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Northern Adelaide Irrigation Scheme Call for Project Proposals Submit Your Project Proposal at Tenders.Sa.Gov.Au

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Northern Adelaide Irrigation Scheme Call for Project Proposals Submit Your Project Proposal at Tenders.Sa.Gov.Au 2017 NORTHERN ADELAIDE IRRIGATION SCHEME CALL FOR PROJECT PROPOSALS SUBMIT YOUR PROJECT PROPOSAL AT TENDERS.SA.GOV.AU B SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS TABLE OF CONTENTS 01 02 03 04 05 ONCE IN A NAIS BENEFITS – THE GLOBAL A VISIONARY WATER GENERATION AT A GLANCE AGRIBUSINESS SOLUTION INFRASTRUCTURE OPPORTUNITY 06 07 08 09 10 WATER QUANTITY CONTRACT WHAT’S YOUR WHY SOUTH WHY THE AND QUALITY GUIDANCE BUSINESS? AUSTRALIA? NORTHERN ADELAIDE PLAINS? 11 12 13 14 15 SA WATER – WORKFORCE AND TRANSPORT ENERGY AND CLIMATE DELIVERING BUSINESS SERVICES AND LOGISTICS COMMUNICATIONS IRRIGATION SECURITY 16 17 18 19 TERRAIN EDUCATION COMMITTED SUBMIT A FOR MORE AND SOILS AND RESEARCH GOVERNMENT PROJECT INFORMATION SUPPORT PROPOSAL SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS ONCE IN A 01 GENERATION The Northern Adelaide Irrigation Scheme (NAIS) NAIS is a superb platform is a once in a generation opportunity for advanced for businesses wishing to agribusinesses to secure a long-term supply supply the booming food of reliable, climate- independent water. export markets in Asia and across the globe efficiently, sustainably and profitably.” ROCH CHEROUX CHIEF EXECUTIVE, SA WATER 01 NAIS BENEFITS – 02 AT A GLANCE SECURE, SAFE AND RELIABLE CLIMATE-INDEPENDENT, SEASON-INDEPENDENT WATER EXTENSIVE IN-SCHEME INFRASTRUCTURE TIGHTLY MANAGED WATER QUALITY STABLE, INDEXED PRICING LONG-TERM TRADEABLE WATER CONTRACTS IDEAL CLIMATE, TERRAIN, AND SOILS READY ACCESS TO A SKILLED WORKFORCE, TRANSPORT AND LOGISTICS, INFRASTRUCTURE AND SERVICES 02 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS 03 THE GLOBAL 03 AGRIBUSINESS OPPORTUNITY RAPID POPULATION GROWTH, RISING MORE PEOPLE TO FEED INCOMES, GROWING A United Nations AFFLUENCE AND report estimates: CHANGING CULTURAL EXPECTATIONS IN ASIA AND ACROSS THE GLOBE ARE CREATING EXTRAORDINARY 7.3 9.7 11.2 OPPORTUNITIES FOR BILLION BILLION BILLION GLOBAL AGRIBUSINESSES. CURRENT POPULATION PROJECTED 2050 PROJECTED 2100 With 2.4 billion more people on earth, 60-70% more food will be required than what is currently available Source: United Nations, World Population Prospects 2015 04 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS CLEAN AND HEALTHY The demand boom is being driven by Asia’s rapidly growing middle class, which is seeking $1.7 TRILLION BOOM clean, healthy, high quality food imports. GLOBAL FOOD THIS DEMAND CURRENTLY THE DEMAND EQUATES TO AN EMERGING MIDDLE WILL INCREASE ESTIMATED CLASS IN ASIA BETWEEN ACCOUNTS FOR: 60% $1.7 OF AUSTRALIANS 59% TRILLION 22% of sales to China, AND 9.4% to Japan, IN AGRICULTURAL $41BN EXPORT 7.3% to Indonesia, PER ANNUM 98% OPPORTUNITIES, 5.8% to Korea, AGRICULTURAL EXPORT TRANSFORMING 3% to Malaysia and BY MARKET THE GLOBAL 2.8% to Singapore, and FOOD 10% to other Asian countries. 2050 INDUSTRY. Source: H. Valin et al, “The Future of Food Demand: Source: Australian Bureau of Agricultural and Resource Economics and Sciences Understanding Differences in Global Economic Models.” Agricultural Economics 45 (2014), pp. 51–67. 05 THE GLOBAL AGRIBUSINESS OPPORTUNITY DEMAND DOUBLES CHINA AND INDIA PRODUCTION UNDER PRESSURE Production challenges will put pressure on the ASIAN FOOD CHINA INDIA global food balance. Crop WILL DRIVE THE WILL ACCOUNT FOR yields will be affected by DEMAND GROWTH IN GLOBAL climate change-driven IS PROJECTED TO DEMAND FOR FOOD, water scarcity, rising global ACCOUNTING FOR 13% temperatures, extreme DOUBLE weather events and land BETWEEN 43% OF GROWTH. repurposing to support the rapid expansion of bioenergy crops. 2007+2050 OF THE TOTAL INCREASE. Source: V. Linehan et al, “Global Food Production Source: V. Linehan et al, “Food Demand to 2050: Opportunities Source: E. Elferink and F. and Prices to 2050: Scenario Analysis Under for Australian Agriculture,” 2012 ABARES Conference. Schierhorn, “Global Demand Policy Assumptions,” 2013 ABARES Conference. for Food is Rising: Can We Meet It?” Harvard Business Review 7 April 2016. 