Company Announcement - Funding Deed for feasibility study finalised

As communicated with shareholders in June 2024, Murray Irrigation (MIL) and our fellow southern irrigation infrastructure operators (IIOs), Coleambally Irrigation Cooperative Limited (CICL) and Murrumbidgee Irrigation Limited (MI), applied for funding under the Australian Government’s Resilient Rivers Water Infrastructure Program for a feasibility study to explore what is required to bolster the efficiency and resilience of our irrigation networks in an era of water recovery.
 
The aim of this study is to find a pathway forward that will minimise the resultant harm of water buybacks on farmers and communities.
 
We are pleased to share that the Funding Deed for the Building Resilient Infrastructure Feasibility Project has been signed and executed by the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) and MIL on behalf of the southern IIOs.
 
The value of the Funding Deed is $6 million, which will be divided between the three IIOs under a project called Business Resilient Southern Irrigation Districts (BRSID).
 
The $494 million Resilient Rivers Water Infrastructure Program is funded by the Australian Government and is being delivered in partnership with the NSW Government. The program aims to improve and modernise water delivery networks to generate further water savings that could potentially contribute to the Commonwealth’s 450GL of additional environmental water recovery target under the Murray-Darling Basin Plan, and reduce the need for voluntary water purchases.
 
MIL CEO Ron McCalman has welcomed the signing and execution of the Funding Deed and says he is looking forward to working with MI, CICL and external Engineering, Architecture and Construction consultancy, GHD, to bring the elements of BRSID together.
 
“The combined teams have already produced an enormous amount of work to get us to where we are today, and I look forward to building on this and exploring solutions that assist with the long-term resilience and business viability of our respective irrigation areas," Mr McCalman said.

“The purpose of this project is to provide a study that identifies potential opportunities for further water savings, and financial and operational improvements across each district.
 
“I would like to reassure shareholders, customers and the community, that undertaking this feasibility study does not involve the transfer of water.
 
“The MIL portion of this will primarily focus on reviewing the previously modernised $320m network asset upgrade program, which the company undertook as part of the Federal Government's Private Irrigation Infrastructure Operators Program (PIIOP) between 2012 to 2019.
 
“Since the completion of PIIOP in 2019, Murray Irrigation has significantly increased its water delivery efficiency to assist with business resilience. 
 
“By exploring a number of water savings initiatives in this project, Murray Irrigation will gain an understanding if further water savings are possible within the footprint.”
 
The network asset upgrade program undertaken during PIIOP provided MIL with a forecasting platform to consider and react to the effects of reduced future water availability and its many implications, including asset underutilisation, maintenance costs and the implementation of new technologies.

The reinvigoration of this existing platform will enable MIL to consider asset utilisation data which will help inform future investment and growth opportunities.

“Timelines on this project are very tight,” Mr McCalman said.

“We’re grateful that we took the opportunity in September last year to discuss a number of topics and ideas with shareholders.

“As part of the BRSID project, we will be undertaking a shareholder/customer survey. Details of this survey will be shared in the coming weeks.

“We also look forward to hosting another round of shareholder meetings in July to share and discuss what we have learned while undertaking the BRSID process.”

For further information on this project, please contact Customer Support on 1300 138 265 or customersupport@murrayirrigation.com.au