3. Water Business: The River Murray system

Strategic directions

Water resources management

Asset management

Performance report

River Murray Water: Triple bottom line (sustainability) report

Strategic directions

In 1996, in response to the 1994 water reform principles of the Council of Australian Governments (COAG), the Ministerial Council established a water business entitled River Murray Water (RMW). The distinct nature of RMW clearly delineates the service delivery functions of the MDBC from its resources management and policy functions.

The establishment of RMW was achieved within the terms of the existing Agreement, thus retaining the essential Basin-wide integration of values that are at the heart of the Initiative. Achieving this appropriate distinction between service delivery and resource management functions in order to clarify roles and responsibilities, while preserving the commitment to joint action within the context of Basin-wide values, continues to be a critical objective.

The major strategic directions followed by RMW during 2003-04 were planned to take account of changing community standards in the management of water conservation and salinity mitigation works, and to ensure the sustainable management of assets.

Within the terms of the existing MDB Agreement, RMW has established its corporate identity and achieved:

• a revised cost-sharing arrangement based on the principles of a two-part, service-based tariff that is a reasonable surrogate for full cost-recovery pricing
• recognition by the National Competition Council that the achievements have, in the circumstances, satisfied the relevant COAG principles.

In 2002-03 the Ministerial Council approved, in principle, amendments to the Agreement to enable:

• establishment and management of renewals annuities for replacing of assets and also for major cyclic maintenance
• cost-sharing arrangements between governments to be varied from time to time based on price-for-service principles
• re-allocation of responsibility for River Murray structures from one constructing authority to another, subject to agreement by the Ministerial Council
• amendment by the Ministerial Council, from time to time, of expenditure approval thresholds.

These proposed amendments have been referred to governments for consideration and implementation. As a package of amendments they will, if adopted, effectively complete the asset management and financial reforms recommended by COAG in 1994. During 2003-04 the necessary legislation to give effect to these amendments was drafted for each of the partner governments. It is likely that parliaments of the partner governments intend to consider legislation to give effect to these amendments in 2004-05.

While managing the River Murray system in accordance with the principles of the Agreement, RMW continues to focus on opportunities to identify and implement measures to improve environmental outcomes. Staff from River Murray Water and state constructing authorities have made significant contributions to the design and construction of environmental works and measures. These will ensure that the best possible use can be made of the water available in the River Murray system to deliver environmental outcomes.

With severe drought conditions prevailing in the River Murray system in 2003-04, there were only a few opportunities to operate the river for environmental outcomes. These included:

• managing a small (about 280 GL) release at the Murray Mouth to try to trigger a fish spawning event as well as managing salinity
• supporting a trial watering of River red gums on the Chowilla Floodplain
• constructing an upgraded fishway at Euston Weir and new fishways at Locks 7 and 8 and at Tauwitchere Barrage.

TOP

Water resources management

The water resources of the River Murray system (see Figure 5) are used for a wide range of beneficial purposes. In addition to its inherent natural value to riverine, floodplain and estuarine ecosystems, it is used for irrigation, industrial and domestic water supplies, navigation, recreation, and generation of hydro-electricity. RMW manages the river system to ensure that the available water is documented in the water accounts and distributed to South Australia, Victoria and New South Wales in accordance with the Agreement.

RMW undertakes the tasks of sharing and supplying water through:

• assessing future availability of water
• accounting for actual use of water
• regulating river flows to meet environmental and user needs.

Low water reserves and below average inflows in 2003-04 (after the severe 2002-03 drought) resulted in low irrigation allocations in the River Murray system. The evaporation and transmission loss of water from the river system was less, however, than the record loss experienced last season. A more uniform pattern of Snowy-Murray releases this season aided the operation of Hume and Dartmouth Reservoirs and thus avoided a repeat of the difficulties faced last season, when a larger proportion of Snowy releases was made very late in the irrigation season.

Management of the River Murray system is based on a system of continuous water accounts. Assessments of the future availability of water are based on the status of these accounts and estimates of future system inflows, including inflows to the River Murray resulting from the operation of the Snowy Mountains Scheme. RMW uses these assessments to advise the states of the shares of water available for the remainder of the irrigation season and the following season. The states then announce water allocations based on these shares and their own plans for water management.

Figure 5. The River Murray System

Water availability

The volume of water held in MDBC storages was very low at the start of the 2003-04 season at 24 per cent of active storage capacity—the lowest since 1979. Fortunately, inflows to headwater areas of the Murray improved over the winter and spring, increasing the volume of water stored.

Menindee Lakes remained under NSW control throughout 2003-04, despite the arrival of a small rise in inflows to the Lakes from floodwaters from upstream tributaries. These inflows relieved critical water shortages in the lower Darling area, brought about by a record low inflow sequence and extremely low storage levels in the Lakes.

The storage position at the end of the 2003-04 season was slightly higher than at the start of the season.

State shares of water held in MDBC storages at the beginning and end of 2003-04 are shown in Table 2.

Table 2: Water accounts for New South Wales and Victoria 2003-04 (GL)

Notes:

Accounts are based on the best available data, which may contain some unverified operational data. Figures are rounded to nearest GL.

Data relate to gross storage.

The “out-of-balance” figure reflects the volume of stored water accounted to Victoria, minus the volume of stored water accounted to New South Wales.

Figures may differ from those in the 2002-03 annual report due to the substitution of verified data, including revised data following resurvey of the Menindee Lakes storage volume.

TOP

State irrigation allocations

The outlook for water availability for the three states would have been very poor at the start of the season due to the low storage position unless inflows had increased markedly. Fortunately, good winter and spring inflows to upper Murray areas brought significant improvements. Each state’s position in relation to irrigation allocations for 2003-04 is summarised below.

Victoria

Victoria’s initial irrigation allocation announcement for the Murray was only 16 per cent of Water Right and Licensed Volume. However, the chance of improving to an allocation of 100 per cent by mid-February was eight in ten. By mid-August the allocation had risen to 58 per cent of Water Right and Licensed Volume. In addition, local rainfall provided an opportunity to delay the start to water deliveries to reduce channel losses and increase the water available for allocation for the season.

The announced allocation reached 100 per cent by early September, but the likelihood of further improvements permitting sales allocations was low. The allocation did not rise any higher over the rest of the season.

