WaterNSW Industry Opportunities Industry Briefing - 20 November 2019
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WaterNSW Industry Opportunities
Industry Briefing
20 November 2019
Welcome
• Housekeeping
Phones to silent
• Emergency evacuation
procedures No photos
• Acknowledgement of Country Please wait until the Q&A
sessions to ask questions
2 WaterNSW
Why we have invited you
• The scale and timetable for delivery of our portfolio is likely to challenge both the NSW
Government and the construction industry
• We want you to understand the opportunities where industry can work with
WaterNSW, and when those opportunities will come to market
• Today we will explain:
How and when we are The professional services
What the opportunities are going to engage with vis-à-vis construction
industry opportunities
• To learn about the details of our large unprecedented portfolio of diverse and
complex water infrastructure projects
• Timeframes for the first wave of procurement
3 WaterNSW
Agenda • CEO welcome and overview – David Harris • Our infrastructure pipeline and opportunities – Andrew George • Partnering with industry – Ronan Magaharan • Q&A – David Harris, Andrew George and Ronan Magaharan • Close – David Harris 4 WaterNSW
Chief Executive welcome
David Harris,
Chief Executive Officer
Who we are • WaterNSW is a State-Owned Corporation established under the Water NSW Act 2014 • We are responsible for supplying the State’s bulk water needs • We supply two thirds of water used in NSW from our: – 42 dams, rivers and pipelines to regional towns, irrigators, Sydney Water Corporation and local water utilities. • We build, maintain and operate essential infrastructure
What we do – Our Market Functions
We play a vital role in improving the availability of water that is essential for
water users and the communities throughout NSW – we do this through the
delivery of our Market Functions:
Source water protection
• protection of the Greater Sydney drinking water catchment
Bulk water supply
• supplying water from our storages to customers in the Greater Sydney drinking water catchment and in
the State’s regulated surface water systems;
System operator
• efficient management of the State’s surface and groundwater resources
Bulk water supply infrastructure planning, delivery and operation
• planning, developing, owning and operating infrastructure to meet customer-defined levels of service
and in support of NSW Government policy and priorities
Customer water transaction services
• providing efficient and timely services to end use customers
7 WaterNSW
Our area of operations 8 WaterNSW
How we fit in the water market
Our Customers
Sydney Water
Independent State
Owned Corporation
Government WaterNSW
Local Water Utilities Water treatment,
Department of Planning Independent State Owned
Local Government reticulation and retail
and Industry - Water Corporation
The policy-making arm of The Government’s bulk water
Local Governments
the Government Infrastructure authority
Plans, designs, procures,
Articulates Government's builds, operates and owns
policy outcomes from Agricultural Enterprises
water infrastructure to meet
Government funded Government’s policy
infrastructure Water end-users
objectives
Environmental Agencies
Regulators
9 WaterNSW NRA, IPART, NSW Health, EPAWhat has changed
We are capable of delivering large, complex water infrastructure projects, however, today we
now face a number of challenges due to the scale and timing of the Portfolio:
• We have to deliver an ambitious portfolio of water infrastructure works, some with ambitious
timeframes. For drought now and for future water security.
• The total value of capital works in planning and delivery is currently in the order of
$10 billion over 5+ years – the projects are:
Geographically Of diverse types, At different stages of
dispersed characteristics and scale development
• To assist townships experiencing severe drought conditions, a number of projects have to be fast
tracked and delivered within a short time frame
• To deliver the volume of work in the accelerated timeframes is a challenge, we need your
support to deliver.
10 WaterNSWOur strategic goals 11 WaterNSW
Our strategic goals will influence our selection of industry partners • We want demonstrated commitment and proven track record on safety and wellbeing, aligned with our own commitment to zero harm • We want partners who bring ideas and innovation • Our broader commitment to communities and our customers must be upheld • High standards of stakeholder and community consultation are expected • We want to strengthen our performance – we need experienced and trusted industry partners • We will make timely decisions – ensuring critical issues are dealt with expeditiously • A genuine partnership is essential in the delivery of this portfolio 12 WaterNSW
Our strategic context for drought responses
in Greater Sydney
• In extreme drought, the only practical responses are measures that “We have taken the
reduce demand and bring on-line climate-independent sources of decision to begin the
supply. planning for the expansion
• The NSW Government is doing both – responding through demand- of the desalination plant.
