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
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Sydney Water Annual Report 2007 Key achievements
July 2006 Received Banksia Environmental Award for business water saving program.
Aug 2006 Issued 10,000th water efficient washing machine rebate.
Sept 2006 Commissioned Wollongong Recycled Water Plant.
Oct 2006 Commenced expansion of Rouse Hill Recycled Water Plant.
Commenced construction of Liverpool to Ashfield pipeline, Nov 2006 part of recycled water grid. Employed 100 entrant trainees in Civil Maintenance and Construction.
Dec 2006 Completed amplification of Shellharbour Sewage Treatment Plant.
Jan 2007 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 2007 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 2007 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. About 60 per cent carbon neutrality by 2012 18,000 km of pipes were scanned this and 100 per cent by 2020 across all our year using acoustic equipment to detect activities. underground leaks. Maintenance crews then proceed to fix the leaks and replace Savings are being made by generating pipes when required. our own electricity from biogas at sewage treatment plants. Hydro- Together, the substantial initiatives on electrical generation is being pursued demand management and new, more where it can be efficiently done. By 2009, secure water sources, will help to ensure Sydney Water expects to generate up to that the supply of water meets demand 20 per cent of its electricity needs, and well into the future. the desalination plant will be 100 per Water industry competition cent powered by renewable energy. In November 2006, the NSW Government On behalf of my colleagues on the Board, introduced the Water Industry I would like to thank Gabrielle Kibble Competition Bill. This Bill recognises that AO, who stepped down as Chairman in the monopoly part of Sydney Water’s May 2007. Gabrielle became Chairman business is the extensive water and during the water quality crisis in 1998. wastewater pipe network. To encourage Her time on the Board has been marked competition, these networks will shortly by rising environmental standards, be open to access by private sector large investment in infrastructure companies if they wish to move water or maintenance and more efficient wastewater from one point to another. operations. The retail or billing part of Sydney I would like to thank my Board colleagues Water’s business is open to competition and all management and staff for their under the Water Industry Competition continued enthusiasm and commitment. Bill, as are its water and wastewater I have no doubt that the entire treatment operations. The challenge organisation will continue to work hard of competition is welcomed by Sydney to meet the considerable challenges of Water as we continue to enhance our the future. efficiency and effectiveness as one of the world’s leading water and wastewater businesses. Thomas G Parry Chairman
Sydney Water Annual Report 2007 Financial highlights 2006-07
Revenue below budget due to continuing water restrictions and demand management. Operating expenses below budget due to productivity gains and low depreciation expenses. Capital expenditure just above budget. Increasing debt. Increased sales of surplus property reduced new borrowings.
Total income* Total expenses* Total capital expenditure ($1,692 million) ($1,332 million) ($648 million)
42% Service charge 22% Employee costs 32% Renewal 38% Usage charts 19% Bulk water and filtration 27% Growth 9% Developer contributions 14% Financing charges 15% Government programs 5% Social program subsidies 14% Other expenses 11% Reliability 5% Other 13% Maintenance and contractors 6% Mandatory standards 12% Depreciation and amortisation 5% Capitalised interest 7% Materials, plant and equipment 4% Business efficiency *Figures have been rounded
Profit before tax* Total debt Capital expenditure
400 3,500 700 2
350 649 3,000 600 360 276. 3, .5 300
2,500 2,875 500 520 7
250 2,639.2 25
2,000 400 439
200 225
1,500 300 $ million 150 $ million $ million
1,000 200 100
500 100 50
0 0 0 7 7 7 6 6 5 5 06 05 -0 -0 -0 -0 -0 -0 -0 2004- 2005- 2006 2004 2004 2005 2005 2006 2006
*Excludes superannuation adjustment
Sydney Water Annual Report 2007 Profit and loss*
2005-06 $M 2006-07 $M Income from continuing operations 1,540 1,692 Total expenses excluding interest expense 1,112 1,152 Profit before interest and tax 428 540 Interest expense 171 180 Profit before tax 257 360 Taxation expense 135 103 Profit after tax 122 257 Dividends payable 193 140 Return on shareholders’ funds percentage 1.9 3.6
*Excludes superannuation adjustment
Summary balance sheet
2005-06 $M 2006-07 $M Total assets 10,819 12,296 Total borrowings 2,875 3,276 Other liabilities 1,460 1,780 Net assets 6,484 7,240 Represented by: Asset revaluation and other reserves 1,793 2,312 Contributed equity 3,108 3,108 Retained earnings 1,583 1,820 Total shareholders’ funds 6,484 7,240 Capital expenditure 520 648
Financial performance summary In its financial statements, Sydney Water Sydney Water invested $648 million in In 2006-07, Sydney Water achieved is required to reflect changes in its liability 2006-07 on new capital infrastructure a profit before tax (excluding for future superannuation payments to its and borrowed $420 million to help superannuation adjustments) of staff. These changes are related to changes finance these new assets. Total debt $360 million on total revenues of in investment markets and other factors. outstanding at the end of the year increased to $3,276 million. The need $1,692 million – an increase of In 2006-07, actuarial gains on to borrow for new capital investment $152 million on the previous year. superannuation liability amounted to was reduced in 2006-07 by the sale This increase was largely due to $112 million before taxation and the of surplus property and other assets, developer charges in the form of taxation impact of these gains was which provided cash proceeds of contributed assets in the Lane Cove $34 million. Including these amounts, $65 million during the year. Tunnel, the M7 and the Cross City net profit after tax for the year was Tunnel. Net profit after tax was $336 million. The NSW Government Overall, Sydney Water achieved a strong $257 million, more than double accepted a dividend of $140 million financial result in 2006-07, despite lower the figure for the previous year. for 2006-07, a reduction of $53 million than expected revenues from water sales Total expenses for the year were compared to 2005-06. This agreed due to continuing restrictions, recycled $1,332 million, an increase of 3.8 per reduction reflected the substantial capital water programs and water saving cent over 2005-06. The increase includes investment program facing Sydney Water. initiatives in homes and businesses. While the financial return on assets substantially higher interest costs and Total assets at the end of 2006-07 were and dividend distributions did not costs related to activities to manage $12,296 million, an increase of $1,477 meet normal commercial standards, water demand. Underlying operating million over the year. Total shareholders’ Sydney Water’s financial position and costs rose less than the consumer price equity also increased during the year performance did improve during index due to the success of efficiency to $7,240 million and the after tax the year. and productivity improvements. profit represented a 3.5 per cent return on equity.
Sydney Water Annual Report 2007 Managing Director’s review
During 2006-07, Sydney Water’s Productivity performance has been pleasing. Increasing productivity is becoming more The main achievements were the difficult as the easier gains have been successful delivery of the largest made. That said, Sydney Water’s operating costs per property declined by about capital program ever, improved 2.5 per cent. Operating expenditure productivity, significantly better remained steady year-on-year after safety outcomes and higher allowing for additional activities that expenditure on training. Sydney were required under the Metropolitan Water also met its Operating Water Plan. About $30 million in savings Licence requirements. were achieved in 2006-07. Property sales for the year were Capital program $65 million. This included properties at In 2006-07, capital expenditure was Miranda, Padstow, Kirrawee and Frenchs $648 million, about $120 million more Forest. The proceeds lowered debt and than in 2005-06. Target expenditure this led to savings on land related taxes. year was exceeded by $39 million. This “The desalination plant Savings continued in insurance costs was mainly because of the acceleration and fleet management. Insurance is the largest capital of the South Western Sydney sewerage premiums for 2006-07 were $14 million scheme. In previous years, Sydney Water project Sydney Water (59.6 per cent) lower than for 2003-04. has struggled to meet its planned capital Sydney Water achieved these significant has managed since program and the improved project savings through improvements in delivery this year is notable. the construction of management of risks and information Warragamba Dam The major project that commenced this supplied to insurers. year was the desalination plant. This Owing to contract changes and safety in the 1950s.” project will extend over the period to programs, insurance costs have also 2009-10. It is the largest capital project been reduced for the vehicle fleet Sydney Water has managed since the over the past two years. There was a construction of Warragamba Dam in 42 per cent reduction in comprehensive the 1950s. insurance and a 45 per cent reduction in During 2006-07, the major projects that compulsory third party green slip costs. were completed included an upgrade The vehicle fleet has been reduced in of Bondi Sewage Treatment Plant, the number and the engine capacity of Wollongong Recycled Water Plant, vehicles has decreased. rehabilitation of corroded concrete A big effort has been made to clean pipes in the Malabar sewer system up Sydney Water’s records and to file and augmentation of the water supply efficiently. Over 2 km of waste paper system at Mt Pritchard/Hammondville. has been recycled from the cleanup and Sewerage services were also provided electronic record management systems to properties at Mulgoa, Wallacia and have been upgraded. Silverdale.
