Victorian Desalination Plant KPI System Audit. Cica Group Projects.

Victorian Desalination Plant KPI System Audit

Thiess Degremont JV

The Victorian Desalination Plant is a water desalination plant in Dalyston, on the Bass Coast in southern Victoria, Australia. Construction was completed in December 2012. Cica Group was initially engaged to undertake an audit of the Key Performance Indicators relating to aspects of the ongoing performance of the Plant, and now conducts these audits annually.

The Victorian Desalination Plant is an integral part of Victoria’s water system, supplying water via a series of existing and proposed pipelines.

The plant site is about 500 metres (1,640 feet) inland. Associated infrastructure includes tunnels connecting the plant to marine intake and discharge structures up to 1.2 km (1⁄2 mi) out to sea, an 85-kilometre (55 mile) pipeline to connect the plant to Melbourne’s water supply system, and power supply infrastructure for the plant.

The capital cost for the project was $4 billion and operating costs are to be charged by Watersure over a 25–30 year period and are estimated to be around $1.5 billion. This cost includes labour, replacement of membranes, chemicals costs and energy. It was initially estimated at $132 million per annum. Unlike previous water infrastructure works in Melbourne, the plant was built and operated as a public-private partnership.

Challenge

At completion of the plant in 2012, the Joint Venture was obligated to establish an audit process against the series of agreed Key Performance Indicators to measure contractual performance of the plant and the ongoing utilisation given that, dependent on drought conditions at any one period of time, the plant may be in standby mode as opposed to full production.

Solution

Cica Group developed a KPI audit process against the KPIs to measure actual performance against these indicators. Having established this KPI audit process, Cica Group have performed annual audits of these KPI’s since 2013.

Result

Watersure are capable of reporting on their performance against the established and agreed KPIs in compliance with their contractual obligations to the Victorian Government

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