Public Works Committee: Capital upgrade of Water Trunk Main Infrastructure in the Regional Network Area Program

Ms SAVVAS (Newland) (11:25): I move:

That the 158^th report of the committee, entitled Capital Upgrade of Water Trunk Main Infrastructure in the Regional Network Area, be noted.

This project from SA Water (the agency) proposes to upgrade water trunk main infrastructure in Port Pirie South, Risdon Park, Risdon Park South, Crystal Brook, Yankalilla, Normanville and Carrickalinga—some areas that would be well known to you, of course, Mr Speaker.

The SPEAKER: Yes, though I have never heard them referred to by the acronym that SA Water referred to.

Ms SAVVAS: The works aim to improve the reliability, pressure and water quality to these regional networks, ensuring they are suitable for population growth. SA Water operates and maintains more than 27,000 kilometres of water mains across South Australia and that is, of course, growing in my own community; we are adding mains every minute of the day. As part of this renewal program, SA Water has identified three separate replacement and expansion projects.

Project 1 will replace a section of the Betaloo trunk main. Constructed in the 1930s, the main is part of a major pipeline network that feeds water from the Morgan-Whyalla pipeline at Crystal Brook to the Bundaleer trunk main near Mundoora. Water from the trunk main is used primarily to supply Crystal Brook and its surrounding farmland.

Project 2 will replace a section of the Port Pirie South trunk main. Constructed in 1961, the water main supplies approximately 2,800 customer connections within Port Pirie South, Risdon Park South and Risdon Park. The pipeline is experiencing an increased number of failures, resulting in an increase in unplanned customer water service interruptions, so it was, of course, very important to get it done.

Project 3 will duplicate the Yankalilla/Normanville/Carrickalinga trunk main, which supplies water to approximately 2,500 customer connections. The area has seen substantial growth over the last decade and is expected to grow significantly in coming decades. In recent times, during high demand periods, the existing infrastructure has not been able to provide sufficient inflows into the system storage tanks, risking water security in the region. The works will duplicate the existing main, following a new northern route to bypass a forested area.

In total, the projects will install approximately 11.6 kilometres of new pipeline. All three projects will also involve the addition of new valves and fireplugs. The works will provide for future population growth needs, as well as ensure compliance with the Australian Drinking Water Guidelines and relevant performance targets. Construction is anticipated to commence in the first quarter of next year, with the expectation to be practically complete in late 2026.

The project expects a capital expenditure of $36.2 million, and the agency does not anticipate additional operational costs after its completion. A majority of the works will be undertaken on SA Water easements, and the agency will establish new easements as required. Any works undertaken on Crown or council land will be undertaken, of course, in accordance with the Water Industry Act.

SA Water uses procurement frameworks that enable the sequential award of work to suppliers, incentivising high performance to secure the continuity of work. This model delivers significant efficiency benefits through collaboration, innovation, consistency, planning and programming.

SA Water has included the delivery of the Beetaloo and Port Pirie South projects in the pipeline delivery partners program of works. This procurement process for establishing this framework has been conducted in accordance with SA Water's policies and procedures. Award for the design and construct packages shall be in accordance with SA Water's delegation of financial and procurement authority, and applicable Treasury and government policies.

The project is being managed in accordance with SA Water's corporate project management methodology by a project manager from the agency's capital planning and delivery group. The project manager is responsible for project development and delivery, including seeking approvals and managing works.

SA Water uses a business management policy and framework to identify and manage project risks. Key risks include: potential costs and scheduled impacts for which controls have been identified, damage to council assets and private properties for which detailed preconstruction and dilapidation surveys will be undertaken, as well as the development of a construction methodology and a stakeholder management plan, and underground services or other construction challenges for which detailed planning and design include identification of services as well as geotechnical investigations.

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, use of local expertise and contractors, reducing carbon emissions, flexible processes and products, and recycling and re-use.

An environmental control plan has been prepared to ensure the project is delivered in compliance with the relevant legislative framework. Under the Water Civil Framework Delivery Partnership, the contractor has an established construction environmental management plan outlining general environmental controls and mitigation measures. A site environmental management plan will be developed to address site-specific environmental conditions. Both plans will be monitored by site inspections and environmental audits.

The agency is in the process of reviewing native title implications at the three project locations. An independent heritage risk assessment will be undertaken at each location. Should works encounter or impact Aboriginal heritage, the construction contractor will be required to comply with SA Water's standard operating procedure for the discovery of Aboriginal heritage. Additionally, all site construction employees will attend a site-specific Aboriginal cultural heritage induction. The agency has identified no project impact on local or state heritage places or items.

SA Water is in ongoing consultation with adjacent landowners to minimise construction impacts. Internal stakeholders and partner organisations will be kept informed throughout the project life cycle via project progress meetings. 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 capital upgrade of water trunk main infrastructure in the regional network area project.

