EXPRESSION OF INTEREST FOR SUPPLY OF RECYCLED WATER FROM PAXTON WASTEWATER TREATMENT WORKS

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1 EXPRESSION OF INTEREST FOR SUPPLY OF RECYCLED WATER FROM PAXTON WASTEWATER TREATMENT WORKS SUMMARY Hunter Water Corporation (Hunter Water) invites Expression of Interest (EOI) for the use of recycled water supplied from the Paxton Wastewater Treatment Works (WWTW) under a commercial arrangement with Hunter Water. Location of the current Paxton WWTW is shown in Attachment 1. The purpose of this EOI is for Hunter Water to explore and evaluate market interest in receiving the supply of recycled water from the Paxton WWTW. Hunter Water expects that any decision to engage in a commercial relationship with respondent(s) for the supply of recycled water will be subject to the broader outcomes of our investigations into effluent management at Paxton, successful outcomes of subsequent negotiations, selection and approval processes, feasibility, including consideration of the regulatory and legislative environment at that time. Hunter Water aims to maintain a proactive relationship with the community for the purpose of generating economic growth and new employment opportunities in the Hunter region. It is intended that the successful respondent(s) will engage with Hunter Water as a partner to advance Hunter Water's strategic business development objectives with respect to implementation of recycled water schemes that reduce potable water consumption and/or assist in the sustainable management of water. Each respondent is to complete the EOI respondent form, in Attachment 2. Hunter Water may seek additional information from a respondent to assist in understanding or clarifying their submission. Submissions shall be lodged in accordance with the requirements set out in the Information Pack, by no later than 5:00pm Wednesday, 21 March Submissions received after the specified date may not be considered. Should you have any questions please direct your enquiries to Vikas Shah, on or consultation@hunterwater.com.au. Expression of Interest for Supply of Recycled Water from Paxton WWTW 1

2 EXPRESSION OF INTEREST FOR SUPPLY OF RECYCLED WATER FROM PAXTON WASTEWATER TREATMENT WORKS Expression of Interest for Supply of Recycled Water from Paxton WWTW 2

3 Table of Contents 1.PURPOSE OF THIS REQUEST FOR EXPRESSION OF INTEREST BACKGROUND INFORMATION PAXTON WWTW Available quantities of recycled water from Paxton WWTW Typical quality parameters of recycled water from Paxton WWTW DESIRED OUTCOMES APPROVALS PARTICIPATION IN THE EOI NO CONTRACT OR UNDERTAKING CLARIFICATION ACCEPTANCE ENQUIRIES BY RESPONDENTS LODGEMENT OF EOI SUBMISSIONS CLOSING DATE FOR SUBMISSIONS ATTACHMENT 1 MAP SHOWING LOCATION OF PAXTON WWTW ATTCHMENT 2 EOI RESPONDENT FORM Expression of Interest for Supply of Recycled Water from Paxton WWTW 3

4 1. PURPOSE OF THIS REQUEST FOR EXPRESSION OF INTEREST (EOI) Hunter Water desires to increase the use of recycled water in our region wherever it is practical and environmentally and economically feasible to do so. One potential opportunity is to facilitate supply of recycled water from the Paxton WWTW to provide a secure supply of non-potable water for select commercial, industrial or agricultural (irrigation) purposes. The use of recycled water is also a key consideration in the sustainable management of effluent from wastewater treatment plants. The purpose of this EOI is to: 1. Evaluate market interest in receiving the supply of recycled water from the Paxton Wastewater Treatment Works (WWTW); 2. Explore feasible options that may exist for Hunter Water to enter into a commercial arrangement(s) to supply recycled water; 3. Engage customers and communities in improving recycled water usage; and 4. Develop possible opportunities to be included in the long term effluent management plan for Paxton WWTW. It is broadly anticipated that this initiative will be managed over the following Stages: STAGE DESCRIPTION TIMING 1 Request for EOI EOI opens: 15 Feb 2012 EOI closes: 21 Mar Assessment & Feasibility Shortlist Target: Apr Discussions with Selected Respondent(s) As required 2. BACKGROUND INFORMATION Hunter Water is developing a long term strategy for effluent management for the Paxton WWTW. This includes developing an understanding of potential reuse opportunities in the area as well as further understanding impacts of continued discharge of treated effluent on receiving waters. The focus of the EOI is to assist Hunter Water in fully understanding potential opportunities for use of recycled water in the vicinity of Paxton WWTW so that we can make an informed evaluation as part of developing the strategy for effluent management. The use of recycled water can have the following benefits, depending on the specific application: 1. Reduce the consumption of potable water; 2. Reduce the volume of treated effluent discharged to receiving waters from the wastewater treatment plant; 3. Reduce the demand for water extracted from rivers, creeks and groundwater for agriculture and other purposes; 4. Can provide additional water security to users (e.g. in drought conditions); and 5. Allow for new water uses (e.g. a crop for which there was no water available previously). Hunter Water is keen to explore opportunities for recycled water use that align with its strategic objectives of sustainably managing water resources in the Lower Hunter. Expression of Interest for Supply of Recycled Water from Paxton WWTW 4

