SA Water Capital Work Delivery Contracts




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
SA Water Capital Work Delivery Contracts
STATUS

Prospective pipeline

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.

Credibly proposed

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.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

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.

Recently closed

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:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Recently closed
VALUE: $1.6bn AUD
SECTOR: Water & sewerage
JURISDICTION: SA
PROCUREMENT APPROACH: Traditional procurement
TYPE: Greenfield

Project scope

SA Water's regulatory business proposal for 2020-24 outlined $1.8 billion in capital expenditure to be undertaken on its water and sewerage infrastructure.

The major capital work program, worth $1.6 billion has been divided into three framework agreements, starting delivery from July 2020. Under the agreements, packages of work will be awarded to the three contracting entities progressively, if rigorous performance standards are maintained.

The work is expected to cover SA Water's external regulatory responsibilities, ensure sustained services, enable growth, improve the current service levels and enhance efficiency. Capital works including, but not limited to:

  • dam upgrades
  • water tank refurbishments
  • water main replacements
  • sewerage network upgrades, and
  • water treatment process changes

 

are expected to part of the program. The work will be spread across both the metropolitan and regional South Australia.

 


 

Key Dates

Jun 2020: Three contracts awarded for major capital work programs.

Jul 2020: Delivery of capital work to begin.

2024: Capital work contract period to end.

 


 

Procurement

Successful Tenderer:

Three major framework agreements for up to $500 million have been signed with:

  • Fulton Hogan Utilities
  • John Holland and Guidera O’Connor Joint Venture, and
  • McConnell Dowell and Diona Joint Venture.

 

Under these agreements, work packages will be awarded progressively, subject to performance standards being met. Delivery of the capital program is set to begin this month.

Related contracts:

Up to six minor framework agreements to be also awarded, covering smaller work programs with the potential for between up to $8 million and up to $44 million of work to be allocated to the successful tenderers.

 


 

Funding

SA Water: Our Plan 2020-24 outlines that SA Water will invest $1.8 billion in its capital infrastructure program. Specific State contribution details for the program are unclear.

 


 

Project History

Jun 2020: Three major framework agreements for up to $500 million each awarded to Fulton Hogan Utilities, John Holland and Guidera O’Connor joint venture, and McConnell Dowell and Diona joint venture.

Jun 2020: Essential Services Commission of South Australia released the final regulatory determination to apply to SA Water for the period of 1 July 2020 to 30 June 2024.

Nov 2019: SA Water's regulatory business proposal for the period of 1 July 2020 to 30 June 2024 submitted to Essential Services Commission of South Australia.



Last reviewed: 03/07/2020

Presented by

Government sponsors

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Supporting agencies

 
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