State Priority Projects

Intergovernmental Agreements

On 3 July 2008 the Australian and state governments finalised the Intergovernmental Agreement on Murray-Darling Basin Reform (MDB IGA) to secure a sustainable future for the Murray-Darling Basin:

Commonwealth-State Water Management Partnership Agreements have been executed with each of the Murray-Darling Basin States and the Commonwealth. These Agreements reflect the commitments made in the MDB IGA.

The COAG Reform Council is responsible for assessment of the performance of the parties to the Agreements.

The body of the Agreements detail the terms and conditions, including setting out the process for:

approving and paying for projects that were agreed in principle in the MDB IGA for each Murray-Darling Basin State, once due diligence has been successfully completed
delivering against agreed reforms on identified dates and adding new water reforms
transferring the agreed water entitlements, specifying characteristics (e.g. being unencumbered and having characteristics of water access entitlements as set out in the National Water Initiative etc).

The schedules to the Agreements provide more specific information:

Schedule 1 – outlines agreed water reform actions to be undertaken by that State
Schedule 2 – contains a project schedule template which is the basis for developing separate project schedules for each State Priority Project for that State. Once project schedules are agreed between the State and Commonwealth, they will be incorporated into the Agreement
Schedule 3 – outlines the assessment process to be undertaken by the COAG Reform Council, and
Schedules 4 and 5 – outline reporting requirements and publicity protocols

For more information see the Water Management Partnership Agreements between The Commonwealth of Australia and:

Commonwealth led State Priority Projects

Private Irrigation Infrastructure Operators Program in New South Wales

The $650 million Private Irrigation Infrastructure Operators Program (PIIOP) in New South Wales aims to acquire water entitlements resulting from water savings generated from eligible projects by private irrigation infrastructure operators that improve the efficiency and productivity of water use and management, both off and on-farm, helping to secure a sustainable future for irrigation communities.

For more information see: Private Irrigation Infrastructure Operators (PIIO) Program in New South Wales

Private Irrigation Infrastructure Program for South Australia

The Australian Government is providing up to $110 million for the Private Irrigation Infrastructure Program for South Australia to assist in securing a sustainable future for South Australian irrigation communities.

The Program will fund projects that improve the efficiency and environmental benefits of irrigation water use and management in the South Australian Murray-Darling Basin. In exchange for funding for infrastructure works, successful applicants will transfer water entitlements to the Commonwealth Environmental Water Holder to use for environmental water purposes.

For more information see: Private Irrigation Infrastructure Program for South Australia

State led State Priority Projects

South Australia Integrated Pipelines

Around $120 million has been provided by the Australian Government for the construction of a series of potable and irrigation pipelines in areas adjacent to the South Australian Lower Lakes. The pipelines supply potable and irrigation water to communities which were previously reliant upon the Lower Lakes for their water supplies. The project is complete and the pipelines are operational.

South Australia Riverine Recovery Project

The Riverine Recovery Project aims to implement an improved riverine management regime for the River Murray from the South Australian/Victorian border to Wellington in South Australia and deliver water savings for transfer to the Commonwealth for environmental purposes. The activities undertaken as part of this project reflect a landscape-scale approach to addressing the problems of the River Murray and are expected to provide for a more effective, efficient and flexible management of environmental water.

Coorong, Lower Lakes and Murray Mouth Projects

The objective of the Coorong, Lower Lakes and Murray Mouth (CLLMM) Recovery Project is to assist the South Australian Government in managing the site for ecological health and to support the implementation and objectives of the CLLMM Long-Term Plan. The objectives of the Long-Term Plan are to provide a clear direction for the future management of the CLLMM region as a healthy, productive and resilient Wetland of International Importance.

Northern Victoria Irrigation Renewal Project Stage 2

The Australian Government commitment to fund Stage 2 of the Northern Victoria Irrigation Renewal Project (NVIRP 2) was agreed as part of the Murray Darling Reform Intergovernmental Agreement in 2008. This agreement was subject to the provision of a business case from Victoria and a Commonwealth due diligence process.

Following due diligence, the Australian Government approved funding of $953 million for the project on 6 November 2010, with water savings from the project to be shared between the environment and irrigators.

Victoria subsequently sought to restructure and change the water share arrangements of the agreed project and it has taken some time to resolve the detail in a way which worked for both parties.

The Australian and Victorian governments have now reached agreement to deliver the nation's largest irrigation infrastructure renewal project - NVIRP 2. The package provides a Commonwealth commitment of $1.2 billion and will yield water savings of 214 gigalitres Long Term Cap Equivalent for the environment.

The new package was announced on 18 October 2011 by the Commonwealth Minister for Sustainability, Environment, Water, Population and Communities, The Hon. Tony Burke MP, and the Victorian Minister for Water, the Hon Peter Walsh MP.

