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Strategic Infrastructure Plan

for South Australia

2010 Discussion Paper

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The Strategic Infrastructure Plan for South Australia is at:www.dtei.sa.gov.au.

Produced by the Department for Transport, Energy and Infrastructure

GPO Box 1533

ADELAIDE SA 5001

Telephone: (08) 8463 6224

Facsimile: (08) 8303 0828
http://www.dtei.sa.gov.au/http://www.dtei.sa.gov.au/


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Foreword

The Strategic Infrastructure Plan for South Australia was first released by the South Australian Governmentin 2005 to drive a new approach to infrastructure provision that is coordinated, efficient, sustainable andinnovative.Over the last five years South Australia has experienced strong economic growth, supported by significantprogress in implementing the states first infrastructure plan. Public and private investment in infrastructureis at record highs and more than 80 per cent of the priority projects presented in the 2005 plan have beencompleted or are underway.

The State Government has also progressed a range of reforms to enhance infrastructure planning,strengthen management of public infrastructure construction, reduce red tape impacting on private sectorinvestment and promote more efficient use of existing infrastructure.

The historically high levels of infrastructure construction activity currently being recorded in this state are theresult of a significant rise in capital spending by this government and a short term major funding boost fromthe Australian Government in response to the global financial crisis. This will provide a strong base forprivate sector growth as global economic recovery gathers pace.

South Australia, like the rest of Australia, faces unprecedented challenges going forward, includingsignificant urban population growth and population ageing, an expanding and diversifying economy, achanging climate and increasing pressure on our water resources.

Sound, well coordinated planning is critical so that the state is positioned to address these challenges andsecure a sustainable, prosperous future through investment in infrastructure that is well spent to the benefitof current and future generations of South Australians.

An update of the infrastructure plan is needed to ensure that it continues to provide direction to stateagencies, other spheres of government and the private sector on the governments priorities for SouthAustralia. This discussion paper is the first step towards development of a new plan to map out the statesinfrastructure priorities for the next 10 to 15 years.

It sets out the states achievements since the first infrastructure plan was released in 2005. It builds on the

30-Year Plan for Greater Adelaide and presents the key challenges and opportunities confronting the statewhich need to be considered in long term infrastructure planning. The discussion paper also identifies theimmediate and longer term strategic directions or priorities which the government believes should guidedecisions on infrastructure investment over the next 10 to 15 years and beyond.

Infrastructure development is characterised by high costs and long lead times, with responsibilities sharedbetween all three spheres of government and the private sector. The South Australian Government is keento build on its partnerships with the Australian and local governments and the private sector aimed atdelivering social and economic infrastructure where and when it is most needed.

This discussion paper has been prepared with input from State Government agencies and provides a basisfor consultation with infrastructure providers and users, industry, local councils and communities. Thegovernment is keen to receive comments on the paper and proposals for innovative infrastructure solutions

that will contribute to the development of this state.

HON PATRICK CONLON MPMINISTER FOR INFRASTRUCTURE

September 2010

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Contents

Foreword

Overview 1

Introduction 11

Delivering the Plan 21

Context for the Planning Period 28

Challenges and Opportunities

Urban Land 47

Transport 53

Information and Communications Technology 64

Education and Training 67

Science, Technology and Innovation 75

J ustice and Emergency Services 79

Recreation and Sport 82

Arts, Culture and Heritage 86

Health 90

Community Services and Housing 96Energy 102

Water 107

Natural Assets 112

Minerals and Energy Resources 116

Waste Management 123

Regional Overview 126

Eyre and Western 128

Far North 135

Yorke and Mid North 144

Limestone Coast 150

Murray and Mallee 156

Kangaroo Island 163

Greater Adelaide 168

Bibliography 175

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Overview

Introduction

South Australias first infrastructure plan, released in 2005, has guided significant progress in tackling thechallenges identified at that time. More than 80 per cent of the priority projects listed in the plan have beencompleted or are underway and the South Australian Governments infrastructure spending is at record high

levels.

As the Australian economy recovers from the global financial crisis, we face new and emerging challengesand opportunities arising from strong population growth and ageing, technological change, industry growthand diversification, including the development of the mining and defence sectors, and the need foradaptation and mitigation measures to address climate change.

The State Government has released the 30-Year Plan for Greater Adelaide (a volume of the SouthAustralian Planning Strategy) to tackle these challenges by guiding where people live and work and themanagement of land use, while conserving our environment.

Recognising the importance of integrating land use and infrastructure planning, a review of stateinfrastructure priorities is now timely, guided by the new volumes of the South Australian Planning Strategy.

This discussion paper has been prepared to assist public consultation on an update of the statesinfrastructure plan. It presents an overview of the achievements, challenges and opportunities in the 14infrastructure sectors covered in the 2005 plan. It also provides an outline of the long term global andnational economic, social and environmental trends which are expected to shape the way in which SouthAustralia develops and the long term strategic priorities to guide infrastructure development over the next10 to 15 years and beyond.

The new edition of the plan will clearly identify priorities for private and public investment and policy effort bygovernments to address nationally significant policy issues. It will set out infrastructure priorities from awhole-of-state perspective and specific initiatives, with associated timeframes, to address infrastructureneeds. These initiatives will include new investment opportunities, as well as options for deferring costlycapital expenditure by better managing demand. Innovative ways to make better, more efficient use ofexisting infrastructure assets through the smart application of communications technologies will also be

explored.

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Overview


The successful planning and delivery of infrastructure is a challenge. For this reason the government hasestablished effective implementation arrangements, including clear accountabilities across stategovernment, coordination with other spheres of government and the private sector and streamlined projectapprovals processes.

Robust approaches to identifying infrastructure needs and determining solutions across South Australia arebeing employed, with full engagement of the community in priority setting. Coordinated planning by publicand private infrastructure providers, integrated with land use planning, is also important to ensure that wemake efficient and smarter use of existing infrastructure and deliver timely and well located additionalinfrastructure capacity. The government also aims to ensure that regulatory arrangements and its ownprocurement and other business processes continue to deliver the infrastructure required to support thestates economic, social and environmental objectives while minimising any associated cost or red tapeburden on business.

The South Australian Government has worked in partnership with the Australian and local governments andindustry to deliver on a number of the states infrastructure priorities. An update of the infrastructure planprovides an important opportunity to renew and strengthen this partnership to achieve ongoing alignment ofpriorities and integration of planning and delivery of infrastructure across the state.

An overview of progress to date and future priorities in the 15 infrastructure sectors to be addressed in theupdate of the infrastructure plan is presented below.

Urban Land

Since 2005 the states planning system has undergone significant reform to ensure that it facilitates timelydelivery of suitable land to support residential and industrial development. In terms of employment lands,growth of the defence sector has been supported by development of Techport Australia at Osborne, theEdinburgh Parks Defence Precinct and Technology Park Adelaide and development of industrial estates inseveral regional centres. Employment lands are being protected at the Mitsubishi Clovelly Park site andPort Stanvac. Clovelly Park will be developed as a hub for advanced manufacturing, clean technology and

environmental industries.

A number of landmark residential developments have been progressed including at Mawson Lakes, LochielPark, Westwood, Newport Quays, Northgate and Playford North. Planning is underway for transit-orienteddevelopments at Bowden and Woodville.

The government will deliver the 30 Year Plan for Greater Adelaide through urban regeneration, designationof specific growth areas and strategically located employment lands, development along transit corridorsand transit oriented developments, increased use of public transport, cycling and walking and developmentof quality public spaces.

Key priorities going forward are the development of the housing and employment lands supply program toprovide for a 15 year supply of industry zoned land and residentially zoned land to meet demand. Thegovernment will continue to work with local government and the private sector to ensure that planning for

both industrial and residential developments is closely integrated with transport and infrastructure planning.

The government will also continue to work with other jurisdictions to support the adoption of best practice inintegrated land use and infrastructure planning.

