Public Private Partnership (PPP) Projects in Victorian Water Sector

A Public Private Partnership (PPP) is a form of partnership that allows government agencies to build public infrastructure projects with private investment and avoid having to spend taxpayers money for their construction upfront. It is often used to invite private investment in large infrastructure projects and allows private companies to operate and maintain them for a fixed period. PPPs are used in a wide range of projects, including major roads, hospitals, prisons, etc. They have also been an equally important vehicle for construction of water infrastructure. In Victoria, several water sector infrastructure that has used the PPP model for their construction and they include:

Wodonga Wastewater Treatment Plant – awarded to PURAC Pty Ltd (later EGL Management Services Pty Ltd) to design, build, operate and maintain for 10 years in 2001 and a value of $32 million.¹

Victorian Desalination Project – awarded to AquaSure (consortium of Macquarie Group, Degremont SA, Suez Environmental and Thiess Pty Ltd) to design, build, operate and maintain for 30 years in 2009 and a value of $5.72 billion.¹

Campaspe Water Reclamation Scheme – awarded to Earth Tech Engineering Pty Ltd² (a subsidiary of the global company Tyco International Ltd.) in 2002 to design, build, and operate wastewater facilities for the townships of Rochester and Echuca for a period of 25 years and a value of $40 million.¹

Barwon Water Biosolids Management Project – awarded to Plenary Environment (a consortium of LV Rawlinson & Associates³, Earth Tech Engineering², Permanent Custodians Ltd) in 2007 to design, build, maintain and operate for 25 years and a value of $77.6 million.¹

Ballarat North Water Reclamation Project – awarded in 2006 to United Water International (now Veolia Water Services) to design, build, and operate for 15 years and a value of <$50m.¹

¹Sourced from Department of Treasury and Finance Victoria on 17/10/2024.
²Now Trility.
³Now Ferti-Tech.