Healthy HeadWaters Application Guidelines€¦ · Web [email protected] Any concerns...

Healthy HeadWaters Water Use Efficiency infrastructure funding program

Round 12—April to June 2017Application guidelines

This publication has been compiled by the Healthy HeadWaters Water Use Efficiency project, Department of Natural Resources and Mines.

© State of Queensland, 2017.

The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence.

Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence terms.

You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication.

For more information on this licence, visit http://creativecommons.org/licenses/by/3.0/au/deed.en

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Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines

Contents

1 What is the HHWUE project................................................................................................................................ 1

2 Who is eligible..................................................................................................................................................... 2

3 How to apply........................................................................................................................................................ 8

3.1 Application planning..................................................................................................................................... 8

3.2 Completing the application form...................................................................................................................8

3.3 Submitting an application............................................................................................................................. 8

4 Assessment......................................................................................................................................................... 9

4.1 Criteria........................................................................................................................................................ 10

5 Application form................................................................................................................................................. 14

5.1 DNRM office use only................................................................................................................................. 14

5.2 Applicant information.................................................................................................................................. 14

5.3 Project summary......................................................................................................................................... 14

5.4 Proposed works.......................................................................................................................................... 14

5.5 Detailed water savings............................................................................................................................... 16

5.6 Water entitlements...................................................................................................................................... 16

5.7 Budget........................................................................................................................................................ 17

5.8 Feasibility certification................................................................................................................................ 19

5.9 Applicant/s declaration............................................................................................................................... 20

5.10 Registered water entitlement holder/s’ declaration.....................................................................................21

5.11 Registered land owner/s’ declaration..........................................................................................................22

6 Next steps.......................................................................................................................................................... 23

6.1 Contracts.................................................................................................................................................... 23

6.2 Water transfer requirements....................................................................................................................... 23

6.3 Reporting requirements.............................................................................................................................. 24

6.4 Evidence of expenditure requirements.......................................................................................................24

6.5 Payments................................................................................................................................................... 24

7 Terms and conditions........................................................................................................................................ 26

8 Contact information........................................................................................................................................... 30

8.1 Healthy HeadWaters Water Use Efficiency project team............................................................................30

8.2 Links........................................................................................................................................................... 30

9 Frequently asked questions............................................................................................................................... 31


1 What is the HHWUE projectThe Healthy HeadWaters Water Use Efficiency (HHWUE) project funds eligible Queensland Murray–Darling Basin (QMDB) irrigators to upgrade on-farm irrigation infrastructure.

These upgrades improve the efficiency and productivity of on-farm water use and management.

Up to 50 per cent of the water saved by the upgrade is retained by the irrigator, with the remainder transferred to the Australian Government for environmental use. At least 10 ML nominal volume must be transferred. Irrigators contribute at least 10 per cent of the cost, with cash, in-kind or additional water.

The HHWUE project is delivered by the Queensland Department of Natural Resources and Mines (DNRM), with funding from the Australian Government's Sustainable Rural Water Use and Infrastructure Program, as part of the implementation of the Murray–Darling Basin Plan in Queensland.

HHWUE 2010–17

Eleven funding rounds have been run since 2010.

More than 80 projects are currently underway, complete or in contract negotiation. These projects represent over:

46 GL of water savings 18 GL water savings retained by irrigators 28 GL water savings returned to the environment $130 million total project cost $110 million Australian Government funding to irrigators.

Approved projects

Examples of on-farm infrastructure applications previously approved for funding under the HHWUE project include:

upgrading surface irrigation through redesigning delivery and reconfiguring fields

installing or upgrading overhead irrigation (centre pivot or lateral move machines)

converting from surface irrigation to trickle or subsurface irrigation

converting to bankless channels or through-the-bank pipes

upgrading and reconfiguring storages and channels to minimise seepage and evaporation losses

lining existing storages to enable deep storage

replacing inefficient storages

converting to micro-jet irrigation.

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2 Who is eligibleApplicants, projects and activities meeting the following criteria are eligible to apply for funding under the HHWUE project. Irrigators considering an application should note that each funding round will focus on certain water products and locations.

2

Eligible applicants

able to oversee the project in accordancewith State and national laws and

standards (including health and safetyand any applicable building codes)

GST registered withvalid ABN or ACN

access to eligible tradeablewater entitlement (as owner, orwith the owner's permission)

access to eligible land(as owner, or with theowner's permission)

able to enter into a legalagreement with the

Queensland Government

Eligible projects

construct, upgrade orcommission on-farm

irrigation infrastructure

relate toprimary

production

be located onone irrigation

enterprise

contribute at least 10 per cent oftotal project cost in cash/in-kind

or additional water

involve land andwater in the same

eligible WaterResource Plan area

offer between 50and 100 per cent

(and at least 10 ML)of water savings

does not havethe agreement of all

land and waterowners

introduces irrigationinto a current dry-landonly farming enterprise

is solely for research anddevelopment, farming systems or theoperation, maintenance and repair of

new or existing infrastructure

relates to thedecommissioning of

infrastructure, unless thedecommissioning is needed

to achieve water savings

propose worksalready

existing orcommenced

propose works that aredetrimental to natural

resource conditions such asdeep drainage, water tables,

salinity, soil health and suitability

has no positivemanagement orbusiness benefit

proposes infrastructure thatrelies on more water to

operate than is available to theirrigator long-term

cannot describe positive netsocioeconomic impacts where the waterentitlement offered is located in a different WaterManagement Area to the land on which the works

are proposed


Water entitlements offered to the Australian Government must be:

able to be transferred permanently as an entitlement freed of special conditions and encumbrances

located in one of the following zones (see Figure 1 to Figure 4):

o Supplemented water

Lower Balonne: St George Water Supply Scheme (zones 1-4)

o Unsupplemented water

Lower Balonne: Lower Balonne Water Management Area (zones 1-10)

Condamine: Condamine and Balonne Water Management Area (zones 1-9) and Upper Condamine Water Management Area (zones 6-10 and 12-16)

Border Rivers: Border Rivers Water Management Area (Dumaresq, Macintyre and Barwon zones, or adjacent to the Macintyre or Dumaresq Rivers in the Border Rivers region of New South Wales), Upper Weir Water Management Area (class UW2A) and Lower Weir Water Management Area (class LW1)

Moonie: Moonie Water Management Area (zones A-D)

Warrego: Lower Warrego Water Management Area (zones A-D)2

o Overland flow

Lower Balonne: Lower Balonne Water Management Area (overland flow water).