Sydney Water Annual Report 2007 “There is still more to do, Safety Thank you Sydney Water achieved its lowest ever The community has played a significant but the target of zero lost time injury frequency rate (LTIFR) role in securing Sydney’s water supply. injuries is getting closer.” of 6.6 per cent. There is still more to do, Water efficient use is an increasing but the target of zero injuries is getting feature of the properties that Sydney closer. In February there were zero injuries Water serves. across Sydney Water, the first month that I would also like to acknowledge the such a result has ever been achieved. achievements of my former Chairman, A Giving Through Safety Program for Gabrielle Kibble AO, during her 10 years charity was introduced. The depots each with Sydney Water. I greatly appreciated nominated a charity of their choice and, her support in my first year as Managing when a depot met its safety targets, Director. Sydney Water made a donation to that depot’s nominated charity. Finally, I thank the management team and all staff for their continued Training and competency commitment. This has enabled us to The effort to improve training and achieve such pleasing results this year. competency has continued. The Graduate Program was expanded by 15 people, 15 new apprentices were taken on and about 100 new entrant trainees were added to Civil Maintenance and Construction. Competency programs Kerry Schott were implemented and staff Managing Director participated in several engineering and scientific conferences. With an ageing workforce, the continued addition of younger people and extra training is essential. Financial results The year was marked by lower water sales than anticipated, due to both the ongoing water restrictions and ongoing water saving measures. There was a small increase in prices (consumer price index plus 0.6 per cent). With the tight control kept on operating expenses, the net profit after tax was a pleasing $257 million. This result excludes actuarial adjustments for defined benefits superannuation. With that adjustment, the net profit after tax for 2006-07 was $336 million.
Sydney Water Annual Report 2007 Performance summary
An integrated overview of Sydney Water’s sustainability performance 2006-07
Goal Performance statement Water quality compliance Providing clean, safe Water quality: continued full compliance with the Australian Drinking Water Guidelines 2004 drinking water Customer satisfaction with water: received feedback indicating high satisfaction with water services Water efficiency Demand management: achieved lowest water use in 30 years Helping develop a water Reuse and recycling: increased recycled water use to over 21 billion litres a year efficient city Water leakage: an overall declining trend at 8.4 per cent Drinking water drawn: remained low due to water conservation and drought water restrictions Licence compliance Sewage treatment system discharges: met majority of licence conditions – there was an Contributing to clean increase in dry weather overflows due to power failures beaches, oceans, rivers Environmental performance monitoring: ongoing monitoring of ecosystem health and harbours indicates minimal impact due to wastewater discharges Trade waste agreements: continued improvements through industry participation and education Eco-efficiency Energy consumption: will offset consumption by further investment in renewable energy and generation of carbon credits Waste management: maintained high levels of waste reused and recycled to 97 per cent Optimising resource use of solid waste generated By-products: reused 100 per cent of biosolids and water treatment residuals Flora, fauna and heritage: made net gains in native vegetation and continued commitment to the conservation of natural and cultural heritage Customer service Customer satisfaction: customers have a positive view of service delivery Serving customers Service quality and system performance: met all targets despite increased incidents due to drought Social assistance: assured special needs customers access to services Workforce, safety and capability Safety: reduced incidents and achieved an improving trend towards the zero lost time injury target Developing a safe, capable, committed workforce Capability: continued deployment of national competency programs and staff training improved staff skills and knowledge Entry level employment: graduate, apprenticeship and trainee programs supported strong internal demand for qualified staff Business efficiency Profitability: exceeded asset sales and cost management targets despite reduced revenue from water sales Delivering an economically Debt servicing: increased interest expenses and debt to fund a comprehensive capital efficient business expenditure program Return on assets and equity: remained commercially low but with a small improvement Infrastructure management: continued to invest in the maintenance and renewal of infrastructure
10 Sydney Water Annual Report 2007 Review of operations
Key operations 12
Helping develop a water efficient city 18
Investing in infrastructure 24
Going carbon neutral 26
Workplace 28
Sydney Water Annual Report 2007 11 Review of operations
The NSW Government’s Metropolitan Key Water Plan sets out a range of measures to balance water supply and demand operations through to 2015. Under this plan, Sydney Water has responsibility for a suite of recycling initiatives, the construction of a desalination plant and various demand management programs. Sydney Water’s residential and business customers have adhered to water restrictions since 2003 and significantly improved water efficiency. As a result, Sydney Water is selling around the same amount of water this year as it did in 1974, despite the population growing by around 1.1 million. Sydney Water typically spends between $500 and $600 million a year on capital expenditure. In 2006-07, Sydney Water spent Using the same amount of water $648 million – its largest ever capital program. now as in 1974 despite growing Sydney Water achieved operating efficiency improvements by about 1.1 million worth $30 million in 2006-07. Productivity improvements are running at about 2.5 per cent a year. $30 million worth of operating Providing reliable, clean, safe drinking water efficiency improvements in In 2006-07, Sydney Water supplied about 500 billion litres of 2006-07 water to over 1.7 million homes and businesses. About 70 per cent of the water supplied is for residential use and 30 per cent for industry, business and government. Sydney Water distributes treated water via a network of 21,000 km of water mains, 261 reservoirs and 155 pumping stations. Bulk water is mainly sourced from the Sydney Catchment Authority. The raw water is treated to comply with the Australian Drinking Water Guidelines 2004. The water is tested and monitored to ensure these guidelines are met. In 2006-07, Sydney Water’s drinking water quality complied with the requirements of the Australian Drinking Water Guidelines 2004, as set down by NSW Health and the Independent Pricing and Regulatory Tribunal (IPART) through the Operating Licence and Memorandum of Understanding. Further information on monitoring and results is available at www.sydneywater.com.au\waterquality.
12 Sydney Water Annual Report 2007 Clean beaches, oceans, rivers The performance of the sewerage Cronulla and in the Illawarra. Seventeen and harbours network is being improved through inland treatment plants discharge Sydney Water collected and treated more the SewerFix Program. Sydney Water tertiary treated wastewater into the than 487 billion litres of wastewater in monitors and repairs the network to Hawkesbury-Nepean River. minimise the risk of sewers failing and 2006-07. The wastewater system has During the year, Sydney Water completed polluting the environment or causing 23,500 km of sewer pipes, 663 sewage- major improvements to: pumping stations and 30 sewage repeated disruption to sewerage services for customers. • North Head Sewage Treatment Plant treatment plants. – $150 million During 2006-07, Sydney Water spent Treated wastewater is either reused • Bondi Sewage Treatment Plant – about $33 million improving the or discharged to rivers or the ocean $95 million in accordance with environmental wastewater system by cleaning, repairing and relining pipes. • Shellharbour Sewage Treatment conditions. These conditions are set out Plant – $32 million. in Sydney Water’s Operating Licence and Sydney Water is reducing wet weather are established by the Department of overflows in the Sydney CBD, Cronulla, The upgrades improved performance Environment and Climate Change (DECC) Penshurst, Peakhurst, East Corrimal, reliability and ocean water quality. to protect the environment. Winmallee and Bondi catchments. In wet Biosolids are the solid by-product To improve reliability and to ensure weather, water can enter the sewerage captured during the treatment of performance standards are met, Sydney system via cracks in pipes, faulty joints sewage. In 2006-07, Sydney Water reused Water will: or illegal roof water connections. 100 per cent of biosolids captured by its • reduce dry and wet weather Cracks are usually caused by roots that sewage treatment plants. Forty eight per sewage overflows obstruct the flow and eventually cause cent of water filtration plant residuals blockage. This is a particular problem were beneficially reused and the balance • upgrade sewage treatment plants during drought. Root damage can also stored on site for further reuse. Sydney • reuse biosolids let stormwater into pipes. During heavy Water also reused over 60 per cent of • establish sewered communities, rain this extra water can overload the grit and screenings for horticultural use. especially in environmentally sewerage system, causing it to overflow Construction progressed on a new sensitive areas. into waterways and the environment. biosolids management facility at North Head Sewage Treatment Plant. When it Shellharbour Sewage Treatment Plant About 3,000 km of the sewerage network is over 100 years old. Some sewers are is completed in late 2007, the number brick or concrete and have deteriorated of biosolids truck movements from the and corroded over time. An Avoid Fail plant will be significantly reduced. This Program is followed to assess the will be of benefit to the local community condition of these sewers to ensure and save on transport costs. their structural integrity. Sewers have Major capital investment is required been rehabilitated in the areas of Botany, to deliver wastewater services to Smithfield, Fairfield, Coogee and the towns identified under the Priority Illawarra. Sewerage Program. The program Around 75 per cent of the wastewater provides wastewater services to is treated at the three largest plants at unsewered communities to reduce risks Malabar, North Head and Bondi. It is to public health and the environment then discharged through deepwater in sensitive areas. ocean outfalls. The outfalls continue Over 3,500 homes and businesses across to provide clean, safe water quality 11 towns and villages have already at coastal beaches with no adverse had the opportunity to connect to the environmental impacts. sewerage system. Work is continuing on A further 10 per cent is treated to higher this program. In 2006-07, Sydney Water secondary or tertiary levels at another spent around $60 million on the program. five coastal plants at Warriewood,
Sydney Water Annual Report 2007 13 Review of operations Key operations
