Parliamentary Committees

Public Works Committee: Gawler Tank Project

Ms HOOD (Adelaide) (11:57): I move:

That the 114^th report of the committee, entitled Gawler Tank Project, be noted.

The Gawler Tank Project is located within the Gawler council, approximately 40 kilometres north of the Adelaide central business district. Built in 1907, it has reached the end of its design life and needs replacing to ensure continued baseline water service capability, which currently stands at approximately 6,200 consumers.

Additionally, due to anticipated network growth, the current size will be unable to sustain the necessary backup water storage required for the expected future demand of the water supply network in the region. The project proposed by SA Water, the agency, will construct a new three-megalitre tank, which will support the long-term viability of services and ensure ongoing regulated standards of water services for the region now and into the future.

During concept development, the agency conducted investigations into several upgrade options considering technical and financial components, risk assessment and net present value. The first option examined rehabilitating the existing concrete tank, which was deemed unfeasible due to the structural issues and the lack of capacity to support future network growth. The second option explored building a new three-megalitre concrete tank in a new location, which avoids the disruption of existing services but incurs significant extra cost due to land acquisition.

The third option involved the construction of a new concrete tank within the existing tank, which was deemed unsatisfactory due to inherent construction challenges. The fourth and preferred option involves demolishing the existing tank and building a new three-megalitre concrete tank in the existing location. This solution is preferred as it presents lower construction risks, provides timely delivery and minimises operational and maintenance interventions over the asset's life cycle.

Startup activities at the site have commenced, with the works expected to be practically complete early next year. The agency expects the project to cost $17.7 million, and funds are available within the capital budget submitted by SA Water to the Essential Services Commission of South Australia. The tank will be built on land owned by SA Water and ongoing operational costs are not expected. The agency states the project will not impact on SA Water's overall contributions to government or SA Water's customers' bills.

The agency utilises procurement frameworks and enables the sequential award of works to suppliers, a process that incentivises high levels of performance in order to secure the continuity of work. This model delivers significant efficiency benefits through collaboration, innovation, consistency planning and programming. In 2023, the agency extended its major framework partner agreements and the Gawler Tank Project has been included within the agency's water civil major framework.

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

Debate adjourned.