5 Opportunities to use recycled water will vary with location, individual circumstances, environmental compliances, quantity and quality needs, and the overall commercial viability of schemes. Hunter Water is therefore calling for expression of interest for the use of recycled water from Paxton WWTW. As part of a wider initiative across our area of operation, Hunter Water is aiming to support and facilitate where commercially and environmentally feasible, the adoption of recycled water as a viable substitute to potable water consumption. Dual reticulation schemes at Chisholm and Gillieston Heights in the Maitland area will use highly treated effluent to replace potable water for toilet flushing and outdoor water uses. Over the next five years Hunter Water will be investing around $90m in effluent recycling in the region mainly for industrial recycling. Recycling water requires substantial infrastructure and is often energy intensive (treatment and pumping) so it is important any schemes are affordable and sustainable. Hunter Water has a long history of successful recycling schemes and some examples of viable recycle water schemes operating in our region are use of recycled water for: Industrial use (e.g. Eraring Power Station); Irrigation for agriculture; Urban irrigation for golf courses, controlled green spaces, woodlots; and Combinations of any of the above. 3. PAXTON WWTW The Paxton WWTW services the townships of Millfield, Ellalong, and Paxton. The WWTW was recently upgraded in 2011, in order to cater for new connections from the sewering of Millfield and Ellalong. The upgrade to the WWTW included Hunter Water's first successfully commissioned membrane bioreactor (MBR). MBR is an advanced membrane technology which provides a more robust treatment process and produces high quality effluent. An effluent management strategy study is now being conducted in order to determine the most sustainable long term effluent management strategy for the Paxton WWTW. One component of this study is a reuse investigations option study. Information received from respondents to the EOI will be utilised in the reuse investigations option study, which will determine whether or not there are any feasible reuse options. Attachment 1 contains a map showing the location of the Paxton WWTW AVAILABLE QUANTITIES OF RECYCLED WATER FROM PAXTON WWTW The current treated effluent discharge from Paxton WWTW equates to around 110 to 146 million litres per year (ML/year). Therefore, on average there is currently 0.3 to 0.4ML of recycled water available for distribution daily. As growth occurs in the catchment, recycled water production from the WWTW will also increase. Obviously, the extent and rate of development within the catchment is out of Hunter Water s control. Therefore Hunter Water cannot guarantee the future quantities of recycled water that will be available from the Paxton WWTW. Based on the best information available, the graph below shows the potential future availability of recycled water from Paxton WWTW. Expression of Interest for Supply of Recycled Water from Paxton WWTW 5

6 Paxton WWTW - Predicted Recycled Water Availability Average Recycled Water Available (ML/d) Average Daily Water Flow Year 3.2. TYPICAL QUALITY PARAMETERS OF RECYCLED WATER FROM PAXTON WWTW The table below shows the recycled water quality that the Paxton WWTW is designed to achieve. Parameter Unit 50%ile 90%ile 100%ile ph ph N/A N/A Suspended Solids mg/l N/A Biochemical Oxygen Demand mg/l 6 10 N/A Ammonia (NH3-N) mg/l 1 3 N/A Total Nitrogen (as N) mg/l 8 15 N/A Total Phosphorus mg/l N/A Faecal Coliforms mg/l N/A Depending on relevant regulatory compliances and commercial feasibility, quality of this recycled water may be suitable for industrial and/or irrigation purposes. 4. DESIRED OUTCOMES Hunter Water is seeking to develop a commercial relationship with land owners or businesses that are willing to partner with Hunter Water in some form of longer term arrangement for effluent reuse. The desired outcomes, both short term and long term, arising from this request for EOI are: (i) (ii) (iii) Potable water substitution for non-potable uses; Minimising treated effluent discharge to the receiving water environment; and Creating new demands for recycled water. 5. APPROVALS All recycled water schemes require approval under the Environmental Planning and Assessment Act 1979 in order to proceed. Expression of Interest for Supply of Recycled Water from Paxton WWTW 6

