
I'or each of the systems, the estimated current need less the
current level is the estimated current additional need. The
values for the current level of assets were calculated in
this manner and are shown in Tables 2.1, 3.1, 4.1, 5.2, 6.1
and 7.1. Details of the calculations are presented in the
following paragraphs.
APPENDIX 1 Page 9 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
Current (1979)
Asset Needs
Selected data for the existing systems are provided
in Exhibits 2.1 and 2.2. Based on field visits and reviews
of reports, the existing systems have been approximated
by systems consisting of groupings of the three sizes of
plants, Small (S), Medium (M) and Large (L). The systems
selected and needs are shown in Exhibit A1.3. These are basically
approximate models which reflect the assets currently needed
by the utilities to support properly the existing systems.
In addition to the existing plants, plant modifications in
progress were considered. Large pumping stations in the
wastewater systems were also considered.
Current (1979)
Shortage of Assets
The estimated deficiency in communications equipment
to support current operations for all water and wastewater
utilities is 80%. For all other assets in the water
utilities the shortage is estimated at 25%. For the Cairo
and Helwan, and Alexandria wastewater utilities, the estimated
deficiency of other assets is 30%; for the canal region
cities, 40%. These estimates are subjective, based on
conditions noted during field visits, interviews and reviews
of reports. The results of calculating the shortages are
presented in Tables 2.1, 3.1, 4.1, 5.2, 6.1, and 7.1 under
the column, Estimated Current Additional Need.
APPENDIX IPage YO of 17
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
In the absence of actual inventory data, the current
levels of assets have been calculated by using the model
systems. The results are shown in Tables 2.1, 3.1, 4.1,
5.2, 6.1 and 7.1 under the column, Estimated Current Level.
FUTURE EXPANSION
All utilities are making plans for future expansion
of services. In most cases plans which are being developed
by engineering consultants can be expected to undergo
further review until finally approved for execution. A
review of the plans which are available was made for the
purpose of estimating the systems which are anticipated
within the next ten ypars (until 1989).
For Cairo and Helwan, fcr example, the changes projected
in the system by 1989 as taken from ES-Parsons reports are
shown in Table Al.5 on the following page. This indicates
the use of 8 Large, 2 Medium and 3 Small plants to model
the 1989 system.
Similar reviews were made of the other utilities as
shown in Table A1.6.
. Using the 1989 systems shown in Table AI.6, projected
ten-year requirements for physical assets were calculated.
The results are shown in column A of Exhibit A1.4.
APPENDIX 1 ESIjATES OF ADDITIONAL PHYSICAL ASSETS Page 11 ofIM
REiJUIRED DURING THE NEXT TEN YEARS
TABLE AJ.5
PROJECTED (1989) WATER SYSTEM CHANGES, CAIRO AND HELWAN
TREATMENT PLANT
L Mostorod
L Cairo North
2L Rod El Farag
M El Roda
L Fostat
S Maadi
M Shoubra El Kheima
- Giza
L South Giza
L Embaba
2S Tura, North HelwanL KI
LKafr El Elw and Tebin
CHANGE(1)
No change, 450
340 to 425
450 to 800
130 to 150
0 to 600
30 to 72
0 to 264
145 to 0
185 to 400
0 to 600
5115 to 795
Note: (1) All figures are in thousands of meters3 of water produced per day.
APPENDIX IPage 12 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
TABLE A1.6 PROJECTED 1989 UTILITY SYSTEMS
Utility 1989 System
Cairo and Helwan
Water 8L, 2M, 3S
Wastewater Increase by a factor of 1.6 based on projected flows
Alexandria
Water 2L, 2M, 2S
Wastewater 2M
Port Said, Ismailia
and Suez
Water 1L
Wastewater iM
APPENDIX 1Page 13 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETSREQUIRED DURING THE NEXT TEN YEARS
ADDITIONAL FUTURE NEEDS
Projected requirements for additional physical assets by the utilities during the next ten years (to 1989) are shown in column E of Exhibit A1.4. The results have also been shown in Tables 2.1, 3.1, 4.1, 5.2, 6.1 and 7.1 for the respective categories of assets and in Exhibit 8.2. For the six cities studied, the total projected needs are:
Water - LE 57.7 million
Wastewater - LE 45.2
Total - LE 102.9 million
IMPROVING THE
ESTIMATES
Projections of future asset requirements can be
improved through:
-Refinements in the methodology, and
- Improvements in quality of the input data.
