WATER GRID ATTRACTS INTERNATIONAL INTEREST

The State Government will capitalise on growing interest from national and international manufacturers to lock in pipes for the Water Grid and other projects at the best possible price, Premier Peter Beattie said today.

When the Water Grid started to take shape in December 2005, only one major Australian supplier and one emerging Australian supplier had the current capacity to meet contract requirements.

Now, enquiries to supply pipe had been received from companies in Australia, Japan, China and Indonesia as the details of the Water Grid circulated through engineering and manufacturing circles here and internationally.

"This is no accident. We have established a Pipe Procurement Centre that is proactive in the market here and overseas," Mr Beattie said.

"While current suppliers, Tyco and Iplex, are performing well, this level of added competition means that Queensland will get a competitive price in a time of unprecedented demand.

"We are going to strike while the iron is hot and take this chance to lock in pipe not only for the remaining parts of the grid but for projects outside of the southeast.

"Companies around Australia and overseas are telling us that our solid economic reputation, coupled with our record $14 billion infrastructure program this year makes Queensland a great place to do business."

Mr Beattie said the Government had pulled out all of the stops to ensure pipe supply.

"We have stockpiles well in advance of current construction requirements and have strong interest from potential suppliers. It’s an enviable position for Queensland in a hot infrastructure market and ensures will deliver on our promise to have the Water Grid up and running by December 2008."

Mr Beattie said the Government this week would advertise around the world for formal expressions of interest to secure pipe for remaining Water Grid work and projects such as the proposed 110km pipeline from the Fitzroy River to the Gladstone State Development Area and the proposed Wivenhoe to Toowoomba connection.

The State Government also has called for expressions of interest from companies who can supply alternative emergency water supplies if the drought extends into the next decade.

Mr Beattie said the Government had received unsolicited offers of alternative supplies, including mobile desalination plants and water to be shipped in from rain-rich areas such as north Queensland, New Zealand and Tasmania.

"These are contingencies we will look at for the longer term. If they stack up and in the unlikely chance they are needed, they could be implemented between 2018 and 2025," he said.

"In the meantime, we will have them investigated and costed, so if contingency supplies are needed, we can hit the ground running."

Media contact: Scott Dixon 0448 614 420

1 July 2007