Transport

Following release of the states first infrastructure plan in 2005, the government embarked on a massiveprogram to build and upgrade transport infrastructure, with capital spending rising from $260 million in2004-05 to over $1 billion in 2009-10.

A $2.6 billion ten-year program to extend and modernise Adelaides public transport system is underway,

including electrification of the passenger rail network, extension of the Noarlunga line to Seaford, extensionof the light rail network, extension of the OBahn corridor into the CBD, station upgrades and refurbishmentof existing trains and purchase of additional trains, buses and trams.


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Overview

A number of major construction projects have been completed successfully, including the Port RiverExpressway, Gallipoli Underpass, Bakewell Underpass, duplication of the Sturt Highway between Gawlerand Greenock, and the Northern Expressway. Key regional developments include the Eyre Peninsula graintransport infrastructure upgrades, upgrade of Port Lincoln airport and progress in implementing the Green

Triangle Region Freight Action Plan.

Construction of the new terminal at Adelaide Airport has been completed, as has the deepening of thechannel, construction of the new grain terminal and extension of the container terminal at Outer Harbor.

As part of the long term plan to improve the north-south corridor between the Southern Expressway and thePort River Expressway, the government will be investing more than $800 million, with support from theAustralian Government, to build the South Road Superway. Plans are well advanced for the redevelopmentand upgrade of road and rail infrastructure at Darlington. In addition, construction of the duplication of theSouthern Expressway will commence next year.

Longer term directions for transport include ongoing modernisation of the metropolitan public transportnetwork, transit oriented developments and interchanges to increase use of public transport and supportdevelopment of a more compact urban form. Use of intelligent transport and traffic management systems

will also be considered to make more effective use of existing transport infrastructure.

On regional roads, priority will be given to safety related upgrades and works in growth areas. Ongoingimprovements to South Australias regional road and rail freight networks and ports will be needed to liftfreight productivity and growth of our export industries. Priorities include redevelopment of the states portcapacity and land-side links to potential new mining developments, including Olympic Dam.

Integrated land use and transport planning and ongoing reforms at state and national levels to transportregulation will aim to ensure efficient investment in and use of the states transport infrastructure.



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Overview


Information and Communications Technology

A well connected community is one of the essential foundations of a prosperous economy. Since 2005 theState Governments Broadband Development Fund has supported broadband infrastructure projects

benefiting a number of regional centres across the state. Improved broadband services have been deliveredthrough aggregation and leveraging of public sector demand for these services in South Australias regionalcentres. The government has also continued to upgrade the broadband network for public schools and theSouth Australian Broadband Research and Education Network (SABRENet) has been extended toadditional research and education institutions.

Following the launch of the governments ICT strategy,Ask Just Once, the government has improved onlineaccess to a range of services and reduced the cost of doing business with government. It has also set aside$150 million for an upgrade of the South Australian Government Radio Network (SA-GRN), which providesradio communication services for government agencies to support public safety and other services.

The government will continue to facilitate aggregation of public and private demands to encouragecommercial and competitive investment in ICT infrastructure, particularly in rural areas, and to encouragecoordinated deployment of ICT infrastructure with the states other physical infrastructure priorities arising

from housing and industrial developments. The government will also seek to ensure that the rollout of theAustralian Governments National Broadband Network delivers maximum benefits to South Australiansthroughout the state.

Education and Training

Significant reconfiguration of the states educational facilities is underway to provide quality learningenvironments and meet changing community needs. The Education Works program will fund theestablishment of six new schools, while the Trade Schools for the Future initiative has seen infrastructureconstruction completed at 10 secondary schools. Childrens centres are being established across the statebringing together child care, education, health and parenting services in one location. These major worksare complemented by the ongoing targeted upgrade of school facilities across the state.

More than $1 billion of construction works is underway in South Australian schools, funded by the AustralianGovernments Nation Building Economic Stimulus Plan, to sustain jobs in the building sector and provideimproved education facilities.

South Australias universities have continued to develop their facilities to meet the needs of a growinghigher education sector, while refurbishment works have been progressed at a number of TAFE campuses.

Future school planning will consider the need to co-locate and integrate delivery of services to children,their parents and the broader community and to promote schools as community-based multi-purposefacilities. Six new special education units for children with disabilities will be built on school grounds and anextra 10 childrens centres will be established at primary schools. The government will also continue toinvest in facilities in schools to support school-based apprenticeships and traineeships.

New directions for TAFE facilities will be guided by the development of a master plan to prioritiseinvestment in new or upgraded infrastructure to match changing industry and community needs and supportnew teaching methods. This will include the provision of multi-purpose basic facilities across a broadspectrum of campuses and consolidation of more specialised activities on lead campuses.

Development of the higher education sector continues to be a priority for the state as a key driver ofeconomic and social development. The success of university submissions to the Australian GovernmentsEducation Investment Fund will be important in progressing infrastructure plans for the states universities.

Adelaides international student numbers are expected to increase as a result of improved teaching andresearch facilities, supported by dedicated accommodation services.


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Overview

Science, Technology and Innovation

Significant new investment in research infrastructure over the last five years, guided by the StateGovernments 10-year vision for science, technology and innovation (STI10), has helped underpin economic

diversification and growth. This investment has been supported by the Premiers Science and ResearchFund and funding secured from the Australian Government to establish major research facilities for thestates universities and public research institutions.

Key amongst these are the establishment of the South Australian Health and Medical Research Institute tobe built adjacent to the new Royal Adelaide Hospital, the Minerals and Materials Science Learning andResearch Hub (UniSA), the Institute of Photonics and Advanced Sensing (University of Adelaide) and theMawson Institute for Advanced Manufacturing to act as an incubator for emerging industries in thenanotechnology, biomedicine and automotive sectors.

The State Government is supporting development of renewable energy technologies, includingestablishment of the Geothermal Research Centre, assisted by the states Renewable Energy Fund, and abiofuel pilot plant at SARDIs Aquatic Science Centre.

The states research achievements will be showcased through the Royal Institution of Australia, a publicscience and technology centre which opened in 2009.

Continued collaboration between government, industry and research institutions will be essential to build onand strengthen South Australias research and technology development capabilities includingmanufacturing at Mawson Lakes, biotechnology at Thebarton, agriculture at the Waite, health and medicalresearch at the Florey precinct, renewable energy and cleantech development at Clovelly Park, creativeindustries at Glenside and marine capabilities at West Beach and Port Lincoln.

Justice and Emergency Services

J ustice and emergency services facilities continue to be upgraded to meet emerging needs. Thegovernment has brought a number of regional police stations and court facilities to an operational standardmatching metropolitan facilities. The capacity of the prison system has been expanded with additionalinfrastructure at Port Augusta, Mount Gambier and Port Lincoln to meet anticipated growth in prisonernumbers.

Additional funding has been provided for replacement of Country Fire Service fire appliances and a numberof new fire stations have been constructed in Adelaide and regional centres since 2005.



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Overview


The government has also delivered improved justice facilities in the APY Lands at Mimili, Amata andPukatja and constructed a new low security unit for Aboriginal prisoners at Port Augusta.

Crime and disorder will continue to be dealt with through provision of fit-for-purpose court, prison and police

facilities supported by ongoing upgrade of ICT systems aimed at providing a democratic and fair justicesystem. Ongoing replacement and upgrade of fire stations and emergency services units, appliances,equipment and ICT infrastructure will also be required to maintain appropriate service standards andcapacity to provide for a safer community.

Recreation and Sport

South Australia continues to develop its sport and recreation infrastructure in support of its health and wellbeing goals as well as supporting elite sport and recreation based tourism. Over the last five years targetedupgrades to facilities have been made at the Hindmarsh Stadium, Santos Stadium, Adelaide Superdrome,State Shooting Park, Adelaide Oval, Memorial Drive Tennis Centre, AM Ramsay Regatta Course and theVictoria Park Clipsal 500 facilities. Development and upgrade of community level sporting facilities has

continued and construction of the State Aquatic Centre at Marion has commenced. The government hasmade a funding commitment to the redevelopment of Adelaide Oval and development of a new sportsfacility hub in Port Augusta.

