The Hottest Show in TownThe Hottest Show in TownWater and Power in the PilbaraWater and Power in the Pilbara

Presentation to Urban Presentation to Urban Development Institute of Australia BreakfastDevelopment Institute of Australia Breakfast2222ndnd March 2012 March 2012

Keith Anthonisz,

Manager, Infrastructure Coordination,

Pilbara Cities Office

Introduction - Pilbara Cities Vision

• Vision announced by Premier and Minister for Regional Development on 27th November 2009 for Karratha and Port Hedland to become major cities by encouraging people to live in the Pilbara.

• Funding from State, Federal, Local governments and private sector for land, infrastructure and community development in key Pilbara towns.

• The Pilbara Cities Office established within Department of Regional Development and Lands on 1st July 2010.

• Office in Karratha and Perth.

• Key target Karratha and Port Hedland to reach a population of 50,000 by 2035.

The Pilbara Region

Pilbara Key Statistics• People and Place

– Area: 508,000km2 (Twice the size of Victoria).

– Population: Approximately 52,000

– Pilbara Industry's Community Council – 100,000 in the Pilbara now!

– High disposable income. Low unemployment.

• Economic Significance

– 2010 export production of approx $71 Billion or 74% or WA Production.

– $71 billion represents 6% of Australia's total GDP

– $100 Billion of committed projects in the Pilbara.

– 30% of Nations Exports with 0.2% of nations population.

– Total value of minerals and petroleum production in the Pilbara by 2018 approximately $211 Billion.

Pilbara Key Challenges

Massive growth during Boom period

BUT

1) Housing is less affordable due to demand.

2) Infrastructure upgrades/expansion are not keeping up with growth.

3) Small business numbers have declined partly due to rising costs.

4) Education & Health services well below expectations.

5) Community services facilities aging.

6) Sense of community in decline (FIFO and 12 hour shifts).

Exciting Times for the Pilbara

• PREMIER BARNETT, HANSARD OCT 2011: I recommend that people go to Port Hedland and look at what is happening there. The whole of Port Hedland, both old Port Hedland and South Hedland, is essentially being rebuilt. A town that was developed in the 1960s is being redeveloped and rebuilt 40 to 50 years on. The same is happening in other Pilbara towns. It is a great program.

• BERNARD SALT, AUSTRALIAN NEWSPAPER: If you want to see the muscle town genre, go to Karratha.  There are other muscle towns in various forms of evolution, such as Port Hedland. Muscle towns are a vital and expanding component of the Australian economy. 

• GLENN STEVENS RBA GOVERNOR: Measured on a five-year moving average basis, ..the terms of trade over the next few years from this year's forecast peak, the terms of trade are as high as anything we have seen since Federation.

Pilbara Cities Commitment

• State commitment of over $1 billion over four years to implement the Pilbara Cities vision.

• Funded through Western Australia’s ‘Royalties for Regions’ program.

• Supported by control over Crown Land.

• Pilbara Cities Office established to deliver the Vision.

• Pilbara Planning and Infrastructure Framework.

• Blue print for Pilbara Cities growth.

• Provide examples of what will be required to achieve the Pilbara Cities Goals in terms of land release, dwellings, water and power consumption and the diversified jobs required to reach 50,000 for Karratha and Port Hedland.

Pilbara Cities Planning

Pilbara Cities Office Key Focus Areas

• Land and Land Development– Land Availability Planning,

Developer Attraction and Retention.

• Infrastructure– Energy, Water, Waste Water.

• Community Facilities– Education, Health, Community

Facilities.

• Economic Development– Economic diversification,

Local supply chain development.

The Infrastructure Challenges

Essential Services Infrastructure - Water - Waste Water - Energy - Housing

Transport - Roads - Airports

Community and Economic Development - Facilities

HousingCurrent Status

• Extreme housing costs (rental and purchase)• Unmet Demand

- Karratha: 1,531 dwellings- Port Hedland: 1,402 dwellings- Newman: 283 dwellings- Remainder of Pilbara: 511 dwellingsTOTAL: 3,878 dwellings

Infrastructure Requirement

• Additional Dwellings required (to 2015)- Karratha: 2,850 dwellings- Port Hedland: 2,950 dwellings- Newman: 832 dwellings- Remainder of Pilbara: 453 dwellingsTOTAL: 7,085 dwellings

Pilbara Cities Housing Pipeline

• From 2012 to 2016 Pilbara Cities Office Records:

• Port Hedland Housing Development:

– 11,700 dwellings planned from early stage development, subdivision approval, subdivision clearance and building approvals obtained.