2 Irrigators considering projects in this zone should contact the HHWUE project team for information. Not all entitlements in this zone contribute towards the bridging the gap target identified in the Basin Plan.

3

Soil testing and sitesurveying if directly

related to establishing orcommissioning the

on-farm infrastructure

Operational modelsand decision supporttools if directly related to

establishing orcommissioning the on-farminfrastructure (e.g. software)

Operational training ifdirectly related to establishing or

commissioning the on-farminfrastructure (e.g training staff inthe operation and maintenanceof overhead irrigation systems)

Commissioning test acommissioning test is arequirement for the final

project payment

Removal of minorinfrastructure and relocationof services if a necessary step in

the establishment and commissioningthe on-farm irrigation infrastructure(e.g. power line, to make way for a

lateral move run)

Project planning if directlyrelated to establishing andcommissioning the on-farm

infrastructure and has not receivedfunding through another HHWUEinfrastructure or technical advice

agreement

Eligible activities

capital items dedicated, specialised,integral and without substitute

Servicing own farming or earthmovingequipment Eligible costs of own machinery include

fuel (excluding any rebates), and an hourly ratecomparable to contracted machinery hire. Maintenance

repair costs are not eligible

Purchase of farming or earthmovingequipment The cost of hiring or runningmachinery to establish and commission the

on-farm infrastructure may be eligible. Purchaseof farm and earthmoving machinery

is not eligible

contribute directly toestablishing or commissioningthe water saving infrastructure


Figure 1: Condamine and Balonne eligible areas

4


Figure 2: Border Rivers eligible areas

5


ALTON

MOONIE

DAREEL

DAYMAR

WERANGA

FLINTON

THALLON

MUNGINDI

SOUTHWOOD

ST GEORGE

NINDIGULLY

Moo

nie Rive

r

Teel

baCre

ek

Won

gle

Won

gle

Cre

ek

Parri

eM

oolan

Cre

ek

HayesCreek

Moonie RiverWater Resource

Plan Area

Moonie RiverWater Resource Plan

Extent ofMap

Eligible zonesMoonie Water Management Area

Zones A-D

Reference

Figure 3: Moonie eligible areas

6


Figure 4: Warrego eligible areas

7


3 How to apply

3.1 Application planningParticipation in the HHWUE project is voluntary. Irrigators should obtain independent advice to make a well-informed decision about their application. Prior to applying, irrigators should:

contact DNRM for information to assist in proposal development if required. DNRM is able to provide some pre-lodgement information such as hydrological modelling data and water trading information

gain agreement from third parties that may have an interest in the application including land and water owners or mortgagors

seek appropriate advice from irrigation specialists, legal, business and financial advisors.

Contact details, some suggested sources of information and useful links are provided at section 8.

3.2 Completing the application formApplicants must answer the questions on the application form sufficiently to allow a full assessment of the application. Where the attachment symbol () appears on the form, applicants must attach requested documents to the completed application.

For more information on preparing a complete and competitive application, refer to the assessment criteria in Section 4.

3.3 Submitting an applicationRound 12 is open until 30 June 2017, with three application periods. Applications will open on the first business day of the month and will close at 5.00 pm AEST on the last business day (28 April, 31 May and 30 June 2017).

Completed application forms and attachments must be submitted by mail, email, fax or in person (see section 8 for contact details). DNRM will acknowledge applications within five business days, and promptly assess any complete and eligible applications.

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4 Assessment Assessment of applications is expected to be completed in the month following submission. Applications will be assessed for compliance with eligibility criteria and “value for money” to the Australian Government.

DNRM may request additional information or clarification from applicants in the first week of assessment. In this case, applicants will have two business days to provide additional information. Incomplete applications may, at DNRM’s discretion, be excluded from consideration.

The Australian Government makes the final decision on which applications are funded. DNRM then advises applicants directly of the results. Irrigators whose applications are not approved may request feedback (please refer to section 7).

Figure 5 shows the approximate timing in relation to an application period.

Figure 5: Approximate application period

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Request foradditional

information

last day ofmonth

Applicationperiod closeone monthApplication

period open

Governmentassessment -

from dateapplication

acknowledged

Governmentassessment

last

wee

kof

mon

th

Applicantsnotified

two businessdays to replytwo weeks

to o

ne w

eek

afte

r per

iod

clos

es


4.1 CriteriaDNRM will evaluate each application received by the closing date against the following criteria.

Figure 6 Assessment of HHWUE applications

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Application period

Works agreement negotiation

Results announcedFunding decision

Assessment

Additional information submitted if required

Governmentassessmentone week

Request foradditionalinformationtwo business days

Governmentassessmenttwo weeks

Applicantsnotifiedlast week ofmonth

Applicant advisedNo

Governance criteriaproject management plan and timeline includedproject budget accurate, eligible and supported by adequateevidenceproject budget mathematically correct and shows GST exclusiveamounts

Yes

Technical criteriawater savings estimated consistent throughout applicationfeasibility and savings verified by DNRM's independent assessor

Yes

Environmental criteriaproposed works are permissiblerequired evidence provided where works include reconfiguration ofirrigation areaproperty and proposed works maps attachedpre-works losses identifiedexplanation of how proposed works will mitigate lossesmethodology to estimate water savings included

Value for money criteriaproject competitive against assumed thresholdproject is feasible

YesYes

Compliance and eligibilitylodgement by closing date and timecompleteness of form and attachmentsapplicant holding valid ABN or ACNeligibility of water product offeredeligibility of landeligibility of proposed worksproperty name, address and locationapplicant, registered water allocation holder and land ownerdeclarations signedconsultant certification signed and evidence of qualificationsprovided


4.1.1 Environmental Applicants offering an eligible water product under the round are initially deemed to meet the environmental criterion.

For some entitlements, the Australian Government considers water specifications and conditions when assessing their environmental value. For instance, DNRM models the nominal volume of Lower Balonne, Upper and Lower Weir River entitlements to determine their relative environmental value.

