Antony Sprigg - Infrastructure Sustainability Council of Australia - Sustainability Trends in Infrastructure Project Procurement

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

Antony Sprigg

CEO

0414 454 723

www.isca.org.au

Sustainability Trends in Infrastructure Project Procurement

http://www.isca.org.au/

• Infrastructure Sustainability Council of Australia (formerly Australian Green Infrastructure Council)

• Member based, not-for-profit, industry council

Enhancing the liveability and productivity of ourmajor cities and our regional communities through advancing sustainability in infrastructure planning,

procurement, delivery and operation.

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ISCA Overview

ISCA then to now

• Bipartisan industry initiative

• 5 years old

• 70 members

• Australia and NZ

• $A 5M to develop

• IS globally benchmarked and locally tailored

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ISCA Members

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ISCA Members (cont’d)

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Global Trend

BUILDINGS

• GBCA – Green Star

– Started 2003

– Over 600 rated + 500 registered

• NABERS

• LEED (USA)

• BREEAM (UK)

INFRASTRUCTURE

• CEEQUAL (UK)

– Started 2003

– Over 150 rated

• ISI - Envision (USA)

– Started 2012

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What is Infrastructure Sustainability

• Infrastructure sustainability

• Sustainable infrastructure

• Green infrastructure

Infrastructure sustainability (IS Technical Manual) ,” …

infrastructure that is planned, designed, constructed and

operated to optimise environmental, societal and economic

outcomes over the long term”.

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• Common national language for sustainability in infrastructure

• Consistent application and evaluation of sustainability in tendering processes

• Scoping whole-of-life sustainability risks for projects and assets, enabling smarter solutions that reduce risks and costs

• Fosters resource efficiency and waste reduction, reducing costs

• Fosters innovation and continuous improvement• Builds an organisation’s credentials and reputation in

its approach to sustainability in infrastructure

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IS Benefits

IS Rating Scheme Drivers

Traction

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Status Number Value ($m)

Certified 2 350

Registered 23 35,000

Potential 30 30,000

IS relative to asset

lifecycle

Development need

Pre-Feasibility

Feasibility

Concept / tender

design

Detailed Design

Construction

Handover

Project Cycle

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Detailed

Design

Construction

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Business Case

Procurement

Design Construction

Operations

Master Planning

IS Scheme

Why use the IS scheme (slide 1)

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Master PlanningInform/challenge master plan through TBL performance assessment of the proposed underpinning infrastructure.• Mitigate perverse outcomes• Enhanced integration• Appreciation of material impacts and opportunities

Business CaseBenchmark, evaluate and gap analyse for TBL aspects in the business case for a new infrastructure project.• Informs and articulates the ‘story’ underpinning the project need• Establishes a TBL governance and performance framework which can be pulled

through each project phase• Identifies and incorporates high value sustainability considerations early• Informs procurement• ‘Bottom up’ due diligence ESG assessment framework for investors • Stream line approvals

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DesignAn integrated framework which encourages ‘centralising’ of sustainability ownership, increasing the likelihood of unlocking design solutions which can meet both fit for purpose, cost and sustainability whole of life expectations and outcomes. • Facilitates continuous improvement and innovation• Facilitates sustainability in design processes• Provides a reporting platform

ProcurementA TBL performance framework to assess and identify sustainability objectives, targets and innovations pretender by client and as part of tender response by tenderers. • Consistent industry language and benchmarks, thus reducing costs and improving

outcomes• Reduces risks for clients and increases certainty for tenderers• Provides measureable and quantifiable targets

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ConstructionAn industry developed best practise standard for applied sustainability in construction associated with civil and infrastructure projects.• Common industry sustainability language• A framework which can be used to identify and value resource

efficiency, innovation and other environmental and community opportunities• Centralises and maintains sustainability ownership during delivery • Informs project KRA’s/KPIs and associated targets• ‘Voluntary’ and outcomes based, therefore can be a project culture enhancer

OperationA ‘bottom up’ applied sustainability tool and management framework which can be used to benchmark asset performance and inform continuous improvement. • Value creation and risk identification for investors• Baseline asset/network TBL performance for asset owner/operators• Facilitates identification of risks and opportunities and informs continuous

improvement targets• Informs corporate reporting

IS Themes and Categories

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Themes Categories

Management and Governance

Management Systems

Procurement and Purchasing

Climate Change Adaptation

Using Resources

Energy and Carbon

Water

Materials

Emissions, Pollution and Waste

Discharges to Air, Land and Water

Land

Waste

Ecology Ecology

People and Place

Community Health, Well-being and Safety

Heritage

Stakeholder Participation

Urban and Landscape Design

Innovation Innovation

IS rating scheme

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Benchmarking

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Level 1

GoodLevel 2

Excellent

Level 3

Leading

Beyond Compliance

Business

as Usual

Measurement

Implementing

Initiatives

No net impact Restoration &

Enhancement

Compliance

Level of

Performance

IS Scheme Ratings and the Brand

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Rating Types

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Rating Type:

Project Phase:Planning &

DesignConstruction Operation

Design RatingOperation

Rating

As Built Rating

Design – As Built - Operation

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IS in the Planning Support Phase (pre-

procurement)• Options comparison.

