Desalination site selection The Wonthaggi region has…

       Desalination site selection
       The Wonthaggi region has been selected as the site for the new desalination
       plant that will provide an additional 150 billion litres of rainfall-independent water
       each year to supply South Gippsland, Western Port, Melbourne and Geelong.



       What research was done to choose a site?

       The Seawater Desalination Feasibility Study prepared by Melbourne Water was
       one of several investigations into ways to address shortfalls in Melbourne's water
       supply.

       The study examined a range of possible scheme sizes, plant locations,
       environmental factors and project timing. Different types of desalination
       technology were examined, nine `long-listed' locations were considered and the
       viability of producing up to 200 GL per year was evaluated.

       Four locations were short listed in the study ­ the Surf Coast, Port Phillip Bay,
       Western Port and Bass Coast. The Bass Coast was found to have the best mix of
       features needed to build a desalination plant. A copy of the feasibility study
       explaining the site selection process can be obtained from
       www.ourwater.vic.gov.au.


       Why was Wonthaggi chosen?
       The Wonthaggi site offers easy access to the open ocean of Bass Strait for water
       intake, and freely circulating water that will rapidly disperse the salty water
       concentrate from the treatment process.

       Sites on the bays were discounted because of issues with source water quality
       and potential issues with salty outflow into relatively poor circulating waters. In
       addition the Western Port site identified would potentially impact on internationally
       significant RAMSAR-listed wetlands.

       Surf Coast sites would have required significant and expensive infrastructure
       upgrades to transfer water across Melbourne from west to east, as current water
       infrastructure has been built to transfer water from the east, where the water
       supply catchments are located, to the west.
       What are the benefits for the area?
       The desalination plant will provide significant benefits to local communities
       including:
          ·   3180 full time equivalent jobs - 920 direct and 2260 indirect - during
              construction of the plant
          ·   150 full-time equivalent jobs ­ 50 directly on the operation of the plant and
              100 indirectly - to support the ongoing operation, maintenance and
              servicing of the plant; and
          ·   $1 billion economic boost to Victoria during construction of the plant.


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         Desalination timelines

         The decision to build a desalination plant on the Bass Coast in the Wonthaggi
         region followed a study to determine whether a desalination plant for Victoria was
         feasible as a non-rainfall dependent way to boost our water supply.

         That study, undertaken jointly by Melbourne Water and consultants GHD,
         examined a range of possible options and locations for a new plant, which finally
         identified the Wonthaggi region as the preferred location.

         The Victorian Government has committed to a thorough Environment Effects
         Statement as part of the process. Additional detailed analyses and technical and
         environmental investigations are being undertaken to obtain the necessary
         environmental and planning approvals before construction can begin.

         They include further environmental assessments, detailed modelling and
         investigation work, ongoing community engagement, and contract document
         preparations.
         The contract for the construction of the desalination plant is scheduled to
         commence in mid-2009 with the first water available by the end of 2011.

       June 2007            Feasibility study by Melbourne Water completed

       July 2007            Information sessions with Bass Coast council and communities

       November 2007        Environment Effect Statement (EES) Referral submitted by DSE

       December 2007        Planning Minister announced EES to be undertaken

       March 2008           Public comment on EES Draft Scoping Requirements

       Early to Mid 2008    EES Scoping Requirements released and EES studies begin

       Mid 2008             Issue Expression of Interest to bid for project

       Aug to end 2008      EES report submitted, exhibited for public comment, assessment by
                            Planning Minister announced.

       Third quarter 2008   Issue Requests for Proposals for construction and operation

       Mid 2009             Award contract

       Mid to late 2009     Construction starts

       End 2011             Water delivered




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       Desalination and our environment
       What environmental protections will be included in the project?

       As the project develops, many measures will be put in place to ensure that the
       environment will be protected during construction and operation. A range of
       studies conducted in 2007 looked at flora, fauna, cultural heritage, hydrology,
       geotechnical, landscaping, design and visual analysis. These are being expanded
       as part of the Environment Effects Statement (EES) studies presently underway.

       An Environment Management Plan will guide the project and the Environment
       Protection Authority will monitor the desalination plant's construction and ongoing
       operation to ensure no long-term impact on the environment. The project will
       require environmental approvals by both the State and Federal Governments, as
       well as a discharge licence from the Environment Protection Authority.

       Will salty concentrate discharge harm the marine environment?