Desalination Dam storages and inflows Powered by renewable Rainfall in the Sydney catchment area is extremely variable. It is for this reason that Sydney, the Illawarra and the Blue energy, the desalination dam storages were designed to hold up to Mountains also have an increasing plant will produce up to 250 eight years of water supply. In London and population. Since 1974, the population Tokyo, the storages are 12 weeks or less. has increased by over a million. In the next million litres of water a day. 25 years, the population will increase by Rainfall in the catchment area also This is about 15 per cent of another million. appears to be lower than in the past. It is the water supply. If necessary, too early to say definitely whether this is The highly variable and uncertain rainfall due to climate change, long rainfall cycles and the city’s growing population mean its capacity can be increased or some other factor. that more water is needed to guarantee to 500 million litres a day. Sydney’s water supply. The chart below is an estimate of the This source of water does storage inflow into Warragamba Dam In February 2007, Sydney Water released and the metropolitan dams over the last requests for tenders for a desalination not depend on rain and adds century. It excludes Shoalhaven transfers. plant. Dam storage levels were at 34 per significantly to the security The inflows reflect a 50-year cycle of low cent. At this level, there is about three of the water supply. rainfall (to about 1950), about 40 years of years of water storage, and to construct higher rainfall to 1990, and what now may a desalination plant takes about two and Drinking water produced by the plant be a further low rainfall cycle. a half years. Leaving the decision longer will be treated to standards that meet would have led to a risk of running out of Australian Drinking Water Guidelines The latest low rainfall period has yielded water. and NSW Health requirements. It will be significantly less inflows than the higher indistinguishable from Sydney’s current rainfall period. Of more concern is that the drinking water. recent low rainfall period has much lower inflows than those of the earlier part of The desalination plant will use reverse the last century. osmosis technology. Seawater is drawn into the plant through a membrane at Inflows to Sydney’s Hawkesbury-Nepean dams (excluding Shoalhaven transfers) high pressure. The membrane acts like a microscopic strainer that removes salt 8000 and other impurities from seawater to produce drinking water. 7000 Around 60 per cent of the water drawn into the plant will be returned to the ocean as 6000 seawater concentrate. The concentrate will be mixed back into the ocean. It is within 5000 natural seawater salinity around 50 to 75 metres from the discharge point. 4000
Annual inflow, GL The discharged seawater concentrate 3000 is one to two degrees warmer than the 2155 GL water drawn into the plant. The ocean 2000 goes back to normal within 75 metres from where the discharge is released into 951 GL 1000 614 GL the Tasman Sea.
0 1975 1927 1957 1987 1909 1915 1921 1933 1939 1945 1951 1963 1969 1981 1993 1999 2005
Source: Sydney Catchment Authority
14 Sydney Water Annual Report 2007 Sydney Water will ensure that the marine environment is protected during the construction and operation of the desalination plant. Sydney Water has already started a marine and estuarine monitoring program to monitor ocean and bay water quality and ecology. The following measures will prevent impacts on local flora and fauna: • maintaining or replacing habitat for animals • constructing the pipeline in areas with very little vegetation • avoiding damage to large native trees • controlling noxious and exotic weeds • replanting native plants in areas that trenching has disturbed • removing construction debris and soil as soon as possible. The desalination pipeline route in the bay is over bare sand or patchy seagrasses. The small sections of seagrasses will be replanted or avoided.
Community impacts along the Step 4 Reverse osmosis removes salt desalination pipeline route will be and other impurities from the seawater minimised as much as possible. Step 2 Step 3 Screening Filtration Step 6 ‘Trenchless’ construction methods, such To Sydney Water’s as micro tunnelling, will be used where drinking water supply Step 1 possible instead of digging up streets. Seawater intake Once construction is finished, streets and all work areas will be restored in Outlet tunnel Step 5 consultation with the community. Treatment to drinking water standard
The desalination plant will be owned by Seawater concentrate is Sydney Desalination Plant Pty Ltd. This is Intake tunnel safely returned to the ocean a wholly owned subsidiary company of
Sydney Water. The subsidiary company has Step 7 Seawater concentrate outlet Not to scale been established to ensure transparency and accountability for the delivery and How the desalination plant works operation of the desalination plant. The plant is scheduled for completion in 2009-10. The contract for the plant’s construction and operations is on the Sydney Water website.
Sydney Water Annual Report 2007 15 Review of operations Key operations
Ocean water quality will continue to Improving reliability be protected at Bondi Beach following Bringing back at Bondi the completion of the $95 million Bondi aquatic life in the Sewage Treatment Plant Reliability Improvement and Modernisation Blue Mountains Program in January 2007. The Blue Mountains City Council Most of the Bondi plant is 40 to transferred its sewage treatment 50 metres underground in chambers plants and wastewater system to cut from sandstone. Sydney Water Sydney Water in 1980. Since then, renewed several parts of the plant. Sydney Water has decommissioned This included devices that distribute the old, poorly performing plants and control the flow of wastewater and transferred the wastewater to pumps that send treated wastewater a new, upgraded sewage treatment to the ocean. A new ventilation system plant. The creeks into which the and an improved scrubbing system will wastewater previously discharged improve odour management. have taken about two years to return to normal biotic health. The project included tunnel excavation, the removal of 20,000 tonnes of soil, the Nine old sewage treatment plants installation of 1 km of pipework and have been closed. Three are still in 80 km of electrical cable. use. Two will be decommissioned as part of the Upper Blue Mountains Plant automation is improved to provide Sewerage Scheme by 2009. This a better and safer working environment means these plants will no longer for staff. release treated wastewater into the Sydney Water also installed a system to environment that includes the Blue recycle around three million litres Mountains World Heritage Area. of treated wastewater a day. By early 2009, a further 1,400 properties in Mount Victoria, Blackheath and Medlow Bath will be able to connect to a new sewer system. This will improve water quality in local creeks and streams and reduce risks to public health from poorly performing septic tanks.
“Sydney Water’s sewerage system is Professional abseilers inspect and test the making Blue Mountains condition of internal walls waterways clean again.” of the digester at Bondi Sewage Treatment Plant.
16 Sydney Water Annual Report 2007 Serving customers Sydney Water continues to support Contact Centre Sydney Water serves almost 4.3 million organisations and activities that focus people, including about 190,000 on youth and the environment. In a finalist 2006-07, Sydney Water strengthened commercial and industrial properties. Sydney Water’s Contact Centre was a its presence in western Sydney by To ensure customer satisfaction, Sydney state finalist in the 2006-07 Customer sponsoring the Parramatta Riverbeats Water attempts to: Service Institute of Australia (CSIA) Festival. It also provided in-kind support let customers know when new or Service Excellence Awards – Call Centre • to WaterAid Australia, which helps repair work is to be done section. poorer communities living without • provide choice in how to make safe water and sanitation. Sydney Water The Contact Centre operates 24 hours a bill payments sponsored a number of key industry day, seven days a week. Fast connection • make it easier for customers to conferences, profiling water recycling to a person who understands deal with Sydney Water and demand management. customers’ issues and can deal with them on the spot was behind its high • help special needs customers Staff also chose four charities to support achievement. • support the community. over the next three years. Through this initiative, Sydney Water donated Qualitative, rather than quantitative During 2006-07, Sydney Water continued to $25,000 each to: performance measures, mean staff can obtain customer and community feedback • The Children’s Hospital at Westmead focus on delivering better customer on its performance. Sydney Water also seeks service. advice and feedback from the Corporate • CanTeen Customer Council and the Commercial and • Multiple Sclerosis Society of NSW During the year, the Contact Centre: Industrial Customer Forum. • Lifeline Australia. • answered over 900,000 calls, of which Customer enquiries are dealt with at the 240,000 were emergency calls Sydney Water also offered to extend point of contact, if possible. Customers terms or instalment plans to customers • responded to over 40,000 emails, an are increasingly using the website as their finding it difficult to pay their bill and increasingly popular contact channel preferred way to pay their bills and find gave rebates for large, low-income • achieved average call answer speed information. During 2006-07, over 400,000 households. of 21 seconds and answered 83 per customers completed transactions through cent of calls within 30 seconds the website and other automated options. Key performance results for the year included the following: • achieved 97.4 per cent first call The approvals process for developers resolution by spending more time • The number of properties affected and builders has been made faster and with customers. easier and the information available on by planned water interruptions Surveys over the past five years show the website has increased. A number increased by about 14 per cent. that customer satisfaction when of improvement projects are underway, This was largely due to increased contacting Sydney Water continues to including upgrading the Contact Centre work on water main renewals and improve. phone system to improve response leak reduction. times and investigating a new customer • Customers experiencing low water management system to improve the way pressure decreased by 57 per cent all contacts are handled. compared to the previous year. During 2006-07, there was a 3.5 per cent • Dry weather sewage overflows increase in the number of enquiries and increased by three per cent compared to complaints about water, wastewater and last year. This was mainly caused by clay billing matters. Sydney Water resolved soils contracting during drought and about 90 per cent of complaints within tree roots choking the sewer pipes as Over 2006-07, the Sydney 10 days. they sought moisture. • 99.7 per cent of metered properties Water website was visited If a customer is dissatisfied with Sydney had their meter read at least once Water’s response, they can contact the 6.4 million times. This is last year. Sydney Water aims to read Energy and Water Ombudsman of meters once a quarter. Sometimes an increase of 14 per cent NSW (EWON) for an independent meters are inaccessible due to locked on last year. and alternative review. premises and dogs.
