Piper must be paid says Professor

Mar 23, 2007

Professor Dr. Dietrich Stein and Robert Stein from Stein & Partner Consultants say that pipe networks should be continuously assessed to avoid significant erosion of asset values.

Professor Stein is an eminent authority on the rehabilitation of such networks. He has developed an asset value management system that can help utility companies make important decisions about the improvement of their valuable assets.
“I am concerned by the serious condition of our European underground sewer and water infrastructure.” He says. “We have all taken these pipe networks for granted and for too long. These assets may be buried but they should not be written off financially or physically. Their future role is vital in creating a more sustainable world.”
“With the right technology and the right investment to maintain their integrity, their improvement could generate higher shareholder values.”
Robert Stein provides an example of a German sewer pipe network that was recently assessed for long-term asset value management. The system would have lost EUR 40 million from the balance sheet before 2030 on a projected level of expenditure (EUR 2 million) for repair and maintenance. However, an additional investment of only EUR 1.1 million for rehabilitation would secure an asset value of EUR 80 million over the same time frame.
“Our underground water and sewer world was not built for modern urban life.” Professor Stein explains. “Some of these old structures are still working perfectly because of the engineering foresight that went in to their design. But most structures are subject to failure and thus to regulatory controversy.”
“Our underground water and sewer world was not built for modern urban life.” Professor Stein explains. “Some of these old structures are still working perfectly because of the engineering foresight that went in to their design. But most structures are subject to failure and thus to regulatory controversy.”
“The corporate knee-jerk reaction is to engage the help of public relations. But public relations are no substitute for public interest. In any new pipe rehabilitation project, the cost of the pipe rarely exceeds ten percent of total costs. Customers expect service and shareholders like customers. The piper must be paid!”


This article was first published on the Plastics Europe website.

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