• Evaluate sustainability related risks and

opportunities to inform the design and planning

processes.

• Realise the areas you want the private sector to

demonstrate performance and innovation against

(from EOI, to short list, to preferred tenderer).

• Use our performance benchmarks to inform and set

requirements/ expectations for project and thus

leveraged for each procurement stage.

• Use IS to inform your project’s story.

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Registered Projects

Project/Asset Location Rating Type Asset Status Capital Value ($m)

Whitsunday STP Upgrades

QLD

Sewerage Certified rating awarded

45

Great Eastern Highway Upgrade

WA

Road Certified rating awarded

300

Enlarged Cotter Dam ACT As Built Water Supply and Storage

Verification underway

300

Rous Head Industrial Park

WA As Built Port Self-assessment underway

15

Gold Coast Light Rail (Stage 1)

QLD As Built Light Rail Verification underway

437

Elizabeth Quay WA As Built Roads, wharfs and utilities

Self-assessment underway

438

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Registered Projects

Project/Asset Location Rating Type Asset Status Capital Value ($m)

Gateway WA - Perth Airport & Freight Access

WA Design As Built

Road Self-assessment underway

1,000

Googong Water Treatment Plant Chemical Facility Upgrade

ACT Design Water Supply


9

North West Rail Link - Early Works

NSW As Built Railway Self-assessment underway

80

Wynyard Walk NSW Design As Built

Cycleways and Footpaths


286

North West Rail Link - Tunnel and Station Civils

NSW Design As Built

Railways Self-assessment underway

1,100

CBD and South East Light Rail

NSW Design As Built Operation

Light Rail Planning and Procurement

1,600

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Registered ProjectsProject/Asset Location Rating Type Asset Status Capital

Value ($m)

NorthLink WA WA Design As Built


1,000


QLD As Built Water Supply


45

Confidential Road Asset Management

NSW Operation Pilot

Road Registration 700

Capital Metro ACT Design As Built Operation

Light Rail Self-assessment underway

614

Confidential NSW Design As Built

Road Registration 2,700

Madden and Pakenham St Road Upgrade

NZ NZ Design Pilot


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North West Rail Link – Surface and Viaducts Civil

NSW Design As Built

Railway Self-assessment underway

340

City Rail Link NZ NZ Design Pilot As Built

Railway Registration 2,800

Major projects/PPPs using IS

• Westconnex

• Northconnex

• NWRL

• BAT

• East West?

• Northlink (WA)

• GCLR

• CBD & SE Light Rail

• Capital Metro

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Proponent: Whitsunday Regional Council

Contractor: Tenix

Infrastructure Type: Sewerage

Rating Type: Design

Location: Whitsundays, QLD

Capital Value: $45m

Start Date: May 2012

Practical Completion: May 2014

The upgrade of two treatment plants at Proserpine and Cannonvale are to serve growing communities and meet the most stringent effluent discharge requirements to protect the Great Barrier Reef. They will also provide benefits to the local community by reducing sewage overflows, and improving noise and odour.

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Whitsunday STP Upgrades – HighlightsCategory/ Credit

Score Achievements

Management Systems

7.3/10.5• Good management systems integrating the IS rating tool

into practices• Knowledge sharing clearly demonstrated.

Procurement and Purchasing

4.2/5.0

• Strong commitment to and application of sustainable procurement including local procurement:

• 50% of total spend in the Whitsunday region• 30% of total spend in greater Queensland

Climate Change Adaptation

4.2/5.0• Did a thorough, formal climate change risk assessment

and implemented controls to reduce 22 ‘high’ or ‘very high’ risks to a ‘moderate’ or ‘low’ rating

Energy and Carbon

5.1/10.5

• 305 MWh electricity saved over operational life – thus a 14% reduction equating to $75,000 saving/year

• 14,000 tCO2-e avoided over lifecycle• Use of B20 Biodiesel avoiding 272 tCO2-e (cost neutral)

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Score Achievements

Water 3.9/7.0• 15% reduction in water use over lifecycle, with

associated cost benefit

Materials 7.0/7.0

• Reduced the materials footprint by 25%:• Used 4,329 tonnes less concrete• Used 298 tonnes less steel• Used eco-cement with 30% fly ash• Eliminated asphalt from the design

Receiving Water Quality

2.9/2.9• >75% reduction in N and >90% reduction in P (44

tonnes less nutrients annually) to the Great Barrier Reef Marine Park

Ecological Value

2.0/2.0• Ecological value enhanced through >5,000 m2 of

regenerated native habitat and 1000 m2 of wetland

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Score Achievements

Innovation 5.0/5.0

• World’s-first trial of Parallel Nitrification & De-Nitrification (PND):

• Significantly improves nitrogen removal• More compact• Less construction materials• More energy efficient

Great Eastern Highway Upgrade

A 4.2km section of the Great Eastern Highway between Kooyong Road and Tonkin Highway widened from four to six lanes with a number of ancillary improvements including central medians, upgraded intersections, on road cycling facilities, bus priority lanes and continuous paths for pedestrians.

