42 minute read
The Hon Mike Baird MP | New South Wales Treasurer
The Hon Mike Baird MP
New South Wales has become a strong example to all states and territories of what can be achieved by selling existing assets and using the proceeds to fund new infrastructure, says New South Wales Treasurer, The Hon Mike Baird MP.
The challenges
I want to address the question: Why isn’t more infrastructure being built across the country?
What you see is a range of challenges across the states, but I believe that there are some solutions. I want to present some of the challenges, and talk about some of the solutions and the opportunities for those in the sector.
When we came into government, the infrastructure deficit, which was determined by Infrastructure NSW, was $30 billion over the next 10 years. The debt profile was $55 billion and rising.
Obviously, with that rising profile, both in terms of infrastructure needs and debt, the threat to the AAA credit rating was very apparent. Indeed, our incoming brief from Treasury made it clear that the AAA rating would be lost unless we took action.
Before the global financial crisis, you might have been able to debate the necessity of retaining the AAA rating. After the GFC, there is no debate. The cost is significant. We saw it when Western Australia lost its credit rating just recently, and its 10-year bonds blew out by close to 30 points.
Queensland had similar downgrades, and it got up to 60 points. Somewhere between 30 and 60 points for 10-year money, on $60-70 billion in debt, you start to understand the financial challenges. And that’s before you can put a dollar into infrastructure. You would have to find the additional money for the cost of your debt, not to mention the issues that a
The Hon Mike Baird MP
downgrade would create with respect to access to capital and the restrictions that might bring.
So the imperative remains to maintain the lowest possible cost of debt so that you can invest the maximum amount into infrastructure.
Ultimately, the debt levels are where the rating agencies start to focus. If you’re not controlling your debt, and you’ve got no capacity and no plan to reduce it, it’s not long before you lose your AAA rating.
At the same time, New South Wales inherited economic growth which was the slowest for any state in 10 years. Jobs growth was also the slowest of any state for 10 years.
Business confidence was at the lowest, or secondlowest, level for a big part of the previous five years, and our housing supply was the lowest it had been in many respects for 50 years. It was not exactly a good dashboard of indicators that we inherited.
If you don’t have the money, you can’t spend it. That’s the challenge we’ve had. We’ve gone from six per cent revenue growth down to about 4.2 per cent, so it’s almost a 30 per cent reduction in revenue growth during the period. In real terms, that means a loss of about $2.5 billion per year – and those are not the sorts of numbers any state government can sustain.
Dealing with an infrastructure backlog is one thing, but what also needs to be done is an analysis of the future pressures that are going to be placed on capital spending. Analysis by Infrastructure NSW reveals that by 2031 we will need 5000 extra hospital beds, more than 700,000 additional homes, the capacity to handle a 37 per cent increase in daily train trips within Sydney, and a 98 per cent increase in passenger trips in and out of Sydney by air.
When you consider the metrics we inherited – the debt projections, falling revenues and huge infrastructure demands – it’s not what you’d call a rosy picture.
The strategy
So what do you do?
For a start, tiered and long-term planning, with a clear understanding of where the city and state are going, is essential. Victoria has certainly shown itself to be a leader in this regard.
You also need to undertake rigorous project selection – something that was not done well in New South Wales by the former Labor Government. I think governments of all political persuasions have failed this test. When an election comes along, political strategy looks at where the marginal seats are, and what can be built in the middle of these marginal seats. Invariably, these proposals are not costed, and have no economic analysis and no funding allocated. That kind of process has held back this state and this country.
The Hon Mike Baird MP
There needs to be rigour around the projects you’re putting forward; and, once you have that, you need to get on and fund them.
New South Wales has taken care to get the planning right by looking at metropolitan and state plans and identifying growth areas where infrastructure is required. We have looked at the projects that are required, and have done extensive economic analysis on them.
We established Infrastructure NSW (INSW) under the stewardship of Nick Greiner, and that organisation produced a State Infrastructure Strategy. Governments will come and go, but our hope is that this plan is something that stays. This consistency is important to the infrastructure sector, because you want to work with a government that is constructive, but ultimately you want to have the opportunity to work with successive governments to deliver the projects.
Certainly, that’s what INSW has done. It has provided both a short-term plan and a long-term plan for what we can do over the next 20 years that, importantly, will establish the projects that require budget consideration now.
We have a five-year, funded plan to attack that long-term infrastructure strategy. Stakeholders have roundly applauded the prioritisation list, and we really thank Nick Greiner for his stewardship of that. It provides a very clear road map.
The priorities have been established in different timeframes, and throughout this process WestConnex was identified as a significant project. I’ve said to people across the state that, in terms of economic analysis, WestConnex is a project that can provide investment opportunities and boost productivity. It makes the most economic sense, and that’s why we’re getting on with it. It’s hard to argue with that logic.
You then flow onto other projects in the slightly longer term, such as rebuilding Wynyard and Town Hall stations for capacity, and extending the F6 motorway.
The funding
Once you have the challenges right and you have the strategy, you need to consider how it can be funded within the budgetary constraints.