The Victorian irrigation allocation for 2003-04 was lower than for the previous year, and the lowest on record since the River Murray system storage was augmented by the commissioning of Dartmouth Reservoir in 1979. Before that time and the completion of the Snowy Mountains Scheme, Victoria’s lowest Murray allocation occurred in 1967-68, with 100 per cent Water Right plus 10 per cent Sales (augmented by releases from the Goulburn system to the Murray).

New South Wales

The opening NSW Murray irrigation allocation for 2003-04 was zero for general security irrigation and 100 per cent for high-security entitlements. Water shortages in both the Murray and Murrumbidgee valleys temporarily halted trading in water between these valleys; trade with the lower Darling was also prevented.

Following good rains some supplementary water (previously termed off-allocation water) was made available periodically during August, September and October, and the general security allocation increased to 17 per cent in August and further to 30 per cent in September. General security increased still further to 37 per cent in late October, whilst high security remained at 100 per cent.

Further improvements and borrowing of water from the Barmah-Millewa Forest environmental allocation brought the general security allocation to 50 per cent by mid-November. Subsequent rain saw a further rise to 55 per cent by early December. This allocation level was higher than the record low final allocation of 10 per cent experienced the previous season.

Following the worst-on-record two-year inflow sequence to Menindee Lakes, and very low storage levels in these lakes, New South Wales ceased releases to the Lower Darling River in December 2003. This temporary cessation of flows reduced water availability along the Lower Darling. Further details of this operation are under the ‘Operation of storages’ section of this report.

South Australia

The low opening storage position and application of the water-sharing rules of the Murray-Darling Basin Agreement resulted in the MDBC providing advice to South Australia that it could not guarantee South Australia its full annual entitlement in 2003-04. As a consequence, South Australia elected to take a reduction in its entitlement flow during some winter and spring months. Correspondingly, authorised levels of water use from the river for irrigation, recreation, environmental and industrial purposes within South Australia were restricted to 65 per cent of licensed allocations as of 1 July 2003. Improvements in water availability in late winter and early spring provided the opportunity for authorised levels of water use to be increased to 95 per cent of licensed allocations. Water for metropolitan Adelaide and Country Towns was also restricted to 122 GL and 40 GL respectively.

State irrigation diversions

Wet conditions in winter and spring delayed the start of irrigation diversions from the river, and reduced river transmission losses.

In 2002-03 Murray Irrigation Limited (MIL) negotiated an advance of 2003-04 minimum required release water from the Snowy Mountains Scheme. The MDBC agreed to this arrangement on the basis that the water would be accounted as fully New South Wales with no impact on Victoria and South Australia’s water availability, and that it would be paid back in 2003-04, with an option to carry the debt forward to 2004-05 should NSW allocations in 2003-04 be less than 30 per cent on 1 September 2003.

In total, 134 GL (in addition to the 2002-03 minimum required release) was released by the Snowy Mountains Scheme to individual irrigators in MIL, with a further 4 GL released late in the season for non-MIL irrigators in New South Wales. All but 49.5 GL of this advance was paid back during 2003-04; the remaining 49.5 GL is to be paid back in 2004-05.

State diversions from the River Murray and lower Darling River are summarised in Table 3.

Table 3: Summary of state diversions (GL)

+ Data are based upon the official MDBC record for the reporting requirements of implementation of the ‘Cap’ on diversions.

* Record high diversion.

** Includes releases from Cawndilla Outlet to the Great Darling Anabranch.

# Data presented for 2003-04 is estimated based on hydrographic and operational data.

TOP

Water trade

Large volumes of water were traded temporarily across the River Murray system this year. The low allocation level in South Australia early in the season saw a net total of more than 20 GL traded into South Australia before the end of summer. Trade for the remainder of the season saw water being sold back upstream (mostly to New South Wales), so that by the end of the year the net trade into South Australia was about 6 GL. Low allocation levels in New South Wales resulted in about 2 GL of net trade from Victoria to New South Wales.

Large volumes were permanently and temporarily traded out of the Goulburn Valley resulting in about 60 GL of water being available. RMW called on 25 GL of this to supplement low storage levels in Lake Victoria. Given the very low probability of spill from Eildon, and the prospects for River Murray channel capacity constraints next season, the balance of 35 GL remains in storage in the Goulburn system.

About 50 GL was available from the Murrumbidgee Valley account this year. About 24 GL was transferred to the River Murray via the Snowy Mountains Scheme and a similar volume was delivered past Balranald to clear the account and supplement low levels in Lake Victoria.

RMW adjusted state water shares and deliveries to take account of permanent trade (cumulative from the start of the Pilot Interstate Water Trading Project in 1998 to June 2003) and temporary trade during 2003-04. Total net adjustments made to water accounts were 3.5 GL from Victoria to New South Wales, 18 GL from New South Wales to South Australia and 12 GL from Victoria to South Australia. The adjustments of flow to South Australia for trade ceased after the end of April in accordance with Schedule E to the MDB Agreement. Therefore, the large volumes of water temporarily traded out of South Australia late in the reporting period have not yet been accounted for and will be carried over to next year.

Flow to South Australia

Low opening storage levels and the water-sharing rules under the Murray-Darling Basin Agreement resulted in South Australia electing to take a reduction in its entitlement flow of 80 per cent in June and July, 70 per cent in August and 85 per cent in September. However, improved inflows to the upper storages and from Victorian tributaries helped to relieve this position and bring above entitlement flows to South Australia during August, September and October totalling some 268 GL. Total flow to South Australia for the year was 2023 GL, 173 GL above its entitlement of 1850 GL.

This flow was significantly lower than the median annual flow of 4900 GL, but was higher than the full entitlement (1850 GL) received during the previous season.

By the end of July 2003, South Australia had experienced the longest period on record of regulated flows (a total of twenty-seven months, commencing in May 2001). The Barrages remained closed until September 2003, creating the longest period on record that they have remained closed (twenty-one months from the end of November 2001 to September 2003, compared with a period of seventeen months in the 1967-68 drought).

The pattern of flow to South Australia during 2003-04 contributed to water quality problems in the lower reaches of the River Murray. Fortunately, the above entitlement flows, combined with local inflows from the Mt Lofty Ranges in spring, filled lakes Alexandrina and Albert and permitted a small release of water through the Barrages in September 2003. This release significantly reduced the salinity of water in the Goolwa channel and brought some ecological benefits to the Coorong and Mouth area.

Operation of storages

The opening storage for 2003-04 was very low (2070 GL or 24 per cent active storage capacity—the lowest since 1979. This was more than 2500 GL lower than the storage at the start of the previous season.