Sydney Water Annual Report 2007 17 Review of operations
Helping develop The 2006 Metropolitan Water Plan sets out how the NSW Government intends to secure the water supply for Sydney, a water the Illawarra and the Blue Mountains, in both the short and long term. efficient city This means having sufficient water to: • meet the needs of a growing city • protect river health through environmental flows • withstand current and future droughts and the impacts of climate change. Under the plan, Sydney Water is responsible for: • increasing the amount of wastewater recycled to 70 billion litres a year by 2015 • delivering water efficiency programs, such as WaterFix and the Every Drop Counts Business Program • reducing leaks and breaks in its own water system The amount of wastewater • the construction of a desalination plant to increase recycled has risen from water supply. 15 to over 21 billion litres a year Meeting the demand for water Sydney Water has one of the most extensive water Water savings of more than conservation programs in the world. Other water utilities visit to learn about these programs. In 2006-07, water 56 billion litres have been savings of over 56 billion litres were achieved. achieved in the past year Sydney Water, under its Operating Licence, must reduce per capita water use, excluding recycled water, to 329 litres a day by 2011. In 2006-07, total water use was 328 litres per capita a day, down from 341 litres the previous year. These savings are due to both water conservation programs and current water restrictions.
18 Sydney Water Annual Report 2007 Recycling In 2006-07, Sydney Water increased the Recycling for industry amount of wastewater recycled from • Recycled water will be provided to Target: Recycle 70 billion litres 15 to over 21 billion litres a year. This was industry in the Camellia and Smithfield of wastewater a year by 2015 due to: areas. The new plant, at Fairfield Sewage • the commissioning of the Wollongong Treatment Plant, is expected to be Recycling Plant in September 2006 to operational in mid 2010. The project supply BlueScope Steel with recycled was put to tender in 2006-07 and water – this is Australia’s largest will be delivered and operated by the industrial water recycling project private sector. • the expansion of recycling in Rouse Hill, • The Wollongong Recycled Water Plant Australia’s largest residential recycling will be expanded to provide recycled scheme water to the Port Kembla Coal Terminal A reverse osmosis unit. Reverse osmosis is a key and irrigation customers from mid 2008. process technology producing recycled water for • many smaller local projects for the BlueScope Steel. irrigation of farms, golf courses, sports • Work on a new recycled water project at grounds, parks and racecourses West Camden Sewage Treatment Plant • Sydney Water’s use of recycled water neared completion. This will irrigate turf, at its sewage treatment plants. lucerne crops and dairy farm pastures at the Elizabeth Macarthur Agricultural By 2015, Sydney, the Illawarra and the Blue Institute. Mountains will be recycling 70 billion litres of wastewater a year – about 12 per cent Recycling water to replace some of the water supply. This includes recycling environmental flows for homes, industry, irrigation and to • In June, the Board approved the contract replace environmental flow releases from for the advanced wastewater recycling Warragamba Dam to the Hawkesbury- plant at St Marys. The plant will provide Nepean River. recycled water to replace drinking water currently released from Warragamba Recycling for homes Dam for river health. The preferred • Work began in January to more than tenderer was Deerubbin WaterFutures, double the capacity of the Rouse Hill a consortium comprising GE Water and Recycled Water Plant. The scheme, Process Technologies, United Group now serving 17,000 properties, will Infrastructure and McConnell Dowell. grow to serve 36,000 homes over the Wastewater from St Marys, Penrith next 20 years. and Quakers Hill sewage treatment plants will be treated at this new • Work is well advanced on a scheme to provide recycled water to 1,500 recycling plant. homes in Ropes Crossing by 2009. • Planning progressed on providing Along with other major recycled water to about 16,000 new recycling projects, the homes in new release areas in and around Hoxton Park in Sydney’s St Marys plant will increase south west. The scheme is due for the total recycled water commissioning in 2010. supply to 70 billion litres, • In the coming decades, more than 160,000 homes in Sydney’s new growth about 12 per cent of the areas will be supplied with recycled water. water supply by 2015.
Sydney Water Annual Report 2007 19 Review of operations Helping develop a water efficient city
Existing recycled water projects and potential recycled water areas
NW Growth Sector Rouse Hill
NW Growth Sector Parramatta Road Rouse Hill Corridor
SW Growth Botany Sector Infill Hoxton Park Parramatta Road Corridor
SW Growth Botany Sector Infill Hoxton Park
Wollongong
Blue Scope Steel
LEGEND Existing areas Areas under investigation Potable water supply area Liverpool to Ashfield pipeline
LEGEND Existing Areas SCALE IN KILOMETRES Areas Under Investigation Potable Water Supply Area Liverpool to Ashfield Pipeline
Existing Recycled WaterBlue Projects Scope & Potential Recycled Water Areas Steel 0 5 15 20
Asset Information & Standards - G.Mordant (Oct'07)
20 Sydney Water Annual Report 2007
Asset Information & Standards - G.Mordant (Oct'07) Providing recycled water for use BlueScope uses the highly treated Supplying recycled by industry saves drinking water. wastewater 24 hours a day in iron and water to BlueScope Steel in Port Kembla is Sydney steel making processes, for cooling plant Water’s largest customer. Prior to the and equipment, and for dust suppression. BlueScope Steel commissioning of the Sydney Water recycled water plant, BlueScope Steel The project, part of the Illawarra used about 13 billion litres of drinking Wastewater Strategy, has helped water a year. improve water quality at local Sydney Water began commissioning beaches. Fishermans Beach at the Wollongong Recycled Water Plant Port Kembla now receives the in September 2006. highest water quality rating from By providing BlueScope Steel with the Department of Environment an alternative source of water, the and Climate Change’s Beachwatch amount of drinking water drawn Program. from the Avon Dam has been Sydney Water plans to extend the recycled significantly reduced by up to water supply to other local customers, 7.3 billion litres a year. This including the coal loader and the nearby is around 17 per cent of the golf course, to save more drinking water Illawarra’s water supply. and further reduce the discharge of treated wastewater to the ocean. BlueScope Steel using highly treated recycled water in its steelmaking process.
Recycling 70 billion litres a year by 2015
80 St Marys 70
60 Camellia 50
40 Wollongong 30 Rouse Hill
20 Average Recycled Water Volume (GL/yr)
10
0 6 8 9 3 0 1 2 3 1 2 4 5 7 -1 -1 -1 -0 -0 -0 -0 -0 -0 -0 -0 -0 2013-14 2014-15 2003 2004 2012-1 2011 2005 2007 2008 2009 2010 2002 2001 2000 2006
Sydney Water Annual Report 2007 21 Review of operations Helping develop a water efficient city
Residential water efficiency Business water efficiency • 27 major NSW Government owned Households use around 70 per cent of the Industry, business and government use sites were audited. Another 23 audits water supplied by Sydney Water. During about 30 per cent of water supplied by are underway 2006-07, residential customers used Sydney Water. • Sydney Water provided schools with a almost seven billion litres a year less than rebate of up to $2,500 for installing a The Every Drop Counts (EDC) Business during the previous year. rainwater tank. In 2006-07, 115 schools Program partners with large water users received a rebate, bringing the total • One in four households have now to achieve efficiencies. Sydney Water is to 261 schools. Over 60 schools also participated in WaterFix – Sydney now working with about 370 businesses undertook a water audit and developed Water’s most successful water saving – saving about 11 billion litres a year. program. A plumber visits the home to a water saving plan install water efficient showerheads, flow In 2006, Sydney Water recognised • In addition, Sydney Water completed regulators for taps, flush restrictors in the following businesses for their or began a number of pilot programs single flush toilets and to check for and achievements in water savings: in 2007. repair any minor leaks. • BlueScope Steel – largest volume • Sydney Water distributed more than reduction 90,000 Do-It-Yourself Water Saving Kits. • TAFE NSW Western Sydney Institute: • More than 12,000 residential customers Blue Mountains – largest percentage received a rebate of up to $800 for reduction Five installing a rainwater tank. In total, over • Boral Quarries – largest percentage stars for 36,800 rebates have been paid. Key Performance Indicator reduction low water use • About 54,000 residential customers • Cadbury Schweppes and Coca Cola received a $150 rebate for buying a new Amatil (joint winners) – innovation Investa Property Group became water efficient washing machine. Over the first business to receive a 5-star • Investa Property Group – sustainable rating as part of the EDC Business the past year, the NSW market share processes and practices. Program’s One-2-Five water diagnostic. for a 4-star or 5A washing machine has Sydney Water progressed a number The diagnostic identifies strengths more than doubled to 46 per cent. of other programs with business and and weaknesses in water management • Almost 5,000 customers participated government. This included: and actions for improvement. Since in Love Your Garden, a new garden 2002-03, Investa has achieved a • 26 government projects funded watering advisory service, launched in 38 per cent reduction in water use through the Pilot Water Savings Fund, February 2007. in its NSW operations. It is the largest with 22 projects now completed. The owner of commercial property number completed during 2006-07 on the Australian Stock more than doubled Exchange.
