Melbourne Water Corporate Plan. 2017/18 to 2021/2022

Transcription

1 Melbourne Water Corporate Plan 2017/18 to 2021/2022

2 Melbourne Water 990 La Trobe Street, Docklands, Vic 3008 PO Box 4342 Melbourne Victoria 3001 Telephone Facsimile melbournewater.com.au ISBN Copyright May 2017 Melbourne Water Corporation. All rights reserved. No part of the document may be reproduced, stored in a retrieval system, photocopied or otherwise dealt with without prior written permission of Melbourne Water Corporation. Disclaimer: This publication may be of assistance to you but Melbourne Water and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. All actions in this strategy will be delivered subject to funding.

3 Corporate Plan 2017 to 2022 Melbourne Water 1

4 Aboriginal Acknowledgement Melbourne Water respectfully acknowledges the Traditional Owners of the land on which we operate and pays our respect to their Elders past and present. We acknowledge Aboriginal and Torres Strait Islander peoples as Australia s first peoples and as the Traditional Owners and custodians of the land and water on which we rely. We recognise and value the ongoing contribution Melbourne s Aboriginal and Torres Strait Islander communities and their rich cultures have to the services Melbourne Water provides. We embrace the spirit of reconciliation, working towards the equality of outcomes and ensuring an equal voice. 2 Melbourne Water Corporate Plan 2017 to 2022

5 Contents Executive Summary 4 Healthy People Water Supply Sewerage Services Healthy Places Flood Management & Drainage Services Liveability A Water Sensitive City Healthy Environment Healthy Waterways Creating a Sustainable Region Community Engagement Strengthening our business Customer Focus Inspired People Continuous Improvement Financial Sustainability Corporate Plan 2017 to 2022 Melbourne Water 3

6 Executive summary Melbourne Water s vision is to Enhance Life and Liveability for the community of Melbourne. Over the next five years we will continue to invest in strengthening our business and deliver on our vision through our three core pillars of Healthy People, Healthy Places and Healthy Environment. Key objectives include: planning for the future security of water supply and Healthy People Healthy Places Healthy Environment Strengthening the wellbeing of the community Co-creating the world s most desirable places to live. Figure 1 Melbourne Water s Strategic Direction. Enhancing the natural environment Melbourne Water is owned by the Victorian Government and has provided safe, secure and affordable water services to Melbourne for over 125 years. As part of our core services, we treat and supply drinking and recycled water, remove and treat most of Melbourne s sewage, manage waterways and oversee major drainage systems in the Port Phillip and Westernport region. We are dedicated to delivering high quality services and solutions that are financially and environmentally sustainable, while contributing to Melbourne s liveability. We build strong relationships with our customers, stakeholders and suppliers in the community, government and industry. We also care for the health and wellbeing of our people. resource management alongside developing integrated water management plans to sustainably support Melbourne s population growth making our community more resilient to floods and managing the impacts of climate change and urban development through collaborative partnerships and education implementing the Healthy Waterways Strategy to protect and improve the quality of our waterways and catchments and enhance biodiversity in an increasingly urbanised region engaging and supporting Aboriginal communities in water management and economic inclusion continuing to build stronger relationships with our customers by establishing a more robust approach to relationship management and servicing their needs through the transformation of our digital platforms maintaining the organisation s financial sustainability and providing a cost effective services to customers. Managing future challenges Melbourne Water faces a number of challenges in the continued delivery of our highly valued services. To remain one of the world s most liveable cities we need to embrace the challenges of a growing city, increasing urbanisation, climate change, evolving customer expectations, and a changing economy. Melbourne Water s Corporate Plan is a five-year plan that addresses these key challenges and ensures we continue to be future focused by driving operational innovation and efficiencies. Our activities over the to planning period detail the organisation s long and short term business objectives. 4 Melbourne Water Corporate Plan 2017 to 2022

7 Sustainable Development Goals Melbourne Water is a signatory to the United Nations Global Compact, the world s largest corporate sustainability initiative, including supporting the United Nations Sustainable Development Goals. These initiatives aim to mobilise efforts worldwide to end all forms of poverty, right inequalities and tackle climate change. The Sustainable Development Goals aim to put the world on a sustainable path by 2030 and have been adopted globally by 193 countries. The vital role of water in creating and delivering sustainable communities puts Melbourne Water in a key position to contribute to this global effort. Healthy People Healthy Places Healthy Environment Strengthening the wellbeing of the community Co-creating the world s most desirable places to live. Enhancing the natural environment These goals align closely with Melbourne Water s Strategic Direction, particularly Goal 6-Clean Water and Sanitation, Goal 11-Sustainable Cities and Communities, and Goal 15- Life on Land. Figure 2 Alignment of Sustainable Development Goals to Melbourne Water s Strategic Direction. The interdependent nature of the goals means that by delivering our Strategic Direction, Melbourne Water will also contribute across all 17 goals. Creating the world s most liveable city is a collaborative effort. As such the Sustainable Development Goals will provide us, as well as our stakeholders and customers, with a common framework to deliver ongoing community wellbeing and a sustainable, well managed environment for future generations. Figure 3 United Nations Sustainable Development Goals Corporate Plan 2017 to 2022 Melbourne Water 5

8 Healthy people, Healthy places, Healthy environment 6 Melbourne Water Corporate Plan 2017 to 2022

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10 Healthy people Strengthening the wellbeing of the community Melbourne is a vibrant city of more than four million people. By 2065 the population of Melbourne and the surrounding region is expected to almost double in size, increasing the demand for water and sewerage treatment. Melbourne Water delivers on its Healthy People pillar by providing safe, affordable, world-class drinking water and sewage treatment. We also protect public health and strengthen the wellbeing of our community. A significant step forward for Victoria s grid was made when the 59km Melbourne to Geelong pipeline was switched for the first time in April 2016, allowing for the transfer of 6 gigalitres water to relive pressure on the region s water supply. Melbourne Water helped inform the Victorian Government s recent desalinated water order by providing technical and operational advice on the status of our water supply system. In the last 12 months we also completed the first of three stages of the $350 million Western Treatment Plant upgrade, which will enable it to continue to treat Melbourne s sewage to the highest standards expected by the community. The pressures of population growth and climate change will remain a challenge to our organisation. We will continue to address and manage these challenges by understanding how our city is changing physically so we can deliver appropriate water infrastructure. We are developing a broad range of strategic priorities to maximise the water available to the community. These include stormwater harvesting, reusing effluent from our treatment plants for renewable energy, using water from the Victorian Desalination Plant, increasing connectivity across the water supply system, and improving access to natural spaces and recreational facilities. 8 Melbourne Water Corporate Plan 2017 to 2022

11 Water Supply As Melbourne grows, the community will continue to receive safe, secure, affordable, world-class drinking water. 157,000 ha 10 STORAGE 432 GL RESERVOIRS PROTECTED CATCHMENTS IN THE YARRA RANGES PLANTS TOTAL CAPACIT Y 1812 BILLION LITRES H I G H Q U A L I T Y D R I N K I N G W AT E R D E L I V E R E D T O C U S T O M E R S A N D T H E C O M MUN I T Y 14 W A T E R 38 SERVICE 221 TREATMENT RESERVOIRS KM AQUEDUCTS 1051 KM WATER MAINS Safe and secure water supply services are fundamental to life and liveabilty in Melbourne and the surrounding region. Melbourne Water manages the sources and wholesale supply of high-quality drinking water for metropolitan Melbourne. Most of the city s drinking water comes from protected water catchments in the Yarra Ranges, forested areas located in national parks, and state forests. Water quality Melbourne is known to have some of the highest quality drinking water in the world. Managing water quality to protect public health remains a high priority for Melbourne Water. Melbourne is one of the few cities in the world with protected water catchments located in forested areas in the Yarra Ranges. These native forests filter rainwater as it flows across land into creeks, rivers and reservoirs, requiring very little treatment. About 20 per cent of Melbourne s water comes from open catchments that contain mixed land uses such as farming and recreational activities. Water from open catchments is treated through a sophisticated filtration process. We operate two large filtration plants that treat water from open catchments - Winneke Water Treatment Plant and Tarago Water Treatment Plant. We use advanced monitoring, filtering and treatment processes to ensure Melbourne s drinking water consistently meets the Australian Drinking Water Guidelines. Over the to planning period, Melbourne Water will continue to monitor, assess and manage drinking water quality. Key projects include $20 million of water quality mechanical and electrical assets upgrades and a new $40 million ultraviolet disinfection system at the Winneke Treatment Plant. Supply Network Melbourne has 10 major storage reservoirs. Water from these reservoirs is distributed across the Melbourne region via large pipes called distribution mains to smaller service reservoirs. These 38 service reservoirs, situated throughout metropolitan Corporate Plan 2017 to 2022 Melbourne Water 9

12 Melbourne, provide short-term storage of one to two days to ensure a constant water supply during peak demand periods. Thousands of mostly underground pipes then carry this water in a web-like network to metropolitan retail water businesses, which supply water to homes, school and businesses. Supplying our customers Melbourne Water supplied 432 gigalitres¹ of high quality drinking water to our retail customers. Water supply forecast over the to planning period² Forecast Water Demand 2017/ /22 Western Water Yarra Valley Water South East Water City West Water Volume (GL) 1. Based on retail water consumption 36.9% Yarra Valley Water 160 GL 2. Based on ESC final decision on Melbourne Water s 2016 Price Submission 35.7% South East Water 154 GL 25.8% City West Water 112 GL 1.3% Western Water 5.6 GL 0.2% Gippsland Water 0.9 GL 0.1% Barwon Water 0.3 GL Over the to planning period we will continue to focus on upgrading and maintaining our supply network to meet the expectations of Melbourne s growing population. Key projects include: $47 million to renew water supply aqueducts, improve water quality and increase their service life to 150 years $39 million to increase capacity at Winneke Treatment Plant and $33 million to upgrade the M41 Water Main Alignment from Merri Creek in Northcote to Wellington Parade in East Melbourne. Mini hydro-electricity plants Mini hydro-electricity plants operate throughout Melbourne s water supply network. These plants generate renewable energy from the flow and pressure of moving water and feed it back into the electricity grid. As part of our commitment to renewable energy initiatives, a further five new plants were commissioned and added in to the existing nine mini hydro-electricity plants for reservoirs in Wantirna, Boronia, Dandenong, Mount Waverley and Cardinia Creek. All 14 mini hydro-electricity plants will generate up to 69,600 megawatt hours of electricity per year and offset over 75,800 tonnes of carbon dioxide emissions annually, which is equivalent to taking more than 29,200 cars off the road. We will continue to explore opportunities to add more hydroelectric power stations to our operation. For more detail please refer to Strategic Priority: Carbon Emission Pledge in the Healthy Environment chapter. Victorian Desalination Plant Desalination complements Melbourne s catchments and reservoirs by providing a secure, rainfall-independent source of 10 Melbourne Water Corporate Plan 2017 to 2022

13 water for Melbourne. The Victorian Desalination Plant (VDP) is capable of supplying up to 150 gigalitres of high quality drinking water each year, significantly increasing the security of Melbourne s water supply during periods of low rainfall and mitigating the long-term impacts of climate change. The Minister for Water has announced a minimum order of 15 gigalitres per year from the VDP for the next three years. Additional water orders will be determined annually over the to planning period. Water supply pipelines and aqueducts Retail water area boundary Water supply catchment area Water supply storage reservoir 2 Water supply storage reservoirs: Western Water (Sunbury) Greenvale Yan Yean Sugarloaf Maroondah O Shannassy Upper Yarra Thomson Tarago Silvan Cardinia Barwon Water Western Water (Melton) City West Water Port Phillip Bay Yarra Valley Water 9 10 Western Port South East Water 8 Southern Rural Water (Macalister Irrigation District) Gippsland Water (Neerim South) Gippsland Water (Warragul) 7 Bass Strait from Victorian Desalination Plant Figure 4 Melbourne s water supply map to $4,705M FORECAST REVENUE FOR WATER SUPPLY SERVICE $448M PLANNED CAPITAL EXPENDITURE FOR WATER SUPPLY PROJECTS 17.8% OF MELBOURNE WATER CAPITAL EXPENDITURE $1,055M DIRECT OPERATING EXPENDITURE 21.34% OF MELBOURNE WATER S TOTAL EXPENDITURE Corporate Plan 2017 to 2022 Melbourne Water 11

