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United Utilities Australia commences negotiations

12th December 2006


United Utilities Australia is pleased to announce it has begun formal negotiations with the State Government in WA for a contract to supply water to the Goldfields and Esperance region.

UUA, the proponents of the $440 million Esperance/Goldfields water desalination plant and pipeline, has met State Solicitor Tim Sharp who has been appointed by the State Government to oversee contract negotiations.

"We have agreed with the process suggested," Managing Director Graham Dooley said.

"UUA remains confident that we can deliver water to the region at a lower cost to the Government than the current supply".

Mr Dooley said the company expected negotiations to be completed early in the new year.

The desalination plant and pipeline will deliver up to 100Ml/day of fresh water to the region, almost three times the amount of water currently available in the Goldfields.

"The cost to householders will not change and the Water Corporation will continue to be the retailer of water to residents," Mr Dooley said.

"With the successful completion of this negotiation, Western Australia will be leading the nation in developing alternative water sources and involving private sector investment in water infrastructure."

Mr Dooley said UUA believed it had an environmentally sustainable project which would deliver substantial economic and social benefits to the region.

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