Yanco Creek rehabilitation project public/private potential joint venture - preliminary evaluation
Kerry Adby & Ted Brogan,
Copernican Securities
September 2004
ISBN 0 642 55270 3
PDF file
About this report
This report forms part of the research undertaken within the Pratt Water Murrumbidgee Project, which is about private investment options to improve water use and to save otherwise wasted water for productive uses. Part of that project is the examination of specific investment projects that have been considered as having the greatest potential to attract private investment and financing. Such examination also fits with the importance allocated by governments to finding “market based solutions” for water use efficiency, including private participation.
Whilst there has been increasing discussion of the need to extend “public private partnerships” to rural water in Australia (and debate as to the desirability of such) most of the discussion has taken place either in a theoretical or broad-brush context. The approach to date has tended to be one of: “Wouldn’t it be nice”, rather than “Is it realistic?” and “What is required to make a project bankable?”
The prime objective of this report is to attempt to move out of the theoretical and into the practical by:
- Exploring the funding requirements for works in a specific area and for a specific project, viz: -“The Yanco Creek Rehabilitation Project”.
- Identifying some of the potentially conflicting objectives and stakeholder requirements by putting the project in its situational context.
- Examining the potential existing funding options and requirements of various funding parties.
- Testing private sector financiability assumptions.
- Detailing potential impediments.
- Presenting for further discussion and development a potential alternative multilateral funding model.
- Providing a “Roadmap” to progress further consideration of options.
The specific intention is for the report to further discussion and debate. It is NOT meant to provide a “one size fits all” solution. Equally it does not seek to constitute a feasibility study. Rather, the Yanco Creek System (“YCS”) was selected for detailed analysis because of the amount of work already undertaken and documented in the Management Plan and the perception that the project is attractive due to the relatively low cost of the water savings and the strong likelihood of attracting investment. The report seeks to fill, at a preliminary level only, the gap between an economic benefit study and a financial viability and funding and bankability assessment.
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