14 Capital program Total planned capital expenditure on water supply projects over the to planning period is $448 million, which accounts for 17.8 per cent of Melbourne Water s total capital expenditure. The water supply capital program is mostly driven by renewals of water transfer pipelines, mechanical and electrical assets as well as some growth and compliance projects. From to the capital delivery program will focus on maintaining and renewing pipelines such as the M40 and M41 mains to ensure safe and secure water supply to Melbourne s inner north and eastern suburbs, followed by an increase in capital expenditure in for major aqueduct renewals, and capacity upgrades at Winneke Treatment Plant. This capital expenditure is shown in Figure 5 and key significant projects are detailed in Appendix C. 5 Year Corporate Plan by Product Corporate Plan $448M Nominal $'M / / / / / /22 Figure 5 - Water capital projects for the to planning period. Revenue and expenditure Forecast water supply services revenue for the to planning period is $4,705 million while total direct operational expenditure is forecast at $1,055 million, which accounts for per cent of Melbourne Water s total operating expenditure. Figure 6A and 6B show the breakdown of capital and operational expenditure for water supply. Labour $115.5M External Services $138.7M Compliance $ 71.4M Growth $41.9M Renewals $273M Strategic/Risk Mgt $61.9M Materials $32.6M Information Technology $0.9M Energy $41.5M Fees and Charges $9.4M Transport $1.5M Other $4.9M Land Tax $49.6M Victorian Desalination Plant $660.1M Figure 6A and 6B - Breakdown of capital and direct operational expenditure for water supply. 12 Melbourne Water Corporate Plan 2017 to 2022

15 Strategic Priority: Melbourne Water s Drinking Water Quality Strategy Melbourne Water s Drinking Water Quality Strategy (DWQS) is a 20 year strategy that outlines how we will continuously deliver safe drinking water. The strategy is currently being finalised and an implementation plan will be introduced from mid Key focus areas include: establishing strategic objectives, levels of service and guiding outcomes guiding policy, planning, capital investment, operational improvements and research aligning business activities for improved drinking water quality outcomes. The DWQS implementation plan will ensure Melbourne Water delivers on its commitments under the Healthy People pillar in the Strategic Direction and the Public Health Policy by ensuring we have continuity of supply and effective source management. We will also leverage our approach to innovation and our leadership position in the community and industry. Strategic Priority: Melbourne Water System Strategy As a growing city with a changing climate, Melbourne faces a number of key challenges to secure water resources for the city and surrounds. The Melbourne Water System Strategy outlines a portfolio approach to meeting these challenges, including making the most of the water supply system, using water efficiently, and harvesting diverse sources of water such as rainwater, stormwater and recycled water supported by the water grid and the water market. The strategy identifies a series of key directions and opportunities for Melbourne Water over the next 50 years and is structured around two key groups of challenges, followed by four portfolio elements to address these challenges as shown in Figure 7. Our growing and changing region Making the most of the water supply system Using water efficiently Using diverse sources of water Our changing and variable climate Optimising the water grid and market Figure 7 How the Melbourne Water System Strategy will address Melbourne s future water resource management needs. The Melbourne Water System Strategy also outlines Melbourne Water s contribution to relevant policy directions set by Water for Victoria, the Victorian Government s water plan. It includes more than 35 actions to help manage the water resource challenges Melbourne faces over the next 50 years. Although some of these actions will be delivered solely by Melbourne Water, the majority will be delivered in partnership with our customers and stakeholders. Corporate Plan 2017 to 2022 Melbourne Water 13

16 Strategic Priority: Melbourne Water System Strategy (cont) The strategy s key focus areas and actions for managing Melbourne s water resources efficiently, securely and affordably are listed below. Key Focus Area Key Action Items Growing and changing region Explore opportunities to use our land to reduce the urban heat island effect, improve demand forecasts and link core services across the water cycle. Changing and variable climate Invest in climate research and operationalise outcomes, become a net-zero greenhouse gas business and define climate risks on the environmental values of waterways and wetlands. Making the most of the water supply system Update annual operational planning to meet customer needs, improve transparency and address climate change. Review the desalinated water order advice development process, identify potential improvements to the way we deliver environmental water and drive integration between water supply system models used by Melbourne Water and our retail water corporation customers. Using water efficiently Support the retail water corporations to deliver the Target 155 program, collaborate to deliver research on water efficiency into the future and periodically review storage levels and outlook zones. When necessary, implement the Drought Preparedness Plans for Melbourne. Using diverse sources of water Collaborate through integrated water management forums and plans to deliver up to 80 gigalitres/year from diverse sources by Investigate use of diverse water sources to deliver environmental water and enhance capabilities to model diverse sources of water. Optimising the water grid market Support the development of a water grid oversight function. Identify and evaluate potential long-term options that could add capacity to the water grid and develop a water resources information management plan. 14 Melbourne Water Corporate Plan 2017 to 2022

17 Sewerage Services We will continue to safely treat our sewage to protect public health and enhance environmental outcomes. 400 KM OF SEWERS 9STATIONS 12 SEWAGE PUMPING AIR TREATMENT FACILITIES 60% WESTERN T R E AT M E N T P L A N T W E RRI B E E SEWAGE TREATMENT 40% EASTERN T R E AT M E N T P L A N T BANGHOLME Fast, efficient and safe removal of sewage from our houses and businesses is fundamental to a modern city. Sewage is no longer simply a waste product. In the face of climate change and thanks to new technology, Melbourne Water is turning sewage into valuable resources such as recycled water and biogas (renewable energy). Sewage treatment Melbourne Water s sewage treatment system consists of two main treatment plants the Western Treatment Plant in Werribee and the Eastern Treatment Plant in Bangholme. Western Treatment Plant Located in Werribee, the 10,500 hectare Western Treatment Plant (WTP) is the world leader in technical and environmental innovation. It treats approximately 60 per cent of Melbourne s sewage and produces almost 40 gigalitres of recycle water a year. It features a system of lagoons that gradually break down organic matter in water using bacteria. It s an approach to treatment that is very low in energy consumption and, when combined with onsite methane power generation and the use of recycled water for irrigation, makes WTP one of the lowest cost treatment plants in the world. WTP is nearly energy self-sufficient, producing about 70 per cent of its own electricity needs. It generates 48,500 megawatt hours of renewable electricity every year, which prevents the emissions of 52,800 tonnes of carbon dioxide. Over the to planning period, a three stage investment program will continue at WTP. The $107 million Stage 2 capacity upgrade commenced in 2017 and includes the installation of a nitrogen removal plant. This new plant is a technical and environmental innovation for WTP as it is designed to be more energy efficient and incorporates advanced monitoring and control treatment process. Other major WTP investment programs include renewal of the activated sludge plant and drying pans. Corporate Plan 2017 to 2022 Melbourne Water 15

18 Eastern Treatment Plant The Eastern Treatment Plant (ETP) is situated on a 1,100 hectare site and treats approximately 40 per cent of Melbourne s sewage from the south-eastern and eastern suburbs. ETP is known for adopting leading technology which includes an active mechanical and chemical approach to treat sewage. water produced at ETP and reduced the impact on the local marine environment at Boags Rocks, where treated water is discharged to the ocean. ETP also uses biogas to power 26 per cent of its electricity needs. The plant s seven generators can run solely on biogas or can be supplemented by natural gas as needed. ETP generates 35,600 megawatt hours of renewable electricity, which prevents the emissions of 38,800 tonnes of carbon dioxide. After completing its major upgrade in 2012, ETP is now Melbourne Water s most complex and diverse treatment plants. These works have improved the quality of recycled Over the to planning period, the investment program will focus on the renewal of mechanical and electrical components. Sewage transfer In addition to our two treatment plants, Melbourne Water also manages and operates 400 kilometres of large diameter pipes that convey sewage from our retail water corporation customers to these treatment plants. Over the to planning period we will continue to make significant investments to reduce sewerage system overflows and leakage from treatment processes. Key project include $35 million in rehabilitation works for the Hobson Bay and Yarra Crossing sewerage main pipeline. Melbourne Water s sewerage network and treatment plants are shown in Figure 8. Sewerage transfer pipeline Sewerage system outlet Retail Water area boundary Sewerage treatment plant Sewerage pump station: 1 Hoppers Crossing 2 Brooklyn 3 Kew 4 North Road 5 Mordialloc No. 2 6 Mordialloc No. 1 7 Mordialloc Wet Weather 8 Bondi Road 9 Eastern Treatment Plant City West Water Western Trunk 1 Melbourne Main Sewer North West Sewer 2 Western Treatment Plant Northern Diversion Hobson Bay Main Port Phillip Bay Sewer North Yarra East Main Yarra Main 4 3 South Eastern Trunk South Eastern Outfall 9 Yarra Valley Water Dandenong Valley Trunk Eastern Treatment Plant Western Port South East Water Bass Strait Figure 8 Melbourne Water s sewerage network. 16 Melbourne Water Corporate Plan 2017 to 2022

19 to $2,316M FORECAST REVENUE FOR SEWERAGE SERVICE $927M CAPITAL FOR SEWERAGE PROJECTS 37% OF MELBOURNE WATER S TOTAL CAPITAL EXPENDITURE $570M DIRECT OPERATING EXPENDITURE 11.5% OF MELBOURNE WATER S TOTAL EXPENDITURE Capital program Total planned capital expenditure on sewerage projects over the to planning period is $927 million, which accounts for 37 per cent of Melbourne Water s total capital expenditure. The sewerage capital program is mostly driven by renewals and growth projects. Over to the capital program will focus on WTP capacity upgrades while in the focus will be on the WTP activated sludge plant upgrade. Capital projects for the to planning period are shown in Figure 9 and key significant projects are detailed in Appendix C. 5 Year Corporate Plan by Product Corporate Plan $927M Nominal $'M / / / / / /22 Figure 9 - Key sewerage capital projects for the to planning period. Corporate Plan 2017 to 2022 Melbourne Water 17

20 Revenue and expenditure Forecast sewerage revenue for to planning period is $2,316 million while operational expenditure is $570 million. This accounts for 11.5 per cent of Melbourne Water s total operating expenditure. Figures 10A and 10B show the breakdown of capital and direct operational expenditure for sewerage. Labour $104.1M External Services $228.4M Compliance $157.7M Growth $229.2M Renewals $435.9M Strategic/Risk Mgt $104.3M Materials $12M Information Technology $0.8M Energy $167M Fees and Charges $17.5M Transport $2.2M Other $1.7M Land Tax $35.8M Figures 10A and 10B - Breakdown of capital and direct operational expenditure for sewerage. Strategic Priority: Melbourne Sewerage Strategy As well as focusing on long-term water resource management, Melbourne Water will continue to protect public health and enhance environmental outcomes by treating sewage safely. Stemming from the release of the Victorian Government s water plan, Water for Victoria, Melbourne Water will develop a long-term sewerage strategy by September 2018 to address climate change and population growth and reflect the Statement of Obligations. Environment, Land, Water and Planning (DELWP). The adaptive planning approach will be used to help develop a robust strategy that addresses a range of strategic issues including waste management, fit-for-purpose water and a healthy environment. The Melbourne Sewerage Strategy is due to be completed by September The main focus of the strategy will be to review Melbourne s overall sewerage system including transfer and treatment as well as its adaptability to the sewage requirements of a rapidly growing city. The strategy will also look at how to support the broader community in a sustainable, fair and cost effective way. Work on the Melbourne Sewerage Strategy commenced in January 2017 with a series of workshops with key stakeholders including metropolitan retail water corporations, Western Water, Environment Protection Authority Victoria (EPAV) and the Department of 18 Melbourne Water Corporate Plan 2017 to 2022

21 Strategic Priority: Western Treatment Plant Future Land Use Plan The Western Treatment Plant treats about half of Melbourne s sewage, providing an essential public health service. It is a world leader in environmentally sensitive sewage treatment, an internationally recognised haven for wildlife, an environmentally sustainable farm and a well-loved site visited by thousands of people each year. The Western Treatment Plant (WTP) Future Land Use Plan is a plan that Melbourne Water has developed to maximise the long-term economic, social and environmental values of the Western Treatment Plant for the benefit of the community. The plan also embraces the opportunity to add further value by drawing on waste streams to recover resources, enhancing renewable energy, building on the existing agricultural business and providing more opportunities for ecotourism and recreation. An environmentally sustainable farm that supports sewage treatment and the biodiversity conservation values An internationally recognised haven for wildlife and unique endangered species A world leader in environmentally friendly sewage treatment A well loved site visited by thousands of people each year Corporate Plan 2017 to 2022 Melbourne Water 19

