2008 - 2009 - Pinsent Masons Water Yearbook 2012 - 2013

AUSTRALIA
PART 2: COUNTRY ANALYSIS
Sydney Water becomes State Water
In July 2004, Sydney Water was corporatised and renamed State Water. It will have an independent
regulator and has been ordered to attain cost savings of AUD1.7billion (EUR966million) between
2004 and 2014. The entity has suffered from years of project delays, especially related to
management problems. Sydney’s Waterplan 21, the development blueprint for achieving sustainable
water consumption by 2021 has been scaled back due to the abandoning of proposals for industrial
water recycling, citing inadequate demand and funding cutbacks. The pipeline was to have taken
effluent from upgraded treatment plants in the satellite cities of Liverpool and Glenfield. By 2010, the
government had aimed to recycle 83million L, but this target is now expected to be lowered. Sydney
Water is increasing spending on its pipe network by 35% to AUD38million (EUR23.16million) pa,
along with pipe inspections costing a further AUD36million (EUR21.9million). Around 200 leaks a day
spring from the 21,000km of secondary pipes linking mains to households, while the overall rate of
leakage was 10.7% as of in February 2004, or 188 Ml/day. About 7,000km of mains are inspected
annually, with about 4,000km repaired each year, saving an estimated 38.8 megalitres of water each
day. By June 2005, this saving is expected to rise to 60 megalitres.
Private sector contracts awarded (Please see relevant company entry for details)
Location Contract Company
Noosa Sewerage BOT Australian Water Services
Sydney Water treatment BOT Australian Water Services
Brisbane Sewage treatment DBO AWG
Sydney Water treatment BOT North West Transfield
Melbourne Water treatment BOT North West Transfield
Melbourne Water & wastewater services Utility Services
Adelaide Rural water treatment BOO International Water
Noosa Water provision BOT CGE Australia
Adelaide Water and sewerage concession United Water
Ballarat Water treatment BOOT United Water
Ballarat Sewage treatment BOT United Water
Victoria Water provision to four towns Aqua Tower
Townsville Water provision United Utilities Australia
Perth Desalination Australian Water Services
Pimpama Wastewater treatment Australian Water Services
Private sector company operations (Please see the relevant company entry for details)
Company
Parent company (country) Population served
Water Sewerage Total
AWS Suez (France) 1,000,000 35,000 1,035,000
United Water VE (France) 1,310,000 1,200,000 1,310,000
CGE Australia VE (France) 564,000 11,000 675,000
NW Transfield United Utilities (UK) 530,000 0 530,000
International Water United Utilities (UK) 189,000 0 189,000
UU Australia United Utilities (UK) N/A N/A N/A
Utility Services Leighton (Australia) 1,300,000 1,300,000 1,300,000
Aqua Tower Cheung Kong Infra (Hong Kong) 50,000 0 50,000
Water trading in the Murray River Basin
Water trading has been used to encourage the optimal use of water for agricultural purposes in
Australia, especially in the Murray-Darling River Basin in Victoria. Permanent and spot rights are
traded on an exchange; the former giving the bidder the right to use the water in perpetuity, the latter
is used to meet seasonal shortfalls.
Permanent water trade by volume is considerably less in volume than temporary trade, but the price
paid is higher, due to the nature of permanent water transfer and is much less affected by the
seasonal allocations within authorities. These water licence values have risen from AUD180 per Ml in
1994 to more than AUD2,000 per Ml. In wet years with full dams, irrigators gain a 100% allocation and
utilise all the water covered by the licence. But in dry years, governments can reduce allocations.
Prices are related to seasonal supply and demand, which also varies from year to year. Likewise,
price is affected by the availability of water rights on the market.
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Pinsent Masons Water Yearbook 2008-2009