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Vision Service Success vision service success 2008-2009 annual report Contents 2 Corporate profile 4 Highlights 6 Chairman’s review 8 CEO’s report 10 Performance summary 11 Financial summary 14 Operational performance 20 Community and environment 24 Asset sustainability 30 Our customers 34 Our people 40 Business management 44 Organisational structure 45 SunWater executive 46 SunWater board 48 Corporate governance 54 Annual financial report 76 Statement of corporate intent summary 81 Key statistics 87 SunWater water supply schemes map 2009 IBC Glossary This Annual Report is a summary of programs and activities undertaken in meeting key performance indicators as set out in SunWater’s 2008-09 Statement of Corporate Intent and summarised on page 76-80 of this report. The report outlines the vision, service and success of the organisation. It describes the initiatives and achievements of the past financial year, and details the organisation’s future plans and prospects as a leader in water infrastructure development and management. Also contained in this report are those events, which have occurred after the reporting period, that have a significant impact on the organisation. SunWater is committed to open and accountable governance and, through this Annual Report, aims to meet the needs of all SunWater stakeholders in providing comprehensive and accurate information. SunWater welcomes your feedback on this report. The Annual Report can be accessed on SunWater’s website: www.sunwater.com.au Hard copies are also available on request: SunWater Limited Level 10, 179 Turbot Street PO Box 15536 City East Brisbane QLD 4002 Phone (07) 3120 0000 Fax (07) 3120 0260 Customer Information Line 131589 SunWater Limited is a registered water service provider under the Water Act 2000. www.sunwater.com.au 1 SunWater Limited annual report 2008–2009 Operational Performance vision service success Our vision Our mission Our values To be leaders in water To enhance the value of the Delivering results service delivery providing corporation by providing Providing outstanding outstanding solutions cost-effective and commercial service for our customers and water services that add value Working together the community. for our customers. Taking responsibility These services include: Respecting others, and Bulk water storage and Being open to change. distribution Water treatment, reticulation and drainage Water infrastructure development Water facilities management, and Specialist consultancy and services. www.sunwater.com.au SunWater Limited annual report 2008–2009 Operational Performance 1 corporate profile. SunWater is Queensland’s largest Heritage bulk water service provider, For more than 80 years, SunWater (in its present and previous forms) has built a owning and managing around regional network of water supply infrastructure throughout Queensland. It owns and manages this network of infrastructure, which underpins a diverse range of $7 billion in water infrastructure sectors including mining, power generation, industrial, urban communities and assets and supplying 40% of irrigated agriculture. all water used commercially Core capabilities in Queensland. SunWater’s industry expertise and experience are unmatched in developing and managing water infrastructure by providing tailor-made solutions for industry, mining and government. The organisation focuses on meeting its clients’ needs, whether they are for new commercial water assets, efficient management of existing infrastructure, or the provision of expert advice in water management. SunWater works with its customers, business partners and suppliers in a fair, open and commercial manner to achieve mutually beneficial and cost-effective outcomes. SunWater’s expertise is in developing and managing: Dams and weirs Major pumping stations Bulk water pipelines Irrigation channels and drainage systems, and Water treatment facilities. SunWater also provides a range of infrastructure management and consulting services including: Design and design review services Asset management, planning and review Flood hydrology, hydraulics and flood management Infrastructure operations and management Customer water account management and billing, and Water management and policy strategy advice. SunWater actively pursues developments that span this range of water solutions and remains flexible around delivery options to provide high-quality water supply and infrastructure outcomes for its customers and clients. Shareholders SunWater Limited is a Company Government Owned Corporation (GOC), and its shares are held by its shareholding Ministers on behalf of the State of Queensland. SunWater’s shareholding Ministers were, at the time of preparing this report, the Honourable Andrew Fraser, Treasurer and Minister for Employment and Economic Development and the Honourable Stephen Robertson, Minister for Natural Resources, Mines and Energy and Minister for Trade. 