side measures (introducing water restrictions) and supply-side There will be other schemes
measures (expansion of the Kurnell desalination plant). for Sydney, for the Hunter
• In deep drought that may not be enough, so WaterNSW has and other parts of
commenced early investigations into augmenting Greater Sydney’s NSW….We will be investing
and the Illawarra’s bulk water supply network – potentially resulting in in dams, we will be investing
the construction of two additional desalination plants. in desalination, but also we
• At this stage the NSW Government has not finalised the investment must work on the adaptive
decision to proceed with these desalination options. side of the equation:
efficiency and using the
• If the drought breaks in the short term, the need for these great resource that is now
desalination projects will be re-evaluated.
called wastewater”
• If the drought continues beyond the short term, it is important that Dr Jim Bentley,
WaterNSW has completed all necessary planning work to be able to Deputy Secretary Water
deliver this water supply infrastructure in time. This is the only (DPIE Water),
responsible, prudent approach.
25 September 2019
13 WaterNSWOur infrastructure pipeline
and opportunities
Andrew George,
Executive Manager
Water Solutions &
Market StrategyOur initiatives and work in progress
OUR REPUTATION
OUR EXPERIENCE
We have a reputation
in Government as a We have successfully
skilled and successful delivered high profile,
deliverer of water high risk and complex
infrastructure projects
WE ARE A CAPABLE CLIENT OUR CORE
CAPITAL PROGRAMME
We have developed robust,
long term water supply We are planning and delivering
strategies other projects (aside from water
supply strategies) with TOC ~$1.2b
Our strategies have been
endorsed by Government to
address:
• Immediate drought challenges
• Increasing lack of water security
15 WaterNSWWaterNSW partnered with industry to deliver the
Wentworth to Broken Hill Pipeline
Construction began in January 2018 and was completed by the end of that same year
• Collaborative tender process included interactive Early
Contractor Involvement (ECI) with the market providing
innovative solutions
• No Lost Time Injuries (LTIs)
• Success was built through trust and genuine partnership
between WaterNSW and the JVs
• Delivered under budget
• Delivered ahead of time for the community
• Joint Ventures (JV) engaged to design, construct, operate and
maintain the pipeline $500m investment
270km pipeline
W2BH W2BH
JHG D&C MPC JHG O&M TRILITY
JV JV
4 pumping stations
16 WaterNSW 720 ML bulk water storage facilityWaterNSW’s $10B portfolio 17 WaterNSW $ - $0 – 250M $$ - $250-500M $$$ - $500M – 1B $$$$ - $1B+ All information provided is subject to change. Development Market Engagement / Procurement Construction
WaterNSW’s capital investment profile
If all projects were to be delivered
4
Billions
3.5
3
2.5
2
1.5
1
0.5
0
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
18 WaterNSWThree new dam projects
Wyangala Dam Wall Raising Dungowan Dam (New) Mole River Dam (New)
• Raising of the embankment and • Replacement with a new, larger dam • New~60m high rockfill dam
rockfill; 10m raising the spillway and downstream; ~55m high rockfill dam
intake towers • Improve water availability and
• Improve water availability and security security in the Border Rivers region
• Extra 650GL of storage capacity to in the Peel Valley and for Tamworth
existing volume of 1,218GL Regional Council
Short-term Market Engagement Timeframes
• Early project planning stages to commence before Christmas 2019
• Some limited advisory engagements
(delivery and procurement strategy)
• Preliminary Environmental Assessments
• Community and stakeholder engagement planning
• We will be coming to market for the main professional services
packages from late Q1 2020
• Early Contractor Involvement from at least mid 2020
• Early works packages to start as early as Q4 2020
19 WaterNSWOur Greater Sydney drought response
Prudent planning, plan ready
Current Drought Responses Contingent Drought Responses
Avon Deep Water Access Illawarra desalination plant
• Accessing an additional 2 years of supply deep in • Additional supply to support the Illawarra
Avon Dam to support the Illawarra region region in deep drought
• Early planning stages have commenced • Early planning stages have commenced
• We will be coming to market for early works,
A third Sydney desalination plant
construction and related services from Q1 2020
• Desalination to support Sydney, this is in addition
Leonay Borefield to any expanded Kurnell plant
• Early planning stages have commenced
• Groundwater supplies to supplement Warragamba
• Early planning stages have commenced If these drought conditions persist, noting the
long lead times associated with desalination,
• We may come to market for detailed planning and
drilling services in Q1 2020 we may be engaging with the D&C
Construction and O&M parties from mid 2020
20 WaterNSWEnablers to meet the
challenge
Our
Capability
WaterNSW
Portfolio
Support of Your
Government Capability
21 WaterNSWPartnering with industry
Ronan Magaharan,
Executive Manager,
AssetsWho we want to work with
Dams
Desalination
Consultants Designers Contractors Plants
Tunnelling
Project
Operators
Suppliers & Specialists Weirs
Maintainers
Major
Pipelines
23 WaterNSWPrinciples for delivery
• We want a demonstrated commitment to safety
Competitive
tendering
Safety
• All professional services will be competitively tendered
Collaboration
• Contemporary, collaborative procurement processes will
be adopted for the construction contracts
Principles
for delivery
Innovation
• We want to harness our partners’ ideas and innovation
• We want to enhance and strengthen our performance
Experience
through the experience of our industry partners
Partnerships
• We want genuine partnerships built on trust and
performance
24 WaterNSWHow we will engage with industry
Partner to run a Portfolio Management Office Broader Industry
and provide delivery management services
• We have already engaged industry for some
• We will be procuring a Portfolio Delivery of the ongoing projects (dams, desalination
Management Partner (PDMP) to assist us in plants, etc.)
