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Irrigation Australia Conference 2014 MID2030 Modernisation Project’s OUTLET RATIONALISATION PROGRAM Ashley Oldham. Introduction. Southern Rural Water – Macalister Irrigation District Outlet Rationalisation Program Summary Why a Rationalisation Program - Benefits How the program works - PowerPoint PPT PresentationTRANSCRIPT
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Irrigation Australia Conference 2014
MID2030 Modernisation Project’s
OUTLET RATIONALISATION PROGRAM
Ashley Oldham
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Introduction
• Southern Rural Water – Macalister Irrigation District
• Outlet Rationalisation Program Summary
• Why a Rationalisation Program - Benefits
• How the program works
• Case Studies
• On-farm changes post rationalisation
• Program Outcomes
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Southern Rural Water – Macalister Irrigation District
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Southern Rural Water – Macalister Irrigation District
• Service approximately 10,000 customers – 1,100 in MID
• Secure water supplies
• Good rainfall (600mm/yr)
• Productive soils
• Strong dairy and beef industry
• Developing vegetable and cropping industries
• Economic contribution of $500+ million per annum to Victoria’s economy
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Summary of Rationalisation Program
Program funded by customers that provides them the opportunity to modernise their outlets
• Customers eliminate low use outlets• Elimination of other water delivery assets• Calculate savings through Whole of Life cost analysis
• Positive Whole of Life cost– New modernised outlet(s) constructed at no cost to customer– Connection works conducted with excess savings
• Negative Whole of Life cost– Customer funds difference of outlet works– no connection works
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Why a Rationalisation Program
• In response to customer demand
• To reduce liabilities by reducing assets
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How the program works - process• Customers submit application form
• The application is discussed with customer
• Whole of Life cost calculation
• Upon agreement Security Deposit paid
• Farm Consultant assesses rationalisation and produces report
• Approval is sought through a review panel
• Once approved - works are scheduled
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How the program works – Whole of Life Cost calculation
Total Savings $100,000
Outlet Construction -$40,000
On-farm Connection Works -$25,000
SRW Asset Works -$15,000
NET SAVINGS $20,000
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How the program works - program features
• Customer participation is voluntary
• Assessment equity
• Program and assessment rules are clear
• Assessment includes independent farm irrigation advice:• Support good practice irrigation• Identifies on-farm works required and links to long term farm plans
• Funded asset abandonments, rationalisations and reconfigurations are compatible with proposed system upgrades
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What are the benefits of a Rationalisation Program?SRW Benefits• Reduces future modernisation and maintenance costs• Improved measurement accuracy• Increases delivery efficiencies• Encourages on-farm investment• Facilitates regional economic growth
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What are the benefits of a Rationalisation Program?Customer Benefits• Access to modernised meters now - a meter replacement program years away• Increase production - higher and more consistent flow rates • Improved lifestyle – flexibility of automated start and finish times
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Difference from Murray Darling Basin modernisation/rationalisation schemes• Not in Murray Darling Basin – government funding not a priority
• Customers have had to largely fund program
• Not trying to reduce the size of the district
• Eliminate spur channels
• Not necessarily to the backbone
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Case Study 1 – Before Map
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Case Study 1 – After Map
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Case Study 2 – Before Map
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Case Study 2 – After Map
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On-farm changes post rationalisation
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On-farm changes post rationalisation
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Program outcomes
• Customer Consultation• Face to face communication works best
• High Rationalisation Rate• 14 Modernise - 18 Eliminated• 2013 rationalisation rate of 56%• 2014 rationalisation rate of 75%
• Farm Consultant• Customers felt put at ease
• Further Customer Investment• ~80% invested further on-farm• Personally & funding application
• Positive Customer Survey Responses• All would recommend the program to other customers
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