Public Works Committee: Construction of Water and Wastewater Infrastructure to Enable Metropolitan Growth

Mr BROWN (Florey) (11:43): I move:

That the 99^th report of the committee, entitled Construction of Water and Wastewater Infrastructure to Enable Metropolitan Growth—Tranche 1, be noted.

This project from SA Water is a vital component of the government's Housing Roadmap, ensuring water supply for the anticipated significant growth in the metro north water supply system catchment. Growth in this zone is presently greater than the rest of South Australia and is also where most of the city's greenfield growth is expected, with four areas being investigated for suburban development. This tranche 1 project will undertake works that enable future augmentation to the system, ensuring service capacity for the expected increase in population. The works include new water mains, pump stations and additional storage capacity.

As with the water supply network, SA Water will see an increased demand in the northern suburbs wastewater system. The proposed works will prepare for the significant growth in future connections, as well as for the potential increase of water-intensive uses, recycled water schemes, extreme weather events and increased commercial and industrial activity.

The tranche 1 project requires capital expenditure of approximately $419 million, and the project is estimated to have an operational cost of $7.9 million over the current regulatory period. With the first subprojects commencing this year, the whole project is aimed for completion in early 2027. As the targeted benefits are attributed to a continuing water and sewerage service where the primary driver is not for economic benefit to the state, an economic benefit-cost ratio is not required for the project.

Master planning for the project was undertaken at both a system and investment planning level. After identifying the existing water supply system is insufficient to accommodate the expected growth, planning investigated two intervening options. The preferred option will focus works on upgrading and augmenting the existing water network rather than the alternative option, which would require building a new desalination water treatment plant.

System planning also identified that the existing wastewater system services are insufficient for growth, and, after investigating two intervening solutions, centralising treatment at the Bolivar wastewater catchment was the preferred option rather than constructing a new treatment plant in proximity to the new developments.

The tranche 1 project proposes works across Riverlea, Roseworthy, Angle Vale, Munno Para, Sandy Creek, Craigmore and Elizabeth East. The subprojects will upgrade infrastructure including mains, pumps, electronics, valves, connections and storage tanks. The works will be undertaken predominantly in road reserves managed by the Department for Infrastructure and Transport and the local council. However, the project will require the purchase and acquisition of several land parcels, and any acquisitions will be undertaken in accordance with the Land Acquisition Act.

SA Water plans to use established procurement arrangements with industry, including frameworks and panels with partners already experienced in delivering the augmentation, replacement and upgrading of water and wastewater infrastructure. The agency will establish new arrangements where necessary and when opportunities arise. These arrangements deliver significant efficiency benefits through collaboration, innovation, consistency, planning and programming.

Award of the design and construct packages will be in accordance with SA Water's delegation of financial and procurement authority and applicable Treasury and government policies. The project will be managed in accordance with SA Water's corporate methodology by a project manager who is responsible for the development and delivery of the overall project, including seeking necessary approvals and management of the selected contractor.

SA Water identifies and manages project risks through a business risk management policy and framework. The agency has identified potential risks including:

industry-wide cost escalation, for which the agency will work with major framework partners to minimise impacts of construction market constraints and supplier cost pressures;

misalignment between estimated growth requirements and developer forecasts, for which SA Water will hold early discussions for network configuration;

extended duration of interim tankering, for which prioritised scheduling and resourcing aims to minimise volume and duration of tankering;

lack of capacity of major framework partners, for which early engagement will identify if additional suppliers are required;

limited land availability, for which detailed planning and design aims to identify optimal outcomes for both the project and the public;

difficulties encountered during construction through built-up areas, for which detailed planning, design, and construction methodologies will balance the requirements of stakeholder, community and project needs;

underground services or other construction challenges, for which the agency will engage services and surveys to investigate conditions; and

damage of important environmental assets, for which the agency will engage cultural heritage, regulatory bodies and relevant cultural groups.

SA Water's corporate-wide policies are committed to operating sustainably, and the selected contractor for this tranche 1 project will be encouraged to develop and comply with processes with due regard for short and long-term local and global environmental, social and economic considerations. This includes considering conservation and efficient use of resources and materials, reduced carbon emissions, flexible products and processes, recycling and waste management and the use of local subcontractors, resources and materials where possible. SA Water will prepare environmental control plans to ensure subprojects are delivered in compliance with relevant environmental regulations. Where subprojects are delivered under partnership frameworks, contractors will be required to establish construction and environmental management plans and to develop site environmental plans to address site-specific environmental management.

Subprojects will be assessed individually to determine the likelihood of impacting Aboriginal heritage, and the agency assures identified risks will be managed appropriately. Measures may include commissioning heritage surveys; seeking permissions in accordance with the Aboriginal Heritage Act; developing a cultural heritage management plan and engaging cultural monitors; applying SA Water's standard operating procedure for the discovery of Aboriginal heritage; and instituting cultural awareness inductions for all onsite staff.

If any Aboriginal sites, objects or remains are found, the agency states that works should cease immediately and an Aboriginal engagement and heritage adviser contacted. The tranche 1 project lies within the Kaurna Peoples and Ngadjuri Nation #2 native title determination areas, and SA Water states that further native title assessment will be undertaken as the design for the areas is deployed. A future environmental and heritage risk assessment will investigate any impact on local heritage sites.

There is significant public awareness of the unprecedented growth in residential developments in Adelaide's northern metropolitan area, and SA Water has prepared a communication and engagement plan that covers all tranche 1 project activity. The agency will work with construction contractors to develop detailed communication and engagement action plans for each district to keep affected stakeholders informed. The acquisition of land and easements for the project is ongoing and SA Water will remain in consultation with landowners throughout the project. Further consultation with adjacent landowners will aim to minimise any construction impacts.

There are over 140 developers working within the tranche 1 project area, and the agency is communicating with key developers to best coordinate works. The project area spans several council areas and SA Water will work closely with the affected councils regarding the use of road reserves, acquiring development approvals, appropriate traffic management, hours of work and potential service disruptions.

The committee examined written and oral evidence in relation to the Construction of Water and Wastewater Infrastructure to Enable Metropolitan Growth—Tranche 1 project. Witnesses who appeared before the committee were Peter Seltsikas, Senior Manager, Capital Delivery, SA Water, and Andrew Evenden, Project Director, Program 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 work.

Motion carried.