Project Overview

The Victorian Desalination Plant, also known as Wonthaggi desalination plant was announced by the Victorian Government in June 2007, was designed to address water shortages.  It is one of the largest desalination plants in Australia. AquaSure was awarded the contract to finance, and to DBO (Design, Build, and Operate) under a PPP (Public Private Partnership) for 30 years. The initial construction cost allocated for this project was USD 3.5 Billion. The project began its commercial operations in 2012. It was one of the largest PPP projects worldwide during the GFC (Global Financial Crisis).

The Victorian Desalination plant can produce 440 Megalitres of desalinated water per day. This water serves the drinking water needs of 4.5 Million people every day. It was imposed as a part of “Our Water, Our Future plan” in June 2007. The Victorian Desalination Plant was awarded the Desalination Plant of the Year by Global Water Awards in 2013. 

Project Background

The Victorian Desalination Project was initiated during the Millennium Drought when water storage levels dropped to 16.5% in Melbourne's largest reservoir. Melbourne Water initiated this Wonthaggi desalination plant to meet severe water shortage demands and secure the projected water demands in the future. This desal plant provides up to 150 Billion liters of high-quality drinking water annually. This output meets approximately one-third of Melbourne's yearly water requirements. This is equivalent to around 60,000 Olympic-sized swimming pools, thus making it one of the largest desalination plants in Australia.

The state government initiated the Victorian Desalination Project in June 2008 to address water shortages through a Public Private Partnership (PPP) with AquaSure. Awarded on 30 July 2009 for USD 3.5 Billion, the project included the construction of a desalination plant and an 84-kilometre pipeline completed by December 2012. It employed over 10,500 workers, achieving 18 million man-hours without serious injuries, and boosted Victoria's economy with USD 1.3 billion in local supply contracts.

During construction, efforts included extensive stakeholder management and sourcing 100% of civil components locally. AquaSure and TDJV invested over USD 500,000 in community support, while state-funded infrastructure improvements and water supply enhancements benefited local areas like Wonthaggi and South Gippsland.

Wonthaggi Desalination Plant Location

The Victorian desalination plant is located in Dalyston, on the Bass Coast in southern Victoria. It is built on Lower Powlett Rd, Wonthaggi, Australia. 

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Victorian Desalination Plant Cost

The total project cost, including capital and other operating costs, is USD 5.7 Billion. The nominal costs estimated over the 30-year PPP period is USD 23.9 Billion.

Project Timeline

Technical Specifications

The marine structures of the Victorian Desalination Plant include two underground tunnels located 15 meters below the seabed, with lengths of 1.2 km and 1.5 km, each having a 4-meter internal diameter. These tunnels have associated marine intake and outlet structures more than 20 meters below the sea's surface. The water transfer pipeline spans 84 km with a diameter of 1.9 meters. It is a two-way pipeline designed to provide desalinated water or catchment supplies to communities throughout Melbourne, South Gippsland, and Westernport as needed.

Desalinated water from Wonthaggi is transported 84 kilometers to Melbourne through an extensive underground pipeline system. The pipeline consists of over 6200 individual segments, each 1.93 meters in diameter and 13.5 meters long, weighing approximately 13 tonnes per segment. Designed to handle up to 200 billion liters of water annually, it integrates into Melbourne’s existing water distribution network at Berwick. 

Alongside the pipeline runs a significant infrastructure component: a 220kV High Voltage Alternating Current (HVAC) power cable, recognized as the world’s longest of its kind during construction. This cable powers the desalination plant and is now managed by Ausnet Services under contract with AquaSure. Landscape architects designed and built the entire plant 20 meters above sea level to conserve the cultural heritage ecological reserve. Thus reducing the energy needed to collect seawater for the Wonthaggi desalination plant and safeguarding its ecological value.

Contractors & Investors

Aquasure was awarded the BOOT contract (Build, Own, Operate, Transfer) under a PPP of 30 years from the time of commission. Other contractors involved in this are Degrémont, Macquarie Capital, and Thiess. The project was commissioned in 2012 and will be maintained and operated by Aquasure until 2039. Additionally, Aquasure is the sole financier of this entire project.  

WaterSure integrates the expertise of SUEZ and Ventia to provide water security. SUEZ specializes in providing sustainable water to seven million Australians through Melbourne's water supply. Venetia's capabilities cover the entire water cycle, operating and maintaining desalination and potable water treatment.

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Conclusion

The Victorian Desalination Plant ensures water security for Melbourne and surrounding regions. With the capacity to produce 440 Megalitres of desalinated water per day, it serves the drinking water needs of 4.5 million people daily. Initiated during the Millennium Drought, when water levels in Melbourne's largest reservoir dropped to 16.5%, the plant now supplies up to 150 billion liters of high-quality drinking water annually, meeting approximately one-third of Melbourne's yearly water requirements. This USD 5.7 Billion project, funded and operated by AquaSure, stands as one of the largest desalination plants in Australia, showcasing the effectiveness of public-private partnerships in addressing severe water shortages and ensuring sustainable water management.

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