Public Works Committee: Yankalilla Growth Stage 2

Mr BROWN (Florey) (11:07): I move:

That the 28^th report of the Public Works Committee, entitled Yankalilla Growth Stage 2 Project, be noted.

The South Australian Water Corporation (SA Water) proposes to install a new section of pipeline and a pressure-reducing valve in the Yankalilla, Normanville and Carrickalinga network areas, as well as upgrade two existing storage tanks. The current drinking water configuration for the Yankalilla, Normanville and Carrickalinga system, on the western coast of the Fleurieu Peninsula, limits the volume of water fed into the storage tanks that supply the network.

The system typically experiences several high-demand events during the summer months. During past heatwaves the system has fallen below reliable and safe operating levels, presenting an increased risk to customer supply. The current strain on the network will grow along with the population in the area, projected to increase from 2,500 connections to over 3,500 connections over the next 30 years. SA Water maintains that a solution is needed to sustain acceptable levels of service and water quality.

The solution proposed is the Yankalilla Growth Stage 2 Project, which is designed to enhance the ability of the network to maintain safe and reliable operating levels, particularly during periods of peak demand. The project will introduce critical redundancy to protect water supply and insulate the network against disruptions. Customers stand to benefit from a more reliable and resilient network, designed to meet the future needs of the community. Water quality, in particular water age, will also be improved thanks to the reduced delivery time between network and consumer.

The proposed scope of works includes a new 3.8-kilometre pipeline to feed both Normanville tanks directly from the Main South Road trunk main, as well as a new pressure-reducing valve (PRV) next to the intersection of Main South Road and Smith Hill Road. Inlets to the Normanville and Normanville Heights potable water storage tanks will also be upgraded. The two existing tanks at Normanville and Normanville Heights are located on land owned by SA Water. The new pipeline and PRV will be located within a reserve owned by the Yankalilla council, which has been consulted and is supportive of the project.

Award for the design and construct package shall be in accordance with SA Water's delegation of financial and procurement authority and applicable government policies. The project will be managed by a project manager from SA Water's capital planning and delivery group. In June 2020, SA Water awarded three major framework partner agreements to Fulton Hogan Utilities, John Holland and Guidera O'Connor, and McConnell Dowell and Diona. These agreements apply across the suite of SA Water's system-based programs. The Water South framework partner, John Holland and Guidera O'Connor, will submit a proposal to complete this project. SA Water will evaluate the proposal, focusing on value for money and the suitability of the work plan.

The operating and capital costs of these public works will be funded through SA Water's regulatory business plan; therefore, the project will have no impact on SA Water's overall borrowings. Construction is scheduled to commence in the third quarter of 2023, with practical completion in the fourth quarter of 2024. SA Water's risk management policy and framework will apply over the course of the project. They will form an integral part of the process to identify and assess risks and ensure appropriate mitigation measures are incorporated.

All project risks will be logged and monitored in a live risk database and addressed as appropriate by the team during the life of the project. SA Water's corporate-wide policies reinforce its business commitment to operating sustainably to support viability, now and into the future. The selected contractor will be encouraged to develop processes with due regard for short-term and long-term, local and global, environmental, social, and economic considerations.

SA Water assures the committee that engagement with the District Council of Yankalilla, as well as local landowners, will continue throughout the project to minimise and manage impacts. Regular progress meetings will keep internal stakeholders and partner organisations informed throughout the project life cycle.

The committee has examined written and oral evidence in relation to this project. Witnesses who appeared before the committee were Ross Papillo, Portfolio Manager, SA Water; and Peter Seltsikas, Senior Manager Capital Delivery, SA Water. I thank the witnesses for their time.

Based upon the evidence considered and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public works.

Motion carried.