Proponent: Main Roads WA (MRWA)

Contractor:City East Alliance (MRWA, Leighton Cont., GHD, NRW)

Infrastructure Type: Road

Rating Type: As Built

Location: Perth, WA

Capital Value: $350 million

Start Date: July 2011

Practical Completion: March 2013

Great Eastern Highway Upgrade – Highlights

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Category/ Credit

Score Achievements

Management Systems

6.3/10.5

• Commitment to mitigating negative environmental, social and economic impacts

• Accredited management systems• Thorough risk and opportunity assessment• Knowledge sharing clearly demonstrated• Strong decision making approach incorporating

sustainability aspects

Water 2.9/7.0

• Opportunities to reduce water use identified and implemented

• Instead of using high-value potable water, the project installed groundwater bores and constructed a weir which, on completion, was handed to the local council to irrigate parks.


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Category/ Credit

Score Achievements

Materials 6.2/7.0

• Significant reduction in materials lifecycle impacts through extensive use of recycled materials, reducing the use of non-renewable resources of limestone, sand and bitumen

• The highway now has the largest use of recycled material on any WA State road with 43 per cent of imported material being recycled

Previous Land Use

3.3/3.3• >75% of land used for the project was previously

disturbed

Heritage 2.3/5.0• Thorough approach to heritage assessment and

management• Monitoring overseen by appropriately qualified persons


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Category/ Credit

Score Achievements

Innovation 1.7/5.0

• Warm mix asphalt was used on the project, applying innovative foaming technology to mix the bitumen into the asphalt mix

• This was a first for Western Australia, reducing energy use and GHG emissions

IS Rating Tool – Continuous Improvement

Review andFeedback

IS Rating tool V1

Use of Design and As Built V1

IS Rating Tool - Design and As Built V2

Tool Consolidation

Launch Preparation

Op

eratio

n P

ilot

(IPW

EA)

Econ

om

ic

Wo

rkforce

IS Operation V1

Op

eratio

n

Pilo

t (O

thers)

2012

2015 H1

2013 H1

2013 H2

Review and Feedback

2014 H1

2014 H2

New Themes

Proposed

Operational

Priority

Review

Key

ScopingScoping

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Scope of the Workforce ThemeWorkforce Theme

Recognising and addressing social aspects is key to achieving sustainable outcomes in infrastructure procurement, delivery and operation.

In the IS rating scheme, the workforce is defined as the people directly working (designing, constructing and operating) on the project/asset including direct employees of all key stakeholders and direct employees of sub-contractors (note that the rest of the supply chain is addressed in the Procurement and Purchasing category).

The results of the scoping study recommended that the Workforce theme covers the categories (and credit topics) below.

Capability and Capacity

Knowledge / sustainability awareness

Corporate knowledge

Learning and development

Career management

Strategic planning

Legacy

Performance/ Competency

Job Design

Diversity and Inclusion

Cultural awareness

Cultural heritage

Organisational culture

Supply chain

Inclusive employment

Flexibility

Workstyles

Language, literacy and numeracy

Workforce Relations

Equal Employment Opportunity (EEO)

Privacy

Fairness

Recognition and reward

Communication

Employee engagement

Industrial relations

Organisational development

Workforce Safety, Health and Wellbeing

Active living

Physical health

Mental health

Safety in design

Safety in construction

Wellbeing

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Scope of Economics Theme

Economics Theme

Economic sustainability relates to the economic value created by an activity after deducting the cost of all inputs, including the cost of the capital tied up. The definition is synonymous with economic efficiency – employing existing resources optimally so that a responsible and

beneficial balance can be achieved over the longer term.

Overall Economics

This category focusses on the overall economics for the

project or asset in determining the scope and whether to

proceed. How has cast-benefit been analysed? Have wider

benefits been considered? How has this information been used in decision making? How have

the capacity building and productivity been considered?

Options Analysis

This category focusses on economics for the project or

asset in options analysis within projects. How has the cost-

benefit of options been analysed? Have wider benefits been considered? How has this

information been used in decision making? How have the

capacity building and productivity been considered?

Valuing Sustainability

This category focusses on sustainability initiatives

undertaken on a project or asset and how the value of these

initiatives has been recognised. How have sustainability

initiatives and their costs and benefits been

analysed, recognised and reported?

Advancing sustainability in infrastructure

planning, procurement, delivery and operation.

Antony Sprigg

CEO

0414 454 723

www.isca.org.au

Thank you

http://www.isca.org.au/