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UUA Consortium Nominated for Queensland Pipeline Project

30th July 2006


A joint venture involving United Utilities Australia and Transfield Services has been nominated as preferred proponent for the operations and maintenance of the proposed Southern Regional Water Pipeline (SRWP) in South Queensland.

The SRWP is a regional infrastructure project designed to meet existing and long term water requirements of Brisbane City, Ipswich City, Logan City Gold Coast and Beaudesert Shire Councils. The five Councils have joined with regional water authority South East Queensland Water in a strategic alliance which takes the form of an incorporated company, the Southern Regional Water Pipeline Company.

An 85 km-long pipeline will link the Gold Coast with Brisbane’s main water treatment plant, located near Ipswich, with the scheme also comprising five pumping stations, two balancing tanks and off-takes to nine reservoirs along the route.

Nominal capacity is 60 Ml/d, however this can be substantially extended under extreme drought conditions.

While the pipeline was initially planned to alleviate drought on the Gold Coast, with water flowing from the Brisbane water treatment facility to the Gold Coast, the proposed construction of a large desalination plant on the Gold Coast will enable desalinated water to be transferred via the pipeline to Brisbane.

As preferred proponents, UUA/Transfield’s first task is to provide a ‘total out turn cost’ (TOC) to operate and maintain the pipeline for the initial five year period, including the development of all the operating plans and procedures.

Agreement on the TOC will lead to the signing of an Alliance contract with the Southern Regional Water Pipeline Company.

Other contractors have been appointed for the design and construction of the pipeline. It is anticipated that work will start next month and will be completed early in 2008 at a cost in excess of $600m.

“South East Queensland is one of Australia’s fastest growing areas in both economic and population terms, however full realisation of its potential is being restricted by a serious lack of water. This project is a great strategic significance because it gives UUA a toe hold in an area where a number of large water infrastructure projects are about to be implemented,” said Graham Dooley, Managing Director of United Utilities Australia.

Value in terms of revenue, from the UUA / Transfield contract will be in the region of $6m per annum.

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