Northern Adelaide Irrigation Scheme

In reply to the Hon. J.A. DARLEY (13 November 2018).

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment): The Minister for Primary Industries and Regional Development has advised:

1. 20 kilometres of the 30-kilometre trunk main has been installed. Earthworks at the Bolivar Waste Water Treatment Plant has been completed. Concrete works for piles and footings is well underway. Earthworks at the Earth Bank Storage site at Korunye, approximately five kilometres north-west of Two Wells is underway.

2. The project is on schedule and on budget, with first water available for customers scheduled for November 2019. Other works will continue after this date, for example, on mains completion, and these are expected to be completed in 2020.

3. The cost for irrigation water is broken into three components:

(a) A one-off capital contribution that enables connection to the scheme based on annual contracted water volumes. The cost is a once only $2.90 per kilolitre.

(b) An annual availability charge based on annual contracted water volumes at a cost of $0.24 per kilolitre annually.

(c) A consumption charge based on actual water volumes consumed at a cost of $0.25 per kilolitre.

I am advised that annual price indexation is linked to the Australian Producer Price Index for the duration of the water contracts of 45 years, that is, three contract terms of 15 years each.

I am further advised that should the construction cost and/or operating cost be below current assumed budgets, then all customers of the scheme will realise a cost saving from the initial prices. It is too early in construction and operation to determine if savings will be achieved.