Inquiry into Government Programs and ProjectsThe terms of reference appear to be aimed at the front end of the business of conceiving, defining and specifying each program with respective projects. They include tendering and award of contracts but do not appear to be concerned with the performance of the contracts other than clause 6. concerning “failures in decision making processes” implying where significant costs have been incurred.

It seems once contracts are awarded the matter of how the contract is conducted is left to the contractor. There appears to be no expectation of project management utilising well established techniques.

For the sake of clarity a program consists of one or more projects, each project having a clear start, duration and end and meeting a defined objective.

Given the terms of reference address those front end issues and then examine the outcomes there may be a big hole in the middle where once specifications are done and tenders let there is no mechanism of risk management where each project is divided into its components parts via a “work breakdown” and placed into a time and cost (with resources) schedule. Such a schedule is part of accepted project management and it enables sufficient level of detail so that before the project proceeds risks of cost or time over-runs are revealed ahead of time to enable remedies.

Clearly leaving the creation of the project time and cost schedule to the contractor removes this thought provoking step until it is too late for the government body to react to risk. It should be done as part of the project specification and documentation process.

Most large engineering enterprises include project schedules at a detailed level in the planning stage.

There are other techniques for establishing the credentials of a project prior to authorising it, such as “Logical Framework” which involves stakeholders in a quite ruthless and disciplined analysis prior to decision time.

The Australian Project Management Institute would be a good place to approach for information on how project management techniques have evolved in the past 50 years.

Regards,Chris Limb BE (Electrical), BEc (Commerce), Project Management Professional (PMP) retired.

Mr John Langoulant AO

Special Inquirer

Inquiry into Government Programs and Projects

Dear Sir,

I wish to make comment on Project No 7 under Royalties for Regions, ‘The Ningaloo Centre.’

History.

When the United States Navy departed Exmouth in 1992 a vast amount of infrastructure

remained in-tact, notably the medical facility.

Mr Doug Bathgate, a Shire Councillor, and former first headmaster of Exmouth District High

School along with Murdoch University, proposed to the Department of Defence the idea of a

land and sea research centre to be installed at the site. Eventually Murdoch University declined

any involvement because of the cost Defence put on the asset.

In 2000 I became a member of the Gascoyne Development Commission (GDC), and floated the

idea of a research centre to be located at the canal development which was taking place at the

time. This became the ‘Ningaloo Ocean and Earth Research Centre’ which the GDC supported, a

steering committee was formed with a project officer, chaired by Ian Laurance, members

included a past CEO and Councillor of Exmouth, Chamber of Commerce, community members,

GDC CEO, etc.

The concept was for state university students, plus international students, visit and include on-

site research and use the facility for completing their work.

Architectural drawings and costing of $20 million were developed.

NOERC as it was called, put forward business cases and lobbied State and Federal

Governments, who supported the concept but would not commit to any funding unless the

other party did so first, several changes of government and ministers took place and the years

rolled by.

NOERC became the number one priority project for the GDC and I presented it at a State

Regional Council meeting chaired by Premier Gallop, Ningaloo was receiving a great deal of

publicity at the time through WAMSI (Western Australia Marine Science Institute) research

projects, and the Save Ningaloo campaign.

Exmouth was rebuilding after cyclone Vance, and it became apparent that some of the towns

facilities needed replacing, a new Community centre and Visitor centre were proposed by the

Shire President Ronnie Fleay, to be included into the NOERC project, thus providing 3 projects

in 1.

A name change to the Ningaloo Centre, relocation to Murat Road from the canals with new

drawings and estimated costings, plus more lobbying with State and Federal Ministers took

place. Initially the costing was $39 million as I recall, which was reduced to $30 million plus

after a cost cutting exercise.

I have no hesitation in stating that all decision making, awarding of project, and business cases

were supported by State and Federal Governments.

It became obvious the project needed to be managed by the Shire of Exmouth as it would be

eventually a Shire of Exmouth asset.

Management by Shire of Exmouth.