The witnesses who appeared were Emma Goldsworthy, Senior Manager, Capital Delivery, SA Water, and James Martin, Senior Project Manager, SA Water. I thank the witnesses for their time. I would also like to thank yourself, Mr Speaker, as well as the member for Stuart, for your written statements in support of this project for your respective electorates.

Based on 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.

The Hon. G.G. BROCK (Stuart) (11:32): I take great pleasure in speaking on this very briefly. As the member has indicated, I did write a submission supporting the project for regional trunk upgrades through SA Water.

One of the things I am very pleased to see is that there are a lot of water trunk upgrades across regional South Australia, particularly in the area around Port Pirie, Crystal Brook and associated areas. Mr Speaker, you and I are both advocates for regional South Australia in ensuring opportunities are there for future growth.

In my community of Port Pirie and surrounding areas, Crystal Brook and so on, there is lots of interest regarding not only opportunities for business but also a relocation of people coming in from the Eastern States. If we are going to have people coming in we must have security of the water supply. The water pipelines in that area are very old and antiquated but this project will see the renewing of the trunk line areas there and also give security and confidence to the people coming into those areas. I have great privilege in endorsing this report.

The SPEAKER (11:33): I would just like to say a few words about this process. While I always welcome any sort of infrastructure upgrade in the area, the report actually bundled together three different projects from three different parts of South Australia, which made it hard to follow as a local member of parliament.

The bit that related to the area that I represent in the seat of Mawson was Carrickalinga, Normanville and Yankalilla, which was referred to in an acronym—which I think was CNY, or I might have got the order around the wrong way, but I have never in the whole time I have lived in our local area heard of Carrickalinga, Normanville and Yankalilla referred to as that acronym or any acronym. Also, the report called those towns 'suburbs'; they are definitely not suburbs. To SA Water, I think you can do better in terms of pulling together your reports, but, again, thank you for the work that is being done in my local area.

Mr TELFER (Flinders) (11:34): I rise to briefly make a contribution and reflect on your commentary, sir. I appreciate the correspondence that you sent to the Public Works Committee, our committee, on this project. Rather than speaking about the detail, I would like to highlight the challenge of the lack of detail within this process.

The Public Works Committee is such an important aspect of the parliament's oversight of capital projects that are put forward by the government, the departments and the associated corporations for consideration of significant expenditure in our state. This one is an example—and we have already heard from the Chair of the committee on a number of these different projects—that really underlined to me the differences between the way that the departments and corporations present material.

If anyone takes the time to reflect on Hansard, good on them; if they take time to reflect on Hansard of committee meetings, they deserve the utmost respect of all of us. In that committee meeting, I highlighted that while I certainly do not discount the importance of significant investment especially into regional water infrastructure, the lack of detail within this presentation, the bringing together of three disparate areas for an allocation for consideration by the Public Works Committee that have no correlation between them—and it is a project worth over $30 million when these three are put together—and the lack of information that was provided to the committee was a real concern for me.

I highlighted this to SA Water at the time. I want to make sure that the minister responsible for SA Water oversight is aware of it as well because, as we know, there is going to be a significant investment into water infrastructure, and the information that is provided to the Public Works Committee and thus to parliament as a whole needs to be more thorough. We need to have greater insight into the different aspects of this so that we can properly make the judgement on whether we recommend, as the Public Works Committee, the expenditure that is put forward by SA Water.

Every other department that presents to us—whether it is about complex housing proposals, infrastructure and transport, or education, which we heard from later in that committee—gives us as committee members detailed insight into the different aspects of the project, how much of the allocation is design cost, how much of it is project delivery and a lot of the componentry costs of it as well. SA Water continues to fail the committee when it comes to giving us enough information to be transparent and make well-informed decisions.

Sir, I am glad that you highlighted a few aspects in your correspondence; I did so in the committee meeting. I hope the minister takes this up on behalf of the committee and on behalf of the parliament as a whole. SA Water needs to make sure they keep parliament well informed with transparent information so that we can have a more pure and fulsome insight into the expenditure they are doing through their capital projects. The one that is highlighted within this report really was scant in detail and it left me as a committee member really scratching my head as to exactly what was going to be achieved through this allocation.

Ms SAVVAS (Newland) (11:38): I would like to thank all members for their contributions. I would like to acknowledge that we well and truly have taken on that feedback as provided by members and by you, Mr Speaker. We are in the process of drafting communication to SA Water asking for a more thorough and robust submission and perhaps evidence presented to the committee in the future. I am also happy to advise the house and the members who are so interested that I have also spoken with the minister about those concerns.

The SPEAKER: Excellent work. Thank you for the leadership and the advocacy that you have taken up on behalf of the people of South Australia.

Motion carried.