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Delivering Today Securing Tomorrow

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Delivering Today Securing Tomorrow DELIVERING TODAY SECURING TOMORROW ANNUAL REPORT 2009–10 CONTENTS 2 Corporate Profile 24 Community 4 CEO’s Review 26 Our Leaders and Our People 6 Chairman’s Outlook 34 Corporate Governance 8 Financial Summary 42 Financial Report 12 Performance Summary 68 Statement of Corporate Intent Summary 14 Delivering Today 72 Key Statistics 16 Securing Tomorrow 81 SunWater Scheme Map 20 Environment 22 Safety Communication Objective This annual report aims to provide accurate information to meet the needs of SunWater This annual report is a summary of programs and stakeholders. SunWater is committed to open activities undertaken to meet key performance and accountable governance and welcomes your indicators as set out in SunWater’s Statement of feedback on this report. Corporate Intent 2009–10 (SCI) and summarised on page 68 of this report. The annual report can be accessed on SunWater’s website: www.sunwater.com.au. The report chronicles the performance of the organisation and describes SunWater’s Hard copies are also available on request: initiatives, achievements and the organisation’s SunWater future plans and prospects as a leader in water PO Box 15536 City East, Brisbane QLD 4002 infrastructure development and management. Ph: +61 7 3120 0000 Fax: +61 7 3120 0260 It also communicates significant events impacting SunWater Limited is a registered water service the organisation that have occurred after the provider under the Water Act 2000. reporting period. www.sunwater.com.au HIGHLIGHTS DELIVERING TODAY 1,347,339ML of water was delivered by SunWater during 2009–10, 13% more deliveries to customers than the previous financial year pages 14 to 15, 74 to 76 SECURING TOMORROW SunWater is planning regional bulk water infrastructure projects worth more than $2B pages 16 to 19 ENVIRONMENT 5,900kg of steel and 4,000kg of timber recycled during SunWater’s construction of the Cloncurry Pipeline was made available for re-use pages 20 to 21 SAFETY Through a strong focus on injury prevention, training and enhanced awareness of safety risks and hazards, SunWater’s Lost Time Injuries were reduced from 11 in 2008–09 to zero in 2009–10 pages 22 to 23 COMMUNITY SunWater’s construction projects completed in 2009–10 resulted in $7.8M in subcontracts going to Queensland based businesses, $5.7M of which went to North Queensland based firms pages 24 to 25 OUR PEOPLE SunWater has partnered with the QUT Business School to equip 26 emerging leaders for future senior management roles pages 32 to 33 OUR FINANCIAL PERFORMANCE SunWater’s 2009–10 net profit before tax of $59.2M is a 35% increase on the previous year adjusted for abnormal items pages 8 to 11, 42 to 67 2 CORPORATE PROFILE SUNWATER – MAKING WATER WORK Leading the way in total bulk water infrastructure solutions, SunWater has built an exceptional track record of achievement, placing us among the most successful water infrastructure companies in Australia. Our reputation not only comes as a A pull-out map at the back of this OUR EXPERTISE result of 80 years of expertise and report shows SunWater’s extensive From designing and building dams, experience, but also by placing our regional presence in Queensland managing and operating bulk water clients’ needs first – whether they are and demonstrates our existing infrastructure, to finding new ways for reliable water supply delivery or water infrastructure network and to deliver water to remote locations, water infrastructure solutions. thePlan location Design of Develop our proposed Manage Maintain wePlan are Design the specialists Develop Manage that Maintainindustry, infrastructure developments. mining and government turn to when Customer Base Plan Design Develop Manage Maintain Plan Design Develop Manage Maintain they need the right solution for their With a focus on water infrastructure Plan Design Develop Manage Maintain complex Plan Design water Develop needs.Manage Maintain solutions, SunWater owns and OUR SERVICE Plan Design Develop Manage Maintain SunWater’sPlan Design Developexpertise Manage and Maintainservice manages a regional network of SPECTRUM spectrum is specific to bulk water bulk water infrastructure to support Plan Design Develop Manage Maintain Plan Design Develop Manage Maintain infrastructure: around 5,000 customers across SunWater provides bulk water the resources, energy, urban and Da ms and weirs infrastructure solutions and irrigation sectors. Ma jor pumping stations services in a customised Bul k water pipelines package to suit the specialised Asset Base needs of each industry sector. Irrigation channels and drainage With an asset base of 19 dams systems From design to construction, and 63 weirs and barrages, our full Wa ter treatment facilities. storage capacity is over 6.7M ML, of operation and management, This proven infrastructure which around 2.18M ML is available we have the experience and development and management as water allocations for delivery to skills in delivering the right experience has led to our expansion customers. solutions and services for every customer. as a national water solutions provider, Our water storage and distribution offering innovative ways of securing network includes: water for the future and providing 19 major dams business a sustainable solution for 63 weirs and barrages asset growth and management. 