Information for developing a tender Marine aquaculture in i

© The State of Victoria, Department of Economic Development, Jobs, Transport and Resources, 2017. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Reproduction and the making available of this material for personal, in-house or non-commercial purposes is authorised, on condition that:  the copyright owner is acknowledged;  no official connection is claimed;  the material is made available without charge or at cost;  the material is not subject to inaccurate misleading or derogatory treatment. Requests for permission to reproduce or communicate this material in any way not permitted by this licence (or by the fair dealing provisions of the Copyright Act 1968) should be directed to the Copyright Officer, Fisheries Victoria*, P.O. Box 4440, , Victoria, 3001. Published by the Department of Economic Development, Jobs, Transport and Resources, Fisheries Victoria*, PO Box 4440, Melbourne Victoria 3001. Authorised by the Victorian Government, 1 Spring Street, Melbourne, 3000. ISBN 978-1-925629-22-4 (pdf/online) Disclaimer: This publication may be of assistance to you, but the State of Victoria and its employees do not guarantee that the publication is without flaw or is wholly appropriate for your particular purposes and therefore disclaims all liability for an error, loss or other consequence which may arise from you relying on any information in this publication. If you are in doubt seek independent legal advice. For other information contact the Customer Service Centre on 136 186 or http://agriculture.vic.gov.au/fisheries/aquaculture/allocation-of-australian-aquaculture-sites. For more information about the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) visit the website at www.http://agriculture.vic.gov.au or call the Customer Service Centre on 136 186

Information for developing a tender Marine aquaculture in Victoria ii Foreword

Executive Director, Fisheries Victoria* Marine aquaculture is one of Victoria’s most progressive and dynamic industries. The State boasts some of the world’s finest and most sought-after seafood, and has an excellent domestic and international reputation based on its reliable supply of quality produce, clean waterways and developed infrastructure. A cornerstone of growth in Victorian marine aquaculture is the development of 12 marine aquaculture fisheries reserves, as recommended by the Environment Conservation Council, in and around Bay, and Portland. These reserves provide considerable scope for industry expansion and market-driven investment in production of aquatic species. Port Phillip Bay and Western Port offer one of the best marine aquaculture opportunities in Australia; no other location has areas of water of such size and high quality so close to markets, labour and established infrastructure. The aquaculture sites to be offered for tender are at Pinnace Channel, Grassy Point, Kirk Point – Werribee, Bates Point, Flinders, Beaumaris and Dromana. Two additional ‘greenfield’ (or new) reserves at Portland and Point Lillias will be offered for tender at a later date. The Portland reserve provides an opportunity to farm the oceanic waters of Bass Strait. The Point Lillias reserve, a land-based site, adjacent to marines waters in the Geelong Arm provides opportunities for land-based marine farming. This allocation is realising the Victorian Government’s vision to develop an ecologically sustainable and economically viable marine aquaculture industry that provides a significant commercial supply of high quality seafood. Through the preparation of a management plan and the provision of Crown leases, the Victorian Government has consolidated the approvals process to enable commercial interests to farm these sites with ease and security of tenure. I welcome your interest in this exciting opportunity that will sustain and accelerate the growth of Victorian marine aquaculture now and into the future.

Travis Dowling Executive Director, Fisheries Victoria* Department of Economic Development, Jobs, Transport and Resources

Information for developing a tender Marine aquaculture in Victoria iii Information for developing a tender Marine aquaculture in Victoria iv Contents

Foreword ...... iii

Executive summary ...... 1

Purpose of this document ...... 2

Information for proponents ...... 2 How to participate in the tender ...... 2

Overview of Port Phillip Bay, Western Port, Portland and Point Lillias ...... 3 Port Phillip Bay and Western Port ...... 3 Melbourne ...... 3

Overview of aquaculture within Victoria ...... 3 Aquaculture in Port Phillip Bay and Western Port ...... 3 Aquaculture fisheries reserves ...... 4 Access to local and international markets ...... 5 Aquaculture Fisheries Reserve at Portland and Point Lillias ...... 6 Authorisations to conduct aquaculture ...... 7 Management plans ...... 8

The allocation process and timetable ...... 10 Sites available in the allocation ...... 10

The aquaculture fisheries reserves and sites available in this allocation ...... 12 Pinnace Channel Aquaculture Fisheries Reserve (PCAFR)...... 12 Bates Point Aquaculture Fisheries Reserve (BPAFR) ...... 13 Kirk Point - Werribee Aquaculture Fisheries Reserve (KPWAFR) ...... 14 Beaumaris Aquaculture Fisheries Reserve (BAFR) ...... 15 Flinders Aquaculture Fisheries Reserve (FAFR) ...... 16 Grassy Point Aquaculture Fisheries Reserve (GPAFR) ...... 17 Dromana Aquaculture Fisheries Reserve (DAFR) ...... 18

Shellfish Quality Assurance ...... 19

Summary of the allocation process ...... 20 Flow chart of the allocation process ...... 20

Information for developing a tender Marine aquaculture in Victoria v Allocation timetable ...... 21 Registration ...... 22 Tender Information ...... 22 Settlement and the issue of authorisations...... 22 *Victorian Fisheries Authority Act 2016 ...... 22

Other information of importance to proponents ...... 23

Contacts ...... 24

Tender Submission ...... 24

Disclaimer ...... 24

Appendix 1: Ports and infrastructure potentially available for industry to service the Reserves ...... 25

Appendix 2: The allocation process ...... 26 Tender submission for an aquaculture site ...... 26

Settlement and the issue of authorisations ...... 28

Appendix 3: Indicative starting bids ...... 30

Information for developing a tender Marine aquaculture in Victoria vi Executive summary

The Victorian Government will be allocating Crown lease sites within seven aquaculture fisheries reserves within Port Phillip Bay and Western Port in 2017. The opportunity for interested parties is within six aquaculture fisheries reserves in Port Phillip Bay and one in Western Port. Forty one Crown lease sites totalling up to 440 ha of Victoria’s high quality water will be on offer. Most of these areas have proven commercial production history. Interested parties are invited to apply for aquaculture sites through a streamlined process for State Government authorisations. Successful proponents will be awarded long-term registered Crown leases for 21 years under the Lands Act 1958, annual renewable aquaculture licences issued under the Fisheries Act 1995, and consent to use the coastal land under the Coastal Management Act 1995. The leases will be allocated through the standard government tender process. This Tender information for an aquaculture site contains information on the opportunity and the allocation process.

Information for developing a tender Marine aquaculture in Victoria 1 Purpose of this document

The purpose of this document is to provide proponents with general information to assist in the lodging of a tender including details on:  The conditions for participation in the tender,  An overview of Port Phillip Bay, Western Port, Portland and Point Lillias,  Aquaculture fisheries reserves,  The required authorisations to conduct aquaculture,  Management Plans,  The allocation process and tender timetable, and  The Victorian Shellfish Quality Assurance Program.

Information for proponents

How to participate in the tender This Package includes:  A copy of the proposed Crown lease;  Copies of relevant proposed aquaculture licences;  A copy of the consent under the Coastal Management Act 1995;  A copy of the Tender Terms and Conditions;  A form for completion of a development plan;  Information on the annual fees that will apply for both Crown leases and licences;  A declaration of acceptance of the terms and conditions of:  the allocation process and timetable;  the Crown lease;  the relevant aquaculture licence;  the consent under the Coastal Management Act 1995;  the Tender Terms and Conditions and the tender process; and  all disclaimers and waivers. Submitted tenders must be accepted as compliant with the relevant management plans and in accordance with the Fisheries Act 1995, the Lands Act 1958 and the Coastal Management Act 1995, and must have completed and signed the required declarations of acceptance of the terms and conditions of the required authorisations. A check list of requirements for your Tender is provided in the Tender information for an aquaculture site document provided in this package.

