Myalup-Wellington Water Project
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The proposed Myalup-Wellington Water Project comprises a range of integrated above and below dam infrastructure components, aimed at reducing salinity in the Wellington Dam and surrounding area. The project was proposed by a private company, Collie Water, which was selected as the preferred proponent by the Western Australian Government, under the Water for Food programme, after an expression of interest (EOI) process to identify solutions for the Wellington Dam's salinity problem.
The Project's capital cost is estimated at $394.1 million, with operating and maintenance costs estimated at $290.5 million. It is expected that the project would take five to seven years to implement.
In June 2016, the Federal Government announced $1 million from the National Water Development Fund for a feasibility study into the proposed project. The Western Australian Government allocated a further $37 million to the project in January 2017, under the Royalties for Regions initiative.
In addition to the already allocated funding sources described above, the Western Australian Government and Collie Water are seeking $140 million in funding from the Federal Government, with Collie Water expecting to fund $169.1 million of the project. Collie Water's funding contribution will be made possible by the sale of at least 10 GL per year of desalinated potable water to Water Corporation.
The project would involve:
- Diversion of circa 14 GL per year of high salinity, low volume inflows in the Collie River East Branch into a disused mine void for storage;
- Pumping the stored water to a newly-constructed 20 GL per year desalination plant;
- Construction of a new weir at Burekup, upstream of its current location, to provide increased head pressure , enabling water from Wellington Dam to be gravity-fed to the majority of the Collie River Irrigation District (CRID) and the Myalup Irrigated Agricultural Precinct (MIAP);
- Building of a closed pipeline system from the new Burekup Weir to replace existing open channels to maintain pressure, prevent seepage, leakage and evaporation and enable monitoring of water usage; and
- Reforestation of approximately 2,000 to 4,000 hectares of plantation in the catchment if the project goes ahead.
Infrastructure Australia evaluated the Myalup-Wellington Water Project in November 2017, which resulted in the project being elevated from a Priority Initiative to a Priority Project on Infrastructure Australia's Priority List. Infrastructure Australia's evaluation of the project finds that the project would deliver a net benefit to the Australian economy, however, it notes that the benefits of the project are predominantly private and therefore does not recommend that the project should receive Federal Government funding.
Last reviewed: 04/04/2018