The shire formed a Steering Committee and I continued to receive updates on the projects

progress, and understand the shire held Community meetings to ensure the community were

kept also informed of its progress, the community were asked to complete questionnaires on

the project to gauge the support or otherwise of the project.

All of the above can be verified I am sure through GDC and Shire of Exmouth minutes.

In closing this submission I wish to include comments made by the Shire of Exmouth

Commissioner Ian Fletcher as posted on Friday, 26th May 2017 on their webpage,

Today’s announcement that Exmouth will host the 2019 International Whaleshark

Conference is evidence the town’s Ningaloo Centre can become a centrepiece for regional

tourism according to Shire of Exmouth Commissioner Ian Fletcher.

Mr Fletcher said the conference, which attracted delegates from around the globe, would put

Exmouth in the International spotlight and the Ningaloo Centre on the map as a conferencing

destination.

‘The International exposure this will generate for the Ningaloo region and the World Heritage

Listed Ningaloo Coast is priceless,’ he said.

‘The Ningaloo Centre will provide a first class conferencing facility and we are ideally placed to

become a destination of choice for environmental, scientific and resource conferences.’

Respectfully,

Peter Green OAM

Deputy President Shire of Exmouth 1995-2003

Chair, and member GDC Board 2000-2006

Submission re the Ningaloo CentreSubmission re the Ningaloo Centremailto:igpp@dpc.wa.gov.aumailto:igpp@dpc.wa.gov.auJohn Langoulant AOJohn Langoulant AO

I write as former President of the Shire of Exmouth, former Chair of the GascoyneI write as former President of the Shire of Exmouth, former Chair of the GascoyneDevelopment Commission (GDC) and former Chair of the Ningaloo Ocean and EarthDevelopment Commission (GDC) and former Chair of the Ningaloo Ocean and EarthResearch Centre (NOERC).Research Centre (NOERC).

The Ningaloo Centre project evolved from two excellent projects The Ningaloo Centre project evolved from two excellent projects that werethat were being beingconsidered considered forfor Exmouth. Exmouth.The GDC was working on the Ningaloo Ocean and Earth Centre (NOERC) in conjunctionThe GDC was working on the Ningaloo Ocean and Earth Centre (NOERC) in conjunctionwith the Shire of Exmouth over a number of years. The idea first being floated in thewith the Shire of Exmouth over a number of years. The idea first being floated in theearly 1990's and championed by Exmouth residents Doug Bathgate (OAM) and Peterearly 1990's and championed by Exmouth residents Doug Bathgate (OAM) and PeterGreen (OAM)Green (OAM)..The NOERC membership consisted of the Shire of Exmouth, GDC, Curtin University,The NOERC membership consisted of the Shire of Exmouth, GDC, Curtin University,Community Representatives, Dept Environment and Conservation, Dept of Fisheries,Community Representatives, Dept Environment and Conservation, Dept of Fisheries,Dept of Transport.Dept of Transport.

It was evident that the Ningaloo Reef, a It was evident that the Ningaloo Reef, a 260 kilometre long fringing reef, the largest in260 kilometre long fringing reef, the largest inAustralia, Australia, waswas as Nationally significant as the Barrier Reef, yet not one Research Centre as Nationally significant as the Barrier Reef, yet not one Research Centrewas operating on the WA coast, besides a couple in the Perth metro area, unlike thewas operating on the WA coast, besides a couple in the Perth metro area, unlike theBarrier Reef and the East of Australia, which had at least 11 research centres along itsBarrier Reef and the East of Australia, which had at least 11 research centres along itscoast! coast!

Ningaloo is the only large reef in the World found so close to a continental land mass.Ningaloo is the only large reef in the World found so close to a continental land mass.The Gulf has extensive sea grass meadows, large Dugong population, extensiveThe Gulf has extensive sea grass meadows, large Dugong population, extensivemangrove systems. The Cape Range covers 50,581 ha and is the only elevatedmangrove systems. The Cape Range covers 50,581 ha and is the only elevatedlimestone range on the north-western coast of WA. The range carries many fossilslimestone range on the north-western coast of WA. The range carries many fossilsand unique stygofauna in its Karst & cave systems.and unique stygofauna in its Karst & cave systems.

