Assets and infrastructure
The past year has been notable not only for the infrastructure projects we have delivered but also for the way we have delivered them.
In 2020/21, we progressed and delivered almost all of our water supply augmentation projects, adding to Auckland’s supply capacity by more than 100 million litres per day (MLD) at an investment of $224 million. While these were in response to the 2019/20 drought, they will also boost the region’s overall resilience during the coming years.
In addition, we advanced several of our long-term projects across Auckland:
The scale of our infrastructure programme is enormous, as it should be, to cater for a growing population. This carries huge implications for increased emissions as we continue to build new installations. So our focus in the past year has also been on understanding, designing and delivering low-carbon infrastructure through our Enterprise Model approach to integrated programme delivery. This is also aligned with our 40:20:20 vision for reducing carbon in infrastructure by 40%; reducing cost by 20%; and improving health and safety outcomes by 20% by 2025.
Our efforts in this area have been recognised in a recent report by the UK’s Construction Leadership Council (CLC) as an international best-practice example, highlighting our Enterprise Model as a climate-friendly approach to infrastructure delivery.
There is considerable intensification occurring in our eastern and central-city catchments. The Tamaki Regeneration Company (TRC) and Kāinga Ora are increasing the number of homes significantly in the Tāmaki, Glen Innes and Panmure areas in the east, and Mt Roskill, Ōwairaka and Oranga more centrally. They are targeting at least a threefold increase in dwelling numbers while they maintain the existing social housing stock in the area and provide additional housing for rent and private sale.
We have been working with these two organisations, specifically in managing wastewater capacity, to mitigate any adverse effects of the redevelopment on our network and the environment. Since the wastewater flows from this area are highly influenced by wet weather, we are planning to replace old wastewater pipes that connect each house to our network as well as investigate potential improvements to the public water and wastewater networks.
Our customers expect safe and reliable services every day. This means investing sufficiently so our water and wastewater networks can withstand disruptions and operate with minimal impact on our customers or the environment.
To build a resilient water and wastewater system, and ensure reliability of service, we will invest about $10.2 billion in renewing and upgrading critical assets over the next 20 years. This is a significantly higher investment in renewals than ever before and makes up almost half of the total investment allocated in our latest asset management plan.
This investment is also a reflection of the shift towards a proactive rather than reactive asset renewal strategy and will result in improved service levels. A proactive renewal strategy will lead to leakage reduction in the water network and infiltration reduction in the wastewater network, preserving water as well as network and treatment capacity for customers. An analysis of our operations by the Water Industry Commission of Scotland in 2020 concluded that proactive renewal of assets generally lead to lower operating costs and more efficient delivery of services in the long term. Find the detailed renewal programme in our latest asset management plan.