       Desalinating seawater through reverse osmosis produces fresh water and a salty
       seawater concentrate. The salty seawater concentrate is safely returned to the
       ocean through the outlet pipeline which will extend more than 800 metres
       offshore in water approximately 15­30 metres deep.
       The salt level of the seawater concentrate is about twice the salt levels of normal
       seawater. Modelling has shown that the concentrate is diluted within a short
       distance of the outlet.
       All discharges must meet the requirements set by the Environment Protection
       Authority (EPA).

       Will fish or other sea-life be drawn into the inlet pipe with the seawater?

       The risk of fish and other mobile sea-life being drawn in is minimal. Screens will
       be fitted to the intake structure and intake rates will be very low, to minimise
       impact.


       What's happening with the Environment Effects Statement (EES)?

       The Minister for Planning announced in December 2007 that the desalination
       project would be the subject of an EES. In February 2008, the Federal
       Government endorsed this EES process to also look at the plant's potential
       impact on internationally important wetlands and threatened species. Studies on
       potential effects will be conducted during 2008. The EES process is due to be
       completed by the end of 2008.




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       Desalination and energy
       How much energy will the plant use?
       The plant is estimated to use about 90 megawatts (MW) of power.

       What sort of power will be used?
       All options for potential, reliable power generation for the desalination plant will be
       considered and assessed on their merits in terms of environmental, social and
       economic impacts. There will be no nuclear plant built. The Victorian Government
       has legislation in place that prohibits this.

       Will it be carbon neutral?
       Renewable energy credits will be purchased to offset the electricity the plant will
       use, and this will be in addition to the Government's current renewable energy
       targets. This renewable energy could be sourced from anywhere in Australia that
       is linked to the electricity grid.

       How can this be achieved?
       The desalination plant's electricity usage will be offset through an expansion in
       renewable energy projects already underway or planned for the future around the
       State.
       The cost of using renewable energy has already been included in the operating
       cost of the plant.


       How much would the desalination plant's energy consumption contribute to
       a household's energy consumption for using water?
       About the same as a 4-star fridge, and considerably less than a hot water service.
       Figures from the CSIRO indicate that a city's water system uses only about two
       percent of its total energy. A standard 4-star fridge would use about the same
       energy as the desalination plant per household per day.
       A hot water service would use almost eight times as much energy as a
       desalination plant per household per day.




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       Desalination and power supply
       How much energy will the plant use?
       The desalination plant announced for the Wonthaggi region will produce up to
       150 billion litres of water, providing additional water to Melbourne, Geelong,
       Western Port and South Gippsland. A desalination plant that produces this
       amount of water will require approximately 90 megawatts of electricity to power
       the plant and the transfer pump station.


       How will the plant be powered?
       Detailed studies are being undertaken before any decision is made on a preferred
       power option. Studies will include assessments of environmental, visual, social
       and economic impacts associated with each of the three options under
       consideration - power from the electricity grid, gas generation and hybrid options.


       What options are currently being investigated?
       An investigation corridor has been identified for the grid connected power supply
       as part of the EES studies. Geotechnical, environmental and other assessments
       are about to commence. These investigations will be similar to those for the
       pipeline and will involve discussions with landowners and a range of property-
       based studies to assess the viability and suitability of this option.


       To assess the gas-fired power supply option, the EES will analyse ways to
       provide natural gas to the site. Assessment of the hybrid power supply option will
       include investigations into gas supply combined with analysis of potential direct
       connection of wind farm generated power.


       Why not supply power from the network that supplies Wonthaggi and
       Phillip Island?
       Existing electricity supply to the Bass Coast area could not support this additional
       load.


       What does the grid connection power supply option involve?
       The 500 metre wide northern investigation corridor is about 75km long. This
       involves connecting to the existing electricity supply network near Garfield/Nar
       Nar Goon and establishing a new transmission line running north from
       Wonthaggi. If grid connection becomes the preferred power option, the final
       easement may be around 40 metres wide.


       How do I find out if my land is affected?
       A landowner engagement team has been established to work with properties
       identified as being within the broad area of interest for the grid connection option.
       Affected landowners will be contacted by the team. A landowner liaison
       representative will be a single point of contact for landowners for any matter. A
       freecall number will also assist the team to respond to landowners promptly and
       efficiently.

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       Does investigating the grid connection option mean powerlines will be
       selected?
       Investigating this option does not mean it has been selected as the preferred
       power supply at this stage. The preferred power supply option and any other
       feasible options will be set out in EES.