Information for developing a tender Marine aquaculture in Victoria 2 Overview of Port Phillip Bay,Western Port, Portland and Point Lillias

Port Phillip Bay and Western Port Covering 1,950 square kilometres, Port Phillip Bay is the entrance to Australia's busiest port, the Port of Melbourne, and is one of Victoria's most popular recreational destinations. Western Port is located nearby and east of Port Phillip Bay. Over 5 million people live around the shores of these bays, mainly in metropolitan Melbourne and the City of Greater Geelong.

Melbourne Melbourne, the capital of Victoria, is a hub of business, international trade, arts and entertainment, and sport. It Portland enjoys an international reputation as a growing and prospering cosmopolitan city. Melbourne is strategically located in the Asia-Pacific Figure 1. Port Phillip Bays location in Victoria region. Its central role in decision-making and coordination for Victoria is helping to build cooperative business and trade partnerships to attract research, development, innovation and international investment to the city. Melbourne offers an integrated network of road, rail, sea and air transport, giving businesses ready access to national and international markets. Melbourne International Airport is Australia’s largest 24- hour freight and passenger airport. It is centrally located, with easy access to the central business district and the bays. Major freight carriers operate dedicated services from Melbourne to Europe, Asia and North America. The airport handles over 350,000 metric tonnes of freight per annum, with ample capacity to expand. Air freight rates are competitive, making Melbourne a high-speed, low- cost base to access the region. Figure 2. Location of Port Phillip Bay and Western Port

Overview of aquaculture within Victoria The Victorian aquaculture industry was valued at more than A$37 million in 2014/15 and accounted for around 82 per cent of trout, 51 per cent of abalone and over 29 per cent of mussels produced in Australia. In 2014/15, aquaculture in Victoria directly provided over 460 jobs, and with an estimated downstream multiplier of 2.5 created more than 1000 jobs in regional areas. It is anticipated that in Victoria, industry growth in farm gate production value will approach $50 million after the implementation of the new marine aquaculture reserves, and completion of the proposed abalone and native finfish expansions.

Aquaculture in Port Phillip Bay and Western Port The aquaculture industry in Port Phillip Bay has been established for around 30 years with longline culture of blue mussels the predominant activity. The blue mussel is a filter feeding bivalve shellfish widely distributed throughout southern Australia. Victorian blue mussels are renowned for their tender flesh and delicious flavour. Similarly, aquaculture within Western Port is predominantly the culture of blue mussels.

Information for developing a tender Marine aquaculture in Victoria 3 In 2014/15, the Victorian mussel aquaculture industry, including Port Phillip Bay and Western Port, produced over 1014 tonnes of mussels worth more than $3.0 million and is one of the largest mussel production areas in Australia. Mussel farming was largely based on natural settlement of spat, with collection undertaken in the bay during winter. In 2008, hatchery production of mussel spat in Victoria was undertaken for the first time and has developed into a commercial operation producing over 500 million mussel spat per annum. Most product is harvested for human consumption and sold live on the domestic market and exported to a number of locations in Asia. However, further processing and value-adding, including smoked, marinated and vacuum packed product is being undertaken. The new sites at the aquaculture fisheries reserves provide a range of growing locations and conditions allowing for extended availability of marketable mussels. Diversity of sites combined with availability of hatchery mussel spat now allows for year round availability of mussels.

Aquaculture fisheries reserves The Port Phillip Bay and Western Port Reserves hold 969 hectares of offshore sites suitable for aquaculture, with 469 hectares leased to existing licence holders. A further 440 hectares is proposed to be made available for tender in 2017. These reserves are used to farm blue mussel, and the experimental culture of native oysters, abalone and scallops. This allocation includes 41 leases within seven reserves across 440 hectares of high quality water. Management plans provide the operational rules for the aquaculture fisheries reserves. Over the next few years sites not allocated in 2017 will be allocated through a standard tender process, based on demand.

Number of sites to be Total area per Aquaculture Fisheries Reserve Area per site (ha) allocated reserve (ha) Pinnace Channel 13 27 351 Bates Point 2 5 10 Kirk Point – Werribee 10 2.5 25 Beaumaris 2 5 10 Flinders 4 3 12 Grassy Point 8 3 24 Dromana 2 4 8 Total 41 440

Successful proponents will be offered the security of a 21-year registered Crown lease over the site. These aquaculture fisheries reserves have the potential to support a significant expansion of the existing marine aquaculture sectors within Victoria; in particular, blue mussels and other shellfish. Further information is provided in the relevant section of this document and within the relevant management plan.

Information for developing a tender Marine aquaculture in Victoria 4

Figure 3. Aquaculture fisheries reserves within Port Phillip Bay and Western Port.

Access to local and international markets The Reserves are serviced from existing port infrastructure. The Portarlington Safe Harbour development, a key election commitment of the Victorian Government, is expected to be completed in 2017. This development will provide a significant boost to the number of available commercial berthing facilities allowing for new investment in the Reserves. For a list of ports with infrastructure potentially available to industry refer to Appendix 1. The distances of these ports from each reserve are provided in the relevant management plans available at www.tenders.vic.gov.au. Additional port facilities may be available in the cities of Melbourne, Geelong, Hastings and Portland. All the Reserves, are located close to the major domestic market of Melbourne and within easy access to the Sydney market, with a combined population in excess of ten million. Melbourne is located at the northern end of Port Phillip Bay (Figure 1) and is accessible by road from each of the ports. Sydney is one hour by air and eight to ten hours by road from Melbourne.

Information for developing a tender Marine aquaculture in Victoria 5 Several airports are potentially available for the distribution of product domestically and internationally. Melbourne International Airport located 20 kilometres north west of Melbourne has multiple daily flights available for rapid transport of product to domestic cities, major Asian and other international destinations. Essendon and Avalon airports are also potentially available for freight transportation. Port Phillip Bay is also one of Australia’s largest ports for national and international shipping. The Port of Melbourne provides speedy, price-competitive international shipping services. Handling over 25 million metric tonnes per annum, it is Australia's largest and most modern container handling port, operating 24 hours a day and handling 40 per cent of Australia's overseas container trade. The Port of Geelong handles the sixth largest tonnage in Australia and plays a key role in supporting the agricultural regions of Victoria.

Aquaculture Fisheries Reserve at Portland and Point Lillias The Portland and Point Lillias aquaculture fisheries reserves, will not be tendered in this current allocation, however, the Victorian Government is seeking to determine the level of interest in these two unique reserves to help prioritise future allocations. Potential investors are asked to contact Fisheries Victoria* to express interest in these reserves during this current allocation. The Portland aquaculture fisheries reserve (200 hectares) is located offshore of Portland in western Victoria. The reserve is a greenfield site (new) and will require innovative solutions to establish a successful operation in the oceanic conditions of Bass Straight. The Portland reserve will be serviced from the existing port infrastructure at the Local Port of Portland. The Reserve is located close to the Port of Portland, which is located four hours by road from the major domestic market of Melbourne. The Point Lillias aquaculture fisheries reserve, a 39 hectare land-based site, is located adjacent to the Avalon Airport and is close to Geelong and Melbourne markets. The reserve is a greenfield site (new) and abuts the Avalon aquaculture fisheries reserve, a land based reserve, and is 0.7km from the Bates Point aquaculture fisheries reserve.

