Northern Victoria Irrigation Renewal Project

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1 Northern Victoria Irrigation Renewal Project David Downie General Manager Office of Water Victorian Government February 2009

2 Northern Victoria Irrigation Renewal Project (NVIRP) NVIRP: saving hundreds of billions of litres each year.

3 Population Distribution: Australia Population: ~21 million Brisbane Perth Sydney Melbourne Source: Australian Bureau of Statistics

4 Rainfall analysis: Feb 2006 Jan 2009

5 Rainfall deficiencies: Feb 2006 Jan 2009

6 The Murray Darling Basin

7 Major rivers of the Murray Darling Basin Queensland South Australia New South Wales Victoria

8 Early irrigation in Northern Victoria Irrigation Districts

9 Mildura District irrigators, c1897

10 Victoria s Population and Food Bowl Mildura Bendigo Food Bowl Shepparton Albury Wodonga Ballarat Geelong Source: Australian Bureau of Statistics

11 Victoria s Food Bowl Key Facts: River Murray New South Wales 14,000 irrigators $9 b p.a. produce $1.5 b p.a. exports Victoria Shepparton

12 Channel Construction, c1889 Up to 80 per cent of Victoria s water is used for irrigated agriculture and around half is used in the Food Bowl.

13 Supply, Drought and Climate Change Climate Change Scenarios Murray System Victorian share Mean Annual Reduction in Inflow Victorian Murray River inflows Year % Change % Scenario A Low climate change Scenario B Medium climate change Scenario C High climate change Scenario D Continuation of past 10 years low inflows 19 23% % 41 41% 45

14 Our Water Our Future The Victorian Government s Water Plan A$4.9 billion investment to save, create and share water by 1. building Australia s largest desalination plant (200GL p.a.) 2. expanding Victoria s Water Grid 3. increasing water recycling 4. promoting new and existing water conservation programs 5. upgrading Northern Victoria s inefficient irrigation system (through NVIRP)

15

16 NVIRP: Project Overview Stage One (~2012): Food Bowl farmers 75 GL p.a. Environment 75 GL p.a. Melbourne 75 GL p.a. Total: 225 GL p.a. Stage Two: Australian Federal Government in principle funding of $1b for: up to 100 GL for irrigators up to 100 GL for environment Total: 200 GL p.a.

17 Not much has changed in irrigation practices over the past 130 years NVIRP: System Renewal

18 NVIRP: System Renewal G M Irrigation District: loses about 30% of inflows 3,000 GL in for 2,000 GL out up to 800 GL lost p.a. Even over 15 years of dry conditions and drought this system has lost an average of 700 GL p.a.!

19 NVIRP: System Renewal Planned System Works: 1. the installation of automated channel gates and more accurate meters 2. the lining and piping of old earthen channels 3. specific works to reduce leakages and seepage 4. a reduction in outfalls 5. and a reconfiguration of the entire system.

20 NVIRP: System Renewal Benefits: Capture at least 50% to 60% of current average losses. Save a total of 425 billion litres p.a. (Stages 1 & 2). Savings: 175 billion litres to farmers 175 billion litres to environment 75 billion litres to Melbourne.

21 NVIRP: System Renewal Benefits: Use of modern technology and infrastructure More efficient on farm water use More responsive water ordering Greater certainty for irrigators Encourage commercial productivity Positive environmental outcomes Internationally competitive

22 NVIRP: System Renewal Total water saved: ~425 billion litres p.a. 80% will stay in Northern Victoria 20% (capped) will flow to Melbourne

23 NVIRP: System Rationalisation G M Irrigation District: ~ 4,000 real irrigators consume up to 70% of available water

24 Water Trading Unbundling : water allocations can be unbundled from each property s title then traded on an open market.

25 Water Trading Unbundling Benefits: A more efficient and flexible way to buy, sell and use available water Encourages inefficient farmers to leave the industry Remaining users set true price for water Farmers encouraged to adopt new water saving practices Reduces water needs by 30 70% Frees up water for other uses

26 Expansion of Water Trade Northern Victoria now has an active water market saw: 158 GL of permanent trade worth about $300m 478 GL of temporary trade worth about $250m Water Trade summary Victoria Year 2004/ / / /08 Permanent trade (ML) 58,120 52,932 76, ,888 Temporary trade (ML) 379, , , ,353 Note: Unbundling in northern Victoria on 1 July 2007 separated water entitlements from land. The 2007/08 permanent trade data includes all transfers of ownership of high reliability water shares, whereas data for earlier years excludes transfers of water rights/licences with land.

27 NVIRP: Renewal and Rationalisation

28 Northern Victoria Irrigation Renewal Project David Downie General Manager Office of Water Victorian Government February 2009

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