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Irrigation Australia Conference 2014

MID2030 Modernisation Project’s

OUTLET RATIONALISATION PROGRAM

Ashley Oldham

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Introduction

• Southern Rural Water – Macalister Irrigation District

• Outlet Rationalisation Program Summary

• Why a Rationalisation Program - Benefits

• How the program works

• Case Studies

• On-farm changes post rationalisation

• Program Outcomes

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Southern Rural Water – Macalister Irrigation District

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Southern Rural Water – Macalister Irrigation District

• Service approximately 10,000 customers – 1,100 in MID

• Secure water supplies

• Good rainfall (600mm/yr)

• Productive soils

• Strong dairy and beef industry

• Developing vegetable and cropping industries

• Economic contribution of $500+ million per annum to Victoria’s economy

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Summary of Rationalisation Program

Program funded by customers that provides them the opportunity to modernise their outlets

• Customers eliminate low use outlets• Elimination of other water delivery assets• Calculate savings through Whole of Life cost analysis

• Positive Whole of Life cost– New modernised outlet(s) constructed at no cost to customer– Connection works conducted with excess savings

• Negative Whole of Life cost– Customer funds difference of outlet works– no connection works

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Why a Rationalisation Program

• In response to customer demand

• To reduce liabilities by reducing assets

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How the program works - process

• Customers submit application form

• The application is discussed with customer

• Whole of Life cost calculation

• Upon agreement Security Deposit paid

• Farm Consultant assesses rationalisation and produces report

• Approval is sought through a review panel

• Once approved - works are scheduled

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How the program works – Whole of Life Cost calculation

Total Savings $100,000

Outlet Construction -$40,000

On-farm Connection Works -$25,000

SRW Asset Works -$15,000

NET SAVINGS $20,000

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How the program works - program features

• Customer participation is voluntary

• Assessment equity

• Program and assessment rules are clear

• Assessment includes independent farm irrigation advice:• Support good practice irrigation• Identifies on-farm works required and links to long term farm plans

• Funded asset abandonments, rationalisations and reconfigurations are compatible with proposed system upgrades

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What are the benefits of a Rationalisation Program?

SRW Benefits• Reduces future modernisation and maintenance costs• Improved measurement accuracy• Increases delivery efficiencies• Encourages on-farm investment• Facilitates regional economic growth

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What are the benefits of a Rationalisation Program?

Customer Benefits• Access to modernised meters now - a meter replacement program years away• Increase production - higher and more consistent flow rates • Improved lifestyle – flexibility of automated start and finish times

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Difference from Murray Darling Basin modernisation/rationalisation schemes

• Not in Murray Darling Basin – government funding not a priority

• Customers have had to largely fund program

• Not trying to reduce the size of the district

• Eliminate spur channels

• Not necessarily to the backbone

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Case Study 1 – Before Map

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Case Study 1 – After Map

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Case Study 2 – Before Map

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Case Study 2 – After Map

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On-farm changes post rationalisation

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On-farm changes post rationalisation

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Program outcomes

• Customer Consultation• Face to face communication works best

• High Rationalisation Rate• 14 Modernise - 18 Eliminated• 2013 rationalisation rate of 56%• 2014 rationalisation rate of 75%

• Farm Consultant• Customers felt put at ease

• Further Customer Investment• ~80% invested further on-farm• Personally & funding application

• Positive Customer Survey Responses• All would recommend the program to other customers

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END