Sustainable Rural Water Use and Infrastructure Program Restoring the Balance in the Basin

2. Australian Government investment in irrigation modernisation on- and off-farm Richard McLoughlin

3. Water for the Future • Sustainable Rural Water Use and Infrastructure Program • Restoring the Balance in the Basin • National Urban Water and Desalination Plan • Water Smart Australia • Driving Reform in the Basin (DEWHA and ACCC) • Improving Water Information (BOM) • National Water Security Plan for Cities and Towns • National Rainwater and Greywater Initiatives • Raising National Water Standards (NWC) • Living Murray Initiative • Great Artesian Basin • Northern Australia Futures

4. Sustainable Rural Water Use and Infrastructure Program (SRWUIP) • Established in 2008 • Total funding of $5.8 billion. • A national program which invests in rural water use, management and efficiency, including improved water knowledge and market reform • Over $5bn is committed in the Murray-Darling Basin • A share of water savings from SRWUIP projects go towards ‘bridging the gap’ to the sustainable diversion limits under the Murray-Darling Basin Plan

5. SRWUIP - Program Structure SRWUIP State priority projects (up to $3.2b) Other commitments Include: Commonwealth led projects State led projects On-Farm Irrigation Efficiency $450m Strengthening Basin Communities $200m Victoria $1,103m including NVIRP NSW Private Irrigation Infrastructure Operators Program $650m National Water Market System $56m South Australia $420m Compliance and Enforcement $60m Queensland $160m South Australia Private Irrigation Infrastructure Program $110m Irrigation in Tasmania $140m New South Wales $708m Strategic Sub-System Reconfiguration $200m Australian Capital Territory $85m

7. State Priority Projects $3.2 billion for State Priority Projects • agreed in the July 2008 Intergovernmental Agreement (IGA) on Murray Darling Basin Reform Objectives for State Priority Projects • Invest in infrastructure to improve the efficiency & productivity of rural water use and management; • Help secure a long-term sustainable future for irrigated agriculture and communities; • Deliver substantial and lasting returns of water to the environment; and • Deliver value for money projects.

8. What types of infrastructure projects are being funded? • Planning, investigations and project design • Works on irrigation systems off farm - modernisation and rationalisation • Works on farm to improve water use efficiency • Works to improve ecological health and restore natural flows • Water saving municipal projects – e.g. storm water harvesting

9. Planning and Investigations • Local government – preparing for a future with less or more variable water supply • Modernisation plans - prepared by irrigation districts/corporations • Hot spots assessments (identifying areas of water loss and leakage) • Water resource assessment (e.g. CSIRO sustainable yield studies) to underpin better water management

10. Upgrading irrigation systems off farm • fixing/replacing inefficient supply systems • lining channels, replacing channels with pipes • improving water delivery standards for timing and volume • metering to meet modern standards • reconfiguring and rationalising channel systems and farm off-takes • decommissioning channels and providing alternate stock and domestic supply

11. Off-Farm Project Examples NSW and SA Private Infrastructure Operator Programs • $650m in NSW and $110m for South Australia for integrated on- and off-farm upgrades. Northern Victoria Irrigation Renewal Project • $1 billion for delivery system modernisation and user connections in the Goulburn-Murray Irrigation District.

12. Private Irrigation Infrastructure Operators Program for NSW

13. On Farm Investment Works on farm to deliver and use water more efficiently and increasing productivity, e.g. • Improving on farm storage and tail water recirculation system • Installing pipes and risers • Installing drip irrigation systems and centre pivot irrigation as an alternative to the traditional flood irrigation Examples: • On-Farm Irrigation Efficiency Program in the Southern Basin • NVIRP “3” on-farm component • QLD Water Use Efficiency Program • NSW Irrigated Farm Modernisation program

14. Project assessment – due diligence • Technical • Engineering assessment • Validation of water savings projections • Fit-for-purpose, properly costed design • Socioeconomic • Net community benefit • Sustainable system renewal and upgrade • System upgrades affordable to run in future • Environmental • Water balance – recharge • Meets all environmental standards • Governance • Water savings transfer, project control, OH&S, etc

