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SUNWATER ANNUAL REPORT 2017-18 a New Direction Defined

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SUNWATER ANNUAL REPORT 2017-18 a New Direction Defined 2017-18 ANNUAL REPORT Transformation in action Table of contents 3 A new direction defined 4 Year in review 8 Health, safety and environment 12 Delivering value to our customers 16 Strengthening our operations 20 Delivering transformation 22 Engaging with our stakeholders 24 Transforming the way we work 26 Corporate governance 34 Sustainable practices 38 Directors’ report 40 Auditor’s independence declaration 41 Financial report 84 Dam statistics 85 Scheme statistics 88 Glossary 90 Operations and infrastructure map About this report This annual report provides a review of SunWater Limited’s financial and non-financial performance for the 12 months ended 30 June 2018. The report includes a summary of activities undertaken to meet key performance indicators set out in SunWater’s Statement of Corporate Intent 2017–18 (SCI), which represents our performance agreement with our shareholding Ministers. This annual report aims to provide information to meet the needs of SunWater stakeholders. An electronic version of this annual report is available on the SunWater website: www.sunwater.com.au We invite your feedback on our report. Please contact our Customer Services team by calling 13 15 89 or email [email protected] Aboriginal acknowledgement SunWater respectfully acknowledges the Traditional Owners of the land on which we operate and pays our respect to their Elders past and present. Cover image: Sean McShane from McShane’s Produce, Burdekin Haughton Water Supply Scheme. SUNWATER ANNUAL REPORT 2017-18 A new direction defined Who we are Our purpose and values We operate 365 days a year to deliver the Delivering value through water solutions lifeblood of regional Queensland for today and tomorrow SunWater is a water solutions and service provider supplying more than 5000 customers across agriculture, urban and WORK TOGETHER We are our best when we work together as one SunWater and with our industrial sectors. For more than 80 years we have delivered stakeholders front of mind. water and we currently deliver more than 40 per cent of the water used commercially in Queensland through a network of VALUE PEOPLE critical infrastructure including: We are the sum of our parts, and everyone matters. • 19 major dams • 79 major pumping stations TAKE RESPONSIBILITY • 64 weirs and barrages • 2120 kilometres of pipelines We all have a part to play to deliver on our promises. • 730 kilometres of water • 10 water treatment plants channels Core capabilities Shareholders SunWater Limited was established under the Government Owned Our focus is to deliver safe and reliable water solutions for Corporation Act 1993 (Qld) and is a registered water service customers including: provider under the Water Act 2000. • bulk water storage and distribution Our shareholding Ministers as at 30 June 2018 are: • water infrastructure development • The Hon Curtis Pitt MP, then Minister Treasurer and Minister • water facilities maintenance and management for Trade and Investment. • customer water account management (1 July 2017 to 11 December 2017) • flood hydrology and hydraulics • specialist consulting services including design. • The Hon Jackie Trad MP, Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships. Within SunWater there are three additional operating companies: (12 December 2017 to 30 June 2018) • Burnett Water Pty Ltd • The Hon Mark Bailey MP, then Minister for Main Roads, • Eungella Water Pipeline Pty Ltd Road Safety and Ports and Minister for Energy, Biofuels and • North West Queensland Water Pipeline Pty Ltd. Water Supply. (1 July 2017 to 9 August 2017 and 27 September 2017 to 11 December 2017) • The Hon Dr Anthony Lynham MP, Minister for Natural Resources, Mines and Energy. (12 December 2017 to 30 June 2018) 3 SUNWATER ANNUAL REPORT 2017-18 Year in Review We are pleased to provide an overview of QCA will make a recommendation to the the results achieved through the efforts of Queensland Government on SunWater’s our people against the objectives agreed future irrigation prices. The QCA review by the Board and Executive Leadership did not start during the report period, Team for 2017-18. however it is expected to start in early This year has been about challenging 2018-19. how we can do things better and what we As part of our preparation for this need to change to truly be a valued water process during the reporting period, we solutions provider to our customers. We provided customers transparent records are pleased to share our highlights and of our operating expenses. We met with outline the next steps on our journey irrigation advisory committees around as we strive to set new benchmarks for the state to discuss potential changes