NEW PLAN TO INCREASE DESALINATED WATER OUTPUT
Published Thursday, 09 August, 2007 at 01:52 PM
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
August 9, 2007
The Beattie Government will use expected cost savings on the Gold Coast Desalination Plant to fund a $30 million upgrade that could boost its output by up to 47 million litres a day, Deputy Premier and Infrastructure Minister Anna Bligh said today.
Ms Bligh said the funds would be used to increase the size of the $1.2 billion plant’s inlet tunnel and outlet structure and develop a business case covering the potential boost in capacity from 125ML a day to more than 170ML.
Ms Bligh said that the project was still on target for delivery in November 2008 and she indicated that cost savings in the order of $30 million were expected.
She said that since the start of design and construction late last year savings were expected from improvements and innovation in design, enhanced construction work practices, early lock-in of contracts and material supplies, savings developed through competitive subcontracting and improved productivity in tunneling.
“These gains have been achieved through smart work and hard work,” she said.
“As well continued dry weather is working in our favour.”
Ms Bligh said the expected cost savings to date offered a "golden opportunity" to investigate expansion without adding to the project's budget.
"At this point in time, the desalination plant project is on time and under budget and we will invest those savings in exploring further water security for south-east Queensland," Ms Bligh said
“The rationale behind this move is simple. The Government is constantly on the lookout for sources of supply to drought-proof south-east Queensland.
“We are investigating the potential for significant new non-weather dependent water that would take enormous pressure off our dam.”
Ms Bligh said the potential 37% boost to capacity offers increased security of supply on the Gold Coast.
If the upgrade proceeded, more water would be circulated to Gold Coast reservoirs.
She said that the Government would consider a business case for the future expansion opportunity, including the costs to expand the plant in February 2008.
Meanwhile, Ms Bligh said an Auditor-General's report into the desalination project tabled in State Parliament today noted the Department of Infrastructure and the Gold Coast City Council had worked with plant proponents SureSmart Water to tighten governance arrangements.
"I am pleased to acknowledge the Auditor-General’s opinion that there has been a noticeable change in project governance and management systems over a very short period," she said.
"Sure Smart Water was a rapid start-up company and it is moving swiftly to address the Auditor-General's concerns.
"SureSmart Water has established an Audit and Risk Committee and appointed three highly-credentialed independent board members. Reporting and risk management processes have been enhanced. The role of the independent auditor has been strengthened. Both the company and the Alliance have appointed new financial, technical and operational staff to support the project."
Ms Bligh said that following a detailed review by KPMG, the Department of Infrastructure will establish a dedicated unit to guide Special Purpose Vehicles delivering infrastructure projects and to develop streamlined procurement models.
Media contact: Deputy Premier’s Office 3224 6900
The Beattie Government will use expected cost savings on the Gold Coast Desalination Plant to fund a $30 million upgrade that could boost its output by up to 47 million litres a day, Deputy Premier and Infrastructure Minister Anna Bligh said today.
Ms Bligh said the funds would be used to increase the size of the $1.2 billion plant’s inlet tunnel and outlet structure and develop a business case covering the potential boost in capacity from 125ML a day to more than 170ML.
Ms Bligh said that the project was still on target for delivery in November 2008 and she indicated that cost savings in the order of $30 million were expected.
She said that since the start of design and construction late last year savings were expected from improvements and innovation in design, enhanced construction work practices, early lock-in of contracts and material supplies, savings developed through competitive subcontracting and improved productivity in tunneling.
“These gains have been achieved through smart work and hard work,” she said.
“As well continued dry weather is working in our favour.”
Ms Bligh said the expected cost savings to date offered a "golden opportunity" to investigate expansion without adding to the project's budget.
"At this point in time, the desalination plant project is on time and under budget and we will invest those savings in exploring further water security for south-east Queensland," Ms Bligh said
“The rationale behind this move is simple. The Government is constantly on the lookout for sources of supply to drought-proof south-east Queensland.
“We are investigating the potential for significant new non-weather dependent water that would take enormous pressure off our dam.”
Ms Bligh said the potential 37% boost to capacity offers increased security of supply on the Gold Coast.
If the upgrade proceeded, more water would be circulated to Gold Coast reservoirs.
She said that the Government would consider a business case for the future expansion opportunity, including the costs to expand the plant in February 2008.
Meanwhile, Ms Bligh said an Auditor-General's report into the desalination project tabled in State Parliament today noted the Department of Infrastructure and the Gold Coast City Council had worked with plant proponents SureSmart Water to tighten governance arrangements.
"I am pleased to acknowledge the Auditor-General’s opinion that there has been a noticeable change in project governance and management systems over a very short period," she said.
"Sure Smart Water was a rapid start-up company and it is moving swiftly to address the Auditor-General's concerns.
"SureSmart Water has established an Audit and Risk Committee and appointed three highly-credentialed independent board members. Reporting and risk management processes have been enhanced. The role of the independent auditor has been strengthened. Both the company and the Alliance have appointed new financial, technical and operational staff to support the project."
Ms Bligh said that following a detailed review by KPMG, the Department of Infrastructure will establish a dedicated unit to guide Special Purpose Vehicles delivering infrastructure projects and to develop streamlined procurement models.
Media contact: Deputy Premier’s Office 3224 6900