The first thing we must do is stick to our budget. When you look at the data, you can see that the culture of the former government was one in which budgets didn’t really matter; expenses blew out by an average of $1.3 billion a year over 16 years. We have changed that culture and come in on average about $1 billion under projected expenses in each of our three budgets.
If you’re not controlling your budget, you’re limiting your ability to be flexible in funding infrastructure. Expense growth was more than seven per cent when we came in, but we’ve now brought it down to 2.7 per cent. We have brought expenses down, and we’ve now got the capacity to fund projects, because any uptick in the economy goes straight to the bottom line, helping us to deliver the infrastructure we need.
Improving the operating performance has also led to a decrease in net debt: you can see that, relative to the forecast debt we inherited, we’re about $9 billion under by 2014–15. We have taken some of the pressure off our debt metrics, but at the same time we want to put our foot down in relation to building, and increase infrastructure spending over the next four years, when we plan on investing about 38 per cent more than the previous four years.
So a key part of our strategy is renewing our balance sheet. This strategy has involved taking an asset on our balance sheet, and using the asset to invest in infrastructure: an asset for an asset. The approach has been called social privatisation by a number of significant industry figures and, importantly, it is moving across the political divide. In fact, Paul Howes,
Above: The Hon Warren Truss MP and the Hon Mike Baird MP at Partnerships.
The Hon Mike Baird MP
the National Secretary of the Australian Workers’ Union, recently supported this approach.
We also need to engage superannuation funds with the right assets, ensuring a win-win situation. Eighty per cent of the leases of Port Botany and Port Kembla went to Australian superannuation funds, which now own the assets. So millions of Australians still have a stake in those assets. The state receives the money up-front, so we can invest in additional infrastructure, and the private sector capital gets invested into the ports, driving efficiencies in a way the public sector cannot. The new port owners, without the same constraints on their balance sheet, are mapping the logistic chain, identifying where leakages are and looking for opportunities for improvement.
The Port of Newcastle will be assessed using a similar approach, due to the success of the Port Botany and Port Kembla operations. Newcastle has embraced the transaction and will be revitalised as a result, because we have been honest with the community and told them where we are at financially, and exactly what we want to do. The political class underestimates the intelligence of the electorate and their capacity for an honest debate.
The delivery
The final question is what do we do in delivery, once the funding, the strategy and the priorities are in place.
As I indicated earlier, the first project we are going to deliver is WestConnex.
This project involves 33 kilometres of roadway, the removal of 3000 trucks from Parramatta Road, and a time saving of 40 minutes from Parramatta to Sydney Airport, including 52 sets of traffic lights avoided. It is going to be a revolution for Western Sydney.
The financing model we are putting forward shows innovation in project delivery. We are responding to the market’s concern about patronage risk, and our own balance sheet challenge, by bringing the two together and delivering a sustainable model.
The Government’s initial contribution of $1.8 billion comes from the port leases and will be used to construct stage one, in collaboration with the Commonwealth contribution. Through these contributions, we’ll prove up cash flows from tolling, which will then be taken to the market. Once those
Right: The Hon Mark Birrell greets The Hon Mike Baird MP.
The Hon Mike Baird MP
cash flows are borrowed against, we’ll build stage two and then repeat the process to build stage three.
There is capacity for superannuation funds, and obviously financiers and banks, to participate in the debt side of the arrangement. At the conclusion, we then have the capacity to invite superannuation funds to participate in the equity process, having already eliminated the ‘greenfield’ risk around patronage.
We’re excited by the opportunities. Private sector equity is not just a case of the Government handing out money and moving out of the picture – I want a constant dynamic tension as we continue releasing capital.
In relation to tolling, which has historically been a difficult issue politically, I think the battle is largely won. We have been honest with the community in telling them that we cannot afford to build infrastructure unless they are able to contribute. In light of this, our policy has been to put a benefit in place before we ask for contributions through tolling. Obviously, we will try to minimise the toll cost, but tolling continues to be part of the critical path when delivering infrastructure.
New South Wales has a significant Public Private Partnership (PPP) agenda. We are leading the country on PPPs, because we can see that partnerships are the critical way that we are going to deliver the infrastructure backlog.
Another benefit of having the infrastructure pipeline established and laid out on the table is the opportunity for unsolicited bids. We are able to say to the private sector: ‘You have the list, you know the timing, you know the capital we have – can you think of ideas or opportunities to bring these projects forward?’
For example, the project of linking the M1, which currently terminates in Wahroonga, with the M2 has been around for a long time [formerly F3–M2], but in terms of priority has sat below other projects. An unsolicited proposal from Transurban suggested that the project could be delivered with minimal government contribution. Although the negotiations are not yet finalised, there has been strong progress, and this approach should be encouraged. This is clearly an example where traditional tendering would not have delivered the same innovation.
My final point is about the constructive role of the Federal Government, and it’s encouraging that we have one that is committed to infrastructure delivery and that is prepared to provide incentives to the states to invest in infrastructure.
