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Annual Report 2012 Gladstone Area Water Board Annual Report Table of contents Chairperson’s letter ... ... ... ... ... ... ... ... ... ... ... 1 Chairperson’s review ... ... ... ... ... ... ... ... ... ... ... 2 Overview of the year ... ... ... ... ... ... ... ... ... ... ... 4 Board of Directors’ profiles. ... ... ... ... ... ... ... ... ... 7 Review ... ... ... ... ... ... ... ... ... ... ... ... ... ... 9 Goals for 2012/2013 ... ... ... ... ... ... ... ... ... ... ... 18 Governance ... ... ... ... ... ... ... ... ... ... ... ... ... 19 Governance – Board and Committees ... ... ... ... ... ... ... 21 Governance – Human Resources ... ... ... ... ... ... ... ... 23 Governance – Reporting ... ... ... ... ... ... ... ... ... ... 24 Governance – Other significant issues... ... ... ... ... ... ... 25 Five year summary. ... ... ... ... ... ... ... ... ... ... ... 26 Financial statements ... ... ... ... ... ... ... ... ... ... ... 28 Glossary... ... ... ... ... ... ... ... ... ... ... ... ... ... 62 Chairperson’s letter Reply please quote ref: 189637 The Honourable Mark McArdle MP The Minister for Energy and Water Supply PO Box 15216 City East Brisbane Qld 4002 Dear Minister I am pleased to present the Annual Report 2011-2012 and financial statements for the Gladstone Area Water Board. I certify that this Annual Report complies with: » the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and » the detailed requirements set out in the Annual Report Requirements for Queensland Government Agencies. A checklist outlining the annual reporting requirements can be accessed at www.gawb.qld.gov.au. Yours sincerely Mary Boydell Chairperson Chairperson’s letter Chairperson’s review By virtue of section 1084 of the Water » in conjunction with its joint to the relevant departments and GAWB Act 2000 (the Act), Gladstone Area proponent (SunWater), conclude was advised to let natural events occur Water Board (GAWB) is a Category 1 significant preparatory activities with regards to these fish and that no Water Authority. It is also a registered towards the ultimate construction further action was required. water service provider under the Water of additional water storage on the Supply (Safety and Reliability) Act lower Fitzroy River (as part of the Construction of the Curtis Island 2008 (WSSRA). GAWB operates as a Lower Fitzroy River Infrastructure Pipeline Project commenced in October commercialised statutory authority Project (LFRIP)). 2011 to meet the water needs of the with the function of carrying out liquid natural gas (LNG) proponents on While GAWB recognises that it is water activities. As a commercialised Curtis Island. A water supply to Curtis essential for it to have a ‘shovel entity, GAWB has a key objective of Island via pipeline will prevent the ready’ solution in case the need ensuring its operations are as efficient unnecessary discharge of brine into for augmentation arises, it equally as possible, with its prices being cost Gladstone Harbour associated with recognises the need for this to reflective. the desalination facilities that would represent the most efficient response otherwise have been necessary to GAWB owns and operates Awoonga to the needs of its current and future supply these customers. The project Dam on the Boyne River along with customers. For this reason, GAWB has been undertaken jointly with a network of delivery pipelines, continues to monitor alternatives to Gladstone Regional Council which is water treatment plants and other the GFP/LFRIP (such as desalination) connecting its waste water treatment bulk water distribution infrastructure and, via its commercial framework, to facilities to Curtis Island, with GAWB in the Gladstone region in Central support demand reduction initiatives acting as its disclosed agent in the day Queensland. GAWB holds an allocation by customers that defer augmentation, to day management of the project. The of 78,000ML per annum (ML p.a.) from where this represents the best project promotes the use of common Awoonga Dam on the Boyne River by investment for all customers. user infrastructure and provides virtue of a Resource Operations Licence benefits to GAWB’s existing customers During 2011/12, water commenced issued pursuant to the Water Resource through better utilisation of existing flowing over the Awoonga Dam (Boyne River Basin) Plan 2000 (WRP). infrastructure. spillway (at the 40 metre level) on Cognisant of the criticality of security 27 January 2012 and reached a peak GAWB has continued to implement and reliability of its supply to of 41.06m (109.54% of capacity) and finalise a number of operational customers, GAWB’s Contingent Supply on 30 January 2012. The lake level activities and projects during Strategy (CSS) requires it to