Award for waterless wok In July 2006, Sydney Water received the Banksia Environmental Award for developing a waterless wok stove. The stove saves about 5,000 litres of water a day. There are over 2,000 wok stoves in greater Sydney. If they were all replaced with a waterless wok stove, the savings would be significant.
22 Sydney Water Annual Report 2007 In greater Sydney, water-based cooling Speedibake has boosted production Investing in cooling accounts for a significant amount of the without increasing overall water use. water used by industry and businesses. tower savings • Bottle manufacturer O-I makes half the Sydney Water is working with large bottles sold in Australia at its Penrith industrial and commercial customers to plant. Over two thirds of the water is improve cooling tower efficiency. This used in 18 cooling towers. The towers involves audits of facilities and providing cool furnaces, compressors and finished guidelines for cooling towers. bottles. O-I has cut its water use by • Bread maker Speedibake has installed almost a third by increasing the number efficient cooling towers at its Ermington of times water circulates in each cooling factory. Speedibake also installed a tower. It also made changes to the more efficient steam boiler and other cooling tower chemistry to improve its amenities. As a result, it has cut the operations and introduced two hybrid- water needed to produce each kilogram cooling towers that, depending on of baked product by 30 per cent. conditions, can operate without water.
Since joining the Every Drop Counts Business Program, O-I has made excellent inroads into saving water at its Penrith plant.
Reducing leaks and breaks During 2006-07, Sydney Water: Sydney has a large urban water network • inspected over 18,000 km of pipes for of about 21,000 km of pipes. That is the hidden leaks, using acoustic devices that distance from Sydney to Los Angeles pick up the noise water makes as it leaks and back. from a pipe Leaks are experienced by every water utility • installed pressure reducing valves in around the world. At around 8.4 per cent high-pressure areas – 12 schemes water leakage, Sydney compares favourably are underway. There were delays in with other water utilities. In the United implementing full pressure control after Kingdom, leakage is between 12 and installation so that customers could 15 per cent. Parts of London have reached assess and modify their fire protection 20 per cent. Singapore has a modern and systems if applicable relatively small water system which is • improved response times by having probably the best in the world at around crews available 24 hours a day, seven five per cent leakage. days a week, and introduced an Working on corroded pipes afternoon shift to ensure that crews were available to attend to emergency Developed in the United Kingdom, Sahara calls at key times. One-person crews pinpoints leaks that no other technology were also formed to respond quickly, can. It works by placing a sensor inside assess leaks and take immediate action the pipe, where it then travels along with • installed 34 bulk water flow meters the water flow for up to two kilometres. to help identify where leaks occur If it passes a leak, it detects the sound the water generates and alerts the • replaced about 140 km of water mains. system’s operator. In August 2006, Sydney Water trialled Sydney Water will use Sahara on a case- the Sahara leak detection system, a by-case basis where known, but difficult revolutionary new device used to check to solve leaks are found on mains. for leaks in 12 large water mains around Sydney. To limit costs and broaden the understanding of technology, Sydney Water worked with Melbourne Water, Yarra Valley Water and City West Water in Victoria on the trials. Leak detection in progress.
Sydney Water Annual Report 2007 23 Review of operations
Investing in 2006-07 capital program In 2006-07, Sydney Water delivered a $648 million capital works program – its largest to date. infrastructure The program was $39 million over budget, due to the accelerated delivery of the Liverpool to Ashfield pipeline and renewal of water reticulation mains. The costs were partly offset by changes to scope, timing and cash flow across other major programs. The capital works program is designed to renew and upgrade existing assets, deliver government programs and support urban growth. Projects completed, or substantially completed in 2006-07, included: • renewal of about 140 km of water mains to reduce leaks and breaks • rehabilitation of sewers to reduce chokes and overflows, as part of the SewerFix Program • major sewer renewals in the Malabar sewerage system to Sydney Water undertook address concrete corrosion • Mt Pritchard and Hammondville water supply zone its largest ever capital works enlargement to meet urban growth demands program in 2006-07 • Bondi and Shellharbour sewage treatment plant upgrades to improve reliability and performance The Liverpool to Ashfield • sewer services to 1,000 properties at Mulgoa, Wallacia and Silverdale, as part of the Priority Sewerage Program pipeline is the backbone • improved stormwater quality at 20 locations following of a developing recycled completion of a $19 million stormwater environment water grid improvement program. Sydney Water also made progress on the Western Sydney Recycled Water Plant at St Marys, recycling schemes at West Camden and Rouse Hill, the Liverpool to Ashfield pipeline, the desalination plant and related pipelines.
Improvements to Bondi Sewage Treatment Plant involved excavating 150 linear metres of tunnel, removing 20,000 tonnes of soil and installing 1 km of pipework and 80 km of electrical cable.
24 Sydney Water Annual Report 2007 Liverpool to Ashfield pipeline Working in alliance In 2005, Sydney Water entered an alliance In July 2006, Sydney Water awarded the to deliver the Water and Sewer Mains contract to Leighton Contractors for a Projects delivered via alliance-style Renewal Program. The alliance, known as 24 km pipeline between Liverpool and contracts have provided value for money the NetWorks Alliance, comprises Bovis Ashfield. for Sydney Water. These contracts are Lend Lease, CLM Excavations, Collex typically used for large and complex (now Veolia Environmental Services) The project is part of the $180 million projects with tight timeframes and Sydney Water. South Western Sydney Sewerage Scheme where more traditional design and The alliance is responsible for work related to provide additional wastewater services construction contracts would be to water trunk mains, sewer high-pressure for a growing population. more expensive. mains, sewer reticulation mains, pressure The Liverpool to Ashfield pipeline is the management, flow meter installation and backbone of a developing recycled water aqueduct refurbishment. grid. At just over a metre in diameter and 24 km long, it will cross eight local Sydney Water set up the alliance to government areas, nine watercourses, reduce the cost of renewals, to maintain nine major roads and eight sets of railway high performance in the management tracks. Work began in November 2006. of environment, safety and community aspects, and to deliver opportunities for Sydney Water will eventually provide innovation. recycled water to homes, businesses and industry from the Liverpool-Glenfield area For example, the alliance introduced in the south west, along the Parramatta safety procedures to overcome an Road corridor and potentially into the electrical earthing issue to achieve Botany area. The pipeline will minimise positive safety outcomes without the risk of sewer overflows from the north delays to construction. Had this Georges River sub-main. This is currently electrical issue arisen in a traditional close to capacity and comes under contract, there would have been pressure during heavy rainfall. significant extension of time claims, cost variations and potential disputes. In June 2007, the project passed the halfway stage. It is expected to be completed by mid 2008. A new section of pipe is lowered into a launch pit beneath Centennial Park. Sydney Water expects to invest about $5.6 billion in capital works in the five years to 2011-12. The principal parts of this program are shown in the diagram below.