       Will landowners and communities be involved in route selection?
       Substantial stakeholder engagement will be involved in investigating a possible
       power transmission route. Input from landowners in the 500m wide investigation
       corridor is important to properly understand relevant issues and perspectives
       along the corridor. These and other considerations by electricity authorities and
       environmental teams will be taken into account in the final route recommended.


       If a grid connection is selected, what will the transmission lines look like?
       Depending on the voltage, this could include transmission lines located
       underground or overhead on lattice steel towers or poles. Where possible, visual
       and amenity impacts will be minimised. Some ways this can be done are putting
       towers behind hills, using native vegetation as screens, revegetating affected
       areas, and adjusting pole types and heights.


       Will undergrounding be used?
       While high-voltage transmission lines can be installed as underground cables,
       they are significantly more expensive. Subject to relevant assessments and
       consultation, it is likely that the majority of the transmission line will be overhead.


       What environmental protections are in place?
       Impacts on the environment will be minimised where possible. The Government
       has decided there will be an Environment Effects Statement, and a range of
       technical studies, including flora, fauna, cultural heritage, hydrology,
       geotechnical, design and visual landscape analysis are underway. The results of
       these and other studies will provide the information needed to ensure the design
       of the plant, pipeline and power supply will minimise any impacts on the
       environment.


       Have greenhouse gas emissions and costs of power been considered?
       Whatever option that is ultimately adopted for supplying the plant with a reliable
       source of energy generation, renewable energy will be purchased to offset
       electricity the plant will use. This will be in addition to the Government's current
       renewable energy targets and could be sourced from anywhere in Australia that
       is linked to the electricity grid.




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       Desalination water pipeline
       Desalinated water from the proposed plant at Wonthaggi will be piped to
       Melbourne via a new 85 kilometre underground pipeline.
       The pipeline will connect into the existing network at Berwick. This water will then
       enter the Melbourne water supply system through Cardinia and Silvan reservoirs.
       Desalinated water can also be provided to towns in Western Port and South
       Gippsland through new pipe infrastructure and to Geelong via a new 50km
       pipeline connecting Geelong to the Melbourne water system by 2011.

       What route will the pipeline take?
       The exact route has not been finalised and further investigations are currently
       underway to define the final easement. The results of these investigations will be
       reported in the Environment Effects Statement (EES).
       The pipeline will go through Bass Coast Shire, City of Casey and Cardinia Shire
       Council areas. A 400m wide corridor between the proposed plant site and the
       Pearcedale-Cardinia water main has already been identified. This will be reduced
       to a final easement of approximately 20 metres for consideration in the EES.
       The current preliminary pipe route is shown online at www.ourwater.vic.gov.au


       How will I be affected?
       If your property is determined to be within the 400m wide pipeline corridor, you
       will have received letters from the desalination project team, who will also be in
       touch with you personally to discuss the process. Discussions with landowners
       combined with environmental and technical studies are helping to identify the final
       pipeline route.
       Study teams are being coordinated to cause as little inconvenience as possible
       for landowners in arranging access for further investigations. The freecall 1800
       811 214 number has also been provided to landowners to help them contact the
       project team.

       What happens if my property is subject to a pipeline easement?
       If your property is eventually identified as being in the direct path of the pipeline,
       an easement may be required. In such instances the desalination project team
       will endeavour to work with you to ensure that easement locations cause as little
       inconvenience as possible.
       If it is necessary to acquire an easement on your land, compensation will be paid
       under the Land Acquisition and Compensation Act 1986. This will vary depending
       on the effect on each individual property.




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       Desalination and the local community
       The Wonthaggi region has been selected as the best location for the desalination
       plant that will provide 150 billion litres of water each year by the end of 2011.

       How will the local community benefit?
       Through construction of new pipelines, water will be available across the region,
       including Phillip Island, Western Port and South Gippsland, as well as Melbourne
       and Geelong.
       The project will provide significant job opportunities during the construction
       phase, and a corresponding economic boost to the local region, including
       opportunities for local businesses.
       An independent economic impact study conducted by Monash University found
       construction of the desalination plant and the 85 kilometre pipeline would provide
       significant benefits to Victoria.

       These benefits include:

            · 3180 full time equivalent jobs - 920 direct and 2260 indirect - during
              construction of the plant;
            · 150 full-time equivalent jobs ­ 50 directly on the operation of the plant
              and 100 indirectly - to support the ongoing operation and servicing of the
              plant; and
            · $1 billion economic boost to Victoria during construction of the plant.


       The Industry Capability Network (ICN) has set up an office in the Public
       information Office at Wonthaggi to assist local industry to get involved in
       Victoria's desalination project
       The construction of the plant will take around two and a half years following the
       necessary comprehensive environmental, geological and other assessments as
       well as a program of consultation and engagement with the local community.


