Home' Future Building Australian Infrastructure Review : December 2010 Contents futurebuilding 53
Opposition Leader Barry O'Farrell and Shadow Infrastructure Minister Brad Hazzard
The Board of Infrastructure NSW will oversee Restart NSW,
giving it the teeth to make a difference. Infrastructure NSW will not
only have the mandate to make recommendations to government
but the initial capital to underpin their decisions.
Of course, any additional borrowing will be undertaken in
strict compliance with our fscal commitment to maintaining the
AAA Credit Rating.
FB: Would that mean more infrastructure spending in
regional New South Wales?
BOF: The NSW Liberals & Nationals are committed to whole-
of-state development. For this reason, one third of Restart NSW
funding will be quarantined for projects outside Sydney, Newcastle
FB: How exactly would the leasing of Sydney's
desalination plant work? What are the financials
around the proposal?
BOF: The proceeds of the long-term lease of the desalination
plant will be allocated to our Restart NSW fund.
There will be no impact on water prices as a result of the
lease. Sydney Water will continue to control pricing and volume
via a Services Agreement, with retail pricing continuing to be
governed by IPART. There will be no impact on water security.
Sydney Water will continue to control volumes produced via a
Services Agreement and, if required, additional capacity could
still be added to the plant; there will be no change to the current
operating and maintenance arrangements for the plant.
At the conclusion of the term of the Services Agreement, the
asset will be returned to the state. The proceeds from the lease
will be transferred to the Restart NSW fund. To ensure that Sydney
Water is not disadvantaged as a result of the transaction, liabilities
held against the desalination plant will be transferred to the
general government sector.
A long-term lease contract for Sydney’s Desalination Plant will
also introduce additional contestability into the supply of water
in Sydney, introducing competition in water supply to the Sydney
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