Hunter Water: Reducing pressure on local water prices
In June 2014, Veolia was awarded a contract to operate and maintain Hunter Water's 25 treatment plants. The $279 million contract is the largest ever awarded by Hunter Water.
THE CHALLENGEHunter Water is a State Owned Corporation (SOC) providing drinking water, wastewater, recycled water and some stormwater services to a population approaching 575,000 people across the Lower Hunter.
In 2014, Hunter Water was acutely aware of the mining industry downturn which caused a spike in the number of families in the Hunter to experience financial hardship. With this in mind, Hunter Water required an outsourced asset management solution that would help ease this pressure and keep water bills low while ensuring the continued delivery of safe and reliable water and wastewater services.
THE SOLUTIONIn June 2014, Veolia was awarded a contract to operate and maintain Hunter Water's 25 treatment plants. The $279 million contract is the largest ever awarded by Hunter Water and comes after a 12 month tender process overseen by independent procurement specialists to ensure the integrity of the process.
This contract has seen Veolia create 65 positions; further adding to an existing workforce of 270 Veolia employees across the Hunter region.
Under the eight year contract, Veolia is operating and maintaining the plants which supply potable water and wastewater treatment services to over half a million people in six local government areas.
The area of operation covers 5,366km with a population close to 575,000 in the local government areas of Cessnock, Lake Macquarie, Maitland, Newcastle, Port Stephens, Dungog and small parts of Singleton.
- Reducing pressure on local water prices by $23 million over the next 8 years
- Single point of contact and accountability
- Up skilling workforce with operator and maintainer roles now combined resulting in less management, enhanced workforce moral, improved productivity and greater ownership and responsibility
- Risk transfer that equates to higher incentives to deliver positive outcomes longer term which result in cost reductions
- Maintenance program optimisation extending the life of plant assets
- Generating greater savings through effective biosolids management
- Sludge recovered for beneficial reuse including filler in fertilizer used by agriculture.
- $23 million saving over the next 8 years to help keep water prices low
- The contract services a population of 560,603
- Outsourced asset management of 25 treatment plants
Managing Director, Hunter Water Corporation:
"Veolia is one of the world's leading global water companies and has been operating in Australia for more than 20 years. Veolia operate over 30 water and wastewater plants across Australia, including some owned by Sydney Water.”
"This contract and its associated $23 million saving follows our decision earlier this year to sell Hunter Water's Head Office building with a 10 year lease back.”