22 Strategic Priority: Western Treatment Plant Future Land Use Plan (cont.) Leading the way forward Over the to planning period, Melbourne Water will continue to develop the site and pursue innovative technologies that provide financial, social and environmental benefits. Collaboration with others is essential and Melbourne Water will explore partnerships and business models to develop future projects. Western Grasslands Reserve Federation trail Werribee To Melbourne Werribee Zoo Outer metropolitan ring transport corridor Recycled water plant expansion Werribee Irrigation District Northern Grasslands PRINCES FREEWAY Cocoroc Werribee River Park Increased treatment area to cater for future growth, renewable energy and resource recovery Green corridor may include cycle/ walking paths Ryan's Swamp Wyndham Harbour To Geelong Main treatment precinct including main lagoons, power generation and biosolids Boat ramp Port Phillip Bay Kirk Point Public access to core precinct for ecotourism, recreation and biodiversity conservation facilities. Avalon airport The Spit Significant coastal saltmarsh grows along the foreshore from the Beach Rd boat ramp to The Spit 20 Melbourne Water Corporate Plan 2017 to 2022

23 Healthy places Co-creating the world s most desirable places to live At Melbourne Water we consider that liveability reflects the wellbeing of a community and the many characteristics that make a city a place where people want to live, now and in the future. Melbourne Water is a custodian of over 33,000 hectares of land in the Port Phillip and Westernport region and we support our Healthy Places pillar by managing the impacts of climate change, protecting the region from floods and facilitating enhanced public access to nature and green spaces. We enhance Melbourne s reputation as the world s most liveability city by opening up our land for community use, where it is safe to do so. A recent example of this work is the role we played in establishing the Greening the Pipeline (GTP) project. GTP was initiated in to revitalise industrial land in Melbourne s West into recreational open space and in April 2017 we successfully launched the first pilot community parkland for GTP in Williams Landing. We will continue to reimagine the remaining sections of the project to transform the GTP into a natural, vibrant public asset for Melbourne s west. Climate change is expected to increase flood risks due to more frequent intense rainstorms and rising sea levels. It is estimated that approximately 232,000 properties in our region have a 1 per cent chance of flooding in any given year. The annual average damage caused by floods in our region is approximately $400 million and the consequences of floods are serious for communities living in affected areas. In we implemented the flood mapping program which is designed to better understand and reduce the effects of floods. Through this program flood mapping tools have identified the risk of flooding across the region and increased our knowledge of Melbourne s drainage network. Over the planning period, we will continue to focus our efforts in areas of greatest risk by investing in new drainage infrastructure. The Flood Management Strategy will focus on building collaboration between organisations that contribute to flood management and help engage the community to build resilience and awareness. Corporate Plan 2017 to 2022 Melbourne Water 21

24 Flood management and drainage services We will continue to make our region resilient to floods and manage the impacts of climate change and urban development. Flooding in our region The Port Phillip and Westernport region The region includes almost all of the Port Phillip and Westernport catchments, and is home to over four million people. Sunbury Healesville Legend: Melbourne Stormwater flooding Riverine flooding Coastal flooding Established urban areas Growth corridors Werribee Dandenong Port Phillip Bay Geelong Bass Strait Figure 11 - Flooding in the Port Phillip and Westernport region Melbourne Water is the floodplain manager for the Port Phillip and Westernport region and we have the responsibility of identifying and reducing flood risk to Melbourne Water and the VICSES protect the community. Melbourne Water s 10 year partnership with the VICSES We work collaboratively with 38 Melbourne metropolitan campaigns to increase flood awareness, preparedness councils and the Victorian State Emergency Services (VICSES) on flood management plans and provide flood advice on new developments and lead projects to address existing and future flood risks across Melbourne. Through our Flood Management Strategy - Port Phillip and Westernport, we will continue to build our collective knowledge and capability, drawing on a wide range of flood management approaches to better address community concerns, minimise the effects of floods and manage the challenges of urban growth and climate change. Refer to Strategic Priority: Flood Management Strategy for more information. 22 Melbourne Water Corporate Plan 2017 to 2022 focuses on developing key information and educational and support community resilience. Targeted flood education and awareness will continue over the to planning period with regular assessment of the program effectiveness and community support.

25 We help reduce the risk of floods by: maintaining 1618 kilometres of stormwater drains managing and upgrading 230 retarding basin developing flood mapping and modelling building new flood protection assets managing waterways to help reduce the impacts of flooding raising awareness of flood risks and responses through education programs providing data for warning systems assessing and placing conditions on town planning permits. Rising sea levels Rising sea levels are likely to have an impact on flooding in the Port Phillip and Westernport region. Melbourne Water is working with the Victorian Government and local councils to address rising sea levels through initiatives and research projects such as: sea level rise assessments of developed areas along coastlines the Australian Rainfall and Runoff Review flood modelling around climate change scenarios a business-wide Climate Change Adaptation Strategy. Council drainage networks MWC drainage network Council boundaries MWC Drainage and Waterway boundaries Figure 12 - Melbourne Water and council drainage networks Capital program Over the to planning period Melbourne Water will continue to minimise the damage caused by floods to our community through our capital and development planning. Total planned capital expenditure on flood and drainage program is $270 million, which accounts for 10.7 per cent of Melbourne Water s total capital expenditure. Capital projects for the to planning period are shown in Figure 13 and key significant projects are detailed in Appendix C. Corporate Plan 2017 to 2022 Melbourne Water 23

26 Figure 13 Figure 14 5 Year Corporate Plan by Product Corporate Plan $270M 50.0 Nominal $'M Compliance $210.2M Growth $0M 10.0 Renewals $47.8M / / / / / /22 Strategic/Risk Mgt $12.3M Figure 13 - Key flood capital programs/projects for the to planning period. Figure 14 - Breakdown for capital expenditure for flood & drainage. Key flood management and drainage projects: New flood management strategy Our new Flood Management Strategy Port Phillip and Westernport builds on decades of flood management experience and is aligned with the Victorian Floodplain Management Strategy. It focuses on building greater collaboration between organisations involved in flood management and is intended to guide future investment to improve how we manage and reduce flood risks. Additional investment in drainage infrastructure Melbourne Water will invest $270 million over the to planning period on drainage infrastructure to reduce the impacts of flooding on local communities. Key investment includes: Murrumbeena flood mitigation ($38.1 million) Retarding basin spillway upgrades ($28.5 million). 24 Melbourne Water Corporate Plan 2017 to 2022

27 New decision-making system to improve flood management A new Flood Integrated Decision Support System was recently launched to improve decision making around flood management. A further $15 million will be invested on flood mapping tools. This will help Melbourne Water provide early and timely information to the community, emergency services and other stakeholders. Strategic Priority: Flood Management Strategy Flood risks have been actively managed in Port Phillip and Westernport for many years. Melbourne Water s Flood Management Strategy Port Phillip and Westernport sets out how we will continue to work with other agencies and the community to understand, avoid and better manage flood risks. It also outlines how we can support flood emergency preparation and response, across the Port Phillip and Westernport region. The flood strategy vision for Port Phillip and Westernport Together we are aware, responsive and resilient. Communities, business and government understand flooding, plan for challenges, and take action to manage risks. Strategic objectives 1. The right information is available at the right time to people who need it. 2. Flood risks are addressed to reduce impacts and get the best social, economic and environmental outcomes. 3. Land, water and emergency agencies work together to manage flooding effectively. In recent years urban planning and development standards have been improved to ensure new developments are safe from floods and avoid increasing the level of flood waters on nearby properties. Flood mapping has also been completed for much of the Port Phillip and Westernport region to understand where and how often floods may occur, particularly in locations where older urban areas were established without consideration of possible flood risks. In areas of new urban development, flood mapping information is now used to ensure safe development. It is also used to support flood education, warning systems, emergency management programs and infrastructure improvements. Flood risks are managed by working in areas where the need is greatest and where the benefits of taking action are most cost effective. Through the Flood Management Strategy Port Phillip and Westernport, Melbourne Water will use the knowledge and experience we have developed over many years to improve how we work and respond to the future challenges of climate change and a growing population. The strategy includes 65 actions to help prioritise and manage current and future flood risks, using the knowledge and expertise of all organisations that contribute to managing flood risk. Figure 15 outlines how we will identify and prioritise flood prone areas and implement the right mix of solutions. Corporate Plan 2017 to 2022 Melbourne Water 25

28 Strategic Priority: Flood Management Strategy The flood management decision making framework More information and data will be used to inform the process (e.g. local floods, community needs, costs and benefits and climate change) Prioritise and complete mapping Assess flood effects and risks Prioritise locations Develop options Identify best-fit solution Implementation Community and government input helps inform each step This diagram shows the decision making framework outlined in the strategy, and how improved information will be used in our processes. Figure 15 - Flood management decision-making framework. Liveability We will facilitate community access to quality open space. benefit of the community. We will also undertake a review of both of our capital programs to include recreational assessments on projects to increase community access wherever possible. Performance targets will be set to measure the community satisfaction that results from natural and recreational assets situated on Melbourne Water land. There is strong evidence of a positive relationship between providing access to safe, green open space and the physical health and wellbeing of our communities. As Melbourne grows it is becoming more important to provide opportunities for exercise such as cycling and walking, community interactions and access to open outdoor areas. Recreation occurs on our land in many different forms, from the reservoir parks (managed by Parks Victoria), formal shared pathways with management agreements, football ovals located in retarding basins, BBQ facilities, picnic tables or other recreational infrastructure constructed on our land as well as informal walking trails. Melbourne Water will continue to work collaboratively with community groups, not-for-profits, and both local and State government to innovatively use our land and assets for the 26 Melbourne Water Corporate Plan 2017 to 2022

29 Case Study: Our Space, Your Place Our Space, Your Place is a map-based online application that identifies potential public access to 303,000 hectares of land managed by Melbourne Water. The app explains details of the availability, size and potential use of our land and outlines a process for use, with a focus on projects that benefit the community. The app was tested with customers to ensure it is intuitive and aligned to our Digital Vision of being Safer, Smarter, Faster and Easier to work with. Examples of successful projects include: Use/Activities Community garden run by Hope City Mission. The community garden aims to help people who struggle to afford healthy food. Status of Application Lease approved. Community garden for youth with disabilities License currently being drafted by Melbourne Water. Solar powered farm Melbourne Water is currently working with the group Energy Democracy on finalising lease agreement. Bee Hive education Lease approved by Melbourne Water. License will be finalised by Community garden along the Yarra river for Indigenous revegetation education project Melbourne Water is currently working with the group Yarra Links on finalising a lease agreement. Corporate Plan 2017 to 2022 Melbourne Water 27

30 Strategic Priority: Greening the Pipeline Project The Greening the Pipeline (GTP) project aims to convert 27 kilometres of the heritage-listed decommissioned Main Outfall Sewer into parkland. Over the next few years the old sewer pipe will be transformed into a vibrant green corridor that links up communities throughout Melbourne s west and improve liveability. The project is a partnership between Melbourne Water, Wyndham City Council, VicRoads and City West Water. It is being managed by a dedicated project coordinator employed by Wyndham City Council, and co-funded by Melbourne Water and City West Water. The vision is to create a green public asset that connects communities and provides places for people to meet, play and relax. Highlights to date include: extensive community and stakeholder consultation Williams Landing pilot parkland opened April 2017 Greening the Pipeline video Figure 16 - Greening the Pipeline website. 28 Melbourne Water Corporate Plan 2017 to 2022

31 Local residents and businesses ideas for the future of the pipeline (121 ideas, 46 supports) 7.9% 7.9% 4.2% 1.8% 1.8% 2.4% 2.4% 3.6% 10.9% 1.8% 13.3% 27.9% 13.9% Active transport infrastructure (27.9%) Facilities for exercising (13.9%) Vegetation (13.3%) Other (10.9%) Other (Better lighting 7.9%) Community garden (7.9%) BBQ and picnic areas (4.2%) Facilities for community events (3.6%) Facilities for children (2.4%) Public art (2.4%) Dog park (1.8%) Ponds (1.8%) Skate park (1.8%) Figure 17 - Local ideas for the Greening the Pipeline Project. Greening the Pipeline five-year priorities Technical Develop, specific design guidelines and zone master planning for the pipeline. Funding Continue to seek funding for the project including exploring alternative funding opportunities (i.e. private funding). Consultation Undertake ongoing consultation with stakeholders such as local residents, Aboriginal groups and developers, and build on relationships with project partners. Continue to work with key Victorian Government agencies on projects that could potentially impact the pipeline such as: VicRoads as they develop the Outer Suburban Arterial Road Project Victorian Planning Authority as they develop the East Werribee Employment Precinct. Communications and education Continue to promote the project, and share lessons learned with industry. Research Collaborate with CRC for Water Sensitive Cities who want to use the Greening the Pipeline Project as a case study. Corporate Plan 2017 to 2022 Melbourne Water 29

