Transcript Kindred North Motton Preferred Option

Kindred North Motton Irrigation
Scheme
Landholder water sale
2 February 2012
Chris Oldfield – Chief Executive Officer
TASMANIAN IRRIGATION
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…
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Water sales
Private capital raised
Farmers involved
Schemes built & operating
Schemes under construction
Schemes being tendered for construction
Economic NPV of first six schemes
Economic NPV of all schemes
46,859 ML
$46.2 M
229
3
2
1
$ 91 M
$ 200 M +
Water – the smart investment
Ian Smith – Project Manager
THE SCHEME
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
Duncan Loydell – Business Analyst
TERMS OF THE SALE
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
Application
Deposit
Acceptance
Commissioning
Offer
Irrigation Rights
Purchase Contract
Full
payment
Zoned Flow
Delivery Right
Irrigation Right
Connection
agreement
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
Trading
• Water entitlements can be freely traded
• 2011-12 trading fee is $33.00 inc GST
Annual charges
KNMIS annual charge estimates (2011-12 dollars)
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
ex North Motton Pump Station
$106.77/ML
$73.54/ML – $121.20/ML
Property Outlets
• One outlet per property outlets is included as part of the sale of
water entitlements
Outlet Size
Purchase price
Typical max flow
Typical max flow
Typical max flow
(mm)
($)
(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