setting up a leading edge Portfolio
Management Office, with people, processes • Early planning works will have commenced
and systems for the following dam projects:
– Wyangala Dam
• The PDMP will drive the portfolio to meet
time and budget requirements – Dungowan Dam
– Mole River Dam
• The PDMP will need a team of experienced
professionals to work in an integrated team • We will be procuring professional services for
environment with WaterNSW to help in the projects at various stages of planning and
development and delivery of projects development
• We will be procuring construction contracts
for the range of projects in the portfolio
25 WaterNSWPortfolio Delivery Management Partner
Portfolio Delivery Management Partner
(PDMP) expectations
• Form part of an integrated team with
‘embedded’ WaterNSW personnel
WaterNSW
• Boost WaterNSW’s capability and capacity
Critical to
• Manage the development and delivery of critical successfully
delivering the
NSW infrastructure projects portfolio within
compressed
• ‘Ramp up and down’ as required by individual timeframe and
budget
projects
PDMP
• Drive culture of high performance and best practice
• No self-performance (unless by exception)
27 WaterNSWRange of capabilities required
by the PDMP
Time
Digital Environment
Design Management Cost Estimating
Engineering Assessment and
Management (Programming and Control
Management Management
and Scheduling)
Risk and
Quality Sustainability Interface Procurement
Opportunity
Management Management Management Management
Management
Stakeholder and
Construction Operational Asset
Communications
Management Readiness Management
Management
28 WaterNSWPDMP procurement timeline
Milestone Target timeline
EOI Industry Briefing
Pre-registration for EOI 20 - 26 November 2019
Release of Invitation for EOI 29 November 2019
EOI
EOI close 20 December 2019
Announce RFT tenderer shortlist Late January 2020
RFT RFT
Release RFT Late January 2020
Tender close Mid March 2020
Contract Award
Contract Award Mid April 2020
All dates are indicative and may be subject to change
29 WaterNSWPDMP next steps
✓ Complete the EOI
Pre-Registration process Pre-Register on eTender
through eTender, open from: before 26-Nov 2019
20-Nov (5pm) to 26-Nov (2pm)
Must satisfy mandatory
✓ PDMP EOI released to successful criteria to receive
Registrants on 29-Nov 2019 Invitation for EOI
Invitation for EOI to
✓ Contact details for further
successful registrants
information on the PDMP EOI
process will be provided upon 29-Nov 2019
registration
30 WaterNSW Mandatory criteria is financially and capability basedBroader Industry Partners 31
Broader industry partners
We are seeking ongoing engagement with the broader industry – starting from today
• We encourage industry to participate at all stages of a project lifecycle as we will
be procuring:
– Business case input and writing – Construction and construction
– Concept design and development management
– Environmental planning assessment – Independent verifiers
(determination will sit with (including dam safety experts)
WaterNSW) – Others
– Stakeholder and communications
• All opportunities will be included on the WaterNSW website, on an ongoing and
regular basis – as well as on e-Tender
32 WaterNSWBroader opportunities
• We will continue to procure many of the Professional Services required to establish
projects in the portfolio
• We encourage industry to partner or to form professional relationships so that the
best of industry is represented in the down stream construction activities
• We are interested in hearing from industry in terms of a range of capabilities and
lessons learnt from overseas
• We encourage you to help WaterNSW deliver this exciting portfolio and to lift the
capability of the water industry in NSW
• We will run a further industry briefing in 2020
33 WaterNSWQuestions? WaterNSW
Where to next 35 WaterNSW
Thank You WaterNSW
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