One of the incentives I have spoken about previously is in relation to tax-equivalent payments. Governments are starting to unlock their assets, as New South Wales is doing, and taking those proceeds and putting them into new assets, which brings huge benefits. But when a state-owned asset is privatised, there is also the loss of the income stream that currently exists with tax-equivalent payments. This becomes a company tax windfall for the Commonwealth. continued on page 10
Ichthys Cryogenic Tanks, Blaydin Point, Darwin
Laing O’Rourke, in partnership with Kawasaki Heavy Industries, is delivering a network of four cryogenic tanks for the $34 billion Ichthys LNG project at Blaydin Point, Darwin.
Laing O’Rourke Engineering the future
With four decades of experience in local, engineering-led, multidisciplined and cost-effective construction solutions, Laing O’Rourke is currently delivering some of the most exciting and complex infrastructure tasks throughout Australia and Asia.
phone: +61 2 9903 0300 web: laingorourke.com
Moorebank Units Relocation, New South Wales
Laing O’Rourke is managing contractor for the $870 million Moorebank Units Relocation project, Australia’s biggest single Defence capital works project since World War II. Thirteen Defence units and four allied facilities will relocate from a Commonwealth-owned Defence-occupied site at Moorebank to Holsworthy Barracks. Laing O’Rourke is designing and delivering a wide range of special-use facilities and infrastructure improvements, as well as additional support facilities.
McLachlan and Ann, Queensland TPI Track Maintenance, Western Australia Blacktown Hospital, New South Wales
McLachlan and Ann is Laing O’Rourke’s mixed-use development in Brisbane’s Fortitude Valley, comprising a 12-storey commercial tower, a 21-storey residential tower and a 5-storey mixeduse building with integrated commercial and retail space. Laing O’Rourke delivered the commercial tower earlier this year, which is now its new Queensland headquarters. The residential and mixed-use retail components will be completed in late 2013. In 2007, Laing O’Rourke built a 250-kilometre, heavy-haul railway for Fortescue Metals Group to service their iron ore export network. Following the successful delivery of the railway, Laing O’Rourke was awarded a six-year maintenance programme, working from Anderson Point Port at Port Hedland to the Cloudbreak Mine to maintain a high standard of railway track and other corridor infrastructure. Laing O’Rourke has been awarded a $145 million contract for the new Clinical Services Building at Blacktown Hospital in Sydney’s west. The project involves the design and construction of a new five-storey clinical services building, adjacent to the existing Blacktown Hospital, and linked by a fully enclosed “hospital street”. The new building will include comprehensive care centres for cancer, cardiac, respiratory and aged care services in purpose-built facilities.
The Hon Mike Baird MP
continued from page 7
My argument to the Federal Government would be that, if that windfall gain doesn’t sit within their forward estimates, so there’s no recurrent cost, why not take the funds that are released and put them into infrastructure? I know the Federal Treasurer is interested in leading this work, and certainly it is something that I think we should look at, because it provides an additional opportunity and an additional incentive. [Editor’s note: Federal and state governments have since reached an in-principle agreement to look further at the issue of tax-equivalent payments.] As governments face political battles over releasing assets, the more money that we can secure for infrastructure is not only good for the state, but also good for the nation.
What we can’t forget with infrastructure is that, underlying it, we are trying to make a difference to people’s lives. Part of that concept is saying ‘an asset for an asset’.
Whether in roads, in hospitals or in a light rail system in Newcastle, I think understanding the connection with day-to-day lives and promoting that is the most powerful way that governments can bring the community along.
The Hon Mike Baird MP, New South Wales Treasurer
Following the election of the New South Wales Liberal and Nationals Government on 26 March 2011, Mike Baird was appointed Treasurer of New South Wales, and in September 2012, he gained the Industrial Relations portfolio. Mike had served as Shadow Treasurer since December 2008, and previously as Shadow Minister for Energy, Finance and Youth Affairs.
Mike was elected Member for Manly in 2007 after an 18-year banking career incorporating corporate banking, securitisation, debt capital markets and project finance in Australia, London and Hong Kong.
Career highlights include managing corporate finance transactions across a range of industries for Deutsche Bank, and being Head of Originations, debt capital markets in London for the NAB.
Prior to his election to Parliament, Mike was Head of Institutional Banking for HSBC in Australia and New Zealand.
Right: The long-term leasing of Port Botany (pictured) and Port Kembla was key to the Government’s strategy.
