Sun 22 Mar 2015

Taswater Industry Update:

With at least $330 million in their infrastructure investment bucket over the next 3 years, Taswater is keen to ‘buy local’ and invest in the future of local businesses.

He commended the employees of Taswater as without them they would not be where they are now, which is true for all businesses.

  • This financial year, there has been a $78 million dollar invested into water and sewage across Tasmania and on track to an approx. total investment of upwards of $90 million, with 79% of contracts awarded locally.
  • They returned $27 million to their owners by way of a dividend in the 2014 year end.
  • Fully treated water now flows to an additional 10 towns with another 26 to complete.
  • 13 new plans are ready to go for upgrading of services
  • There has been 50 business cases put forward for future investment, based at $110 million annually for the next three years.
  • 1800 development applications have been worked through
  • 3800 building and plumbing applications have been worked through
  • The headworks holiday is still in place

Interesting asset information was discussed, Taswater own and operate;

  • 71 reservoirs for drinking water supply
  • 6000 kms water mains
  • 11000 km sewage mains
  • 840 pump stations
  • 842 employees
  • 113 treatment plants
  • 240000 customers that they know about, there is likely to be more

Other items discussed at a separate meeting organised with Taswater was Bank guarantees/retentions versus Bonds.

With the increasing infrastructure investment in Tasmania on the way up, including all agencies and private investors, we will be nearing the estimated $2 billion per annum mark again.

This means that contractors will have to source bank guarantees to cover off on retention requirements.

This in turn ties up any available cash and asset’s that a business may have, lessening the opportunities to consider other works.

Throughout advocating directly with Taswater they have now suggested that they will consider Bonds moving forward, based upon risk assessment of the project risks and the capabilities of the contractor.

A recent Industry Briefing, the CEO Mike Brewster has described where Taswater is currently and where they would like to be into the future.

He commended the employees of Taswater as without them they would not be where they are now, which is true for all businesses.

  • This financial year, there has been a $78 million dollar invested into water and sewage across Tasmania and on track to an approx. total investment of upwards of $90 million, with 79% of contracts awarded locally.
  • They returned $27 million to their owners by way of a dividend in the 2014 year end.
  • Fully treated water now flows to an additional 10 towns with another 26 to complete.
  • 13 new plans are ready to go for upgrading of services
  • There has been 50 business cases put forward for future investment, based at $110 million annually for the next three years.
  • 1800 development applications have been worked through
  • 3800 building and plumbing applications have been worked through
  • The headworks holiday is still in place

Interesting asset information was discussed, Taswater own and operate;

  • 71 reservoirs for drinking water supply
  • 6000 kms water mains
  • 11000 km sewage mains
  • 840 pump stations
  • 842 employees
  • 113 treatment plants
  • 240000 customers that they know about, there is likely to be more

Other items discussed at a separate meeting organised with Taswater was Bank guarantees/retentions versus Bonds.

With the increasing infrastructure investment in Tasmania on the way up, including all agencies and private investors, we will be nearing the estimated $2 billion per annum mark again.

This means that contractors will have to source bank guarantees to cover off on retention requirements.

This in turn ties up any available cash and asset’s that a business may have, lessening the opportunities to consider other works.

Throughout advocating directly with Taswater they have now suggested that they will consider Bonds moving forward, based upon risk assessment of the project risks and the capabilities of the contractor.

As I suggested earlier in this piece, Taswater want to ‘buy local’ where ever possible and this move allows our members more flexibility and potential cash flow options.

If you would like to speak to someone about bonds, contact the branch for details of a provider.