Most of the opening storage was held in Dartmouth Reservoir, as in 2002-03. Fortunately good spring rains boosted inflows to both Hume and Dartmouth Reservoirs. The rise in level in Hume delayed the start of water transfers from Dartmouth to Hume until summer and substantially reduced the volume of these water transfers. The volume transferred was only 204 GL, which was much lower than the large volume transferred the previous season (2436 GL). Dartmouth storage increased by 712 GL to 1889 GL, or 48 per cent capacity over the season.

Transfers of water from Hume to Lake Victoria commenced much later this season compared to last season (which experienced the earliest start ever). These transfers were carefully managed over the season with the aim of drawing down to a low-level storage in Lake Victoria whilst ensuring the continued supply of South Australia’s entitlement flow—this operation conserved water in the upper Murray storages so as to maximise water availability to the three states in future years. Similarly, storage in Hume Reservoir was drawn down to a low level by the end of the season to conserve water in Dartmouth Reservoir. Storage in Hume was reduced to 224 GL (7 per cent capacity) on 17 May 2004.

Lake Victoria storage reached capacity (680 GL) on 11 October 2003 and was drawn down to 194 GL (29 per cent capacity) by 15 May 2004. This pattern of lake operation did not require any release of additional water to satisfy cultural heritage requirements at Lake Victoria.

Storage in Lake Victoria began to rise slowly from a low of about 280 GL during July 2003, assisted in part by the reduction in South Australia’s entitlement at this time. Storage in Lake Victoria began to rise more rapidly by mid-August as unregulated flows originating from tributaries downstream of Hume arrived. These flows were insufficient to warrant delaying the refilling of Lake Victoria until later in spring (as may be required by the Lake Victoria Operating Strategy), hence they were harvested at the maximum rated inflow capacity via the Lake Victoria Inlet Regulator during late August to late September. The storage reached full supply level of 27 m AHD (metres above mean sea level) on 11 October, and remained at capacity until the end of October.

This represented the first time that Lake Victoria was able to be refilled to capacity since the 2000-01 season.

As a result of low tributary inflows during summer and autumn, combined with the lack of water available to MDBC in Menindee Lakes, Lake Victoria was drawn down to just 29 per cent capacity, or a level of 22.25 metres, by the end of the 2003-04 irrigation season. Other than the deliberate drawdown of Lake Victoria to a level of 21.5 metres (19 per cent capacity) for the cultural heritage survey in 1999, this represented the lowest level that Lake Victoria had been drawn down to for operational purposes since May 1986. This drawdown of Lake Victoria for water supply purposes exceeded the drawdown targets for vegetation outcomes under the Lake Victoria Operating Strategy (part of the Cultural Landscape Plan of Management). Hence, there was no requirement to release additional water from Lake Victoria.

Storage in Menindee Lakes at the beginning of July 2003 was extremely low at 70 GL (4 per cent capacity), the lowest volume held in Menindee Lakes since construction in the early 1960s. The lakes remained in NSW control as required by the Agreement—this provision allows New South Wales to manage a ‘drought reserve’ to meet the needs for irrigation, stock and domestic and town water supply (including Broken Hill) in the lower Darling River and Darling Anabranch.

Inflows to Menindee Lakes remained extremely low during the first half of 2003-04. Floodwaters from Queensland and northern New South Wales brought some relief to the Lakes and its environs from January 2004. The volume of water reaching the lake was, however, relatively small, sufficient only to fill Lake Wetherell and partly fill Lake Pamamaroo. New South Wales made a small environmental release to the lower Darling River to reinstate flows that had been reduced to zero in December 2003 (to conserve water supplies for Broken Hill and other water users). Unfortunately, very high water temperatures and low dissolved oxygen levels resulted in a significant fish kill along parts of the lower Darling River.

By the end of June 2004, the MDBC’s active reserve storage was higher than at the start of the season—it had reached approximately 2785 GL (30 per cent active storage capacity), mainly in Dartmouth Reservoir. This slightly improved the water resource outlook for the following season, compared with the start of this season.

Storage behaviour resulting from the operation of the MDBC’s four major storages is shown in Figure 6.

Figure 6. Storage behaviour resulting from RMW’s operation of the MDBC’s four major storages

TOP

The Snowy Mountains Scheme

Total active storage in the Snowy Mountains Scheme decreased over 2003-04 from about 44 per cent of active capacity at 1 May 2003 to 40 per cent at 1 May 2004. The decrease in total storage comprised a slight increase in storage in the Snowy-Murray Development and a large reduction in storage in the Snowy-Tumut Development. Inflows to the Snowy-Murray Development were close to median for the year.

The approved release for 2003-04 was up to 1468 GL from Murray 1 Power Station (for the 12-month period 1 May 2003 to 30 April 2004), made up of:

• 1062 GL required annual release (previously referred to as the minimum notification release)
• less 138 GL advanced from this water year for use in the previous year 2002-03
• 544 GL of above-target water (accumulated underdraw) available at 1 May 2003.

The actual (accounted) release from Murray 1 Power Station for the twelve months to 30 April 2004 was 998 GL, made up of:

• 1062 GL of required annual release
• repayment of 89 GL of the 138 GL advanced in 2002-03
• an additional release of 25 GL of above-target water in 2003-04 associated with special arrangements put in place for the construction of outlet works at Jindabyne Dam.

The remainder (49.5 GL) of the water advanced in 2002-03 (138 GL) and not repaid in 2003-04, is to be paid back in 2004-05. Also, a notional release of 24 GL of Snowy-Tumut water was made through the Snowy-Murray Development in 2003-04.

A special arrangement was entered into in January 2004, with MDBC agreement, to permit additional pumping from Lake Jindabyne to facilitate the construction of Jindabyne Dam outlet works (to provide for the release of environmental flows to the Snowy River in the future).

A range of special water release arrangements were also entered into on the Snowy-Tumut Development, to increase irrigation supplies along the Murrumbidgee River system.

The pattern of releases from Murray 1 Power Station during 2003-04 was very different from that of the previous year. In 2003-04 more than half of the year’s total release from Murray 1 Power Station occurred in the first four months of the year. This pattern was above the guaranteed minimum projected release in Snowy Hydro’s operating plan for 2003-04, unlike the release pattern experienced the previous season, which created concerns for RMW regarding the operation of Hume and Dartmouth Reservoirs.

Environmental report

River flows

Following the extremely dry conditions experienced in 2002-03, it took some time before the rains experienced in parts of the upper Murray catchments raised flows in the River Murray system. There were no spills of water from major River Murray system water storages during 2003-04 apart from a controlled release from Lake Victoria and the Barrages.

