21 September 2007
MELBOURNE WATER CONFIRMS IT WILL NOT ENTER THE WATER MARKET
Melbourne Water Acting Managing Director, Eamonn Kelly, today categorically ruled out Melbourne Water entering the market to buy water as a result of the Food Bowl Modernisation Project.
Mr Kelly said reports that Melbourne Water had expressed an intention to enter the market were incorrect.
“The Food Bowl Modernisation Project will make 75 gigalitres of extra water available for transfer to the Melbourne system via the Sugarloaf Pipeline,” he said.
“This 75 gigalitres will be Melbourne’s share of the 225 gigalitres that will be recovered by fixing leaks, inefficiencies and evaporation from our ageing irrigation system.
“Melbourne’s 75-gigalitre share will be in the form of a capped entitlement.
“Melbourne Water has absolutely no plans to enter either the temporary or permanent water market to acquire further water rights.”
Mr Kelly confirmed that total annual transfer to Melbourne would be limited to 75GL because:
- Water could only be pumped from the Goulburn River during the irrigation season.
- The Winneke treatment plant at Sugarloaf Reservoir could not handle any more than an additional 75 gigalitres of water entering the Melbourne drinking supply.
“This extra 75 billion litres will take the plant close to maximum operating capacity, so even if we wanted to extract any further water from the Goulburn system we would be constrained without undertaking major capital works at Winneke.”
Mr Kelly said work on the Sugarloaf Pipeline was expected to be completed in the first half of 2010.