Southern seawater desalination plant boosts local economy

Water Minister Graham Jacobs got a close-up look at local industry involvement in the major Southern Seawater Desalination Project when he visited the construction site near Binningup today. 

Dr Jacobs observed the frenetic activity of more than a dozen earthmoving machines spearheading site works for the building phase that began just more than a month ago and will involve about 500 workers at peak times in the next two years.

Local industry is already heavily involved in the project with earthmoving machines   sub-contracted from nearby Brunswick Junction. Drivers and support people are living in the area, including some at Binningup.

The Minister said he was pleased with the immediate local involvement given the current economic climate, saying it demonstrated the consortia building the plant were committed to providing a fair and equal opportunity to suppliers based nearby.

"Even at this very early stage of construction, $14.7million of work packages have been awarded in Western Australia and this will increase quickly as the $955million project progresses," he said.

"The start of construction has provided a stimulus for the South-West, and other areas of WA. The Spanish and Australian companies in the alliance with the Water Corporation have started well in an adherence to a buy local whenever possible policy, creating inevitable flow-on benefits.

"In particular, the South-West region will play a pivotal role in the provision of local labour.  To date, less than 10 per cent of the total sub-contract work packages have been awarded but the economic benefit of utilising local labour will continue.

"The alliance will continue to actively promote the avenues through which local contractors and suppliers can bid for work packages and local labour opportunities."

Dr Jacobs said the alliance had mobilised quickly since environmental approvals were granted in July and contracts then signed to build and operate.

"As far as our State is concerned, this plant needs to be commissioned as soon as possible. It is absolutely essential to cater for the challenging immediate water situation, WA's ongoing growth and the State Government and Water Corporation's ambition to reduce abstraction from the Gnangara groundwater system," he said.

The Minister also reiterated that renewable energy would power the new facility.

"The commitment to renewable energy is included as part of environmental approvals granted by the WA Government," he said.

"Currently the Water Corporation is involved in ongoing negotiations with potential suppliers.  At this point these negotiations must remain confidential to all parties but the corporation should be in a position to advise of the renewable energy position by the New Year.

"Negotiations have been complicated because of the ongoing debate surrounding the Federal Government's Carbon Production Reduction Scheme (CPRS) legislation, renewable energy target legislation and pending changes to the market rules for renewable energy generators."

BACKGROUND NOTE:

• The Southern Seawater Desalination Plant is on schedule and it is expected to be commissioned on time in late 2011.  It will produce 50 billion litres of quality drinking water annually. The Southern SeaWater Alliance (SSWA) is led by Spanish companies Technicas Reunidas and Valoriza Agua.  Its partners are leading Australian construction company A J Lucas and engineering consultancy WorleyParsons.  The Water Corporation has a role within the SSWA to ensure the delivery of the facility meets the long term needs for Western Australia's sustainable water future.