As a result of the lack of any sufficiently large and long spring ‘freshes’ in the river, the Barmah-Millewa Forest Environmental Allocation was not used in 2003-04, and the annual allocation was loaned to irrigators, credited and carried over for use in a future season. However, several small flushes from the Kiewa and Ovens Rivers did result in some limited watering of parts of these forests during spring.

Inflows to the River Murray from both the Goulburn and Murrumbidgee Rivers remained very low over 2003-04 and were generally confined to low regulated flow rates. This limited opportunities for improving environmental flow conditions in the River Murray system.

Darling River flow upstream of Menindee Lakes was extremely low from October 2001 until January 2004. Most of the water reserves remaining in Menindee Lakes were contained in Lake Wetherell. The salinity of water in Lake Wetherell had risen by December 2003 to about 8000 EC in the deeper parts of the lake. New South Wales ceased releases from the lake for a short period in December 2003 to conserve water. An environmental release of water from Lake Wetherell was made in January 2004 to reinstate flow in the lower Darling River.

Extended drought conditions caused continued stress to River red gum communities downstream of Barmah-Millewa. Concerns over the widespread decline of River red gum communities downstream of Euston increased over 2003-04.

Water quality

The severe bushfires of early 2003 burnt large areas of the upper Murray catchment, creating a potential for significant impacts on in-stream and reservoir water quality should heavy rainfall result in large quantities of ash and sediment being washed from unprotected soils. As experienced last season, rainfall in 2003-04 was generally neither extensive nor persistently heavy, and consequently there were only short-term and relatively minor declines in water quality in some rivers.

Hume Reservoir again experienced persistent algae alerts. However, algae persisted in the lake unusually late into the season. Algal alerts occurred across most of the river system occasionally reaching high levels. High alert levels of blue-green algae were recorded in the lower Darling River during the low flow period prior to the releases from Menindee Lakes in January 2004. Algal levels in South Australia were consistently low except for some medium and high alert readings in the lower lakes and Coorong.

Salinity levels in the River Murray were generally very low for much of the year. The transfer of high-quality water from Hume Reservoir, coupled with low inflows and drainage returns due to the extremely dry conditions, resulted in some of the lowest salinity and turbidity readings observed. The river salinity at Morgan averaged 360 EC in February, which is approximately 260 EC below the average of about 620 EC observed over the last twenty years. Salinity levels in parts of the lower lakes, however, were high early in the season (4000 to 5000 EC) and fell to about 1000 EC in October 2003. Salinity levels steadily increased over the remainder of the season to about 2000 EC, with some higher readings caused by intrusions of seawater.

An unprecedented salt slug entered the Murray from the Darling River early in 2004. The peak salinity of more than 4000 EC from the Darling was reduced to about 1300 EC through mixing with fresh Murray water below Wentworth Weir (see Figure 7). A range of operational actions including mixing in Lake Victoria succeeded in reducing the size of the salinity peak to less than about 100 EC above the background river salinity. State agencies and RMW conducted extensive communication activities to advise water pumpers of the situation so that pumping schedules could be suitably re-arranged.

Figure 7. Salinity slug in the Murray and its mitigation, March-April 2004

TOP

Murray Mouth

In September and October 2003 a small release of water was made from Lake Alexandrina to the sea totalling approximately 280 GL. This was the first release since December 2001. Whilst there was some temporary widening of the channel at the Mouth (between the tips of Younghusband and Sir Richard Peninsulas) the peak discharge and duration of release were insufficient to scour any significant volumes of sand from inside the Mouth.

The release of 280 GL between December 2001 and June 2004 can be compared to median flows to the sea of 11 400 GL per annum under natural (pre-development) conditions and 3090 GL per annum under current levels of development. Without the sand pumping project, which commenced in October 2002, it is most likely that the Mouth would have closed.

In July 2003 a second dredge was deployed to double the sand pumping capacity, with the aim of having improved connectivity between the Coorong and the sea over summer of 2003-04.

By the end of June 2004, 1.9 million cubic metres of sand had been pumped from inside the Mouth to the beaches of Younghusband and Sir Richard Peninsulas.

At the commencement of the project there had been elevated water levels in the Coorong with very little daily tidal response. By the late summer of 2004, tidal responses were consistently in the order of 200 mm per day, which was the target recommended by the project’s scientific advisers.

Significant monitoring activities have been undertaken as part of, or associated with, the sand pumping project including:

• study of aerial photographs
• bathymetric surveys—inside the Mouth; surf zone; offshore
• surveys of Mouth position and size
• measuring salinity in Coorong and Lower Lakes
• measuring tide and lake levels
• observation of birds, fish and aquatic plants.

The monitoring assists short-term adaptive management of dredging and flow release and also provides valuable data for the identification of medium-and long-term trends.

The morphological models developed by consultants WBM Oceanics and Lawson and Treloar have been used to good effect to assist with our understanding of sediment transport processes at the Murray Mouth. The models have been used to optimise the size of dredged channels and will be used to develop improved operating rules for releases at the Barrages.

The Living Murray

RMW staff continued to assist The Living Murray by:

• providing modelling assistance for the further development of options aimed at improving environmental outcomes for the River Murray system
• providing operational and strategic advice on water management and likely associated effects
• assisting with the development of proposals for structural and operational opportunities for improving environmental values
• assisting with the development of the River Murray Environmental Manager function.

RMW will continue to be closely involved with these developments over the coming years.

River management activities

Hume-Yarrawonga Waterway Management Plan

During 2003-04 works continued under the 2002 river management plan for the Hume to Yarrawonga reach of the River Murray. The river management plan aims to balance water conveyance, economic production and environmental objectives for the reach. The plan has been developed in consultation with the Advisory Group for Hume to Yarrawonga Waterway Management, representing agencies from each state together with local landholder interests, local government and wider community representatives.

Implementation of the plan through the business plan of RMW is conducted in consultation with the advisory group.

Programs under the Waterway Management Plan include physical works under the Priority Reach Program and the Whole of Reach Program. In addition, the Land Management Review considered flood easements for regulated flows.

Physical works

After three years, condition assessments have been completed on six of the fourteen river reaches. A Review of Environmental Factors (REF) and physical works have been undertaken on three reaches, with two almost fully finished in relation to construction of erosion control structures: that is, Dights Creek (formerly incorrectly referred to as Travellers Creek) and Wodonga Creek. No further works were undertaken on the Boiling Downs reach due to access problems. Condition assessments were completed last year for the Hume, Ryans and Parlour reaches.