Ningaloo Marine Park covers an area of 4,000 square kilometres and has highNingaloo Marine Park covers an area of 4,000 square kilometres and has highbiodiversity with many endemic species. The largest aggregation of Humpbackbiodiversity with many endemic species. The largest aggregation of HumpbackWhales every year travel along the Ningaloo Coast and rest in Exmouth Gulf.Whales every year travel along the Ningaloo Coast and rest in Exmouth Gulf.Ningaloo has an annual migration of Whale Sharks and provides nesting grounds forNingaloo has an annual migration of Whale Sharks and provides nesting grounds foran abundance of turtles.an abundance of turtles.

The Ningaloo Coast was and is facing massive pressure and risk from Industry withThe Ningaloo Coast was and is facing massive pressure and risk from Industry withnumerous oil and gas rigs sitting adjacent to it and significant pressure from fishing andnumerous oil and gas rigs sitting adjacent to it and significant pressure from fishing andtourism numbers. tourism numbers.

The Shire of Exmouth has a population of approx 2,500 but swells up to The Shire of Exmouth has a population of approx 2,500 but swells up to 9,9,000 in the000 in thepeak tourist season.peak tourist season.The Ningaloo Reef and Cape Range national park are now protected by World HeritageThe Ningaloo Reef and Cape Range national park are now protected by World Heritagelisting.listing.At the time, Exmouth was experiencing unprecedented growth and much developmentAt the time, Exmouth was experiencing unprecedented growth and much developmentpressure.pressure.

During the Mid 2000's the Ningaloo Cluster collaboration invested millions of dollars inDuring the Mid 2000's the Ningaloo Cluster collaboration invested millions of dollars inresearch on the Ningaloo Reef and Cape Range. Numerous scientific investigation teamsresearch on the Ningaloo Reef and Cape Range. Numerous scientific investigation teamswere housed in Exmouth gathering largely baseline data.were housed in Exmouth gathering largely baseline data.As it had always been these scientists came and went and the community were neverAs it had always been these scientists came and went and the community were neveracross the work that was being done in their own backyard. As a Shire we felt that theacross the work that was being done in their own backyard. As a Shire we felt that thecommunity should be informed and many discussions were had with the scientificcommunity should be informed and many discussions were had with the scientificcommunity who were also keen to divest their findings but had no conduit by which tocommunity who were also keen to divest their findings but had no conduit by which todo so. They agreed that a Research Centre would be of great use for them as a basedo so. They agreed that a Research Centre would be of great use for them as a basewhen in the region and to provide an opportunity for the community to 'rub' shoulderswhen in the region and to provide an opportunity for the community to 'rub' shoulderswith them. It would also be a repository for the science therefore giving the communitywith them. It would also be a repository for the science therefore giving the communityownership, knowledge, investment and pride in the work that was being done, after all,ownership, knowledge, investment and pride in the work that was being done, after all,the Exmouth community had much to gain but also much to lose should Industry causethe Exmouth community had much to gain but also much to lose should Industry causeany damage to their wonderful natural assets.any damage to their wonderful natural assets.

There was strong and wide support in the community, Universities, Scientific bodiesThere was strong and wide support in the community, Universities, Scientific bodiessuch as CSIRO, and such as CSIRO, and bilateral support from the bilateral support from the many State and Federal Politicians whomany State and Federal Politicians whowere briefed on the Research Centre concept.were briefed on the Research Centre concept.Concepts Concepts for the Research Centre for the Research Centre were worked up and early costings were placed atwere worked up and early costings were placed atnearly 20 Million. Unfortunately for the North West the mark up to build anything wasnearly 20 Million. Unfortunately for the North West the mark up to build anything wasanywhere between 40-60% greater than cost in the South of the State.anywhere between 40-60% greater than cost in the South of the State.