Future development of recreational and sporting infrastructure will be guided by the 30-Year Plan forGreater Adelaide, and regional volumes of the South Australian Planning Strategy, with a focus onplanning, design and distribution of fit-for-purpose facilities throughout the state to improve access and useat the community level. The concept of community hubs located with other services, making increased useof government land and buildings, will be developed.

The government will also work with sporting bodies to build on the states success in staging events ofnational and international standing and aim to enhance the capacity of the state to hold state and nationallevel competition in a range of sports.

Arts , Culture and Heritage

Since 2005 a number of projects to manage, preserve and add value to South Australias significant arts,culture and heritage assets have been progressed. Major redevelopment or upgrade works have beencompleted or are underway at the Adelaide Botanic Gardens, Adelaide Entertainment Centre, SouthAustralian Museum, Art Gallery of South Australia, Adelaide Festival Centre and the public spaces alongNorth Terrace associated with the Art Gallery, museum and State Library. The program of upgrade works atthe states four major regional theatres has also progressed.

Key recent developments to further enhance the states arts and cultural base include the AdelaideConvention Centre redevelopment, establishment of the Adelaide Film and Screen Centre at Glenside,refurbishment of the Dunstan Playhouse and further upgrade works on North Terrace.

Longer term priorities include revitalisation of the public realm, improving urban design with guidance fromthe newly established Integrated Design Commission, improved conservation and management strategiesfor the states heritage assets and strategies for improving storage of and access to the states valuable artand cultural collections.

Health

The continuing renewal program for the states health infrastructure has seen significant investment in therefurbishment and expansion of the Queen Elizabeth Hospital, Lyell McEwin Hospital and Flinders MedicalCentre. The Womens and Childrens Hospital has seen a number of redevelopment projects completed.

The new state of the art Royal Adelaide Hospital, to be opened in 2016, will provide a centre of care of

international standing for South Australians. The new South Australian Health and Medical Research


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Overview


Institute to be built adjacent the new Royal Adelaide Hospital will provide a national focal point for new andleading areas of research.

South Australias mental health system is being reformed to improve services across the state. A significant

element of this reform is the current redevelopment of the Glenside campus. Other mental healthinfrastructure improvements have been completed or are in progress at the Lyell McEwin Hospital,Noarlunga Hospital and Queen Elizabeth Hospital. Major upgrades will continue to be made to Adelaidespublic hospitals and a number of country hospitals and regional aged care facilities will continue to beupgraded.

An increased focus on early intervention, illness prevention and health promotion will be supported throughthe development of additional GP Plus Health Care Centres and GP Plus Super Clinics. These centres willact as one-stop-shops for all primary health care needs across Adelaide and throughout regional SouthAustralia.

Key long term priorities include the ongoing upgrade and expansion of primary health care infrastructureand the development of service models that better integrate hospital and primary health services. Theresponsiveness of the health system to the needs of Aboriginal people will be improved, while reform of the

mental health system will focus on community mental services as the focus of the system of care. Upgradesto information technology systems will be implemented to achieve a fully networked hospital system.

Community Services and Housing

Following release of the Housing Plan for South Australia and creation of Housing SA, South Australia isdeveloping historic levels of new social housing supply and expanding choice for home buyers and rentersthrough increased affordable housing opportunities. Projects in Hawksbury Park and Kilburn South havedelivered 354 new dwellings and 600 upgraded dwellings and revitalised these urban communities.

As a result of national partnership with the Australian Government, the State Government will havecompleted up to an additional 1 360 new social housing dwellings and more than 500 dwelling upgrades by

2012.

The governments policy that at least 15 per cent of new dwellings in significant new developments shouldmeet the criteria for affordable housing has been implemented successfully to improve housing choice andaffordability. Provision of high needs housing has also been advanced through the Common Ground andLadder initiatives aimed at assisting homeless people, while group homes have been developed for peoplewith disabilities through the Crisis Accommodation Program.

Through a 10 year partnership agreement with the Australian Government, the State Government willprovide new and upgraded housing in Aboriginal communities across the state and provide opportunities forAboriginal employment and housing.

The government will continue to work with local government and the private sector to develop innovativenew approaches to the supply of affordable and high-need housing.

In addition to improving access to affordable housing, the government is providing support to vulnerableand lower income groups through coordinated community services. Through its Social Inclusion initiative,South Australia is better integrating homelessness services within the total housing system andstrengthening links with other government services.

The move from institutions, for those people with disabilities who wish to do so, will continue, supported byexpanded community based accommodation options and improved community residential care services.

There will also be increased support for ageing at home.

A key priority going forward will be to ensure infrastructure development and urban regeneration serve toreduce disadvantage and increase opportunities for South Australians.


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Overview

Energy

South Australias electricity generation capacity has continued to grow and diversify through private sectorinvestment. The state continues to lead the nation in wind and solar generation, with almost half the nations

installed wind capacity and over 20 per cent of grid-connected solar photovoltaic installations. Geothermalexploration investment has also grown and work continues to develop hot rock technology to a commercialstage.

The government recently provided financial assistance for the establishment of a bio-fuel pilot plant and willcontinue to encourage research and development of renewable technologies through its $20 millionRenewable Energy Fund.

Electricity transmission and distribution capacity and reliability have been enhanced. Current gastransmission infrastructure provides connections to gas production facilities of sufficient capacity to meetdemand for the foreseeable future.

South Australia continues to work with other jurisdictions to develop and reform regulatory arrangements inthe national electricity market to promote timely and efficient investment in energy infrastructure. Thegovernment has also contributed to the development of a range of state and national initiatives to improveenergy efficiency in the residential, commercial and industrial sectors.

Economic growth and new developments, such as the proposed expansion of Olympic Dam, will continue toincrease energy demand. Ongoing enhancements to national regulatory and planning arrangements areexpected to result in upgrades and expansions to supply capacity to improve the overall supply-demandbalance for electricity. The adoption of demand-side measures that contribute to more efficient energy useand improved use of existing infrastructure will also contribute to improved supply reliability.

The government remains strongly committed to reducing greenhouse gas emissions by promoting theuptake of renewable energy and increasing efficiency of energy use.

Water

Much has been achieved in recent years to improve water efficiency and conservation and management ofour water resources. South Australia leads the nation in stormwater capture and reuse, irrigation practices,rainwater tank ownership and wastewater recycling.

The government has progressed a number of water infrastructure projects to help secure South Australiaswater supply. Work is well advanced on the 100 gigalitre per annum Adelaide desalination plant, which is



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Overview


expected to produce first water by the end of 2010. A number of wastewater reuse projects have recentlybeen completed. J ointly with the Australian and local governments, the State Government is funding eightstormwater projects that will more than triple the states annual stormwater harvest from six billion to 20billion litres. South Australia also secured $610 million from the Australian Government for a 10- year

package of initiatives to reinvigorate and sustain the River Murray industries and communities.

A range of water saving measures has been introduced and, combined with permanent conservationmeasures, have been instrumental in encouraging water sensitive behaviours.

Our vision for the states water future is mapped out in Water for Good, which includes a range actions todiversify our water supplies to reduce reliance on rain dependent water sources, improve waterconservation and efficiency and modernise our water industry.

Sustainable management of our water resources will continue to be a high priority and the health of theRiver Murray will be improved. A plan for the sustainable management of the Murray-Darling Basin will be inplace in 2011 and until then South Australia will continue to secure contingency measures to safeguardwater available to the state.

Increased stormwater harvesting and wastewater recycling will provide additional water for non-drinkingpurposes.

Across the state, regional demand and supply statements will be developed to ensure a thoroughunderstanding of the state of local water resources and the demand for them.