to customer engagement, organisational the price path and allow customers to efficiency and safe high performance. have their say. We were pleased to give irrigators a chance to have their voices Delivering our FY18 heard in this important process which strategy will balance the commercial needs of our business with future viability for Commercially focused customers. Capacity Upgrade Study which identified projects that could deliver an additional We delivered on our commitment in A sustainable business 55,650 ML of water per annum for 2017–18 with 1.2 gigalitres of water SunWater played a major role in the customers. Continued work in this space delivered within targeted distribution levels will ensure we’re best placed to deliver and service level efficiencies. This result delivery of the Queensland Bulk Water Opportunities Statement which reflects infrastructure required to maximise water demonstrates our ongoing focus to deliver access for our customers. sustainability and value for customers and Government’s objectives for bulk water we sought to achieve this through open supply and commitment for future water SunWater’s Dam Improvement and transparent communication. security across Queensland. SunWater Program (DIP) is the largest program of provided valuable insight into potential infrastructure improvements undertaken Two local management arrangements at new future infrastructure projects and in our history. We made great progress St George and Theodore were approved upgrade initiatives to ensure our dams with a number of projects in 2017–18, to provide irrigators the opportunity to continue to be safe in extreme weather including spillway improvements to manage their water distribution assets. events and safeguard customer water Fairbairn and Paradise dams plus the At the same time, customers in Mary security in our storages. Burdekin Falls Dam Foundation Drainage River and Bundaberg water supply Improvement Project. We’ll continue to schemes elected for SunWater to As part of our commitment to maximise the safety and efficiency of our progress several DIP projects throughout continue managing these assets for local the next financial year to ensure irrigators. We will continue to support our infrastructure, SunWater undertook five major feasibility studies in 2017–18. We our infrastructure remains safe and customers’ desire to be more empowered efficient. SunWater also completed the and involved in local decision making. are very proud of the collective effort undertaken to complete the detailed Boondooma Dam flood repair works. SunWater successfully applied for business case for the Rookwood Weir We also supported Building Queensland grant funding from the National Water project, which will support agricultural on the completion of the Nullinga Dam Infrastructure Development Fund production, urban water supply and and Other Options preliminary business (NWIDF) in 2017–18 for Efficiency industrial developments throughout case, which estimated the proposed Improvement Projects (EIP) that will Gladstone and the Capricorn Coast. Nullinga Dam could provide up to 90,000 recover up to 14,000 megalitres of lost SunWater was announced as being ML of additional water per year for our Far water per annum. These projects see responsible for the construction of the North Queensland customers. The study SunWater contributing a combined $25.5 $352 million project in the 2018–19 state has set the wheels in motion for a detailed million towards the $28.2 million Mareeba budget and we’ll now put our planning business case to start in 2018–19. Dimbulah EIP and the $11.8 million into action as we progress towards Nogoa Mackenzie EIP that will benefit design ahead of a proposed start of Supportive stakeholders local irrigation customers by maximising construction by the end of 2019. We continued our journey to put opportunities for water delivery in those customers at the centre of everything areas. We carried out the Burdekin Haughton Water Supply Scheme Upgrade we do and improve value in every SunWater also worked closely with Feasibility Study, which involved interaction. SunWater has worked hard the Queensland Competition Authority assessing the viability of channel over the past year to strengthen our trust, (QCA) and state agencies in 2017-18 to upgrades, efficiency improvements and communication and responsiveness to guide discussion around the bulk water additional pipelines and storages. We customers. pricing review. Under this process, the also progressed the Bundaberg Channel 4 SUNWATER ANNUAL REPORT 2017-18 Chairman and CEO message A safe high-performance culture Improve infrastructure and plan for We made major strides this year in our the future efforts to further SunWater as an efficient We will be focused on delivering long- and dynamic workplace capable of
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