Figure 4. Aquaculture fisheries reserve at Portland Western Victoria.

Information for developing a tender Marine aquaculture in Victoria 6

Figure 5. Aquaculture fisheries reserve at Point Lillias.

Authorisations to conduct aquaculture Three authorisations are required to conduct aquaculture within the Reserves:  a Crown lease issued under the Land Act 1958;  an aquaculture licence issued under the Fisheries Act 1995; and  consent under the Coastal Management Act 1995. The Victoria Government aims to provide proponents with a straightforward process to obtain sites within the Reserves and undertake aquaculture activities. Successful applicants will require a Crown lease, coastal consent and an aquaculture licence. Once these three authorisations have been obtained, successful proponents may begin farming in accordance with the relevant management plan and authorisations. Crown leases Crown leases for marine aquaculture provide the right of exclusive occupancy to the lease site. Crown leases will be issued for 21 years and will be registered under the Lands Act 1958. Further information regarding Crown leases for marine aquaculture is provided at www.tenders.vic.gov.au. Aquaculture licences Aquaculture licences will provide the authority to conduct aquaculture activity within the site. Conditions on aquaculture licences will specify the species of fish (as defined under the Fisheries Act 1995), the area, the licence period (generally 12 months), harvesting restrictions, operational management controls, development rates and environmental monitoring requirements. Conditions on an aquaculture licence can be varied under the Fisheries Act 1995.

Information for developing a tender Marine aquaculture in Victoria 7 Aquaculture licences of three classes are appropriate to be issued for sites within the Reserves:  Aquaculture (Crown Land - Bivalve Shellfish) Licence: issued to licence holders seeking to grow bivalve shellfish for the purpose of human consumption.  Aquaculture (Crown Land - Abalone) Licence: issued to licence holders seeking to grow abalone.  Aquaculture (Crown Land - Offshore) Licence: issued to licence holders seeking to grow bivalve shellfish for spat or bait or to grow species other than abalone. Under the Fisheries Act 1995, an aquaculture licence may only be issued to an individual, a single corporation or a co- operative. The individual must be an Australian resident. Under the Fisheries Act 1995, a corporation is defined as a corporation with a registered office in Australia that holds an Australian Company Number. Under the Fisheries Act 1995, a co-operative means a body registered as a co-operative: (a) under the Co-operatives Act 1996; or (b) under an equivalent law of another Australian jurisdiction. Information on starting a business in Victoria is provided at www.business.vic.gov.au. Under the Fisheries Act 1995, an aquaculture licence can only be issued to those that satisfy the fit and proper person provisions of that Act. As part of the Fit and Proper Person assessment, applicants (for companies - each director) are required to provide a National Police Certificate with your application. Applicants are advised to visit www.police.vic.gov.au to procure the relevant information and application forms. Where the proposed applicant is a company, this check must be undertaken on all office holders of the company and the company must provide a Company Statement - Extract of particulars. Information about the Company Statement - Extract of particulars under the Corporations Act 2001 can be found at www.asc.gov.au. Further information on aquaculture licences is provided at www.tenders.vic.gov.au. Under section 61 of the Fisheries Act 1995, the Secretary, Department of Economic Development, Jobs, Transport and Resources*, has established eligibility criteria that must be met before the approval of the issue, renewal or transfer of an aquaculture fishery licence. Such eligibility criteria applies where an aquaculture licence relates to a specified area within an aquaculture fisheries reserve, declared under section 88(1) of the Act. Under eligibility criteria, an applicant for an aquaculture licence for the specified area for which the licence is to be issued, renewed or transferred must: (i) have a lease of Crown land under section 134 of the Land Act 1958; or (ii) have a sub-lease to a lease of Crown land under section 134 of the Land Act 1958; or (iii) have the written consent of the holder of a lease of Crown land under section 134 of the Land Act 1958; and (iv) sign a deed poll that provides indemnity to the State Government of Victoria in a form required by the State consistent with the warranty and indemnity provisions specified in the Crown lease. The applicant is not required to sign a deed poll if the application is the tenant of the site or the subject of the application for the aquaculture licence under a lease from the Crown under section 134 of the Land Act 1958. Coastal consent Consent under the Coastal Management Act 1995 authorises the use and development of coastal Crown land. Consent will be provided to the lessee for the site specified on the lease for the purpose of aquaculture consistent with the management plan. Other authorisations In some cases additional authorisations may be required prior to undertaking the proposed aquaculture activity. Information is provided in the relevant management plan available at www.tenders.vic.gov.au as in relation to the possible need for additional authorisations.

Management plans The Reserves are managed in accordance with the relevant management plans (the Plans) declared under the Fisheries Act 1995. The Plans provide the operational rules for the Reserves to facilitate ecologically sustainable aquaculture development and provide arrangements for government agencies to coordinate their individual statutory responsibilities. The requirements of the Plans will be reflected in Crown leases and aquaculture licences. The Plans also provide a detailed description of the attributes of the relevant reserves.

Information for developing a tender Marine aquaculture in Victoria 8 The Plans can be found on the website at www.tenders.vic.gov.au and are as follows:  The Pinnace Channel Aquaculture Fisheries Reserve Management Plan has been declared in respect of the Pinnace Channel Aquaculture Fisheries Reserve;  The Geelong Arm Aquaculture Fisheries Reserves Management Plan has been declared in respect of the 1. Grassy Point Aquaculture Fisheries Reserve; 2. Kirk Point - Werribee Aquaculture Fisheries Reserve; and 3. Bates Point Aquaculture Fisheries Reserve;  The Eastern Port Phillip Bay Aquaculture Fisheries Reserves Management Plan has been declared in respect of the 1. Beaumaris Aquaculture Fisheries Reserve; and 2. Dromana Aquaculture Fisheries Reserve;  The Flinders Aquaculture Fisheries Reserve Management Plan has been declared in respect of the Flinders Aquaculture Fisheries Reserve.  The Portland Aquaculture Fisheries Reserve Management Plan has been declared in respect of the Portland Aquaculture Fisheries Reserve.  The Point Lillias Aquaculture Fisheries Reserve Management Plan is under development.