All water recovered in the Queensland Murray-Darling Basin under the HHWUE project in excess of the local recovery required under the Basin Plan, goes towards Queensland’s contribution to the shared downstream reduction as part of the implementation of the Murray-Darling Basin Plan in Queensland.

4.1.2 Technical feasibility Certification of applications by a qualified irrigation professional is required to meet this criterion. The professional will need to certify the application technically feasible and properly costed. The professional must hold one of the following qualifications/certifications:

Registered Professional Engineer of Queensland (RPEQ)

Irrigation Australia Limited Certified Irrigation Designer (CID)

Irrigation Australia Limited Certified Irrigation Agronomist (CIAg).

Find a certifier

Applicants can refer to the Irrigation Australia and Board of Professional Engineers Queensland websites to find listings to qualified irrigation industry professionals:

RPEQ — Board of Professional Engineers Queensland (www.bpeq.qld.gov.au)

CID and CIAg — Irrigation Australia (www.irrigationaustralia.com.au/search-directory).

DNRM engages an independent technical assessor to review applications. Therefore, applications must contain enough information for the independent assessor to determine:

the methodologies and assumptions are reasonable and recognised

the application includes sufficient evidence of an accurate estimate of water losses and demonstrate that the infrastructure will achieve the water savings

sufficient evidence has been provided of the suitability and feasibility of the infrastructure

any known risk of failure of sub-optimal performance has been addressed

the applicant has the capacity to operate any new technology.

4.1.3 Project management 4.1.3.1 Timing governanceWorks must be commissioned and final payments claimed by no later than 31 March 2020. Applicants must be confident the project will be delivered within the timeframe and budget submitted with the application. The applicant must demonstrate this in the relevant sections of this application form.

4.1.3.2 BudgetBudgets should be feasible, realistic and properly costed. Each budget activity must be evidenced by a current written quotation, calculation with workings shown and evidence of unit pricing, or estimate (minor activities only). Even if items are to be “in-kind” or “stock on hand”, their value must still be evidenced in the same manner. It is the irrigator’s responsibility to ensure the quality and fit of all stock on hand, and that it will meet performance requirements of a commissioning test.

Budgets must exclude costs which are reimbursed under another government funding or rebate program. For instance, where an irrigator is registered for the Australian Government diesel fuel rebate, the costing for fuel must exclude this rebate amount.

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http://www.bpeq.qld.gov.au/


Projects which will undertake more than $4 million of work (see section 7) could be subject to additional workplace health and safety requirements. These requirements may substantially increase the cost of undertaking the project. Applicants are encouraged to discuss requirements with DNRM if they expect their projects to exceed this financial threshold.

4.1.3.3 Applicant contribution The irrigator must contribute a minimum 10 per cent of the total project cost. Irrigators can offer a mix of cash/in-kind and additional water in order to achieve the required minimum 10 per cent contribution. Some applicants have offered more than 10 per cent in order to improve the value for money competitiveness of their application (see section 4.1.4 for more information).

4.1.3.3.1 Cash or in-kindIrrigators must contribute directly to the project cost by providing their own cash or in-kind work.

4.1.3.3.2 Additional water Irrigators may offer additional water to the Australian Government in lieu of or in addition to cash or in-kind.

Irrigators nominate the value of their additional water offer. The volume of additional water will not be identified at the time of the application. If the application is approved, the Australian Government will advise its “market price” and calculate the volume of additional water required to cover the offer, using the following equation:

Additional water does not count toward the 50 per cent minimum share of water savings that the project must provide. Irrigators must still offer a minimum of 50 per cent of the water savings together with any additional water. The additional water offered must be of the same type as the water savings.

4.1.4 Value for money Applicants identify a “price per megalitre” which is calculated by dividing the funds requested ($) by the share of water savings offered (ML).

The price per megalitre should represent value for money to the Australian Government when compared to the market price of similar water (per megalitre of nominal volume). The market price is determined by its location, flow characteristics and ability to deliver outcomes to key environmental assets. Applicants must offer the Australian Government at least 50 per cent of water savings. Some applicants have offered more than 50 per cent of the water savings to improve the value for money of their application.

DNRM benchmarks value for money using the following equation:

The Australian Government decides to fund a project based on its assessment of value for money. The Australian Government also adds DNRM’s project administration costs to the tender price.

Figure 7 indicates the likelihood of funding as it may be influenced by the tendered price and the environmental benefit based on the location of the water offered. While the Australian Government may value certain water more highly, applications of poor value for money or environmental benefit have in the past been rejected.

DNRM cannot guarantee the Australian Government will approve any application.

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Volume of additional water tocover nominated irrigator

contribution (ML)=

Nominated irrigatorcontribution as water ($)

Market price ofthe water ($/ML)

Market price ofthe water ($/ML)=

Funds requested from the AustralianGovernment for the project ($)

Volume of water savings offered for transfer tothe Australian Government (ML NV

2)


Figure 7: Likelihood of funding

Water trading data

Value for money is one of the key assessment criteria for applications, a factor of water offered and funding requested.

The following websites provide a guide on recent market prices for water in the QMDB, which irrigators may find useful when preparing their applications.

Water markets and trading—www.business.qld.gov.au/industry/water/managing-accessing/markets-trading/market-information#permanent

Market price information for Murray–Darling Basin water entitlements—http://agriculture.gov.au/water/markets/market-price-information

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Modestlikelihoodof funding

Morelikelihoodof funding

Lowlikelihoodof funding

Modestlikelihoodof funding

High

High

Low

Low Environmentalbenefit

Valu

e fo

r mon

ey

http://www.business.qld.gov.au/industry/water/managing-accessing/markets-trading/market-information#permanent

http://www.business.qld.gov.au/industry/water/managing-accessing/markets-trading/market-information#permanent


5 Application form

5.1 DNRM office use onlyApplication numberDate received Time received

5.2 Applicant informationPlease provide contact details of irrigator applying to the HHWUE infrastructure funding program

Contact name

Business trading name

ABN/ACN

Phone Alternate phone

Fax Email

Mailing address

State Postcode

Country (if outside Australia)

5.3 Project summaryProject location

Property name

Address

Map coordinates of a point central to proposed works ˚ ' "S ˚ ' "E

Details of all land on which works will be undertaken

Lot Plan Registered owner/s

Please attach

Attach a locality map/s clearly identifying:

the applicant’s name

boundaries of the farming enterprise and proposed works

boundaries of the existing irrigated area

boundaries of the proposed irrigated area

New South Wales border if applicable.