       How will the land for the plant site be secured?
       The process of compulsory acquisition of the land required for Victoria's
       desalination plant at Wonthaggi is proceeding normally. The acquisition of this
       land will give certainty, security and closure to the owners involved and allow
       them to get on with their lives.
       The Government will follow the requirements of the Land Acquisition and
       Compensation Act 1986 for the acquisition process. This Act will ensure
       landowners are fairly compensated for the acquisition of land.

       What about the rest of the community?
       The project team will work with the local community and businesses to maximise
       the economic benefit of the facility in the region and minimise the impact on the
       environment and on the local community.
       A Desalination Project Information Office was established in September 2007 at 1
       McBride Street, Wonthaggi (tel. 03 5672 1624) (open Tuesday­Thursdays,
       9.30am­3pm, second Sunday of the month 8.30am to 11.30am and additional
       times as required).


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       The office has information displays as well as fact sheets like this one, plus
       detailed information about environmental impacts, industry and employment
       opportunities, and feedback forms to provide comments to the project team.
       There are also free bottles of desalinated water to sample.
       The project team also provides information sessions, brochures, newsletters,
       letterbox drops and regular website updates.

       Will the community have an opportunity to have a say in the project?
       Input from the local community, councils, regional authorities and other
       stakeholders is playing, and will continue to play, a significant role in the project.
       Public comments on the Environment Effects Statement (EES) scoping document
       provided community input into the EES process. Public comments will be invited
       again when the EES report is exhibited.
       A range of public activities have been held since the middle of 2007, including
       community information sessions at Inverloch, San Remo, Kilcunda and
       Wonthaggi and information stands at local markets and festivals. Briefings have
       been given to councils, local groups, landowners, water authorities and other
       interested parties.

       A program of forums, field days and presentations with displays and information
       material help people to have their say. Consultation activities include:
          · information stands at community events
          · community forums
          · consultant open days where people can talk face-to-face with technical
             experts working on EES studies.
          · briefings and discussions with organised community groups, businesses,
             community leaders and agencies
          · focus groups and interviews
          · information kits available at the project information office, Bass Coast,
             Casey and Cardinia Councils
          · website updates and feedback forms
          · newspaper articles and public notices in local papers

       Members of the community are invited to talk to the staff of the Desalination
       Project Information Office, Wonthaggi and to submit feedback forms through the
       Information Office or the website. More information on the desalination project is
       available at www.ourwater.dse.vic.gov.au or call 1800 211 214.




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       Desalination and Public Private Partnership
       In September 2007 Premier John Brumby and Water Minister Tim Holding
       announced that the desalination project would be delivered as a Public Private
       Partnership (PPP) under the Government's Partnerships Victoria (PV) framework.

       Through a PPP, the Government will tap into private sector expertise in
       designing, building, financing, operating and maintaining the project for a period
       of time before handing it back to the Government.

       Desalinated water will be delivered from the private sector to the State
       Government owned water authorities who will deliver this water to households.
       Thus the public interest and ownership of water is protected.

       Under a PPP project, the concessionaire is paid if it delivers the required service
       to the required standard. For a desalination project, this will include delivering the
       required quantity of water to the appropriate water quality standard.

       The Victorian Government's experience in delivering complex major projects
       under the PPP model has shown projects are delivered on-time, to a high
       standard and in a cost effective way.

       The PPP framework has already proven successful with projects contracted to
       build hospitals, water treatment facilities, and transport developments in Victoria,
       saving millions of dollars.

       The Desalination Project PPP includes the construction and operation of the
       desalination plant, the 85 kilometre transfer pipeline to connect to Melbourne's
       existing water supplies, delivery of power supply for the project and the purchase
       of renewable energy credits.

       Combining the various key elements of the desalination plant project under the
       one delivery arrangement will best enable the private sector to deliver an
       innovative and value for money outcome for the community and water
       consumers. Allowing the private sector to manage the coordination of all facets of
       the project will also provide certainty of delivery of water.

       Expressions of Interest for project partners was released in June 2008, and will
       be followed by a Request for Proposal.

       In accordance with Partnerships Victoria policy, bids received in response to the
       proposals will be tested against the Government's quantitative benchmark, the
       Public Sector Comparator (PSC), and will also be required to meet public interest
       tests.

       Further information on the Partnerships Victoria policy can be obtained via the PV
       website ­ www.partnerships.vic.gov.au.




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