Water sensitive urban design will be mandated through planning regulations for new residential andcommercial urban development, consistent with the 30-Year Plan for Greater Adelaide. Technologicaldevelopment will be encouraged, to deliver innovations in the management of water resources andinfrastructure and development of new supply options.

New legislation will be introduced to manage a more competitive, innovative and diverse water industry,with an independent regulator appointed to oversee pricing, licensing and consumer protection.

Natural Assets

Establishment of a new natural resources management framework has enabled a planned and coordinatedapproach to management and protection of the states natural assets to be put in place. Establishment offive biodiversity corridors and 19 marine parks is on track and a range of biodiversity recovery andrevegetation projects is being progressed. Work is also underway to improve management of the RiverMurray wetlands and floodplains, control flooding and dryland salinity in the Upper South East, restore andconserve the metropolitan coastline and to develop infrastructure to protect and showcase parks andreserves across the state.

It will be important to build on this significant progress through closer monitoring of our environment toimprove our base data needed for the long term planning to guide conservation and sustainable use of

natural assets across the state. Priorities include development of a climate change adaptation framework,continued implementation of Natural Resource Management Plans, development of management plans formarine and terrestrial parks, revegetation programs to achieve biodiversity outcomes, strategic firemanagement programs for bushfire prone areas and development of environmentally friendly infrastructureto support sustainable tourism.

Minerals and Energy Resources

Revitalisation of the minerals and energy resources industry is central to maintaining South Australiaseconomic prosperity. South Australia has a range of world-class long life minerals deposits. As a result ofthe State Governments Plan for Accelerating Exploration (PACE), and other initiatives to promote thestates prospectivity and stimulate exploration investment, South Australia has experienced a boom in

exploration activity. The government has also worked to facilitate the expansion of the world-class OlympicDam mine and the establishment of new mines. Since 2002, the number of mines in South Australia hasincreased from four to 12 and mineral production has trebled.


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Overview


The State Government has identified infrastructure as a key issue for the resources sector and has takensteps to identify and facilitate its infrastructure needs, including the formation of the Resources and EnergySector Infrastructure Council (RESIC). Through RESIC, the government is working with the industry to

determine the infrastructure requirements to support growth in the minerals and energy sector and greatereconomic opportunities for our regional communities. The government will continue to coordinateinfrastructure planning and facilitate the development of timely and cost effective investments in economicand social infrastructure needed to realise the significant growth potential of this sector.

Waste Management

Private investment in waste recycling infrastructure has increased significantly over the last five years,guided by South Australias state-wide waste strategy and assisted by State Government grants. Thismeans that Adelaide is now serviced by a range of resource recovery and integrated waste managementfacilities. All metropolitan councils have committed to or implemented comprehensive kerbside collectionsystems.

Between 2003-04 and 2008-09 South Australia reduced waste to landfill by 14.5 per cent. In 2008-09 over70 per cent of our total recyclable waste was recycled, making South Australia amongst the best recyclersin Australia.

The government has also continued to provide financial support for the establishment of regional transferstations and processing facilities to reduce the amount of waste going to landfill in country areas.

Renewal of the state waste strategy in 2010-11 will provide impetus to further increase the states resourcerecovery and recycling levels. Priorities include promotion of regionally based government-industrypartnerships for the development and use of waste facilities, increased efficiencies in recycling andreprocessing and the maintenance of an appropriate range of high-quality facilities for recycling, treatmentand disposal of hazardous waste.

Regional Overview

Regional South Australia continues to change and evolve. While overall population numbers have remainedrelatively stable, the last decade has seen significant changes in where people choose to live, driven byindustry restructuring and lifestyle changes. These changes can have significant local impacts on thedemand for infrastructure and services.

The South Australian Government is committed to ongoing infrastructure investment in regional SouthAustralia through its state-wide investing program, including upgrades to hospitals, schools and majorroads. Much of the governments recent investment in metropolitan infrastructure will ensure that Adelaidecan serve as a hub to support industry and employment and the delivery of services to communitiesthroughout the state.

This discussion paper includes a brief overview of the infrastructure challenges and opportunities acrossSouth Australias non-metropolitan regions. It provides an update on the immediate and longer term issuesand priorities identified in the 2005 Strategic Infrastructure Plan, drawing on research and extensive localcommunity consultation undertaken to prepare the regional volumes of the Planning Strategy.


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Introduction

Why Update the Plan

First released in 2005, the Strategic Infrastructure Plan for South Australia (SIPSA) provides a five-to-tenyear framework to guide the development of more efficient, competitive and sustainable infrastructure,supporting achievement of the objectives ofSouth Australias Strategic Plan.

The states long term priorities identified in the Strategic Infrastructure Plan for South Australia are to investin economic and social infrastructure to provide additional capacity to match demands, manage and makeefficient use of our existing infrastructure assets and promote innovative and sustainable infrastructuresolutions, including measures to manage demand.

Over the last five years South Australia has experienced steady economic growth and advanced towards anumber ofSouth Australias Strategic Plan targets, supported by significant progress in implementing thestates infrastructure plan.

More than 80 per cent of the priority projects presented in the 2005 infrastructure plan have been completedor are underway. The South Australian Governments infrastructure spending is at a record high with $11.4billion committed over four years. The State Government has also progressed a range of regulatory and

institutional reforms to enhance infrastructure planning, strengthen management of public infrastructureconstruction, reduce red tape impacting on private sector investment and promote more efficient use ofexisting infrastructure.

Public and private infrastructure investment has grown as a proportion of total state economic activity.Engineering construction activity has risen to 4.64 per cent of Gross State Product in 2008-09, compared to2.52 per cent in 2005-06. Over the same period, non-residential building activity also grew from 1.93 percent to 2.32 per cent of Gross State Product.

The challenges and opportunities which the 2005 plan was designed to address have changed. Followingthe election of the new Australian Government in 2007, a new national approach to infrastructure planningand investment has been developed, aimed at building productive capacity, improving living standards,reducing social disadvantage and achieving sustainable environmental outcomes.



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As the Australian economy recovers from the global financial crisis, we face some significant new andemerging challenges. Much higher than previously forecast growth in population is expected and SouthAustralias population is ageing faster than other states. The re-emergence of China and India will increaseglobal demand for minerals, creating opportunities for growth and development of the states minerals and

resources sector. Adaptation and mitigation responses to climate change will affect the pattern of land andresource use and industry development. These trends will have implications for the structure of theeconomy, geographical distribution of population and employment and the way in which governmentservices are delivered.

Regular reviews of infrastructure are required to keep pace with such trends, maintain alignment with stateand national policy settings and ensure that accurate judgements are made regarding priorities to meetchanging business and community needs. This priority setting will be important in guiding governmentinfrastructure spending at more sustainable levels in the long term, down from the recent record high levelsduring the global financial crisis.

The South Australian Government has released the 30-Year Plan for Greater Adelaide to tackle thesechallenges and guide where people will live, how we manage land use for population and economic growthand how we provide opportunities for employment, while conserving our environment. Together with the

regional volumes of the planning strategy, it will inform infrastructure priorities and government serviceplanning.

Recognising the importance of integrating land use and infrastructure planning, a review of stateinfrastructure priorities is needed to align with the new South Australian Planning Strategy and to provideup-to-date guidance and broad direction to public and private infrastructure providers.

The South Australian Government has prepared this discussion paper as the first step towards producing anew edition of the plan to guide infrastructure decision-making in South Australia over the next 10 to 15years and beyond.

This paper discusses progress made in developing infrastructure across South Australia since 2005. It alsopresents an update on challenges and opportunities for the 14 infrastructure sectors covered in the 2005

plan, as well as the long term strategic priorities to guide infrastructure development over the next 10 to 15years and beyond.

