Private sector recycling licence will create jobs and save drinking water

7 May 2009

The NSW Government has granted approval to a new player in Sydney�s recycled water market that will attract $100 million of private sector investment and create 64 construction jobs while saving billions of litres of water each year.

Premier Nathan Rees today announced that Veolia Water has been issued with the first licence under the Water Industry Competition Act 2006.

The licence permits Veolia Water to construct, maintain and operate a new recycled water plant at Fairfield as part of the Rosehill Recycling Scheme that will initially provide 4.3 billion litres of recycled water a year to industrial and irrigation customers in Western Sydney.

A second licence has also been issued to Aquanet Sydney, a division of Jemena, to allow the high-quality recycled water to be transported to users through a network of retrofitted gas pipes.

Mr Rees said the first stage of the recycling network would service seven large industrial customers in Rosehill and Smithfield, saving drinking water and creating construction jobs. Marubeni Australia Power Services, the Sydney Turf Club which owns Rosehill Racecourse and the Shell refinery at Clyde are among the customers.

The NSW Government established Australia�s first State-based access regime under the Water Industry Competition Act 2006 to encourage the participation of the private sector in the water industry, which will help to bring new investment in recycling. Water recycling is a major element in the NSW Government�s plan to manage Sydney�s water supply.

Mr Rees said the new Veolia recycling plant is scheduled to be operational by 2011, paving the way for increased distribution via the retrofitted gas pipes. The first stage of the project will service Rosehill and Smithfield, with potential for future expansion into other Western Sydney suburbs.

Water Minister Phil Costa said the Government would impose stringent regulations on all private water and sewerage operators to protect consumers, water quality and the environment.

Mr Costa said that any new proposals will need to meet Australian standards and recycled water will need to be treated to a level that makes it fit for purpose, for example, for use in industrial processes or for irrigation.

Construction of the recycling plant is expected to commence later this year, following planning approvals.

A list of Questions and Answers has been prepared regarding licences awarded under the Water Industry Competition Act 2006.

For further information, visit the Creating a Dynamic Water Industry page.