Information for developing a tender Marine aquaculture in Victoria 9 The allocation process and timetable

This section contains:

Sites available in this allocation ...... 8

The aquaculture fisheries reserves and sites available in this allocation ...... 10

Shellfish Quality Assurance ...... 17

Summary of the allocation process ...... 18

Sites available in the allocation

Pinnace Channel Aquaculture Fisheries Reserve Bates Point Aquaculture Fisheries Reserve Parish of Nepean, County of Mornington: Parish of Woornyalook, County of Grant:

 Crown land allotment number 2014 (27ha)  Crown land allotment number 2004 (5.07ha)

 Crown land allotment number 2015 (27ha)  Crown land allotment number 2005 (5.07ha)

 Crown land allotment number 2016 (27ha) Refer Figure 7: Map showing sites to be offered within the Bates Point Aquaculture Fisheries Reserve  Crown land allotment number 2017 (27ha)

 Crown land allotment number 2018 (27ha) Kirk Point - Werribee Aquaculture Fisheries Reserve  Crown land allotment number 2020 (27ha) Parish of Murtcaim, County of Grant:

 Crown land allotment number 2022 (27ha)  Crown land allotment number 2005 (2.48ha)

 Crown land allotment number 2023 (27ha)  Crown land allotment number 2007 (2.48ha)

 Crown land allotment number 2024 (27ha)  Crown land allotment number 2009 (2.48ha)

 Crown land allotment number 2025 (27ha)  Crown land allotment number 2010 (2.48ha)

 Crown land allotment number 2026 (27ha)  Crown land allotment number 2011 (2.48ha)

 Crown land allotment number 2027 (27ha)  Crown land allotment number 2019 (2.48ha)

 Crown land allotment number 2028 (27ha)  Crown land allotment number 2020 (2.48ha)

Refer Figure 6: Map showing sites to be offered within  Crown land allotment number 2021 (2.48ha) the Pinnace Channel Aquaculture Fisheries Reserve  Crown land allotment number 2025 (2.48ha)

 Crown land allotment number 2027 (2.48ha)

Refer Figure 8: Map showing sites to be offered within the Kirk Point - Werribee Aquaculture Fisheries Reserve

Information for developing a tender Marine aquaculture in Victoria 10 Beaumaris Aquaculture Fisheries Reserve Grassy Point Aquaculture Fisheries Reserve County of Bourke, Parish of Moorabbin: County of Grant, Parish of Paywit:

 Crown land allotment number 2016 (5.07ha)  Crown land allotment number 2029 (3ha)

 Crown land allotment number 2017 (5.07ha)  Crown land allotment number 2032 (3ha)

Refer Figure 9: Map showing sites to be offered within  Crown land allotment number 2034 (3ha) the Beaumaris Aquaculture Fisheries Reserve  Crown land allotment number 2035 (3ha)

 Crown land allotment number 2036 (3ha) Flinders Aquaculture Fisheries Reserve County of Mornington, Parish of Flinders:  Crown land allotment number 2037 (3ha)

 Crown land allotment number 2010 (3ha)  Crown land allotment number 2038 (3ha)

 Crown land allotment number 2024 (3ha)  Crown land allotment number 2039 (3ha)

 Crown land allotment number 2026 (3ha) Refer Figure 11: Map showing sites to be offered within the Grassy Point Aquaculture Fisheries Reserve  Crown land allotment number 2029 (3ha)

Refer Figure 10: Map showing sites to be offered within Dromana Aquaculture Fisheries Reserve the Flinders Aquaculture Fisheries Reserve County of Mornington, Parish of Kangerong:

 Crown land allotment number 2015 (3.94ha)

 Crown land allotment number 2017 (3.94ha) Refer Figure 12: Map showing sites to be offered within the Dromana Aquaculture Fisheries Reserve

Information for developing a tender Marine aquaculture in Victoria 11 The aquaculture fisheries reserves and sites available in this allocation

Pinnace Channel Aquaculture Fisheries Reserve (PCAFR) Location: Either side of the Pinnace Channel where it flows north from the Great Sands area in southern Port Phillip Bay (Figure 3). Total area: The area consists of two 500 hectare blocks (approximately 1.7 km by 2.8 km each) consisting of sixteen sites of 27 ha and a 5 ha research and development site. Sites available in this allocation: Thirteen (13) sites will be available in this allocation (Figure 6). Site size: 27 ha per site. Depth: 15 – 30 metres. Currents: 0.10 – 0.25 metres per second.

2013 27ha

2012 27ha

2019 27ha

Figure 6. Pinnace Channel Aquaculture Fisheries Reserve Water quality: maintained by tidal exchanges between Bass Strait and Port Phillip Bay and distant to land-based pollution sources. Southern Port Phillip Bay does not have high nutrient inputs.

Information for developing a tender Marine aquaculture in Victoria 12 In regard to shellfish quality assurance, refer to the quality assurance section of this document and the Pinnace Channel Aquaculture Fisheries Reserve Management Plan. More information: The attributes of the PCAFR are described in the Pinnace Channel Aquaculture Fisheries Reserve Management Plan, and within other supporting documentation available at www.tenders.vic.gov.au. Mussels have been farmers on sites 2012-2013 since 2006.

Bates Point Aquaculture Fisheries Reserve (BPAFR) Location: Approximately 0.7 km offshore from Point Lillias (Figure 3). Total area: 25 ha (approximately 0.5km by 0.5km) in total, consisting of four sites of 5.07 ha. Sites available in this allocation: Two (2) sites are available in this allocation (Figure 7). Site size: 5.07 ha. Depth: 7 – 9 metres. Currents: 0.04 – 0.16 metres per second.

2003 5.07ha

Existing industry or not for allocation

2006 5.07ha

Figure 7. Bates Point Aquaculture Fisheries Reserve

Water quality: No water quality data specific to the reserve is available. More information: The attributes of the BPAFR are described in the Geelong Arm Aquaculture Fisheries Reserves Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 13 Kirk Point - Werribee Aquaculture Fisheries Reserve (KPWAFR) Location: Approximately 5 km offshore from the point at which the Little River enters Port Phillip Bay (Figure 3). Total area: 200 ha (approximately 2.0 km by 1.0 km), consisting of 11 existing spat collection sites totalling 27.28 ha, one research and development site of 2.48 ha and 13 greenfield sites. Sites available in this allocation: Ten (10) greenfield sites will be available in this allocation (Figure 8). Site size: 2.48 ha. Depth: 6 – 10 metres. Currents: 0.08 to 0.20 metres per second.

2006 2.48ha

2016 2.48ha

2026 2.48ha

Figure 8. Kirk Point - Werribee Aquaculture Fisheries Reserve

Water quality: The closest notable point source discharges are the Western Treatment Plant (WTP) and Little River located approximately 5.5 km north of the KPWAFR. More information: The KPWAFR is used by the existing industry for natural collection of spat and as a nursery for hatchery produced mussel spat. The attributes of the KPWAFR are described in the Geelong Arm Aquaculture Fisheries Reserves Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 14 Beaumaris Aquaculture Fisheries Reserve (BAFR) Location: In Beaumaris Bay, approximately 0.64 km offshore from Table Rock Point (Figure 3). Total area: 25 ha (approximately 0.5 km by 0.5 km), consisting of 2 existing spat collection sites totalling 10.14 ha and two greenfield sites. Sites available in this allocation: Two (2) of these sites will be available in this allocation (Figure 9). Site size: 5.07 ha. Depth: 5 – 7 metres. Currents: 0.02 to 0.12 metres per second.

2015 5.07ha

2018 5.07ha

Figure 9. Beaumaris Aquaculture Fisheries Reserve

Water quality: The BAFR is used by existing industry for spat collection and for the grow-out of mussels for bait. Freshwater discharge, from local stormwater drains, may reduce water quality during rainfall events. The adjacent urban developments are sewered, but there are numerous stormwater drains along the surrounding foreshore. Marine shellfish contamination events are commonly rainfall driven. The mean annual rainfall for the area is 689 mm. In regard to shellfish quality assurance, refer to quality assurance section of this document and the Eastern Port Phillip Bay Aquaculture Fisheries Reserve Management Plan. More information: The attributes of the BAFR are described in the Eastern Port Phillip Bay Aquaculture Fisheries Reserves Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 15 Flinders Aquaculture Fisheries Reserve (FAFR) Location: The harvesting area is approximately 0.3 km offshore (east) from the township of Flinders on the (Figure 3). Total area: 440 ha comprising an established harvesting area. Sites available in phase one: Four (4) sites will be available in this allocation (Figure 10). Site size: 3 ha. Depth: 7 – 11 metres. Currents: Studies indicate about 0.6 metres per second mid-water in spring tide conditions.