Please copy this page and attach an additional sheet of land details if more space is required.

5.4 Proposed worksBriefly describe your proposed water use efficiency infrastructure

14


Please attach

Attach a detailed project plan labelled with the applicant’s name including:

technical evidence: a detailed description of the works including an:

o explanation of technical feasibility of the works

o description of the management benefits (e.g. improve rotations, introduce fertigation) and business benefits (e.g. decrease labour costs, increase production) to the enterprise

design specification: including the site of the proposed infrastructure, and quantities such as areas, volumes, lengths and numbers if available (this detail will be required prior to commencement of works)

work breakdown: list and description of key tasks and activities of the project

timeline: schedule of dates for the start and completion of all project activities and an explanation of how they will be met. Water must be transferred by 31 March 2019; works and final payment claims must be completed by 31 March 2020.

management plan: a description of how the project will be managed to ensure it is completed within budget and to meet all key objectives

site plan that is to scale, showing clearly the location of property boundaries, extent and type of works.

Applicants and consultants should note the description of the assessment criteria in section 4.1 as a guide to the level of detail required.

5.4.1 Unirrigated areaWill the works include the development of previously unirrigated area?

Yes (Please provide the information below) No (Please proceed to section 5.5)

Please attach

If the works include development of a previously unirrigated area, ensure the project plan includes additional information which:

includes a map identifying the areas to be added or relocated by reconfiguration

describes the impact of the project and the capacity of any new irrigation equipment proposed on the average area to be irrigated across the enterprise over the long term

demonstrates that the irrigation of new areas will not be to the detriment of natural resource conditions, addressing deep drainage, water tables, salinity, soil health and suitability (applicants may refer to myBMP, Waggamba land use manual, Queensland Agricultural Land Audit, etc)

demonstrates that any reconfigured irrigation infrastructure does not exceed the long-term availability of water to the irrigator.

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5.5 Detailed water savingsThe total water savings to be achieved by the project must be nominated. Sufficient supporting information including assumptions and calculations must be provided, so that an independent irrigation professional engaged by DNRM is able understand and verify to DNRM.

Please complete the following table.

Pre infrastructure (current) Post infrastructure (proposed)Component Annual losses (ML) Annual losses (ML) Annual savings (ML)

Totals

Please attach

Attach a description of how the water savings were calculated including:

identification of pre-infrastructure water loss volumes on an annual basis

explanation of how the works will mitigate the losses and what volume or proportion of the losses will be saved

explanation of methodology used to estimate losses, summary of assumptions and calculations for the identified loss volume(s) and savings references, including to studies or examples of industry best practice.

Applicants and consultants should note the description of the assessment criteria in section 4.1 as a guide to the level of detail required.

5.6 Water entitlements A: Volume of water savings to be transferred to Australian Government (must be a whole

number, at least 10 ML and equal to the total of the ML identified in the following table)

B: Percentage of water savings to be transferred (must be between 50 and 100 per cent of the total annual savings identified in section 5.5)

These details apply to entitlements, the subject of your offer, that will be dealt with when transferring a share of water savings to the Australian Government.

1. Registered water entitlement holder/s

Water entitlement number

Catchment

Nominal volume (ML)

ML offered to Australian Government

2. Registered water entitlement holder/s

Water entitlement number

Catchment

Nominal volume (ML)

ML offered to Australian Government

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Please attach

Please copy this page and attach an additional sheet of related water entitlements if more space is required.

5.6.1 Dislocated waterIf the water entitlement offered is in a different ‘water management area3’ to the land on which works are located, an additional confirmation of positive socio-economic benefit needs to be provided.

Is the water entitlement offered to the Australian Government located in a different water management area to the land on which works are proposed?

Yes (Please provide the information below) No (Please proceed to section 5.7)

Yes No

Will the work allow a more productive utilisation of the water entitlement?

Will the work assist to reduce debt?

Will the work improve the value of the farm or enterprise?

Will the work assist positively in farm restructuring?

Will the work improve cropping choices?

Will the work utilise the same local contractors as if the water and land were co-located?

Will the work improve business viability?

Briefly (50 words) describe the positive and negative socio-economic impacts of the proposal

5.7 BudgetThe following budget template indicates the minimum information required for application assessment. If there are more activities than the space provided, attach an extended budget in Excel format provided by DNRM as a separate document labelled with the applicant’s name.

Each budget activity must be evidenced by an attached current quotation, calculations or estimates as appropriate. For the Evidence column, please indicate the type of evidence as follows:

Q = current written quotation, C = calculation with workings shown and evidence of the unit price, E = estimate (minor activities only).

Please attach

Attach current quotations and calculations.

3water management area means—(a) an area of the State declared under a regulation to be a water management area; or(b) an area identified in a water plan or a water management protocol as a water management area.

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Project budget

Activity Cost (excl. GST) Evidence Evidence reference/description

Preparing the application

Subtotal

Planning and project management

Subtotal

Capital

Subtotal

Earthmoving

Subtotal

Commissioning

Subtotal

Other (please itemise)

Subtotal

C: Total cost of project (excluding GST)

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5.7.1 Funding and applicant contribution D: Funding sought from HHWUE (excluding GST) (must be no more than 90 per cent of C:

Total cost of project) %

E: Applicant contribution (excluding GST) (must be no less than 10 per cent of C: Total cost of project)

Cash/in-kind %Additional water (if offering additional water, please also complete section 5.7.2)

%

Total %

5.7.2 Additional water contributionIdentify any entitlements that will be transferred to the Australian Government to the value of the “additional water” at E: Applicant contribution above.

Please note the applicant contribution will be the volume of water entitlement (of the same type as that offered from the water savings) required to equal the contribution amount nominated in section 5.7.1 E: Applicant contribution. Should the Australian Government approve the application, it will advise its market price and calculate the volume of water required from these entitlements to cover the nominated applicant contribution amount.

