Rosehill Recycled Water Scheme: a successful Public and Private Partnership. Alban Delpey - Operations Manager Rosehill
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1 Rosehill Recycled Water Scheme: a successful Public and Private Partnership Alban Delpey - Operations Manager Rosehill
2 Content 1. Scheme context 2. Creating a Public & Private Partnership 3. Design 4. New regulation 5. A successful and unique P.P.P.
3 Rosehill Recycled Water Scheme
4 Fairfield Recycled Water Treatment Plant
5 1. SCHEME CONTEXT 2005 Develop Scheme concept Late 2000 s Period of severe draught in Australia 2010 New South Wales government planning - Provide/secure water (2015 and beyond) - Increase recycling (70 GL/year by 2015) 2011 Beginning of Operations
6 1. SCHEME CONTEXT Concept design Low price of water => Infrastructure investment needs government subsidy => Public and Private Partnership (PPP) Regulation 2006: WICA (Water Industry Competition Act) Aim: administer/legislate private sector delivery and operation of water infrastructure projects
7 2. CREATING A P.P.P. - PARTNERS Public partner: Sydney Water Profile Local water utility (municipal) Largest in Australia. Area > 12,000 km2 Project - Initiate project - Financial support - Retail to foundations customers - Supply raw water to Scheme
8 2. CREATING A P.P.P. - PARTNERS Private partner: AquaNet Sydney (subsidiary of Jemena) Profile Infrastructure services (mostly gas) Own/manage $billions assets Project - Financing (CAPEX - network) - Technical expertise (network - DBOO) - Retailing to Sydney Water - Scheme expansion (Business Dvpt)
9 2. CREATING A P.P.P. - PARTNERS Private partner: Veolia Water Profile World-class water/wastewater services Municipal and Industrial Project - Financing (CAPEX treatment plant) - Water treatment expertise - Treatment plant DBOOT - Retailing to AquaNet Sydney
10 2. CREATING A P.P.P. - CUSTOMERS
11 2. CREATING A P.P.P. - CUSTOMERS Customers engagement Critical awareness program Aim - Understand needs - Overcoming apprehension/concerns - Plan, guide & assist How? Information package
12 2. CREATING A P.P.P. COMMERCIAL STRUCTURE Private funding Public subsidiary DBOO 20 years O&M contract
13 2. CREATING A P.P.P. COMMERCIAL STRUCTURE 6 Foundation Customers Plant Agreement Project Agreement Pipelines Agreement All other Customers
14 2. CREATING A P.P.P. UNIQUE FEATURES (1) Take or pay a base volume of water Base volume (70% of expected avg demand) Customers pay 90% of the potable water price Public partner subsidises the recycled water price to the foundation customers
15 2. CREATING A P.P.P. UNIQUE FEATURES (2) Model Plant Agreement (production) + Pipelines Agreement (network) VS. Design & Construction + Operations & maintenance
16 2. CREATING A P.P.P. UNIQUE FEATURES (3) Continuous Business Development Expansion built into design and contractual arrangement Readily upgradeable to 25ML/day Expand Scheme along initial network opportunities for network expansion 6 new non-foundation customers
17 2. CREATING A P.P.P. UNIQUE FEATURES (4) Asset Ownership Never transfers to the public partner Remains the property of the private partner
18 3. DESIGN - LOCATION Selection location Sustainable source of raw water No need for pipeline (raw water) Close proximity with customers (foundations and potential) Low impact on environment and community Pipe bursting 3 km out of 20
19 3. DESIGN - LOCATION
20 3. DESIGN PROCESS Extensive Pilot plant testing Challenge: volatile raw water quality 2x sources + 2x quality + Variable ratio Removing ammonia Ion Exchange HACCP: early monitoring and actions
21 3. DESIGN PROCESS Chloramine + screening UF RO Chlorine ph control Ion Exchange
22 4. NEW REGULATION WICA (Water Industry Competition Act) Aim: administer/legislate private sector delivery and operation of water infrastructure projects Challenges: Brand new Regulate the regulator Delays Advantage: Preparedness
23 4. NEW REGULATION
24 5. SUCCESSFUL AND UNIQUE PPP Appropriate and efficient in local context. Centralised, reliable and compliant with regulation Private funding and collaboration with Public partner Private partners: expertise, innovation and investment Meets customers expectations (technical, financial, environmental, legal, etc) Viable and valuable Promotes production and use of recycled water in Sydney
25 Contact: Alban DELPEY Operations Manager Rosehill Veolia Australia and New Zealand Rosehill Recycled Water Scheme
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