Public Works Committee: Moana Growth Project

Ms HOOD (Adelaide) (11:43): By leave, on behalf of the member for Florey, I move:

That the 109^th report of the committee, entitled Moana Growth Project, be noted.

Between 2017 and 2024, SA Water (the agency) has recorded a 4.5 per cent annual increase in new customer connections in Moana. This has increased from a previous annual growth of 2.6 per cent. Put into perspective, since 2017 there has been a 37 per cent increase in water connections in the area. It is also a rapidly growing region, making the project a high priority for the agency to ensure the delivery of regulated standards of water to the people of Moana and surrounding areas.

During concept development, SA Water conducted investigations into several upgrade options to determine the most viable solution. These investigations consider technical and financial components, risk assessment and net present value, and included duplicating the existing water main, upsizing the existing water main or installing a booster pump station. The agency selected to duplicate the water main to augment supply as it offered the most cost-effective and sustainable solution with the lowest level of construction and operational risk.

The project outcome will support an expanded network to meet increasing demand in the area and sustain reliable baseline service to customers. The preferred option proposes duplication of the existing water main along Tatachilla Road, Maslin Beach Road and Commercial Road between California Road and Albany Way. The construction corridor is predominantly on road reserve owned by the Department for Infrastructure and Transport, with a small portion to be built on verge land belonging to the City of Onkaparinga council. Construction is anticipated to commence in the first quarter of this year and expected to be practically complete by September of this year.

The project will cost $11.5 million, and the agency expects no ongoing operational expenses. Funds for the project are available within the capital budget previously submitted by the agency to the Essential Services Commission of South Australia for the 2024 regulatory determination. There will be no impact on SA Water's overall contributions to government or SA Water's customer bills. The agency notes that an economic benefit-cost ratio was not calculated as the benefits are a continuation of an existing service and cannot be quantified in financial or economic terms.

SA Water uses procurement frameworks that enable the sequential award of works to suppliers that are similar in nature. This model delivers significant efficiency benefits through collaboration, innovation, consistency, planning and programming whilst maintaining a level of service that benefits SA Water's customers. Last year, the agency extended three major framework partner agreements, which apply across the suite of the agency's programs, and the Moana Growth Project has been included in the agency's civil major framework program.

The procurement process has been conducted in accordance with SA Water policies and procedures, conforming to all applicable Treasury and government policies. SA Water engineering was responsible for the analysis and concept design, and a design-and-construct model has been selected to deliver the project.

The project is being managed by a project manager who is responsible for the development, including seeking approvals, management of the selected contractor, and overseeing works. The agency uses a risk management policy and framework to identify and manage project risks and states that this is an integral part of the project management process. Key risks include impacts to the environment, for which design has aligned the pipeline to minimise such impacts, and network isolation failures and loss of supply to customers, for which detailed planning and coordination aims to minimise impacts.

SA Water's corporate-wide policies reinforce a commitment to operating sustainably to support viability now and into the future, and the selected contractor will be encouraged to develop processes that consider short and long-term local and global environmental, social and economic considerations. Initiatives include:

efficient use of resources and raw materials, such as sourcing materials locally where available;

use of local expertise and contractors, where the expertise exists in the area;

reducing carbon emissions;

development of flexible processes and products; and

recycling and re-use to reduce waste to minimise the use of local waste management companies.

An environmental control plan has been prepared to ensure the project is delivered in compliance with the relevant legislative frameworks, and the contractor has established a construction environmental management plan outlining general environmental controls and mitigation measures. The site environmental management plan will be developed to address site-specific environmental conditions. Regular work health and safety and environmental audits will be scheduled during the construction phase to ensure that construction management plans are implemented. The agency does not expect the project to impact native vegetation, and approvals have been sought for the removal of two trees.

The project site lies within the Kaurna people's native title claim, and the agency's legal team confirms that native title does not exist within the project area. Assessments have indicated a medium risk of encountering or impacting Aboriginal heritage, and the construction contractor will be required to comply with SA Water's Standard Operating Procedure for Discovery of Aboriginal Heritage. All site construction employees will also attend a site-specific Aboriginal cultural heritage induction. The agency has identified no impacts on non-Aboriginal heritage places or items.

Due to works being parallel to the existing pipeline, the agency is in ongoing consultation with relevant stakeholders. This includes the Onkaparinga council regarding the portions of council land through which the project passes, as well as to ensure sufficient traffic management is implemented during construction. Additionally, internal stakeholders and partner organisations will remain informed throughout the project's life span. The submission has been circulated amongst relevant government departments, which have indicated support for the project.

The committee examined written and oral evidence in relation to the Moana Growth Project. Witnesses who appeared before the committee were Peter Seltsikas, Senior Manager, Capital Delivery, SA Water, and Jasmine Kabir, Project Manager, 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.