Capital investment program 2007-08 to 2011-12
2000 2000
1500 1500 378 450 473 351 357 n Desalination plant 1000 103 84 133 173 125 Desalination pipelines $ Millio Western Sydney Recycled Water Plant 481 534 606 524 482 Priority sewerage programs 1000 Wet weather overflow abatement 500 29 30 47 49 77 NW/SW Sector development Recurrent growth (excl NW/SW sector) 82 85 92 78 72 Other recurrent investment 0 500 2007/08 2008/09 2009/10 2010/11 2011/12 28 34 38 75 98
37 100 86 0 0 Sydney Water Annual Report 2007 25 0 205 320 183 0 0
473 495 149 0 0 Review of operations
Going During 2006-07, Sydney Water moved to a strategy to become carbon neutral by 2020. The first milestone will be to carbon reduce emissions by 60 per cent by 2012. Sydney Water is one of the largest energy users in NSW. As water and wastewater is very heavy to move around, it neutral requires a large number of pumps and other equipment. Sydney Water will become carbon neutral by: • producing up to 20 per cent of power needs through renewable cogeneration and mini-hydro turbines • using energy more efficiently • using carbon credits earned for water saving programs.
Nine projects will supply 20 per cent of Sydney Water’s energy needs by early 2009 The new head office at Parramatta will cut greenhouse gas emissions by 30 per cent and reduce drinking water use by 75 per cent Sydney Water and energy partner, Worley Parsons – work together to maximise energy production from cogeneration.
Renewable cogeneration In February 2007, Sydney Water announced it would construct new biogas cogeneration facilities at five sewage treatment plants. It will also install four hydro-electricity generation facilities. These nine projects will produce more than 50 gigawatt hours of electricity a year. This is enough to supply more than 20 per cent of Sydney Water’s energy needs by early 2009. Three of the nine projects will receive $3.67 million from the NSW Government’s Energy Savings Fund. The $200 million fund encourages organisations to save energy and reduce peak electricity demand. Essential operations, such as water pumping, and sewage treatment and disposal, require significant energy. Sydney Water is establishing small-scale renewable energy generators to help meet its power needs.
26 Sydney Water Annual Report 2007 Cogeneration harnesses biogas, a waste Hydro-electricity generators use the Using energy efficiently product of the wastewater treatment flow of water and wastewater to generate Construction of Sydney Water’s new head process. The biogas is converted into electricity via mini-turbine engines along office in Parramatta commenced during electricity through combustion high-flow pipes. One hydro-electricity 2006-07. It will be one of Australia’s technology. Engines are used much the generator will capture energy from leading environmentally sustainable office same way as in cars. Cogeneration was wastewater flowing down a drop shaft blocks. The use of drinking water will be pioneered and proven at the Malabar at the North Head Sewage Treatment reduced by 75 per cent compared to a and Cronulla sewage treatment plants. Plant. The North Head facility will be an typical office building. Greenhouse gas Sydney Water is commissioning a plant at Australian first. Sydney Water will also emissions will be cut by 30 per cent. North Head in 2007-08 and installing new install hydro-electricity generators at the plants at its Bondi, Glenfield, Liverpool, Woronora Water Filtration Plant, Sugarloaf The Multiplex-owned building will have Warriewood and Wollongong plants. Valve Station and on the Warragamba to a chilled beam cooling system instead of Prospect Reservoir pipeline. more conventional air conditioning. Cool recycled water runs through the chilled beams, providing fresh air directly through ceiling diffusers. As well as improving air quality for staff, chilled beams benefit the environment by absorbing heat from lights and equipment. Recycled water treated on-site will be used as the cooling water circulates through the chilled beams.
Overseeing the cogeneration operations and maintenance at Malabar Sewage Treatment Plant Parramatta building
Electricity generation projects
Hydro-electricity Percentage Biogas generation plants generation of generation plants (approx.)
Existing Malabar Sewage Treatment Plant 4% projects Cronulla Sewage Treatment Plant (16,000 MWh) Under 2% North Head Sewage Treatment Plant construction (8,000 MWh) Bondi Sewage Treatment Plant Prospect Wollongong Sewage Treatment Plant Sugarloaf Recently North Head Sewage 14% approved Liverpool Sewage Treatment Plant Treatment Plant* (53,000 MWh) projects Glenfield Sewage Treatment Plant Woronora* Warriewood Sewage Treatment Plant* 20% almost Total Generation from 2009 80,000 MWh
* Funding assistance from the NSW Government Energy Savings Fund
Sydney Water Annual Report 2007 27 Review of operations
Skills shortages and an ageing workforce are challenges facing many businesses. Workplace To counter the skills shortages, Sydney Water’s focus in 2006-07 continued to be on improving workforce capability. Competency programs were rolled out that aligned existing job skills and knowledge to national standards. There was an emphasis on traineeships and apprenticeship programs. Graduates, apprentices and trainees Sydney Water offers graduates learning and development opportunities by combining rotational placements, formal training and coaching over three to four years. Sydney Water recruited 15 graduates in February 2007. The graduate program at the end of 2006-07 had 41 people.
More than 100 people in Civil Maintenance and Construction traineeships Sydney Water recruited 15 graduates and 15 new apprentices In February 2007, Sydney Water reached a zero lost time injury frequency rate During 2006-07, Sydney Water took on 15 new apprentices, bringing the total to 24. Apprentices gain work experience while they complete in-class training and development. Sydney Water also enrolled over 100 Civil Maintenance and Construction staff on a traineeship program. Two years on- the-job training will provide them with nationally recognised qualifications and the opportunity to progress to higher employment levels. Employee relations Sydney Water entered into agreements with the Australian Services Union, the Association of Professional Engineers, Scientists and Managers, Australia, and the Australian Manufacturing Workers’ Union for pay increases over the period 2006 to 2009. This provides staff with confidence that their efforts will continue to be recognised.
28 Sydney Water Annual Report 2007 Sydney Water’s workforce has The program provides incentives for staff declined over the past 10 years. Giving Through Safety to work safely. Dollar amounts are set to There are now about 3,100 staff. Sydney Water launched its Giving safety targets. Staff select a charity to During 2006-07, staff numbers fell Through Safety Program in January 2007 support through their donations. by 1.7 per cent. This was mainly for its field-based teams. This initiative was well received by the 15 due to restructures, a voluntary teams involved. Most achieved their safety separation offer and natural attrition. targets and a number also achieved zero Sydney Water has a consistently low lost time injuries over a six-month period. voluntary turnover rate – currently As a result, Sydney Water donated over about 4.3 per cent a year. The industry $60,000 to 10 charities. Due to its success, average is almost seven per cent. this program will now involve all staff. The profile of the workforce “By being safe, the Civil Maintenance City remained relatively constant. The East team provided a domestic nursing number of women working in scholarship for an emergency nurse at Sydney Water increased slightly to the Sydney Children’s Hospital, Randwick,” 25 per cent. Sydney Water continued said Ernie Romeo, Team Manager City East, to raise the profile of women Water Services. working at Sydney Water. A key As part of Giving Through Safety, South Coast Civil initiative this year was its Women Maintenance/Construction and MEM South Coast @ Work Achievement Award. chose Camp Quality Illawarra. Because of their excellent safety performance, they gave $17,000 - sending 34 children to a Camp Quality camp. Improving staff accommodation Over the next few years, Sydney Water will be providing improved staff accommodation across most of its area of operation. One of the major changes is the head office move to Parramatta in early 2009. Improving safety and performance In February 2007, for the first time for an The new office block will accommodate Sydney Water’s goal is to have zero lost entire month, Sydney Water recorded no about 1,400 staff, who will relocate from time injuries. Sydney Water staff have put lost time injuries. To celebrate, Sydney the head office in the CBD and other great effort towards meeting this target. Water gave $10,000 to CanTeen, a charity Sydney Water sites. that supports children with cancer. The In August 2006, when Sydney Water money enabled young people to attend Sydney Water is consolidating its depots reached its then lowest lost time injury a weekend camp. to improve the way it operates. New frequency rate (LTIFR) ever recorded of 8.2, depots will be provided at Warriewood $10,000 was donated to the Children’s By the end of 2006-07, Sydney Water (completed), Miranda, St Marys, Daceyville, Hospital at Westmead. The money was for achieved a LTIFR of 6.6. This was the Seven Hills, Leura and Chatswood. During a new ventilator to help over 8,000 children best result ever achieved. 2006-07, Sydney Water reduced its depots a year breathe while under anaesthetic. by six.
The team from Civil Maintenance South West earned $5,000 for the Starlight Sydney Water staff presented $10,000 to CanTeen. Children’s Foundation. This will grant one sick child a Starlight wish.
