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2008/09 annual report 19 October 2009 The Honourable Stephen Robertson MP Minister for Natural Resources, Mines and Energy GPO Box 2454 Brisbane Qld 4001 The Honourable Andrew Fraser MP Treasurer GPO Box 611 Brisbane Qld 4001 Dear Ministers I am pleased to present the Annual Report 2008-09 for WaterSecure. I certify that this annual report complies with: • the prescribed requirements of the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997, and • the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies. A checklist outlining the annual reporting requirements can be accessed at page 44 of the report. Yours sincerely Keith Davies Chief Executive Officer WaterSecure Contents Highlights Our business About WaterSecure Chair’s report CEO’s report Organisational structure Board of directors Executive Management Team Priorities for 2010 How to comment on this annual report Our performance – what we delivered We value your comments on our annual report and any other matters relating to WaterSecure. Please contact us by: Western Corridor Recycled Water Project Gold Coast Desalination Project M: Level 2, 95 North Quay Brisbane Qld 4000 T: 1800 997 464 Alignment with Queensland E: [email protected] Government Priorities W: www.watersecure.com.au How we measure performance Copies of this annual report Efficiency and effectiveness You can obtain copies of this annual report by contacting WaterSecure or by downloading the report from our website www.watersecure.com.au. Lessons learned ISSN 1837-0446 (Print) Our people ISSN 1837-0454 (Online) Corporate Governance Interpreter service Summary of financial position and performance The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse Glossary backgrounds. If you have difficulty understanding this annual report, you can contact us on 1800 997 464 and we will arrange an interpreter to help you understand the parts of this report causing difficulty. Annual report checklist © State of Queensland (WaterSecure) 2009 Financial report (see CD attached to this report) WaterSecure Annual Report 2008-09 1 2008-09 highlights Financial highlights Western Corridor Recycled Water Project WaterSecure revenue by source WCRW Project met regulation dates and completed under budget 75.1% 23.6% More than 7.3 million hours worked Water Grid Manager Pipeline Construction Lost time injury (LTI) rate of only 2.21, below 1.0% 0.4% industry averages Other revenue Interest Income 20.4 billion litres of purified recycled water supplied to Swanbank and Tarong power stations Interim Water Quality Report shows Bundamba Advanced Water Treatment Plant consistently produced water to meet the Public Health Regulation guidelines throughout testing period (May-December 2008) Environmental benefits – the amount of nitrogen and phosphorus that would otherwise have been discharged into the Brisbane River from wastewater treatment plants feeding Bundamba AWTP reduced by approximately 35 per cent and WaterSecure source of funding ($M) 90 per cent respectively 359.6 Winner of 12 international, national and state Equity Injection awards, and finalist in further three national awards 403.3 Gold Coast Desalination Project National Water commission 2,630.1 First Water supplied to SEQ Water Grid in Qld Treasury Corporation February 2009 More than 4.3 million hours worked LTI rate of only 1.16, well below industry averages 4.2 billion litres of desalinated water supplied to the SEQ Water Grid Network Integration Pipeline completed and handed over to LinkWater Winner of 2009 Membrane Desalination Plant of the Year – Global Water Intelligence 2 WaterSecure Annual Report 2008-09 Cost vs budget 3.000 Final Budget forecast Expenses 2.500 cost to date 2.000 Final Expenses $ Billion forecast 1.500 Budget cost to 1.000 date 0.500 WCRW Project GCD Project WaterSecure Annual Report 2008-09 3 Our business About WaterSecure The combined production capacity of WaterSecure’s assets is up to 365 megalitres a day; the Western Corridor Recycled Water Project has the capacity to Legislative basis supply up to 232 megalitres of purified recycled water WaterSecure is the trading name of the Queensland a day and the Gold Coast Desalination Plant’s capacity Manufactured Water Authority, a Queensland is 133 megalitres of desalinated water a day. Government statutory authority established under the South East Queensland Water (Restructuring) Act 2007. Purified recycled water is supplied to Swanbank and Tarong power stations and will be supplied to future The purpose of this legislation is to facilitate a industrial and agricultural customers and, when the restructure of the water industry in South East region’s combined dam levels fall below 40 