hold the continued to recede until a period of the financial year and developed capability to efficiently respond to heavy rainfall in the region during the capability with improved resources identified ‘supply failure scenarios’. week ended 23 March. This resulted and appropriate systems. All of these These scenarios include events such in the lake level rising to a peak of activities provide GAWB with a stable as failure of storage from (or ‘as a 41.50m (113.67% of capacity) on 24 platform to move forward and continue consequence of’) drought or inability March 2012. The spilling continued efficient and effective operations to to meet additional demand which until early May 2012. The dam level at meet the water needs of its customers may be in excess of its present water 30 June 2012 was 39.84m (98.61% of and the region into the future. allocation. capacity). The spilling events activated GAWB’s Emergency Action Plan. GAWB At 30 June 2012, GAWB had total The CSS has seen GAWB: discharged its requirements under assets of $534.442 million, with equity these plans. of $262.193 million, and employed » conclude detailed design for the 79 people (72 full time equivalents). Gladstone to Fitzroy Pipeline (GFP) With water flowing over the spillway, GAWB’s revenue in 2011/12 from the as well as obtaining necessary land mature barramundi and other fish supply of water was $50.946 million. and other environmental approvals stocks were able to enter downstream Net profits after tax for the year ended waters. The number of fish observed » secure an entitlement to 30,000ML 30 June 2012 totalled $12.064 million. traversing the spillway was minimal, p.a. of high reliability water from however. A much greater number of the lower Fitzroy River, which was downstream fish species (primarily formalised through the amendment catfish) moved upstream towards the of the Fitzroy Basin Resource dam infrastructure during the spilling Operations Plan 2004 in July 2009 events. These movements were notified and 2 Vision Mission Values To be an excellent To ensure the long Our values guide water business and short term water the way we work to needs of current and achieve our vision: future customers Professionalism are met in ways that > individual and are environmentally, collective socially and Accountability commercially > clarity and sustainable commitment Communication > clear and concise Trust > earning and conferring 3 Overview of the year Significant highlights for the 2011/2012 reporting year During the year, GAWB continued to Meeting Water Needs Commercial Results meet the water needs of its customers through the achievement of the best » Water quality tests completed were » Finalised and executed commercial possible outcomes against its four compliant with health standards. arrangements with LNG proponents interlinked business goals, namely: in a Common Use Infrastructure » Reviewed Emergency Action Agreement, and construction of the » meeting water needs – to Plans and where necessary CIWSIP. understand, facilitate and satisfy amended to comply with the FCI the water requirements of current recommendations. » Water revenue of $50.946 million and future customers (58,446ML reserved and supplied) » Implemented improvements compared to target sales of $47.193 » commercial results – to ensure to Asset Management Systems million (56,644ML reserved and GAWB’s profitability and build the (AMS) to ensure best practice supplied). value of the business operating philosophy for critical infrastructure. » Operating expenses of $19.185 » corporate responsibility – to be million compared to budget regarded as a responsible corporate » Participated in the 2012 Asset expenditure of $16.032 million. citizen and Management Performance » capability – to plan, develop and Improvement Project, conducted » Earnings before interest and tax manage resources to support by Water Services Association (EBIT) of $27.270 million exceeded sustainable outcomes. of Australia (WSAA), to compare target (including forecast impact the current framework with best of Curtis Island Pipeline project) of Leading into the 2012/13 wet season, practice expectations. $21.571 million. Awoonga Dam is primed to spill again, taking into account its current » Completed Dam safety maintenance » Net profit after tax equivalents storage level. GAWB has actively project to meet the regulator’s of $12.064 million compared to considered the Flood Commission of expectations for critical budgeted profit (including forecast Inquiry (FCI) recommendations and infrastructure. impact of Curtis Island Pipeline implemented relevant findings that Project) of $6.005 million through relate to emergency planning and other » Commenced construction of increased water sales
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