On-ground works completed last year are (across all programs):

Erosion control

• One anabranch bed control structure— pile field (Dights Creek)
• Four anabranch bank erosion control works— groynes (Dights, Carrolls Creeks)
• Four River Murray bank erosion control works—groynes
• Altogether, more than 4000 timber piles were driven. No rock armouring was undertaken during 2003-04.

Snags

• No snags removed
• Ten red gum snags realigned for navigation or erosion control reasons
• One red gum snag installed.

Willow management

• Lopping at five sites
• Poisoning at four sites
• Willow regrowth or new growth poisoned between Hume Dam and Lake Mulwala.

Revegetation

• Revegetation undertaken at 28 sites on River Murray main stem and anabranches.

Land management review

Significant progress was made during 2003-04 towards obtaining flood easements to confirm the MDBC’s rights to pass regulated flows within existing channel capacity in the Hume-Yarrawonga reach. A model to provide equitable valuations for more than eighty affected properties was developed by a specialist sub-committee comprising RMW, local landholders, an independent landholder, an agricultural economist and an independent land valuer. The broad form of the easement was negotiated and agreed between legal advisors to MDBC, NSW Department of Infrastructure, Planning and Natural Resources and Goulburn-Murray Water. Consultants Hassall & Associates were engaged and commenced detailed assessments of each affected property in consultation with landholders. This process was well advanced and the first offers were close to being forwarded to landholders as the 2003-04 financial year closed.

This process is expected to continue over the next twelve to twenty-four months. Easements catering for existing operations up to and including the channel capacity for regulated flows of 25 000 ML/day will be concluded prior to an assessment of the requirement for easements at higher levels arising from possible future delivery of environmental flows.

TOP

Asset management

The assets ontrolled and managed under the Agreement are investigated, designed, constructed, operated and maintained, for and on behalf of the MDBC, by three constructing authorities from New South Wales, Victoria and South Australia:

• Department of Infrastructure, Planning and Natural Resources (including the operating agent for New South Wales, State Water)
• Goulburn-Murray Water
• the Minister for the River Murray (including the operating agent for South Australia, South Australian Water Corporation).

RMW exercises the MDBC’s responsibilities in relation to management of the assets (see Appendix G). Daily operation and maintenance of the structures is by a collective team from the authorities of the three states totalling 120 staff. RMW values the dedicated service of this team and appreciates the commitment and pride that is evident in the stewardship of the assets.

The Senator Collings Trophy has been awarded annually for more than fifty years to the team looking after the asset judged to be the best maintained lock and weir. In 2003 the River Murray Water Advisory Board agreed that eligibility for award of the Collings Trophy should be extended to include all water storage assets of the River Murray System. The judging criteria were extended to include not only maintenance and care of the works and their surrounds but also the application of contemporary asset management practice. In 2003 the Senator Collings Trophy was awarded to Norm Boyd, Jeff Finch and Danny Burke at Lock and Weir 10 (Wentworth).

Since 1995, the investigation program was dominated by Hume Reservoir. During late 2003 the physical construction works there were completed. This has allowed remedial works to proceed at other assets including:

• Mildura Weir (trestle replacement)
• Tauwitchere and Ewe Island barrages (OH&S upgrade)
• Locks and Weirs 1 to 10 (replacement of navigable passes)
• Dartmouth Reservoir (scour protection works and safe access).

Hume Dam

Since April 1995, following a structural review of Hume Dam, the MDBC has been pursuing a program of upgrading the dam to contemporary standards. This program addressed:

• the stability of the dam itself
• the reliability of outlet works and spillway
• the capacity of the spillway under extreme floods.

Excluding considerations of spillway capacity, total cost is now expected to be approximately $81 million.

A risk assessment approach has been used to ensure that work proceeds in a priority order of most effective risk reduction. The ultimate goal is the achievement of risks that are as low as is reasonably practicable in line with Australian national guidelines and international best practice.

Expenditure on the works for 2003-04 was $1.2 million, bringing total expenditure to date to $79.1 million. Construction work was completed on Embankment 4 (the bank on the New South Wales abutment). A detailed review in 2001-02 had recommended that it should be modified to provide a filter zone on the downstream side and thus further reduce the risks to the dam were completed during the year.

Works included enhanced drainage of the downstream face and toe. Other works related to tidying the site after nearly seven years of remedial works and completing construction of a retaining wall between power station and switchyard to stabilise the slope downstream of the embankment. A new lookout was also constructed.

The Department of Infrastructure, Planning and Natural Resources has been investigating the determination of extreme flood estimates for the Hume Dam and the consequence of these estimates on spillway capacity. In Australian terms, the catchment area of more than 15 000 sq km is large and this has necessitated development of improved ways of estimating extreme floods for large catchments.

This leading-edge research has progressed slowly but steadily and good progress has continued to be made over the last year. RMW’s Technical Review Committee has provided valuable advice throughout this process. During the year significant progress was made on identification, testing and calibration of both event based and continuous rainfall/runoff models. In addition, a hydraulic model has been developed for the reservoir and upstream flood plains on both the Murray and Mitta Mitta arms. Extensive aerial and on-ground surveys were required for this modelling.

A comprehensive cycle of surveillance readings continues to monitor the performance of the modified embankments. Continuing deformations have been consistent with design predictions. Inflows in 2003-04 only resulted in the lake level reaching 73 per cent of capacity (2222 GL and maximum level elevation above sea level 187.58 m on 3 November 2003). Accordingly, the detailed program agreed for the first two fill cycles will be continued until after the lake next fills.

A number of additional design studies were commenced addressing the lower priority risks, which remained outstanding, including:

• earthquake capacity of spillway hoist deck piers
• structural adequacy of spillway gates
• water proofing of joints in spillway dissipater
• earthquake capacity of lower section of northern training wall
• adequacy of parapet wall on Embankment 1.

Dartmouth Dam

At Dartmouth Dam, further progress was made with the installation of access walkways across the downstream face. The walkways allow safer access for deformation surveys and reading of surveillance instrumentation. An innovative design, which takes account of the requirement for manual construction on a steep rockfill slope and readjustment to account for ongoing deformation of the main embankment, has been developed.

Work also continued on protection of areas of the spillway cascade, which had eroded during previous flood events.

