SOUTHERN SEAWATER DESALINATION PLANT

Annual Report 2014/15

3 - Southern Seawater Desalination Plant Annual Report 2014/15

Annual Report 2014/15 Southern Seawater Desalination Plant - 4

The Southern Seawater Desalination Plant is owned by the Water Corporation and

operated and maintained by the Southern Seawater Alliance.

The Southern Seawater Alliance is made up of the Water Corporation and the Southern Seawater Joint Venture (SSJV).

The SSJV consists of Tecnicas Reunidas Australia (38%), Valoriza Water Australia, (38%), AJ Lucas (19%) and WorleyParsons (5%).

The Plant has an annual nameplate capacity of 100 GL (Giga litres) and is expected to have a life of 25+ years.

The Plant commenced operations on the 12th of March 2012, with an initial capacity of 50 GL

per annum. The commercial operations for the additional 50 GL (or Second Stage)

commenced on the 17th January 2014.

5 - Southern Seawater Desalination Plant Annual Report 2014/15

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Financial Year (FY) 2014/15 was SSDP’s third full year for Stage 1 and the first full year for Stage 2, which effectively meant the first full year for our 100 GL Plant. The Alliance achieved Final Completion of Stage 2 ahead of the contractual date and exceeded in every and each of our objectives in the areas of Health and Safety, People, Environment, Quality and O&M costs.

SSDP proactively managed Safety at the Plant with our motto being “No job is so urgent that it cannot be done safely”. SSDP proudly demonstrated that a solid culture of commitment to the principles of OSH has been established and cemented along these years of Commercial Operation, throughout management commitment, communication and consultation and also thanks to the ownership and commitment demonstrated by every single person working at SSDP. The combination of all these factors and the implementation of a culture of continuous improvement and avoidance of complacency has enabled SSDP to maintain a healthy and safe work environment with an excellent record of no LTI or MTI during the year and hence the SIFR at 0.

Thirty nine permanent employees worked at SSDP during the Year, completing 1,330 hours of training - 35 hours per employee and 120 more hours than last year. As at 30th June the employee initiated turnover rate stood at 7.00% with only one resignation during the year. SSDP is committed to making the Plant the place to work in the region.

The Alliance demonstrated a proactive approach towards continuous improvement to environmental management performance taking into account best practice and with an outstanding result of all the environmental commitments met and no complaints received.

The Drinking Water Delivery Target (DWPT) was achieved with a final 73.08 GL of desalinated water produced, in close co-operation with the Operations Centre (OC) and there were no occasions of reportable non-conformances. The new Service Level Agreement developed by OC and SSDP has enabled the alliance principle of an open, honest and fluent communication between both parties with the end result of a reliable supply of water into the IWSS and also a clear understanding on the energy management process during the Demand Side Management (DSM) period.

Our preventative maintenance was consistently above 70% and the finding of the root causes for the HV bushes and LP pump casings failures along with the completion of the backfilling of the outfall pipe contributed to reduce the SSDP risk profile considerably

ALLIANCE MANAGER’S ADDRESS

Alliance Manager’s Address

The O&M team continued with its ongoing internal audit programme during the year, as it strives to obtain accreditation for ISO 9001:2008, AS/NZ 4801:2001 and ISO 14001:2004 in the FY 15/16 and with he hope to harvest the fruits of the team effort during the last five years.

The Alliance shared over $4,500,000 between the parties and the nominal water cost per m3 was reduced from $0.78m3 in FY13/14 to $0.63/m3 last year.

As we enter FY 2015/16, we are focused on delivering safe and consistent steady production towards the IWSS, whilst undertaking the first replacement program of the RO membranes. We will keep maximising our preventative maintenance with the aim of reducing the corrective maintenance and hence downtimes. The replacement of the HV bushes and casings of LP pumps (Stage 2) in co-ordination with the replacement of the above mentioned RO membranes will be a big task for the maintenance team in FY 15/16.

The SSWA is committed to making the Local Community feel proud of “their Plant” and a reference for the region and with this in mind the Local Community Plan was put in place. As a result 10 official plant tours took place during the year, with local, national and international groups and organizations participating. Sponsorships for local events and work

experience at the Plant were other activities undertaken by SSDP.

With our Business Plan for FY 2015/16 and the preparation of the 5-year Business Plan we will be able to provide an excellent platform for the achievement of our vision during this year and beyond. The recently issued 5-year Asset Maintenance Plan is an excellent starting point and forms part of the basis for the development of a systematic and robust yearly budget for the safe and reliable operation and maintenance of SSDP.

I would like to take this opportunity to thank all members of the O&M Team who through their commitment and endeavor enabled the SSDP to complete a very successful FY 2014/15. The O&M Team will strive for the achievement of our Vision with the support of the ALT and the Water Corporation’s Contract Manager.

Alberto de Miguel Alliance Manager

Again this year the Southern Seawater Desalination Plant (SSDP) reliably produced and supplied the annual water delivery target into Perth’s Integrated Supply Scheme (IWSS), whilst moving towards our vision of providing a world class Desalination Plant with the additional step of establishing the Desalination Expert Panel. At the same time, the Defect Liability period was successfully managed which allowed the Alliance to achieve Final Completion for Stage 2.

With our Business Plan for FY 2015/16 and the preparation of the 5-year Business Plan we will be able to provide an excellent platform for the achievement of our vision during this year and beyond.

Southern Seawater Joint VentureLot 32 Taranto RoadBinningup WA 6233 PO Box 7197Eaton WA 6232 Phone: +61 (8) 9720 0745Fax: +61 (8) 9720 2736