The then State Minister The then State Minister for Planning and Infrastructurefor Planning and Infrastructure, , Alannah MacTiernanAlannah MacTiernan, gave, gavestrong support and set aside a large block of land on the newly developed Exmouthstrong support and set aside a large block of land on the newly developed Exmouthharbour canals. Minister Jon Ford launched the project during his time as Minister forharbour canals. Minister Jon Ford launched the project during his time as Minister forRegional Development in 2006Regional Development in 2006..

At the time a site near the water was deemed necessary due to the plan to include a veryAt the time a site near the water was deemed necessary due to the plan to include a verylarge aquarium.large aquarium.As time progressed this requirement was proven to not be a crucial factor As time progressed this requirement was proven to not be a crucial factor in thein themanagement of an aquarium management of an aquarium and since there was much demand from Industryand since there was much demand from Industryoperators for that particular site it was relinquished.operators for that particular site it was relinquished.

Throughout this time the Shire of Exmouth was also taking note of its many ageingThroughout this time the Shire of Exmouth was also taking note of its many ageing

assets, most of which housed community groups or uses which were not fit for purposeassets, most of which housed community groups or uses which were not fit for purposeand were costing much in maintenance. The Shire were working up a case for a newand were costing much in maintenance. The Shire were working up a case for a newCommunity Centre which would allow these community uses to be housed within oneCommunity Centre which would allow these community uses to be housed within onenew asset. By so doing the Shire could rationalise the old assets and open up newnew asset. By so doing the Shire could rationalise the old assets and open up newopportunities for private enterprise to develop. opportunities for private enterprise to develop. The Shire engaged CCS StrategicThe Shire engaged CCS StrategicManagement to prepare a business plan for the establishment of a multi-purposeManagement to prepare a business plan for the establishment of a multi-purposecommunity centre. One of the recommendations from this plan was thecommunity centre. One of the recommendations from this plan was theestablishment of a new centre located adjacent to the existing Visitor centre.establishment of a new centre located adjacent to the existing Visitor centre.Extensive community consultation informed what should be contained within theExtensive community consultation informed what should be contained within thecentre and included a New town library and telecentre (CRC), a multi purposecentre and included a New town library and telecentre (CRC), a multi purposecommunity hall and the provision of a cafe and commercial tenancies. Additionalcommunity hall and the provision of a cafe and commercial tenancies. Additionalcomponents were an exhibition and gallery space, stage and events venue.components were an exhibition and gallery space, stage and events venue. The The new newcommunity centre was costed at approx 11 million.community centre was costed at approx 11 million.

As Chair I recommended that the two projects be brought together and built on the siteAs Chair I recommended that the two projects be brought together and built on the sitebeing considered for the Community Centre, this was strongly supported.being considered for the Community Centre, this was strongly supported.An improved new shared facility was seen as a positive step to provide economies ofAn improved new shared facility was seen as a positive step to provide economies ofscale, increase scale, increase communitycommunity confidence and cohesion and to assist with the attraction and confidence and cohesion and to assist with the attraction andretention of population. retention of population. The Visitor centre was also to be incorporatedThe Visitor centre was also to be incorporated as the firstas the firstpoint of contact for visitors to the region. The relocation of the Exmouth Visitorspoint of contact for visitors to the region. The relocation of the Exmouth VisitorsCentre would allow the existing site to repurposed as the much needed new ChildCentre would allow the existing site to repurposed as the much needed new ChildCare centre for Exmouth.Care centre for Exmouth.

