House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Parliamentary Committees Public Works Committee: Swan Reach Elevated Water Tanks Renewal Project Public Works Committee: Swan Reach Elevated Water Tanks Renewal Project Ms SAVVAS House of Assembly Newland Ms SAVVAS (Newland) (11:16): I move: That the 157^th report of the Public Works Committee, entitled Swan Reach Elevated Water Tank Renewal Project, be noted. The proposed project from SA Water, the agency, will construct new elevated water tanks at Swan Reach to ensure reliable water supply for customers within the region. The works will replace aged tanks at the SA Water treatment in Swan Reach, 170 kilometres north-east of metropolitan Adelaide. The treatment facility was built in 1978 and comprises four fibre-reinforced polymer tanks with a total capacity of 180 kilolitres. These assets supply water for approximately 700 customers in the region and have reached the end of their design life. Replacement of the tanks and infrastructure is a high priority to ensure ongoing delivery of the agency's regulated standards of water services for SA Water customers. The proposed works will decommission and demolish the existing aged tanks and supporting structures, as well as construct two new 90-kilolitre elevated tanks on an adjacent tract of Crown land. The replacement works will include supporting structures, pipework, inlet and outlet arrangement, as well as associated infrastructure. The decision to construct the new tanks on land adjacent to the existing facility is really important, as it prevents interruption to customer drinking water supply, ensures safety to site personnel and maintains access to the water treatment plant. During concept development, SA Water conducted investigations into two options compared against a do-nothing base case. These investigations considered technical and financial components, risk assessment and net present value, resulting in the following options: the first option involved demolishing the existing elevated tanks and constructing a new 180-kilolitre storage facility incorporating four 45-kilolitre elevated tanks and associated equipment; the second option proposed demolishing the existing elevated tanks and constructing a new 180-kilolitre storage facility incorporating two 90-kilolitre elevated tanks and associated equipment. The second option was determined the preferred option as it presents significantly lower risk to existing SA Water infrastructure while also addressing the key drivers of the project. Construction is anticipated to commence in the first quarter of next year with the expectation for the project be practically complete in early 2027. The project is expected to cost $12.4 million and the operating and capital costs for the project will be funded through the 2024 regulatory determination. The project will therefore have no impact on SA Water's overall borrowings or contribution to government. A section of pipework will require the acquisition of land through an easement on adjacent private land and land acquisition will be undertaken in accordance with the relevant land and property acts. SA Water uses procurement frameworks that enable the sequential award of works to suppliers, incentivising suppliers to perform well to secure the continuity of work. This model delivers significant efficiency benefits through collaboration, innovation, consistency, planning and programming. In June last year, the agency extended its major framework partner agreements and the Swan Reach Elevated Water Tank Renewal Project has been included in the agency's water civil major framework program. The procurement process has been conducted in accordance with SA Water's policies and procedures and conforms to all applicable Treasury and government policies. SA Water Engineering has been responsible for the analysis and concept design, and a design and construct model has been selected to deliver the project. SA Water states that a major framework partner will submit a proposal to complete the project. 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 identified include (a) increased safety concerns due to tasks required at elevated heights, for which the design does include a detailed construction execution plan, (b) impacts on local native vegetation due to the increased site footprint, for which the design conserves vegetation where possible, and (c) network isolation issues and service disruptions for customers during tie-in activities, for which detailed planning is in place for shutdowns, effective coordination and impact assessments. 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 the efficient use of resources, the 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 frameworks. 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. SA Water states that the proposed easement where the new elevated tanks will be constructed falls within the First Peoples of the River Murray Mallee Native Title Claim No. 2. This claim is currently in the process of being negotiated and a consent determination is not likely until next year. SA Water is in the process of providing the native title claimants with a notification of works, and senior representatives have advised the agency that they have no concerns with SA Water building the infrastructure on this site. Assessments indicate a low risk of encountering or impacting Aboriginal heritage and the construction contractor will be required to comply with SA Water's standard operation 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 state heritage places or items. SA Water is in ongoing consultation with the Mid Murray Council and adjacent landowners to manage and minimise construction impacts. Internal stakeholders and partner organisations will be kept informed throughout the project life cycle via project progress meetings. Project documentation 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 Swan Reach Elevated Water Tank Renewal project. Witnesses who appeared before the committee were Emma Goldsworthy, Senior Manager, Capital Delivery, SA Water, and Sami Abou-Hamdan, Senior Project Manager, SA Water. I do want to 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.