SA Water has announced it will not renew its 10-year Adelaide metropolitan services alliance contract with Allwater when it ends in 2021.
Allwater, a joint venture between SUEZ and Broadspectrum, was awarded the $1.129 billion contract to manage Adelaide’s water and wastewater networks in 2011.
It will continue to operate and maintain services across the metropolitan area for the next two and a half years, until the contract ends on 1 July 2021.
SA Water General Manager Asset Operations and Delivery Mark Gobbie said it was important to reassess large commercial arrangements like the alliance to ensure they remain fit for purpose.
“The current alliance contract took effect in 2011, and since then our business has continued to evolve, as have our customers’ expectations,” Gobbie said.
“It’s prudent we take the opportunity to review our commercial arrangement, rather than extend the contract, and make sure it’s set up to provide the best benefits for our customers.”
SA Water is now considering the best service delivery model to meet its customers’ expectations, and the commercial arrangements needed to achieve this.
“We will go to market later this financial year to understand the best future service delivery options and partners, with opportunities for our current partners and potential new ones to respond,” Gobbie said.
“Our priorities – and those of our customers – are the reliable delivery of safe, clean drinking water and dependable sewerage services, with low and stable pricing over time, and these will inform our approach.”