The timing proved perfect as the Gascoyne was receiving Revitalisation Funding fromThe timing proved perfect as the Gascoyne was receiving Revitalisation Funding fromthe Royalties for Regions fund and at last it was possible to bring all the work that hadthe Royalties for Regions fund and at last it was possible to bring all the work that hadbeen done to fruition. This funding was supported by Federal funding and funding frombeen done to fruition. This funding was supported by Federal funding and funding fromLotterywest and the Shire. Lotterywest and the Shire. The Ningaloo Centre was to provide a world class multidisciplinary research facilityThe Ningaloo Centre was to provide a world class multidisciplinary research facilitywithin, sitting alongside the TAFE which in turn would provide the training andwithin, sitting alongside the TAFE which in turn would provide the training anddevelopment complimentary to both Research, Industry and Tourism. They would bedevelopment complimentary to both Research, Industry and Tourism. They would beable to extend to marine and terrestrial based courses. This could encourage peopleable to extend to marine and terrestrial based courses. This could encourage peopleto come to Exmouth to study.to come to Exmouth to study.UNESCO's intergovernmental Oceanographic Commission expressed interest inUNESCO's intergovernmental Oceanographic Commission expressed interest inpromoting and utilising the Ningaloo Centre to train students from its 46 memberpromoting and utilising the Ningaloo Centre to train students from its 46 membercountries. The possibilities and opportunities to further develop Exmouth as acountries. The possibilities and opportunities to further develop Exmouth as aknowledge based economy are very real. knowledge based economy are very real.

Both projects were supported by strong Business cases and were supported by all of theBoth projects were supported by strong Business cases and were supported by all of thekey stakeholders in the whole Gascoyne community as a Flagship projects, the detail ofkey stakeholders in the whole Gascoyne community as a Flagship projects, the detail ofwhich is available from GDC and Shire of Exmouth.which is available from GDC and Shire of Exmouth.

The GDC remained a committed and strong partner throughout sitting on the projectThe GDC remained a committed and strong partner throughout sitting on the projectcommittee.committee.The Exmouth community was continually updated and consulted and there was strongThe Exmouth community was continually updated and consulted and there was strongsupport and much excitement and pride regarding the project.support and much excitement and pride regarding the project.There is no doubt the Ningaloo Centre will expand local employment opportunities inThere is no doubt the Ningaloo Centre will expand local employment opportunities inresearch, education, community services and tourism. research, education, community services and tourism.

The Ningaloo Alliance had been formed, key players such as UWA and TAFE wereThe Ningaloo Alliance had been formed, key players such as UWA and TAFE wereinvolved in all plans and discussions. The Alliance saw the value of the Ningaloo Centreinvolved in all plans and discussions. The Alliance saw the value of the Ningaloo Centreto serve as the hub connecting all of the scientific research nodes. Each of the Researchto serve as the hub connecting all of the scientific research nodes. Each of the Researchentities have committed to the vision, the priorities and responsibilities includingentities have committed to the vision, the priorities and responsibilities includingdelivering content to the Centre of their independent research elements, leading to adelivering content to the Centre of their independent research elements, leading to abroader understanding of the regional ecosystem and socio-economic environment. Thebroader understanding of the regional ecosystem and socio-economic environment. TheDurack TAFE are Anchor tenants, Management structures were agreed and the Shire ofDurack TAFE are Anchor tenants, Management structures were agreed and the Shire ofExmouth had taken full responsibility for the project. A partnership with WA MuseumsExmouth had taken full responsibility for the project. A partnership with WA Museumshad been developed.had been developed.

Funding was approved and tenders for Design and Construction were called for.Funding was approved and tenders for Design and Construction were called for.The project is nearing completion and is a State-of-the-art Centre intended to deliverThe project is nearing completion and is a State-of-the-art Centre intended to deliverResearch, education, tourism and community facilities. Research, education, tourism and community facilities. It is an Iconic, Landmark building which will offer Natural and Cultural History of the areaIt is an Iconic, Landmark building which will offer Natural and Cultural History of the areaand town. and town.