Network Integrity Network Integrity SERVICE DELIVERY SERVICE DELIVERY
The Network Integrity (NI) area of Telstra delivers customer solutions for asset relocations and commercial works. We work with our stakeholders to minimise damage, including working closely with the The Network Integrity (NI) area of Telstra delivers customer solutions for Asset ‘Dial Before You Dig’ (1100) service. We survey the Inter Exchange Relocations and Commercial Works. We work with our stakeholders to minimise Network (IEN) cable routes, which link all major capital cities in Australia to identify potential risks to Telstra assets. We also provision HFC (Foxtel/BigPond) network to new and existing multi-dwelling unit developments, commercial and corporate services. damage including working closely with the “Dial Before You Dig” (1100) service. We survey the Inter Exchange Network (IEN) cable routes which link all major capital cities in Australia to identify potential risks to Telstra Assets. We also provision HFC (Foxtel/BigPond) network to new and existing Multi Dwelling Unit developments, Commercial and Corporate services. In the Network Integrity area, we encourage developers and builders to contact us to ensure network assets and infrastructure are not affected by or included in the proposed “building envelope”. An example of this is when Telstra pits or manholes end up in customers’ proposed driveways! This can lead to serious Health and Safety risks for Telstra staff, the general public and the property owner, as well as potential liability for breach of Health and Safety legislation. Such a development may also prevent Telstra from exercising its rights to access its assets and infrastructure granted under the Telecommunications Act 1997 (Cth). Telstra recently modified its PID or “Pit In Driveway” policy in an effort to avoid incidents of non standard work practices relating to Telstra pits and manholes. Because every development is unique, Telstra NI actively encourages all developers, contractors, builders or members of the public to contact Telstra as early as possible in the development process to discuss and register their PID inquiry. Damage to the Telstra network continues to be an area of concern. In the past four financial years Telstra has had an average of 20,000 incidents of network damage nationally. That’s nearly 55 damages per day! In Network Integrity we ensure compliance with the strategies put in place to avoid damage and to protect Telstra’s valuable assets. NI works to avoid the risks of: • Injury or death to workers or the general public • Damage to Telstra’s assets • The significant costs of repairing damage faced by Telstra and those parties responsible • Disruption to services and inconvenience to Telstra customers. Under no circumstances should anyone try to move or alter Telstra’s network infrastructure without authorisation. Under the Telecommunications Act 1997 (Cth) only persons authorised by Telstra can undertake work on Telstra’s assets or enter a facility owned or operated by Telstra. Interfering (including unauthorised entry or tampering) with the infrastructure is a criminal offence under the Criminal Code Act 1995 (Cth). Developers can avoid expensive rework and costs by contacting NI before beginning work. Recently the developer of a site in NSW interfered with Telstra’s assets by raising footpath levels without first consulting Telstra in relation to its proposed works. The works significantly reduced access to the public telephone booth and encroached on a Telstra pillar. In another example, a pole with Telstra telephone lines was not relocated prior to land being subdivided by a Developer. This oversight resulted in the pole remaining
in the customer’s back yard. The Builder advised the customer they would arrange for the pole to be relocated upon completion of the house, but unfortunately this didn’t happen and the customer was left with the relocation cost.Network Integrity Network Integrity The Network Integrity (NI) area of Telstra delivers customer solutions for Asset Relocations and Commercial Works. We work with our stakeholders to minimise damage including working closely with the “Dial Before You Dig” (1100) service. We survey the Inter Exchange Network (IEN) cable routes which link all major SERVICE DELIVERY SERVICE DELIVERY capital cities in Australia to identify potential risks to Telstra Assets. We also provision HFC (Foxtel/BigPond) network to new and existing Multi Dwelling Unit developments, Commercial and Corporate services. In the Network Integrity area, we encourage developers and builders to contact us to ensure network assets and infrastructure are not affected by or included in the proposed “building envelope”. An example of this is when Telstra pits or manholes end up in customers’ proposed driveways! This can lead to serious Health and Safety risks for Telstra staff, the general public and the property owner, as well as potential liability for breach of Health and Safety legislation. Such a development may also prevent Telstra from exercising its rights to access its assets and infrastructure granted under the Telecommunications Act 1997 (Cth). Telstra recently modified its PID or “Pit In Driveway” policy in an effort to avoid incidents of non standard work practices relating to Telstra pits and manholes. Because every development is unique, Telstra NI actively encourages all developers, Conscientious developers always check where the existing Telstra assets are prior contractors, builders or members of the public to contact Telstra as early as possible to commencing development. A developer recently purchased land in Victoria in the development process to discuss and register their PID inquiry. and developed it into a residential estate. The site was surveyed, drainage, roads and paths were installed, and new utilities (gas, electricity, water) were provided. Damage to the Telstra network continues to be an area of concern. In the past Unfortunately the developer did not consult with Telstra about existing Telstra four financial years Telstra has had an average of 20,000 incidents of network assets. As a result, customers who bought blocks found Telstra network (pipe/ damage nationally. That’s nearly 55 damages per day! In Network Integrity we cable and manholes) in their front yards. Subdivision permits usually state the ensure compliance with the strategies put in place to avoid damage and to developer must at their cost provide “clear title” to prospective property owners. protect Telstra’s valuable assets. NI works to avoid the risks of: This would include relocating all utilities that need to be relocated - including • Injury or death to workers or the general public Telstra assets – prior to sale of the developed land. Developers can easily obtain • Damage to Telstra’s assets access to this information about our assets by obtaining Telstra “Dial Before • The significant costs of repairing damage faced by Telstra and those You Dig” plans. But in this case, the new property owners now face the cost of parties responsible relocating Telstra’s assets. • Disruption to services and inconvenience to Telstra customers. Network Integrity proactively promotes damage minimisation strategies, Under no circumstances should anyone try to move or alter Telstra’s network together with the “Dial Before You Dig” service, to raise what we call “cable infrastructure without authorisation. Under the Telecommunications Act 1997 awareness” in Australia. We frequently conduct cable awareness presentations (Cth) only persons authorised by Telstra can undertake work on Telstra’s assets or to Councils, Developers and Utility Companies. This year alone NI have enter a facility owned or operated by Telstra. Interfering (including unauthorised presented more than fifty Cable Awareness presentations to the industry - entry or tampering) with the infrastructure is a criminal offence under the including the new NBN Company. Criminal Code Act 1995 (Cth). Developers can avoid expensive rework and costs by contacting NI before beginning work. Recently the developer of a site in NSW interfered with Telstra’s assets by raising footpath levels without first consulting Telstra in relation to its proposed works. The works significantly reduced access to the public telephone booth and encroached on a Telstra pillar. In another example, a pole with Telstra telephone lines was not relocated prior to land being subdivided by a Developer. This oversight resulted in the pole remaining These are just some examples of how developers and builders can avoid the costs of rework and repairs by consulting Telstra Network Integrity about their proposed plans prior to commencement of works. NI looks forward to working with the building industry to achieve the best outcome for our customers.