32 A Water Sensitive City Melbourne Water takes an integrated approach to water management that brings together all facets of the water cycle such as water supply, sewerage management, treatment and stormwater to deliver sustainable benefits for the wider community. Diversifying our water services helps strengthen the reliability of water supply through efficient resource use and recovery. Using alternative water sources to meet demand also makes better use of all the water available to us and saves drinking water for specific purposes where high quality water is needed. Melbourne Water invests in developing alternative sources of water, primarily through stormwater harvesting and recycling treated water from sewerage networks. We use an integrated water management approach that supports: collaboration with customers and stakeholders to promote new and diverse water resources integrated water and urban development planning finding ways to obtain multiple benefits from our natural and built assets managing the water supply system to meet urban, environmental and agricultural needs undertaking long-term planning to address the needs of a growing population, climate change and variability. Taking a holistic, integrated approach to Melbourne s water cycle helps in the following ways: socially: provides for public health and safety benefits, open spaces and sports fields, reduces the urban heat-island effect and improves the resilience of the water supply system to climate change environmentally: increases the amount of water available for environmental flows and reduces impacts to the environment from such things as pollution, stormwater and treated wastewater. The Cooperative Research Centre for Water Sensitive Cities has established a Water Sensitive Cities (WSC) Index that is designed to provide a global benchmark against water sensitive performances and practices. As a result, Melbourne s WSC index score is 2.5 out 5. To help improve the WSC Index and co-create the world s most liveable places, Melbourne Water has set a strategic key performance indicator to measure our performance. We are also partnering to deliver innovative solutions in urban water management such as stormwater capture and urban cooling. For more detail refer to Appendix B. Stormwater management Stormwater is rainwater that has fallen onto surfaces such as roads or roofs and runs off into the drainage network. Stormwater harvesting is the collection, accumulation or treatment of stormwater for reuse. Stormwater can be collected and used for many purposes including watering sports grounds, parks and gardens, and replenishing wetland habitats. Water Sensitive Urban Design (WSUD) is an approach to planning and designing urban areas that makes use of this valuable resource and reduces the harm it causes to rivers and creeks. Melbourne Water is responsible for the licensing of surface water from some catchments and its own works, which includes stormwater licensing to help deliver integrated water management. economically: provides affordable services and seeks opportunities for growth, especially in industry and agriculture Case Study: Stormwater Management - Black Forest Road, Werribee The population of Melbourne is projected to increase from 4.6 million people in 2016 to 6 million people in 2031 and upwards of 8 million people in Around 50 per cent of Melbourne s population growth is expected to occur in Melbourne s western suburbs with a projected new 712,000 residents by 2031 alone. With new development comes more stormwater. 30 Melbourne Water Corporate Plan 2017 to 2022

33 Case Study: Stormwater Management - Black Forest Road, Werribee (cont.) Water availability is important for the liveability of cities and towns. In addition to meeting our basic drinking water needs and providing confidence to industry, water is essential for cool, green urban areas. Using diverse water sources will lessen pressure on drinking water supplies, increase urban water security and help keep our cities and towns liveable through drought. Urban development proposed for the Black Forest Road area within the Lollypop Creek catchment is 894 hectares (total developed area including existing urban area will be 1,216 hectares). The area contains three Precinct Structure Plans. The key water cycle issue is the effective management of excess stormwater as urban growth proceeds. Melbourne Water is working with developers, the local council and the retail water company to develop a stormwater management plan that protects internationally significant habitat from damage by stormwater and makes use of the alternative water for non-drinking uses such as toilet flushing or irrigation of both private and public open space. Stormwater flows will be managed through an integrated system that generally maintains flows beyond the precinct to pre-development levels. The precinct will require a range of constructed open waterways linked to a network of wetland/retarding basins. These areas could become important and functional parts of the precinct s open space network, particularly adjacent to the local town centre. Investigations will take place during , with construction likely to commence in late Recycled water Both of Melbourne s sewage treatment plants produce Class A and Class C recycled water for use on site and to supply a range of offsite customers. The Western Treatment Plant was the first plant in Victoria to produce the highest recycled class recycled water which is Class A. Class C is treated to a lower standard and has a greater restriction on its uses. Recycled water is typically supplied to offsite customers for: A large percentage of recycled water is used on site at both water treatment plants: Eastern Treatment Plant supplies approximately 17,132 million litres of recycled water to customers and uses around 9509 million litres on site. Western Treatment Plant supplies approximately 25,753 million litres of recycled water to customers and uses around 19,560 million litres on site. irrigating pastures and public open spaces intensive agriculture and horticulture toilet flushing and garden watering at residential estates industrial processes and wash down facilities. Examples of recycled water use Werribee Tourist Precinct Werribee Employment Precinct We provide recycled water to this precinct for a range of landscaping and non-potable purposes. Key customers include Werribee Park Golf Club, Werribee Open Range Zoo and Werribee Park and Mansion. We have supplied recycled water to Werribee Employment Precinct since June A 900-hectare site, the precinct is home to a number of high profile research and learning institutions. Corporate Plan 2017 to 2022 Melbourne Water 31

34 Eastern Irrigation Scheme Residential dual pipe supply More than 80 customers access recycled water through this scheme via recycled water supplier, TopAq, for horticulture, open space irrigation and industrial processes. Several housing estates around Cranbourne use a dual pipe system to access recycled water for watering gardens, flushing toilets and watering streetscapes and open spaces to $18M FORECAST REVENUE FOR RECYCLED WATER SERVICES Capital program Forecast recycled water revenue for the to planning period is $18 million while operational expenditure is forecast at $17.5 million. This accounts for 0.4 per cent of Melbourne Water s total expenditure. Total planned capital expenditure for recycled water services for the period is $5.9 million, with no significant capital works programs planned. Labour $5.1M External Services $10.9M Materials $1.1M Revenue and expenditure Figure 18 shows the breakdown of direct operational expenditure for recycled water. Figure 18 Breakdown of direct operational expenditure for recycled water. Strategic Priority: Arden Macaulay Redevelopment Arden Macaulay is a city-shaping project on the northern edge of Melbourne s CBD that will transform the area into one of the best examples of urban regeneration in the world. By 2051, it is projected that Arden Macaulay will be home to 27,000 residents, supporting nearly 45,000 jobs and featuring a wide variety of well-designed open spaces. Melbourne Water is working closely with the Victorian Planning Authority and the City of Melbourne to develop and implement a water sensitive strategy for the precinct, which includes flood mitigation. 32 Melbourne Water Corporate Plan 2017 to 2022

35 Strategic Priority: Arden Macaulay Redevelopment (cont.) Minimising the impacts of flooding Flooding is a significant issue that must be resolved if the Victorian Government is to realise its vision for the precinct. Around 330 properties across 45 hectares are currently exposed to serious flooding where the flood depth is greater than 500mm for longer than two hours. This is predicted to worsen with climate change and further impact upstream infill development. Melbourne Water, in partnership with the Victorian Planning Authority, the City of Melbourne and other members of the Arden Macaulay Inter-Departmental Committee, has developed a Flood Mitigation Strategy as the first element of a water sensitive strategy for the precinct. The five key elements of this strategy are: 1. Significant catchment flood flow storage 2. Arden Central works (levees and pipes) 3. Regional drainage works (levees, pipes and multiple storages) 5. Planning controls to maintain catchment permeability. One of the major benefits of the strategy will be a significant increase in the developable area across the precinct. It is estimated the strategy would increase developable land in the precinct by up to 22.3 hectares. Improving community access and creating new open space In addition to the Flood Mitigation Strategy, Melbourne Water recognises the social value of the Moonee Ponds Creek and the open space around it. We are already collaborating with City West Water and the City of Melbourne on an Integrated Water Management Plan for Arden Macaulay to examine ways to make the best use of green space in the catchment and improve social connectivity. Melbourne Water has partnered with the City of Melbourne to lead master planning for Moonee Ponds Creek and ensure optimal outcomes along its entire length. 4. Local drainage (pipes and pumps) The roles of Melbourne Water and councils in water management Local government and Melbourne Water have a long history of working together in the Port Phillip and Westernport region. Our Local Government Charter provides guidance for Melbourne Water about how to work effectively with local government and outlines standards to support the delivery of services we are accountable for. The Living Rivers and Corridors of Green projects are two of the many examples that highlights the success of Melbourne Water s enduring partnership with local government. The main objectives of these programs are to: build the capability of local government to implement Integrated Water Management and Water Sensitive Urban Design principles in administration of planning schemes and management of IWM and WSUD assets deliver integrated water solutions that improve waterway, flood and drainage management. Enhanced relationships between Melbourne Water and local government authorities has a positive, flow-on effect for local communities, resulting in better outcomes through collaboration, improved efficiencies and enhanced liveability. Corporate Plan 2017 to 2022 Melbourne Water 33

36 Healthy environment Enhancing the natural environment We contribute to Melbourne s healthy environment by being innovative with resource recovery, reducing our greenhouse emissions and improving the quality of waterways. We also enhance local biodiversity and help protect Melbourne s natural assets. Mitigating the environmental impact of our operations, particularly our contribution to climate change, is a high priority for Melbourne Water. In 2014 we completed an award winning $43 million project to further reduce emissions by replacing biogas covers at WTP. This initiative has saved 174 cubic metres of landfill space and 45 tonnes of carbon emissions which equates to removing 11 cars from the road. In 2017 we commissioned four additional mini hydroelectric plants to add to our existing network of 9 mini hydro plants, and we will investigate adding more hydroelectric plants in We will continue our Carbon Emission pledge by committing specific energy efficiency actions to help achieve net zero emissions by We are expecting the Western Treatment Plant to be a net exporter of renewable energy in the near future and we will continue grow our renewable energy operations. In recent years we have significantly reduced our stockpile of biosolids. In we reduced the biosolids stockpile at the Eastern Treatment Plant by more than 225,000 tonnes through beneficial reuse, the largest reduction in the 40 year history of the plant. In we will seek new applications for biosolids. Another important priority for Melbourne Water is to contribute to healthy ecosystems by managing waterways from catchment to coast. We also empower people to help protect our natural assets through engagement and education programs. In we invested $8.6 million in grants to local government and community groups to deliver projects that protect and improve the environmental management of our waterways. In we will review our current Waterways Strategy to incorporate Aboriginal values in our waterways protection and management plans by engaging with Traditional Owners. 34 Melbourne Water Corporate Plan 2017 to 2022

37 Healthy Waterways We will continue to improve the quality of waterways and enhance biodiversity in an increasingly urbanised region 8,680km 478 RIVERS &CREEKS WETLANDS 160 U R B A N LAKES 314 MONITORING STATIONS 1491 KM UNDERGROUND DRAINS Melbourne Water manages the health of Melbourne s rivers, creeks, wetlands and urban lakes across the Port Philip and Westernport region. Our river health and stormwater management programs help protect and improve the condition of the region s waterways and bays and also improve habitats for plants and animals that live there. We do this by restoring vegetation, creating new habitat, delivering environmental flows, and managing a network of wetland and stormwater treatment systems. Corporate Plan 2017 to 2022 Melbourne Water 35

38 Drainage retarding basin Wetland Natural waterway Maribyrnong catchment Primary river basin catchment boundary Waterways and drainage boundary Yarra catchment Werribee catchment Dandenong catchment Western Port catchment Port Phillip Bay Western Port Bass Strait Figure 19 Waterways and drainage networks across the Port Phillip and Westernport region. Melbourne Water works with local councils, land owners and community groups to improve waterways, including the Yarra, Werribee and Maribyrnong rivers and many smaller suburban creeks. We are involved in land use planning to make sure new developments protect and enhance nearby waterways. Our waterway protection and enhancement program is focused on: managing the condition of Melbourne s waterways and building system resilience to the long-term impacts of climate change balancing water flows and water demand with environmental needs Melbourne Water also supports a range of activities in waterway catchments to reduce stormwater pollution and runoff. These activities are guided by our Healthy Waterways Strategy. Over the to planning period, we will continue to manage and improve waterway health from catchment to coast. This will include a significant investment of $456 million to create new assets in new urban development and ensure they deliver appropriate flood protection, water quality and waterway health outcomes. Other key projects include $192 million to manage stormwater and help protect and improve the health of waterways and bays. providing incident response to pollution events protecting environmental values by setting development plans and enforcing standards as part of new urban development managing stormwater to encourage reuse and protect our waterways. 36 Melbourne Water Corporate Plan 2017 to 2022

