New water infrastructure for the Barossa

Overview

The New Water Infrastructure to the Barossa Project (Barossa New Water) aims to deliver new, secure, climate-independent and affordable water to complement other water sources. This will underpin productivity growth in the region and economic benefits to the state.

The drivers for the delivery of additional water infrastructure to the Barossa Valley and Eden Valley include:

• increased productivity in the wine sector and other primary industries
• greater employment opportunities
• regional economic uplift
• reduction in wastewater entering the marine environment
• improved climate resilience of the wine industry
• secure and affordable water resource
• benefits to other industries in the region.

The project is investigating the viability of delivering new water supply to the Barossa Valley and Eden Valley by leveraging:

• supply and infrastructure of the Northern Adelaide Irrigation Scheme
• other existing or new water supplies and infrastructure.

The project addresses industry demand from the wine, livestock, and horticulture sectors for new water sources. It will provide security from declining rainfall, surface water and underground water availability.

The project includes proposed new infrastructure to treat, transfer, and distribute high-quality recycled water from the Bolivar Wastewater Treatment Plant to the Barossa Valley and the Eden Valley, via existing and new infrastructure.

Barossa New Water will also consider both recycled and raw water supply solutions for Eden Valley.

Key activities

A detailed business case is being developed by Kellogg Brown and Root Pty Ltd (KBR), which has been engaged by the department as business case adviser.

The business case adviser’s key activities are to:

• understand industry demand for water including quantity, quality, uses and willingness to pay
• understand gaps between current and forecast demand
• analyse and model the economic benefits, uplift factors and costs of the scheme at a regional, state and national level
• explore business model and funding requirements including potentially feasible commercial models and options
• identify and consider relevant regulatory and legal considerations
• identify and prepare route options
• develop full scheme design and costings for capital and operating expenditure for preferred route(s)
• develop an implementation strategy that may include a preferred procurement or delivery model, packaging and market engagement.

Status

The project is in the detailed business case phase. KBR has engaged with:

• existing water customers
• potential new water users
• current infrastructure owners
• industry stakeholders.

They have undertaken 2 rounds of water demand assessment with industry – round 1 from October to December 2021 and round 2 in January-March 2022.

Growers have shown a genuine interest in new water in the Barossa Valley and Eden Valley, with a strong response in round 2. However, the estimated annual charges presented by KBR in the round 2 water demand assessment were considered high by many respondents.

Timelines

The detailed business case was finalised in November 2022, providing an evidence base for government to consider.

There has not yet been any government commitment or budget allocation for this project beyond this phase.

A project update will be provided once the detailed business case has been considered by government. This will occur in 2023 with specific timing to be determined.

News

• $3.5 million to help turn water into Barossa wine – media release 19 May 2021
• Infrastructure Australia infrastructure priority list

Partners

The Department of Primary Industries and Regions (PIRSA) is leading this initiative, with support from:

• the Department of Treasury and Finance
• SA Water
• the Department for Environment and Water
• Infrastructure SA.