Why Infrastructure is Important

Infrastructure - whether transport, energy, communications, hospitals, schools or housing - is fundamentalto sustain business activity, jobs and daily living. It provides the platform that underpins our economicprosperity, social inclusion and environmental sustainability. It is essential for driving sustainable economicgrowth and development and lifting the quality of life of current and future generations of South Australians.It is critical to lifting the productive capacity and global competitiveness of our industries and provides thefoundation for delivery of vital community services such as education and health care in urban and regionalareas of the state.

While infrastructure spending has risen, further investment - supported by institutional and regulatoryreforms - is needed to drive productivity growth and increases in living standards.

Infrastructure Australia has identified the key nation-wide and location specific infrastructure challenges weface and themes to steer a course to find solutions to the current and emerging gaps and deficiencies in ournations infrastructure.

This discussion paper aligns with the national strategic priorities identified by Infrastructure Australia andaims to identify and address the emerging gaps in South Australia. By doing so, it provides directions forbuilding new infrastructure, making better use of existing infrastructure and creating the right businessenvironment to promote private investment in infrastructure. This is critical to expand employmentopportunities, enhance the liveability of our cities and regions and protect our natural environment.


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Introduction


Planning and Delivery Framework - Overview

A five-step Planning and Delivery Framework guides the development and delivery of all initiatives in SouthAustralia, including infrastructure initiatives, from concept to delivery. The five steps shown in the figure

below are:

Step 1 - strategic analysis, and identification of problems and needs

Step 2 - development and assessment of solution options (outline business case)

Step 3 - detailed appraisal of preferred option (full business case)

Step 4 - decision on level and method of funding

Step 5 - delivery and post-implementation review.

The strategic analysis (Step 1) which underpins land use and infrastructure planning and investment inSouth Australia is guided by a hierarchy of three overarching and forward looking plans: - South AustraliasStrategic Plan(SASP)1,the South AustralianPlanning Strategy and the Strategic Infrastructure Plan forSouth Australia (SIPSA). These plans guide planning at the sectoral level by a range of public and private

infrastructure providers.

South Australias Strategic Plan was first released in 2004 and will be updated (for the second time) during2010-11. The South Australian Planning Strategy is reviewed every five years. A new metropolitan volumeof the planning strategy (30-Year Plan for Greater Adelaide) has been released and preparation of newvolumes of the planning strategy for all other South Australian regions is underway2.

The five-step framework requires that all state public sector initiatives undergo a full assessment of options(Step 2 ), and appraisal and identification of a preferred solution (Step 3), before consideration by Cabinetto determine whether an initiative should proceed and possible funding methods (Step 4).

Following the funding decision, effective management of the approvals and construction phase of initiativesis critical to ensuring delivery on time and within budget, for both private and public investments (Step 5).

The South Australian Government has recently strengthened and formalised links between SouthAustralias Strategic Plan and strategic land use and state and local government infrastructure planning andinvestment. It has done this through:

establishment of a new lead agency for land use planning and development matters, theDepartment of Planning and Local Government (DPLG), to work closely with the lead infrastructureagency, the Department for Transport, Energy and Infrastructure (DTEI)

creation of the Government Planning and Coordination Committee, chaired by DPLG and reportingto the Major Proposals Review Committee of Cabinet

a Coordinator-General for streamlining and coordinating delivery of major infrastructure investmentprojects.

1South Australias Strategic Plan: http://www.stateplan.sa.gov/index.php

230-Year Plan for Greater Adelaide: http://www.dplg.sa.gov.au/plan4adelaide/index.cfmand regional volumes of the South

Australian Planning Strategy:http://www.planning.sa.gov.au/index.cfm?objectid=AE5F47E6-F203-0D46-AF7A8CEB4AD10B0A
http://www.stateplan.sa.gov/index.phphttp://www.dplg.sa.gov.au/plan4adelaide/index.cfmhttp://www.planning.sa.gov.au/index.cfm?objectid=AE5F47E6-F203-0D46-AF7A8CEB4AD10B0Ahttp://www.planning.sa.gov.au/index.cfm?objectid=AE5F47E6-F203-0D46-AF7A8CEB4AD10B0Ahttp://www.dplg.sa.gov.au/plan4adelaide/index.cfmhttp://www.stateplan.sa.gov/index.php


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South Australias Five-Step Planning and Delivery Framework


SA Planning Strategy

Greater AdelaideEyre and Western

Far NorthLimestone Coast

Murray and MalleeYorke and Mid North

Kangaroo Island

State-wide Sector Plans and Strategies

Strategic InfrastructurePlan for SA

South Australias Strategic Plan

BusinessandCommunitInut

NationalS

trate

icPriorities

Structure Plans forstate - significant

areas

Local GovernmentDevelopment Plans

Integrated statutoryapproval process

Identification and strategicappraisal of initiatives

Step 1 - Strategic analysis andidentificationof roblems and needs

Step 2Develop & assess options

(outline business case)

Step 3Appraisal of preferred

option (full business case)

Step 4Level and method of

funding

Step 5Delivery and post-

implementation review


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Introduction


South Australias Strategic Plan

South Australias Strategic Plan (SASP) is a commitment to making this state the best it can be -prosperous, environmentally rich, culturally stimulating, offering its citizens every opportunity to live well and

succeed. It presents South Australias aspirations for where we want to be as a state in 2014.

Initially released in 2004, and updated in 2007, the plan contains 98 specific targets grouped under thefollowing six interrelated objectives:

1 Growing prosperity2 Improving wellbeing3 Attaining sustainability4 Fostering creativity and innovation5 Building communities6 Expanding opportunity.

Lead responsibility for each of the targets has been allocated to a specific state agency.

South Australias Strategic Plan underpins the 30-Year Plan for Greater Adelaide and the PlanningStrategies for the rest of the state. It also provides a key reference point for considering long terminfrastructure priorities for the state.

A process is underway to regionalise South Australias Strategic Plan so as to enable local government andcommunity stakeholders to identify priority targets in South Australias regions.

An update of the plan will take place in 2010-11.

South Australian Planning Strategy

The South AustralianPlanning Strategy guides land use and physical development across the state and

provides a spatial expression ofSouth Australias Strategic Plan targets. It identifies where futureresidential, industrial and commercial development will and will not occur, and informs infrastructuredevelopment by all levels of government and the private sector required to position the state to effectivelyrespond to population and economic growth and change.

The State Governments new30-YearPlan for Greater Adelaide, together with the regional volumes of theSouth Australian Planning Strategy, has guided the preparation of this discussion paper on the StrategicInfrastructure Plan for South Australia.

30-Year Plan for Greater Adelaide

The three interlocking objectives of the new30-Year Plan for Greater Adelaide are:

maintaining and improving liveability increasing competitiveness

driving sustainability, environmental protection and resilience to climate change.

The principles of the plan provide important guidance for infrastructure planning, in particular the need forurban development to be compact and transit focused, carbon-efficient and climate change resilient,promote accessibility, social inclusion and health and safety, and create the conditions to enable strongeconomic growth.


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Introduction

Key themes of the 30-YearPlan for Greater Adelaide of particular importance are:

implement an integrated approach to land use and infrastructure planning

focus on better use of major transit corridors, building on planned investment in public transport

infrastructure guide development of structure and precinct plans for key transport corridors, transit oriented

developments, major centres and new growth areas identify existing and planned strategic infrastructure assets and corridors and ensure land use

policies promote better use of these assets progress infrastructure planning and delivery to support the expansion of strategic regional

industries (e.g. mining) support timely provision of social infrastructure (e.g. health and education) in growth areas and

centres ensure broadband infrastructure and the governments information and communications

technology (ICT) network supports delivery of government services, particularly in identifiedmajor metropolitan and country centres

develop a network of greenways incorporating cycle ways and walkways to provide high quality

open space, promote safe walking and cycling and reduce reliance on motor vehicles promote investment to support a secure and reliable energy supply including the development

and use of renewable energy and green technologies establish a sequenced land release program that supports industrial and residential development move from the existing 50:50 ratio of infill development to fringe development to a ratio of about

70:30 ensure implementation of the plan through revised governance arrangements that will monitor

progress and involve a whole of government approach to the execution of policies and theachievement of targets.

