POWER AND PIPE OPERATION PART OF DESALINATION PLANT PPP
The delivery of power, the operation and maintenance of a major pipeline and the purchase of renewable energy will form part of the overall Public Private Partnership (PPP) for Victoria's $3.1 billion desalination plant project.
(Media-Newswire.com) - The delivery of power, the operation and maintenance of a major pipeline and the purchase of renewable energy will form part of the overall Public Private Partnership ( PPP ) for Victoria’s $3.1 billion desalination plant project.
The PPP also includes the construction of the desalination plant and the design and construction of the 85 kilometre pipeline to connect to Melbourne’s existing water supplies, which was announced last year.
Water Minister Tim Holding said packaging these components of the project together would enable the private sector to deliver a better result for the community.
“The Brumby Government’s desalination plant is the most important water project undertaken for Melbourne since the construction of the Thomson Dam more than 25 years ago,” Mr Holding said.
“By the end of 2011 the plant will provide 150 billion litres of new water regardless of rainfall enabling us to meet the challenges of climate change and a growing population.
“Combining the various key elements of the desalination plant project under the one funding arrangement will ensure value for money for water consumers, provide improved services, transfer risk to the private sector and provide certainty of delivery to meet community needs.
Mr Holding said the delivery of power to run the plant and pipeline and the securing of the necessary renewable energy for the project, would also be the responsibility of the successful bidder.
“The plant will require around 90 megawatts of power which will be offset by the purchase of renewable energy, in addition to the Government’s current renewable energy targets. This means the plant will be carbon neutral,” he said.
“As part of the Environment Effects Statement ( EES ) we are investigating a range of options for power supply, including grid-based connections, gas generation and hybrid solutions.
“In order to progress the EES studies around power an investigation corridor had been identified for possible grid connected power supply.
“These investigations will involve extensive consultation with landowners and various property-based studies to assess the viability and suitability of this option.
“The outcome of these investigations will be released when the EES is exhibited for public comment later this year.”
Mr Holding said the Partnerships Victoria framework was Australia’s leading model for partnerships between Government departments and agencies and the private sector.
“This funding model ensures water remains in public hands,” Mr Holding said.
“Public Private Partnerships have delivered value for money and improved services to the community across 17 projects and is the best model to deliver this vital infrastructure to help boost water supplies in Victoria.”
In accordance with Partnerships Victoria policy, bids received in response to the proposals will be tested against the Government’s quantitative benchmark, the Public Sector Comparator ( PSC ) and will also be required to meet public interest tests.
Expressions of Interest for project partners will be released in the middle of this year.
Mr Holding said the investment in water infrastructure would provide a boost to the economy and create opportunities for communities in Gippsland.
“The creation of new jobs during construction and ongoing jobs as part of the operation of the plant is great for Victorians and the local community,” Mr Holding said.
“Ancon Drilling, a Korumburra-based company, was recently awarded an $8.5 million contract for horizontal directional drilling at the site and design and construction of inlet and outlet pipes for the later development of a sea water sampling plant.”
Mr Holding said water bills would increase to help pay for the desalination plant and other water projects underway across the State.
“Melbourne water users have the lowest average water bills of any major city in Australia,” he said.
“However, the Government indicated in August last year that average household water bills in Melbourne will increase by 14.8 per cent plus CPI from 1 July 2008, to help pay for the $4.9 billion Next Stage of the Government’s Water Plan.
“Concessions for water bills for low-income earners have been increased by $41 million in the 2008-09 State Budget to help offset this rise in water bills.”
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