It will house the Ningaloo Visitor Centre, provide for conferences, cultural performances,It will house the Ningaloo Visitor Centre, provide for conferences, cultural performances,trade shows, training seminars. It has interpretive displays providing a Reef to Rangetrade shows, training seminars. It has interpretive displays providing a Reef to Rangeexperience. Visitors will be able to learn about the fragility of the Ningaloo Reef, Capeexperience. Visitors will be able to learn about the fragility of the Ningaloo Reef, CapeRange and the Exmouth Gulf. The centrepiece will be the Aquarium, a live example ofRange and the Exmouth Gulf. The centrepiece will be the Aquarium, a live example ofthe reef. the reef. The local community will be able to enjoy the space regularly with the Library,The local community will be able to enjoy the space regularly with the Library,Community Resource Centre, Toy library, cafe and indoor play area. It will house the newCommunity Resource Centre, Toy library, cafe and indoor play area. It will house the newTAFE campus which plans to align training with Local needs and environmental andTAFE campus which plans to align training with Local needs and environmental andmarine opportunities. marine opportunities. It would also provide a repository for Exmouth's History, a placeIt would also provide a repository for Exmouth's History, a placewhere Aboriginal Culture can be told and space available for travelling Museum andwhere Aboriginal Culture can be told and space available for travelling Museum andArt shows.Art shows.

The Ningaloo Centre will strengthen Exmouth and with its attractive exhibitions andThe Ningaloo Centre will strengthen Exmouth and with its attractive exhibitions anddisplays, add to the Tourism product on offer. In times of inclement weather it willdisplays, add to the Tourism product on offer. In times of inclement weather it willprovide a perfect option for both tourist and local. The Exmouth Visitor Centre servicesprovide a perfect option for both tourist and local. The Exmouth Visitor Centre servicesover 100 members from Exmouth, Coral Bay and the wider region. It provides a centralover 100 members from Exmouth, Coral Bay and the wider region. It provides a centralpoint for business information, tour and accommodation. A critical role in the economicpoint for business information, tour and accommodation. A critical role in the economic

growth of the region.growth of the region.

The centre will house the The centre will house the only Marine Research Centre between Perth and Darwin.only Marine Research Centre between Perth and Darwin.The Ningaloo Alliance partnership with UWA's Oceans Institute, together with ResearchThe Ningaloo Alliance partnership with UWA's Oceans Institute, together with Researchorganisations, organisations, such as CSIRO and AIMS, such as CSIRO and AIMS, will use the purpose built facilities for theirwill use the purpose built facilities for theirlaboratory work.laboratory work.

The decision making process for this project has been extensive, the risk assessment,The decision making process for this project has been extensive, the risk assessment,feasibility and business case(s) have undergone much scrutiny and rigour. feasibility and business case(s) have undergone much scrutiny and rigour. The tender followed due process and the Builder has delivered engaging many localThe tender followed due process and the Builder has delivered engaging many localcontractors and labourers meaning much of the money spent has remained in Exmouth. contractors and labourers meaning much of the money spent has remained in Exmouth. A procedural error in the process for awarding the Aquarium contract, as a result ofA procedural error in the process for awarding the Aquarium contract, as a result ofpressure to meet deadlines, has unfortunately resulted in an untidy end to what haspressure to meet deadlines, has unfortunately resulted in an untidy end to what hasbeen a wonderful project for Exmouth.been a wonderful project for Exmouth.

There is no doubt that there is value for money in this project, as the Ningaloo Reef andThere is no doubt that there is value for money in this project, as the Ningaloo Reef andNingaloo Coast experiences increasing visitation, this centre will assist in educating all toNingaloo Coast experiences increasing visitation, this centre will assist in educating all tounderstand, appreciate and care for this marvellous World Heritage Listed asset. understand, appreciate and care for this marvellous World Heritage Listed asset. For the community of Exmouth there will soon be vacant assets which can beFor the community of Exmouth there will soon be vacant assets which can berationalised and the Shire, wisely, will not need to throw good money after bad trying torationalised and the Shire, wisely, will not need to throw good money after bad trying toretain old buildings scattered around town.retain old buildings scattered around town.

