Background
The Granite Belt Irrigation Project comprises the building of the Emu Swamp Dam and an associated irrigation system. This is an important project for the region, the significance of which has been highlighted by many years of drought.
Before construction of the dam and irrigation scheme can commence a number of preconditions needed to be met, including the securing a large portion of the required water allocation from the Queensland Government, at both an appropriate price with a suitable level of long-term certainty.
Our Role
NineSquared assisted the project proponent in assessing both the form of the water allocation and its price. The analysis examined the impact on project risks of different forms of the water allocation and different water allocation prices. This involved a desk-top risk assessment and analysis of benchmark water allocation prices. An important consideration in the risk assessment was the extent of proposed customer financial contributions to the construction costs.
Results & Relevance
The analysis assisted the proponent understand the impacts of alternate forms of water allocation and prices on the project’s risks, which informed the proponent’s negotiations with the Queensland Government’s water allocation regulator.