Mildura Weir

In June 2003, work had commenced on a major overhaul of the lock chamber including:

• replacing four filling valves
• replacing one lock gate
• installing improved walkways on lock gates
• repainting three existing lock gates.

Work was completed by September.

Other locks and weirs

A program to improve safety for operators of locks was continued with a system of concrete barriers being installed at Lock 4 to provide safer transit for boats when the lock remains in use on rising or falling floods. In addition, handrails were installed at Locks 11 and 26 to provide enhanced safety for operating staff.

A comprehensive performance review of custom-built, track-mounted mobile cranes at locks and Weirs 1 to 10 and 15 had been undertaken in 2002-03. During 2003-04 major overhauls of the cranes at Locks 1 to 9 were undertaken to ensure that these cranes remain fully serviceable as they move closer to their design lives.

Barrages

Continuing good progress on occupational health and safety and operational flexibility improvements at the Tauwitchere and Ewe Island Barrages was made through the year. Upstream handrails were complete on both structures and downstream handrails were nearly complete on Tauwitchere Barrage. When finished over 4000m of handrail will have been installed. Lift and latch mechanisms are being installed on the 253 tainter gates to improve ease and safety of operation. A modified means of handling stoplogs in the remaining 180 bays is also being installed.

Ten gates at Tauwitchere Barrage have been fitted with hydraulic operating mechanisms, which can be remotely operated from the Goolwa Barrage. These gates will be programmed to close automatically when downstream levels rise and are nearly as high as upstream lake levels. This arrangement will help prevent reverse flow of saline water into the fresh water of Lake Alexandrina and provide additional flexibility for environmental management of the Lower lakes and Coorong. A further 20 gates will be similarly modified in the coming year.

The manually operated lock at Tauwitchere Barrage has been overhauled to make operation safer and easier. Upstream and downstream landings have also been added to make it easier for boat operators to gain access for lock operation.

At Mundoo Barrage a prototype vertical axis spindle gate has been fabricated and installed, ready for testing to confirm the adequacy of design prior to fabrication of further gates. These gates will replace concrete stoplogs, which can only be accessed by removing deck units to gain access, which is a slow and awkward process.

Navigable Pass and Fishway Project

The implementation phase of the Navigable Pass and Fishway Project commenced in mid-2001. The project is being managed by SA Water under the direction of a project steering committee, chaired by RMW, with representatives of SA Water; Department of Water, Land and Biodiversity Conservation (South Australia) and State Water (New South Wales).

The project involves:

• replacing the navigable pass section of the weir
• replacing piers constructed in the 1960s when the navigable pass sections were narrowed
• constructing a vertical slot fishway.

The first two locks and weirs to be modified were Locks 7 and 8 as these are the two that most frequently require removal and reinstatement of navigable pass sections during floods.

Concept designs for the navigable pass section were finalised in early 2001 following testing of a prototype of the proposed removable bridge section, which will sit on top of reduced height concrete piers. The stoplogs and bridge sections will be removed during floods, and vessels will pass over the half height piers that will be submerged by at least 1.9 metres of water.

To oversee the fishway program and to provide advice to the MDBC on fish passage issues throughout the Basin, the MDBC has established the Fish Passage Reference Group (FPRG). The FPRG is comprised of fish passage specialists from New South Wales, Victoria, South Australia and Queensland; an independent fish scientist; and engineers and river operators with an interest in fish passage. It is chaired by an officer of the MDBC.

During the year activities on the Navigable Pass and Fishway Project have included:

• completing design of fishways at Locks 9 and 10
• calling and assessing tenders for construction works at Locks 9 and 10
• completing construction of works at Locks 7 and 8
• commencing re-design of works for Lock 10
• continuing the fish monitoring program.

Initial testing in late summer and autumn of the fishway at Lock 8 was very encouraging, exceeding the design specifications, with passage being achieved by species and size ranges of fish not previously known to be migratory. Target species and sizes were also achieving passage.

The program of construction will continue until 2008-09, with works being undertaken on up to two locks and weirsat any one time.

Occupational health and safety

The safety of staff, their families and the general public is a high priority at all River Murray assets. A number of initiatives with a safety focus were continued in 2003-04, including:

• further progress towards replacement of navigable passes
• installing safety barriers and handrails on locks
• removing trip hazards at Locks 10 and 15
• further progress towards the OH&S upgrade of Tauwitchere and Ewe Island barrages
• progress on design of gate to replace stoplogs at Mundoo Barrage
• improving documentation of OH&S risk assessment processes and safe working procedures
• improving access onto the downstream face of Dartmouth Reservoir
• replacing locking valves on lock cranes
• provision of landings at locks and weirs and at Tauwitchere lock
• tree management
• new or enhanced fencing.

TOP

Performance report

KPA 1: Water storage and supply

Sub-output

Water storage and water delivery systems that are efficient and cost-effective, and measures which account for off-site impacts

Performance assessment:

• water delivered according to the Agreement and to states’ requests (to supply irrigation, towns and other uses, and for water quality and environmental purposes)
• cost effectiveness of operating existing water control infrastructure
• agreed assistance to land holders affected by the MDBC’s water operations provided.

Water delivery

River Murray Water accounts and water availability for the states were regularly prepared by River Murray Water and agreed to by its Water Liaison Committee. River operations plans were prepared to ensure water was delivered to the states according to water available and within river system constraints and budget.

Cost effectiveness of operations

The operation of the water control infrastructure was cost effective. (For additional information about activities undertaken during the year, see Asset management.

Assistance to landholders

In March 2000 the MDBC had announced a program involving ex gratia payments to landowners in the Mitta Mitta Valley, in relation to the impacts of the operation of Dartmouth Dam on pasture productivity. Work has continued through the year on finalising arrangements with the small number of landowners for whom payments are still to be finalised.

Good progress has been made on a program to obtain flood easements in the Hume to Yarrawonga reach of the River Murray to confirm the MDBC’s rights to pass regulated flowswithin existing channel capacity (see Land management review).

At Lake Victoria the MDBC has also purchased two properties (see Land management at Lake Victoria) as a means of addressing unacceptable grazing pressure on the Lake Victoria foreshore. Negotiations were also progressed with a number of other landowners whose land is affected by river operations.

KPA 2: River salinity mitigation

River salinity targets

For the protection of key assets and values across the Basin, and for maintenance of water quality of the shared rivers, a basin salinity target (Morgan Target) to maintain the river salinity at Morgan at less than 800 EC for 95 per cent of the time during the benchmark period has been established.

