our performance in facilitating a major projects pipeline … · apartments, health and aged care...

24
Annual Report - 2015–2016 - 20 - Our performance in facilitating a major projects pipeline Key highlights Our department is facilitating a major projects pipeline by: the Coordinator-General actively facilitating required approvals for projects that have recently commenced construction or are close to construction such as the Amrun Project (also known as South of the Embley), Byerwen Coal Project, Isaac Plains Coal Mine, QGC Charlie Fields 1, Kidston Project, Dugald River Project, Guthalungra Aquaculture Project, Rockland Project and Sarsfield Expansion Project investigating potential new projects through the Office of the Coordinator- General regarding an approvals pathway. Since July 2015, AGL’s Coopers Gap Wind Farm and the KUR-World Integrated Eco-Resort at Kuranda have been declared coordinated projects the Coordinator-General undertaking environmental impact assessments of 13 projects (as at 18 July 2016), with a total capital value of more than $19.5 billion and potential to create around 28 000 construction and operational jobs the Coordinator-General recommending ministerial declaration of three new prescribed projects: Kidston Project, Isaac Plains Mining Complex and the Dugald River Project, which were subsequently prescribed as well as eight prescribed project extensions completing the EIS and receiving federal and state approvals for dredging and related construction works to support the development of the Port of Abbot Point progressing works for three new Commonwealth Games sporting venues being built at Coomera, Chandler and Carrara getting construction underway on a number of venue upgrade projects, including the Gold Coast Hockey Centre and Nerang Mountain Bike Trails continuing construction of the Commonwealth Games Village progressing works for the new $30 million State Netball Centre at Nathan generating savings through the CHaPs program by encouraging private sector investment, direct capital works savings and redirection of budgeted funds facilitating the sale of the former Gold Coast Hospital site, in order to convert it into a mixed-use site, including retail, apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the 2015–16 financial year—seeking consideration of 285 property transactions pursuant to the Queensland Government Land Transaction Policy. Transactions included sales via open market process, in-priority disposals, leases and inter-agency transfers with an estimated value of $120 million assisting the Queensland Government’s Market-led Proposal (MLP) Panel with the assessment of the Brisbane Cruise Terminal and leading the assessment of the Queensland Aquarium and Maritime Queensland State Velodrome

Upload: others

Post on 09-Jun-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 20 -

Our performance in facilitating a major projects pipeline

Key highlights Our department is facilitating a major projects pipeline by:

the Coordinator-General actively facilitating required approvals for projects that have recently commenced construction or are close to construction such as the Amrun Project (also known as South of the Embley), Byerwen Coal Project, Isaac Plains Coal Mine, QGC Charlie Fields 1, Kidston Project, Dugald River Project, Guthalungra Aquaculture Project, Rockland Project and Sarsfield Expansion Project

investigating potential new projects through the Office of the Coordinator-General regarding an approvals pathway. Since July 2015, AGL’s Coopers Gap Wind Farm and the KUR-World Integrated Eco-Resort at Kuranda have been declared coordinated projects

the Coordinator-General undertaking environmental impact assessments of 13 projects (as at 18 July 2016), with a total capital value of more than $19.5 billion and potential to create around 28 000 construction and operational jobs

the Coordinator-General recommending ministerial declaration of three new prescribed projects: Kidston Project, Isaac Plains Mining Complex and the Dugald River Project, which were subsequently prescribed as well as eight prescribed project extensions

completing the EIS and receiving federal and state approvals for dredging and

related construction works to support the development of the Port of Abbot Point

progressing works for three new Commonwealth Games sporting venues being built at Coomera, Chandler and Carrara

getting construction underway on a number of venue upgrade projects, including the Gold Coast Hockey Centre and Nerang Mountain Bike Trails

continuing construction of the Commonwealth Games Village

progressing works for the new $30 million State Netball Centre at Nathan

generating savings through the CHaPs program by encouraging private sector investment, direct capital works savings and redirection of budgeted funds

facilitating the sale of the former Gold Coast Hospital site, in order to convert it into a mixed-use site, including retail, apartments, health and aged care

receiving, through Property Queensland, 88 submissions from 15 departments in the 2015–16 financial year—seeking consideration of 285 property transactions pursuant to the Queensland Government Land Transaction Policy. Transactions included sales via open market process, in-priority disposals, leases and inter-agency transfers with an estimated value of $120 million

assisting the Queensland Government’s Market-led Proposal (MLP) Panel with the assessment of the Brisbane Cruise Terminal and leading the assessment of the Queensland Aquarium and Maritime

Queensland State Velodrome

Page 2: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 21 -

Museum and Fortitude Valley PCYC proposals

case managing projects with significant local benefits such as the $70 million Knauf Plasterboard Factory—expected to be complete in mid 2017—creating up to 200 construction jobs and an estimated 55 operational positions

reaching contractual close with the Destination Brisbane Consortium as the preferred proponent for Queen’s Wharf Brisbane IRD on 16 November 2015

continuing to engage with proponents to develop regional IRDs.

Delivering Gold Coast 2018 Commonwealth Games (GC2018) venue infrastructure and the Commonwealth Games Village

GC2018 venue infrastructure Delivery of the GC2018 venue infrastructure and the Commonwealth Games Village—in preparation for hosting the largest sporting event ever to be held on the Gold Coast—is on time and on budget as endorsed by the Commonwealth Games Federation in May 2016.

GC2018 will be hosted across 18 new, upgraded and existing venues across the Gold Coast, and in Brisbane, Cairns and Townsville. Significant stakeholder brief development, site investigation works and master planning was undertaken to ensure optimum legacy outcomes.

The department is managing the planning, design, procurement and construction of three new world-class venues and major upgrades to a further seven venues. All of these are on track to be delivered well

ahead of the GC2018 event, enabling thorough testing.

The $320.914 million investment in sport and community infrastructure in the lead-up to GC2018 is generating more than 1000 jobs during the design and construction stages.

As at 1 June 2016, of the $152 million in construction contracts awarded for the venues projects, $83 million was awarded to Gold Coast contractors and a further $60 million to South East Queensland businesses.

Opportunities to work on world-class infrastructure projects will make it possible for many suppliers to up-skill and gain valuable experience that will build their local business capabilities into the future.

There were more than 370 workers employed across the competition venue sites as at 1 July 2016, with more than 4500 people so far playing a role in the construction of these projects.

Long-term benefits are already being realised such as the Broadbeach Bowls Club upgrade, completed in June 2016 in time to host the Bowls Australian Open competition and 2016 World Junior Championships.

The venue is building its reputation as Australia’s premier bowls facility with the 2020 World Bowls Championships secured, and has employed six additional staff: one apprentice kitchenhand and five hospitality, management and customer service trainees.

Parklands Project (Commonwealth Games Village) The department is overseeing the development agreement for the design and construction of the Parklands Project,

Coomera Indoor Sports Centre

Page 3: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 22 -

which will provide accommodation and services to 6600 athletes and team officials during GC2018.

The Parklands Project private developer agreement model delivers value for money for Queenslanders by significantly minimising risk and cost to the state through private sector investment partners.

The $550 million infrastructure project is providing a substantial boost to the Queensland economy and will create an estimated 1500 jobs during the design and construction stages.

