Clare Valley water infrastructure
The Clare Valley Water Project is investigating water supply and delivery options to provide security for existing and new Clare Valley water users.
The project supports South Australia’s Growth State Plan to achieve:
- an increase in Gross State Product to an average rate of 3% per annum
- the South Australia’s Food Wine and Agribusiness Plan for Growth to deliver $23 billion by 2030
- the agriculture sector’s (National Farmers Federation) target of $100 billion in farm gate output by 2030.
Additional water infrastructure in the Clare Valley region will:
- increase productivity for local primary industries and other beneficiaries of new water
- help generate employment opportunities
- facilitate economic benefits for the broader region
- improve climate resilience of primary industries
- provide access to secure and affordable water
- support other industries in Clare Valley.
Proposed project outcomes
A preliminary business case is the first step towards increasing local water supply and security. It will review, assess and shortlist options for a viable solution to meet the water demands of producers in the Clare Valley.
The project will develop a scheme that:
- increases reliability and overall productivity of the Clare Valley primary industries
- provides climate resilience by starting the growing season with a local storage that has been filled with a significant volume of water during the off season
- supports regional economic stimulation through increased investment and tourism
- improves the use of state-owned infrastructure
- allows irrigators to make informed, long term investment decisions within the region
- encourages industry growth, providing enhanced employment opportunities.
Status
The project is in the preliminary business case phase.
This phase will assess and shortlist potential water infrastructure options. It will measure existing and future industry demand for water, including water volumes, quality and price, that is economically and financially viable to supply and deliver.
Kellogg Brown and Root Pty Ltd (KBR) has been engaged to develop a preliminary business case.
Key activities
KBR will:
- understand industry demand for water, including quantity, quality, uses and willingness to pay in Clare Valley
- 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 as they relate to the project
- assess options on water infrastructure solutions for Clare Valley
- provide high level cost estimates of each water infrastructure option in order to compare projected end user costs.
Communications and engagement
A key priority of the project is for KBR to engage early with key stakeholders such as:
- existing water customers
- potential new primary producers and users
- current infrastructure owners
- industry stakeholders.
Timelines
The preliminary business case is anticipated to be delivered by the end of November 2022.
Further updates will be provided as the project progresses.
Next steps
The preliminary business case provides an evidence base for government to consider next steps including whether to proceed to a detailed business case.
There has not yet been any government commitment or budget allocation for this project beyond this current phase.
Should a detailed business case be recommended, we will seek funding for developing this.
News
- New water for Clare in the pipeline – PIRSA media release 17 February 2022
- Clare Valley water supply preliminary business case – National Water Grid Authority
Supply availability review report
A desktop supply availability review report was completed in December 2021 to investigate and assess the water supply options for the Clare Valley, and inform the preliminary business case.
A copy of a redacted report is available on request via:
Anna Baum – Executive Officer
Clare Valley Wine and Grape Association
Email: anna@clarevalleywine.com.au
Partners
The Department of Primary Industries and Regions (PIRSA) is leading this initiative, in partnership with:
- the Clare Valley Wine and Grape Association (CVWGA)
- the Department of Treasury and Finance (DTF)
- the Department for Environment and Water (DEW)
- Infrastructure SA (ISA)
- SA Water.