06 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS 07 08 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS A VISIONARY 04 SOLUTION IN RESPONSE The NAIS will supply secure irrigation water to The release of water on this scale represents a TO THIS the precinct. The Scheme will be delivered by SA once in a generation opportunity to secure a OPPORTUNITY, Water, with funding and policy support from the reliable supply of climate-independent water THE SOUTH Australian and South Australian Governments at stable prices under long-term agreements, and Adelaide Plains Council. and supply booming export markets in Asia AUSTRALIAN and across the globe efficiently, sustainably, 12GL of reclaimed water suitable for commercial GOVERNMENT and profitably. IS CREATING A food production will be released in the first SOPHISTICATED, stage of the scheme. Construction is expected NAIS water is expected to attract $1.1 billion in WORLD-CLASS to begin in early 2018 with first water expected private investment, representing 300 hectares of AGRI-FOOD to flow in 2019. Additional water will be made high-technology horticulture, and a further 2,700 available in future stages in line with demand. hectares of advanced agri-food production. PRECINCT ON THE NORTHERN NAIS water is suitable for horticulture, ADELAIDE floriculture, fruit and nut orchards, table and PLAINS, JUST 50 wine grapes, high-value broad-acre cropping, MINUTES FROM poultry and other intensive animal husbandry, ADELAIDE’S and aquaculture. CITY CENTRE. 09 WATER 05 INFRASTRUCTURE CORE INFRASTRUCTURE • a distribution network, comprising spur ON-FARM INFRASTRUCTURE NAIS funding will provide for new lines and connection points to the farm Individual investors will need to infrastructure, including: gate within the scheme footprint provide for: • a treatment plant at Bolivar to produce • pumping stations as required • control mechanisms at off-take locations up to 12GL per annum of high quality The design of the distribution • backflow prevention on potable water suitable for growing commercial network will be determined following main connections food crops – a further 8GL is planned discussions with customers about • post farm-gate infrastructure in future stages their specific requirements. • extensive seasonal balancing storage, SA Water is committed to maintaining reducing capital and operational costs constant water availability at pressure. associated with on-farm storage However, it is recommended that scheme customers construct on-site storage • a transmission main conveying sufficient for 24 hours of water to mitigate water from Bolivar to the Northern risks beyond SA Water’s control. Adelaide Plains 10 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS 11 WATER QUANTITY 06 AND QUALITY LARGE VOLUMES OF SECURE, LONG-TERM TRADEABLE TIGHTLY MANAGED QUALITY CLIMATE-INDEPENDENT, SEASON- WATER ENTITLEMENTS NAIS water is quality-controlled reclaimed INDEPENDENT WATER NAIS Water Contracts offer long-term, water subject to a full range of treatments. The Northern Adelaide Irrigation Scheme tradeable water entitlements, with offers large volumes of secure, climate water rights transferable on business It is compliant with Australia’s water and season independent water. It is not restructuring or sale. quality standards, which are among subject to drought-related restrictions or the best in the world. Pathogens are events that occur in river-based irrigation With the rising value of water, removed to levels compliant with the systems, such as low flows, algal blooms, securing NAIS water will enhance Australian Guidelines for Water Recycling or black-water. the long-term value of your agrifood for commercial food crops. business and land assets. SA Water can supply potable water SCHEME CAPACITY for final food washing or wash-down NAIS water will be delivered through of food processing equipment. a high-capacity trunk pipeline and distribution network, ensuring sufficient capacity to meet all contractual demands. Individual customers may be able to exceed contracted volumes if additional water is available. 12 SA Water Northern Adelaide Irrigation Scheme CALL FOR PROJECT PROPOSALS WATER PROFILE As with all water systems, NAIS water STABLE, INDEXED PRICING NAIS water salinity varies naturally with pH varies throughout the year, depending NAIS water charges include: rainfall throughout the year. Feedback on rainfall. pH is likely to range between • a once-only capital contribution to is sought from project proponents on 7.2 and 7.4. connect to scheme infrastructure three options: Further information about the likely water • an annual availability charge linked 1. salinity capped at 1090 μS/cm profile can be provided by SA Water to contracted water entitlements Electrical Conductivity (EC) (600 mg/L on request. Total Dissolved Solids or TDS) • an annual consumption charge PRESSURE AND FLOW RATES linked to water volume used 2. salinity capped at 2110 μS/cm EC NAIS will be a fully pressurised system, (1165 mg/L TDS) Charges are indexed annually, linked to delivering a minimum of 20 m head the Australian Producer Price Index. This 3. salinity managed at a level ideal (196 kPa) on demand at the farm gate. creates price stability and quarantines for an individual project This represents a significant saving scheme participants from any unexpected in pumping costs. Flow rates will be increase in costs such as electricity. After determined based
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