ICG, Veolia win $152m Australian water treatment project

The new scheme will back operations of Springvale mine and Mount Piper Power Station, providing up to 15% of energy demand in New South Wales.

France’s Veolia Group and Australian fund manager Infrastructure Capital Group have been chosen to deliver a new water treatment plant in New South Wales for Springvale Mount Piper Power Station.

Veolia, through its Australia and New Zealand water unit, will be responsible for managing and operating the pipeline and treatment facility over a 15-year period after construction completion in mid-2019 under a build, own, operate-and-transfer contract.

The project, with a total cost of A$200 million ($152 million; €128 million), reached financial close on November 14. No further transaction details were disclosed. The environmental solutions specialist for the scheme said the contract is projected to offer around A$400 million in revenue for Veolia over the coming 17 years.

Commissioned by EnergyAustralia and the Springvale Joint Venture, this project will transfer water from Springvale mine to EnergyAustralia’s Mount Piper Power Station, which can supply up to 15 percent of the state’s power demand, and treat and reuse the mine water as industrial cooling water for the power plant.

The water treatment facility should also ensure excess water discharge complies with relevant environmental obligations, and implement a brine extraction and crystallisation process to enable both the mine and the power station to continue operations.

“A key piece of regional infrastructure, the plant will see the construction of a pipeline to divert water discharged from the Springvale Mine away from the Coxs River and avoid mine water being related into Sydney’s drinking water catchment,” said Gilbert + Tobin, the legal advisor for the sponsors on the deal.

Paris-listed Veolia has its core business in water, waste and energy management solutions while ICG manages more than A$1.7 billion across two funds and separate accounts invested in transport, utilities, renewables and power sectors.