The Commonwealth Games Village is the catalyst project for the redevelopment of the Parklands Precinct, which is the largest urban renewal project ever undertaken on the Gold Coast.

As at 1 June 2016, of the $306 million in construction contracts awarded for the Commonwealth Games Village, $126 million has been awarded to Gold Coast contractors and a further $143 million to South East Queensland businesses.

More than 1800 workers have played a role in the construction of the Commonwealth Games Village and eight of the 18 apartment buildings reached roof level in June 2016.

Substantial progress has been made throughout the remainder of the site. Construction of townhouses started recently and civil works to the main park are nearing completion.

After GC2018, Parklands will become a new master planned, mixed-use community for residents and businesses as part of the Gold Coast Health and Knowledge Precinct. It will incorporate 1252 permanent dwellings, comprising 1170 one-

and two-bedroom apartments and 82 three bedroom townhouses.

Grocon will make the dwellings available for rent and sale from early 2019, with a gradual sell-down over time, minimising the impact of such a large development on the Gold Coast property market.

Queensland State Netball Centre On 8 July 2015, the Queensland Government committed $30 million to build the State Netball Centre: a purpose built eight-court indoor netball centre located at the Queensland Sports and Athletics Centre at Nathan.

The facility will be a base and training venue for the Queensland Firebirds and the headquarters for Netball Queensland—the sport’s state-governing body—as well as a community competition venue.

During 2015–16, the department worked closely with all stakeholders to develop the scope and maximise the ongoing benefits the project will provide.

A detailed brief for the project was prepared following consultation with Stadiums Queensland, Netball Queensland, and Queensland Sports and Athletics Centre officials. This was used to inform all design works commissioned to date. During design and construction, the project will provide up to 120 jobs.

Initial expectations were for building works to be completed and handed over by the end of 2017. To ensure the best possible outcome for the project, additional time has been allowed to enable Stadiums Queensland to progress land negotiations, and Netball Queensland to seek funding for a potential 5000-seat competition show

Parklands development for the Gold Coast 2018 Commonwealth Games

Page 4: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 23 -

court and gymnasium, which are additional to the original scope.

It is anticipated that the project tender will be awarded in late 2016, with practical completion and handover being achieved in the first half of 2018.

Queen’s Wharf Brisbane Queen’s Wharf Brisbane is a $3 billion IRD that will deliver new high-quality public precinct on state-owned land located between the Brisbane River and George Street and between Alice and Queen Streets, with the foreshore improvements extending to the Goodwill Bridge.

Queen’s Wharf Brisbane will deliver significant revenue to the state, with staged payments of $272 million and tax revenue in the first 10 years of casino operations estimated at $880 million.

The project also has significant job creation capacity, with a forecast of up to 2000 construction jobs and 8000 ongoing jobs when operational in 2022.

The key milestone reached in 2015–16 was on 16 November 2015 when the Queensland Government reached contractual close with the Destination Brisbane Consortium to deliver Queen’s Wharf Brisbane.

The department is working closely with stakeholders, including the recognised traditional owners of the site, to ensure the site’s cultural heritage is protected and celebrated.

The relocation of tenants from the precinct’s government and heritage buildings, the decommissioning and storage of monuments and art, and other precinct coordination activities are under way and

will be finalised before site handover occurs to the Destination Brisbane Consortium in 2017.

The department is rolling out a series of events to ensure that Queenslanders are ready to take advantage of the opportunities delivered by Queen’s Wharf Brisbane and other new developments. The series includes guest speakers from one of the Queen’s Wharf Brisbane consortium partners, Star Entertainment Group, as well as supply chain and economic experts.

The series started in Brisbane on 12 July 2016 and will be followed by events in Toowoomba, the Sunshine Coast, Mackay, Rockhampton, the Gold Coast, Cairns, Townsville, and the Wide Bay and Ipswich regions.

Integrated resort developments (IRDs) Tourism contributes $23 billion to Queensland’s economy and supports more than 230 000 jobs. As part of the Queensland Government’s strategy to support and grow the tourism sector, the department is seeking to establish regional IRDs.

Gold Coast IRD In March 2015, the government announced its commitment to protect the Gold Coast’s northern beaches and South Stradbroke Island from development, and to end any consideration of a cruise ship terminal in the Gold Coast Broadwater.

As part of that commitment, areas of the Spit north of Seaworld and Wavebreak Island are being safeguarded.

The government continues to negotiate with ASF Consortium Pty Ltd (ASF) regarding a

Artist’s impression of Queen’s Wharf Brisbane. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

Page 5: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 24 -

five-hectare site between Sea World and the Gold Coast Fishermen’s Co-operative on the Southport Spit.

ASF has been working with the state on this important economic development opportunity for more than two years. The ASF proposal for an IRD on the southern Spit represents $3 billion in investment, up to 2000 construction jobs and up to 10 000 direct and indirect operational jobs.

ASF provided a preliminary proposal to the department on 10 May 2016. Further information is required before a final proposal can be requested and subsequently evaluated by government.

There is substantial local community and business interest in identifying a broader plan for The Spit and surrounding areas.

Aquis Yorkey’s Knob residential and tourism proposal The Aquis proposal for an IRD at Yorkey’s Knob, Cairns has been reshaped to focus on a $2 billion residential and tourism development.

The government continues to work with Aquis, given the jobs and opportunities on offer from this reshaped proposal. It is planned to mainly be a residential and tourism development, with luxury hotels, apartments and villas. The department continues to work with Aquis and other agencies to facilitate an appropriate development at the Yorkey’s Knob site.

Kur-World Integrated Eco-Resort On 12 July 2016, the Coordinator-General declared the KUR-World Integrated Eco-Resort a ‘coordinated project’ under the

State Development and Public Works Organisation Act 1971 (SDPWO Act).

The proponent is Reever and Ocean Developments Pty Ltd. If developed, the project would be a substantial eco-tourism asset to the state.

Located around 22 kilometres north-west of Cairns, the proposal—which requires a capital investment of more than $640 million—is to develop an integrated eco-resort, including luxury hotel and residential accommodation, education and business facilities, rejuvenation, health and wellbeing facilities, and adventure and recreation facilities.

The project could create up to 1830 jobs during the construction period, with a peak construction workforce of 545 in any one year. During the operational phase, the project is expected to generate 600 jobs.

On 27 June 2016, the federal Department of the Environment and Energy determined the project to be a ‘controlled action’, requiring assessment under the Environment Protection and Biodiversity Conservation Act 1999.

The Coordinator-General will work closely with the proponent and government agencies to ensure the potential impacts of the project—including impacts on protected species habitat—are managed to an acceptable level, and will coordinate a whole-of-government assessment.

Prescribed projects Prescribed project powers under the SDPWO Act can be used to assist proponents to overcome unreasonable delays in obtaining project approvals.

Artist’s impression of Queen’s Wharf Brisbane. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

Page 6: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 25 -

The Coordinator-General is currently monitoring 13 prescribed projects.

During 2016, the Coordinator-General recommended the declaration of three new prescribed projects to the Minister for State Development. These were the:

Kidston Project Isaac Plains Mining Complex Dugald River Project.

