SA Water Infrastructure

The Hon. G.E. GAGO (15:17): My question is to the Minister for Water and the River Murray. Will the minister update the chamber on how this government is investing in upgrading dam infrastructure in South Australia?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (15:17): I thank the Hon. Ms Gago for her most important question. She never resiles from asking the hard questions in this place. She keeps us on our toes. The Kangaroo Creek dam is a critical part of SA Water's infrastructure. The dam is located in the Adelaide Hills on the River Torrens and stores water that is then supplied through the Hope Valley reservoir and the water treatment plant. The dam was constructed in the late 1960s to the standards of the day, but it is necessary to assess the dam's condition on a regular basis, especially in the light of updated regulations.

The dam safety review of the Kangaroo Creek dam determined that the dam and its related structures are in a safe and serviceable condition under normal operating conditions. However, the spillway capacity and earthquake resistance do not meet the updated Australian National Committee on Large Dams Guidelines on Dam Safety Management 2003. In 2014, the dam was assessed as part of SA Water's large dam portfolio risk assessment. The assessment found that in the unlikely event of a dam failure caused by flooding, a large section of the population below the dam would be at risk and the community could incur a significant economic loss.

In order to manage the dam safety risks, SA Water made a commitment in 1998 to meet the Australian National Committee on Large Dams guidelines for managing the safety of all of its dams. As a result, SA Water has been implementing a long-term program of works to ensure all dams under its control meet these ANCOLD guidelines. This approach is consistent with other water utilities across the country and represents best practice in dam safety and management.

After a lengthy investigation process, approval was gained to commence a dam safety upgrade project. The project approval budget is $94.655 million, and the total project spend as at the end of June 2016 was $13.445 million. The scope of works includes the widening of the spillway, extending the outlet works, raising of the embankment and strengthening of the concrete walls. These works are expected to take around three years to complete.

The contract was awarded to a South Australian contractor and construction commenced in January 2016. The main focus of the first year of construction will be excavating the spillway and extending the outlet works. In the second year construction work will primarily involve concrete work on the spillway and an extension of the concrete face slab, and demobilisation is scheduled for the third year.

I understand that a stakeholder engagement strategy is active to ensure that key stakeholder groups are aware of the project and that any community issues are managed during construction. Local residents are regularly updated as construction develops. I am told that the contractor commenced blasting in August, and this has progressed without issue to date.

SA Water, through its construction partner Bardavcol, has directly employed over 50 people on the construction site already in various roles. Besides providing local employment, it has been a boon for the local community and economy, for local businesses and service providers within the area. As expected, the project benefits have also rippled into the South Australian economy, seeing over 50 contracts being awarded to businesses directly associated with projects involved in construction.

Further to this, the project has directly been responsible for providing an opportunity to develop young people, with one graduate and two trainees to date employed to gain experience directly from the project. I am pleased to report the project is tracking well, on time and on budget.