1. DEVELOPMENT OF AN IRRIGATION SCHEME FOR THE MANJIMUP REGION 17 MARCH2016 PAUL ELLERY SENIOR PROJECT MANAGER – TASMANIAN IRRIGATION

2. Brief history of project Long talked about scheme Super towns report – priority #1 – “Examine the viability of providing water infrastructure to facilitate water trading” Drying climate in SW Western Australia is well documented Current expansion of irrigated agriculture in the region Access to a reliable water supply identified as key to regional growth

3. AREA OF INTEREST

6. Key design principles There are limited sources of unallocated, high quality water in the region. High volume winter flows occur over a short time (60-80 days) Pumping large daily volumes to an off-stream holding dam All rivers are reducing in reliable flows. To ensure reliability, carry-over storage will be required. Holding dams in areas of high salinity is a potential project risk.

7. Scheme development Education Interest at a sub-regional level important Scheme designed to LoIs and forms the basis for the Business Case (request for funding) Once in a generation opportunity

8. Scheme development (2) Preferred Option in June 2016 Business Case developed by Oct 2016 Business Case adopted by funding bodies Commitment of private sector contribution Private sector contribution sufficient (water sales threshold)

9. Funding Private: the pre-purchase of water entitlements State: Royalties for Regions Federal: National Water Infrastructure Development Fund

10. Funding ratio – Tasmanian Business Cases  Federal Government ~ 50%  State Government ~ 25%  Private sector~ 25% For example: a $30m, 6,000ML scheme will be required to raise $7.5m from the private sector through the sale of irrigation rights. A price on irrigation rights would need to be set around $1,250/ML

11. Cost of water entitlement Figures are yet to be finalised - one-off payments in the order of: Summer water ~$1400/ML Winter water ~$1000/ML Your contribution to the construction of any potential scheme - receive an entitlement to a volume of water to be delivered on an annual basis.

12. What is a water entitlement? Irrigation right (volume) Zone flow delivery right (flow rate) Connection agreement (location of delivery) Increases value of water through tradability

13. Annual charges Based on full cost recovery for operations Fixed – administration/asset renewal – Applies to total volume owned Variable – power (pumping) cost – Applies only to volume used