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Sydney Water Corporation Annual Report 2007

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Annual Report 2007 Contents Letter to Shareholder Ministers Report details The role of Sydney Water 01 The Hon Michael Costa MLC The Hon John Watkins MP Annual Report comments, copies Paper stock External production costs Sydney Water area 02 Treasurer Deputy Premier, Minister for If you have any comments about this This report is printed on environmentally- The external production costs for this Level 31 Transport, Minister for Finance Key achievements 03 Annual Report or would like additional friendly paper stock. Both cover and inside year’s Sydney Water Annual Report are Governor Macquarie Tower Level 30 copies, please write to Sydney Water at: pages contain 80 per cent recycled fibre about $28,100. External production costs Chairman’s review 04 1 Farrer Place Governor Macquarie Tower and 20 per cent pulp from sustainable during 2006-07 include: Email: [email protected] Financial highlights 2006-07 06 Sydney NSW 2000 1 Farrer Place forests. It is totally chlorine free. • Photography $3,800 Managing Director’s review 08 Sydney NSW 2000 Mail: Sydney Water Annual Report 2007 Performance summary 10 PO Box 53 • Proofreading $1,400 Sydney South NSW 1235 Review of operations: Dear Treasurer and Minister • Design and production $13,000 Key operations 12 • Printing of 1,500 copies $9,900 Helping develop a Report on performance for the year ended 30 June 2007 water efficient city 18 We are pleased to submit the Annual Report of Sydney Water Corporation Investing in infrastructure 24 for the year ended 30 June 2007. Going carbon neutral 26 The Annual Report was prepared in accordance with Section 24A of the Workplace 28 State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984. Legal changes 30 Board operations and governance 31 The financial statements for 2006-07, which form part of the Annual Report, have been submitted to and certified by the Auditor-General of Board members 32 New South Wales. Organisational chart and executive team 34 Yours sincerely Index 36 Report details Inside back cover Contact us Back cover Thomas G Parry Kerry Schott Chairman Managing Director This Annual Report reviews Sydney Water’s performance over the reporting period, 1 July 2006 to 30 June 2007. It covers financial, social and environmental aspects. The full content, including the financial statements and other regulatory information, is available at www.sydneywater.com.au. Copies are available at Sydney Water’s Bathurst Street, Sydney, Customer Centre. !NNUAL Front cover: 2EPORT North Head Sewage Treatment Plant The role of Sydney Water Sydney Water is a Sydney Water’s three principal objectives are to: statutory State owned • protect public health corporation, constituted • protect the environment under the State Owned • be a successful business. Corporations Act 1989. The priorities are: It operates under the • providing clean, safe drinking water Sydney Water Act 1994. • serving customers • helping develop a water efficient city Sydney Water’s purpose is to deliver • contributing to clean beaches, essential and sustainable water services oceans, rivers and harbours for the benefit of the community. • optimising resource use Sydney Water is Australia’s largest water • developing a safe, capable and utility. It supplies water, wastewater, committed workforce recycled water and some stormwater services to about 4.3 million people. • delivering an economically efficient business. To do this, Sydney Water: • employs about 3,000 staff • collects revenue for its water and wastewater services of $1.5 billion • manages assets with a replacement value of $24 billion • has operating expenditure of $1.1 billion. Sydney Water Annual Report 2007 Sydney Water area (Legislated local government areas) Sydney Water covers 12,620 square kilometres across Sydney, the Illawarra and the Blue Mountains "ROKEN"AY 0ALM 7INDSOR "EACH +ATOOMBA "LACKTOWN (ORNSBY 0ARRAMATTA 0ORT 0ROSPECT *ACKSON 7ARRAGAMBA 2ESERVOIR 3YDNEY $AM ,IVERPOOL "OTANY "AY ,AKE"URRAGORANG 3UTHERLAND 7ORONORA $AM #AMPBELLTOWN #ATARACT $AM !VON #ORDEAUX $AM $AM .EPEAN 7OLLONGONG $AM ,AKE 7INGECARRIBEE 2ESERVOIR )LLAWARRA 3HELLHARBOUR !REAOFOPERATIONS¯ SQKM 7ATERDELIVERYSYSTEM¯ SQKM 7ASTEWATERCATCHMENTSYSTEM¯ SQKM 3TORMWATERCATCHMENTSYSTEM¯SQKM 'ERROA 0 5 10 15 20 SCALE IN KILOMETRES Source / Graphics : SWC, Asset Management Sydney Water Annual Report 2007 Key achievements July 006 Received Banksia Environmental Award for business water saving program. Aug 2006 Issued 10,000th water efficient washing machine rebate. Sept 006 Commissioned Wollongong Recycled Water Plant. Oct 2006 Commenced expansion of Rouse Hill Recycled Water Plant. Commenced construction of Liverpool to Ashfield pipeline, Nov 006 part of recycled water grid. Employed 100 entrant trainees in Civil Maintenance and Construction. Dec 2006 Completed amplification of Shellharbour Sewage Treatment Plant. Jan 007 Completed Bondi Sewage Treatment Plant improvements. Achieved zero workplace lost time injuries. Feb 2007 15 graduates joined the Graduate