Three council consortium to test the market for selected water assets
Published on 08 September 2020
Onkaparinga part of a three council consortium to test the market for selected water assets in South Australia.
The cities of Onkaparinga, Adelaide Hills and Murray Bridge will soon commence a joint market sounding and registration of interest (ROI) process to consider the potential future ownership and management of selected water assets.
The City of Onkaparinga’s assets that form part of the consortium’s offering are the community wastewater management system (CWMS) and the alternative water supply business (AWSB).
Following an initial expression of interest process conducted by the consortium in 2018, the ROI process, independently managed by Adelaide Equity Partners, will now determine if there is suitable commercial interest.
A consortium spokesperson said no commitment has been made to sell the assets.
“This market exploration is only an early step in a multi-stage process.”
“The elected members of each council will decide whether they should continue providing these services or whether an alternative model is preferable.”
“There are a wide range of possible outcomes from this process that may be beneficial to the councils, water service customers and all ratepayers. If there is suitable commercial interest, a decision will be made whether to seek detailed tenders.”
Feedback from the community will also inform the elected members’ decision making process and further community engagement will be conducted if the elected members decide to proceed towards possible divestment of the assets.
“All three member councils currently operate these assets to a high standard and the ROI process will simply determine whether the assets can be further optimised through either sale or a different management model,” the spokesperson said.
Frequently asked questions
What is the CWMS?
The CWMS is an essential wastewater disposal service provided to around 4500 households and businesses in Willunga, McLaren Vale, McLaren Flat, Clarendon, Maslin Beach, Morphett Vale and Sellicks Beach.
What is the AWSB?
The alternative water supply business was funded by state and federal government as part of the Waterproofing the South project (WPS). These assets harvest recycled water and stormwater which is then pumped to irrigate parks, sporting clubs, schools and the like, delivering a sustainable alternative to mains water supply. The AWSB distribution pipework is located across our city in Reynella East, Morphett Vale, O’Sullivan Beach, Seaford, Aldinga and Willunga.
On what will the elected members base their decision?
The process and the information being sought from the tender process will help the elected members make their decision, based around the following indicators:
- The payment of a fair market price for the water assets that reflects their value to the general community (and which would generate revenue that council could invest in community projects or reduce debt with).
- Willingness to accept and manage the risks of owning and operating the assets.
- Providing an acceptable customer outcome including competitive pricing and a high level of customer service.
- Potential to invest in both schemes.
Elected members will consider the details of council’s ongoing ownership of these assets and will compare this against the external offers presented.
Has council done any community engagement?
Yes. Initial community engagement undertaken in 2018 showed a high degree of community support for council to continue to own and manage these assets. By proceeding with this process, we’ll gather information required to demonstrate to the community what a viable alternative might look like.
Will council do further community engagement?
Further community engagement will be undertaken if the elected members decide to proceed towards a possible divestment of the water assets. Feedback received will also be considered as part of the decision making process.