“Whether in the city or in the bush, communities are understandably anxious about water, concerned about getting through our present difficulties, and worried about what the future might hold. In the face of this protracted drought and the prospect of long-term climate change we need a radical and permanent change in our water management practices.” The Hon. John Howard, Prime Minister, 25 January 2007

8.30 Morning Coffee

8.50 Opening remarks from the chair

Future Outlook For Water And The Role Of Infrastructure In Securing Supply

“Water is a unique commodity. There is no other substance that has the contradictory properties of being essential for life, scarce and fragile but at the same time taken for granted. When reliable water supply cannot be taken for granted it becomes a critical and often emotional issue. Governments wishing to gain community understanding and acceptance of the need for a wider portfolio of water supply options, and the associated investment in additional infrastructure, must bring the community with them.” From Water for Our Cities: building resilience in a climate of uncertainty, PMSEIC Working Group, June 2007

9.00 INTERNATIONAL VIEWPOINT: Coping with drought and climate change: evaluating adaptation strategies in the U.S.

Prof Bonnie Colby, Dept. Agricultural & Resource Economics, University of Arizona

9.30 CASE STUDY : VEOLIA WATER

Rod Naylor, Executive Director, Veolia Water Australia

10.00 Insight into the future for water

Prof Mike Young, Research Chair in Water Economics and Management, The University of Adelaide

10.30 Meeting customers’ needs over water industry challenges

• How a new water paradigm creates the need for new strategic approaches

• Developing new relationships with customers

• Harnessing innovations and partnerships to provide solutions

Kate Vinot, Acting Chief Executive Officer, South East Water

11.00 Morning Coffee

11.20 CASE STUDY: Barwon Water

• An overview of key water issues Barwon Water

• Unique projects including the Black Rock Biosolids PPP and the Northern Water Plant

• Pricing and organisational resourcing to cope with the boom in infrastructure

Michael Malouf, Managing Director, Barwon Water

11.50 Water security through diversity - the ACT’s situation
The ACT region has experienced severe drought conditions over the last six years which prompted ACTEW to conduct a review and reconsider the ACT’s water supply options, as well as explore new alternatives to ensure future water security.

ACTEW has recommended the following water supply options:
1. To build an enlarged Cotter Dam of 78 GL (approx $145M);
2. To add to the current capacity to extract water from the Murrumbidgee River by constructing pumping capacity near Angle Crossing for transfer to the
Googong Reservoir (approx $70M).
3. To obtain additional water from a source not largely dependent on rainfall within ACT catchments through either:
A) the Tantangara Transfer option (approx $38M); or
B) the Water Purifi cation Scheme (approx $181- 274M).
4. To assess how any additional energy used may be offset through measures such as carbon offsets or renewable energy capacity.

Michael Costello, Managing Director, ACTEW Corporation

12.20 Optimal time to invest in water supply infrastructure
This presentation includes the intuition and key results of an innovative method that allows water authorities to determine the optimal time to invest in water supply infrastructure. An illustration of the approach is provided in terms of Sydney and the optimal time to build a desalination plant.

Dr Michael Ward, Crawford School of Economics and Government, The Australian National University

“If water is “blue oil”, then the industry may be at the start of a wildcatters’ rush,” Peter Hannam, The Age, 22 October 2007

12.50 Lunch for speakers and delegates

Water Pricing, Trade And Regulation

“The technical solution to overall location is to buy water entitlements back from irrigators willing and able to sell them...Urban water users also can be part of this new, sustainable future. Vibrant water markets, strictly enforced water allocation systems and strict water accounting systems are all part of the solution,” Prof. Mike Young, Australian Financial Review, 30 January 2007

2.00 CASE STUDY: An update on issues in regulation from the perspective of IPART, with emphasis on recent price determinations for NSW

James Cox, CEO, IPART

2.30 CASE STUDY: Waterfind

• Updating key developments in Australia’s water trading environment

• Discussing Waterfind’s role in water trade – How does it all work?

• Looking to the future – what’s in store for water trading going forward?

Tom Rooney, CEO, Waterfind

3.00 Future issues and challenges for the Murray Darling Basin Commission

• Climate change and other risks to shared water resources

• Entering 08/09 with very low storage levels

• Finding the right balance between environmental and consumptive water use - even in drought

Dr. Wendy Craik, CEO, Murray Darling Basin Commission

3.30 Afternoon tea

3.50 Models for competition in urban water markets

• Why do we need competition?

• Competition for what?

• What is needed for competition to work?

• How are the models of competition in this market different from other utilities?

Dr. Martin van Bueren, Senior Manager, Allen Consulting

4.20 Cost of infrastructure
Addressing the issues surrounding private sector delivery of water infrastructure to greenfield development areas, including:

• Finance

• Risk allocation

• Public / private relationships

• Probity

  Nick Di Girolamo, Chief Executive Officer, Australian Water Pty. Ltd

4.50 Closing remarks from the chair and close of conference

5.00 Close of Conference

“Increasing the price of water will help to ensure that people value this precious resource and reduce any unnecessary water wastage. It will also ensure that we maintain our high level of customer service and continue to invest in water and sewerage infrastructure.” Dennis Cavagna, Former Managing Director, South East Water, June 20, 2006