- Cocos (Keeling) Islands, West Island - Seawater Reverse Osmosis Plant
Department of Infrastructure, Transport, Regional Development, Communications and the Arts
2.1The Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) seeks approval from the Committee to proceed with the construction of a Seawater Reverse Osmosis Plant (SWRO) on West Island, Cocos (Keeling) Islands.
2.2The total estimated cost of the project is $19.6 million (excluding GST).
2.3The project was referred to the Committee on 7 March 2023.
Conduct of the inquiry
2.4Following referral, the inquiry was publicised on the Committee’s website and via twitter.
2.5The Committee received two submissions and one confidential submission. A list of submissions can be found at Appendix A.
2.6On 28 February 2023 the Committee visited the site of the proposed SWRO on West Island. On 21 April 2023 the Committee received a project briefing and held public and in-camera hearings at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
2.7The works will supply drinking water to the community of West Island, Cocos (Keeling) Islands (CKI). West Island has a population of approximately 140 residents and is located in the Indian Ocean, 2 936 kilometres north-west of Perth. The Australian Government is responsible for delivering essential services to CKI, including drinking water.
2.8Drinking water on West Island is currently sourced from a freshwater lens located below the airfield. This lens has three galleries, two of which are not used due to contamination. The limit of water that can be drawn from the remaining gallery is 80kL/day, which only just meets the community’s current water requirements.
2.9The lens is considered vulnerable to further contamination, including pollutants from the surface and seawater intrusion. The groundwater vulnerability of the remaining gallery has been assessed as ‘extreme’. The airfield is about to undergo significant upgrade works, which will increase the risk of contamination and increase water demand beyond the existing capacity.
Options considered
2.10DITRDCA advised it had considered three options:
- Option 1 – Do nothing
- Option 2 – Add additional galleries to the existing lens or the Northern lens to increase water production
- Option 3 – Supply and install SWRO.
- Option 3 is the preferred option. Option 1 has unacceptable consequences for public health and safety. Option 2 was discarded as ‘use of the groundwater from these sources is not considered suitable by Water Corporation and the Western Australia Department of Water and Environmental Regulation for a public drinking water supply’.
Scope of the works
2.12The proposal is for the installation of a new 200kL/day SWRO plant and supporting works. The SWRO plant will be installed next to the existing Wastewater Treatment Plant (Sydney Highway, West Island).
2.13This site has the following works:
- two fabricated buildings for the SWRO plant
- a shade structure for outside components
- support facilities such as a laboratory, kitchen, ablutions, switch room and workshops
- a vehicle and pedestrian access road and hardstand areas within the site
- drainage works
- secure fencing and lockable vehicle gates.
- The SWRO obtains seawater through beach bores. Drilling of these bores was completed in November 2022 (the Committee approved the drilling works in February 2022). The proposed bore works include:
- installation and fit-out of four beach bores (three duty, one standby)
- a new seawater feedline from the bore field to the SWRO.
- The SWRO will be fully automated with remote access to instrumentation and control. The works include the supply and installation of optic fibre communications cable to Water Corporation’s CKI West Island office. There will also be an upgrade to the existing local power network to both the plant and the bore sites, including a redundancy supply.
- The works include the supply and installation of a three-kilometre water pressure main from the SWRO plant to the existing West Island ground water tanks (1 and 2) which connect into the main water supply.
- The SWRO process creates brine waste. The proposed works include the supply and installation of a brine disposal pump station and disposal pipeline. Disposal will be integrated with the existing wastewater treatment outfall.