The plan will be updated annually in order to enhance its flexibility and will encourage the use of triggerpoints to instigate change to policy settings.

Planning Strategy Volumes for Regional South Australia

Regional volumes of the planning strategy will be prepared for each of the State Government administrativeregions. The regional volumes were known as Regional Land Use Frameworks when first commenced butare now regional volumes of the planning strategy and guide future land use and development.

The volumes are being developed and published incrementally to ensure they reflect contemporary issues.

Structure plans are also being developed for major regional cities.



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Introduction


The Planning Strategy process for regional South Australia was developed through a pilot process with theYorke Peninsula region (before South Australian Government regions were established). On 13 December2007 the Yorke Peninsula Regional Land Use Framework was released and, via Notice in the Governmentgazette, formally adopted as a new volume within the South Australian Planning Strategy.

Volumes of the Planning Strategy for the Far North region and Yorke Peninsula have been finalised andgazetted. Volumes for the Mid North, Limestone Coast and Kangaroo Island have undergone publicconsultation and are being finalised for adoption by the government.

The draft Planning Strategy volume for Murray and Mallee Region has been released and Eyre andWestern Region will soon be released for public consultation.

Infrastructure Priority Setting

The new edition of the plan will clearly identify priorities for private and public investment and policy effort bygovernments to address nationally significant policy issues. It will set out infrastructure priorities from awhole-of-state perspective and specific initiatives, with associated timeframes, to address infrastructureneeds. These initiatives will include new investment opportunities, as well as options for deferring costlycapital expenditure by better managing demand. Innovative ways to make better, more efficient use ofexisting infrastructure assets through the smart application of communications technologies will also beexplored.

Initiatives within each of the 15 infrastructure sectors will be assessed for inclusion in the plan depending totheir state-wide significance and assigned a ranking of 1, 2 or 3. Rankings will be determined by consideringwhether the initiative:

makes a positive and sustainable contribution toward the achievement of one or more targets inthe South Australias Strategic Plan

directly addresses immediate or emerging infrastructure-related constraints to sustainabledevelopment and improved living standards for the state

improves performance of the states infrastructure asset base or facilitates more efficient use ofexisting infrastructure

is consistent with the South AustralianPlanning Strategy aligns with the strategic priorities in this discussion paper.

Proposals that successfully pass this initial strategic appraisal process will be included in the new edition ofthe plan. Priority initiatives may range in status from construction ready to initial concepts requiringfeasibility studies or cost benefit analyses (steps 2 and 3) which may change their ranking. Fully developedinitiatives will then compete for available private or public funding (step 4).Required timing of initiatives will be presented in five year timeframes of 2011-15, 2016-20 and 2020 andbeyond. Along with the rankings and timeframes, a sphere of government or the private sector will beidentified as having lead responsibility for further development of each infrastructure initiative.

Integrated Assessment and Approvals Processes

South Australia offers an integrated and streamlined assessment and approvals process for majorinfrastructure developments as part of the delivery process (step 5).

Infrastructure developments are either exempt fromDevelopment Act 1993 approvals or are subject to theCrown Development provisions set out in section 49 of the Act. No local government approvals are requiredfor major infrastructure developments.

Certain types of infrastructure development - including road projects undertaken by the Crown or councils,certain railway activities, tramways on public roads, most pipelines and most powerlines - are exempt fromapprovals under the Development Act 1993. The majority of exempt investment projects are managed byDTEI with an environmental impact statement incorporating all necessary environmental and cultural

heritage approvals according to statutory timeframes.


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Section 49 also makes provision for the Crown processes to apply to development of public infrastructure byprivate providers if the proposal is sponsored by a Crown agency. The Office for Major Projects andInfrastructure (OMPI) undertakes this role.

Major infrastructure developments can also be assessed under section 46 of the Act. Under section 46, therelevant Minister may declare a development to be a Major Development if it is of economic, social orenvironmental significance and require the development to be subject to a comprehensive EnvironmentalImpact Assessment process.

The section 46 process encompasses development assessment, environmental assessment and Schedule 8approvals. Development regulations specify statutory timeframes for completion of key stages of the section46 process. A bilateral agreement is also in place that accredits the section 46 assessment process for thepurposes of the Environment Protection and Biodiversity Conservation (EPBC) Act.

Government case managers also work closely with private sector proponents to facilitate approvals fordelivery of infrastructure developments, including land use rezoning where required, and other approvals notprovided for under the Development Act, including native vegetation, Aboriginal heritage and the EPBC Act.

Working wi th other Governments and the Private Sector

The private sector plays a significant role in planning and investing in infrastructure in South Australia dueto high levels of private ownership of infrastructure. While the State Government is a direct provider of road,urban public transport and water infrastructure its role in other areas of economic infrastructure, such asenergy, is more one of regulatory oversight, policy influence and facilitation of private sector investment.

The government continues to manage the infrastructure to support delivery of a range of social services inhealth, education, law and order and housing and community services.

While it is not always possible for private sector interests to make their strategic plans public (for reasons ofcommercial confidentiality) this discussion paper provides a basis for major private sector infrastructureproviders and users to provide input on their potential areas of focus for the future, whether it be views onemerging infrastructure gaps or deficiencies, or new infrastructure investment plans. This provides a meansfor the government to provide broad direction and coordination with private sector infrastructure planningand investment.



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The South Australian Government similarly works in partnership with the Australian and local governmentson a range of infrastructure priorities. It will use this discussion paper as a basis for consultation to achievegreater integration in planning and alignment of priorities across the three spheres of government for the 14infrastructure sectors.

Regional Forums

This paper focuses on infrastructure needs and priorities of state-wide significance. Infrastructure issuesand priorities at the local level will be identified through regional forums in each State GovernmentAdministrative Region. These forums will be guided by the volumes of the South Australian PlanningStrategy comprising:

The 30-YearPlan for Greater AdelaideThe Planning Strategy for Murray and Mallee RegionThe Planning Strategy for Kangaroo IslandThe Planning Strategy for Eyre and Western RegionThe Planning Strategy for Limestone Coast RegionThe Planning Strategy for Yorke and Mid-NorthThe Planning Strategy for Far North Region.

Regional Forums will also facilitate an agreed approach between local and state governments on how theSouth Australian Planning Strategys population, housing and employment targets should be distributedacross regions. Regional Forums will comprise relevant state government agencies, regional groupings ofcouncils and Regional Development Australia.

The recently established Government Planning and Coordination Committee (GPCC) will be the keymechanism to achieve whole-of-government coordination of infrastructure planning and investment in SouthAustralias regions. It will have a particular focus on state significant and new growth areas and will overseeand approve the structure planning priorities and address critical infrastructure, servicing and land useissues associated with development of these areas.

Consultation

The State Government seeks information and views from the South Australian community on theinfrastructure issues they regard as significant and proposals for innovative solutions that will contribute tothe development of this state.

This discussion paper has been prepared with input from State Government agencies. It presents the keychallenges and opportunities to be addressed through integrated land use and infrastructure planning andthe long term strategic directions which the government believes should guide the prioritisation ofinfrastructure initiatives in South Australia over the next 10 to 15 years and beyond.

The paper provides a basis for consultation with infrastructure providers and users, industry, local councilsand communities.

Comments on the discussion paper are welcome during the consultation period. Copies of the discussionpaper can be downloaded from the website www.dtei.sa.gov.au. Submissions on the discussion paper canbe made until 31 December 2010 at the following email address: [email protected].

Proposals for priority initiatives to be included in the new infrastructure plan are also invited. To enableassessment against the ranking criteria discussed earlier, a brief description of the proposed initiative, theproblem or need it addresses, and supporting analysis should be sent to the above email address using thetemplate for submission of proposals that can downloaded from the website www.dtei.sa.gov.au.