Sydney Water Annual Report 2007 29 Legal changes
Water Industry Competition Act 2006 Changes to the Sydney Water Regulation This Act, which is yet to be passed into Several changes to the Sydney Water law, introduces a number of substantial Regulation came into effect on changes, with varying impacts on Sydney 1 September 2006. These involved Water’s day-to-day operations. Key existing requirements, together with changes include: a streamlining and updating of certain regulatory requirements and statutory Licensing new entrants references for plumbing and drainage Applicants may, in addition to Sydney work, which included activities at Water, be licensed to provide water Prospect Reservoir. and sewerage services or to construct, operate and maintain water industry Environmental Planning and infrastructure, including within Sydney Assessment Amendment (Major Water’s area of operations. Projects) Regulation 2006 New entrants are required to belong This regulation impacts in a minor to an industry-wide dispute resolution way on the development application scheme and to comply with any decision process for major projects undertaken made by the independent administrator by Sydney Water. It streamlines a number of that scheme. of planning approvals and requirements for major projects, including those Access to infrastructure service of the owners of land where linear A new regime will be established to infrastructure is to be carried out. enable third parties to access existing water and wastewater infrastructure services within Sydney Water’s area of operations. Sydney Water has prepared draft access agreements and received industry feedback. Sewer mining The NSW Independent Pricing and Regulatory Tribunal may, if requested by a sewerage service provider, deal with disputes over access to the contents of the service provider’s infrastructure. Further clarification of the impacts of the Act on Sydney Water’s operations should occur once regulations under the Act are introduced.
30 Sydney Water Annual Report 2007 Board operations and governance
All decisions relating to the operation Changes to Sydney Water’s Board of Board committees of Sydney Water are made by or under Directors in 2006-07 were: In December 2006, the Board reviewed the authority of its Board of Directors. • Gabrielle Kibble retired as Chairman in and restructured its committees. The Board is accountable to the NSW May 2007. Government through a portfolio minister Under Sydney Water’s Constitution, • Dr Thomas Parry was appointed Deputy and two shareholder ministers. directors may delegate any of their Chairman in October 2006. powers to committees, which consist of Under the corporate governance • Dr Thomas Parry was appointed at least one director. The Board has five framework, the Chairman and directors Chairman in June 2007. standing committees: are appointed by the shareholder • David Evans retired as Managing Audit and Risk Committee ministers. The Governor appoints the • Director in August 2006. Managing Director following an initial • Environment Committee recommendation by the Board. • Dr Kerry Schott was appointed • Finance Committee Managing Director in August 2006. The Chairman has stewardship of the • Public Health and Research Board and presides over Board meetings. Directors’ duties and conduct Committee The Managing Director is responsible for A minimum standard for directors’ duties • Remuneration Committee. the day-to-day management of Sydney is provided for under Schedule 10 of From time to time, the Board may also Water’s operations in accordance with the State Owned Corporations Act 1989. establish a special purpose committee, the policies and specific directions of Directors are required to: the Board. The Managing Director has usually in relation to a particular major • act honestly in the exercise of their project or other initiative. authority to delegate some Managing power as a director Director powers and functions to other Indemnity and insurance positions in Sydney Water. • exercise reasonable care and diligence Under the State Owned Corporations Act • avoid conflicts of interest The Managing Director is accountable 1989 and the Constitution, Sydney Water to the Board and her performance is • disclose actual or potential conflicts of may indemnify its directors only with reviewed every six months. interest and remove themselves from the prior approval of the shareholder decision making on such matters ministers. Board composition and membership • not make improper use of their All non-executive directors have been The Board may consist of up to 10 position as a director or use granted such approval and have been members, with the Chairman and information obtained by virtue of their given a Deed of Indemnity. The deed directors appointed for a set term. position as a director. entitles directors to be indemnified The Managing Director is the sole In addition, the Board has adopted a code for liability for costs and expenses in executive director on the Board. of conduct, which is republished annually defending criminal or civil proceedings, in a directors’ handbook. subject to certain qualifications. Advertising for nominations to the Board is conducted periodically. It is a statutory Board meetings Sydney Water maintains insurance with requirement that the Board is composed The Board meets at least monthly, except respect to directors’ and officers’ liability. of directors with separate expertise in: in January. A schedule of meeting dates The policy underpins and augments the • business management is established annually, in advance. Deed of Indemnity. Insurance does not extend to deliberate acts of fraud or • protection of the environment Additional meetings may be called as directors see fit. A quorum is four dishonesty. • public health. directors, either in person or by proxy. During 2006-07, the Board operated, at various times, with eight to nine appointed directors.
Sydney Water Annual Report 2007 31 Board members
Dr Thomas G Parry AM Chairman BEc (Hons), MEc, PhD Tom Parry joined the Board on 18 October 2006 and was appointed Chairman on 1 June 2007. Tom is a consultant to Macquarie Bank’s Investment Banking – Funds Group. He was Foundation Executive Chairman of the Independent Pricing and Regulatory Tribunal of NSW (IPART) and its predecessor, the Government Pricing Tribunal of NSW from 1992 to 2004. Tom was an ex officio Commissioner of the Australian Competition and Consumer Commission, member of the NSW Council on the Cost and Quality of Government, Board Member of South East Area Health, Foundation NSW Natural Resources Commissioner, Chairman of First State Super, Director of the Australian Stock Exchange’s Market Supervision Company and Board Member of NSW Health’s Clinical Excellence Commission. Tom has extensive international experience in the utilities, transport and health sectors.
Gabrielle Kibble AO Chairman BA, DipTCP, FRAPI, DSc (Hc) Gabrielle Kibble was a non-executive director from November 1997 and Chairman from August 1998 to May 2007. She was also Chairman of Sydney Water’s trading subsidiary, Australian Water Technologies and the Board’s Remuneration Committee. Gabrielle is the Administrator of Liverpool City Council, a director of the Sydney Olympic Park Authority and Trustee and Deputy Chancellor of the University of Western Sydney. She is an Honorary Associate of the Graduate School of Government, University of Sydney.
Dr Kerry Schott Managing Director BA (Hons), MA, D.Phil Kerry Schott was appointed Managing Director in August 2006. She was previously Deputy Secretary, NSW Treasury, Office of Infrastructure Management. Kerry was a non-executive director of the Sydney Water Board from 1997 to 2001. She has spent 15 years as an investment banker, mainly in infrastructure related work including roles as Managing Director of Deutsche Bank and Executive Vice President of Bankers Trust Australia. She has also worked as an economic policy adviser with the Reserve Bank of Australia, the Commonwealth Government and as an academic at University College London and at Oxford University. Kerry has been Chairman of the NSW Environment Protection Authority, Chair of the NSW Film and Television Office, a director of the Film Finance Corporation Limited and Australian Airlines Limited. She has been a member of the Corporations and Securities Panel and a Trade Practices Commissioner.
John Brown BCom, FCA A non-executive director since September 2004. John is an audit and risk specialist with significant experience in financial due diligence and risk management. He recently retired as a partner of KPMG where he led its NSW Government Business Group and was a member of the KPMG National Board and Chairman of its Audit Committee. John is the Chairman and independent member of the Risk and Audit Committee of the NSW Department of Commerce and a consultant to the Audit Committees of the Australian Broadcasting Corporation and the Department of Defence.
32 Sydney Water Annual Report 2007 Brian Gilligan BA, DipEd, MA A non-executive director since May 2004. He is also a member of the World Commission on Protected Areas, a director of the Hunter Valley Research Foundation, Chair of the Audit and Risk Management Committee for the NSW Department of Juvenile Justice, and an independent member of the Audit Committee for Parks Australia. Brian’s former appointments include Director-General, NSW National Parks and Wildlife Service (1998-2003), Executive Director Operations, NSW Environment Protection Authority (1996-98) and Director, Hunter Water Corporation (1989-92).
Ralph Kelly BCom, MBA, SF Fin, FAICD A non-executive director since September 2001. Ralph has had 30 years in investment banking, with particular experience in corporate finance advice, infrastructure and listed capital raisings, Ralph is now Principal of Pennant Advisory and pursues a non-executive director career. Currently he is a Director of Australian Petroleum Investments Pty Ltd and Ausflag Limited.
Alison Peters LLB, BCom A non-executive director since September 2001. She is the Deputy Assistant Secretary for Unions NSW and is also a member of the NSW Co-operatives Council, the NSW Seafood Industry Conference, and the NSW Privacy Advisory Committee.
John Priest BBus, FCPA, FAICD Appointed a non-executive director in September 1998. Formerly of CocaCola Amatil Limited, John held the positions of executive director, Chief Financial Officer and Director of Corporate Development. He is currently Chairman and Chief Executive Officer of Apollo Life Sciences Limited and a Council Member of the Graduate School of Management.
Dr Greg Stewart MBBS, MPH, FRACMA, FAFPHM Greg was appointed a non-executive director in December 2005. He is the Director, Population Health, Planning and Performance of the Sydney South West Area Health Service. His previous experience includes appointments as Deputy Director-General, Population Health and Chief Health Officer, NSW Health, Chief Executive Officer of Wentworth Area Health Service and Director of the Public Health Unit, Sydney South West Area Health Service. A member of the NSW Medical Board, Greg chairs the NSW Regional Committee of the Australasian Faculty of Public Health Medicine.
