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Agenda
• Chris Oldfield– Tasmanian Irrigation: overview & update
• Ian Smith– The mechanics of the Kindred North Motton Irrigation Scheme
• Duncan Loydell– The landholder water sale
Tasmanian Irrigation
• State-owned company responsible for development of 13 irrigation schemes across the state by 2015
• When built, these schemes will deliver more than 180,000 ML of water to farmers
• Funding to develop and build irrigation schemes comes from:– Commonwealth Government: $140 million– Tasmanian Government: $80 million– The balance from farmers & investors – why we are here tonight
• Also responsible for operating irrigation schemes
Three years in…
• Water sales 46,859 ML• Private capital raised $46.2 M• Farmers involved 229• Schemes built & operating 3• Schemes under construction 2• Schemes being tendered for construction 1• Economic NPV of first six schemes $ 91 M• Economic NPV of all schemes $ 200 M +
Project timeline
• February/March: water sales (deposit)
• April: release construction tender
• Second half 2012: commence construction
• First half 2013: commissioning (final payment)
The scheme
• 2,500 ML distribution pipeline capacity– 2,200 ML off-peak pumping
• 120-day summer delivery– 2,500 ML = 21 ML/day
• Future Capacity– Rising main has additional peak pumping capacity– Expansion beyond 2,500 ML would require duplication of distribution pipes,
additional pumps and outlets
Forth River Pump
• 3 x 500kW multi stage vertical turbine pumps
• 6.5 x 8.5m shed above 1 in 50yr flood level
• Rock gabion to guide water
• Utilising natural well and eddies in Forth River
• 2m x 2m intake 21m long
• 12m wet well
Forth River south of Paloona Bridge
Sprent Dam
• 7m earth filled dam wall
• 259 ML capacity
• 2 pumps to the main scheme
• 1 pump to Sprent
• Bypass in case of repair
Pressure
• 5 m head guaranteed
• Normal operating pressures in the pipeline will be higher
• Potential to utilise the pressure, but not guaranteed above 5 m head
• Pressures vary depending on:– Relative height of outlet– Where and how much water is being taken elsewhere
Pressure
• A map of pressures has been prepared to assist you consider the opportunity of utilising pressure in the pipelines.
• The map provides details of:
– Maximum pressure
– Normal operating pressure
at 1 km intervals along the pipeline alignment
• Additional information on pressures can be provided on request
Construction
• Commence as soon as practicable after conditions of funding approval are met
• Pipe laying will require access to a average path width of 20m
• Will require pipe laydown area every 500 m
• Scour valves will be located at low points
• Air valves at will be located at high points
The offer
• Open to occupiers of land in the proposed irrigation district
• Price: $1,200.00/ML
• 95% reliability
• Minimum purchase 10 ML, increments of 5 ML
• Water sold during this sale will receive the benefit of off-peak pumping
• Sale opens today
• Sale closes 12:00 noon, Thursday, 15 March 2012
Application details
• Applicant details
• Guarantor details
• Qualifying land
• Qualifying zone
• Preliminary connection point
• Requested volume
• Either 10% or 25% deposit to secure purchase
Allocation
• Minimum water sales threshold: 1,500 ML
• TI will consider whether water can be supplied to each preliminary connection point
• If supply can not be made to a preliminary connection point, you will have an opportunity to amend it
• If an application can not be accepted, TI will refund the deposit in full
Purchase
OfferOffer
Irrigation Rights Purchase ContractIrrigation Rights
Purchase Contract
ApplicationApplication
AcceptanceAcceptance
CommissioningCommissioning
Connection agreementConnection agreement
Irrigation RightIrrigation RightFull payment
Full payment
DepositDeposit
Zoned Flow Delivery Right
Zoned Flow Delivery Right
Water Entitlements
• Irrigation Right
– Right to a volume (ML) of water during each irrigation season
– 95% reliability
• Zoned Flow Delivery Right
– Right to a share (ML/day) of the delivery capacity of the scheme during each irrigation season
– Specific to a zone
Annual charges
Fixed charge (payable on water entitlement holdings)
uniform across the irrigation district $53.00/ML – $85.00/ML
Variable charge (payable on water supplied)
ex Forth Pump Station $73.54/ML
ex Main Line Pump Station $86.59/ML
ex Sprent Line Pump Station $106.77/ML
ex North Motton Pump Station $73.54/ML – $121.20/ML
KNMIS annual charge estimates (2011-12 dollars)
Property Outlets
• One outlet per property outlets is included as part of the sale of water entitlements
Outlet Size Purchase price Typical max flow Typical max flow Typical max flow
(mm) ($) (L/sec) (ML/day) (ML/season)
40 7,000 3 0.26 30
50 11,000 7 0.60 70
80 13,500 16 1.38 165
100 15,000 24 2.07 250
150 17,000 52 4.49 540
200 21,000 85 7.34 880
Farm Water Access Plans (WAP)
• All water supplied by the KNMIS must be used:
– On land covered by a Farm WAP
– In compliance with a Farm WAP
Operations
• Tasmanian Irrigation will operate the scheme until at least the end of the defects liability period arising from construction work
Availability during water sales
• Tasmanian Irrigation will be available at the Kindred Hall between:
– 9.30 am – 4.30 pm, Wednesday, 15 February 2012
– 9.30 am – 4.30 pm, Wednesday, 29 February 2012
– 9.30 am – 4.30 pm, Wednesday, 7 March 2012
– 9.30 am – 4.30 pm, Wednesday, 14 March 2012
– 9.30am – 12.00 noon, Thursday, 15 March 2012