Community consultation
2.18DITRDCA advised that it has undertaken consultation with the following key stakeholders:
Australian Government:
(1). Administrator of the Territory of the Cocos (Keeling) Islands
(2). Indian Ocean Territories Administration
(3). Indian Ocean Territories Power Service
(4). Department of Climate Change, Energy, the Environment and Water
(5). Department of Defence
b. Western Australian Government
(1). Department of the Premier and Cabinet
(2). Department of Health (water quality)
(3). Department of Water and Environmental Regulation
(4). Department of Planning, Lands and Heritage
c. Local Government
(1). Shire of Cocos (Keeling) Islands
d. Other stakeholders
(1). Cocos (Keeling) Islands residential and business community
(2). AECOM (Department of Defence contractor)
(3). Fulton Hogan (Department of Defence contractor)
(4). Toll (CKI Airport operator)
(5). Linx (Port operator)
2.19The local community is aware of the risk to the drinking water and is in favour of the SWRO project. DCITRDA advised:
The main concern of the community is the risk to the current drinking water source and the risk of contamination and what that could mean for them. They are familiar with the existing Home Island plant, which has been very reliable and well received by the community. The general consensus we are hearing on island from the West Island community is that they're looking forward to having a secure and reliable source.
2.20The Committee also received a submission from the Indian Ocean Territories Regional Development Organisation, expressing its view that the SWRO will result in positive outcomes and lasting benefit to the local community and economy.
Cost
2.21The estimated cost of the project is $19.6 million (excluding GST). This includes management and design fees, construction costs, contingencies, and a provision for escalation.
2.22DITRDCA will engage a design and construct head contractor to deliver the works, using subcontractors where needed. The head contractor will be selected from a list of contractors approved by the Federal Safety Commission and ‘tier 1 Water Corporation approved contractors’.
2.23DITRDCA do not expect any increase in operating costs as a result of the proposed works, with future maintenance costs being managed from DITRDCA’s ongoing appropriation.
2.24DITRDCA provided further details on project costings in its confidential submission and during an in-camera hearing. The Committee is satisfied with the rationale underpinning the project costing.
Revenue
2.25The project will not create additional revenue. Users will continue to pay Water Corporation for sewerage and water services, with prices fixed under the Cocos (Keeling) Islands Utilities and Services (Water, Sewerage and Building Application Service Fees) Determination 2016. The cost per kilolitre is benchmarked against costs in Western Australia, and is unrelated to the cost of production. The water services revenue is remitted back to the Commonwealth.
Public value
2.26DITRDCA considers that the project is in the public interest and will provide significant benefits to the West Island community.
2.27Most importantly, the project will protect public health and safety by ensuring a future supply of safe drinking water. Conversely, a failure to provide a new supply will pose a risk to public health through the vulnerability of the existing water supply to contamination. DITRDCA advises that the emergency provision of water would be ‘expensive and logistically challenging’ given the remoteness of CKI from mainland Australia.
2.28DITRDCA considers that the project also has value to future economic development on CKI, stating:
…water security is an essential precursor for economic diversification and is required to support industries across CKI, including tourism, education and hospitality, as well as attracting investors by providing certainty in the provision of potable water, which will not impede the establishment, maintenance and growth of businesses or industries.
2.29The proposed works may also provide employment opportunities for local industry in the short-term, primarily in site preparation and clearing vegetation, and in the construction labour market.
2.30In its submission, the Indian Ocean Territories Regional Development Organisation supported the SWRO’s role in long term economic growth, stating:
In addition to providing long-term water security, the proposed Seawater Reverse Osmosis Plant on West Island will remove one of the numerous barriers to sustainable tourism and other development. It will also provide short-term contract and employment opportunities for residents and local businesses.
Committee comment
2.31The Committee was satisfied that the proposed project has merit in terms of need, scope, and cost.
2.32It is clear that the existing water supply is vulnerable to contamination and will not meet future demand. The SWOR plant allows for a secure source of drinking water that will support the development of CKI into the future.
2.33The Committee notes DITRDCA’s efforts to ensure that the SWOR is fit for the challenges of this location and to reduce ongoing maintenance costs.
2.34Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
2.35The Committee recommends that the House of Representatives resolve, pursuant to Section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Cocos (Keeling) Islands – West Island, Seawater Reverse Osmosis Plant Project.
2.36Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post‑implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.