Jointly funded salinity mitigation schemes

RMWoperates seven jointly funded salinity mitigation schemes along the banks of the River Murray. These schemes intercept saline water flows that would otherwise enter the river, thereby increasing its salinity to unacceptable levels.

The efficiency and capacity of existing schemes is being progressively increased, and further schemes are being investigated and constructed. The salt is captured in evaporation basins and investigations are continuing into commercial use of the resulting products. Successful disposal will place salinity mitigation on a more sustainable basis.

Major state schemes

Barr Creek Drainage Diversion Scheme (Victoria)

This scheme was effective in reducing the salt load reaching the River Murray. With the exception of a number of short duration pump outages due to either power failure or repairs, pumping from Barr Creek was in accord with the current operating rules. Even so, a malfunction in the operation of the gates on the new Barr Creek weir in March 2004 saw approximately 60 ML of saline water being discharged to the River Murray. As this discharge was of short duration, mixing in the main stem of the River mitigated downstream impacts. Remedial action has been taken to correct the logic in the gate controller so that such an incident is not repeated.

Mildura-Merbein Scheme (Victoria)

This scheme operated in accordance with the operating criteria, although pumping rates on some of the wellpoints were slightly below design capacity. Due to a number of re-occurring operational problems, four of the pumping sites have been out of service for most of the year. Remedial investigations are continuing in conjunction with the investigations to optimise salt interception within the Sunraysia region.

Due to high flows in the River Murray during September 2003 saline water was released from Lake Hawthorn to the River in accordance with the agreed operating rules. During this period a total of 240 ML of saline water was released. As a result of these releases together with the impact of improved irrigation practice resulted in a reduction of irrigation drainage water requiring disposal, pumping to the Wargan Basins during the year was minimal. This has resulted in maintenance of low storage volumes in these basins.

Mallee Cliffs Interception Scheme (New South Wales)

Scheme performance during the year has ensured that the scheme continues to significantly reduce impacts of saline groundwater on downstream salinity. Efforts are continuing to optimise the performance of the scheme to provide the best possible outcome for the River Murray. Investigations have commenced on developing an alternative enhanced leakage pit to ensure continual operation whilst the main enhanced leakage pit is out of service for maintenance.

A detailed performance review commenced during 2003-04 as part of the 5-year rolling review requirements under Schedule C to the Agreement.

Buronga Salt Interception Scheme (New South Wales)

The Buronga Interception Scheme was originally built in 1979 with upgrade work carried out in 1988. In June 2004 approval was granted to rehabilitate and augment this scheme to replace the deteriorating infrastructure and provide additional interception capacity as part of the integration of salt interception in the Sunraysia Region.

Woolpunda Salt Interception Scheme (South Australia)

In general, the Woolpunda Salt Interception Scheme has achieved its design targets. Consequently the pumping rates were reviewed resulting in a general reduction of flow and opportunity to maximise off-peak power use.

Waikerie Salt Interception Scheme (South Australia)

A performance review of the Waikerie Salt Interception Scheme in 2002-03 indicated that at a number of locations the pumps are achieving their design targets, but there is an indication that some of the extraction bores are overpumping and will require adjustment. This has resulted in the pumping rates of individual bores being reviewed to minimise pumping whilst maintaining scheme effectiveness.

An extensive review has been carried out to identify further interception opportunities to the west of these works as well as possible enhancements of the original works. It is anticipated that the identified opportunities will be presented to the MDBC for consideration during 2004-05.

Rufus River Salt Interception Scheme (South Australia)

All 4 wellpoint lines have been successfully operating in accordance with the operating criteria and have drawn the groundwater levels down to just below target. A detailed performance review of this scheme commenced in 2002-03 to assist in optimising scheme operation and to determine if there is opportunity to expand this scheme to further reduce salt inflow to the River Murray.

KPA 3: Navigation services

Sub-output

Navigation services which are cost-effective

Performance assessment:

• quality of navigation services at weirs
• cost effectiveness of navigation services.

Performance report:

Quality navigation services at weirs

There were no sustained unplanned outages of locks. On occasions minor breakdown of hydraulic systems delayed lockages by up to a few hours.

A planned outage was undertaken at Mildura Weir to allow for refurbishment of lock gates and valves and replacement of a damaged lock gate. This provided an opportunity to paint the other three gates.

Planned outages are normally notified in advance to key river users.

Minor planned disruptions were also incurred at Locks 4 and 7 to allow the installation of concrete barriers on top of the lock chamber and at Locks 7 and 8 when access was required for construction equipment associated with construction of new navigable passes and fishways. In such circumstances lock staff endeavour to keep boat operators as informed as possible.

During major events, such as the celebration of 150 years of navigation on the Murray from August to October 2003, lock staff work with event organisers to facilitate safe passage of large numbers of vessels in as short a time as possible. The efforts of staff are much appreciated by participants in these events.

KPA 4: Other services

Sub-output

Incidental services from River Murray assets which are provided in a business-like manner

Performance assessment:

• Additional revenue achieved from River Murray Water infrastructure.

Additional revenue

This performance area relates to services provided by River Murray Water in conjunction with, but in addition to, its core business activities. The major components are the provision of water to generate hydro-power, the renting of land surrounding River infrastructure and accommodation provided to workers.

Operation of power stations at Hume Dam and Yarrawonga Weir continued throughout the 2003-04 year according to downstream flow requirements and generation capacity. At Dartmouth Dam, Southern Hydro utilised some of its water entitlement to generate additional electricity during periods of high electricity demand.

Seasonal factors can have an impact on performance in these areas, particularly hydro-generation, and a satisfactory return from these sources in one year is not a guarantee of a similar level of return in a subsequent year. With only 204 GL released at Dartmouth in 2003-04, revenue was well down on the previous year, when 2517 GL were released.

TOP

River Murray Water: Triple bottom line (sustainability) report

Introduction

River Murray Water has adopted sustainability as one of its guiding principles, and is moving to integrate this philosophy into its culture, its operations, and its management systems. The organisation believes that this approach is consistent with the intent of the COAG water reforms that led to its formation, and with the objectives of its stakeholders and community expectations. It is also in harmony with the 2001 independent pricing review that proposed the introduction of an ‘environmental dividend’.

As part of this emphasis, River Murray Water will account for its performance in promoting sustainability by producing an annual ‘triple bottom line’ report. The report will cover key environmental, social and economic issues.