in the customer’s back yard. The Builder advised the customer they would arrange for the pole to be relocated upon completion of the house, but unfortunately this didn’t happen and the customer was left with the relocation cost. Conscientious developers always check where the existing Telstra assets are prior to commencing development. A developer recently purchased land in Victoria and developed it into a residential estate. The site was surveyed, drainage, roads and paths were installed, and new utilities (gas, electricity, water) were provided. Unfortunately the developer did not consult with Telstra about existing Telstra assets. As a result, customers who bought blocks found Telstra network (pipe/ cable and manholes) in their front yards. Subdivision permits usually state the developer must at their cost provide “clear title” to prospective property owners. This would include relocating all utilities that need to be relocated - including Telstra assets – prior to sale of the developed land. Developers can easily obtain access to this information about our assets by obtaining Telstra “Dial Before You Dig” plans. But in this case, the new property owners now face the cost of relocating Telstra’s assets. Network Integrity proactively promotes damage minimisation strategies, together with the “Dial Before You Dig” service, to raise what we call “cable awareness” in Australia. We frequently conduct cable awareness presentations to Councils, Developers and Utility Companies. This year alone NI have presented more than fifty Cable Awareness presentations to the industry - including the new NBN Company. These are just some examples of how developers and builders can avoid the costs of rework and repairs by consulting Telstra Network Integrity about their proposed plans prior to commencement of works. NI looks forward to working with the building industry to achieve the best outcome for our customers.
In the network integrity area, we encourage developers and builders to contact us to ensure network assets and infrastructure are not affected by, or included in, the proposed ‘building envelope’. An example of this is when Telstra pits or manholes end up in customers’ proposed driveways. This can lead to serious health and safety risks for Telstra staff, the general public and the property owner, as well as potential liability for breach of Health and Safety legislation. Such a development may also prevent Telstra from exercising its rights to access its assets and infrastructure granted under the Telecommunications Act 1997 (Cth). Telstra recently modified its PID or ‘Pit In Driveway’ policy in an effort to avoid incidents of non-standard work practices relating to Telstra pits and manholes. Because every development is unique, Telstra NI actively encourages all developers, contractors, builders or members of the public to contact Telstra as early as possible in the development process to discuss and register their PID inquiry. Damage to the Telstra network continues to be an area of concern. In the past four financial years, Telstra has had an average of 20,000 incidents of network damage nationally. That’s nearly 55 damages per day! In Network Integrity, we ensure compliance with the strategies put in place to avoid damage and to protect Telstra’s valuable assets. NI works to avoid the risks of: • injury or death to workers or the general public • damage to Telstra’s assets • the significant costs of repairing damage faced by Telstra and those parties responsible • disruption to services and inconvenience to Telstra customers. Under no circumstances should anyone try to move or alter Telstra’s network infrastructure without authorisation. Under the Telecommunications Act 1997 (Cth), only persons authorised by Telstra can undertake work on Telstra’s assets or enter a facility owned or operated by Telstra. Interfering (including unauthorised entry or tampering) with the infrastructure is a criminal offence under the Criminal Code Act 1995 (Cth). Developers can avoid expensive rework and costs by contacting NI before beginning work. Recently, the developer of a site in New South Wales interfered with Telstra’s assets by raising footpath levels without first consulting Telstra in relation to its proposed works. The works significantly reduced access to the public telephone booth and encroached on a Telstra pillar. In another example, a pole with Telstra telephone lines was not relocated prior to land being subdivided by a developer. This oversight resulted in the pole remaining in the customer’s backyard. The builder advised the customer they would arrange for the pole to be relocated upon completion of the house, but unfortunately this didn’t happen, and the customer was left with the relocation cost.