39 to $1,813M FORECAST REVENUE FOR WATERWAYS AND DRAINAGE SERVICES $648M CAPITAL FOR WATERWAYS AND DRAINAGE 26% OF MELBOURNE WATER S TOTAL CAPITAL EXPENDITURE $491.8M DIRECT OPERATING EXPENDITURE 10% OF MELBOURNE WATER S TOTAL EXPENDITURE Capital program Total planned capital expenditure on waterways projects over the to planning period is $648 million ($456 million for developer initiated capital works and $192 million for waterways protection) which accounts for 26 per cent of Melbourne Water s total capital expenditure. The waterways and land capital program is mostly driven by growth and risk management on waterways protection and enhancement. The capital delivery program from to increases due to stormwater management and wetlands ratification works. Developer initiated capital projects for the to planning period are shown in Figure 20. Waterways capital projects for the to planning period are shown in Figure 21 Significant capital projects are detailed in Appendix C. 5 Year Corporate Plan by Product 5 Year Corporate Plan by Product Corporate Plan $456M 60.0 Corporate Plan $192M Nominal $'M Nominal $'M / / / / / / / / / / / /22 Figure 20 Developer initiated capital projects for the to planning period. Figure 21 Waterways capital projects for the to planning period. Corporate Plan 2017 to 2022 Melbourne Water 37

40 Revenue and expenditure Forecast waterways revenue for the to planning period is $1,813 million while operational expenditure is $492 million. This accounts for 10 per cent of Melbourne Water s total operating expenditure. Figures 22A and 22B show the breakdown of capital and direct operational expenditure for waterways and drainage. Labour $210.7M External Services $215.6M Compliance $10.4M Growth $462.8M Renewals $72.3M Strategic/Risk Mgt $102.8M Materials $9.6M Information Technology $1.8M Energy $2.1M Fees and Charges $5.2M Transport $5.6M Other $21M Land Tax $20.2M Figures 22A and 22B Breakdown of capital and direct operational expenditure for waterways & drainage. Strategic Priority: Healthy Waterways Strategy Our Healthy Waterways Strategy outlines the role Melbourne Water plays in managing rivers, estuaries and wetlands in the Port Phillip and Westernport region, in partnership with the community, our customers and stakeholders. Waterways across the region are highly valued by the community for many reasons. The purpose of the Healthy Waterways Strategy is to enable our waterways to be managed in a way that supports what the community values most. In some cases, this means protecting and maintaining near natural waterways while in other cases it means improving or maintaining modified waterways to an appropriate level. The current Healthy Waterways Strategy is intended to guide investment in waterway health in the Port Phillip and Westernport region through to mid It identifies priority areas and management actions, and sets out targets to measure these actions. The strategy is complemented by the Stormwater Strategy, which articulates Melbourne Water s role in managing rural and urban runoff. Together these strategies focus on integrated water cycle management to achieve multiple benefits such as healthy waterways and bays, improved community wellbeing and amenity, alternative water supply and public health. Planning is now underway to refresh the Healthy Waterways Strategy to ensure its long-term goals remain relevant and its implementation is in line with the latest management approaches. In addition, there are likely to be a range of emerging threats to Melbourne s waterways particularly from population growth, urbanisation and climate change. These need to be considered when planning for the future resilience of the Melbourne s waterways. The Healthy Waterways Strategy refresh provides an opportunity for the community to be involved in planning and priority setting. To do this, Melbourne Water plans to co-design key elements of the strategy with stakeholders and customers. 38 Melbourne Water Corporate Plan 2017 to 2022

41 Strategic Priority: Yarra Strategic Plan The Yarra River and its open space corridor underpin the liveability and economic prosperity of Melbourne. The river flows for 242 kilometres from its pristine headwaters, through some of Victoria s richest farmland and most valued parklands, to its outlet at the busiest port in Australia. More than 190 species of birds inhabit the Yarra River corridor, and one third of Victoria s animal species are found in its catchment. The river and its catchment also provide around 70 per cent of Melbourne s drinking water. In developing the Strategic Plan Melbourne Water will work collaboratively with local councils, community groups, Aboriginal groups and private landholders to improve the health and amenity of the Yarra River. The Yarra Vision and Strategic Plan aims to create an overarching strategic plan for the Yarra River and its adjacent public lands. It provides an exciting opportunity to develop a joined up, integrated approach to managing this iconic river. The strategy will be underpinned by a vision that articulates community expectations across the entire length of the river over the long term. It will ensure better coordination of activities and decision-making in managing waterways, public land, infrastructure, management of cultural and heritage values, statutory planning, and planning for whole-of-river amenity. Creating a Sustainable Region We will help create a sustainable region through innovative resource recovery and reducing our emissions Energy generation Both of Melbourne s treatment plants produce biogas (methane) during the treatment of sewage. This biogas is used to generate electricity and significantly reduces the operating costs of both treatment plants. Around 45 million cubic metres of biogas was captured at both plants over the last 12 months to cover 40 per cent of the electricity requirements of Melbourne s sewage treatment. The Western Treatment Plant uses biogas to meet nearly all of its electricity needs. When the plant produces more energy than it uses, the excess is transferred to the electricity grid to offset electricity use at our other sites. The Eastern Treatment Plant uses biogas to power a substantial amount of its heating and cooling needs. Its seven generators can run solely on biogas or can be supplemented by natural gas as needed. Melbourne Water has identified a series of projects to generate in excess of 100,000 megawatt hours per year of additional electricity from renewable sources. These projects include expansion and optimisation of our existing biogas-fueled power Corporate Plan 2017 to 2022 Melbourne Water 39

42 stations, construction of mini-hydroelectric power stations and solar power installations, and investigation of enhanced energy recovery from organic wastes. Over the to planning period a number of these projects will come online, further reducing Melbourne Water s greenhouse emissions. Biosolids Melbourne Water has made significant progress over the last two years in the use of clay rich biosolids from the Eastern Treatment Plant, achieving the highest amount of reuse in its 40 years of operation. Since 2015 more than 390,000 dry tonnes of biosolids have been removed from the 530,000 dry tonnes that were stockpiled on site and have been used as a sealing agent or to refurbish sludge drying pans. Melbourne Water is actively seeking new markets and trialling land applications for biosolids, which can be used to improve the condition of soil or as an energy source. Key projects planned to further reduce biosolids are: reviewing and investigating technologies that combine biosolids with other materials to generate energy and carbon products opportunities to reuse biosolids from the Western Treatment Plant for agricultural purposes opportunities to reuse geotechnical grade biosolids from Eastern Treatment Plant for structural fill. An additional 230,000 dry tonnes of biosolids are forecast to be removed in , with 192,000 dry tonnes of biosolids forecast to be beneficially reused in the next five years. Strategic Priority: Carbon Emission Pledge The Victorian Government is committed to a long-term target for Victoria of net zero greenhouse gas emissions by This policy includes organisations pledging to reduce their emissions to help achieve this target. Water for Victoria, the Victorian Government s new water plan, also calls on the metropolitan water corporations to examine accelerated progress to reach net zero emissions by Melbourne Water has already identified a series of projects to generate in excess of 100,000 megawatt hours per year of additional electricity from renewable sources. These projects include expansion and optimisation of our existing biogas fueled power stations, construction of minihydroelectric power stations and solar power installations and investigation of enhanced energy recovery from organic wastes. Melbourne Water is already committed to carbon reduction initiatives through energy efficiency programs and our own electricity generation capacity. Successful projects include the construction of nine hydroelectric power stations and two biogas fueled power stations at the Eastern and Western treatment plants. Together these power stations generate around 146,000 megawatt hours each year. To help meet the Victorian Government s zero emissions target, we will expand our electricity generation program and drive continuous improvement in energy efficiency. We will also increase our understanding of direct emissions from both the Eastern and Western treatment plants, their influencing factors and put in place measures to reduce them. Figure 23 Biogas fuelled power station at the Western Treatment Plant. 40 Melbourne Water Corporate Plan 2017 to 2022

43 Strategic Priority: Carbon Emission Pledge (cont.) Figure 24 Mini hydroelectric power station. As part of investigating greenhouse gases emitted from the Eastern and Western treatment plants, Melbourne Water is working collaboratively across the Victorian water industry with the support of universities. This work includes: research to enhance understanding of anaerobic lagoons to improve control and optimise biogas production miniaturisation of greenhouse gas sensors for use on drones to measure emissions from large and diffuse sources research into direct emissions from different sewage treatment plant areas, any links between easily measurable water quality parameters and emissions, and the impact of different operational conditions on emissions rates reducing known emissions through capture of dissolved methane investigation of algae for wastewater treatment and carbon sequestration. This work will inform future investment to reduce and offset direct emissions from Melbourne Water s Eastern and Western treatment plants. FY16/17 Forecast FY17/18 Forecast FY18/19 Forecast FY19/20 Forecast FY20/21 Forecast FY21/22 Forecast Forecasted scope 2 emissions 231, , , , , ,632 Forecasted scope 1 emissions 231, , , , , ,211 Total Forecast emissions 444, , , , , ,843 Sum of emission reductions , ,008 Net forecasted emissions 444, , , , , ,835 Table 1 Scope 1 and scope 2 emissions forecast using the National Greenhouse and Energy Reporting (NGER) methodology. Corporate Plan 2017 to 2022 Melbourne Water 41

44 Community Engagement We will build a community that values water and the environment Melbourne Water uses best-practice communications and engagement to determine community knowledge, capability and behaviours and to create shared outcomes for enhancing life and liveability. We build trust with our stakeholders by listening to them and considering their view during the decision-making process. Our engagement covers strategic business engagement, major program delivery, education, Clearwater and Waterwatch. Strategic Priority: Next Generation Community Engagement Project To create healthy people, places and environments, Melbourne Water needs to build strong relationships with the community. We also need to create meaningful ways for people to influence and be involved in the decisions we make. Melbourne Water s Next Generation Community Engagement Project will transform the way we engage and involve the community in the design and delivery of work they are impacted by or have an interest in. As either the lead agency or a key stakeholder in developing strategies, plans and programs and delivering projects that contribute to a sustained, healthy environment, we will ensure this transformation by focusing on: seeking input to inspire curiosity and diversity of ideas and opinions asking the question and not being afraid of the answer starting a new conversation leading to a new approach and more inclusive ideas helping customers come to us via digital channels at a time and in a way that suits them aligning processes to be reflective of the community engagement approach leading the way with genuine engagement for outcomes that benefit the environment and the community driving innovation while delivering results on time and to budget. People: developing a culture that values community engagement Practice: improving the way the community can engage with us through traditional and digital channels Policy and evaluation: monitoring and reporting on the effectiveness of community engagement Drive change: building community engagement into strategic and business planning. Our people will clearly understand Melbourne Water s public promise on community engagement and we will deliver this by: involving the community in decisions that affect and impact them 42 Melbourne Water Corporate Plan 2017 to 2022

45 Strategic Priority: Next Generation Community Engagement Project (cont.) Our Delivery Model CORPORATE DIRECTION CUSTOMER & STRATEGY EMPOWER you decide. our activities and implement We will work with you in the design of IaP2 Level COLLABORATE Our Promise We partner with you in the design of our activities and collaborate together to generate ideas and solutions. INTEGRATED PLANNING We will involve you in the design and delivery of our activities and advise how your input shaped the outcome. OUR STRATEGIES AND PLANS INVOLVE MAJOR PROJECT DELIVERY INFORM PROJECT DELIVERY We will inform you about our activities early and minimize any impacts. WHOLESALE SERVICES We will keep you informed, hear your ideas concerns, and provide feedback. CONSULT WATERWAYS & LAND ASSET MANAGEMENT SERVICES PROGRAM DEVELOPMENT Corporate Plan 2017 to 2022 Melbourne Water 43

46 Strengthening our business To successfully deliver our services in an era of rapid change, we need to build on a solid organisational foundation and adapt, evolve and develop. Our Strategic Direction sets out four themes to support our pillars and vision for the next five years. 44 Melbourne Water Corporate Plan 2017 to 2022

47 Customer focus Our customers understand and value our services. We listen to our customers and they are at the centre of everything we do. Melbourne Water will continue to provide strong and effective relationships by responding to digital transformation and the changing expectations of customers and stakeholders. Inspired people Our organisation is a leader, with diverse, smart and capable people who are reflective of the community. Melbourne Water will continue to build on its organisational capability, strive towards a high performance culture and develop an inclusive workplace. Continuous improvement With safety foremost, our innovative and agile approach embraces technology to exceed community expectations. Melbourne Water will continue to commit to the safety and wellbeing of our people and the community, deliver innovative digital and technological solutions for both customers and operations, optimise its asset performance through effective asset management, and drive an integrated approach to business improvement. Financial sustainability Our commercial excellence ensures we always provide value to the community. Melbourne Water will continue to commit to affordability for the community while maintaining the quality of our services. Corporate Plan 2017 to 2022 Melbourne Water 45