15. Other SRWUIP project examples Feasibility Studies for Environmental Works and Measures • $10 million to Basin States for environmental works and measures feasibility studies • Assessing projects which could improve the efficiency of environmental watering - e.g. to ‘offset’ SDL reductions under the Basin Plan Municipal Water in the Murray Darling Basin • ‘Strengthening Basin Communities’ Program • Planning projects • Water Saving Infrastructure Projects • $80 million in grants to 99 projects to date • Involves 70% of the local government authorities in the Murray Darling Basin

16. SRWUIP - Who is delivering the projects? • State government departments • e.g. water, primary industry, environment • Irrigation infrastructure operators • Irrigation industry associations • Industry commodity bodies • e.g. rice-growers, tomato growers • Individual irrigators • Catchment management (resource management) authorities • Local government • Water utilities • CSIRO (four sustainable yields studies)

17. MDB Water Recovery from SRWUIP projects • Water savings are mostly shared between • the Commonwealth (for environmental use) and • Irrigators/irrigation water providers • some are retained (municipal projects) for community benefit • Water savings provided to the Commonwealth will help ‘bridge the gap’ between the historical water use and the new sustainable diversion limits • Total expected Commonwealth water yield from SRWUIP is 600GL in average annual yield terms • Once water savings agreed in a works contract, they are recorded in the water recovery tables on SEWPaC website

18. Bridging the Gap Water purchase the ‘gap’ Infrastructure savings Historical water use Final Basin Plan SDLs enter into force in 2019 2008 2012 2019

19. Progress to date During 2011-12 the Government has announced infrastructure investments totalling around $2 billion.  This comprises commitments to both on and off farm irrigation infrastructure: • $1 billion for the Northern Victoria Irrigation Renewal Project Stage 2. • $469 million for contracts enabling the commencement of four NSW State Priority Projects. • $383 million for projects in four irrigation districts in New South Wales under Round 2 of the Private Irrigation Infrastructure Operators Program. • In-principle funding of $150 million under Round 2 of the On‑Farm Irrigation Efficiency Program for nine delivery partners • $11 million for Round 2 of the Private Irrigation Infrastructure Program for South Australia. • $9 million for Queensland ‘Healthy Headwaters’ on-farm projects.

20. Progress to date Several projects and programs funding through SRWUIP are complete or nearing completion, including: • Lower Lakes Integrated Pipeline Project and Early works for the Lower Lakes and Coorong Recovery Project (feasibility study and Goolwa Channel, South Australia); • Harvey Pipeline Project and Gascoyne Irrigation Pipeline (Western Australia); • Mathaguy Irrigation Scheme upgrade in the Macquarie Valley (NSW); • Tasmania – completed: Headquarters Road Dam, Sassafras Wesley Vale Irrigation Scheme, Whitemore Irrigation Scheme, Winnaleah Irrigation Scheme; underway: Lower South Esk, and Midlands • Vic Wimmera-Mallee Pipeline (which included $99 million of SRWUIP funding); and • On-Farm Irrigation Efficiency pilot projects in the MDB.

21. Benefits of Investment • Community support for programs is strong • Completed projects have demonstrated improved productivity benefits: • increased crop rotation ability • increased crop water use efficiencies • improved soil mangement • reduced maintenance and • reduced weed control requirements. • Some projects have achieved greater than anticipated water savings, the benefit of which is retained by irrigators. • Infrastructure investment creates jobs and underpins long-term economic sustainability of regional communities.

22. SRWUIP –current issues • Expectations on SRWUIP to deliver water savings to ‘bridge the gap’ • Timelines for infrastructure roll-out • managing expectations, while securing fit-for-purpose, properly costed, viable projects • Integration of infrastructure investment (SRWUIP) with water purchase • Water sales associated with delivery system/footprint reconfiguration for irrigation districts • Avoiding investment in assets which become stranded • Using and building local knowledge and capacity in rolling out infrastructure projects

23. SRWUIP - next steps • Achieving expected water savings – bridging the gap in the Murray Darling Basin • Delivering hundreds of infrastructure projects on time and on budget through a wide array of delivery partners • Building scope for project adaptation to reflect developments in technology and water availability • How to use remaining SRWUIP funds, e.g. • Focus in catchments with a ‘gap to bridge’ in the Basin Plan • Expectations of investment in environmental works and measures

24. Questions?