For a prescribed project, the Coordinator-General has the power to intervene in the approvals process, including by issuing a:

progression notice—which requires the decision-maker to progress the administrative processes necessary to complete the assessment process within a specified timeframe

notice to decide—which requires the decision-maker to make the relevant decision within a specified timeframe

step in notice—allowing the Coordinator-General (with the minister's approval) to 'step in' and assume responsibility under the relevant law for assessing and making a decision on a project, in place of the usual decision-maker.

Sunshine Coast Airport Expansion The Coordinator-General’s Evaluation Report was sent to the Commonwealth Minister for the Environment on 20 May 2016 to inform his decision on matters of national environmental significance under the Environment Protection and Biodiversity Conservation Act 1999.

The Coordinator-General’s Evaluation Report was released on 19 May 2016 approving the project and setting strict

requirements to protect water quality and protected species habitat.

It includes 88 conditions and 28 recommendations. The Coordinator-General considered 2227 submissions, assessment documentation for the project, and advice from relevant federal, state and local government agencies.

The Sunshine Coast Airport Expansion Project would deliver jobs and economic growth for the Sunshine Coast region, and provide a major boost to tourism.

The project involves capital expenditure of $347 million and will provide an economic boost of $311 million to the regional economy by 2040.

The project will create a peak construction workforce of 86 and an additional 1538 direct operational jobs by 2040.

The project will also be assessed by agencies in the Australian Government, for example the Civil Aviation Safety Authority and Airservices Australia, as part of its responsibility to manage aviation airspace.

The proponent has indicated that construction would commence as soon as required approvals are in place, with planned commencement in 2020.

Improved government property usage Repurposing, renewing or disposing of surplus government property is an important part of property management for government. It has a range of benefits for the state: it provides opportunities for economic growth and job creation through private investment, and it creates community benefits by generating revenue

Sunshine Coast Airport

Page 7: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 26 -

for government to reinvest into new infrastructure and services for Queenslanders.

Property Queensland, as part of the department, assists relevant government departments, agencies and local councils with re-use opportunities and manages significant transactions on behalf of government, including strategic and multi-agency transactions, the assessment of property-based MLPs and transactions with significant complexity.

Property Queensland is also involved in developing and implementing portfolio review initiatives to identify innovation, public benefit and value-uplift opportunities and is delivering a transparent reporting and decision-making framework for government.

Proposals from not-for-profit and community organisations for the use of government property are investigated by Property Queensland on a case-by-case basis.

Brisbane Broncos Training Administration and Community Facility Following government approval, Property Queensland negotiated a lease transaction with the Brisbane Broncos to enable the construction of a Training, Administration and Community Facility, providing significant community benefits to Queensland for the term of the lease.

A key aspect of the lease agreement is the requirement for the Broncos to provide and report upon a range of community benefits in exchange for exclusive access to the site.

These community benefits include public access to the training field when not in use

by the Broncos and access for community groups to a community room and theatrette.

The Brisbane Broncos have commenced demolition and remediation works at Red Hill, with construction expected to commence by the end of 2016. This project will directly employ approximately 84 people during the construction phase.

The Broncos are funding the design and construction of the new facility, which has an estimated project budget of $27 million.

The Broncos will run a number of important community programs, such as Beyond the Broncos, from the facility and expand these programs over the life of the lease.

Government Land for Accommodation and Support Services (GLASS) The GLASS Program was established so that surplus and underutilised government land could be made available to not-for-profit organisations, to enable them to develop affordable accommodation and support services.

Surplus and underutilised land has been sourced from a number of state agencies for the GLASS Program.

An extensive expression of interest phase was completed in December 2015, matching not-for-profit organisation interest with available land.

Proposed projects are located on the Gold Coast and Sunshine Coast, and in Brisbane, the Darling Downs, South Burnett, North and Far North Queensland.

Artist’s impression of the Brisbane Broncos Training Administration and Community Facility

Page 8: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 27 -

Queensland Aquarium and Maritime Museum The department is leading the whole-of-government assessment of a MLP for the Queensland Aquarium and Maritime Museum.

The proposal includes a world-class aquarium to showcase the diversity of Queensland’s rivers, islands, reefs and ocean environments, and a revitalised Queensland Maritime Museum.

The proponents are required to develop their detailed proposal on the basis that it will protect the heritage and cultural values of the site and deliver enhanced public spaces connecting South Bank and Kangaroo Point while retaining the site in government ownership.

The project would be fully funded, constructed and operated by the private sector and would further enhance tourism and employment opportunities.

Mary Valley properties In April 2016, the department started an expression of interest campaign to provide opportunity for interested parties to inspect and purchase 11 of the remaining state-owned Mary Valley properties.

Strong interest was demonstrated in the properties, with a total of 65 offers received resulting in 10 sales settling and one property under contract.

Six additional Mary Valley properties were not included in this expression of interest campaign. These properties have development leases, including leases for two dairy farms, an outdoor education facility, a beef cattle enterprise and agricultural training and education uses.

Under the lease conditions, these properties can be purchased by the lessees at the expiry of their leases, which will occur between late 2016 and 2018.

Additionally, in April 2016, the department transferred 119 hectares of farming land that fronted the Mary River to the Department of Education and Training (DET) to be used for agriculture training delivery through the Noosa District High School.

Community Hubs and Partnerships (CHaPs) The CHaPs Program facilitates opportunities for all levels of government as well as the private and community sectors, to collaborate and plan infrastructure to support the integration and delivery of services that benefit Queensland communities.

CHaPs projects deliver innovation and economic efficiency benefits for government and the community, including providing direct capital savings, unlocking private sector contributions and leveraging existing investments for greater community benefit.

CHaPs managed the planning and implementation of 13 projects across the state during the 2015–16 financial year. These projects were attributed with saving tens of millions of dollars in government capital expenditure. The projects are:

Aura (Caloundra South): commenced November 2014; anticipated close-out August 2016—facilitated the co-design of education and community facilities and secured a capital contribution from the private sector developer to deliver early facilities to the emerging community

View of the Mary Valley

Page 9: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 28 -

Caboolture Health Precinct: January 2015 to April 2016—facilitated a land transfer agreement between state agencies, future proofing the Caboolture Hospital and avoiding significant costs to government for additional land purchase and infrastructure duplication

Redcliffe: commenced February 2015 to current—collaboratively developed the Redcliffe Peninsular Futures Strategy, capitalising on the transformational opportunities and regional economic and social development to be provided by the Moreton Bay Rail Link

Logan Development Areas: commenced June 2016 to current—facilitating a collaborative cross-government mechanism to add value to the coordination of land use and service delivery planning in the Priority Development Areas (PDAs) of Yarrabilba and Greater Flagstone

Yarrabilba: August 2015 to April 2016—facilitated a state agency and local government agreement on future land allocation in the PDA experiencing rapid population growth

Ripley Valley Priority Development Area Ipswich: November 2014 to current—negotiating an interagency Infrastructure Agreement with the developer for coordinated land use planning and delivery of health, education and local government services

Inala: July 2015 to current—worked collaboratively with the Department of Communities, Child Safety and Disability Services (DCCSDS) and other major stakeholders to engage Inala service providers and other community stakeholders to review current and future community service and recreation

needs and develop the Inala Community Hub Precinct report

Maryborough: April 2015 to April 2016—partnered with state agencies and regional stakeholders to identify opportunities to utilise the vacant TAFE site for service co-location or other economic development purposes

