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Re-plumbing irrigation in the Murray Darling Basin; an analysis of five years of Australian Government investment Richard McLoughlin

Murray Darling Basin Plan

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Re-plumbing irrigation in the Murray Darling Basin; an analysis of five years of Australian Government investment Richard McLoughlin. Murray Darling Basin Plan. The Government has committed to implementing the Murray Darling Basin Plan on time and in full. - PowerPoint PPT Presentation

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Page 1: Murray Darling Basin Plan

Re-plumbing irrigation in the Murray Darling Basin; an analysis of five years of Australian Government investmentRichard McLoughlin

Page 2: Murray Darling Basin Plan

The Government has committed to implementing the Murray Darling Basin Plan on time and in full.

This includes the commitment to bridge the gap by recovering 2750 GL LTAAY of water for the environment.

Murray Darling Basin Plan

Page 3: Murray Darling Basin Plan

Sustainable Rural Water Use and Infrastructure Program

The Government’s vehicle for water recovery.

Over $10 billion

Water savings are recovered for the environment in order to ‘bridge the gap’ to the sustainable diversion limits under the Murray Darling Basin Plan through three main components:

Three components:

1. Irrigation infrastructure projects; 2. Water purchase and 3. “Supply measures”

Page 4: Murray Darling Basin Plan

0

500

1000

1500

2000

2500

3000

Indicative residual purchasing needed to reach 2,100 GL

Indicative future infrastructure* yield

Down by as much as 650 GL ('supply measures' that achieve envir-onmental outcomes with less water)

Any shortfall below 650 GL will be re-covered from 2016

Up by as much as 450 GL ('efficiency measures' with no adverse ef -

fect on social or economic outcomes)

Contracted SRWUIP and SARMSP infra-structure* recoveries

Contracted purchases and

other Commonwealth recoveries

State recoveries 166 GL

Total estimated infrastruc-ture yield

Application of SDL Ad-justment Mechanism in

2016

Held environmental

water*1,900 GL -contracted recoveries

which count towards

'bridging the gap' to the

SDLsas at

31 March 2014

2,100 GL

2,750 GL

3,200 GL

Page 5: Murray Darling Basin Plan
Page 6: Murray Darling Basin Plan

SRWUIP Infrastructure

The majority of rural water infrastructure funds have been committed to projects in the Murray-Darling Basin for improving the operation of off-farm delivery systems and helping irrigators improve on-farm water use efficiency.

Water savings are shared between the Australian Government for environmental use and irrigators for consumptive use, supporting increased productivity and economic activity in regional communities.

Page 7: Murray Darling Basin Plan

SRWUIP Infrastructure

SRWUIP Infrastructure

State Priority Projects (up to $3.2b)

Other commitmentsinclude:

State led projectsCommonwealth led

projects

Victoria $1,103m

South Australia $420mQueensland $160m

New South Wales $708m

Australian Capital Territory $85m

NSW Private Irrigation Infrastructure Operators Program

South Australia Private Irrigation Infrastructure Program

Strengthening Basin Communities

On-Farm Irrigation Efficiency $450m

Irrigation in Tasmania

Page 8: Murray Darling Basin Plan
Page 9: Murray Darling Basin Plan

Designing rural water infrastructure programs

• Consultation with industry has helped ground programs in local/industry experience

• Programs like NSW Private Irrigation Infrastructure Operators Program (PIIOP) see locally-driven design for major system refurbishment

• Fit for purpose and meeting local needs• Design built on good planning• Sound technical underpinning• Properly costed• Competent project management• Positive cost benefit

Page 10: Murray Darling Basin Plan

Types of Infrastructure Projects

– Planning, investigations and project design

– Works on irrigation systems off farm - modernisation and rationalisation

– Works on farm to improve water use efficiency

– Works to improve ecological health and restore natural flows

– Water saving municipal projects – e.g. storm water harvesting

Page 11: Murray Darling Basin Plan

Who are delivering the projects?

State government departments e.g. water, primary industry, environment

Irrigation infrastructure operators Irrigation industry associations Industry commodity bodies

e.g. rice-growers, tomato growers Individual irrigators Catchment management (resource management) authorities

Local government Water utilities CSIRO (sustainable yields studies)

Page 12: Murray Darling Basin Plan

Upgrading irrigation systems off farm

Works to improve efficiency and timeliness of irrigation water delivery , e.g.