Registered water entitlement holder/s Water entitlement number Catchment/subgroup

5.7.3 Value for money calculationCost to the Australian Government of the water to be transferred ($/ML, excluding GST), calculated as D from section 5.7.1 divided by A from section 5.6

5.8 Feasibility certificationMinimum requirements to certify an application are Registered Professional Engineer of Queensland (RPEQ), Certified Irrigation Designer (CID) or Certified Irrigation Agronomist (CIAg).

Name Company

Registration RPEQ CID CIAg

CertificationI certify that the proposed infrastructure improvements in this application are technically feasible and that the estimated water savings are achievable and based on reasonable assessment methodologies and assumptions.I certify that the project costing is reasonable and that in-kind contributions have been calculated on the basis of a sound methodology, or are comparable to quotes for provision of a similar service.

Certifier signature

Please attach

Attach a copy of the certifier’s registration/certification.

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5.9 Applicant/s declarationAll of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11):

applicants

registered water entitlement holders

registered owners of the land.

DNRM requires that persons or, if a corporation, representatives sign all applicable parts of the declaration. Where the same person or corporation is more than one party (e.g. applicant and registered water entitlement holder), the person or representatives must sign for each party (e.g. the applicant declaration and registered water entitlement holder declaration).

Applicant/s declarationBy signing this form you:

confirm all details are true and accurate

acknowledge information provided in this application will be used for the purposes outlined in the privacy statement at section 7 of this form

understand this document and all attachments comprise your complete application to the HHWUE infrastructure funding program

understand DNRM is unable to guarantee payment of funding to projects completed after March 2020.

Completing this form does not guarantee the applicant funding under the HHWUE project.

If a person

Name Name ABN ABN

Signature SignatureDate Date

Witness Witness


If a corporation

Executed on behalf of ACN

Name Name

Position/title Position/title


Witness Witness


Please attach

Please copy this page and attach an additional sheet if more space is required.

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5.10Registered water entitlement holder/s’ declaration All of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11):

applicants




Registered water entitlement holder/s declarationBy signing this form you:

confirm all details in this application pertaining to the water entitlement/s in which you have an interest are true and accurate

consent to the project proposed in this application including, if applicable, the transfer of any nominated water in which you have an interest

acknowledge information provided in this form will be used for the purposes outlined in the privacy statement at section 7 of this form

consent to the disclosure of water entitlement/s information to the Australian Government (or its solicitors) so that legal due diligence may commence should the application be approved. This consent includes, but is not limited to the number and security of the water entitlement/s, the ownership of the water entitlement/s, any associated landholdings and title references, any water usage, temporary transfers and allocation held by or accruing to the water entitlement, any third party interests, any water deficit, any financial or other liabilities and copies of any notices.


If a person

Name Name ABN ABN


Witness Witness


If a corporation


Name Name



Witness Witness


Please attach

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5.11Registered land owner/s’ declarationAll of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11):

applicants




Registered owner/s of the land declarationBy signing this form you:

confirm all details in this application pertaining to the land in which you have an interest are true and accurate

consent to the project proposed in this application including infrastructure works to be undertaken on land in which you have an interest

acknowledge information provided in this form will be used for the purposes outlined in the privacy statement at section 7 of this form.


If a person

Name Name ABN ABN


Witness Witness


If a corporation


Name Name



Witness Witness


Please attach


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6 Next stepsIf an application is approved, the following steps will apply.

6.1 ContractsA HHWUE project involves two contracts.

Figure 8: Agreements for approved applicants

6.2 Water transfer requirements

6.2.1 TransferabilityThe transfer of water can involve a considerable lead time which may impact on the implementation of on-farm works. Irrigators should talk to DNRM to understand the steps that may be required to transfer the water, noting that all water must be transferred to the Australian Government by March 2019.

An intending applicant should obtain a copy of the relevant water entitlement documentation from the registered water entitlement holder to confirm ownership details, and if any conditions are in place that would preclude the subdivision or transfer of that water. Similarly, the interests of any other party including water supply scheme operators or mortgagors should be considered.

The water to be transferred must be freed of special conditions, financial or other encumbrances prior to the registered water entitlement holder entering into a water entitlement transfer deed with the Australian Government. The Australian Government has advised that where a water entitlement includes a condition that prevents water taken under that entitlement from being stored other than in notified storage works, this condition must be removed before the water transfer deed with the Australian Government can be settled.

If the water is subdivided for the purpose of the transfer, the nominal volume and other characteristics of the balance of the entitlement may change. Applicants should contact DNRM for more information on how subdivision of water may affect entitlement characteristics.

If the water is unable to be unencumbered and transferred by March 2019, the works agreement will not be able to proceed.

For more information regarding conditions on water entitlements and DNRM contact details, please refer to section 8.

6.2.2 Transfer costsRegistered water entitlement holders may be liable for any costs related to transferring water entitlements to the Australian Government. These costs include legal, financial advice, brokerage, agency fees, access and termination fees and outstanding interest charges and arrears.

Applicants will be responsible for the costs of any infrastructure required to comply with state licensing requirements or the requirements of their irrigation infrastructure operator.

Applicants should contact DNRM or their irrigation infrastructure operator to determine if they are likely to incur

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Applicant(proponent)

Registered ownerof the land

Registered waterentitlement holder

Australian GovernmentDNRM

Works agreement for infrastructure works, specifying milestonesfor carrying out the works, payment stages, expectations for ensuring

safety and risk management, and other terms and conditions (the worksagreement must be signed by all the above parties)

Water entitlement transfer deed for thepermanent transfer of an unencumbered water

allocation representing at least 50 per cent of thewater savings of the project and any additionalwater offered as an applicant contribution (the

transfer deed is signed by the registeredwater entitlement holder)


additional costs as a result of the water transfer.

The following table is a guide to the fees likely to be incurred. Actual fees will depend on the nature of the works being undertaken and the water being offered.

Description of costs Purpose of cost Cost

Statutory fees For lodging applications and dealing certificates with DNRM $0–$999.20

Additional costs For certification of infrastructure and modelling $5000–$25 000 per storage

Indicative range provided by modellers and consultants.