Methodology
Refinements
The methodology roquires an ability to:
- Establish a proper set of assets to use ina model that is representative of the utilitysystems (includes an appropriate mix of allelements in the utility organizations).
- Derive guides or rules to expand this modelto represent the actual systems being studied.
APPENDIX 1 Page 14 of 14
ESTIMATES OF ADDITIONAL PHYSICAL ASSETS REQUIRED DURING THE NEXT TEN YEARS
This methodology has been applied without the benefits of
a detailed asset inventory from the utilities because such
data are not available, and time was not available to
make an inventory.
Improvements are therefore possible by ensuring that
the proper assets have been included and in the proper
quantities. The best way is to have information on all
of the assets in the inventories and a thorough understanding
of asset requirements. Further studies of similar utilities
(if these can be found) would be useful in comparing the
model to actual systems.
Input Data
Improvements
The best basis for all future projections is accurate
detailed information on the current situation. Correct
data are necessary for definitive estimates. Cost data
are particularly important. The asset cost data used
should be compared with estimates from other sources.
One way of improving the data available for future planning
is to keep good records.
ESTIMATED SUPPLIES AND EQUIPMENT REQUIRED FOR OPERATIONS ANDMAINTENANCE OF MODEL MEDIUM-SIZE TREATMENT PLANT SYSTEM
AMOUNTS ESTIMATED COT-PHYSICAL (LE thousands)ASSETS NE 1__HQ PLANT WORKS SHOPS STORES TOTAL ITEM TOTAL Supplies for Maintenance ofOperating.Plant Spare parts Estimated at 10% of capitalReplacement parts 960.0- Pumps cost for plant-related equipment 960.0
and at 1% of cost for network - Motors related items:- Pipe fittings- Other 8.0 million LE x .10 = 8 00,OOOLE16.0 million LE x .01 = 160,000Lubricants
ESTIMATED SUPPLIES AND EQUIPMENT REQUIRED FOR OPERATIONS ANDMAINTENANCE OF MODEL MEDIUM-SIZE TREATMENTPLANT SYSTEM ESTIMATEDCOSTSA S S E S AM UNTSE STIMATED COST SW NET AMOUNTS
HQ PLANT WORKS SHOPS (LE Thousands)STORES TOTAL ITEM TOTAL Tools, Shop and Garage Equipment (Cont'd)Pumps 2 4. 1Riveting tools 7 .5 3.51 1SmIthing equipment 1 1
Asset Water WastewaterCategory U (iS) Space Cost Space Cost
I 84o 50 280 15
II 450 27 150 8
III 215 64
IV 3,163 949
V 40 12
VI 64o 192
Total 1,290 4,135 430 1,240
Notes: (1) Space in meter2 (2) Cost in LEUI,OO's. (3) Amounts shown are for each city based on model system.Since the three cities will function as a single system,
the total for the three cities should be used.
PROJECTED ADDITIONAL FUTURE PHYSICAL ASSET NEEDS
AASSET SYSTEM CATEGORY 1989
(LE l,O00's)
I 806 II 403
III 3,491 IV 51,354 V 671 VI 10,405
Total 67,130
Wastewater
I 622 II 311
III 2,695 IV 39,649
V 518 VI 8,033
Total 51,828
CAIRO AND HELWAN
B C D ESYSTEM (A - B) 1979 SYSTEM (C + D)1979 SHORTAGE. (LE 1,O00's) (LE l,O00's) (LE 1,000's) (LE l,000's)
539 267 135 402 270 133 68 201
2,337 1,154 584 1,738 34,377 16,977 8,594 25,571
449 222 359 581 6,965 3,440 1,741 5,181
44,937 22,193 11,481 33,674
389 233 117 350 194 117 58 175
1,684 1,011 505 1,51624,781 14,868 7,434 22,302
324 194 259 453 5,021 3,012 1,506 4,518
32,393 19,435 9,879 29,314
Code: A = Total system requirements (.1989) B = Total system requirements (1979)C=A-BD =B Estimated current level = Shortage (Estimated current additional need)E - C + D = ten-year projected additional need.