48 Customer focus We listen to our customers and they are the centre of everything we do. 46 Melbourne Water Corporate Plan 2017 to 2022

49 Customer focus Melbourne Water is committed to putting customers at the centre of everything we do. Our success is dependent on our ability to build strong, effective relationships with customers and stakeholders. We regularly seek feedback from our customers and stakeholders. Our reputation is measured formally by a quarterly Reputation Survey, which helps us understand how we are perceived by our customers and the community. This survey also provides us with valuable information about how satisfied they are with the products and services we provide. For further detail on our 5 year customer reputation targets please refer to Appendix B; Table B1. Our customers and stakeholders are identified in the following key segments: Victorian Government departments (nonregulatory) key Victorian Government agencies and regulators retail water companies local government developers community groups influencers suppliers community. We are driving an improved approach to customer service through transforming our customer service model. Recent investments include tools and technology to capture customer information and the establishment of dedicated Relationship Managers for our key customers. We have also developed training modules and Customer Service Standards to establish an organisational benchmark for customer interaction. Segment Manager Relationship Manager Strategic planning and analysis Direction setting Cross-functional collaboration Talent optimisation Relationship building and nurturing Communicating and influencing Commercial acumen Judgement and decision making Leading others Change orientation Results orientation and drive Teamwork and inclusiveness Continuous improvement and innovation Figure 25 Relationship Management Framework. Corporate Plan 2017 to 2022 Melbourne Water 47

50 Digital customer transformation Increasingly customers are seeking digital channels to interact with us. The evolution of Melbourne Water s customer service model is underpinned by a digital delivery model that will transform the way our customers interact with us across our digital platforms. Melbourne Water is working hard to improve our understanding of what customers expect from a digital experience and to find out more about how they access our products and services. Our first task will be to refresh the Melbourne Water website so that it functions on multiple devices, provides additional selfservice capability, and features improved content and design that is engaging, easy to navigate and accessible. Other digital customer transformation initiatives over the to planning period include: developing map functionality with overlaid Melbourne Water information digitising outbound customer communications developing an external co-workspace portal for developer and local government customer segments improving our social media offering refreshing all Melbourne Water apps. Indigenous engagement Aboriginal communities have a spiritual and customary living relationship with water in all its forms, through creation stories, use of water as a resource and knowledge about sharing and conserving water. Through the Water for Victoria Plan, the Victorian Government recognises and supports Aboriginal cultural, spiritual and economic values to land, water and resources and has made this one of its key priority commitments. Owners in the development of water resource strategies and programs. One of our flagship projects for the next financial year is the mapping of Wurundjeri cultural values along the Yarra River. This unique partnership, involves the Wurundjeri People, the Land Compensation Council and the Victorian Environmental Water Holder. The task is to identify Aboriginal cultural values and develop a program of works that acknowledge the Wurundjeri people s spiritual links to the Yarra River. Reconciliation Action Plan Launched in March 2016, Melbourne Water s Reconciliation Action Plan is a natural extension of our commitment to creating a culturally diverse and inclusive workplace and business. It builds on the strong relationships we have formed with many Traditional Owner Groups through our Cultural Heritage Program and provides a framework to move beyond legislative requirements concerning Aboriginal cultural heritage management and drive reconciliation with local Aboriginal and Torres Strait Islander communities. The Reconciliation Action Plan was developed by the Reconciliation Action Plan Working Group and its sponsors who will continue to monitor and deliver a range of actions outlined in the plan. Since launching the plan, Melbourne Water has committed to promoting reconciliation across the business, engaging employees in cultural learning and increasing opportunities for Aboriginal and Torres Strait Islander employment. These actions reflect the organisation s genuine commitment to long-term, sustainable relationships that benefit all Australians. Melbourne Water fully supports the need to engage with Aboriginal communities throughout the Port Phillip and Westernport region on water resource planning and management. Heritage Improvement Program Melbourne Water s Heritage Improvement Program remains a key tool to support ongoing engagement with local Traditional 48 Melbourne Water Corporate Plan 2017 to 2022

51 Achievements to date Looking ahead Reconciliation Action Plan Partnering with organisations to create Aboriginal and Torres Strait Islander employment opportunities at Melbourne Water, with four trainees commencing work in 2017 Delivering cultural awareness training for the Leadership Team, our Diversity and Inclusion Steering Committee and the RAP working group Promoting and hosting events to support National Reconciliation Week and NAIDOC week Launching the Diversity Census to understand and track the number of Aboriginal and Torres Strait Islander employees within the business Reviewing Human Resource policies and procedures to ensure there are no barriers to Aboriginal and Torres Strait Islander employment and retention Developing relationships with local Traditional Owner Groups and other Aboriginal and Torres Strait Islander communities to strengthen a culture of reconciliation within the business Setting a target of three per cent of our workforce identifying as Aboriginal or Torres Strait Islander by A key action to support this goal is the development of an Aboriginal and Torres Strait Islander Recruitment and Retention Strategy Promoting opportunities to work with local Aboriginal and Torres Strait Islander suppliers and looking at ways to incorporate supplier diversity within our revised Contract Management Framework due to be launched in 2017 Combining the knowledge, resources and opportunities available within the Victorian water industry to ensure an integrated approach to reconciliation. Corporate Plan 2017 to 2022 Melbourne Water 49

52 Inspired people Melbourne Water aims to be a leader, with diverse, smart, capable and resilient people who are reflective of the community. 50 Melbourne Water Corporate Plan 2017 to 2022

53 Inspired people We invest in our people to help them achieve their full potential and to encourage them to take on new tasks and challenges. Our work in this area is informed by our People and Capability Strategy, which includes the following key elements. Building organisation capability During the last 12 months we have continued our focus on developing the capability of our people with the Leading Life and Liveability and Thrive leadership development programs, and the introduction of the Manager Essentials program for frontline leaders. We also expanded our vocational education and training strategy with 14 trainees completing Certificate 3 in Conservation and Land Management in June 2017, eight trainees completing Certificate 3 in Water Industry Operations/Treatment in December 2017 and 18 apprentices completing Certificate 3 in Civil Construction in September A new engineering graduate program has seen us employ four new female and four male graduates. Within the next 12 months we will introduce a scholarship program for engineering undergraduates with a focus on supporting underrepresented groups such as women, people with a disability and Indigenous and Torres Strait Islander people. To help address current and future challenges, we understand our employees must not lose their capacity to learn. Individual thinking should not become rigid and real solutions need to be developed for the long term. During we will establish the Melbourne Water Career Development Centre. This new centre will strengthen our ability to deliver a variety of flexible learning experiences, frameworks and tools to meet the needs of individuals and the business now and into the future. Our people are our most important asset and we want to partner with them to connect them to lifelong learning experiences. The Career Development Centre will assist our people by delivering: training and development programs across six streams of learning pathways to formal qualifications, where relevant expanded coaching and mentoring programs career planning workshops to help our people achieve a rewarding career engineering and science scholarships school work experience programs to attract future talent graduations to celebrate success Leadership Competency Framework Technical Competency Framework Supporting our core leadership competencies and specific talent development needs. Supporting Melbourne Water s future by attracting and nurturing key capability. Developing the know-how and skills to perform and operate Melbourne Water systems and processes. Offering discipline specific professional development. Providing structured learning pathways delivering critical job skills and knowledge. Enabling our people to be safe and meet Melbourne Water expectations and legislative requirements. Figure 26 Career development streams. Corporate Plan 2017 to 2022 Melbourne Water 51

54 Achieving a high performance culture In 2016 Melbourne Water introduced a fully integrated online performance, opportunity and development system and processes to give everyone in our organisation the chance to reach their full potential by setting clear performance and development goals. Throughout we will build on this system by implementing automated processes and tools to support future career progression, talent recognition and succession planning. Developing an inclusive workplace Melbourne Water is committed to building a diverse workforce and an inclusive workplace culture. Creating a culture where people feel safe to express their views helps us deliver more innovative and effective solutions for our customers. Embracing and valuing diversity also leads to a better understanding of, and engagement with, the people we work with and the communities in which we operate. Women in Leadership Melbourne Water s Gender Equity Shortlist Policy came into effect in 2017, requiring all hiring managers to ensure they have a gender equitable shortlist of suitable candidates prior to commencing the interview process. As a result of this policy the number of women in management roles has increased from 28 per cent in to 33.5 per cent in We will continue to work towards our target of 50 per cent of women in management roles by A total of 36 per cent of all leadership program participants at Melbourne Water are women and we have achieved 41 per cent gender equity in the annual identification of potential talent across the business to build a gender equity pipeline of future leaders. In March 2016 Melbourne Water introduced a range of flexible working arrangements to help our people meet their commitments inside and outside of work. Case Study: Gender Equity July 2016 marked a major milestone in Melbourne Water s 125 year history when we appointed Charmaine Quick as the first woman to lead the organisation s core operations group. Charmaine was appointed to the role of Executive General Manager for the Service Delivery Group, leading a large workforce of 700 operational, professional and contract staff. The Service Delivery Group is responsible for delivering customer value through the provision of water, sewerage, waterways, drainage and recycle water. After starting her career at Melbourne Water (then known as the Metropolitan Board of Works) as a graduate civil engineer, Charmaine became increasingly interested in sewerage and sewerage treatment and was encouraged to move to that part of the business. 52 Melbourne Water Corporate Plan 2017 to 2022

55 Case Study: Gender Equity (cont.) Melbourne Water continually supported Charmaine to achieve her career aspirations by providing ongoing development in leadership and lifelong learning to achieve her goals. This included providing valuable secondments early in her career and opportunities to work at head office and operational sites such as Brooklyn Pumping Station where she held her first leadership role in the Sewage Transfer Operations team. Some of Charmaine s notable leadership roles across Melbourne Water include Manager of Eastern Treatment Plant Operations and Maintenance, General Manager of Wholesale Services, and General Manager of Service Optimisation and Performance. Charmaine acknowledges that Melbourne Water s authentic approach to flexible working arrangements has been crucial for her wellbeing throughout her career. She has taken advantage of a variety of flexible working arrangements to meet work and personal commitments such as studying part-time for a Masters in Environmental Science, flexible start and finish times to allow her to travel between work and her family in Shepparton and taking three months leave to pursue her passion for adventure travel. Charmaine is passionate about leading the Service Delivery Group, where she is keen to draw on her team s skills and experience, drive continuous improvement, provide excellent customer service and help provide development opportunities for the next generation of emerging leaders. Leading the Service Delivery Group is an amazing opportunity for any future leader. I was excited and proud when I was successful in becoming the Executive General Manager. I remember saying in the interview that there are few jobs in the water sector where you get to work with big mechanical assets like the Eastern and Western treatment plants, major dams like the Thomson and natural assets like the Yarra River, which all contribute to making Melbourne one of the most liveable cities in the world. Achievements to date four Indigenous employees started work in 2017 and are completing Certificate II in Conservation and Land Management senior leaders completed Cultural Heritage and Inclusive Leadership training indigenous catering services were introduced new reasonable adjustment policy and procedure implemented pre-employment testing, e-learning training and induction programs audited to ensure access for people with a disability facilities audited and action plans developed to address accessibility issues recruitment processes reviewed to ensure gender equality gender pay audit completed and inequities identified and addressed family and Domestic Violence procedure implemented including the provision for up to 20 days paid family and domestic violence leave online portal introduced to provide information, tools, checklists and resources for employees who care for older people at home PRIDE committee established and Melbourne Water participated in the annual PRIDE March for the first time Melbourne Water participated in NAIDOC Week, Carers Week, White Ribbon Day, International Women s Day, National Reconciliation Week and International Day for People with a Disability diversity census completed by all employees through the annual Alignment and Engagement Survey. Corporate Plan 2017 to 2022 Melbourne Water 53

56 Building our organisational engagement Each year Melbourne Water measures employee engagement through our annual Alignment and Engagement Survey. The survey provides an in-depth measure across several key areas such as the delivery of our vision, leadership, performance, wellbeing and diversity inclusion. For more information about our five-year engagement and alignment targets please refer to Appendix B, Table B1. The Alignment and Engagement survey will take place in May Looking ahead continuing to build on Melbourne Water s culture of inclusion by embedding diversity and inclusion values through process, training and decision-making maintaining our focus on gender equity with an emphasis on increased female representation at all levels of the organisation. (Target of 50 per cent by 2020) embedding flexibility into our different workplaces and equipping leaders to confidently manage a flexible workforce ensuring support for employees with a disability, those from cultural diverse backgrounds and people who may be impacted by domestic violence. People Strategic Framework To realise our vision of Enhancing Life and Liveability and our purpose of providing safe, secure, water and sewerage services, we need a workforce that is motivated and capable of delivering the Strategic Direction. Our most valuable asset is our people and we attract, develop and retain the best talent to service the needs of the community. When our people perform at their peak we deliver the highest quality services and engage with our customers in more meaningful ways. The talents and skills of our people are valued and the community benefits from everything we do. Our People Our Culture Our Workplace We are known for our high performance, championing diversity and inclusion and we attract and keep the best talent through our strong leadership. Our workplace is inclusive, flexible, safe and transparent where everyone is treated with fairness, dignity and respect. At the core of our culture are a set of values that bring out hte best in our people. We are recognised for working collaboratively with stakeholders to support Melburnians to live healthy lifestyles., improve access to nature and recreational facilities and manage the impacts of climate change and urban development. Figure 27 Our People Strategic Framework. 54 Melbourne Water Corporate Plan 2017 to 2022

