Greenfield Irrigation Development Public Private Partnerships

Irrigation Australia 2014 Chris Thompson Managing Director , Macquarie Franklin

Background

• • • • In Tasmania – we have approx 12% Australia surface water runoff – generally not where the usage is !! – predominance of stream diversion as method of irrigation supply Sustainable greenfield development in Tasmania is $2000 per ML upwards Irrigated agriculture is expanding rapidly Existing supplies under stress

• Political Intervention to augment supplies and support water infrastructure • Public – Private partnership as the way forward

Thank you

Chris Thompson

Macquarie Franklin [email protected]

• Why PPP • • When done properly Best (I believe !) process to implement Best method of valuing, managing and apportioning risk – apply the risk to those who can appreciate/manage/afford it !!

• Risk issues – Approval Risks (EPBCA 1999 and the contingent outcomes in state acts) – Stakeholder Risks – ie “buy in” from irrigators and communities, government instrumentalities and “third parties” – Financing risks – “impatient capital”, returns to investors, Project lifespans – Engineering risks – technical and budgeting risks – aggressive or conservative ?

– Environmental Risks – real or perceived – often mismanaged and poorly understood – Agricultural risks – understanding future markets and needs – Climate risk !!!!! – impact on both water availability and growing conditions

• • • • The outcome 5 projected completed 3 others underway Around $350 M spent approx 60/40 Govt private All on time and under budget

Thank you

Chris Thompson

Macquarie Franklin [email protected]