The Network Integrity (NI) area of Telstra delivers customer solutions for Asset Relocations and Commercial Works. We work with our stakeholders to minimise damage including working closely with the “Dial Before You Dig” (1100) service. We survey the Inter Exchange Network (IEN) cable routes which link all major capital cities in Australia to identify potential risks to Telstra Assets. We also provision HFC (Foxtel/BigPond) network to new and existing Multi Dwelling Unit developments, Commercial and Corporate services. In the Network Integrity area, we encourage developers and builders to contact us to ensure network assets and infrastructure are not affected by or included in the Conscientious developers always check where the existing Telstra assets are prior to commencing development. A developer recently proposed “building envelope”. An example of this is when Telstra pits or manholes end up in customers’ proposed driveways! This can lead to serious Health and purchased land in Victoria and developed it into a residential estate. Safety risks for Telstra staff, the general public and the property owner, as well as The site was surveyed, drainage, roads and paths were installed, potential liability for breach of Health and Safety legislation. Such a development and new utilities (gas, electricity, and water) were provided. may also prevent Telstra from exercising its rights to access its assets and Unfortunately, the developer did not consult with Telstra about infrastructure granted under the Telecommunications Act 1997 (Cth). existing Telstra assets. As a result, customers who bought blocks found Telstra network (pipe/ cable and manholes) in their front yards. Subdivision permits usually state the developer must at their own cost provide ‘clear title’ to prospective property owners. This would include relocating all utilities that need to be relocated – including Telstra assets – prior to sale of the developed land. Developers can easily obtain access to this information about our assets by obtaining Telstra recently modified its PID or “Pit In Driveway” policy in an effort to avoid incidents of non standard work practices relating to Telstra pits and manholes. Because every development is unique, Telstra NI actively encourages all developers, contractors, builders or members of the public to contact Telstra as early as possible in the development process to discuss and register their PID inquiry. Damage to the Telstra network continues to be an area of concern. In the past Telstra ‘Dial Before You Dig’ plans. But in this case, the new property four financial years Telstra has had an average of 20,000 incidents of network owners now face the cost of relocating Telstra’s assets. damage nationally. That’s nearly 55 damages per day! In Network Integrity we ensure compliance with the strategies put in place to avoid damage and to Network Integrity proactively promotes damage minimisation protect Telstra’s valuable assets. NI works to avoid the risks of: strategies, together with the ‘Dial Before You Dig’ service, to raise • Injury or death to workers or the general public what we call ‘cable awareness’ in Australia. We frequently conduct • Damage to Telstra’s assets cable awareness presentations to councils, developers and utility • The significant costs of repairing damage faced by Telstra and those companies. This year alone, NI have presented more than 50 cable parties responsible awareness presentations to the industry – including the new NBN • Disruption to services and inconvenience to Telstra customers. Company. These are just some examples of how developers and builders can avoid the costs of rework and repairs by consulting Telstra Network Integrity about their proposed plans prior to the commencement Under no circumstances should anyone try to move or alter Telstra’s network infrastructure without authorisation. Under the Telecommunications Act 1997 (Cth) only persons authorised by Telstra can undertake work on Telstra’s assets or enter a facility owned or operated by Telstra. Interfering (including unauthorised entry or tampering) with the infrastructure is a criminal offence under the of works. NI looks forward to working with the building industry to Criminal Code Act 1995 (Cth). achieve the best outcome for our customers. Developers can avoid expensive rework and costs by contacting NI before beginning work. Recently the developer of a site in NSW interfered with Telstra’s assets by raising footpath levels without first consulting Telstra in relation to its proposed works. The works significantly reduced access to the public telephone booth and encroached on a Telstra pillar. In another example, a pole with Telstra telephone lines was not relocated prior to land being subdivided by a Developer. This oversight resulted in the pole remaining
The Network Integrity (NI) area of Telstra delivers customer solutions for Asset Relocations and Commercial Works. We work with our stakeholders to minimise damage including working closely with the “Dial Before You Dig” (1100) service. in the customer’s back yard. The Builder advised the customer they would arrange for the pole to be relocated upon completion of the house, but unfortunately this didn’t happen and the customer was left with the relocation cost. We survey the Inter Exchange Network (IEN) cable routes which link all major capital cities in Australia to identify potential risks to Telstra Assets. We also provision HFC (Foxtel/BigPond) network to new and existing Multi Dwelling Unit developments, Commercial and Corporate services. In the Network Integrity area, we encourage developers and builders to contact us to ensure network assets and infrastructure are not affected by or included in the proposed “building envelope”. An example of this is when Telstra pits or manholes end up in customers’ proposed driveways! This can lead to serious Health and Safety risks for Telstra staff, the general public and the property owner, as well as potential liability for breach of Health and Safety legislation. Such a development may also prevent Telstra from exercising its rights to access its assets and infrastructure granted under the Telecommunications Act 1997 (Cth). Telstra recently modified its PID or “Pit In Driveway” policy in an effort to avoid incidents of non standard work practices relating to Telstra pits and manholes. Because every development is unique, Telstra NI actively encourages all developers, contractors, builders or members of the public to contact Telstra as early as possible in the development process to discuss and register their PID inquiry. Conscientious developers always check where the existing Telstra assets are prior to commencing development. A developer recently purchased land in Victoria and developed it into a residential estate. The site was surveyed, drainage, roads and paths were installed, and new utilities (gas, electricity, water) were provided. Damage to the Telstra network continues to be an area of concern. In the past four financial years Telstra has had an average of 20,000 incidents of network damage nationally. That’s nearly 55 damages per day! In Network Integrity we ensure compliance with the strategies put in place to avoid damage and to protect Telstra’s valuable assets. NI works to avoid the risks of: • Injury or death to workers or the general public • Damage to Telstra’s assets • The significant costs of repairing damage faced by Telstra and those parties responsible Unfortunately the developer did not consult with Telstra about existing Telstra assets. As a result, customers who bought blocks found Telstra network (pipe/ cable and manholes) in their front yards. Subdivision permits usually state the developer must at their cost provide “clear title” to prospective property owners. This would include relocating all utilities that need to be relocated - including Telstra assets – prior to sale of the developed land. Developers can easily obtain access to this information about our assets by obtaining Telstra “Dial Before You Dig” plans. But in this case, the new property owners now face the cost of relocating Telstra’s assets. • Disruption to services and inconvenience to Telstra customers. Network Integrity proactively promotes damage minimisation strategies, Under no circumstances should anyone try to move or alter Telstra’s network infrastructure without authorisation. Under the Telecommunications Act 1997 (Cth) only persons authorised by Telstra can undertake work on Telstra’s assets or enter a facility owned or operated by Telstra. Interfering (including unauthorised entry or tampering) with the infrastructure is a criminal offence under the together with the “Dial Before You Dig” service, to raise what we call “cable awareness” in Australia. We frequently conduct cable awareness presentations to Councils, Developers and Utility Companies. This year alone NI have presented more than fifty Cable Awareness presentations to the industry - including the new NBN Company. Criminal Code Act 1995 (Cth). Developers can avoid expensive rework and costs by contacting NI before beginning work. Recently the developer of a site in NSW interfered with Telstra’s assets by raising footpath levels without first consulting Telstra in relation to its proposed works. The works significantly reduced access to the public telephone booth and encroached on a Telstra pillar. In another example, a pole with Telstra telephone lines was not relocated prior to land being subdivided by a Developer. This oversight resulted in the pole remaining These are just some examples of how developers and builders can avoid the costs of rework and repairs by consulting Telstra Network Integrity about their proposed plans prior to commencement of works. NI looks forward to working with the building industry to achieve the best outcome for our customers.
in the customer’s back yard. The Builder advised the customer they would arrange for the pole to be relocated upon completion of the house, but unfortunately this didn’t happen and the customer was left with the relocation cost. Conscientious developers always check where the existing Telstra assets are prior to commencing development. A developer recently purchased land in Victoria and developed it into a residential estate. The site was surveyed, drainage, roads and paths were installed, and new utilities (gas, electricity, water) were provided. Unfortunately the developer did not consult with Telstra about existing Telstra assets. As a result, customers who bought blocks found Telstra network (pipe/ cable and manholes) in their front yards. Subdivision permits usually state the developer must at their cost provide “clear title” to prospective property owners. This would include relocating all utilities that need to be relocated - including Telstra assets – prior to sale of the developed land. Developers can easily obtain access to this information about our assets by obtaining Telstra “Dial Before You Dig” plans. But in this case, the new property owners now face the cost of relocating Telstra’s assets. Network Integrity proactively promotes damage minimisation strategies, together with the “Dial Before You Dig” service, to raise what we call “cable awareness” in Australia. We frequently conduct cable awareness presentations to Councils, Developers and Utility Companies. This year alone NI have presented more than fifty Cable Awareness presentations to the industry - including the new NBN Company. These are just some examples of how developers and builders can avoid the costs of rework and repairs by consulting Telstra Network Integrity about their proposed plans prior to commencement of works. NI looks forward to working with the building industry to achieve the best outcome for our customers.
Network Integrity is contactable on 1800 810 443Network Integrity is contactable on 1800 810 443 or or email email F1102490@team.telstra.comF1102490@team.telstra.com
Network Integrity is contactable on 1800 810 443 or email F1102490@team.telstra.com
Network Integrity is contactable on 1800 810 443 email F1102490@team.telstra.comNetwork Integrity is contactable on 1800 810 443 or email F1102490@team.telstra.com or
IS TENIX BECOMING MORE SUSTAINABLE?
Yes, they have just been awarded Australia’s first ever Infrastructure Sustainability (IS) Design rating, achieving an ‘Excellent’ rating level for the design of two sewage treatment plants (STPs) at Cannonvale and Proserpine in North Queensland.
Australia spent more than $60 billion creating infrastructure in 2011/12. This included investment in roads, ports, railways, bridges, telecommunications, water and wastewater, electricity generation, electricity transmission and distribution, and gas pipelines.
The IS rating scheme, developed and administered by the Infrastructure Sustainability Council of Australia (ISCA) is Australia’s only comprehensive scheme for evaluating the sustainability of the design, construction and operation of infrastructure, setting a beyond best practice benchmark for sustainability in infrastructure.
Tenix was awarded Australia’s first IS rating, for the design of Proserpine and Cannonvale STPs, which they are also constructing and will operate and maintain on behalf of the Whitsunday Regional Council.
In using the IS rating tool for the project, Tenix was able to confirm that their treatment plant designs are beyond best practice. The designs achieved the highest possible score in the IS rating tool’s Materials and Innovation categories.
Equally, the IS rating process for the STPs allowed and encouraged Tenix to step up and identify and implement best practice and innovative sustainability solutions in other areas to deliver long-term environmental, social and economic benefits for the Whitsunday region.