Program. Sought tender to construct desalination plant. Mar 007 350th business joined Every Drop Counts Business Program. April Surplus property sales at Kirrawee, Chatswood and 2007 Camellia proceeded. May Met all Operating Licence requirements with full or high 007 compliance in 134 areas; moderate in three. June 2007 Delivered $648 million capital investment program. Sydney Water Annual Report 2007 Chairman’s review Sydney Water and the urban water powered by 100 per cent renewable industry generally are facing great energy. It will produce up to 250 million challenges. Most Australian capital litres of water a day – about 15 per cent of the water supply – and can be cities are managing a serious scaled up to double that size if required. imbalance between water supply Desalination will drought-proof Sydney. and demand. In addition to the desalination plant for There is little doubt that weather drinking water purposes, Sydney Water conditions affecting rainfall in the is committed to a substantial increase catchment area have undergone major in recycling. changes in recent years. With ongoing The Metropolitan Water Plan target for concerns about climate change and recycled water amounts to 12 per cent global warming, we cannot rely on of the total water supply to domestic, traditional means for securing water commercial and industrial users. The for a growing population. major investment in new recycling Securing Sydney’s water supply projects will ensure that Sydney Water “ ... we can no longer rely on meets this target in 2015. During this The 2006 Metropolitan Water Plan year, Sydney Water expanded recycling traditional dam storages indicated that without action the longer- in the Rouse Hill residential area. A large to meet the water needs term supply of water would not meet industrial recycling plant at Wollongong demand. To address this situation Sydney was commissioned. By providing of a growing city.” Water has responsibilities in three areas: BlueScope Steel with an alternative desalination, recycling and demand source of recycled water for industrial management. Various long-term targets use, the amount of water drawn from have been set under this plan and Sydney the Avon Dam for drinking water has Water will do whatever it can to ensure been significantly reduced. that it meets these obligations. Other recycling projects are under In February, Sydney Water went to the construction or in the planning stages. market with tenders to construct a The Western Sydney Recycled Water Plant desalination plant at Kurnell. A separate at St Marys is another large Sydney Water tender to build the pipeline systems from project with contracts now awarded. The Kurnell to Erskineville was also put to Camellia-Smithfield Industrial Recycling the market. The dam storage levels were Plant should commence construction at 34 per cent at this stage – not much in the next year. Together with many more than three years of water supply. small local schemes, these two new large The time needed to construct the plant is schemes should ensure that the recycling around two and a half years, so this step target is met. was timely. All the expert evidence is clear – we can no longer rely on traditional As well as meeting these challenges on dam storages to meet the water needs of the supply side, the residents of Sydney, a growing city. the Illawarra and the Blue Mountains have done more than their share on the The desalination plant is expected to be demand side. The total consumption of ready by the summer of 2009-10 and is water in 2006-07 is at the same level a cornerstone of the massive investment as in 1974, while the population has program to be undertaken by Sydney increased by 1.1 million. Water to help secure our water supplies well into the future. The plant will be Sydney Water Annual Report 2007 On the demand management side, Looking ahead “ ... the residents of Sydney, Sydney Water has two large programs in Given the uncertainty around climate operation. Under the WaterFix Program, change and rainfall patterns, and the Illawarra and the one in four households now have inevitable ongoing population growth, Blue Mountains have water efficient showerheads and other the focus during 2006-07 has been on water efficient devices installed. In the measures that balance water supply done more than their Stockholm prize winning Every Drop and demand. This focus necessarily will share on the demand side. Counts Business Program, more than continue for several years. 370 businesses are now saving significant The total consumption amounts of water. Together, these However, Sydney Water has not neglected of water in 2006-07 is at programs should save the equivalent its other obligations. Recognising of some nine per cent of the water supply Sydney Water’s objective to protect the the same level as in 1974, by 2015. environment, the Board of Sydney Water while the population has has formally committed to a carbon Finally, Sydney Water continues to work neutral strategy. The goal is to achieve increased by 1.1 million.” to reduce leaks in its own systems.
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