Sydney’s desalination plant has been further criticised, this time by the Nature Conservation Council of NSW (NCC). The NCC has referred to a proposal for funding made by AGL to Water Smart Australia. Water Smart is one of three major programmes being funded by the Australian Government Water Fund worth $2 billion. The Fund is being used to invest in water infrastructure, improved water management, and better practices in the stewardship of Australia’s scarce water resources, as well as supporting practical on-ground water projects that will improve Australia’s water efficiency and environmental outcomes.
AGL has applied to Water Smart for funding to invest $25 million in the development of a recycled water system that will represent a 214% increase on current recycled water use in Sydney. AGL intends to achieve this by using existing isolated gas mains and add a recycled water pipeline to a major gas construction project across Sydney. The use of AGL’s gas pipelines infrastructure will result in a 30% reduction in the cost of establishing the recycled water reticulation network. Even so, recycled water is unlikely to be competitive with potable water for non-residential consumption as currently priced by IPART. Submissions have been made by AGL to IPART regarding water tariffs.
AGL intends to act as the asset owners of the network and treatment plan, Sydney Water will be the retailer and customer manager, Agility will be responsible for network management, operations and development while Veolia Water will manage the water and waste water treatment technology and operations.
AGL has anticipated that the project could be completed within 5 years.
In light of AGL’s proposal, the NCC has called on the government to scrap the desalination plant.
Source: NCC, 20 January 2006.
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