Moranbah: January 2015 to June 2016—facilitated the planning, negotiation and funding of a new youth and community centre to provide the opportunity for co-located and improved services for the community, securing significant private sector investment from BHP Billiton Mitsubishi Alliance

Mount Isa: February 2016, anticipated close-out October 2016—partnering with state agencies and regional stakeholders to identify opportunities, needs and collaborative solutions in Mount Isa

Western Downs: August 2015, anticipated close-out August 2016—partnering with state agencies, regional stakeholders and the resource sector to develop an action plan articulating coordinated responses to challenges and opportunities from changing industry and community profiles in the region, and identifying actions to support growth, jobs and improve liveability

Weipa: August 2015 to December 2015—developed a cross government plan for government accommodation growth requirements

Non-Government Education Sector Partnership: June 2016 to current—facilitating partnership opportunities between state and non-government education sectors to support innovation in funding and finance, as well as

Artist’s impression of Aura Community Hub

Page 10: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 29 -

planning and land use for the provision of essential infrastructure to meet significant school aged population growth.

CHaPs and its successful collaborative approaches to infrastructure planning will assist government’s delivery of the State Infrastructure Plan and Social Infrastructure Strategy. The CHaPs Program Board, comprising central agency and cross government stakeholders, including the Department of Premier and Cabinet (DPC); Queensland Treasury; DET; Queensland Health; Department of Housing and Public Works (DHPW); DCCSDS; and DILGP; endorses the initiation of CHaPs projects, following opportunity scan activities and recommendations from the CHaPs team.

Former Gold Coast Hospital divestment Property Queensland led the program of work associated with preparation and divestment of the former Gold Coast Hospital site in Nerang Street, Southport.

The department project managed the site preparation to ensure the site was ‘development ready’ and more appealing to potential purchasers. This included demolition of 20 buildings that previously accommodated the Gold Coast Hospital—completed in August 2015—and the remediation of the underlying land—completed in October 2015.

At the same time, Property Queensland reconfigured the site into saleable lots, negotiated infrastructure charges credits with Gold Coast City Council and coordinated the expression of interest process.

Undertaking these types of negotiations enables the department to achieve value uplift for strategic surplus government land.

Fortitude Valley PCYC The department, in partnership with the PCYC, is investigating opportunities for private sector investment to fund a new Fortitude Valley PCYC facility in Brisbane.

This project demonstrates the government’s commitment to supporting the renewal of community-based infrastructure. The PCYC Association provides a wide range of community services including sport and recreation, youth development and crime prevention programs helping young Queenslanders.

This project is testing an innovative funding model that could be applied more widely, resulting in improved standards of community based facilities.

Clean coal mining to renewable energy The government is pursuing a low-carbon future, but recognises that coal will be part of the energy mix for many years to come.

The government is also focusing on realising the opportunities of a renewable energy future.

Queensland’s emerging biofuels and large-scale renewable energy projects are starting to generate jobs and attract more investment. The department is currently facilitating more than $3 billion worth of renewable energy projects in various stages of early development, of which more than $2 billion is located in North Queensland.

By investing in the industry, the department is working towards reducing Queensland’s

Artist’s impression of wind turbines at Coopers Gap Wind Farm

Page 11: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 30 -

greenhouse gas emissions and creating a low-carbon economy for the future.

The department is working with the proponents of 20 projects, which will offer up to 2000 jobs during construction.

While the renewable energy sector will play an increasingly important role in Queensland’s economic development, the resources industry also continues to provide jobs, royalties and business opportunities for many Queenslanders and will continue to do so for some years.

Queensland produces some of the highest quality coking and thermal coal in the world, within a strong workplace safety and environmental legislative framework.

There continues to be global demand for thermal coal—the International Energy Agency (IEA) estimates that Southeast Asia’s electricity demand will almost triple by 2040. The IEA also predicts that 40 per cent of the increased capacity would be supplied by coal-fired power stations and India is forecast to double its demand for thermal coal by 2030.

A significant proportion of the energy needs of developing nations will draw on coal-powered electricity, and Queensland is well positioned to meet this demand.

The global adoption of more efficient power generation technologies, such as supercritical and ultra-supercritical power plants, will also require a switch from lower quality coal supplies to cleaner burning black coal.

By using Queensland’s high-quality coal, rather than lesser quality coal from other suppliers—particularly in combination with advanced generation technologies—these countries would contribute to lowering carbon emissions globally.

A transition from coal to alternative energy is underway, but this will take time and there will continue to be global demand for coal for power generation for many years.

The department is actively developing the resources industry, but is increasingly focusing on Queensland’s emerging renewable energy sector in order to harness opportunities in both sectors, drive innovation and create employment.

Renewable energy The Queensland Government is committed to growing the renewable energy industry, creating jobs and reducing greenhouse gas emissions.

For example, the government’s Solar Future Plan sets a target of one million solar rooftops in Queensland by 2020.

Further, the government’s independent Renewable Energy Expert Panel is examining the creation of a credible pathway to achieving a 50 per cent renewable energy target by 2030.

The $500 million Coopers Gap Wind Farm, the largest proposal of its type in Queensland, could generate around 350 construction and 20 operational jobs. It was declared a coordinated project by the Coordinator-General in June 2016, with AGL now preparing an EIS.

The proposed construction of up to 115 wind turbines would generate 350 megawatts of power, which has the potential to supply power to an estimated 180 000 households. Once operational, the wind farm would assist in meeting the government’s renewable energy generation target.

Aerial view of Abbot Point coal terminal

Page 12: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 31 -

Galilee Basin The Queensland Government supports development of the Galilee Basin on a commercially viable and environmentally sustainable basis. The Galilee Basin covers an area of 247 000 square kilometres in western Queensland and contains a substantial resource of mostly high-volatile, low-sulphur thermal coal.

There are currently five proponents with active mine development proposals in the Galilee Basin. Adani’s Carmichael Coal Mine and Rail Project, and GVK Hancock’s Alpha and Kevin’s Corner Projects are the most advanced in terms of approvals.

There are also other projects, including MacMines’ China Stone Coal Project in the north, and Waratah’s Galilee Coal and AMCI’s South Galilee Coal Project in the south.

The mines range in scale from annual production output of up to 17 million tonnes for the South Galilee Coal Project, to up to 60 million tonnes for the Carmichael Coal Mine.

If all projects were to go ahead, at peak around 18 390 construction and 15 590 operational jobs could be created and total capital expenditure for all proposed mines, and associated rail and port infrastructure, is estimated at $55.8 billion.

These projects would also generate thousands of additional jobs in supply chain industries, such as training, technology and manufacturing.

Mining proponents are responsible for ensuring their mines and supporting infrastructure projects are financially viable. All Galilee Basin developments must meet strict environmental standards.

Environmental assessments are required, by federal and state legislation, to be extremely thorough. For example, the environmental studies for the Carmichael mine, rail and port projects currently cover around 32 500 pages of information.