Northern Victoria Irrigation Renewal Project Stage 2 agreement - media releases 18 October 2011
Victorian Food Bowl Modernisation Project - Trade Exemptions FAQs

Heads of Agreement

Key features of Heads of Agreement include:

A revised project structure for the $1.06 billion NVIRP Stage 2 (NVIRP2) project to streamline delivery of the project, underpinned by an outcomes-based delivery framework;
Australian Government funding of $43.7 million for a project (NVIRP 3) re-scoped under the Water Management Partnership Agreement supporting on-farm irrigation modernisation integrated with the roll-out of NVIRP2;
A sale offer of 102 gigalitres - the second half of savings from NVIRP2 - by the Victorian Government to the Commonwealth, and acceptance of this offer;
Victoria granting trade approval for approximately 88 gigalitres of water trades from previous Commonwealth tenders blocked by the Victorian four per cent limit on out of district trade;
Victoria continuing to work cooperatively with the Commonwealth Environmental Water Holder to facilitate arrangements for environmental water delivery;

An agreement supporting the Victorian Food-Bowl Modernisation Project(PDF - 2,319KB) | (Word 4,013KB)

Background

On 6 November 2010 the Prime Minister and the then Victorian Premier, jointly announced that the Commonwealth would provide up to $953 million of the total budget of approximately $1 billion for NVIRP Stage 2.

The NVIRP Stage 2 project and NVIRP 3 are being funded 90% by the Commonwealth Government and 10% by Victoria.

Queensland Healthy HeadWaters Water Use Efficiency Project

Up to $115m is available for irrigation farmers in the Queensland Murray-Darling Basin to invest in efficient irrigation systems and technologies that reduce water loss, deliver long-term economic benefits, and return a share of water savings to the Basin's rivers, wetlands and floodplains.

Healthy HeadWaters Water Use Efficiency Project, Frequently Asked Questions

Queensland Coal Seam Gas Water Feasibility Study

The Australian Government has committed $5 million for a Coal Seam Gas Water Feasibility Study. The aim of the Study is to examine the use of coal seam gas water in addressing water sustainability and adjustment issues in the Queensland Murray-Darling Basin.

New South Wales State Priority Projects

Under the Inter-Governmental Agreement (IGA) on Murray-Darling Basin Reform and COAG communique of 3 July 2008, the Australian Government agreed to provide up to $708 million to NSW for a suite of state-led water efficiency projects subject to due diligence. On 16 November 2011 a funding package was approved that comprised of the following projects: Metering ($196.76 million); Basin Pipes ($136.20 million); Irrigated Farm Modernisation ($83 million); and Healthy Floodplains ($49.01 million).

Metering Project

The Australian Government is providing funding of around $196 million for the NSW Metering Project. The purpose of this Project is to install accurate water meters at unregulated, regulated and groundwater extraction points in the NSW Murray-Darling Basin section to ensure coverage of at least 95% of the total volume of licensed extractions. The meters will be connected to a telemetry system that will provide real time information on water extraction throughout the Basin. A share of water savings resulting from this project will be returned to the environment.

Irrigated Farm Modernisation Project

The Irrigated Farm Modernisation Project aims to upgrade on-farm water infrastructure and strengthen the capacity of irrigators to adopt more efficient water management practices, reduce water losses and improve productivity. Funding of up to $83 million is available to NSW for this Project.

Basin Pipes Project

Around $136 million is available for NSW to implement the Basin Pipes Project. This Priority Project will upgrade selected stock and domestic schemes in the NSW Murray-Darling Basin section to improve the efficiency of water use, restore flow patterns in natural watercourses and contribute to a sustainable future for dependent communities.

Healthy Floodplains Project

The Australian Government is providing up to $50 million for the Healthy Floodplains Project. The purpose of the Project is to licence and control floodplain extractions and improve watering of key environmental assets across NSW. The Project will increase the volume of flow to wetlands on floodplains through controls on water capture and modification of works, and through development and implementation of floodplain management plans.

New South Wales State Priority Projects – pilots

Two pilots were rolled out under the NSW State Priority Projects:

NSW Irrigated Farm Modernisation Border Rivers and Gwydir Pilot – the pilot provided Border Rivers and Gwydir Valley irrigators with the opportunity to upgrade irrigation infrastructure, improve productivity, adapt to reduced water availability, ensure the long term sustainability of local communities and return a share of water savings to the Basin's rivers, wetlands and floodplains. This project has been completed.
NSW Metering Scheme Pilot - the project involves the purchase and installation of high accuracy and tamper proof meters and telemetry systems to collect water extraction data in the Murray catchment. This project will be completed by June 2013.

For more information see the Water Management Partnership Agreements between The Commonwealth of Australia and:

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