2032 4ha

2028 7ha

Existing industry or 2013 not for allocation 7 ha

Figure 10. Flinders Aquaculture Fisheries Reserve

Water quality: The FAFR is subject to daily tidal flushing that generates considerable mixing and exchange of water with both Western Port and Bass Strait. More information: In regard to shellfish quality assurance, refer to quality assurance section of this document and the Flinders Aquaculture Fisheries Reserve Management Plan. The attributes of the FAFR are described in the Flinders Aquaculture Fisheries Reserve Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 16 Grassy Point Aquaculture Fisheries Reserve (GPAFR) Location: Approximately 0.6km offshore from Bellarine Peninsula (Figure 3). Total area: 252 ha (approximately 2.2km by 1.1km) in total, consisting of 24 sites of 3.0 ha. Sites available in this allocation: Eight (8) sites are available in this allocation (Figure 11). Site size: 3.0 ha. Depth: 7.5 – 14 metres. Currents: 0.08 – 0.20 metres per second.

Existing industry or not for allocation

2033 3 ha

Figure 11. Grassy Point Aquaculture Fisheries Reserve

Water quality: Maintained by tidal exchanges between Bass Straight and Port Phillip Bay. No notable freshwater discharges occur from natural waterways near the GPAFR. The adjacent urban developments are sewered, marine shellfish contamination events, though rare, are usually rainfall driven. The mean rainfall for the GPAFR is 610mm. More information: The attributes of the GPAFR are described in the Geelong Arm Aquaculture Fisheries Reserves Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 17 Dromana Aquaculture Fisheries Reserve (DAFR) Location: The DAFR is located approximately 0.78 km offshore from Martha Point on the Mornington Peninsula (Figure 3). Total area: 20 ha (approximately 0.45km by 0.45km) in total, consisting of four sites of ~3.94 ha. Sites available in this allocation: Two (2) sites are available in this allocation (Figure 12). Site size: 3.94 ha. Depth: 9 – 11 metres. Currents: 0.04 – 0.18 metres per second.

Existing industry or not for allocation 2014 3.93ha

Figure 12. Dromana Aquaculture Fisheries Reserve

Water quality: No notable freshwater discharges from natural waterways presently occur near the DAFR. The adjacent urban developments are sewered. Marine shellfish contamination events are commonly rainfall driven. There are some small stormwater drains along the adjacent shoreline. The Martha Cove Marina, located nearby, has not caused any significant water quality issues since its completion. More information: The attributes of the DAFR are described in the Eastern Port Phillip Bay Aquaculture Fisheries Reserves Management Plan and within other supporting documentation available at www.tenders.vic.gov.au.

Information for developing a tender Marine aquaculture in Victoria 18 Shellfish Quality Assurance The Victorian Shellfish Quality Assurance Program (VSQAP) is the Victorian implementation of the Australian Shellfish Quality Assurance Program (ASQAP), an internationally recognised program, protecting human health through the active monitoring of shellfish harvesting areas (fisheries reserves). Aquaculture fisheries reserves compliant with the ASQAP will be accredited for the harvest of product for export. Operators harvesting bivalve shellfish for human consumption must hold an aquaculture bivalve shellfish licence, contribute to the costs of the VSQAP and hold a PrimeSafe licence. All bivalve shellfish harvested for human consumption must be compliant with the VSQAP, the ASQAP and their PrimeSafe licence. The VSQAP is an industry run program with oversight by Fisheries Victoria*. Each Harvesting Area (Reserve) has a coordinator that manages the monitoring of water and shellfish at the reserve, collation of data and development of annual and triennial reports. Industry is responsible for funding the VSQAP through fees paid to the Harvest Area Coordinators. Fisheries Victoria* provides advice, oversight of the program and assists with export certification. The Pinnace Channel Aquaculture Fisheries Reserve (PCAFR) The PCAFR VSQAP commenced in November 2003 and continues to retain an “Approved Classification” and is approved for export. This program is funded and managed by industry with government oversight. Data and reports for this Reserve are available, for a fee, from the local Harvest Area Coordinator. The Grassy Point Aquaculture Fisheries Reserve (GPAFR) The GPAFR VSQAP commenced in July 1987 and currently holds an “Approved Classification” and is approved for export. This program is funded and managed by industry with government oversight. Data and reports for this Reserve are available, for a fee, from the local Harvest Area Coordinator. The Dromana Aquaculture Fisheries Reserve (DAFR) The DAFR VSQAP commenced in July 1987 and currently holds a “Conditionally Approved Classification”. This program is funded and managed by industry with government oversight. Data and reports for this Reserve are available, for a fee, from the local Harvest Area Coordinator. The Flinders Aquaculture Fisheries Reserve (FAFR) The FAFR VSQAP commenced in July 1987 and currently holds a “Conditionally Approved Classification”. This program is funded and managed by industry with government oversight. Data and reports for this Reserve are available, for a fee, from the local Harvest Area Coordinator. The Kirk Point - Werribee Aquaculture Fisheries Reserve (KPWAFR) The KPWAFR is used for spat collection and nursery culture of hatchery spat by the existing industry and is not monitored under the VSQAP. The Beaumaris Aquaculture Fisheries Reserve (BAFR) The BAFR is used for spat collection and has been used for grow-out of shellfish for bait and is not monitored under the VSQAP. The BAFR was previously monitored under the VSQAP. The proximity of the site to stormwater drains resulted in a rainfall trigger of only 3.4 mm. The BAFR was to be classified as ‘Conditionally restricted’ under the ASQAP, and as a result the VSQAP was discontinued. The Bates Point The BPAFR is used for spat collection and nursery culture of hatchery spat by the existing industry and is not monitored under the VSQAP.

Information for developing a tender Marine aquaculture in Victoria 19 Summary of the allocation process The allocation process consists of a number of stages that proponents must complete before, and after, the tender period in 2017 before a Crown lease, coastal consent and an aquaculture licence can be issued. The stages are:  Registration at www.tenders.vic.gov.au;  Tender period; and  Settlement and issue of authorisations. The following section explains each stage. For further detail about the allocation and tender process refer to Appendix 2.

Flow chart of the allocation process

Phase 1 April 2017

Announcement re: allocation of 7 areas Tenders Vic Website uploaded with information Opportunity communicated through various means Direct email to investors

Phase 2 May 2017

Tender opens Investors register at Tenders Vic website

One opportunity Phase 3 to provide July 2017 additional information for Assess tenders non-compliant Assign rights for leases tender (excludes Issue Fisheries licences any change to bid price) Work with Parks Vic on berthing allocation

Phase 4 July - August 2017

Settlement process Issue of Crown lease and Aquaculture licence Communication of results of allocation.

