WaterNSW Industry Opportunities Industry Briefing 20 November 2019
Welcome • Housekeeping Phones to silent • Emergency evacuation procedures No photos • Acknowledgement of Country Please wait until the Q&A sessions to ask questions 2 WaterNSW
Why we have invited you • The scale and timetable for delivery of our portfolio is likely to challenge both the NSW Government and the construction industry • We want you to understand the opportunities where industry can work with WaterNSW, and when those opportunities will come to market • Today we will explain: How and when we are The professional services What the opportunities are going to engage with vis-à-vis construction industry opportunities • To learn about the details of our large unprecedented portfolio of diverse and complex water infrastructure projects • Timeframes for the first wave of procurement 3 WaterNSW
Agenda • CEO welcome and overview – David Harris • Our infrastructure pipeline and opportunities – Andrew George • Partnering with industry – Ronan Magaharan • Q&A – David Harris, Andrew George and Ronan Magaharan • Close – David Harris 4 WaterNSW
Chief Executive welcome David Harris, Chief Executive Officer
Who we are • WaterNSW is a State-Owned Corporation established under the Water NSW Act 2014 • We are responsible for supplying the State’s bulk water needs • We supply two thirds of water used in NSW from our: – 42 dams, rivers and pipelines to regional towns, irrigators, Sydney Water Corporation and local water utilities. • We build, maintain and operate essential infrastructure
What we do – Our Market Functions We play a vital role in improving the availability of water that is essential for water users and the communities throughout NSW – we do this through the delivery of our Market Functions: Source water protection • protection of the Greater Sydney drinking water catchment Bulk water supply • supplying water from our storages to customers in the Greater Sydney drinking water catchment and in the State’s regulated surface water systems; System operator • efficient management of the State’s surface and groundwater resources Bulk water supply infrastructure planning, delivery and operation • planning, developing, owning and operating infrastructure to meet customer-defined levels of service and in support of NSW Government policy and priorities Customer water transaction services • providing efficient and timely services to end use customers 7 WaterNSW
Our area of operations 8 WaterNSW
How we fit in the water market Our Customers Sydney Water Independent State Owned Corporation Government WaterNSW Water treatment, Local Water Utilities Independent State Owned Department of Planning reticulation and retail Local Government Corporation and Industry - Water The Government’s bulk water The policy-making arm of Local Governments Infrastructure authority the Government Plans, designs, procures, Articulates Government's builds, operates and owns Agricultural Enterprises policy outcomes from water infrastructure to meet Government funded Government’s policy Water end-users infrastructure objectives Environmental Agencies Regulators NRA, IPART, NSW Health, EPA 9 WaterNSW
What has changed We are capable of delivering large, complex water infrastructure projects, however, today we now face a number of challenges due to the scale and timing of the Portfolio: • We have to deliver an ambitious portfolio of water infrastructure works, some with ambitious timeframes. For drought now and for future water security. • The total value of capital works in planning and delivery is currently in the order of $10 billion over 5+ years – the projects are: Geographically Of diverse types, At different stages of dispersed characteristics and scale development • To assist townships experiencing severe drought conditions, a number of projects have to be fast tracked and delivered within a short time frame • To deliver the volume of work in the accelerated timeframes is a challenge, we need your support to deliver. 10 WaterNSW
Our strategic goals 11 WaterNSW
Our strategic goals will influence our selection of industry partners • We want demonstrated commitment and proven track record on safety and wellbeing, aligned with our own commitment to zero harm • We want partners who bring ideas and innovation • Our broader commitment to communities and our customers must be upheld • High standards of stakeholder and community consultation are expected • We want to strengthen our performance – we need experienced and trusted industry partners • We will make timely decisions – ensuring critical issues are dealt with expeditiously • A genuine partnership is essential in the delivery of this portfolio 12 WaterNSW
Our strategic context for drought responses in Greater Sydney • In extreme drought, the only practical responses are measures that “We have taken the reduce demand and bring on-line climate-independent sources of decision to begin the supply. planning for the expansion of the desalination plant. • The NSW Government is doing both – responding through demand- side measures (introducing water restrictions) and supply-side There will be other schemes measures (expansion of the Kurnell desalination plant). for Sydney, for the Hunter and other parts of • In deep drought that may not be enough, so WaterNSW has NSW….We will be investing commenced early investigations into augmenting Greater Sydney’s and the Illawarra’s bulk water supply network – potentially resulting in in dams, we will be investing the construction of two additional desalination plants. in desalination, but also we must work on the adaptive • At this stage the NSW Government has not finalised the investment side of the equation: decision to proceed with these desalination options. efficiency and using the • If the drought breaks in the short term, the need for these great resource that is now desalination projects will be re-evaluated. called wastewater” • If the drought continues beyond the short term, it is important that Dr Jim Bentley, WaterNSW has completed all necessary planning work to be able to Deputy Secretary Water deliver this water supply infrastructure in time. This is the only (DPIE Water), responsible, prudent approach. 25 September 2019 13 WaterNSW
Our infrastructure pipeline and opportunities Andrew George, Executive Manager Water Solutions & Market Strategy
Our initiatives and work in progress OUR REPUTATION OUR EXPERIENCE We have a reputation in Government as a We have successfully skilled and successful delivered high profile, deliverer of water high risk and complex infrastructure projects OUR CORE WE ARE A CAPABLE CLIENT CAPITAL PROGRAMME We have developed robust, We are planning and delivering long term water supply other projects (aside from water strategies supply strategies) with TOC ~$1.2b Our strategies have been endorsed by Government to address: • Immediate drought challenges • Increasing lack of water security 15 WaterNSW
WaterNSW partnered with industry to deliver the Wentworth to Broken Hill Pipeline Construction began in January 2018 and was completed by the end of that same year • Collaborative tender process included interactive Early Contractor Involvement (ECI) with the market providing innovative solutions • No Lost Time Injuries (LTIs) • Success was built through trust and genuine partnership between WaterNSW and the JVs • Delivered under budget • Delivered ahead of time for the community • Joint Ventures (JV) engaged to design, construct, operate and $500m investment maintain the pipeline 270km pipeline W2BH W2BH D&C O&M JHG MPC JHG TRILITY 4 pumping stations JV JV 720 ML bulk water storage facility 16 WaterNSW
WaterNSW’s $10B portfolio $ - $0 – 250M $$ - $250-500M $$$ - $500M – 1B $$$$ - $1B+ 17 WaterNSW All information provided is subject to change. Development Market Engagement / Procurement Construction
WaterNSW’s capital investment profile If all projects were to be delivered 4 Billions 3.5 3 2.5 2 1.5 1 0.5 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 18 WaterNSW
Three new dam projects Dungowan Dam (New) Wyangala Dam Wall Raising Mole River Dam (New) • Replacement with a new, larger dam • Raising of the embankment and • New~60m high rockfill dam downstream; ~55m high rockfill dam rockfill; 10m raising the spillway and • Improve water availability and intake towers • Improve water availability and security security in the Border Rivers region in the Peel Valley and for Tamworth • Extra 650GL of storage capacity to Regional Council existing volume of 1,218GL Short-term Market Engagement Timeframes Early project planning stages to commence before Christmas 2019 • Some limited advisory engagements • (delivery and procurement strategy) Preliminary Environmental Assessments • Community and stakeholder engagement planning • We will be coming to market for the main professional services • packages from late Q1 2020 Early Contractor Involvement from at least mid 2020 • Early works packages to start as early as Q4 2020 • 19 WaterNSW
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