The Coordinator-General’s evaluation reports for the projects have set extensive, stringent conditions to protect landholders, flora and fauna, groundwater resources, surface water and air quality. Controls on dust and noise have also been set.

For groundwater impacts, the Coordinator-General imposed strict conditions requiring Galilee Basin proponents to contribute data and funding for development of a state government regional groundwater model. This will assess the impacts from multiple mines in the Galilee Basin and develop adaptive management measures for ongoing mine operations.

For social impacts, the Galilee Basin proponents have committed to being involved in local and regional planning processes and to participate in collaborative forums. These forums will support the mitigation of social impacts and the identification of regional opportunities.

State development areas (SDAs) SDAs declared under section 77 of the SDPWO Act are clearly defined areas of land established by the Coordinator-General to facilitate development, promote economic development and generate jobs.

SDAs provide an efficient system for the assessment of development applications and play a critical role in Queensland’s export-oriented economy. There are currently nine SDAs and they typically take the form of one of the following:

Irrigation ponds at AJ Bush & Son’s in the Bromelton SDA

Page 13: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 32 -

industrial hubs for large-scale, heavy industry—located in close proximity to ports, rail and/or major road networks, including the Abbot Point, Bromelton, Gladstone and Townsville SDAs

multi-user infrastructure corridors—for the co-location of infrastructure such as rail lines, water and gas pipelines, and electricity transmission lines including the Callide Infrastructure Corridor, Galilee Basin, Stanwell to Gladstone Infrastructure Corridor, and Surat Basin Infrastructure Corridor SDAs

major public infrastructure sites—for example, the Lady Cilento Children's Hospital in the Queensland Children’s Hospital SDA.

The Coordinator-General is also investigating the potential for an SDA around the Port of Bundaberg.

The following provides an outline of activity conducted by the Coordinator-General and the department in relation to SDAs in the 2015–16 financial year.

Abbot Point SDA Declared in 2008, the 16 885 hectare Abbot Point SDA was established to facilitate large-scale industrial development of regional, state and national significance, given its proximity to the Port of Abbot Point, access to both the Bruce Highway and north coast rail line, and its considerable distance from Bowen.

The Port of Abbot Point is identified as a priority port under the SPD Act. The department has commenced work to inform master plan development for the Port of Abbot Point.

In February 2016, the Coordinator-General approved an SDA application for the Abbot Point Growth Gateway Project, which provides for the onshore disposal of dredge material on unallocated industrial land next to the existing operational coal terminal to expand offshore berths and facilitate additional coal exports from Abbot Point.

In April 2016, the Coordinator-General approved Adani’s SDA application for Terminal 0, which provides for 40 million tonnes per annum of additional coal throughput at Abbot Point and is critical to helping facilitate the development of the Galilee Basin.

The Coordinator-General is also currently assessing an application for rail infrastructure within the Abbot Point SDA, lodged by Adani on 22 February 2016.

Work is also continuing with the local Native Title group through Juru Enterprises Limited, to provide further skills and capacity building while undertaking land management activities within the Abbot Point SDA.

The Coordinator-General will continue to work with all proponents at Abbot Point to ensure a coordinated and effective approach to the development of key infrastructure within the Abbot Point SDA.

The Coordinator-General is currently undertaking a cumulative air quality impact assessment for Abbot Point, and is undertaking preliminary scoping in relation to infrastructure requirements for the Abbot Point SDA, including a potential upgrade to the Bruce Highway intersection with Abbot Point Road.

These studies will help to inform and provide guidance to the Coordinator-General, with respect to land use planning decisions regarding the location of existing, new and expanding industries within the Abbot Point SDA.

Bromelton SDA Declared in 2008, the Bromelton SDA is strategically located on the rail network, providing ready access to intrastate and interstate markets.

The Bromelton SDA is located around six kilometres west of Beaudesert, and is an ideal location for industry in South East

Page 14: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 33 -

Queensland, particularly high impact and freight and logistics operations.

Major industries established in the Bromelton SDA include AJ Bush & Son’s rendering plant—with 75 full time employees and an annual turnover of $40 million—and the Gelita gelatine manufacturing plant—with 80 full time employees and an annual turnover of $55 million.

In June 2016, the Coordinator-General approved the $30 million SCT Logistics Project to establish an intermodal rail freight facility and warehouses on land situated adjacent to the rail line.

All of the project’s approvals have been finalised and construction has commenced. Stage 1 of the project will generate 200 construction and 130 operational jobs, with the potential to create a further 200 operational jobs when the project progresses to subsequent stages.

The department has assisted SCT Logistics by liaising with the relevant stakeholders, including DTMR, Queensland Urban Utilities and the Scenic Rim Regional Council to ensure all necessary pre- requisites and approvals are in place for the new facility.

The department is also currently liaising with SCT Logistics regarding local procurement and local construction of its new rail facility.

Construction tenders for the $27.5 million Beaudesert Town Centre Bypass were called in June 2016. This is a vital piece of infrastructure to service the increasing freight demands in the Bromelton SDA through improved access to the Mount Lindesay Highway. The project is jointly funded with the Scenic Rim Regional Council. Construction of the bypass road is

expected to commence in late 2016 and take up to 12 months to complete.

As part of the Building Our Regions Program, the government also committed $3.3 million to a $6.5 million joint funding project with the Scenic Rim Regional Council and Queensland Urban Utilities to construct a 6.1 kilometre trunk water main. The project will connect the Beaudesert Water Treatment Plant to the Bromelton SDA. This will enable the provision of reticulated water supply to industry precincts in the Bromelton SDA. The expected completion date is March 2018.

The Coordinator-General has issued eleven SDA approvals in the Bromelton SDA since commencement of the Bromelton SDA Development Scheme in November 2012. Six approvals were issued in 2015, and two have been issued to date in 2016.

Galilee Basin SDA The Galilee Basin SDA, declared in June 2014, supports the development of the Galilee Basin and provides an efficient way to transport coal to the Port of Abbot Point via two multi-user rail corridors.

Protection and implementation of the Galilee Basin SDA is a critical initiative to support the opening up of the Galilee Basin.

The Galilee Basin SDA generally comprises two 500–600 metre-wide corridors from the Galilee Basin to the Abbot Point SDA—one rail corridor to service the central Galilee Basin, and a second corridor to service the southern Galilee Basin.

As at 30 June 2016, the Coordinator-General had approved 13 development applications in the Galilee Basin SDA. This includes four quarries, one permanent non-resident workforce accommodation, two

View of Bromelton SDA

Page 15: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 34 -

temporary workers’ camps, an airport and three rail infrastructure applications from Adani, and a power station and a quarry from other applicants.

Adani has sought approval for five development applications for rail infrastructure from the Coordinator-General covering their full 380 kilometre rail line from mine to port, four applications within in the Galilee Basin SDA and one application within the Abbot Point SDA.

As at 30 June 2016, the Coordinator-General had approved three of the four rail applications within the Galilee Basin SDA, with one application still under assessment and another application under assessment within the Abbot Point SDA. On 22 December 2015, the Coordinator-General approved a material change of use for Rail Package 1 lodged by Adani in the Galilee Basin SDA.

On 10 March 2016, the Coordinator-General approved two material change of use applications for Rail Package 2 (rail infrastructure and non-resident workforce accommodation) and Rail Package 4 (rail infrastructure) lodged by Adani in the Galilee Basin SDA.