Information for developing a tender Marine aquaculture in Victoria 20 Allocation timetable a) Phase 1 - Endorsement of water allocation and provision of tender information and requirements i) Develop investor awareness and stimulate interest through: media releases, media stories, direct email, meetings with local industry and websites. ii) Upload information to www.tenders.vic.gov.au web site with investor information, including: (1) Tender information (2) Tender submission – (a) Crown lease – the security of occupational rights, fee schedule, clauses, business planning requirements, (b) Fisheries licence - fees, licence conditions, development criteria and fit & proper requirements (c) Competitive advantages, reserves water quality, management plans, environmental data, supporting infrastructure, environmental management, (3) Berth allocation options – Parks Victoria

b) Phase 2 – Tender Advertised i) Tender to be advertised as per standard government process, ii) Parties who register at www.tenders.vic.gov.au will be informed by email when tender is advertised and updates to tender.

c) Phase 3 - Tenders Assessed and Sites Awarded i) Receipt of submitted tenders by close of business (5:00pm) on Monday 3 July 2017. ii) Tenders reviewed by Assessment Panel (the Panel), iii) Tenderers maybe provided with an additional five days to provide updated information on tender to meet minimum requirements, though no change in bid price allowed, iv) The Panel assess tenders and winning tenderers determined. v) Sites awarded and winning tenderers provided with: (1) Letter advising of the right to take up a lease, (2) Application for Fisheries Licence, (3) Letter advising to contact Parks Victoria regarding access to berth, (4) Successful Bidders pay tender bid and the relevant application fees , levies and charges and fulfil all other settlement requirements. Following this the Crown lease(s), consent under the Coastal Management Act 1995, and an aquaculture licence(s) will be issued.

d) Phase 4 – Public notification of successful tenderers i) Communication regarding successful allocation.

Variation of timetable Disclaimer: DEDJTR reserves the right to vary the above schedule. In the event of such variation, DEDJTR undertakes to provide notification to proponents registered on the Tender Vic web site. of Interest.

Information for developing a tender Marine aquaculture in Victoria 21 Registration Proponents must register at www.tenders.vic.gov.au to receive email notification of tender opening.

Tender Information Tender information and associated documentation will be available at www.tenders.vic.gov. Proponents wishing to participate in the tender will need to read the Tender information for an aquaculture site and the Tender submission for an aquaculture site, which includes the proposed authorisations and terms and conditions, and complete the following:  a Development Plan on the form provided;  a declaration (on the attached form) of acceptance of the terms and conditions of:  the allocation process and timetable;  the Crown lease;  the relevant aquaculture licence;  the consent under the Coastal Management Act 1995;  the Tender Terms and Conditions and the Tender process; and  all disclaimers and waivers. Proponents wishing to participate in the tender must submit the completed Tender by 5.00pm AEST on Monday 3 July 2017 at www.tenders.vic.gov.au:

Settlement and the issue of authorisations On or before the settlement date, successful tenderers will be notified of settlement dates and the formal settlement procedure. Successful tenderers will be required to publish a notice of the proposed issue of the Crown lease in the Victoria Government Gazette and a daily Victorian newspaper. Successful tenderers will be required to sign copies of the Crown lease in the presence of the Minister or Minister's delegate. The Department of Environment, Land, Water and Planning will arrange for each Crown lease to be signed and registered. Following completion of settlement, the Department of Environment, Land , Water and Planning will provide the registered duplicate of each Crown lease to Successful tenderers.

*Victorian Fisheries Authority Act 2016 From the commencement of the Victorian Fisheries Authority Act 2016 (anticipated to commence on 1 July 2017), many of the functions of the Secretary to the Department will be transferred to and administered through the newly created Victorian Fisheries Authority.

Information for developing a tender Marine aquaculture in Victoria 22 Other information of importance to proponents

The following items should be considered by the Proponent prior to submitting a Tender. The Victorian Government provides no warranties in regard to these items. Critical ecosystem components and current or potential threats Sites to be offered all differ in their history and degree of marine farming success. Port Phillip Bay and Western Port are dynamic and self-sustaining ecosystems subject to the vagaries of nature. Port Phillip Bay and Western Port are utilised for a number of anthropogenic activities including recreational fishing and commercial shipping. The shores around Port Phillip Bay and Western Port and the associated catchments are sites of significant urban development, and rural and industrial activities. All these activities may pose a potential risk to aquaculture development within Port Phillip Bay and Western Port. The government does not expressly or impliedly warrant that the Reserves are now or will remain suitable or adequate for all or any of the purposes of the Lessee and all warranties (if any) as to the suitability and adequateness of the Reserves that might otherwise be implied are hereby expressly excluded. Native title At the time of publication no native title claims have been lodged or are pending a decision with respect to the Reserves. Although proponents should note that it remains possible that such claims can be made in the future, this should be viewed in the context of the rigour of the tests that the Native Title Act 1993 requires to be met in order to establish native title. Impacts of other users The Victorian Government undertakes routine channel deepening across Port Phillip Bay and Western Port to facilitate commercial shipping. These activities may directly or indirectly impact aquaculture within the Reserves. Bidders are responsible for ensuring they are appropriately informed about channel deepening activities. Spat availability Mussel farming in Victoria is predominantly based on hatchery produced spat, however, prior to 2008 the industry relied on natural settlement. Spat collection may be undertaken at any authorised site. Natural spat fall within Port Phillip Bay and Western Port may be variable. Sourcing of spat is the responsibility of the mussel farmer. Port infrastructure The Reserves will be serviced from existing port infrastructure and additional berthing facilities will be made available by Parks Victoria at the Portarlington Safe Harbour under construction. It is the responsibility of the proponent to seek appropriate available infrastructure from which they can service their site. The government does not expressly or impliedly warrant that current port infrastructure is now or will remain suitable or adequate for all or any of the purposes of the Lessee and all warranties (if any) as to the suitability and adequateness of existing port infrastructure that might otherwise be implied should be expressly negatived.

Information for developing a tender Marine aquaculture in Victoria 23 Contacts

During the tender period, all enquires are to be directed to www.tenders.vic.gov.au. For additional information prior to the tender opening direct enquiries to: Phone: +61 3 5258-0218 Email: [email protected]

Tender Submission

Please register and submit tenders at www.tenders.vic.gov.au prior to the closure date of Monday 3 July 2017. Tenders must be received at www.tenders.vic.gov.au by 5:00pm AEST on Monday 3 July 2017.

Disclaimer

The State of Victoria reserves the right to change the requirements of this Package or any document referred to or accompanying this Package and the timetable of the tender process. In such a case the State of Victoria will make every effort to ensure all tenderers are informed of any relevant changes prior to the Tender close.