57 George Charakos Energy Advisor Q: How is Melbourne Water supporting you? Bridget Russell Environmental Project Manager Q: How is Melbourne Water supporting you? Tim Rowan Senior Water Resources Engineer Q: How is Melbourne Water supporting you? A: Flexible working arrangements have enabled me to create a balance between my professional career, family life and health and wellbeing. The ability to work from home, work from site, variable start/finish times are examples of flexible working arrangements. These arrangements enable me to manage my time better, freeing up time to better balance work, family and personal wellbeing. Access to parental leave for both women and men is another example of how Melbourne Water is supporting me to achieve my work-life goals. This enables women to pursue their professional career aspirations and better balance work-life aspirations. Equal access to parental leave is also a perfect example of gender equity and breaks down the stereotype that males should be at work and females should be at home with the kids. Q: What s great about working at Melbourne Water? A: Working for the people of Melbourne and making a difference to their lives. My role involves minimising energy costs and greenhouse gas emissions, which reduces costs to our customers and minimises environmental impacts. A: Melbourne Water has supported my return to work from parental leave with flexible working arrangements in various forms, from coming back part-time to now working full-time and working from home one day a week. Being able to work from home means I can spend more time with my daughter throughout the week and as I work in an operational role with early start times, day-care hours are generally accommodating for a 9 5 working day. It s been very beneficial being able to have that flexibility with starts times on sites and with meetings. Q: What s great about working at Melbourne Water? A: Being a parent I ve felt my career hasn t stalled when coming back from parental leave. Working within this operational role, and the challenges that come with that as a parent, I ve found the business has been accommodating and supportive with my working arrangements, allowing me to be able to continue with my career and not have to settle for a role that would take me away from any future career opportunities. A: Melbourne Water has recently launched Refract, our working group for LGBTI inclusion. The group was developed as a staff-led initiative but quickly gained traction with support from the Diversity and Inclusion team and at all levels of leadership. The level of engagement and support shown across the business for LGBTI employees has really highlighted that while we have some work to do in the area, our people are right behind the initiative. Q: What s great about working at Melbourne Water? A: Melbourne Water is a truly collegiate place to work not only in the range of technical expertise and skills that are readily shared but its customer and community centric focus, which really provides a strong foundation for a passionate workforce to get things done. Corporate Plan 2017 to 2022 Melbourne Water 55

58 Continuous improvement With safety being a key focus of everything we do, our innovative and agile approach embraces technology to continually exceed community expectations 56 Melbourne Water Corporate Plan 2017 to 2022

59 Safety Melbourne Water s relentless focus on improving safety throughout our organisation continued in This was demonstrated on a number of fronts, particularly with the reduction of employee injuries and the development of an increasingly rigorous approach to operational integrity and asset safety. Safety Culture The aim of Melbourne Water s safety program is to prevent injury to our broader workforce and the community. Despite seeing progress in our safety performance targets (refer to Figure 28 for safety performance in total recordable injury frequency rate), we will continue to strive to improve the long-term sustainability of our safety endeavors. Joint Safety Program Our drive to create a generative safety culture is evident in the joint initiative between Melbourne Water and its Capital Development Framework partners, CPB Contractors, Black and Veitch, John Holland and Kellogg, Brown and Root (KBR). This initiative is inclusive of all parties and focuses on the real drivers of safety performance at a frontline worker and sub-contractor level. Rather than the more traditional top down approach, this program aims to create sustainable cultural change and raise the standards of work being performed across the whole sector. A significant focus of our overall safety program, the initiative is a test bed for other activities that may impact our business and partners more broadly, outside our major capital works program. In 2016 we launched Melbourne Water s Safety Commitment of Lead, Think, Act, Care and this overarching philosophy continues to be a valuable support to our activities and programs driven by the Safety Strategy. This safety commitment is the cornerstone of our commitment to a world-class safety culture that spans all aspects of the organisation and covers the activity of all employees, contractors, volunteers and the community we interact with and serve. We constantly evaluate our safety standards including performance targets, policies and procedures through the Safety Management System which is certified to AS4801. Melbourne Water has subscribed to the Safety Culture Improvement Model¹ and has pledged to become a generative safety culture. Over we will embed this model into our safety improvement programs to propel us to an industry leading position. Contractor Safety Forum April 2017 Key leaders from Melbourne Water, CPB Contractors, Black and Veitch, John Holland, KBR and subcontractors meet at fourth safety forum to review performance and determine next steps in our joint safety program. 1. The Safety Cultural Improvement model is based on the Hudson Safety Culture model developed by Professor Patrick Hudson Corporate Plan 2017 to 2022 Melbourne Water 57

60 Achievements to date During we: streamlined the effectiveness of our safety system, procedures and requirements kept our employees, contractors and partners safe from harm ensured our facilities and assets were designed, built, maintained and used with safety foremost in mind identified improvement opportunities and closed performance and standards gaps through effective audit and investigation programs improved our overall safety culture through employee engagement at work and at home, together with the development of capability leading to better safety invested heavily with the partners we engage with to undertake maintenance, construction and natural resource management to create a shared vision in safety. Looking forward While this work continues to create a solid safety culture at Melbourne Water, in we will grow our existing activities through: accelerating our drive toward a generative safety culture investing in skill and safety based training engineering out risks associated with manual handing and occupational overuse syndrome in conjunction with our partner DorsaVi strengthening our occupational hygiene program to address the dangers inherent in our core activities developing our focus on safe assets and safety in design increasing our focus on non-work health and safety issues relevant to our workforce and the introduction of programs and initiatives to improve their lives through education and training for family members. Keeping our people free from harm Melbourne Water has set aggressive targets for the reduction of injury across its employed and contracted workforce. These targets are currently focused on the industry standard Total Recordable Incident Rate (TRIFR) which measures the number of recordable safety events in a 1,000,000 hour work period. Over the last two years our target has reduced from 10 to three events per million hours worked and we are working tirelessly to achieve these objectives. In we will add a new set of safety performance indicators to our safety performance regime. These will be centred on cultural change to support a safer organisation. The new indicators will complement our current key performance indicator (TRIFR) and will provide a greater insight into our overall performance and future improvement opportunities. 58 Melbourne Water Corporate Plan 2017 to 2022

61 10 MW Total TFIFR (Apr 16 - Mar 17) Apr May June July Aug Sep Oct Nov Dec Jan 0 Feb Mar TRIFR Incidents Total TRIFR TRIFR Target Figure 28 Total recordable injury frequency rate for Case Study: Reducing manual handling injuries through new sensor technology In September 2016 Melbourne Water engaged Melbourne-based safety technology firm DorsaVi to a review of a number of high risk, high injury activities in our Waterways and Land Delivery business unit. DorsaVi has significant expertise in manual handling injuries, together with post injury care and prevention. The company s medical grade activity sensor system uses biometrics to monitor human movement, muscular-skeletal loadings and at risk movements that can lead to injury. This technology was piloted in three activities where prior injury prevention training and task risk analysis had not delivered the desired results. One of these activities included spraying weeds using 20 litre chemical backpacks, where an assumption had been made it was the weight of the backpack that was causing injury. However, by using DorsaVi s sensor technology, it was determined this was not case and injuries were instead caused by higher risk movements centred around putting the backpack on and taking it off as well as associated personal protective equipment. As a result of the investigation, modifications were made to vehicle trays to provide platforms for employees to lift from. Assisted lifts and other aids were also introduced. A key learning of the pilot program was that assumptions should always be avoided. Likewise nothing compares to the power of a good investigation when determining the right action to reduce the risk to workers and prevent injury. Corporate Plan 2017 to 2022 Melbourne Water 59

62 Digital technologies Now in its third year, Melbourne Water s Digital Strategy continues to deliver solutions that make our organisation faster, smarter, safer and easier to work with. The strategy ensures our digital projects, programs and capabilities are focused on the best possible outcomes for our stakeholders and customers. Looking forward Our digital technology focus over the next five years will include: Melbourne Water s assets, intellectual property and employee information. In addition, our Information Security Strategy will include technical methodologies for pinpointing and repairing any technical weaknesses or gaps. Shared solutions to enhance customer experience We will work with our internal stakeholders and customers to identify common objectives for sharing data easily with our partners, stakeholders and the wider community. We will identify technological platforms and solutions that integrate with our current data systems and are intuitive and easy to access. This will include embracing industry trends that work for Melbourne Water. Accelerating the pace of IT delivery We will continue to improve how we identify and deliver IT and digital solutions to our customers. To achieve this, we will refine our process for collaboratively identifying business objectives and preferred solutions, and efficiently progress proposed solutions through critical decision gates. We will also remove bureaucratic obstacles to ensure our projects benefit from a clearer justification of investment and facilitate more informed investment decisions. Asset intelligence and operational automation We will continue to improve operational practices using new and innovative IT technology. Working closely with Melbourne Water s Service Delivery Group, we will identify areas of convergence and exploit these opportunities to improve our operations and save time and money. Cyber security Cyber security will be a key focus for Melbourne Water. As cyber security threats increase in volume and sophistication, we will educate and support our people to identify and halt these attacks. We will also become experts in identifying social engineering attacks and cyber scams, thereby protecting 60 Melbourne Water Corporate Plan 2017 to 2022

63 Case Study: In-house software development ensures faster digital solutions In 2016 Melbourne Water formed Continuous Value Streams (CVS) teams to help deliver technical solutions across the organisation. These teams develop software in-house, ensuring faster delivery of working products to our internal customers. Melbourne Water s CVS teams use agile methodology, starting with a basic working product first known as a minimum viable product. Once launched, the business unit representative and the CVS team work together to identify and prioritise the next round of work. Ongoing sprints of work focus on incremental improvements and are highly responsive to live, in-the-field performance. Working with the CVS teams on the CREWS mobile app was a fantastic experience, said Nathan Ackland, Maintenance Optimisation Lead, Waterways and Land. The agile approach meant we could continually de-prioritise and re-prioritise work based on performance, urgency and other factors. Available on tablets, the CREWS application allows field operators to see and manage their work orders and labour transactions in the field. Piloted in Melbourne Water s North-East and West regions, the app created over 800 labour transactions for nearly 70 employees in its first few days. Launching the CREWS app is a big time saver for the Waterways and Land Delivery teams, said Nathan. It ensures our time records are accurate and our people are paid correctly. It is also the first step in a broader program of simplifying administration around recording time, payroll and leave transactions. By keeping our technical expertise in-house, Melbourne Water hopes to use CVS teams to continue to tailor technological solutions that meet our changing environments and needs. Corporate Plan 2017 to 2022 Melbourne Water 61

64 Asset management Part of improving the experience of our customers involves continual monitoring of the performance of our assets to ensure they contribute to our ability to deliver efficient, reliable services. Melbourne Water s Asset Management and Maintenance Optimisation Program enables our Service Delivery Group to realise service lifecycle value from its natural and built assets and develop best practice when using our assets to provide services. Centered Implementation (PCI) change management process and Lean business improvement tools. PCI and Lean are an integrated set of change and business improvement tools that are results orientated and designed to accelerate and sustain change initiatives. Collectively they provide a disciplined process for assessing risk, planning, implementing and executing change. Aligned with our objectives of a One Service Delivery, the legacy of the program will be to build lasting asset management and maintenance capability and help drive continuous improvement by enabling our people to develop their skills and experience while reducing the costs of our services. Looking forward Over the next five years the Asset Management and Maintenance Optimisation Program will help improve the business to: Make timely intervention and investment decisions by: implementing risk-based maintenance strategies to drive our condition monitoring programs for predicting failures to service levels developing mechanisms for measuring asset performance against required levels of service and adjusting our maintenance accordingly using our Asset Management Information System and Field Mobility to collect data at the right granularity to support decision-making. Optimise whole-of-life costs at a service level by: producing readily available reporting tools to link monthly, quarterly and yearly asset performance trends with financial information to optimise maintenance based on risk increase the level of automation by using fit-for-purpose technology. To achieve maximum benefit from implementing these improvements, the Asset Management and Maintenance Optimisation Program has adopted Melbourne Water s People- 62 Melbourne Water Corporate Plan 2017 to 2022