The regional forums will be an important consultation vehicle for identifying major infrastructure prioritiesand integrating land use and infrastructure planning at the regional level.

Feedback received during the consultation period will be considered in preparing the new infrastructure planfor South Australia.
http://www.dtei.sa.gov.au/mailto:[email protected]://www.dtei.sa.gov.au/http://www.dtei.sa.gov.au/mailto:[email protected]://www.dtei.sa.gov.au/


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Introduction

The Strategic Infrastructure Plan for South Australia is a plan for the whole of government and for the wholeof South Australia to guide investment in new infrastructure and the use of existing infrastructure. Theupdate of the plan will enable business and other levels of government to be aware of the statesinfrastructure priorities over the next 10 to 15 years and beyond and is intended to support a partnership ofall the players, which is central to its successful delivery.

Since it was released in April 2005, the plan has facilitated a boom in infrastructure investment, with morethan 80 per cent of the listed projects either completed or underway. South Australias economy has grownand diversified through development of our wealth in minerals and energy and success in securing majordefence contracts. To support this expanding industry base and our growing population a number oftransport and urban developments, health, education, water and energy infrastructure projects areunderway. The 2009-10 edition of the South Australian Governments Major Developments Directorydemonstrates that South Australia continues to be a highly competitive place to do business, with a record$71.5 billion worth of major developments currently underway or in the pipeline across the state.

So far, the state has withstood the worst of the global financial crisis. The State Government, supported byadvice from the Economic Development Board, has maintained the view that this has been a critical time toinvest in public infrastructure, both to generate employment during the downturn and to build productivecapacity for the future upswing in economic activity. Despite budget pressures created by the economic

downturn, the government has remained committed to investing in infrastructure. In the 2009-10 budget theSouth Australian Government announced a record high level of infrastructure investment of $11.4 billionover four years. This includes Australian Government funding of $646 million for public transportinfrastructure projects to boost the State Governments $2 billion decade long program to modernise andextend the metropolitan public transport system announced in the 2008-09 budget.

The successful delivery of this unprecedented level of public infrastructure expenditure will be a challenge.For this reason the government has established effective implementation arrangements, including clearaccountabilities across state government, coordination with other spheres of government and the privatesector and streamlined project approvals processes.



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Robust approaches to identifying infrastructure needs and determining solutions across South Australia arebeing employed, as are processes to fully engage the community in priority setting. Coordinated planningby public and private infrastructure providers, integrated with land use planning, is also important to ensurethat we make efficient and smarter use of existing infrastructure and deliver timely and well located

additional infrastructure capacity. The government also aims to ensure that regulatory arrangements and itsown procurement and other business processes continue to deliver intended economic, social andenvironmental outcomes while minimising any associated cost or red tape burden on business.

The Role of the State Government

Changes to the way government delivers and manages its infrastructure since 2005 have produced somesignificant achievements. South Australia was successful in securing Australian Government funding for anumber of major infrastructure projects:

expansion of the Adelaide desalination plant ($228 million)

acceleration of the upgrade and electrification of the Gawler rail line ($294 million)

extension of the rail line to Seaford ($291 million) O-Bahn route extension ($61 million) construction of the Health and Medical Research Institute adjacent the new Royal Adelaide

Hospital ($200 million).

A key factor contributing to this success was South Australias integration of strategic infrastructure andland use planning and disciplined approach to implementation of the infrastructure plan.

The government has also managed to rapidly roll out the social housing, transport and educationinfrastructure elements of the Australian Governments $42 billion Nation Building Economic Stimulus Plan,guided by the new Office of the Coordinator-General. South Australia was the first state to amenddevelopment regulations to ensure projects funded under the program got started as quickly as possible.

The existence of good asset data in the across government Strategic Asset Management InformationSystem (SAMIS) assisted in the rapid planning of school projects in this stimulus plan.

The state capital works program has been used, within a value for money approach, to provide work forlocal businesses and increased employment opportunities for disadvantaged members of society. Thecontract for the construction of the Northern Expressway is the first in South Australia to include arequirement for 10 per cent employment of local youth and Aboriginal people. The Southern Expresswayduplication is expected to create about 1 500 new jobs, with half of these to be filled by southern suburbsresidents, while 200 positions will be filled by young people and disadvantaged groups.

In response to the strategic priorities listed in the 2005 plan, the government has taken a number of steps toimprove public sector structures and processes for infrastructure planning and delivery:

creation of the Department for Transport, Energy and Infrastructure (DTEI) under a singleminister with lead responsibility for infrastructure matters

streamlining the delivery of major projects through the operation of the Office of Major Projectsand Infrastructure (OMPI) within DTEI and the recent establishment of a Coordinator-General review and reform of the planning system including the establishment of a new lead agency for

land use planning and development matters, the Department of Planning and Local Government establishment of the Government Planning and Coordination Committee to oversee the

development of structure plans for areas identified by the government as state significant areas streamlining processes for identification, sharing and disposal of surplus government property to

facilitate rejuvenation of the public sector asset base initiatives to build public sector capabilities in business case preparation, project management,

procurement, contract and asset management.


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The release of the 30-Year Plan for Greater Adelaide marks a major step forward in integrating land useplanning with infrastructure planning to provide clearer direction for state and local governmentinfrastructure planning and investment, consistent with the states long term strategic objectives. This newapproach will require close coordination with local government and private infrastructure providers inplanning and scheduling developments. It offers a basis for achieving better synchronised and timelyinfrastructure development in both established areas and new growth areas and for providing greatercertainty for investment and job creation. The greater alignment of planning and coordination inimplementation will be achieved through the strengthened governance and implementation arrangements

presented in the 30-YearPlan for Greater Adelaide and outlined earlier.

The quality of the built environment is critical to long-term liveability, prosperity and sustainability. Thegovernment has established an Integrated Design Commission to provide advice and encourage integrationof best practice in design of publicly funded infrastructure, buildings, spaces and cultural projects.

Strategic Priori ties

Implement the new approach to land use and infrastructure planning, consistent with the 30-YearPlan for Greater Adelaide.

Position South Australia as a best practice leader in integrated urban design.

Working with the Private Sector

Microeconomic reforms over the past decade and private sector provision of infrastructure in some areasmeans that the government is no longer the main investment decision maker in some sectors. Neverthelessthe government has a keen interest in ensuring that private infrastructure providers deliver an adequatelevel of service to complement its economic, social and environmental development aspirations for thestate.

The government has demonstrated its commitment to developing and maintaining a competitive businessclimate. In J uly 2008, an independent audit report by Deloitte Australia showed that over $170 million per

annum was being saved by businesses through the governments red tape reduction program. Thisprogram continues with a new target of a further $150 million reduction in red tape over three years to April2012.



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According to KPMGs Competitive Alternatives Study 2008, Adelaide is Australias most cost-competitivecity for business, and the third most cost-competitive in the world in its population bracket. Implementationof the integrated approach to land use and infrastructure planning mapped out in the 30-YearPlan forGreater Adelaide will provide more transparent and efficient processes and greater certainty for private

investment.

According to the Property Councils 2010 review, South Australia has made the most advances inimplementing nationally agreed best practice principles for planning and development assessment systems.

The government now considers a full range of public and private sector delivery options for its infrastructureprojects with a view to optimising private sector involvement whilst maintaining the highest standards ofintegrity and meeting appropriate probity requirements. The emphasis is on removing barriers to privatesector investment and the proper structuring of projects to ensure best practice outcomes for the state.Processes aim to minimise transaction costs for the private sector, consistent with the need for attention tobe given to requirements for competition, regulation or service standards.

Competitive South Australian businesses sometimes find it hard to attract the attention of projectdevelopers, who often have supply chains firmly established. As a result of these concerns, the South

Australian Government released an Industry Participation Policy in 2005. The policy seeks to maximiseopportunities for local participation in major infrastructure and construction projects while observing SouthAustralias international and national trade obligations. It reflects the governments commitment to localindustry being given a full, fair and reasonable opportunity to tender for major project work.