Information for developing a tender Marine aquaculture in Victoria 24 Appendix 1: Ports and infrastructure potentially available for industry to service the Reserves

Servicing Port Distance (direct, km) Vehicle access Mooring Loading Infrastructure PCAFR BPAFR GPAFR CSAFR KWAFR DAFR BAFR FAFR PAFR PLAFR Clifton Springs - 12.0 8.0 1.5 11.0 - - - - - No Yes No

Dromana - - - - - 3 37 - - - Parks Victoria only No No

Flinders ------1 - - Yes Yes -

Geelong - 8.3 27.5 17.3 25.0 64 63 - - 7.5 Yes Yes Yes

Yes, from Mordialloc - - - - - 35 3 - - - Yes Yes Mordialloc Creek

Mornington 16.8 - - - - 9.5 25 - - - Yes Yes No

Portarlington 24.1 18.3 1.0 7.2 6.0 34 35 - - 18.6 Yes Yes Yes

Portsea 12.1 ------Parks Victoria only Yes No

Queenscliff 14.1 - - - - 27 44 - - Yes Yes Yes Yes, Rosebud 7.4 - - - - 8 40 - - - Yes No load restrictions Yes, Rye 8.3 - - - - 15 45 - - - No No load restrictions Yes, Sorrento 11.1 - - - - 20 47 - - - Yes No load restrictions St. Leonards 12.9 27.2 6.3 16.2 14.5 - - - - - Yes Yes No Port of ------3 - Yes Yes Yes Portland

Note: PCAFR is Pinnace Channel Aquaculture Fisheries Reserve; BPAFR is Bates Point Aquaculture Fisheries Reserve; GPAFR is Grassy Point Aquaculture Fisheries Reserve; CSAFR is Clifton Springs Aquaculture Fisheries Reserve; KWAFR is Kirk Point - Werribee Aquaculture Fisheries Reserve; DAFR is Dromana Aquaculture Fisheries Reserve; MMAFR is Mount Martha Aquaculture Fisheries Reserve; BAFR is Beaumaris Aquaculture Fisheries Reserve; FAFR is Flinders Aquaculture Fisheries Reserve; PAFR is Portland Aquaculture Fisheries Reserve; PLAFR is Point Lillias Aquaculture Fisheries Reserve.

Information for developing a tender Marine aquaculture in Victoria 25 Appendix 2: The allocation process

Tender submission for an aquaculture site The Tender submission for an aquaculture site (Tender Submission) will be available at the www.tenders.vic.gov.au web site to all parties who have registered. Once proponents have downloaded and read the Tender Submission, they should complete and upload the following documents to the tenders.vic.gov.au web site. The documents must be uploaded by no later than 5:00 p.m. AEST on Monday 3 July 2017.

What needs to be included in your Tender Submission Proponents wishing to participate in the tender will need to read the copies of authorisations and terms and conditions and complete the following:  a tender price (GST inclusive) for the Crown lease for 21 years – payable annually at 1/21st of the tender price (on the form provided);  a Development Plan on the form provided;  a declaration (on the attached form) of acceptance of the terms and conditions of:  the allocation process and timetable;  the Crown lease;  the relevant aquaculture licence;  the consent under the Coastal Management Act 1995;  the Tender Terms and Conditions:  all disclaimers and waivers.

Assessment of Tender Submission including Development Plans The assessment of Tender Submissions will be undertaken by an Assessment Panel (the Panel). The role of the Panel is to provide advice to the delegate of the Secretary DEDJTR* on the Tender Submissions including the Development Plans submitted in respect of Crown lease sites for aquaculture. The delegate of the Secretary DEDJTR* will approve or not approve your Tender Submissions after consideration of advice from the Panel. Membership of the Panel will be independent from all tender participants and will include three members experienced in finance, law and aquaculture. The Panel assessment requires that your Tender Submission satisfies the requirements of the Crown Lands Act 1958, the Fisheries Act 1995, the Coastal Management Act 1995, is compliant with the relevant management plan and that the proponent agrees with the Terms and Conditions of the proposed authorisations and the Tender Terms and Conditions. The Panel may seek additional information to clarify applicant information, supporting documentation and development plan. You will be given one opportunity to provide this supplementary information for your Tender Submission to ensure its compliance. Changes to any bid price in your Tender Submission are not permitted and will not be accepted by the Panel. If your Development Plan is non-compliant after resubmission or you fail to provide additional information by the required time, your Tender Submissions will not be approved and will not be included in the allocation process.

Information for developing a tender Marine aquaculture in Victoria 26 To gain approval of your Tender Submission and Development Plan by the Panel, the proponent must satisfy the following criteria:  That the Tender Submission is assessed by the Panel that it is not a “Late submission”;  That the proponent has fulfilled all the requirements of the Tender Submission;  That the proponent satisfies the fit and proper person provisions under the Fisheries Act 1995 as assessed by the Secretary, DEDJTR or delegate.  That the entity that is applying for an aquaculture licence is a natural person, a co-operative or a company and an Australian resident and otherwise complies with the Fisheries Act 1995;  That the copy of the proposed Crown lease and its clauses has been read, understood and agreed to by the proponent(s);  That the copy of the relevant proposed aquaculture licence(s) and its terms and conditions has been read, understood and agreed to by the proponent(s);  That the copy of the proposed consent under the Coastal Management Act 1995 and its terms and conditions has been read, understood, agreed to, signed and dated by the proponent(s) and lodged with the proponent's Tender Submission;  That the Tender Terms and Conditions has been read, understood and agreed to by the proponent(s);  That the proponent is not proposing the culture of finfish, in offshore sites within Port Phillip Bay and Western Port;  That the proponent is not proposing the ranching of abalone (Note: “abalone ranching” is the non-contained culture of abalone on structures);  That the proponent is not proposing to stock the sea floor with the proposed culture species;  That if bivalve shellfish are proposed to be cultured:  That it is not proposed to use more than 500 metres of longline backbone per hectare; and  That it is proposed to attain a minimum development rate of 100 metres of longline backbone per hectare by the end of the third year of the Crown lease and thereafter;  That if the species proposed to be cultured is other than bivalve shellfish:  that where culture equipment is to be attached to a longline then it is proposed to attain a minimum development rate of 100 metres of longline backbone per hectare by the end of the third year of the Crown lease and thereafter, and  that in other cases it is proposed to attain a minimum development rate of one commercial culture cage, raft or other unit of culture containment equipment per hectare by the end of the third year of the Crown lease and thereafter (Note: If the unit of culture containment equipment is other than longline then the dimensions of the cage, raft or other unit of culture containment equipment, to be used in the minimum development rate, is to be provided). Opportunity to resubmit Tender Submission If a proponent meets the requirements under the Fisheries Act 1995 but their Tender Submission is not initially approved due to incompleteness or non-compliance of the Development Plan as provided in the Tender Submission, Tenders Vic will notify the proponent. Proponents with a non-conforming Tender Submission may be given one opportunity to amend their Tender Submission for evaluation by the Panel. Please note price cannot be amended in the resubmitted tender. Notification of assessment of Tender Submission All Proponents will be advised of the status of their Tender Submission by 30 July 2017 by email. Late Tender Submissions A late Tender Submission will not be accepted by the Tender Vic system. Proponents are advised not to leave uploading the lodgement till the last minute. You should start this process at least two hours before the tender closes.

