Murray Irrigation operates 3,000km of irrigation supply channels and more than 1,222km of stormwater escape channels to supply water and drainage services to an area totalling 748,000 hectares. The company's assets are worth more than $300 million.
Upgrading our infrastructure: the Asset Renewal Program
When Murray Irrigation Limited was formed in 1995 the NSW Government provided funding to the newly formed company, to upgrade irrigation infrastructure which had been neglected for many years. This funding is to be provided for the first 15 years of the company's life and will cease at the end of the 2009/10 financial year.
The funding is used to refurbish or replace existing irrigation infrastructure including regulators, access culverts, road culverts and road bridges. Mechanisation of structures is also funded through the asset renewal program. The NSW Government appoints an auditor, currently Sinclair Knight Mertz, to review asset renewal works and program expenditure. To date more than $60 million has been spent through the asset renewal program.
2006 Winter program
Landholders can check if their holding will be affected by the 2006 asset renewal works by viewing the winter works program list in the Members section of this website.
Priorities for refurbishment
Murray Irrigation maintains a register of all its assets and has a three year schedule for those identified as being in need of maintenance or refurbishment. Asset renewal funding is only used on assets worth $10,000 or more.
Each year site inspections and engineering evaluations are carried out on those structures identified as being in need of refurbishment, and priorities are adjusted according to the condition of the asset and OH&S risks. In winter 2006 work will be undertaken at 74 sites.
Visiting construction sites
Under the NSW Occupational Health & Safety Act, all visitors to a construction site, even the owners of that site must follow the required safety procedures. This includes an induction to the site, and observing site safety requirements as specified by the site supervisor. Most commonly this may include wearing a hard hat, safety jacket, appropriate footwear or hearing protection.
Construction standards
Murray Irrigation assets worth more than $100,000 are constructed, refurbished and maintained to provide a lifespan of 120 years. Assets worth less than $100,000 are constructed, refurbished and maintained to provide a lifespan of 80 years. All asset renewal works are undertaken in accordance with these criteria. Construction must also meet the required Australian and relevant Road Standards.
Beyond the Asset Renewal Program
When Government Asset Renewal Program funding ends in 2009/10 shareholders will be wholly responsible for the maintenance, refurbishment and upgrade of the irrigation infrastructure.
Since privatisation, and as part of the privatisation agreement with government, the company has been establishing a specific Asset Renewal Reserve through a levy on water entitlements. In the 2005/06 year this is $1.60 per entitlement, or 7% of the water price.
As at July 31, 2005 the Asset Renewal Reserve totalled $25.1 million. With interest and further contributions the fund is expected to total more than $45 million in July 2010