The Coordinator-General is assessing a material change of use application for Rail Package 3 (rail infrastructure and non-resident workforce accommodation) lodged by Adani on 7 May 2015. As at 30 June 2016, this application was in the decision stage.

Gladstone SDA Declared in 1993 and strategically located adjacent to the Port of Gladstone, the Gladstone SDA supports the development of industry of regional, state and national significance with connections to major rail

networks and Australia’s national highway. It is well suited towards industries such as transport and logistics, chemical manufacturing, and mining-related industry and processing.

The majority of land within the Gladstone SDA is within state ownership (owned by either the Coordinator-General or the Minister for Economic Development Queensland).

Major industries established in the Gladstone SDA include Rio Tinto’s alumina refinery, Orica’s chemical manufacturing complex, Transpacific Industries' waste management and recycling facility, Southern Oil’s northern oil refinery and the QGC, Australia Pacific and the Santos GLNG gas plants.

Major public and private infrastructure within the Gladstone SDA includes gas, water, slurry, and sea water pipelines, conveyors, roads and rail, with co-location of infrastructure facilitated through multi-user infrastructure corridors.

The Coordinator-General has progressively purchased land in the Gladstone SDA multi-user infrastructure corridors in order to facilitate a coordinated approach to infrastructure development. In July 2015, the Coordinator-General purchased an additional 237 hectares of land within the Materials Transport and Services Corridor Precinct—the key multi-user infrastructure corridor within the Gladstone SDA.

The Coordinator-General has recently approved Southern Oil Pty Ltd to establish a pilot project at their northern oil refinery site within the Gladstone SDA. The pilot project will ‘value-add’ to the residual waste oil currently recycled at the site to test the further refining of the waste oil to produce green diesel, and the addition of

Port of Gladstone

Page 16: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 35 -

waste streams, such as bagasse, to supplement production. This is a great example of biofutures in action and is indicative of the progress that is being made in meeting Queensland Biofutures 10-Year Roadmap and Action Plan.

In addition, during 2015–16, the Coordinator-General approved developments in the Materials Transport and Services Corridor Precinct to enable the Gladstone Area Water Board to undertake infrastructure development.

Queensland Children’s Hospital SDA Declared in 2008, the 15.8-hectare Queensland Children's Hospital SDA was established to facilitate the delivery of a hospital and associated infrastructure.

Adjacent to Brisbane's existing Mater Children's Hospital, the area includes development of the Lady Cilento Children's hospital, the Centre for Children's Health and Research, associated infrastructure and an education precinct (to be used by Somerville House and St Laurence's College).

The Coordinator-General approved three SDA applications in the Queensland Children’s Hospital SDA in 2015–16.

Townsville SDA The Townsville SDA was declared in 2003, and is strategically located to support clusters of medium to large-scale industrial development.

The Townsville SDA comprises 4900 hectares of land located approximately six kilometres south-east of the Townsville CBD in proximity to the Port of Townsville.

The Coordinator-General is committed to maximising development opportunities in the Townsville SDA and is actively working with a major landholder, Glencore, on master planning its landholdings to facilitate and coordinate development.

The Coordinator-General is currently investigating options to develop an infrastructure charging strategy for the Townsville SDA, in conjunction with Townsville City Council and the Department of Transport and Main Roads (DTMR).

On 18 May 2016, Prime Minister Malcolm Turnbull pledged $150 million towards the construction of the Townsville Eastern Access Corridor, a proposed rail corridor to provide increased rail capacity and more direct access to the Port of Townsville, including bypassing residential areas and the CBD.

DTMR would be the lead agency for rail corridor implementation.

If constructed, the Townsville Eastern Access Corridor would facilitate development of rail-dependent land uses in the Townsville SDA.

During the past 12 months, the Coordinator-General has approved Aurizon’s $50 million freight terminal, a service station (ancillary retail) and food and drink outlet, and a transport depot in the Townsville SDA.

Aurizon’s freight terminal is an expansion of the existing Stuart rail yard and facilitates the relocation of the current rail yard from the Townsville CBD. The freight terminal is currently under construction and is due for completion in December 2016.

Port of Townsville

Page 17: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 36 -

Potential SDA around the Port of Bundaberg In October 2015, the Queensland Government announced an investigation into the possibility of a new SDA around the Port of Bundaberg including land on the western side of the Burnett River.

The Port of Bundaberg is the next port north of Brisbane and is the state’s only other east coast trading port that is outside the GBRWHA.

The first stage of the investigation, the technical analysis, is nearing completion. The first stage has considered industry opportunities, land use, infrastructure and transport requirements and physical, environmental and social impacts.

The project team worked closely with Bundaberg Regional Council, the Port of Bundaberg and existing and potential industries to inform the investigations. The investigation identified that there is potential for industry on both the eastern and western sides of the Burnett River, with development of the eastern side more likely in the short to medium term and the western side in the longer term.

There are potential opportunities for an SDA to capitalise on new trades that are currently commencing at the Port of Bundaberg, including gypsum imports, silica sand exports and wood pellet exports.

The investigation indicates an SDA could also provide opportunities for regional-scale industrial development, including mining support services and as well as developments in the biofutures sector.

Areas of potential environmental and cultural value have also been identified along with buffer and flood conveyance areas.

Consultation on the proposed SDA and its boundary was undertaken from 27 June 2016 until 25 July 2016. Consultation material included an information report that explained the investigations that informed the identification of the draft boundary, as well as potential land uses within the area, including buffers, environmental management and industrial uses.

The Queensland Government wishes to strike the right balance between the interests of stakeholders, including landholders, proponents and the community.

A final evaluation of a proposed SDA will be presented to the Coordinator-General, informed by the technical component of the investigation and the results of consultation. If the Coordinator-General is supportive of the proposal, a declaration process under the SDPWO Act will follow.

Priority ports master planning Priority port master planning is a key Queensland Government port-development related commitment of Reef 2050.

On 20 November 2015, the SPD Act commenced, which mandates master planning at the priority ports of Gladstone, Abbot Point, Townsville and Hay Point/Mackay. The master plans will aim to optimise the use of infrastructure and address operational, economic, environmental and community relationships, as well as supply chains and surrounding land uses.

The Act also implements the government’s policy of prohibiting the sea-based disposal of material generated by port-related capital dredging in the GBRWHA, unless it is beneficially reused.

Aerial view of the port and study area of a potential SDA at Bundaberg

Page 18: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 37 -

The Act provides for incremental development at the Port of Cairns by allowing small scale volumes of capital dredging in the inner harbour. This allowance is consistent with commitments given in Reef 2050 and recognises the importance of the port to the city of Cairns and Far North Queensland.

The Act also provides for port master planning guidelines. Following public consultation on a draft priority port master planning guideline, which closed in March 2016, the final guideline will be released in late 2016.

Port master planning will provide certainty for priority ports, their surrounding precincts and their associated industry sectors and it will also ensure the reef's outstanding universal value is an intrinsic consideration in all future port development.

The preparation of a draft master plan for the priority port of Gladstone commenced in 2015–16, as did work to inform the master plan development for the priority ports of Abbot Point and Townsville.