Tenix used a compact membrane bio-reactor (MBR) design for the Cannonvale plant, and a sequence-batch reactor (SBR) at Proserpine, instead of the larger, more complex designs originally proposed to the client. This resulted in systems that require less building materials and have a smaller site footprint compared to the original designs. Both Tenix-designed plants will produce high-quality effluent using as little energy as possible, setting an industry benchmark in the process.
As a result, the Tenix designs will achieve estimated annual electricity consumption savings and reduced carbon emissions of 305 megawatt hours and 272 tonnes respectively, compared to typical plant designs. This equates to annual savings of $75,000 in ongoing operational costs.
The design also uses less construction materials and incorporates re-use. For example, a cut/fill balance in the earthworks design minimises the import and export of material from each site, saving money and reducing waste charges and the associated emissions generated by transport. The design also avoided using asphalt for roads, instead using ‘green’ concrete supplied from a batch plant next to the Cannonvale STP. The ‘green’ concrete used for the project substitutes up to 30 per cent of cement component with fly ash from a nearby power station.
The materials specified in the initial design provided to Tenix and Council would have accounted for the equivalent of 5094 tonnes of CO2 emissions. In contrast, Tenix’s design will only generate 3264 tonnes of CO2-e for materials (including the re-use of materials) – a 36 per cent reduction (1830 tonnes) in emissions.
As a result of expected operational energy consumption reductions and lower materials use, 15,400 tonnes of CO2-e will be saved in the construction and operation of the plants.
As a regional first, the Council and Tenix developed a plan to identify and assess the risks posed by climate change to the design and operation of the upgraded Cannonvale and Proserpine plants. The analysis was based on climate projections sourced from CSIRO, the Bureau of Meteorology, and external consultant modelling. Climatechange related hazards were identified, assessed and risk-mapped for various components of the plants and associated sewage collection and discharge networks over three time periods (present day, 2030 and 2070).
A number of very high risks were identified in relation to five components of the plants, including flood impacts (2030 and 2070 years), access to site, heatwave impacts on materials and cyclonic impacts on electrical controls. The risks and adaptation measures – excluding low risks – have been added to the project risk register and will be taken into account when preparing and implementing the site operations and maintenance plans for each of the plants.
A local participation plan was also developed to ensure that at least 70 per cent of the project’s procurement budget is spent within Queensland, and as much as possible of this in the local Whitsunday Region. To date, the plan has already been exceeded, with 50 per cent of the project procurement expenditure spent in the Whitsunday region and a further 30 per cent spent in south-east Queensland. Spend outside of Queensland has generally been for specialised equipment not available locally.
A number of other sustainability initiatives were also developed, including a Green IT plan (resulting in annual savings of 10.7 megawatt hours and avoiding emission of 9.5 tonnes of CO2-e) and fuel-efficient vehicles to save fuel and reduce carbon emissions.
Site-based initiatives have included using recycled water for hydro-static testing of the tanks (resulting in the saving of two megalitres of potable water – nearly the volume of an Olympic-sized swimming pool) and the installation and use of rainwater tanks for amenities and landscape irrigation.
There has also been a significant focus on ‘zero harm’ safety drivers across all project phases. To date, there have been no lost-time injuries recorded on site. In addition, a culture of reporting near-misses has been developed as a basis for developing safety stralegies to avoid possible injuries.
Tenix and Whitsunday Regional Council have shown leadership in demonstrating how sustainability of critical infrastructure can bring benefits to the local community and the environment – including in this instance, the Great Barrier Reef Marine Park and the 74 Whitsunday Islands that fringe the coastline.
The IS rating scheme is focused on changing industry behaviour and making sustainability a priority in the planning, delivery and operation of infrastructure.
Designing and delivering more sustainable infrastructure provides benefits to asset owners, users and society over the long life of infrastructure, including lower environmental impact, enhanced social outcomes, better asset performance, and commercial advantages.
First in Australia to receive an Infrastructure Sustainability rating.
“I am proud to be part of a company that is building sustainability into its infrastructure projects and helping to protect the Great Barrier Reef”.
Simon Mackenzie, Senior Project Manager
Tenix has been awarded Australia’s first IS (Infrastructure Sustainability) rating for its design of two wastewater treatment plants. The IS scheme is Australia’s only comprehensive scheme for evaluating the sustainability of the design, construction and operation of infrastructure. Simon is overseeing the upgrade of the wastewater treatment plants for the Whitsunday Regional Council in North Queensland.
To find out how go to www.tenix.com/whitsunday
Whitsunday Wastewater Treatment Plants Upgrades
Tenix has been awarded a contract by Whitsunday Regional Council to design and construct two wastewater treatment plants, at Cannonvale and Proserpine, in North Queensland. Tenix was awarded the contract for the ability to provide end-to-end design, construction and operation of the two plants. Following construction, Tenix will operate and maintain the upgraded plants under a long-term contract with the Council.
Tenix is a leading delivery partner to owners of gas, electricity, water, wastewater, heavy industrial and mining assets across Australia, New Zealand and the Pacific. We design, construct, operate, maintain and manage assets and systems to deliver optimal results for owners and their customers.