6.3 Reporting requirementsUpon entering into a works agreement, the applicant must provide DNRM with quarterly reports as outlined in the works agreement, for the duration of the agreement. The reports include up-to-date estimates of revenue and expenditure in relation to the works agreement, in addition to explanation of progress and changes to the project.

A final report is required at the end of the project to receive a final payment. The final report includes such information as financial report, evidence of expenditure, statutory declaration and commissioning report by a qualified irrigation professional.

Under the agreement, DNRM or its representative may also inspect the project site.

6.4 Evidence of expenditure requirements Irrigators must maintain and present to DNRM evidence of expenditure in order to receive payments and comply with their works agreements. Records may include:

tax invoices

supplier or bank statements

logbooks

bowser records.

6.5 Payments

6.5.1 Milestones and milestone paymentsPayments are made according to according to milestones established in the works agreement. The following figure shows the progress criteria for milestones. Payments are also dependent on irrigators meeting works agreement conditions such as compliance with regulations or holding sufficient insurances.

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Figure 9: Milestone payments under HHWUE works agreement

6.5.2 Treatment of cost over-runs and savingsThe Australian Government agrees to fund a percentage of the total project cost, expressed as a dollar amount.

If the project is overspent, the amount of funding is not increased.

If the project is underspent, the amount of funding is decreased in proportion to the original funding percentage.

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FirstmilestoneAdvance payment

conditional on meeting worksagreement obligations and

settlement of waterentitlement transfer deed

Payment Equal to agreedmarket value of the water xthe volume of water offered

for transfer

Intermediatemilestones

Arrears paymentconditional on meeting

works agreement obligationsand milestone

progress

Payment Agreed progressamounts

FinalmilestoneArrears payment

conditional on meetingworks agreement

obligations including acommissioning report

Payment 20 per cent ofAustralian Government

funding (adjusted asnecessary)


7 Terms and conditions

7.1 Conduct of DNRM assessmenta) Late applications may only be considered at DNRM’s discretion.

b) Details, attachments and any related documents that applicants provide in their applications will be treated in the strictest confidence and will not be distributed in any form, verbally, electronically or hard copy to any other party outside of the immediate assessing team and DNRM’s expert advisors.

c) An applicant must direct any enquiries following the closure of the application period in relation to the application process in writing or by email to the DNRM representative above.

d) DNRM may conduct the process for the evaluation of applications in connection with the infrastructure funding round in such manner as it thinks fit and, without limitation, may at its absolute discretion (without any obligation to do so):

i. cancel the applications process or extend the date for submissions in section 3.3 at any time by notice in writing to each applicant

ii. provide to all applicants any further information provided to a particular applicant including in response to queries relating to this application

iii. refuse to consider any application which does not comply with the application documents in any respect

iv. apply such criteria and criteria ratings as it sees fit in its evaluation of an application.

e) DNRM is not required, and does not intend, to release any details regarding any aspect of the evaluation process.

7.2 Provision of further informationa) As expressed in this document, all applicants are expected to provide sufficient information to demonstrate

their compliance with assessment criteria, and to constitute a comprehensive response. Accordingly, DNRM is not obliged to seek further information from any of the respondents in respect of any criterion in order to ensure that the maximum possible ranking may be obtained for that applicant.

b) DNRM in its absolute discretion, subject to probity, may however elect to seek clarification of any submission where the provision of such further information may assist DNRM in the differentiation and ranking of respondents.

7.3 Clarificationsa) Any reply to an applicant’s query or request for a clarification in regard to this application will be in writing,

generally by email, from DNRM.

b) Applicants should note that any query or request for clarification that is answered by DNRM will be circulated, together with answers, to all other applicants, unless the applicant has submitted its query marked “commercial-in-confidence” and, subject to the paragraph below, it has been determined by DNRM that the query is to be treated as such in accordance with the general conditions of the application guidelines.

c) If an applicant wishes to submit a query in confidence without circulation to other applicants on the basis that the circulation may disclose confidential information concerning the applicant's tender, the applicant must clearly mark the query as commercial-in-confidence. A determination will be made by DNRM as to whether the query is to be treated as commercial-in-confidence and not circulated to other applicants, and notified to the applicant. If it is decided not to treat the query as commercial-in-confidence, the applicant will

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be given the opportunity to withdraw the query rather than have the query and answer circulated to the other applicants.

7.4 Addendaa) DNRM may issue addenda in writing.

7.5 Mediaa) An applicant must not make any news releases, or respond to media enquiries and questions, in relation to

the application process without the prior written consent of DNRM's representative.

b) In the event of breach of these provisions the respondent may be excluded from further consideration in the application process.

7.6 Probity a) DNRM has engaged Argus Probity Auditors and Advisors Pty Ltd as probity advisor for the application

process. Contact details for the probity advisor are:

Mr Lindsey Alford, of Argus Probity Auditors and Advisors Pty LtdPhone: (07) 3003 0505Fax: (07) 3112 0805Mobile: 0438 700 677Email: [email protected]

b) Any concerns regarding the probity of the application process should be addressed in the first instance to DNRM’s representative.

c) An applicant must set out the issue in question and how it impacts on the application process or the applicant's interests, and any relevant background information and discussion.

d) Should an applicant not be satisfied with the outcome of an issue referred under (b) above, or otherwise not wish to pursue that course, the issue may be referred by the applicant directly to the probity advisor.

e) Because any delay in notifying DNRM or the probity advisor of probity issues may prejudice the rights of all respondents, each respondent agrees that unreasonable delay in notification of any probity concerns precludes the respondent taking action, legal or otherwise, based on those concerns.

7.7 No offering of incentivesa) An applicant must not offer any incentive to, or otherwise attempt to influence, any person who is directly or

indirectly involved in the evaluation process or any other aspect of the application process. If DNRM determines that an applicant has contravened this condition, the applicant's response may, in DNRM’s sole and absolute discretion, be disqualified from further consideration.

7.8 Related entitiesa) DNRM requires each applicant to identify any party to the application that is a related body corporate or

principal of another applicant (a consortia). DNRM reserves its rights in this regard. Failure to advise DNRM as required by this clause may result in an applicant being disqualified from the process.

b) In the event that an applicant's consortium contains a related party or a related body corporate of another applicant, DNRM reserves the right to short list only the highest ranking of the affected consortia and to reject the other party or related party in consortia.