David Evans BEc (Hons), FAICD David was Managing Director of Sydney Water from April 2004 to August 2006. Previously he was Managing Director of Hunter Water from 1993 to 2004 and Chief Executive Officer of the Regional Land Management Corporation.
Sydney Water Annual Report 2007 33 Organisational chart and executive team
Managing Director
Internal Audit
Asset Management Asset Solutions Customer and Community Finance Relations
Responsible for managing Responsible for procurement Responsible for developing, Responsible for setting and infrastructure and providing policy, contract management planning and implementing implementing sound financial water, wastewater, recycled and delivery of the capital strategies for customer and commercial strategies, water and stormwater works program. services, customer resource policies and practices, services to customers in management, corporate performing business accordance with requirements relations and corporate assurance and business of NSW Health, Sydney Water’s Ron Quill communications, and planning and overseeing BE (Civ) Operating Licence, Customer undertaking marketing information technology. Contract and DECC General Manager and business strategy and Environment Protection planning. Licences. Ron was appointed General Denise Dawson Manager, Asset Solutions in BBus, GradDip (Acctg) April 2000. He has been with Angela Tsoukatos General Manager Paul Freeman Sydney Water for over 30 BSocWk, MM, GAICD BE (Mech) (Hons) years. With his engineering General Manager Denise was appointed General General Manager background, Ron worked in Manager of the newly formed corporate planning and as a Angela was appointed General Corporate Services in April Paul joined Sydney Water in ministerial policy adviser Manager, Customer and 2007 while continuing as 1978. Since then, he has before becoming the Bulk Community Relations in April Chief Financial Officer in worked in various engineering Water Manager and Regional 2005. She was previously a caretaker capacity until and management roles. In Manager for the Illawarra and General Manager, Corporate July 2007. Denise joined 2000 he was appointed the Greater Western Regions. Affairs. Since joining Sydney Sydney Water as General General Manager, Asset He was then promoted to the Water in 1990, Angela has Manager, Customer Service, in Management, responsible for role of General Manager of held roles in policy, standards September 2001 after 20 years operations and asset TransWater. He has a Bachelor of service, regulatory in the electricity industry. She management of the of Engineering (Civil). compliance and executive was previously the General operational asset portfolio. support. Prior to Sydney Water, Manager responsible for Paul has a Bachelor of she worked in the non- Full Retail Contestability at Engineering (Mechanical) government sector and in United Energy Melbourne. She with first class honours and local government as a has been General Manager, the University Medal from the caseworker, community Finance and Administration University of Technology, worker and policy adviser. at Powerlink Queensland, Sydney, in 1984. Angela has a Bachelor of General Manager, Corporate Social Work, a Masters in Services at Legal Aid Brisbane, Management (public sector and held finance roles at management) and is a South East Queensland graduate member of the Electricity Board. Denise Australian Institute of has a Bachelor of Business Company Directors. and a Graduate Diploma in Accounting.
34 Sydney Water Annual Report 2007 Business Services Michael Wandmaker BE (Mech&Comp) Group General Manager
Responsible for effective and efficient Michael joined Sydney Water as Group General Manager, Business Services in April 2005. He operation of water and wastewater was previously General Manager, Tyco Services, Electrical Mechanical Australia, where he was treatment, water quality monitoring responsible for an engineering (design and construct) business and a maintenance services services, environmental monitoring and business. Prior to this, Michael worked for Siemens and Fluor Daniel. He also had 20 years management of Water Services, Human with the Royal Australian Navy. Michael has several engineering qualifications, including Resources, Occupational Health and Safety, a Bachelor in Engineering (Mechanical and Computing). He is also a qualified fitter and and property assets. machinist.
Regulatory Strategy Sustainability Water Services and Reform
Responsible for developing Responsible for developing Responsible for providing safe regulatory strategy, long term plans for and efficient civil, mechanical setting framework and integrated water services and and electrical maintenance monitoring regulatory environmental performance. and construction services scanning and regulator This includes water supply, using in-house and contracted relationship management, demand management and resources. driving regulatory reform services to new growth. and overseeing pricing The division provides methodologies. environmental planning and Michael Keelan BE(Civ), MBA management and delivers the scientific, research and General Manager Chris Guest development programs. BEc (Hons), MA, MAppFin, PhD Michael was appointed General Manager General Manager, Water Judi Hansen Services in July 2001. He Chris was appointed General BSc, MSc, PhD joined Sydney Water in Manager, Regulatory Strategy General Manager January 1975 as a civil and Reform in March 2006 engineering cadet and has and held this position until Judi has been the General worked in system planning, April 2007 when he left Manager, Sustainability the hydraulics laboratory, Sydney Water. Before joining since September 2003. She construction, operations and Sydney Water, Chris held was previously General maintenance. Since 1990, he various senior positions in the Manager, Environment has held senior management public service. He was most and Innovation. Judi joined positions including Water recently the Deputy Director- Sydney Water in 1990 as Manager Greater Western General, Natural Resources a marine scientist before Region, Purchase and Delivery and Social Policy in the moving into environmental Breakthrough Manager, Cabinet Office. Chris also management and strategic Manager System Services worked in Treasury and the planning. Prior to Sydney and Business Development office of a Minister. He has a Water, her background was in and Communications PhD in economics as well as a academic research. She has Manager, Distribution. He post-graduate qualification in held positions at CSIRO, the joined Australian Water finance. Australian Institute for Marine Technologies Pty Ltd in April Science and the University 2000 as General Manager, of Sydney. Judi has a PhD in Network Services. Michael has marine ecology. a Civil Engineering Degree and a Masters of Business Administration.
Sydney Water Annual Report 2007 35 Index
A-B Leakage 10, 23, 24 Alliances 25 Legal changes 30 Area of operations map 2 Liverpool to Ashfield pipeline 24, 25 Lost Time Injuries Biosolids 10, 13 Frequency Rate (LTIFR) 29 BlueScope Steel 4, 19, 21 Love Your Garden 22 Board members 32 Board operations and governance 31 M-R Bondi Sewage Treatment 8, 13, 14, 24 Metropolitan Water Plan 4, 8, 12, 18 Bringing back aquatic life in the Blue Mountains 14 Operating Licence 3, 8, 12, 13, 18 Organisational chart 34 C-D Capital expenditure 6, 7, 8, 12 Performance summary 10 Capital investment program 7, 13, 25 Priority Sewerage Program 13, 24, 25 Carbon neutrality 26 Properties sold 8 Clean beaches, oceans, rivers and harbours 10, 13 Rainwater tanks 22 Cogeneration 26 Recycling 4, 10, 17, 19, 21 Corporate governance 31 Customer Contact Centre 17 S Safety and performance 8, 9, 10, 25, 29 Dam storage and inflows 4, 15 Serving customers 10, 17 Demand management 17 SewerFix 24 Desalination 4, 8, 12, 14 South Western Sydney Directors’ duties and conduct 31 Sewerage Scheme 8, 25 Drinking water quality 12, 13 Staff accommodation 29 Dry weather sewage overflows 17 Staff profile 29
E T Employee relations 28 Trade waste 10 Energy and Water Ombudsman (EWON) 17 Environmental performance 10 W Every Drop Counts Wastewater 1, 5, 13, 14, 18, 19, 21, 27 Business Program 18, 22, 23 WaterFix 5 Waterless wok 22 F Water efficiency 22 Financial highlights 6 Water industry competition 5, 30 Financial performance summary 7 Water quality 10, 12, 13, 14, 16, 21 Workplace 28 G-L Graduates, apprentices and trainees 28
Hydro-electricity generation 5, 26, 27
Infrastructure 7, 10, 24 Indemnity and insurance 31 Independent Pricing and Regulatory Tribunal (IPART) 12
36 Sydney Water 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 Contact us
Website Bill payments www.sydneywater.com.au Pay Sydney Water bills:
• at more than 500 post offices Email • through the Bill Express service at about Via Sydney Water website 700 newsagencies • by Bpay telephone and internet banking Customer enquiries • through direct debit 13 20 92 • at www.sydneywater.com.au • through postal mail Service difficulties and emergency services • EFT 13 20 90 • by telephone • Acreis Once – One payment. Once a month Postal address Sydney Water Quick Check™ – building, developing and plumbing PO Box 53 Check diagrams, applications and approvals for building Sydney South NSW 1235 plans and connections.
Find Quick Check™ agents at www.sydneywater.com.au Customer Service Centre Sydney City Property Link™ – buying or selling a property Ground floor Property Link™ brokers can access Sydney Water’s information 115-123 Bathurst Street systems to provide solicitors, conveyancers, plumbers or Sydney NSW 2000 builders with diagrams and services. Sydney Water Corporation ABN 49 776 225 038 Annual Report availability 115-123 Bathurst Street The Annual Report is available at www.sydneywater.com.au Sydney NSW 2000
Annual Report 2007
SW212 10/07