2 SunWater Limited annual report 2008-2009 Corporate Profile Regions Customers SunWater’s business activities and interests SunWater’s customer base has diversified as the business has grown. Queensland- are spread throughout Queensland from based irrigators have historically comprised the majority of SunWater’s customers as far north as Bamaga, west to Mount Isa, and still represent a significant portion of its customer base of almost 5,000. and south to St George. SunWater maintains In the 2008-09 financial year, water infrastructure consulting and facilities services to a network of offices and depots across industrial enterprises represented approximately 65.8% of total revenue. Queensland, enabling it to provide services to a range of asset owners in regional areas. SunWater’s commercial customers include mines, power generators, local governments, and other water infrastructure owners and developers to whom The majority of the business operations are SunWater provides knowledge-based services. in Queensland, but SunWater also operates and maintains water infrastructure in other Water sources states of Australia. SunWater’s expertise Approximately 40% of the water used commercially in Queensland is managed by in developing tailored water solutions is SunWater via 23 water supply schemes and three subsidiary companies - North recognised throughout Australia. West Queensland Water Pipeline Pty Ltd, Eungella Water Pipeline Pty Ltd and National policy agenda Burnett Water Pty Ltd. SunWater is actively involved in national SunWater’s water storage and distribution infrastructure has a replacement value of and state water policy agendas through $7 billion and includes: key advisory groups including the national 19 major dams Water Accounting Standards Board (WASB), 63 weirs and barrages the Australian Water Resource Information 80 major pumping stations System (AWRIS) Steering Committee and the 2,500 km of pipelines and open channels, and National Program for Sustainable Irrigation 730 km of drains. (NPSI) Program Management Committee. SunWater’s expertise is valued, in that it Under the Resource Operations Licences and interim Resource Operations brings a water service provider’s and water Licences issued by the Department of Environment and Resource industry practitioner’s perspective to National Management (DERM), SunWater manages a total water allocation of 2.82 million Water Initiative related programs and projects. megalitres (ML). This includes 1.92 million ML of customer-owned allocations and a 0.54 million ML allowance for distribution losses within pipeline and open channel distribution systems. Pictured above: Colin Bendal inspecting Emerald’s Fairbairn Dam, which provides water supply to one of Queensland’s largest cotton growing regions. SunWater Limited annual report 2008-2009 Corporate Profile 3 highlights. Consolidated financial Operational performance performance Water deliveries across all schemes totalled 1.05 million ML, a slight increase on Total revenue (excluding the Seqwater the 1.02 million ML delivered in 2007-08, despite being hampered by drought and transaction and the proceeds from bank then flood. guarantees), exceeded 2007-08 by $8.8m. Business cases and investigations for proposed water infrastructure development Expenses excluding impairment were projects and upgrades to existing assets were progressed. These included the $2.3m lower than 2007-08. Labour cost Connors River Dam and Pipelines project, the Nathan Dam and Pipelines project, savings resulting from the Seqwater the Glebe Weir Raising and Pipeline project, the Lower Fitzroy River Infrastructure transaction of $6.0m, were offset by higher project, Burdekin Falls Dam Raising project, and the Water for Bowen project. depreciation expense of $1.7m and higher Approval for the construction of the $42.5m, 38 km Cloncurry Pipeline was legal fees of $1.7m, mostly associated with obtained in the second quarter of the financial year, with work due to be the Paradise Dam legal action. completed in early 2010. The pipeline will provide a more reliable water supply to Return on assets (excluding the Seqwater Cloncurry from SunWater’s existing North West Queensland Water Pipeline. It will transaction) was 4.5%, up from 2.3% service future population and industrial growth in the township. in 2007-08. Water supply for mining and energy operations around Queensland is an Income tax was $6.9m, down from $8.0m important business development area, with several major projects under in 2007-08. This was due to prior year discussion with mining companies. adjustments made following a ruling by the Community and environment
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