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mailto:[email protected]


7.9 Ownership of tendersa) Each applicant response (including all supporting documentation and materials submitted by an applicant

as part of, or in support of, this application) becomes the property of the DNRM on submission and will not be returned to the applicant or tenderer.

b) However, the applicant shall retain copyright and other intellectual property rights in respect of the application except to the extent specified in the works agreement.

c) DNRM may reproduce the application for the purposes of evaluation.

7.10 No collusiona) A respondent must not collude, or engage in any other anti-competitive conduct, with another participant or

any other person in relation to the preparation or lodgement of an application.

7.11 Privacy and consenta) By signing the application form, the applicant is permitting the following entities to access or use the

personal information disclosed in the application form for the following purposes:

i. the State of Queensland, acting through DNRM to assess applications under the HHWUE project, to collect and collate information relating to the applicant’s details (i) for the purposes of project reporting and project service delivery and (ii) for information and skill development about water use efficiency

ii. the State of Queensland, acting through DNRM, and the Australian Government, acting through the Department of Agriculture and Water Resources, to announce information about the project as required if the application is successful. Identifying details regarding the applicant, registered owner of the land and registered water entitlement holder will not be publicised without the consent of those persons

iii. the Australian Government, through the Department of Agriculture and Water Resources, may require permission to access and use information in an application for the purposes of verification and conducting due diligence activities, and obtaining additional information, where necessary, in relation to:

the total number and security of water entitlements held in relation to the application

ownership of the relevant water entitlement in this application and any temporary transfers applicable

any landholdings and title references in relation to the application

any water usage of applicable parties to the application

any third party interests

any financial or other liabilities

copies of any notices in relation to the above.

b) The applicant, registered owner of the land, registered water entitlement holder may be contacted directly by DNRM or the Australian Government Department of Agriculture and Water Resources requesting further information in regard to the application.

c) Enquiries or information access requests should be directed to the HHWUE contact listed at section 8.1.

7.12 Tax informationa) Applications are subject to normal taxation treatment and no special arrangements will apply. Applicants

should seek independent advice on the taxation implications of receiving funding. All applications for funding will be GST exclusive. Payment of GST on individual project funds provided will be dependent on the individual’s GST status.

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7.13 Compliance and workplace health and safetya) An applicant who enters into a works agreement is obliged to ensure compliance with all laws, and that

relevant planning and regulatory approvals are in place before works commence. The applicant is further responsible to ensure safety on the construction site in accordance with the Work Health and Safety Act 2011 (Qld) or other relevant legislation.

b) Larger applications may, subject to financial thresholds, trigger a further requirement to comply with the Australian Government Building and Construction WHS Accreditation Scheme and the Building Code 2013 (Commonwealth). Potential applicants are strongly encouraged to investigate the applicability of these instruments in preparing their application.

The Building Code 2013 applies to all HHWUE construction where:

the value of Australian government contribution to a project is at least $5 million and represents at least 50 per cent of the total construction project value, or

regardless of the proportion of Australian government funding, where the Australian government contribution to a project is $10 million or more.

The WHS Accreditation Scheme applies to projects proposing to undertake more than $4 million (including GST) of work. Applicants proposing projects of this nature are encouraged to contact DNRM to discuss implementation implications. Contact details are located at section 8.

c) Further details can be found in the sample works agreement that is available from DNRM. Information may also be obtained about Queensland workplace health and safety requirements (including templates) from www.worksafe.qld.gov.au or 1300 362 128, and about Australian Government occupational health and safety requirements from the Office of the Federal Safety Commissioner at www.fsc.gov.au or 1800 652 500.

7.14 Disclaimera) Neither DNRM nor any of its consultants, advisors or agents accept any responsibility to any other person,

under the law of contract or tort or otherwise, for any loss or damage which may arise from:

i. anything contained in the application documents, any matter deemed to form part of the application documents, the supporting information or documents referred to in the application documents or any information supplied by or on behalf of DNRM or

ii. any other part of the application form and guidelines.

b) DNRM has no legal or other obligation to any applicant (including, without limitation, in respect to the application process outlined in this document).

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http://www.fsc.gov.au/

http://www.worksafe.qld.gov.au/


8 Contact information

8.1 Healthy HeadWaters Water Use Efficiency project teamFor more information on the HHWUE project, please contact the project team at:

Addresses: Department of Natural Resources and Mines203 Tor StreetToowoomba Qld 4350

Department of Natural Resources and Mines126 Alfred StreetSt George Qld 4487

Department of Natural Resources and Mines42 Callandoon StreetGoondiwindi Qld 4390(Please note the Goondiwindi office is not staffed by the HHWUE project team)

Mail: Department of Natural Resources and MinesPO Box 318Toowoomba Qld 4350

Phone: 13 QGOV (13 74 68)(07) 4529 1321

Fax: (07) 4529 1555

Email: [email protected]

Website: www.dnrm.qld.gov.au

8.2 LinksThe HHWUE project and its works agreement are administered under the Water Management Partnership Agreement between the Australian Government and the State of Queensland as a priority project. The Water Management Partnership Agreement serves to provide funding for this priority project through the Australian Government’s Sustainable Rural Water Use and Infrastructure Program.

A link to the Water Management Partnership Agreement may be found at http://agriculture.gov.au/SiteCollectionDocuments/water/qld-bilateral-agreement.pdf.

For other related information, visit:

Water trading and overland flow: www.dnrm.qld.gov.auSustainable Rural Water Use and Infrastructure Program:

http://agriculture.gov.au/water/mdb/programmes/basin-wide/srwuip

More Profit per Drop: www.moreprofitperdrop.com.auIrrigation Australia Limited: www.irrigation.org.auRPEQ: www.bpeq.qld.gov.au

Sources of information on current water market prices include:

Queensland Government: www.business.qld.gov.au/industry/water/managing-accessing/markets-tradingAustralian Government: http://agriculture.gov.au/water/markets/market-price-information

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http://www.business.qld.gov.au/industry/water/managing-accessing/markets-trading

http://www.dnrm.qld.gov.au/

mailto:[email protected]


9 Frequently asked questionsWhat is the timeframe for the completion of funded HHWUE applications?Project milestone dates are negotiated and established in individual works agreements. Projects must be completed prior to 31 March 2020, including all works and payment claims. DNRM is unable to guarantee payments after this date.

