Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/816363
MAY 2017 WET NEWS 7 Maintaining resilience to market forces • Making sure infrastructure assets are resilient, whatever the impacting forces, will safeguard operations and their value. Adler & Allan's Alan Scrafton explains. A t the time of writing, Theresa May had just called a snap election, adding further uncertainty to the shape of the UK's impending EU departure. With her re- election the bookies favourite, 'hard' Brexit looks likely which will potentially put further strain on funding for Britain's infrastructure assets. An unknown quantity, it is difficult to predict what will happen next. The fallout from Brexit, so far, has largely been less impactful than predicted. In fact, fears over the economy and the attractiveness of the UK as a place to invest seem to have had a positive short-term effect on the infrastructure industry. The Autumn Statement revealed a modest increase in spending on infrastructure and the fall of the pound makes UK assets look like a bargain for foreign investors. If Brexit goes well, it will open up the opportunity for a variety of new forms of financing. Let us not forget, however, that we have not actually leˆ the EU, or even decided what shape that departure will take – the longer-term implications for UK infrastructure are therefore far less certain and potentially more negative than many of the recent post-Brexit trends in the sector. Whichever way things fall, the best approach is resilience, maintaining and improving assets in the most cost-effective way possible, to enhance useful life, prevent pollution and damaged reputations, therefore stabilising value. Bad management So essential to us all, the water network must be safeguarded, with the prevention of leaks and pollution a high priority. Bad management in this area will lead to loss of corporate credibility, and future business from the afore-mentioned foreign investors. PR costs are high, with coming back from a major incident a long and expensive process Investing in maintenance and improvements, therefore, is key; an approach that may also save money long-term, with predictive upgrades proved time and time again to be more financially beneficial than waiting for things to go wrong. Expensive replacements could well be on the back burner following Brexit, but by enhancing existing infra- structure, useful life can be dramatically extended and downtime avoided, presenting savings across the board -- also helping water companies to meet the targets of AMP6 and secure funding for AMP7. There are a range of factors impacting the water network infrastructure, with most regions experiencing a combination of a few. In many areas, the network is an ageing one, traditionally upgraded with expensive capital investment; the Environment Agency's vigilance mean poor stewardship and non- compliance have never been more costly; tough regulatory targets are forcing improved efficiency and cost reduction, and changing demographics place increased demand on services, therefore increasing the risk of network failure. In recent years, the UK has more dramatically felt the effects of climate change too, with major flooding incidents damaging the north of the country in particular. Asset resilience There are a number of ways to combat these forces. Protective coatings and linings, which have moved on a pace in terms of their durability and usability, offer a fairly simple and cost- effective solution to a range of asset resilience issues; from preventing leaks and pollution, to dealing with corrosion and extending the usable life of pumping stations, sewers, reservoirs and pipework – helping to meet projected increased demand. The latest Polyurea coatings can be used on practically any substrate. For flooding in particular, modular defences, such as JBAR, can be quickly erected with no asset downtime. These bunded solutions can also provide secondary containment for pollution, reducing the likelihood of sewer floods and mitigating the risks caused by asset failure and unwanted water ingress, as well as protecting fuel and chemical storage facilities. Part of asset resilience should also focus on response to an incident. If flooding and/or pollution does occur, then a swiˆ and appropriate response will minimise disruption and downtime. Importantly, environmental disaster can be avoided, containing pollution within a small area, which will help ensure reputation damage, fines and downtime are minimal. Investors will be looking for organisations considered 'High Reliability' – while some disasters cannot be avoided, how they are dealt with is key. Emergency planning is essential and should be an integral part of any campaign to maintain and enhance infrastructure value. Brexit or not, any organisation should look to improve performance, reduce costs and minimise pollution risk. A thorough approach to asset resilience will ensure the long-term effectiveness of our water networks, in order to withstand a range of forces – be they driven by the market, environment or demand. n Alan Scrafton is group marketing manager at Adler & Allan. Protective coatings and linings offer a simple and cost-effective solution to a range of asset resilience issues News+ Maintaining and improving assets in the most cost-effective way possible enhances useful life