ACTEW welcomes ICRC report into the Enlarged Cotter Dam

ACTEW today welcomed the release of a draft report by the Independent Competition and Regulatory Commission (ICRC) into the prudency, cost, methodology and efficiency of the Enlarged Cotter Dam.

The ICRC has given its preliminary endorsement to the final project cost and to the alliance arrangements put in place to deliver the new water infrastructure. The Commission also endorsed the approach ACTEW took to use net economic benefit methodology to consider and compare the various water security options available.

ACTEW Managing Director Mark Sullivan said the draft document is a positive ‘report card’ for ACTEW and encouraged anyone who is interested in the region’s future water supply to read the draft report and comment during the ICRC’s consultation period.

“The investigation confirmed that the Enlarged Cotter Dam is a good water security measure based on robust design, construction and costing processes.

“The Commission looked at ACTEW’s pioneering
efforts to test the viability of the project based on net economic benefit and confirmed the project will reduce the frequency and severity of water restrictions in future years.

“We are very pleased the Commission found the decision to enlarge the Cotter Dam was carried out well by ACTEW including the delivery and engineering solutions selected, the development of costs, risk transfer and robustness of the estimate.

“We look forward to receiving the final report following the public consultation period,” he said.

The Enlarged Cotter Dam is the cornerstone of ACTEW’s water security strategy and one of three projects which are being progressed to secure the region’s future water supply. The $363 million Enlarged Cotter Dam project will increase the capacity of the Cotter reservoir from 4 gigalitres (GL) to around 78 GL, almost 20 times its current size. Construction is currently underway and due for completion at the end of 2011.

Mr Sullivan said it was essential communities have confidence in investments as significant as the Enlarged Cotter Dam. He said: “We want the community to be as confident as we are that this is the right project at the right time – and at a cost that guarantees both value and quality”.

“That’s why we welcomed the ICRC investigation and welcome this report – and it’s why we commissioned a number of independent reports like it along the way to confirm that we were providing the best possible water infrastructure solution and value to the community”.

Mr Sullivan thanked the Commission for lending its expertise to suggest areas where ACTEW could improve its economic modelling in the future. He said ACTEW always welcomed expert views and input and was looking forward to working with the Commission and other third parties to further refine its approach in order to continue making sound infrastructure investment decisions.

The draft ICRC report is available at www.icrc.act.gov.au. For information on the Enlarged Cotter Dam and ACTEW’s water security program visit www.actew.com.au.

STATEMENT ENDS