Can I apply if I have infrastructure works in northern New South Wales?An application may be possible if the project nominates an eligible Queensland water entitlement from which water savings will be shared with the Australian Government. Irrigators considering works in New South Wales should contact DNRM to confirm the eligibility of the location and nature of their project.

What types of water entitlements does the Australian Government want?The focus on certain types and locations of water entitlements may change from round to round. Applicants should refer to the current application form to ensure the proposed water entitlement is eligible.

Is there a maximum number of projects that I can submit to the HHWUE project?No.

What is meant by a ‘certified or qualified’ irrigation professional in relation to the review of the technical aspects of project applications? A certified or qualified irrigation professional is an individual who is a Registered Professional Engineer of Queensland (RPEQ), a Certified Irrigation Designer (CID) or Certified Irrigation Agronomist (CIAg) under the Irrigation Australia Limited professional listings at www.irrigation.org.au.

Who will assess my application?DNRM will assess applications received within a funding round and forward a report and recommendation to the Australian Government for validation of DNRM’s assessment on which projects should be approved for funding. DNRM aims to complete the overall assessment process within one month from the funding round closing date for applications. All applicants will be contacted by DNRM when the outcome is known.

What role does the Australian Government have in this project? If an application is approved by the Australian Government and a works agreement is subsequently signed between the irrigator and DNRM, the Australian Government will commence its legal due diligence upon which the registered water entitlement holder will be asked to enter into a water entitlement transfer deed with the Australian Government for the permanent transfer of the share of the project water savings. The deed is separate to the works agreement with DNRM, though all payments to the applicant under the works agreement depend on the water transfer under this deed being completed.

If I participate in the HHWUE project will I be exempt from the sustainable diversion limits (SDLs) that are proposed to be introduced in the new Basin Plan?No. Further information on the Basin Plan is available at www.mdba.gov.au.

Can an applicant propose works that are located in a different water management area to the water entitlement offered for transfer to the Australian Government?Yes, works and water may be in different water management areas, if both the water entitlement and the land on which works will occur are both located in areas eligible for the HHWUE project and in the same Water Resource Plan area (i.e. catchment). This situation is called “dislocated water”. If the applicant is proposing to offer dislocated water, additional information must be included with the application regarding the socioeconomic impacts of this dislocation.

How does an applicant demonstrate the socioeconomic impacts where dislocated water is proposed?Where applicants are proposing to offer dislocated water, they must attach supporting commentary on the socioeconomic impacts of offering the water. The impacts may be positive (e.g. applicant’s ability to maximise business outcomes or water available by offering water from a different location, offered entitlement contributing to downstream water recovery target) or negative (e.g. loss of entitlement from region). The supporting commentary should discuss how the potential positive impacts outweigh the potential negative impacts.

Can an applicant undertake their own earthworks?Yes, these are termed ‘in-kind’ works.

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http://www.mdba.gov.au/

http://www.irrigation.org.au/


Can pre-existing works be included for funding in an application?No (see section 2 for further information).

Can “stock on hand” be used in a project?In some cases stock-on-hand can be used (see section 2). Evidence requirements and applicant responsibilities may however vary where stock on hand is used.

What is a commissioning report and who provides it?In order to receive a final payment from DNRM for the completed infrastructure, the applicant must provide (among other documents) a commissioning report obtained from a suitable irrigation industry professional (see section 6.3). This report certifies that the infrastructure is built and operational according to the approved project. The cost of obtaining a commissioning report can be included as an activity in an applicant’s project costing.

What happens if the project is over or underspent? There are specific arrangements for over or under expenditure of the total agreed project cost. Please see section 6.5.2 for more detail.

If a works agreement is terminated after the water is transferred to the Australian Government, is the water returned to the registered water entitlement holder? Once the water has been transferred to the Australian Government it will not be returned. However, the applicant will receive payment to the agreed market value of the water that is transferred. This market value will be identified in the works agreement between DNRM, the applicant, registered owner of the land and registered water entitlement holder.

How is the value for money (cost of the water being returned to the Australian Government) calculated?To calculate the cost per megalitre of water being returned, divide the Australian Government contribution to the project by the number of megalitres (ML) of the water savings proposed to be transferred to the Australian Government (see section 4.1.4 for further information).

Will the HHWUE project fund the ongoing operation and maintenance of infrastructure?No. Funding is provided in relation to construction, upgrade and commissioning of on-farm irrigation infrastructure only.

What happens if delays to the infrastructure project occur that are beyond the control of the applicant?DNRM understands that projects can be delayed for unforeseen reasons. Applicants are encouraged to propose a timeframe that makes reasonable provision for unforeseen delays. Delays throughout the implementation of a project will need to be reported to DNRM as a contractual requirement. Variations can, from time to time, be negotiated however applicants should be aware of the 31 March 2020 deadline for completing works and claiming final payments. If an applicant’s project runs ahead of schedule DNRM will accept early payment claims.

What capital items and activities can be claimed as part of project expenditure?Capital items or activities must be directly related to constructing and commissioning on-farm irrigation infrastructure to achieve water savings; they must be dedicated, specialised and without reasonable substitute. For example:

an excavator purchase may not be claimed, but the cost of using it on the project may be claimed

capital relating to farming or farming systems may not be claimed.

Must the farming enterprise include only properties that are located adjacent to each other?The HHWUE project does not require properties to be adjacent to each other to classify as a farming enterprise. Rather, the properties must be run as the one business with water, equipment, labour etc being shared between the properties.

How should the applicant demonstrate that the irrigation of any new areas will not be to the detriment of natural resource conditions?Section 5.4.1 of the application form requires the applicant to describe the impacts of new irrigation on deep drainage, water tables, salinity, soil health and suitability. In demonstrating their ability to manage impacts on natural resources, the applicant may choose to refer to myBMP accreditations which they might hold or the suitability of the site based on documents such as the Waggamba land use manual or Queensland Agricultural Land Audit.

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