This World Heritage Listed Ningaloo Reef and Cape Range belongs to Australia This World Heritage Listed Ningaloo Reef and Cape Range belongs to Australia and theand theWorldWorld as a whole and anything we can do to keep it healthy as a whole and anything we can do to keep it healthy and cared forand cared for is isimmeasurable and money well spent.immeasurable and money well spent.

This was Never a mere 'building project' - through its intended use it does not justThis was Never a mere 'building project' - through its intended use it does not justprovide a local asset in isolation but a significant National strategic assetprovide a local asset in isolation but a significant National strategic assetcontributing to science and sustainability both Nationally and Internationally.contributing to science and sustainability both Nationally and Internationally.

The current commissioner's own media statement (below)is quite correct:-The current commissioner's own media statement (below)is quite correct:-

Commissioner Ian Fletcher as posted on Friday, 26Commissioner Ian Fletcher as posted on Friday, 26thth May 2017 on the Shire May 2017 on the Shirewebpage;webpage;

Today’s announcement that Exmouth will host the 2019 International WhalesharkToday’s announcement that Exmouth will host the 2019 International WhalesharkConference is evidence the town’s Ningaloo Centre can become a centrepiece forConference is evidence the town’s Ningaloo Centre can become a centrepiece forregional tourism according to Shire of Exmouth Commissioner Ian Fletcher.regional tourism according to Shire of Exmouth Commissioner Ian Fletcher.Mr Fletcher said the conference, which attracted delegates from around the globe,Mr Fletcher said the conference, which attracted delegates from around the globe,would put Exmouth in the International spotlight and the Ningaloo Centre on the mapwould put Exmouth in the International spotlight and the Ningaloo Centre on the mapas a conferencing destination.as a conferencing destination.

‘The International exposure this will generate for the Ningaloo region and the World‘The International exposure this will generate for the Ningaloo region and the WorldHeritage Listed Ningaloo Coast is priceless,’ Heritage Listed Ningaloo Coast is priceless,’ he said.he said.‘The Ningaloo Centre will provide a ‘The Ningaloo Centre will provide a first classfirst class confer conferencing facility and we are ideallyencing facility and we are ideallyplaced to become a destination of choice for environmental, scientific and resourceplaced to become a destination of choice for environmental, scientific and resource

conferences.’conferences.’

Sincerely,Sincerely,

VM (Ronnie) FleayVM (Ronnie) Fleay

Contact details:Contact details:

From Date 21 June 2017

Vishnu Kadekodi

To

The special Inquirer,

Government Programs and Projects

Dear Sir,

I would like to make a brief submission on all the listed projects as a responsible and concerned

citizen.

Mature resource organisations spend a lot of time and efforts on front end of the projects to ensure

business risks are minimised. Each project undergoes a lifecycle from scoping, selection,

development and execution stages. The key theme is minimising the business risks in every possible

way. Perth is well known for this around the world and there is a lot of knowledge in project in client

organisations, engineering and contractor organisations. It is expected that 20% of the time and

efforts are spent on the front end of the project even before the executions starts. In my long

experience, I have seen similar arrangement in many parts of the world. There is a lot of ownership

and project failure consequences are severe on the personnel involved in the project management.

There is always a good governance and a lot of compliance requirements make the project work

quite transparent. The project blow outs do happen but that is due to long gap between the

development or technology changes in the interim. Any mega projects will have some amount of

inefficiency but to be properly managed.

What I have observed in WA government projects is that there are several interested parties and

most of them are for the commercial gain. These interested parties start swaying project decisions

to their favour while the project is being developed. One such project I can name was “shared

services” project in which external software companies had a major interest and understand

majority of the project personnel had a very little interest in it. In the end that project costed WA tax

payers as I remember over $2 billion. Hardly any heads rolled.

In my view, there must be a project management methodology for the Government projects based

on the best practises. All departments must follow the methodology and there must compliance

checks. All non-compliance must be severely audited and appropriate action taken.

People and WA Government have been managing projects for a long time. Despite that many of WA

Government projects have gone out of control and become a financial disaster. It is important that

every project needs to be independently audited and reasons for the financial mis management

need to be identified and necessary actions taken to avoid future recurrence.