Early work on priority port master planning for Hay Point/Mackay will start later in 2016.

By the end of 2018, all master plans are expected to be in place.

Master planning will preserve areas for future essentials that a growing port will require, such as corridors for shipping requirements, roads, rail lines, gas and water pipelines and power lines.

It will also ensure protection of sensitive environmental areas as well as areas that the surrounding community needs.

Master planning requirements for priority ports include a reasonable assessment of the types of port industry related development that may occur over a 30-year planning horizon, as well as rigorous public consultation prior to finalisation. This ensures a robust and transparent review about how the master plans for priority ports will drive their sustainable development into the long-term.

Townsville Port Expansion Port of Townsville Limited proposes an expansion of the port to support forecast growth in trade from 12 million tonnes per annum in 2012–13 to 48 million tonnes per annum by 2040.

The Townsville Port Expansion Project includes the deepening and widening of existing shipping channels, the construction of six new berths and the creation of a significant area of reclaimed port land. The proposal would provide 139 direct jobs at the peak of construction and 180 permanent operational jobs.

In June 2015, the proponent advised that the project was being amended to be consistent with the government’s policies for the protection of the Great Barrier Reef.

In May 2016, Port of Townsville Ltd supplied the preliminary draft of the additional information to the EIS, following the Coordinator-General’s request for additional information on key issues raised in submissions during public consultation on the draft EIS in 2013.

The Coordinator-General is now working with the proponent to complete the EIS process.

The SPD Act identifies the Port of Townsville as a priority port for which

Port of Gladstone

Page 19: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 38 -

ongoing development is supported, but for which capital dredge material must be either beneficially re-used, or disposed of on land.

Port of Gladstone The Port of Gladstone is Queensland’s largest multi-commodity port and the world’s fifth largest coal export terminal, exporting 72 million tonnes in 2015. Major exports from the port include coal, alumina, cement, petroleum, aluminium and agricultural products. The recent introduction of the LNG industry and the new Wiggins Island Coal Terminal are substantially increasing the throughput of the port.

Gladstone Ports Corporation (GPC) proposes to duplicate the existing Gatcombe and Golding Cutting shipping channel to accommodate more shipping traffic. Currently, the ability of the port to accommodate high numbers of vessels is limited by the shipping channel depth and lack of passing capacity.

Without this channel duplication project, further vessel congestion and delays will significantly limit both the port’s capacity and associated economic development of Central Queensland and the state.

The project involves upgrading infrastructure at the Port of Gladstone, including:

dredging a new and existing 9 kilometre long channel to a depth of 16 metres and a width of 200 metres

disposing of approximately 12 million cubic metres of dredged material

installing new navigational aids for the channel duplication and relocating existing aids.

The project is a declared coordinated project undergoing an EIS, which includes detailed investigation of:

potential water quality and marine impacts related to dredging and dredge material disposal

beneficial re-use options for disposal of dredge material.

As part of its EIS investigations, GPC is revisiting its spoil placement proposal. If the project proceeds, it would create around 100 construction jobs and 20 operational jobs.

Master planning for the Port of Gladstone that is required under the SPD Act, is proposed to be finalised in March 2017. The objective of master planning for all priority ports is to optimise the use of infrastructure and address operational, economic, environmental and community relationships, as well as supply chains and surrounding land uses.

Cairns Shipping Development Project (Trinity Inlet) Tourism operators in Far North Queensland are keen to take advantage of forecast strong growth in the cruise shipping industry.

On 21 June 2016, Ports North announced that it has revised the Cairns Shipping Development Project to cap its proposed expanded capacity at ships up to 300 metres in length. Ships of this size cannot currently berth in the Port of Cairns and are required to anchor offshore.

The project aims to widen and deepen the existing Trinity Inlet shipping channel, upgrade wharf facilities, enhance naval capacity and improve port efficiencies.

Port of Gladstone

Page 20: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 39 -

The revised proposal requires less than one quarter of the volume of dredging originally proposed and is expected to cost $120 million, around one third of the previous estimate.

Ports North is now further investigating land-based dredge material placement sites, channel design and other environmental assessments prior to submitting the revised draft EIS to the Coordinator-General.

The EIS studies have already supported separate approval of ‘voyager class’ ships to use the port. This has already led to an additional 40 000 passenger visits being booked into Cairns.

Bundaberg Port Gas Pipeline The 28.5 kilometre Bundaberg Port Gas Pipeline is catalyst infrastructure to enable economic growth for the Bundaberg Region. The Queensland Government has committed $18 million of funding over two years for its construction.

This project will enhance the existing gas network and integrate with the Wide Bay Gas Pipeline, and represents a significant investment in the region, with jobs created during construction works and flowing from additional activity due to gas availability.

The provision of the Bundaberg Port Gas Pipeline will also provide the capacity to offer opportunities for other companies wanting to access gas—this will potentially result in a greater economic benefit by leveraging growth from the same infrastructure used by several end users.

The department is working with EDQ and Australian Gas Networks Limited, owner of the Wide Bay Gas Pipeline, to deliver the project.

The state has entered into a fixed price development agreement with Australian Gas Networks Limited to design, deliver and operate the pipeline—construction commenced in early 2016 and is on schedule to be completed and operational by January 2017.

The pipeline route is almost entirely within existing road corridors and will have off takes at strategic locations, as required along the route, to provide opportunities for future growth.

The project has engaged locally to utilise the pool of resources available in Bundaberg.

Agreements have been negotiated with a number of local contractors. Project construction has created 55 jobs, including 42 positions locally.

The department is working with the Bundaberg Regional Council and local industry stakeholders to further capitalise on the new pipeline and to secure new industry and jobs for the Bundaberg region.

Economic modelling, commissioned by Bundaberg Regional Council in 2014, estimated a net annual economic impact to their local government area from this project at $195 million and 765 full time equivalent jobs.

The pipeline will support the development of the new Knauf Plasterboard manufacturing facility located at the Port of Bundaberg.

Knauf Plasterboard Knauf is a major supplier of plasterboard and associated products. It is investing $70 million to develop its facility.

This investment by Knauf Australia Pty Ltd is expected to create up to 200 jobs during

Regional Major Projects Forum in Cairns

Page 21: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 40 -

construction and 55 new positions when operational in mid 2017.

The department worked closely with the proponent, council and the Port of Bundaberg to obtain approvals and facilitate this investment.

Springfield—including Springfield Health Precinct Greater Springfield is the largest privately owned master planned city in Australia and continues to stimulate economic growth through new infrastructure and investment.

The department is working with AVEO Group to promote local procurement and construction for 2500 retirement villas at a cost of $1.7 billion. AVEO Group, in partnership with Springfield Land Corporation, has started the civil works for this long-term project that will see many new jobs and local construction opportunities.

Mater Hospital is another key developer at Springfield’s Health City. The new 80-bed Mater Hospital was officially opened in November 2015 with the Mater Hospital proposing to also build Stage 2 with up to 1000 beds. The department will work with the Mater Hospital to promote local procurement and construction opportunities should Stage 2 proceed.

In addition, the Dusit Thani Group is building a $550 million resort development at Brookwater. Stage 1 civil works have started and the department is working closely with Springfield Land Corporation to support the establishment of important projects like this resort that will create significant jobs, and have a positive impact on the regional economy.

