Water West, a private-sector water utility, has today been granted a 25-year licence to supply sewerage and recycled water services in Western Australia by the Economic Regulation Authority (ERA).
The Water Services Operating Licence issued by the ERA will allow Water West to deliver a local municipal-scale reticulated sewerage scheme, including recycled water, to the planned urban town site expansion of North Dandalup in the fast-growing Peel Region.
Jeff Strahan, Managing Director of Water West said this decision would open the WA water market to genuine competition and reduce the impact on dwindling water sources.
“Water West now has the go ahead to deliver locally-based reticulated sewerage and recycling services, alleviating pressure on Government to build expensive water infrastructure, and potentially opening up new residential communities across Western Australia,” Mr Strahan said.
Water West will partner with the land developer to fund, build, operate and retail a sewerage scheme for 2250 new homes, primary schools and shopping centres at North Dandalup. The proposed system collects and treats local wastewater to deliver fit-for-purpose recycled water, which can be used to irrigate the town’s new open spaces.
“By recycling local wastewater, Water West will not only deliver a reticulated sewerage scheme that was not otherwise available to the new town site, but will also facilitate larger and greener open spaces,” Mr Strahan said.
“With approval granted by the ERA, we’re now working with a number of developers to design, build and operate local water schemes that best meets the needs of new greenfield and infill developments in several parts of Perth.”
Allison Hailes, CEO of the Urban Development Institute of Australia was pleased that Water West had been granted a licence to supply sewerage and recycled water services in WA.
“This is a positive step forward,” she said. “The more suppliers we have in the market, the more competitive it is, which results in better outcomes for developers, the environment and communities.
“As access to water and other resources starts to become more expensive, we are seeing the growth of smaller, local models of service delivery, which means that developments that may have been unviable in the past can go ahead. I expect this will start to become the norm in the future.”
Water West is part of Enwave, a water services business that operates across Australia. Enwave’s existing water services licences cover a population of 80,000 residents and 40,000 workers, including sewerage and recycled water schemes now operating in Sydney and the Hunter Region, and planned schemes in the Central Coast and Queensland.
Mr Strahan said the climate and geography of Western Australia was ideal for the municipal-scale water, sewerage and recycling systems offered by the company.
“Our approach is to use our tried and tested technology, which will ultimately deliver recycled water to thousands of residences and businesses across Western Australia,” he said.
“As a private company, we are focussed on understanding and being flexible to the design and financial needs of our developer clients. With the significant capital backing and reputational focus of Brookfield, we are well positioned to service our clients and customers for the long term.”
For more information, please read the ERA News item.
A new research report on the future of water in Perth has highlighted the challenges and costs of maintaining our water supply in the face of an increasing population and declining natural sources.
The report, Future Opportunities for Water Services in Perth, is lead authored by Dr James Fogarty, School of Agriculture and Resource Economics, UWA, and co-authored by John Nicolaou, Executive Director, ACIL Allen.
Dr Fogarty said current water supply infrastructure delivers around 300 gigalitres of water to the greater Perth area and is already reaching its limits.
“Our analysis confirms water sources dependent on rainfall, including dams and groundwater aquifers, will continue to decline in importance,” Dr Fogarty said. “By 2050, Perth’s existing water infrastructure will provide a third less drinkable water than it does currently.”
ACIL Allen forecasts that as the Perth-Peel region grows to the WA Government’s expected population of 3.5 million by the middle of this century, total water demand will reach 438 gigalitres per annum.
“With rainfall-dependent sources falling and population rising, Perth will face a water supply challenge, requiring major upgrades to water infrastructure.”
By 2050, Perth will require an additional 238 gigalitres of drinking water every year.
“That’s more than double what our current infrastructure will be able to supply, or the equivalent of five new Kwinana Desalination Plants,” Dr Fogarty said.
Jeff Strahan, Managing Director, Water West, the new Western Australian private water utility that commissioned the report, said the cost to build new desalination plants, centralised recycling projects and associated connection and energy supply infrastructure, will be in the tens of billions of dollars.
“Under the current model, all capital costs to upgrade and extend our water network would be borne by the State Government, and ultimately, taxpayers,” Mr Strahan said. “Encouraging private-sector investment in wastewater treatment and recycling would not only improve amenity in new communities, but also meaningfully reduce the future level of State Government infrastructure expenditure, costs to taxpayers and associated levels of State debt.”
The economic modelling contained in the ACIL Allen Report estimates that by allowing private utilities to build, own and operate wastewater and recycling schemes in 50 per cent of Perth’s new urban developments, cumulative capital cost savings to the Government would be $3.37 billion by 2050, and 636 gigalitres of valuable drinking water would be saved.
ACIL Allen also estimates average household water usage bills could fall by more than 10 per cent as a result of using recycled water generated from the local treatment of household wastewater.
Local wastewater treatment and recycling is technically and commercially feasible, with successful schemes already up and running in other parts of Australia.
“Consumers will be better off with the adoption of local wastewater and recycling schemes, not only from improved amenities but also from paying less for recycled water to flush their toilets and water their gardens, rather than using scarce drinking water,” Mr Strahan concluded.
Water West has lodged an application with the Economic Regulation Authority of Western Australia to become a licensed water services provider . Once approved, Water West will be licensed to provide wastewater and non-potable water services to the 2,250 lot urban expansion of the North Dandalup townsite. Once licensed, Water West will service future masterplanned estates and high-density residential and commercial precincts via extensions to its existing Licence.