Mature organisations that build the projects big or small believe in

Minimum whole-time life cycle cost-minimising capital cost through persistant value

engineering and a focus on fitness for the purpose

Shortest implementation time’

There are a few project fundamentals and all decisions are to be reviewed against those basics.

Development of a Project Charter high lighting project intent and clear deliverables

Single point accountability

Comprehensive front end loading. This means no project will proceed to execution unless

business risks are minimised and project is developed over a period of time doing option

analysis and selecting the one which best meets the outcome.

Minimise capital- Value engineering should have focus at the early phases of the project

The project team must have relevant and proven experience in WA Government projects.

The project team must be above board and there must not be any blemish on senior project

team members. The project team must be from the Government and not contractors who

have little stake in the outcome or vested interests.

After the project is approved, changes must be minimised. Project manager should resist all

changes.

Continuity of people across development phase and the execution phase. The project

personnel should stay on from development phase through execution as it will ensure

project knowledge is intact.

There must be periodical reviews to ensure project compliance all along.

All decisions must be transparent and where needed independent and unbiased expert

opinion is obtained.

There must be a score card in regards to schedule, cost and outcome and that should be

available to the public so that public can also take interest. Community and interested public

should be given an opportunity to keep an eye on the project performance.

On the conclusion of every project the project team should publish a report which has been

independently verified or audited providing a score card and also financial performance.

Sub optimal performance must be taken seriously and only performers should get on the

project team.

In conclusion, no project should be undertaken unless it meets a few critical parameters like

financially lucrative or environmentally responsible or community amenity.

Project must make a business sense.

Yours sincerely,

Vishnu Kadekodi

Original Message

From: Deane Spurge

Sent: Wednesday, 21 June 2017 7:53 PM

To: Inquiry into Government Programs and Projects <igpp@dpc.wa.gov.au>

Subject: Inquiry into Government Programs. Ord Irrigation Project

To The Special Inquirer

I wish to make a brief submission to this Inquiry. Because of the paucity of public information available, it is based

predominantly on personal observations and media reports.

I am unaware if the terms of the Inquiry into the contracts awarded under the Ord Irrigation Expansion Project cover

the awarding of the land area to an overseas company.

My observations are-

1. The awarding of the contract to the preferred developer was not justified or explained adequately, especially as

Australian parties were shortlisted.

2. Despite being fully aware of the terms of the agreement as leasehold land, apparently the developer after a

couple of years, intimated that developing a second stage of land (Knox Plain ), was unviable if the land wasn't

freehold.

3. The government resisted this initially, but eventually relented and agreed to the free-holding of public land to a

foreign company .The strategy by the preferred developer was basically one from a position of power- meet our

demands or we will walk away.

4. The project was touted as "The Food Bowl of the North", but nothing was done to ensure food was grown.

Apparently the proponents now say that sugar or broad-scale crops are the only viable option and for that they

need more land.

l

(Already almost 50 % of land in Ord Stage 1 is devoted to Indian Sandalwood.)

5. A continuous theme of the development was Aboriginal employment opportunities. What mechanism was put in

place to ensure that this continued well into the future? How many Indigenous employees does KAI (the preferred

developer) have currently?

6. I am unsure if this is within the Terms of Reference, but an interesting study would be the Landcorp development

of an industrial estate on Weaber Plains Road in Kununurra. This a local talking point of an extreme waste of tax

payers money. This is a fully

developed industrial estate with underground power, sewage, bituman roads, signage and fully landscaped

entrance statement or was until it was all slashed by the local shire) and 24 hr lighting.lt has been and still is

extensively advertised.

It is now an area for burnt out stolen cars and dumping rubbish. Anecdotally there is an oversupply of private

industrial land for sale in Kununurra currently.

Depending on the outcome of the Inquiry, a further, separate inquiry into the misuse of taxpayers funds in the

development of Ord Stage 2 may be warranted.

regards

Deane Spurge