• Karratha Housing Development

– 4,800 dwellings planned from early stage development, subdivision approval, subdivision clearance and building approvals obtained.

Water

Current Status

Karratha and Port Hedland: Water supply above sustainable levelsOnslow: Water to meet industry and/or residential needs.

Infrastructure Requirements

Karratha: Immediate action for additional supply plus medium-term solution – Rio Tinto and Bungaroo.Port Hedland: New source development required.Onslow: Additional supply to be bought on line with Chevron support.

Waste WaterCurrent Status

• Treatment Plants nearing capacity.• Treatment plants poorly located from a Town/City growth perspective.• Plants operating off older technology.

Infrastructure Requirements

• Relocate and upgrade the Port Hedland Ponds.• Upgrade the Karratha Treatment facility.

EnergyCurrent Status

• Current Horizon generation capacity will be 142 MW in 2013.

• Capacity drops 100 MW with the ending of a PPA with Alinta Gas.

Infrastructure Requirements

• Horizon Power proposed 112MW power station – sufficient for 5-7yrs growth.

• Need to assess private sector investment in power for future growth of Pilbara

communities.

• Integration of power networks within the region has the potential to reduce costs and support economies of scale.

Pilbara Private Energy Supply

• Chamber of Minerals and Energy forecasts power demand from miners could grow by 2200 megawatts between 2010 and 2015.

• By 2014, growth in electricity demand in the Pilbara expected to be 82% of State resource sector demand growth.

• BHP building a 190 MW in Newman and has a power requirement for the Port Hedland Outer Harbour of 113 MW.

• Rio Tinto is planning 120 MW open cycle gas turbines.

• FMG Solomon Project needs 102 MW.• CITIC Pacific is building a 450 MW

combined cycle gas fired power station.

Infrastructure Coordination Team Projects - Water

• Port Hedland Waste Water Treatment Plant – Port Hedland Waste Water Treatment Plant Relocation with $42 million RfR and Water Corporation $106 million funding, supporting 2,500 new dwellings.

• Karratha Waste Water Treatment – $8 million funding for a temporary Membrane Bioreactor wastewater treatment unit to manage additional flow and provide for release of 1250 lots.

• West Canning Basin - $12 million funding for the exploration of the West Canning Basin Sandfire as a long term large freshwater supply for Port Hedland.

• Water Recycling and Reuse - Part funding of onsite wastewater treatment at the Fleetwood Karratha Searipple Workers Village.

Infrastructure Coordination Team Projects - Power

• Pilbara Underground Power Project – Replacing aging overhead electricity infrastructure with underground networks. The project is worth $130 million of which RfR funding amounts to $100 million.

• Pilbara Energy Planning – Collaboration with Horizon Power to explore development of a joint energy demand study for the Pilbara incorporating Pilbara Cities demand, opportunities for collaboration with private energy infrastructure providers and the potential for renewable energy development.

• Renewable Energy - Promotion of Pilbara renewable energy projects to the Federal Government.

• Pilbara Private Infrastructure Investment – Promotion of Pilbara energy needs as potential private investment opportunities.

Economic Development

• Diversification Opportunities:

– Hinterland agriculture based on mine dewatering

– Algae Based Industry Including Biofuels

– Marine Common User Facility engineering and maintenance

– Defence– Alternative energy– Tourism

Infrastructure Coordination Team Building Collaboration

• In order to develop the Pilbara Cities Vision, collaboration is needed between government and the private sector in what is a fast growing, pressurised environment.

• The Pilbara doesn’t represent ‘business as usual’.

• Pilbara Cities Office works with key government utilities and other government agencies, private sector utility providers and shires to ensure that Pilbara Cities projects for property development are progressed and supplied with water and power.

• Pilbara Cities Office mandate is to coordinate a ‘whole-of-government’ approach and to lead the Pilbara Cities program.

Questions?