The South Australian Government also seeks to promote local industry capability and provide opportunitiesfor participation in major projects by funding the Industry Capability Network South Australia (ICNSA).ICNSA provides purchasers with a free sourcing service to identify Australian suppliers capable of supplyingthose items that would otherwise be imported. ICNSA responds to enquiries from buyers, identifies possiblesuppliers and service organisations, evaluates their capacity to meet the requirements, and nominatessuitable, competitive local suppliers to the purchaser.

The government has committed to introduce a new industry participation policy to give local industryenhanced opportunities to participate in the record $71.5 billion worth of major developments eitherunderway or in the pipeline in South Australia. The new policy minimises red tape for smaller projects whileintroducing greater accountability for large and significant state projects. The government will also boost thecapacity of the ICNSA to work with businesses in implementing this new policy. ICNSA will be betterresourced to identify and promote local capacity and assist project proponents to formulate local industryparticipation plans, matching local suppliers to project needs.

In response to the strategic priorities listed in the 2005 plan the government has undertaken a number ofimprovements to facilitate working with the private sector, including:

effective use of public private partnerships (PPP) to deliver regional police and courts facilities,six new schools and the new Royal Adelaide Hospital

increased use of innovative and flexible procurement methods including alliance contracting,design and construct, early contractor involvement and public private partnerships in the

governments major infrastructure procurement programs delivery of private project and case management services through OMPI, the Department for

Trade and Economic Development (DTED) and the Department of Primary Industries andResources for SA (PIRSA) to facilitate major private investment projects

the establishment of the Resources and Energy Sector Infrastructure Council (RESIC) to providea forum for the government and industry to consider strategic issues related to growth of thesector with a particular focus on infrastructure

instigation of annual major projects and infrastructure conferences and special briefings toindustry to keep industry informed of the governments ongoing infrastructure plans anddevelopments.


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Continue to reform public procurement processes to enable more innovative approaches todelivery and funding of infrastructure investment while maintaining high standards of probity.

Ensure that government procurement processes maximise opportunities for competitive localindustry to participate in infrastructure projects.

The National Reform Agenda

The South Australian Government recognises the national character of infrastructure markets, the benefitsof greater jurisdictional alignment around national goals and priorities and the efficiency gains from moreconsistent national approaches. At a national level, South Australia has actively worked with other

jurisdictions to contribute to the development and implementation of reforms to promote more efficientinvestment in and use of infrastructure.

These reforms aim to establish a simpler, more consistent national approach to economic regulation ofinfrastructure which strikes the right balance between promoting competition and access to existing

infrastructure and encouraging investment in new infrastructure. Priority has also been given to reducing thetransactions costs, time and uncertainties sometimes associated with doing business with government. Keyreforms include:

implementation of the Council of Australian Government (COAG) Competition and InfrastructureReform Agreement (CIRA) to establish a simpler and consistent national approach to economicregulation of significant port and rail infrastructure, through reform of South Australias third partyaccess regimes

progress in addressing national regulatory hot spots under the auspices of COAG, includingdevelopment and environmental assessment and approvals, and other action to progress theseamless national economy agenda

establishment of a Coordinator-General to manage the rapid roll-out of school, housing andtransport construction projects funded by the Australian Governments Nation Building EconomicStimulus Plan

development of national best practice guidelines to facilitate a more consistent and efficientapproach to the use of PPPs by governments



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Delivering the Plan


assessment of approvals processes for major infrastructure projects leading to identification ofopportunities to streamline and integrate processes across the three spheres of government

development of national criteria for long term capital city strategic planning systems to securebetter outcomes from investments in infrastructure.

Consistent with nationally agreed objectives and strategies, the government will also develop andimplement policies to ensure that, within a value for money approach, people from disadvantaged groupsare afforded opportunities to participate in major infrastructure construction projects.

Fulfilling an election commitment, the government will introduce a new workforce participation targetrequiring that 15 per cent of workers on government construction and infrastructure contracts be trainees,apprentices, Aboriginal people and local people with barriers to employment. A target of 20 per centAboriginal people will be set for particular projects in Aboriginal communities. A new policy setting this 15per cent target will be finalised by the end of 2010.


Identify further opportunities to streamline assessment and approval processes to support thedelivery of innovative, fit-for-purpose infrastructure solutions.

Continue to harmonise procurement policies and processes and reduce transactions costs incurredby both governments and the private sector.

Ensure that government procurement processes include opportunities for people that currentlyexperience barriers to employment to be involved in infrastructure construction projects.

Work with other jurisdictions to develop a national best practice framework and to improve theevidence base for strategic city and national infrastructure planning.

Management of Government Assets

Optimisation of the whole-of-government asset base is providing better outcomes for the state thanoptimisation on an individual agency basis.

Traditionally, all three spheres of government have thought independently about their built assets consistentwith the historical division of responsibilities. However, significant progress has been made in recent timestowards the use of collaborative state-local government approaches to address a range of infrastructureissues. There is still potential for greater coordination and cooperation between the spheres, which willdeliver better service outcomes and value.

Decisions on retention or replacement versus disposal of assets must be considered in the same whole-of-government context required for decisions on new investments. The introduction of new guidelines for themanagement of government real property in 2006 improved mechanisms to review property holdings on a

whole-of-government basis as well as incentives for agencies to dispose of surplus assets, to enablerejuvenation of the public asset portfolio. This encourages better use of the built assets government retainsfor the long term but also enables well located surplus land to be released for development for muchneeded residential or industrial purposes to meet the demands of a growing economy.

The current State Government infrastructure development program includes the replacement orimprovement of a significant number of education and health assets across the state. The PPP program isenabling ageing, under-performing and difficult to maintain buildings to be replaced with new facilities thatwill improve the delivery of crucial public services in the areas of justice, education and health. The NationBuilding Economic Stimulus Plan has enabled further upgrading of schools and social housing.

The 30-YearPlan for Greater Adelaide aims to reduce the burden on the community of continuallyextending essential asset networks by creating transit oriented developments (TODs) along existingtransport corridors to better utilise the capacity of existing assets such as schools, roads, energy and water

networks.


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The adoption of proper asset management practices is critical to ensuring that the whole-of-life cost of thestates asset base on the community is minimised. This includes analysis of appropriate data to understandhow built assets perform over their design life to inform future decisions about maintenance, upgrade ordisposal.

The government has taken steps to improve the efficiency of energy and water use related to its builtassets. The State Governments well established Energy Efficiency Action Plan has now been matched at anational level with the COAG National Strategy on Energy Efficiency released in J uly 2009. This requires allgovernments to significantly improve the environmental performance of the buildings they own or occupy.

As climate change is manifest in increased incidence of heatwaves and storm events, the states extensiveasset portfolio must be adapted for the new environmental circumstances. Monitoring climate change trendsacross the state will enable this to be built into the states ongoing maintenance and investment program.

There is also a need to incorporate climate change adaptation and mitigation strategies into infrastructureplanning and construction.

Strategic Priority

Develop strategies to adapt public infrastructure to respond to the inevitable pressures from climatechange.

Critical Infrastructure Protection

The State Government has established a partnership with industry and other Australian governments toimplement nationally consistent arrangements for the protection and resilience of infrastructure in the faceof a range of natural and other hazards.

Owners and operators of critical infrastructure are expected to have robust risk management strategies inplace, to ensure adequate levels of asset protection, minimum points of failure, appropriate emergencyresponses and rapid recovery arrangements. Major interdependencies between items of criticalinfrastructure are better understood and taken into account in plans and redundancy arrangements. Strongcommunication links have been established to ensure timely warning, transfer of intelligence and

00 InfraPlan Discussion Paper

Documents

Transcript of 00 InfraPlan Discussion Paper