per cent Queensland to deliver: and the necessary government approvals are in place, will supplement drinking water supplies in Wivenhoe improved regional coordination and management Dam. Desalinated water is supplied directly into the SEQ of water supply Water Grid. It is blended with dam water and piped to more efficient delivery of water services customers in parts of the Gold Coast and Brisbane. enhanced customer service for water consumers Vision, mission and values a clearer accountability framework for water Our vision supply security. We are a customer-focussed world leader in sustainable, large-scale, purified water supplies. Role and functions Our mission WaterSecure is responsible for producing and WaterSecure’s mission is: supplying purified recycled water and desalinated water to the South East Queensland Water Grid. to substantially enhance the security of water supplies On 1 September 2008, WaterSecure became the sole to manage and improve the environmental shareholder of Western Corridor Recycled Water Pty footprint of our business Ltd and acquired a 50 per cent share in South East Queensland (Gold Coast) Desalination Company. to inform, influence and participate in the ongoing The remaining half was acquired on 1 October 2008, development of associated water industries. making WaterSecure the sole shareholder. WaterSecure’s water supply system includes more than 200 kilometres of large-diameter underground pipeline, three advanced water treatment plants located at Bundamba, Luggage Point and Gibson Island and a reverse osmosis desalination plant at Tugun on the Gold Coast. 4 WaterSecure Annual Report 2008-09 Our values Respect - WaterSecure staff respect each other, WaterSecure works together as one team, guided by the community and the environment in which we our SPIRIT values: operate. We will always protect and seek to enhance our environment. Safety is WaterSecure’s number one value and is broader than workplace health and safety. WaterSecure Innovation - We seek continuous improvement is committed to providing water supplies that always by challenging our thinking and that of others, meet and aim to exceed the water quality, safety encouraging our team to think innovatively. and environmental regulatory requirements through Teamwork - We understand that the power of the the provision of safe work places and the effective team exceeds the power of any individual and will management of water supply infrastructure. partner for the benefit of stakeholders. People - WaterSecure is committed to supporting and developing its people. Integrity - WaterSecure is open and honest to earn and maintain the support and trust of all stakeholders. WaterSecure Annual Report 2008-09 5 David Gray Chair Chair’s Report Not only are these projects a vital part of the solution to our water issues but they are reaping benefits I am pleased to present the annual report for the first for the environment as well. Our advanced water full year of operation of WaterSecure, the Queensland treatment process removes nutrients which would state authority incorporating Western Corridor otherwise have been deposited into the Brisbane River, Recycled Water and SureSmart Water. minimising environmental impacts and improving water quality in the Brisbane River and Moreton Bay. WaterSecure, the Queensland Manufactured Water Our work in this area was recognised this year with the Authority, began operation on 1 July 2008 as the Western Corridor Recycled Water Project winning the Queensland state authority charged with producing and 2009 Healthy Waterways Industry Award. supplying purified recycled water and desalinated water. With assets totalling more than $3.7 billion, WaterSecure The significance of both assets to the global water is an integral part of the South East Queensland Water industry is evidenced by the strong attention the Grid and is supplying a new source of pure water to the projects continue to attract both nationally and region through the Western Corridor Recycled Water internationally. This year has seen interest from Project and the Gold Coast Desalination Plant. industry, educational, government and general groups as far flung as Abu Dhabi and Japan and we It’s been an exciting year for WaterSecure as we have take seriously our obligation to educate the wider achieved major milestones across both projects. The community on water issues. We will continue to build projects have not been without their challenges, as on our community engagement role to build the any large-scale project built under pressure is. The public’s confidence in the quality of our water. combined efforts of all staff who have worked on the schemes
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