Information for developing a tender Marine aquaculture in Victoria 27

Settlement and the issue of authorisations Payment of bid amount and other fees and charges On or before the settlement date, successful Tenderers will be notified of settlement dates and the formal settlement procedure. During the settlement process successful tenderers will be required to:  pay the application fee under section 29 of the Land Act (Fees) Regulations 1996 (currently $19.50 – incl GST);  pay fee for the issue and preparation of a lease under the Land Act (Fees) Regulations 1996 (currently $336.00 – incl GST);  pay the first years rental (1/21st of the successful bid rental component);  pay the non-refundable contribution to the rehabilitation fund @ $400 per hectare;  pay the charge for the administration of the Crown lease of (currently $250 – incl GST);  pay the charge for the lease registration (currently $92.70 – incl GST)  complete the application form for the relevant aquaculture licence;  obtain any other relevant authorisations that may be required;  pay the application fee and applicable annual fees, levies and charges for the relevant aquaculture licence. Bidders should note that:  Aquaculture licence fees and levies are calculated as at 31 March of each year in accordance with section 151 of the Fisheries Act 1995 and relevant provisions in the Fisheries Regulations 1998 (Division 3 and Schedule 12). The levy includes a component for management and compliance of the fishery and a research levy that is paid to the Fisheries Research and Development Corporation.  If your aquaculture licence application is approved a licence will subsequently be issued to the common expiry date of the following 31 March. Outstanding licence fees and levies will be calculated on a pro rata rate basis pursuant to section 51 (6) of the Fisheries Act 1995 and the licence sent to the applicant on receipt of payment.  Detail on the applicable fees, charges, levies and outstanding balance of bid price(s) will be provided when determined and as appropriate.  If a lessee wishes to register a mortgage against the Crown lease, assign the lease, or surrender the lease, fees will apply to cover the cost of these events under the Land Act (Fees) Regulations 1996. Where possible the value of fees, costs and levies relating to relevant aquaculture licences is provided below. The value of fees, costs and levies change and consequently the listed amounts are correct at the time of publication only. Fees and levies applicable to aquaculture licences in aquaculture fisheries reserves within Port Phillip Bay and Western Port for the year commencing 1 April 2017 are illustrated below. Fees and levies are subject to change in accordance with the implementation of cost recovery following a Regulatory Impact Statement or CPI increase.

Annual Annual Application Management, Compliance Annual Licence Category of Licence* FRDC Fee1 & Administration issue fee Levy3 FMS Levy2 Aquaculture (Crown Land - $1640 $3,306.57 $50.00 $630.30 Bivalve Shellfish) Licence Aquaculture (Crown Land - $1640 $542.27 $50.00 $40.26 Other) Licence Aquaculture (Crown Land - $1640 $542.27 $50.00 $0.00 Abalone) Licence

1 Payable only once per licence. 2 Levied annually per licence, FMS means Fisheries Management Services. 3 Levied annually per licence, FRDC means Fisheries Research Development Corporation.

Information for developing a tender Marine aquaculture in Victoria 28 Annual costs for the Victorian Shellfish Quality Assurance Program (VSQAP) are determined by the Harvest Area Coordinator for each Reserve. The Harvest Area Coordinators, funded by industry, assigns VSQAP costs across all Crown Land Bivalve licence holders in the reserve. The VSQAP is an industry run program that manages shellfish safety with government oversight. Each reserve, that harvests bivalve shellfish for human consumption, has a Harvest Area Coordinator, an industry funded position, that manages the day to day operation of the VSQAP. The current annual VSQAP costs for the Grassy Point and Clifton Springs aquaculture fisheries reserves is ~$7000 per licence holder. Aquaculture licence holders and Crown lease holders may be required to undertake environmental monitoring in accordance with the Guidelines for Environmental Baseline Surveys and Ongoing Monitoring of Aquaculture Fisheries Reserves in Port Phillip and Western Port, available on the Fisheries Victoria* website at http://agriculture.vic.gov.au/fisheries/aquaculture/aquaculture-management/guidelines-and-ongoing-monitoring-of- aquaculture-fisheries-reserves. It is the responsibility of proponents to assess the costs of undertaking environmental baseline surveys and ongoing monitoring. Issue of Crown lease On or before the settlement date, Winning Bidders will be notified of settlement dates and the formal settlement procedure. Winning Bidders will be required to publish a notice of the proposed issue of the Crown lease in the Victoria Government Gazette and a daily Victorian newspaper. Winning Bidders will be required to sign copies of the Crown lease in front of the Minister or Minister's delegate. Following completion of settlement, the registered duplicate of each Crown lease will be provided to Winning Bidders and consent under the Coastal Management Act 1995 for the use of the coastal land. *Victorian Fisheries Authority Act 2016 From the commencement of the Victorian Fisheries Authority Act 2016 (anticipated to commence on 1 July 2017), many of the functions of the Secretary to the Department will be transferred to and administered through the newly created Victorian Fisheries Authority.

Information for developing a tender Marine aquaculture in Victoria 29

Appendix 3: Indicative starting bids

The Starting Bids are defined under the Tender Terms and Conditions and may be changed at any time by the Department of Economic Development, Jobs, Transport and Resources. Reserve Price for 21 Contribution to Minimum bid year period (GST non-refundable (GST inclusive) inclusive (1/21 Rehabilitation payable annually) Fund* $/site $/site $/site Pinnace Channel Aquaculture Fisheries Reserve

Crown land allotment number 2014 80,700 10800 91,500

Crown land allotment number 2015 80,700 10800 91,500

Crown land allotment number 2016 80,700 10800 91,500

Crown land allotment number 2017 80,700 10800 91,500

Crown land allotment number 2018 80,700 10800 91,500

Crown land allotment number 2020 80,700 10800 91,500

Crown land allotment number 2022 80,700 10800 91,500

Crown land allotment number 2023 80,700 10800 91,500

Crown land allotment number 2024 80,700 10800 91,500

Crown land allotment number 2025 80,700 10800 91,500

Crown land allotment number 2026 80,700 10800 91,500

Crown land allotment number 2027 80,700 10800 91,500

Crown land allotment number 2028 80,700 10800 91,500

Bates Point Aquaculture Fisheries Reserve

Crown land allotment number 2004 13,140 2028 15,168

Crown land allotment number 2005 13,140 2028 15,168

Kirk Point - Werribee Aquaculture Fisheries Reserve

Crown land allotment number 2005 13,258 992 14,250

Crown land allotment number 2007 13,258 992 14,250

Crown land allotment number 2009 13,258 992 14,250

Crown land allotment number 2010 13,258 992 14,250

Crown land allotment number 2011 13,258 992 14,250

Crown land allotment number 2019 13,258 992 14,250

Crown land allotment number 2020 13,258 992 14,250

Crown land allotment number 2021 13,258 992 14,250

Crown land allotment number 2025 13,258 992 14,250

Crown land allotment number 2027 13,258 992 14,250

Information for developing a tender Marine aquaculture in Victoria 30 Beaumaris Aquaculture Fisheries Reserve

Crown land allotment number 2016 21,472 2028 23,500

Crown land allotment number 2017 21,472 2028 23,500

Flinders Aquaculture Fisheries Reserve

Crown land allotment number 2010 5,364 1200 6,564

Crown land allotment number 2024 5,364 1200 6,564

Crown land allotment number 2026 5,364 1200 6,564

Crown land allotment number 2029 5,364 1200 6,564

Dromana Aquaculture Fisheries Reserve

Crown land allotment number 2015 10,211 1576 11,787

Crown land allotment number 2017 10,211 1576 11,787

Grassy Point Aquaculture Fisheries Reserve

Crown land allotment number 2029 7,775 1200 8,975

Crown land allotment number 2032 7,775 1200 8,975

Crown land allotment number 2034 7,775 1200 8,975

Crown land allotment number 2035 7,775 1200 8,975

Crown land allotment number 2036 7,775 1200 8,975

Crown land allotment number 2037 7,775 1200 8,975

Crown land allotment number 2038 7,775 1200 8,975

Crown land allotment number 2039 7,775 1200 8,975

* Calculated at $400 per hectare (payable at commencement of lease only)

Information for developing a tender Marine aquaculture in Victoria 31

Information for developing a tender Marine aquaculture in Victoria 32

vic.gov.au/fisheries