80 major pumping stations 2, 500km of pipelines and channels, and 73 0km of drains. SunWater is a bulk water infrastructure developer, owner and manager playing a key role in the future development of the resources, energy, industrial, urban and irrigation sectors across Australia. SunWater Annual Report 2009–10 CORPORATE PROFILE 3 Our vision OUR VALUES To be a modern, customer SunWater’s organisational focused water utility business values provide a framework providing outstanding to guide our decisions and solutions for our customers business dealings internally and the community. and externally to ensure the organisation achieves Our mission success. To enhance the value Our values are: of the corporation by Delivering outstanding providing cost-effective service and results and commercial water Working safely services that add value Taking responsibility for our customers. Working together Being open to change Respecting others Ensuring optimum performance of ned Churchward Weir near Bundaberg is key to delivering on our customer service commitments. SunWater Annual Report 2009–10 4 CEO’S REVIEW CEO’S REVIEW In addition to the day to day work of managing water infrastructure and investigating new water infrastructure for our clients, in 2009–10 SunWater has been focused on delivering upon its commitments to customers, stakeholders and staff by improving business effectiveness, improving productivity and reducing business overheads. Reshaping AS A While duplicated functions have As part of this process SunWater will contemporary UTILITy been consolidated, regional links develop and submit forecast costs company have also been strengthened with for the 30 service contract areas our teams located closer to key that provide services to the irrigation A major focus for SunWater in infrastructure growth areas so they sector. These will be documented 2009–10 was the completion of a can respond better to customers’ within Network Service Plans comprehensive efficiency review of developing needs. Over time, these (NSPs) and published by the the business. The Smarter, Lighter, changes will reduce organisational QCA. The QCA will consult with Faster Initiative (SLFI) involved overhead and further improve stakeholders and invite submissions all staff and sought to identify organisational efficiency and on the NSPs and a range of other improvements to organisational effectiveness. matters relevant to the price setting structures, processes and systems. process. The QCA review process The key words ‘Smarter, Lighter, Organisational restructures can be is timetabled for completion by Faster’ have been the theme for challenging, and sometimes require 30 April 2011, with prices finalised identifying and removing duplication tough decisions, however during this by the state government prior to and building a more responsive and process I believe the understanding the commencement of the 2011–12 cost-effective organisation. and cooperation of SunWater’s staff has been vital to its success. financial year. In keeping with our business SunWater’s people are committed to transformation, SunWater’s corporate RealignIng OUR ThInkIng ensuring the organisation delivers on vision was adjusted in 2009 to reflect its commitments to customers and During 2009–10 three significant its potential as a modern, customer- stakeholders. management actions were focused water utility business. The progressed to improve SunWater’s Our succession planning and our SLFI explored our previous business safety performance, and to further investment in developing leaders’ model with the new vision acting as improve the safety of our people, skills have complemented the a catalyst for change. This allowed contractors and the general public. the development of a fresh approach restructure in positioning the Firstly, we made safety a core value to business that better aligned organisation to meet its future for the company, and restructured organisational responsibilities, challenges and opportunities. the safety group to establish an accountabilities and future business Irrigation WATER PRICIng organisation wide Health Safety outcomes. review Underway and Environment Team that looks In December 2009, SunWater The Queensland government
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