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Vict Govt opts for PPP model to design, build and operate new desal plant by 2011

Posted by gmarkets on 27 September, 2007

The Victorian Government opted for a public private partnership (PPP) model to design, build and operate the new desalination plant by 2011, reported The Australian (22/9/2007, p.41).

Consortiums line up: At least five consortiums were lining up as potential bidders. Most of the invest­ment banks have been in contact with the various private operators, trying to get a role in financing the project. Leighton Holdings subsidiaries John Holland, Thiess and Leighton Contrac­tors headed three of the consortiums. John Holland chief executive David Stewart has confirmed the company would bid for the project with Veolia Water. Thiess was expected to bid with the French-based water treatment company Degremont. Leighton was expected to bid with General Electric. The fourth con­sortium included United Utilities Austra­lia, a subsidiary of Britain’s largest water company, Abigroup and McConnell Dowell Corporation. The fifth was ex­pected to a consortium headed by Infilco Degremont Inc, which was a member of the Degremont Group.

‘Climate-proof solution’: To date, John Holland has been the most successful in this space, winning a $1.2 billion desalination project at Tu­gun, in the Gold Coast, to build, operate and maintain a desalination project for the Gold Coast City Council and Queensland State Government. More recently it was part of the Bluewater consortium, which included Veolia Water, for the design, building and operation of the $960 million Sydney Desalination Plant. Infrastructure Partnerships Australia executive director Gary Bowditch said a desalination plant was the only climate-proof solution to secure Melbourne’s water supply.

The Australian, 22/9/2007, p. 41

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