Abstract
Most municipalities have a disconnection between the effective usage of their budget and their ability to preserve the value of their network of assets. Long-term planning for cross-asset infrastructures is always a challenge for municipalities. This paper proposes a decision-making platform which optimises municipal assets by integrating cross-asset models with asset value to achieve an optimal solution for the maximum returns of investment over a long-term period. The method was compared with the classical condition-based optimisation approach by implementing it on a case study of the Municipality of Kindersley, Canada. It was found that the value-based optimisation model demonstrated meaningful results by integrating engineering concepts with the value of the assets to determine the optimal long-term investment planning. For the same available budget, the value-based model achieved a similar overall condition while increasing the total value relative to that of the condition-based approach. The life-cycle analysis showed that for 20 years’ investment in the case study, the value-based model obtained Can$18 million (US$13·5 million) more return, which validates the higher efficiency of the proposed model. The developed value-based optimisation technique enables municipalities to apply a multi-asset decision-making process that balances engineering and economic approaches to delivering better value for money.
Published Version
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