7 Other government authorities such as the Department of Health, Environment Protection Authority, and the Office of Water may also have a role in providing approval for a recycled water scheme. The operation of all recycled water schemes is regulated under the Australian Guideline for Water Recycling: Managing Health and Environmental Risk PARTICIPATION IN THE EOI PROCESS Interested parties who have not submitted an EOI may be ineligible to participate in any subsequent process. Hunter Water unconditionally reserves the right to selectively negotiate with a shortlist of respondents, to recall EOI or to stop the project. Hunter Water is not liable for any expense or loss that may be incurred by a respondent in preparation of its response. No representations or statements made by Hunter Water, its employees or agents shall constitute an official expression on behalf of Hunter Water unless the Managing Director or his/her delegate makes the representation or statement in writing. 7. NO CONTRACT OR UNDERTAKING No contract shall exist until Hunter Water and the respondent have executed a deed in writing that incorporates the outcomes of subsequent negotiations and agreed terms (if at all). 8. CLARIFICATION Hunter Water may seek clarification from a respondent to this EOI request. Any discussions entered into with a respondent by Hunter Water will be at Hunter Water's sole discretion and purpose. 9. ACCEPTANCE Hunter Water unconditionally reserves the right to accept or reject any submission regardless of compliance or non-compliance with the conditions of this EOI. Hunter Water reserves the right not to enter into a commercial arrangement. 10. ENQUIRIES BY RESPONDENTS All enquiries should be directed to Hunter Water: By telephone, Vikas Shah, on ; or Via to consultation@hunterwater.com.au Expression of Interest for Supply of Recycled Water from Paxton WWTW 7

8 11. LODGEMENT OF EOI SUBMISSIONS EOI submissions may be lodged in the following ways by completing the EOI for Paxton WWTW Respondent Form: Postal Address: Submissions to be in a sealed envelope, clearly marked as set out above and addressed to: The Tender Box Hunter Water Corporation PO Box 5171 HRMC NSW 2310 Personal Delivery: Submissions to be in a sealed envelope, clearly marked as set out above and delivered to: The Tender Box Hunter Water Corporation 36 Honeysuckle Drive Newcastle NSW 2310 EOIpaxton@hunterwater.com.au All submissions shall be clearly marked: "EXPRESSION OF INTEREST Supply of Recycled Water From Paxton WWTW Including Attachment 2 completed 12. CLOSING DATE FOR SUBMISSIONS The closing time and date for submissions is 5:00pm Wednesday, 21 March Expression of Interest for Supply of Recycled Water from Paxton WWTW 8

9 ATTACHMENT 1 MAP SHOWING LOCATION OF PAXTON WWTW Expression of Interest for Supply of Recycled Water from Paxton WWTW 9

10 ATTACHMENT 2 EOI RESPONDENT FORM NAME: EOI FOR RECYCLED WATER SUPPLY FROM PAXTON WWTW Position/Title: Residential Address: Suburb: Postcode: State: Proposed Property Address: Suburb: Postcode: State: Phone: Mobile: DETAILS OF PROPOSED SCHEME: TYPE OF PROPERTY/BUSINESS provide specific details (e.g. dairy/beef cow farm, vineyard, chicken farm): Will any products be utilized for human consumption: Land Size: Are there any active bores on site/in close proximity, if so what are the bores utilised for: QUANTITY: Expected quantity of use - Daily: Annually: Preferred pressure/delivery rate L/sec (if known): Expected term of use: QUALITY: Intended use provide specific details (e.g. pasture irrigation, dairy shed wash down): Source substitution (e.g. ground water, rain water): Expected human contact with water: INFRASTRUCTURE: Ideal location of delivery point: Any land matters: On site available storage (e.g. dam capacity): Proposed distribution method of water onto land: FUNDING: Any commercial requirement: Willingness to contribute to the scheme: Any additional information in support of your submission: Applicant s Signature: HWC Personal s Received Signature: Date: Date: Expression of Interest for Supply of Recycled Water from Paxton WWTW 10

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