– Fixing/replacing leaky old systems– Lining channels or replacing channels with pipes– Automation to improve water delivery– Metering upgrades to meet modern efficiency standards– Reconfiguring and rationalising channel systems and farm off-takes

Examples:• Vic Goulburn-Murray Connections Program• NSW Private Irrigation Infrastructure Operators Program

Page 13: Murray Darling Basin Plan

Upgrading Irrigation Systems On farm

Works on farm to deliver and use water more efficiently and increasing productivity, e.g.

– Improving on farm storage and tail water recirculation system– Installing pipes and risers– Installing drip irrigation systems and centre pivot irrigation as an alternative to the

traditional flood irrigation

Examples:• On-Farm Irrigation Efficiency Program in the Southern Basin• Victorian Farm Modernisation Program • QLD Water Use Efficiency Program• NSW Pilot - Farm Modernisation in Gwydir & Border Rivers

Page 14: Murray Darling Basin Plan

Benefits from irrigation infrastructure investment

1.Community/industry support for irrigation infrastructure investment programs is generally strong

i. creates jobs during roll-out

ii. underpins long-term viability and economic sustainability of irrigation industry and regional communities.

2.Completed projects have demonstrated improved productivity benefits:

i. increased crop rotation abilityii. reduced labour costsiii. increased crop water use efficiencies iv. improved soil management v. reduced maintenancevi. reduced weed control requirementsvii. farmer’s share of water savings available for production

Page 15: Murray Darling Basin Plan

Monitoring and Evaluation – NSW PIIOP example

1.Regular contact with grantees to discuss progress and issues

2.Milestone payments with evidence of completion of works and audited financial reports

3.Financial reviews to ensure contract compliance

4.Workplace Health and Safety reviews to ensure implementation of legislated requirements

5.Visits by department staff to view works

6.Assisting grantees to provide detailed information on the program’s key performance indicators

Page 16: Murray Darling Basin Plan

Analysis of SRWUIP investment in Centre Pivots

State Pivots funded

Average Area Irrigated (Ha)

Total Area Irrigated (Ha)

Capital Cost (GST excl)

Cost/Ha Irrigated

Qld HHW 9 69 618 $1,574,388 $2,546

NSW PIIOP 9 55 499 $1,858,640 $3,722

Vic Farm Mod

13 51 667 $2,650,155 $3,973

OFIEP Rd 1 35 50 1,760 $5,555,172 $3,157

OFIEP Rd 2 64 45 2,892 $9,791,606 $3,386

Total 130 50 6,437 $21,429,911 $3,329

• Initial analysis of 130 centre pivot irrigators funded under SRWUIP.

• In general, costs decrease with increased area under irrigation.

Page 17: Murray Darling Basin Plan

0 50 100 150 200 250 300 350 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

f(x) = 33227.3930189294 x^-0.594006943750066R² = 0.520267281104025

Cost of Centre Pivot Irrigators funded under SRWUIP

Cost/Ha IrrigatedPower (Cost/Ha Irrigated)Average

Area under irrigation (Ha)

Capi

tal C

ost (

$/Ha

)

OFIEP Rd 2

Qld HHW

Vic Farm Mod

Page 18: Murray Darling Basin Plan

Liebich Estates – PIIPSA

• Wine grape and citrus in the SA Riverland

• Included upgrades to existing infrastructure, new

pumps, automation and soil monitoring

• On-farm water use reduced from 10ML/Ha to

6ML/Ha.

Page 19: Murray Darling Basin Plan

Trangie-Nevertire Irrigation Scheme

• Irrigation cooperative in NSW Macquarie River

catchment

• Targeted “whole of system” approach to channel distribution system and

on- farm water loss.

• Returned water savings to the Commonwealth of nearly 30GL.

• Reduced ‘boom or bust’ extremes of water supply

Page 20: Murray Darling Basin Plan

Lachlan Catchment Management Authority

• Regional delivery partner coordinating irrigators around

Parkes NSW

• Implemented a water storage and reuse scheme

utilising lateral move irrigators

• Reduced water use by 3.7ML/Ha

• Enables consistent production level and increased

financial sustainability

Page 21: Murray Darling Basin Plan

Where to next?

• Release of the Water Recovery Strategy

• Government priority for future recovery of water through infrastructure investment.

• Work with Basin States to develop proposed projects, such as environmental works and measures, that can deliver Basin Plan environmental outcomes with less water, thus leaving more water available for consumptive use.

Page 22: Murray Darling Basin Plan

Questions & Discussion