The North Dandalup urban expansion will ultimately see Water West collect and treat all wastewater from an on-site advanced technology treatment plant, with the recycled water returned to the community for non-potable water requirements such as public open space, private garden irrigation and inside-the-home uses such as toilet flushing. The availability of recycled water within the project will significantly reduce demand on valuable drinking water sources.
The Licence application will be advertised until 17 August 2016 and can be viewed until that date at www.erawa.com.au.
Water West makes submission to the WAPC
Water West has made the attached submission to the WAPC Perth-Peel 3.5million Planning Framework. The submission highlights the need for the WAPC to consider Water West’s decentralised, local and recycled water solutions when determining land use and zoning and how such solutions can be valuable to issues of affordability, liveability and sustainability in the urban planning and development of Perth-Peel as the population grows to 3.5 million by 2050.
Innovative WA-based water utility and infrastructure provider, Water West, is pleased to advise that it has been appointed by Silversun Corporation to undertake initial design work for wastewater and potable water infrastructure at Silversun’s North Dandalup residential land development.
The agreement anticipates that Water West will be engaged to construct and operate the water infrastructure for the development which consists of 1,500 future residential lots, with a potential to grow to 2,750 lots if adjacent land is also developed.
This appointment is a key milestone in Water West’s strategy of becoming a flexible new water utility provider in WA. Water West’s Managing Director, Mr Jeff Strahan said: “We are extremely excited to undertake initial design work at North Dandalup. Silversun’s vote of confidence is evidence of the value proposition Water West offers to land developers looking for flexible, localised water solutions.”
North Dandalup is located in the rapidly growing Peel region south of Perth in WA, approximately 22 km east of Mandurah. Silversun’s project at North Dandalup has recently been zoned ‘Urban’ and Silversun intends to commence development in 2015.
Innovative WA-based water utility and infrastructure provider, Water West, is pleased to advise Brookfield Infrastructure has acquired a major shareholding in Water West. Following the investment by Brookfield, Water West’s shareholders will be Azure Capital, Brookfield and Water West management.
Brookfield’s investment is a strong validation of Water West’s strategy and business model. It will also provide additional financial capability to build the infrastructure required to service future customers and also to consider the acquisition of existing water infrastructure where such opportunities are available.
Water West’s Chairman, Mr Richie Baston said: “We welcome Brookfield as a major shareholder in Water West. Brookfield is a global leader in infrastructure management and a strong supporter of emerging infrastructure trends – particularly the development of localised, affordable and sustainable utilities. Brookfield is supportive of our goal for Water West to become a flexible new utility provider in the WA market in a way that complements existing players.”
Brookfield’s investment builds on Water West’s successful July 2014 appointment by Silversun Corporation to undertake initial design work for wastewater and potable water infrastructure at Silversun’s North Dandalup residential land development.
Innovative WA-based water utility and infrastructure provider, Water West, is pleased to advise that following Brookfield Infrastructure’s investment in the company, Hon. Ian Campbell has joined the Water West Advisory Panel. Mr Campbell joins existing panel members Mr John Poynton, Mr Alan Mulgrew and Mr John Langoulant.
Water West’s Chairman, Mr Richie Baston said: “We welcome Mr Campbell to the Water West Advisory Panel. Mr Campbell brings a wealth of experience to this advisory role as Water West builds towards becoming a flexible new utility provider in the WA market in a way that complements existing players. The calibre of our Advisory Panel reflects the significant opportunity we have at Water West to provide land developers with innovative and sustainable water solutions.”
Mr Campbell retired from a federal political career of 17 years in May 2007, having served in a range of senior portfolios in government including as a member of the Cabinet and the Expenditure Review Committee from 2004-2007. Prior to joining Cabinet as Environment Minister he served as Parliamentary Secretary to the Treasurer where he spearheaded the Corporate Law Economic Reform Programme (CLERP), including reforms to fundraising, takeovers, accounting standards and corporate disclosure. He was also responsible for implementation of the Financial Services Reform Act, and demutualisation of the ASX. As Environment Minister he championed the use of a global market based price for carbon to address climate change, massively expanded protection of the Great Barrier Reef and Australia’s Marine sanctuaries, and developed a global campaign to end so-called scientific whaling.
Mr Campbell is a Director of a range of ASX listed, and private companies including ASG Group Limited, North West Infrastructure, and Brookfield Financial. Mr Campbell is Chairman of the Princess Margaret Hospital for Children Foundation and was Chairman of the Brookfield Financial led Westadium consortium’s bid for the new Perth Stadium.
The Water Services Act 2012 (Act) came into effect on November 19, 2013. The Act will transform the operation of the water industry by removing unnecessary barriers to water service delivery and introducing a new complaints system for the purpose of better customer protection.
A water ombudsman, due to be operational from January 1, 2014, will enable customers to seek independent resolution of complaints and disputes with licensed water providers.
Water Minister Terry Redman said “The changes are the result of extensive consultation with industry and the community and will allow for increased competition in the water services sector.
“This means that for the first time, all water providers will operate under the same set of powers and obligations, allowing them to provide a full range of water services, including sewerage, and operate anywhere in the State.”
Alternative utilities to Water Corporation will now be able to offer services such as bulk water supplies, drainage and sewerage services which they were prevented from offering under previous legislation.