65 Case Study: Applying asset management principles to natural assets in Dandenong Melbourne Water recently tested and validated its asset management principles by applying them to natural assets within the Dandenong catchment. The objective of this project was to develop an end-to-end asset management process in a single system that could be applied to other natural assets. The process followed a risk-based investment planning framework that enabled us to: test the data on information and asset management maturity articulate risks to service levels focus on defining the waterways and stormwater maintenance and renewal program required to maintain asset condition and performance. This risk-based approach will see us shift from our current bottom up approach of developing investment programs to a top down prioritisation approach that makes best use of the capital and operational funds available. It will also enable us to clearly demonstrate how these investments contribute to the required levels of service on an asset-by-asset basis. Waterway Centreline Channel Centreline Figure 29 Dandenong catchment. Corporate Plan 2017 to 2022 Melbourne Water 63

66 The Waterways Planning Investment Process is as follows: Task 1: Task 2: Task 3: Select Assets to be considered in the Study Assess Threats Assess Asset Deterioration 2 Regulation, obligations, customer requirements and government policy Program planning 1 Waterway LoS Targets via HWS Task 4: Investment planning cycle Assess Cohort Definitions 3 2 Waterway LoS and risk evaluation Task 5: Modified MECA Piloting Assess current service gap and risk to service State of assets reporting Task 6: Task 7: Task 8: Task 9: Task 10: Task 11: Task 12: Identify Option Feasibility Criteria Estimation of Intervention Effectiveness Quantification of Failure Probability Set Up Intervention Scenarios Estimate Cost Streams for Each Intervention Scenario Identification and Monetisation of Consequences Incorporate Risk Costs into Cost Streams 4 5 Residual Service gap risk Life cycle cost analysis of feasible options Potential program of works Optimisation of program and budget setting Budget and resource constraints Task 13: Task 14: Assess Additional Benefits Estimate Financial and Economic Worth Agreed investment plan Delivery of works Figure 30 Waterways planning investment process. Through the Dandenong catchment project we were able to test our data, information and asset management maturity to establish an investment planning process that could be deployed across all Melbourne Water waterways asset classes. The next steps are to apply and further improve the investment planning processes in the Dandenong, Maribyrnong and Yarra catchments, before rolling out the new investment planning approach across all 14 Melbourne Water catchments by Melbourne Water Corporate Plan 2017 to 2022

67 Business improvement In recent years, Melbourne Water s approach to business improvement has shifted from a transformation phase to a continuous improvement phase by reviewing feedback from both our customers and employees. Melbourne Water will be undertaking a dedicated program to align, integrate and simplify the processes and procedures required to manage our business through the implementation of an Integrated Management System (IMS). The aim of an IMS is to integrate all components of the business such as risk, safety, product quality, environment and management systems into one coherent overarching system. Melbourne Water s IMS program will run over the next two years and focus on creating tools and tasks that reduce the time and complexity required to make important decisions about what is right for our customers and employees. The Board includes sub-committees to ensure Melbourne Water s success by driving significant strategic, commercial, financial and risk management decisions. Audit, Risk and Finance Committee Assists the Board in fulfilling its responsibilities relating to auditing, risk management, financial management and operational control practices, and compliance with relevant laws and regulations. People, Safety and Remuneration Committee Assists the Board in fulfilling its responsibilities relating to safety, human resources and remuneration. By reducing the administrative burden of our processes, we will have greater freedom to innovate and work with the community to solve the challenges of climate change, increased urbanisation and liveability. Governance Melbourne Water s Board has a robust governance system to ensure we excel in meeting our regulatory and statutory requirements. Customer and Service Delivery Committee Assists the Board in fulfilling its responsibilities relating to the delivery of customer driven services, affordable asset management and the protection of the environment and public health. The Board has adopted a charter that defines its role and responsibilities in line with the Water Act 1989 and other applicable legislation. Key roles and responsibilities include: long-term, sustainable outcomes based on a Environmental, Social and Governance approach (ESG approach) approval of corporate plans together with key performance indicators, linked to strategic direction The Board undertakes a formal evaluation of its own performance through the annual Board performance report. The next Board performance report is due to take place in in December 2017 and will be submitted to the Minister of Water on March approval of annual financial statements and monitoring of performance against objectives monitoring of safety, health and environment standards and management systems. Corporate Plan 2017 to 2022 Melbourne Water 65

68 Financial sustainability Our commercial excellence ensures we will always provide value to the community 66 Melbourne Water Corporate Plan 2017 to 2022

69 Financial sustainability Customer affordability is at the centre of Melbourne Water s commitment to continuous improvement. Our Financial Sustainability Strategy sets out Melbourne Water s objectives, actions and financial performance indicators. First established in 2012, the strategy has recently been refreshed to strengthen our financial management systems and capability. We define financial sustainability as the capacity of Melbourne Water to: meet its current and future financial obligations deliver valued services to the community over the medium and long term provide a return on investment to the State. Corporate and financial performance will be managed to: achieve the financial outcomes of the Corporate Plan based on revenue price path and financial commitments approved by the Essential Services Commission (ESC), which are outlined in Strategy Focus 1 maintain Melbourne Water s capacity to borrow from the State and service its financial commitments commensurate with a borrowing entity, with an investment grade corporate credit rating as outlined in Strategy Focus 2. For the to planning period Melbourne Water s Financial Sustainability Strategy will focus on two key areas. Strategy Focus 1 - Financial leadership and organisational financial capability Melbourne Water has invested significant organisational resources since 2012 in developing capabilities, frameworks and systems to improve financial management. Strategy Focus 1 includes four initiatives: management systems architecture and associated processes to drive efficiency and target best practice. 2. Updating Melbourne Water s commercial and financial due diligence processes to encompass opportunities, initiatives or ideas with the potential to improve operational or financial performance, with business cases completed to commercialise value adding projects. 3. Updating the Capital Management Framework to reflect the integration and alignment of asset management, capital investment and corporate treasury activities, plans and policies, and further build on our prudent and efficient investment behaviours. People 4. A dedicated focus on strengthening the financial management capability and business acumen of our people. We will continue to build a value-adding Finance function that transitions from a transactional and reporting focus to one that delivers insights and strategic financial support to our business. Strategy Focus 2 - Financial viability and commercial returns In the short term, Melbourne Water s financial sustainability focuses on achieving the financial outcomes of the Corporate Plan, updated for ESC Price Determinations. Long-term financial sustainability focuses on our capacity to fund all operating expenditure and the maintenance and replacement of our capital base from operating revenues, subject to the requirements of successive Price Determinations. Both objectives are encapsulated in Melbourne Water s objective to achieve Financial Sustainability Ratios (FSRs) in line with the financial metrics of an investment grade corporate credit rating. Our Financial Sustainability Strategy targets FSRs equivalent to Standard & Poor s long-term corporate credit rating for a stand-alone government-owned entity of BBB, with a short to medium term financial target rating of BB by 2021 (supported by strong qualitative ratings factors consistent with A to AA due to Melbourne Water s business risk profile as a regulated utility). Systems and processes 1. Further investment in Melbourne Water s financial Corporate Plan 2017 to 2022 Melbourne Water 67

70 Financial Sustainability Ratios. BB / Ba Benchmark FFO¹ Interest Cover FFO to Net Debt 6-10% Net Debt to Fixed Assets² 55-70% FFO less Dividend to Capex FFO-Funds from Operation 2. BBB/Baa rating metrics for Net Debt to Fixed Assets has been used as a minimum to ensure no deterioration from current rating determination Table 2 Target Ratio s to achieve Investment Grade Credit Rating. Performance indicators and reporting The key performance indicators for measuring the outcomes of the Financial Sustainability are: monthly management and annual financial reports comparing actual corporate and financial performance to approved budgets and/or the updated Corporate Plan the four Financial Sustainability Ratios identified in Table 2 performance reporting on progress in implementing each of the initiatives under Strategy Focus 1 Our financial focus for the next five years will be to operate as efficiently as possible while maintaining our commitment to quality. The following sections provide a summary of key financial measures for the planning period to More detail is included in Appendix E. Revenue Melbourne Water s revenue is projected to total $8,852 million over the to planning period. Our revenue sources are derived primarily from water sales, sewerage treatment, and the waterways and drainage charge (includes developers). We see an ongoing increase in projected demand for water, sewage flows and developer activities driven by population growth and urbanisation. 2,000 1,800 $1,771 M $1,737 M $1,737 M $1,773 M $1,786 M $1,820 M 2,000 1,800 1,600 1,600 Revenue (nominal $M) 1,400 1,200 1, ,400 1,200 1, Forecast $M $M $M $M $M $M Water Sewerage Waterways Developer Contributions Developer Contributed Assets Other Figure 31 Melbourne Water revenue for to Melbourne Water Corporate Plan 2017 to 2022

71 Operating expenditure Melbourne Water s direct operating expenditure is expected to total $2,626 million over the to planning period. Figure 32 shows planned operating expenditure by product. This operating forecast is based on efficiencies we have identified throughout the organisation, with the exception of key expenditure categories that are attached to contractual increases above CPI such as labour, energy and maintenance. Assumed operating expenditure trends for labour, information technology and consultants are provided in Appendix E. Direct Operating Expenditure (nominal $M) $470 M $492 M $514 M $528 M $540 M $552 M /17 Forecast 2017/ / / / /22 Water Sewerage Waterways & Drainage Alternative Water Corporate Figure 32 Melbourne Water direct operating expenditure for to Capital expenditure Melbourne Water s total planned capital delivery forecast is $2,526 million over the to planning period and it is determined that total expenditure over the Pricing Determination Period ( to ) will not exceed the Pricing Determination allowance as set by the ESC. The cumulative forecast over the Pricing Determination period has been balanced to the expenditures in the 2016 Pricing Determination, having consideration for the capital expenditure forecast as at December Figure 33 shows the capital program spend by product. The implementation of the P3i project offers opportunities to improve the development of the capital program that will result in an improved ability to manage our capital investment program within agreed funding limits and smooth the expenditure profile over the five-year period Capital Expenditure (nominal$m) /17 Actual/Forecast 2017/ / / / / Corporate/Business Development New Products & Resources Waterways & Drainage Sewerage Water Figure 33 Melbourne Water direct capital expenditure for to Corporate Plan 2017 to 2022 Melbourne Water 69

72 2016/17 Q3 Forecast $M 2016/17 Plan $M 2017/18 Plan $M 2018/19 Plan $M 2019/20 Plan $M 2020/21 Plan $M 2021/22 Plan $M OPERATING REVENUE Total Revenue 1, , , , , , ,819.8 Total Direct Expenditure Total Indirect Expenditure EARNINGS BEFORE INTEREST AND TAX Cost of Borrowing (excl Desalination) Desalination Finance Charges Tax Expense NET PROFIT AFTER TAX BALANCE SHEET Total Assets 14, , , , , , ,202.3 Total Liabilities 9, , , , , , ,863.3 Total Equity 5, , , , , , ,339.1 CASHFLOW Net Cash provided from Operating Activities Net Cash used in Investing Activities (424.0) (492.2) (524.1) (504.8) (504.4) (387.3) (525.6) FREE CASHFLOW (61.3) (158.0) (102.8) (91.1) (66.3) 63.0 (50.6) Net Cash used in Financing Activities (79.8) 39.7 RATIOS (As per MRD01) Return on Assets 5.9% 5.2% 5.4% 5.1% 5.1% 5.0% 5.1% Return on Equity 2.6% 0.6% 1.6% 1.0% 1.0% 0.9% 1.1% Interest Cover (Cash) Gearing Ratio (Debt to assets) 53.9% 56.7% 54.6% 55.1% 55.3% 55.2% 55.1% Internal Financing Ratio 79.8% 68.8% 70.0% 76.3% 87.3% 115.6% 90.6% Current Ratio EBITDA Margin 73.5% 69.2% 71.7% 70.4% 70.2% 69.7% 69.7% Cash to Government (Tax, Dividend, FAL, Capital Repatriation & LGRE) All tables subject to rounding Table 3 Summary of financial outcomes for the period to Net Profit After Tax (NPAT) is expected to be higher than the Corporate Plan due to an increase in Developer Contributions revenue in Development activity is expected to slow from and NPAT in future years will remain in line with the planning period. 70 Melbourne Water Corporate Plan 2017 to 2022

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