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Kindred North Motton Irrigation Scheme Landholder water sale 2 February 2012.

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Presentation on theme: "Kindred North Motton Irrigation Scheme Landholder water sale 2 February 2012."— Presentation transcript:

1 Kindred North Motton Irrigation Scheme Landholder water sale 2 February 2012

2 TASMANIAN IRRIGATION Chris Oldfield – Chief Executive Officer

3 Agenda Chris Oldfield – Tasmanian Irrigation: overview & update Ian Smith – The mechanics of the Kindred North Motton Irrigation Scheme Duncan Loydell – The landholder water sale

4 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

5 Three years in… Water sales46,859 ML Private capital raised$46.2 M Farmers involved229 Schemes built & operating3 Schemes under construction2 Schemes being tendered for construction1 Economic NPV of first six schemes$ 91 M Economic NPV of all schemes$ 200 M +

6 Water – the smart investment

7 THE SCHEME Ian Smith – Project Manager

8 Project timeline February/March: water sales (deposit) April: release construction tender Second half 2012: commence construction First half 2013: commissioning (final payment)

9 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

10 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

11 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

12 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

13 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

14 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

15 TERMS OF THE SALE Duncan Loydell – Business Analyst

16 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

17 Application details Applicant details Guarantor details Qualifying land Qualifying zone Preliminary connection point Requested volume Either 10% or 25% deposit to secure purchase

18 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

19 Purchase Offer Irrigation Rights Purchase Contract Application Acceptance Commissioning Connection agreement Irrigation Right Full payment Deposit Zoned Flow Delivery Right

20 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

21 Trading Water entitlements can be freely traded 2011-12 trading fee is $33.00 inc GST

22 Annual charges 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$106.77/ML ex North Motton Pump Station$73.54/ML – $121.20/ML KNMIS annual charge estimates (2011-12 dollars)

23 Property Outlets One outlet per property outlets is included as part of the sale of water entitlements

24 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

25 Operations Tasmanian Irrigation will operate the scheme until at least the end of the defects liability period arising from construction work

26 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

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