The total value of the Springfield Health City, once completed, will be around $2.5 billion. It will be a significant employment generator, creating around 9000 direct and indirect jobs.

Abbot Point Growth Gateway Project The Port of Abbot Point in the Mackay, Isaac and Whitsunday region needs to be expanded to meet export demand from proposed Galilee Basin coal mines.

In March 2015, the Premier announced a new approach to expanding the Port of Abbot Point that will allow for the construction of a second trestle, increasing the port’s capacity from 50 to 120 million tonnes per annum.

The Abbot Point Growth Gateway Project involves placing dredged material on unallocated industrial land, next to the existing coal terminal on the area known as T2. This solution avoids disposing of dredged material at sea or in the Caley Valley Wetlands.

No dredging will be undertaken in the marine park or in close proximity to coral reefs. This approach is consistent with the SPD Act and Reef 2050, which support on-land disposal of dredged material.

In October 2015, the department finalised the EIS for the Abbot Point Growth Gateway Project. This included four weeks of public consultation, during which the department received over 55 000 submissions.

The final EIS was approved by the Australian Government under the Environment Protection and Biodiversity Act 1999 in December 2015, subject to 29 strict conditions to protect the environment.

Caley Valley Wetlands

Page 22: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 41 -

The project has now received all state and federal approvals, subject to conditions.

The project is now the responsibility of North Queensland Bulk Ports. Works will not begin at Abbot Point until Adani has gained all its necessary project approvals and demonstrated the financing of its Galilee Basin projects.

Santos GLNG Gas Field Development Expansion The Santos GLNG Gas Field Development Project would extend the Santos GLNG project by progressively developing coal seam gas reserves across 35 petroleum tenements, comprising an area of 10 676 square kilometres in the Bowen and Surat basins.

The project is located across the local government areas of Maranoa, Western Downs and Central Highlands Regional Councils, and Banana Shire Council and has the potential to result in substantial economic impacts over its 30-year life.

The project forecasts a construction workforce of 1980 jobs at its construction peak and an operational workforce of around 300. The project will draw on a local workforce with minimum targets of 20 per cent during construction and 50 per cent during operation.

The maximum number of production wells for the expansion is estimated to be 6100.

The project will be developed incrementally and include:

drilling and completion of gas production, monitoring and underground gas storage injection wells

gas gathering, treatment, compression and transmission pipelines

water management and monitoring, including treatment where necessary

power supply and generation construction and operation of support

infrastructure including roads, quarries and accommodation facilities.

The Coordinator-General’s Evaluation Report on the EIS was released on 4 December 2015. The Coordinator-General approved the project subject to strict environmental conditions to reduce the potential impacts on water, land and biodiversity.

The project would be undertaken in accordance with Queensland’s strong regulatory framework to manage environmental impacts associated with CSG developments and to ensure the industry develops in a responsible way.

Resource development

Aurukun Bauxite Project The Aurukun bauxite deposit is a significant, undeveloped resource situated in western Cape York. It is estimated to contain up to 480 million tonnes of dry beneficiated bauxite and is one of a limited number of large deposits in the world currently available for development.

A development agreement has been negotiated and executed between the state and Glencore. The development agreement is managed by the department and sets out confidential milestones that Glencore must meet to develop the Aurukun bauxite resource.

Subject to Glencore obtaining all necessary approvals, the development of this resource is expected to generate significant construction and ongoing operational jobs.

Abbot Point

Page 23: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 42 -

It also has the potential to provide direct and indirect benefits to the Aurukun and Cape communities in the form of education, training, business opportunities and infrastructure upgrades.

These benefits are in addition to any benefits negotiated in an Indigenous Land Use Agreement (ILUA) with the traditional owners, as well as royalty contributions to the state.

As a first step, Glencore has applied for a mineral development licence over the resource and is continuing to engage with the Aurukun Shire Council and representatives of the Native Title holders.

The department will work cooperatively with Glencore, the traditional owners and the Aurukun community to progress this development.

South of the Embley (Amrun) Rio Tinto has begun expansion of its bauxite mining operations near Weipa, with commencement of construction of the new Amrun mine, around 40 kilometres south of the Embley River.

The Amrun Project includes an open-cut mine, processing plant, bauxite stockpiles, a new port with ship loading facilities and associated infrastructure.

It is anticipated the $2.5 billion project will extend the life of bauxite mining in the area for another 40 years. It will provide up to 1100 jobs during peak construction and up to 1400 ongoing operational jobs as the bauxite resources at the existing Weipa site gradually decline.

Rio Tinto announced its financial investment decision for the Amrun Project on 27 November 2015. Early works began on site in February.

On 5 November the declaration of the Amrun project as a prescribed project was extended by two years until 12 November 2017 to allow the Coordinator-General to ensure that project approvals are completed

on time. On 23 May 2016, the Coordinator-General extended the lapsing date of the Amrun Project Coordinator-General’s Evaluation Report by three years, to 24 May 2019.

The Office of the Coordinator-General continues to work with Rio Tinto on compliance with the conditions set in the project’s Evaluation Report, to streamline conditions of approval and to remove regulatory duplication.

Byerwen Coal Project The Byerwen Coal Project will deliver significant economic benefits to the local region and Queensland.

Investment costs for the project are estimated at $1.76 billion. The direct value added to the regional economy during the operations phase is estimated to be $289 million per annum and an additional $143 million per annum to the wider Queensland economy.

Predicted royalties payments to the state government alone are estimated at $13.2 billion over the 50-year life of the project.

The project will provide significant opportunities for local and regional suppliers and businesses to benefit economically by providing goods and services to the mine during construction and operations. Queensland will benefit from flow-on activities.

Byerwen is a prescribed project—the Coordinator-General is monitoring the project and approved the Byerwen Coal Project Biodiversity Offset Strategy in December 2015.

On 15 April 2015, Mining Lease 70435—one of the six mining leases required for the project—was granted by the Minister for Natural Resources and Mines. The lease commenced on 1 May 2015 allowing construction to begin on the project’s rail spur on 8 December 2015.

Page 24: Our performance in facilitating a major projects pipeline … · apartments, health and aged care receiving, through Property Queensland, 88 submissions from 15 departments in the

Annual Report - 2015–2016 - 43 -

The remaining leases have not yet been granted. The project will require up to 350 construction workers and 545 operational workers.

South Burnett Coal Project Following deliberations conducted during 2015–16, the Coordinator-General declared the South Burnett Coal Project a coordinated project on 18 August 2016.

The project proposes an open-cut mine able to produce up to 10 million tonnes of thermal coal per annum for up to 30 years, for domestic and export purposes. It includes a transport corridor extending around 130 kilometres from the mine site at Kingaroy to the existing north coast rail line near Theebine.

The proponent proposes to locate either a slurry coal pipeline or to reinstate rail in the transport corridor, which would enable the product to be transported to Gladstone.

Capital investment for the project is estimated at $500 million to $950 million, being $200 million to $250 million for the mine site and $300 million to $700 million for the transport corridor. It is estimated that 600 direct jobs at peak construction will be required for the mine and corridor. Up to 550 jobs would be required during operations.