2.4 Overcoming policy failures in infrastructure Asset Management

Challenge

In Sweden, maintenance of municipally owned infrastructure is generally neglected. The need for future reinvestment and investment is significant and well known. Despite policy documents and guidelines promoting sound financial management, long-term deferred maintenance is common among municipalities of all sizes and across the country. This is not in line with sound financial management, as it effectively means “borrowing” from future generations.

Previous research shows that it is rare for municipalities to successfully reverse long-term deferred maintenance. Against this backdrop, there was reason to study how municipalities work strategically to reverse this trend.

Solution

The results show that by working based on two overarching strategies—the stewardship strategy and the collaboration strategy—municipalities can succeed in reversing deferred maintenance in areas such as water and wastewater systems (VA) and roads/streets.

The stewardship strategy focuses on managing infrastructure assets in accordance with sound financial principles and developing these assets in a conscious and sustainable way. The collaboration strategy involves organizing relevant departments to enable cross-sectoral cooperation.

Societal Impact

• Increased intergenerational fairness.

• Less unpredictable maintenance, leading to a more stable and predictable economy.

• Safer and more reliable infrastructure.