Sustainability strategy

The RMW strategy is founded on the Vision for River Murray Water, which has been formally endorsed by the RMW Board and the Murray-Darling Basin Ministerial Council:

Within agreed financial, social and environmental objectives, to sustain the supply of water in the River Murray System.

This vision is carried forward in the Strategic Plan2002-2007, which contains environmental consciousness as one of its core values and principles:

We will respect and care for the natural environment, promote sustainability, and assess the social, environmental and economic effects of our actions.

This approach is reflected in the 53 specific strategies that are documented in the Strategic Plan 2002-2007, together with performance indicators and target times for accomplishment.

Social bottom line: social objectives

Staff

RMW is a small, strategically focused management unit. In fulfilling its operational responsibilities, it also utilises the services of:

• constructing authorities (state government organisations that carry out investigation, design, construction, operations and maintenance of works)
• long-term contractors, who are engaged by constructing authorities to undertake ongoing tasks such as stream gauging
• individual contractors, consultants and suppliers, who are engaged as necessary for specific tasks.

Current staff numbers that are effectively dedicated to River Murray Water activities are as follows:

For its own staff, RMW assumes direct responsibility for training, career development, occupational health and safety and succession planning. Constructing authorities employ staff who are primarily engaged in RMW activities. Some of these staff are located at structures along the river that are not readily accessible or not well supported with normal community services. RMW takes a special interest in their wellbeing and in the level of amenity available to them.

Occupational health and safety

River Murray Water functions include the operation and maintenance of a large number of specialised structures that can incur unusual occupational health and safety risks to both the staff and the general public. While vulnerability to malicious damage has been generally assessed as low, a number of projects have been carried out as part of a program to systematically reduce health and safety risks, involving such things as the major refurbishment of structures, modifications to navigable passes, the extension of handrails and the mandatory use of safety harnesses and buoyancy devices.

Community relations

RMW’s customers are the states of New South Wales, Victoria and South Australia. RMW has no direct or formal relationship with the ultimate users of the water that it delivers, or with the communities that are affected by its operations. Nevertheless RMW seeks to build cooperative and collaborative relationships with these communities through:

• active participation with community organisations in the development of relevant management plans
• publication of routine operational advice and other significant events (weekly report and flow/capacity data on website)
• providing safe and enjoyable access to sites that it controls, consistent with security considerations. Public access to structures and the surrounding areas is encouraged where possible, with recreation facilities such as picnic areas and information bays.

As well as providing public information at its sites, RMW contributes to a range of public education activities including the briefing of overseas delegations.

Environmental bottom line

Managing the river system

Central to RMW’s environmental concern is management of the river system itself. Within the organisation’s fundamental responsibility to deliver water in accordance with entitlements, RMW seeks to minimise undesirable environmental impacts of interventions that have taken place and obtain the maximum available environmental benefits from activities.

Careful attention was paid to river management during this year of continuing drought as system inflows remained low. River management was dominated by releases from Hume Dam to meet downstream consumption and a small spring flush, which resulted in excess flows to South Australia of about 270 GL. Notwithstanding good rainfall in south-east Queensland and northern New South Wales in January and February 2004, Menindee Lakes remained under NSW control in accordance with the Murray-Darling Basin Agreement.

Some of the key actions undertaken include:

• recognising river channel limits (River Murray-Barmah Choke) in systems operations
• minimising unseasonal forest and wetland inundation in summer
• minimising algal blooms as far as possible
• mitigating impacts in the Murray below Wentworth of salinity peaks mobilised by small flows in the lower Darling, following record low flow period due to drought
• regulating releases from barrages at Lake Alexandrina to reduce salinity in the Goolwa Channel and Coorong, to enhance fish spawning and to provide other ecological outcomes.

Salinity mitigation

River Murray Water operates seven jointly funded salinity mitigation schemes along the River Murray. These schemes intercept saline water flows that would otherwise enter the river, thereby increasing its salinity to unacceptable levels.

The efficiency and capacity of existing schemes is being progressively increased, and further schemes are being investigated and constructed. Construction commenced on new schemes at Pyramid Creek and Bookpurnong, whilst a major refurbishment of the Buronga Scheme was also commenced. The salt is captured in evaporation basins and investigations are continuing into commercial use of the resulting products. Successful disposal will have the effect of placing salinity mitigation on a more sustainable basis.

Extended drought conditions have resulted in relatively low salinity in the lower river Murray during 2003-04. The principal contributing factors were:

• low tributary inflows
• lower groundwater levels on the flood plain hence reduced discharge of saline groundwater
• effective operation of salt interception schemes.

In the lower lakes, however, the limited flow to the sea has resulted in an accumulation of salt. Effectively, much of the salt that has passed downriver continues to be stored in the lower lakes.

Electricity generation and consumption

Most activities of River Murray Water are not energy-intensive, but the operation of salinity mitigation schemes requires pumping and is a modest energy user, consuming less than 10 GWh per annum. Electricity consumption is minimised by careful control and good maintenance.

This consumption is more than offset by the production of ‘green’ hydroelectric power from water stored in structures operated by River Murray Water. Hydro power stations at Dartmouth and Yarrawonga are operated by Meridian Energy, whilst the power station at Hume is operated by Eraring Energy.

TOP

Economic bottom line

Commercial structure

RMW operates as a business unit of the Murray-Darling Basin Commission. Its revenue comes primarily from the three states that are its customers, with charges based on a surrogate pricing model. Charges are set on a ‘break-even’ basis and no dividends are paid.

A summary of the income and expenditure statement for 2003-04 is given in Table 5. Table 6 shows the volumes of water delivered for the year.

Table 5: River Murray Water income and expenditure, 2003-04

Table 6: State diversions from the River Murray and the Lower Darling River, 2003-04

* Operational data, subject to revision

Asset sustainability

During 2003-04 good progress was made on drafting legislation to progress amendments to the Murray-Darling Basin Agreement which, when enacted, will allow the adoption of maintenance and renewals annuities. The purpose of such annuities is to enable funds for the renewal, replacement and refurbishment of infrastructure assets to be provided on a relatively consistent basis from year to year rather than raising the funds in the year in which the expenditure is actually incurred.

This will achieve stability in operating costs from year to year and is consistent with COAG water reform principles. It also provides a sustainable approach to the long-term operation of the infrastructure assets controlled by RMW and the preservation of their service potential.

Economic impact in the region

Approximately 94 per cent of RMW expenditure is in the states that are its customers. In 2003-04, a total of $42 million was expended by constructing authorities (state government agencies in the three states) in connection with RMW activities.

TOP