Sphere Quarterly Newsletter
Quarter 4 2021 Highlights | February 2022
Waste snapshot
Veolia's proposed acquisition of Suez not opposed by the ACCC: the Australian Competition and Consumer Commission (ACCC) announced it would not oppose the proposed acquisition of Suez by Veolia in Dec-21, after accepting three court-enforceable divestiture undertakings from Veolia.
Sale of Beijing Capital's NZ waste business: the sale process for Beijing Capital's New Zealand waste business remains ongoing, with Citi Group appointed as financial advisor in late 2021 to lead the sale process.
2021 Australian Infrastructure Plan: Infrastructure Australia (IA) published the 2021 Australian Infrastructure Plan in Sep-21. This is the first year that a Waste Infrastructure Chapter has been included in the broader plan, in recognition of the need for market reform and domestic infrastructure solutions for Australia's waste and resource recovery sector. Sphere (in partnership with PwC) was pleased to advise IA in relation to the development of the Waste Infrastructure Chapter.
NSW EfW plan: the New South Wales (NSW) Government released the State's Energy from Waste Infrastructure Plan in Sep-21. A notable change in the plan restricts development of EfW projects to four identified priority infrastructure areas: West Lithgow, Parkes, Richmond Valley and South Goulburn.
VIC WtE framework: the Victorian Government released the State's Waste to Energy Framework in Nov-21, with a focus on implementing the one million tonne per year cap on the amount of waste that can be sent to thermal WtE facilities to 2040. The Government also committed to reviewing the framework in 2023.
NT circular economy strategy: the Northern Territory Government released the draft NT Circular Economy Strategy 2022-27 for public consultation until 14-Feb-22. As part of the draft Strategy, the Government committed to investigating the design and implementation of a waste levy framework.
ReMade in Australia: the Commonwealth Government launched the ReMade in Australia online and print campaign in Dec-21, encouraging Australians to recycle more.
Victorian projects receive grant funding: the Commonwealth and Victorian Government jointly announced the awarding of $36.5M in grant funding to 13 new projects under the Recycling Modernisation Fund (RMF) and Recycling Victoria Infrastructure Fund (RVIF) in Jan-22.
Water snapshot
Preferred route announced for the New Dungowan Dam Pipeline: the NSW Government announced the preferred route for the new 55km Dungowan Dam Pipeline in late Oct-21. Development of the Final Business Case for the proposed New Dungowan Dam remains ongoing.
Paradise Dam improvement project: the Queensland Government announced in Dec-21 the preferred option for the Paradise Dam Improvement Project is to return the dam to its original full supply level (300GL). Early works are expected to commence in 2023 and major works in 2024.
Divestment of Suez Water: Veolia executed an s87B Undertaking to the ACCC in Dec-21, outlining the divestment of Suez Water in several countries to a consortium of investors as part of the global transaction.
Select committee report on proposal to raise the Warragamba Dam: the interim report of the NSW Legislative Council Select Committee on the proposal to raise the Warragamba Dam Wall was released in Oct-21. The inquiry remains ongoing, with the NSW Government's response to the interim report due in Apr-22.
VIC annual water outlook: the Victorian Government released the State's Annual Water Outlook in Dec-21. Under an average climate scenario (based on climate data collected since 1975), no water restrictions are expected for the next twelve months for any of the water corporations.
NSW regional water strategies: the NSW Government continues to progress development of the regional water strategies. Implementation of the final strategy for each of the regions is scheduled for completion in 2022.
Sphere at a glance
Branding update: this year Sphere is looking a little different. After almost four years the Sphere team has refreshed the firm's brand identity. The new look and feel has rolled out across all digital platforms including a brand new website and resources to showcase the team’s experience and areas of expertise. Check it out here.
Team expansion: Boyd Russell has joined Sphere as a Director. Boyd is an experienced financial and commercial advisor to both public and private infrastructure clients, having previously spent six years in various roles at top tier professional services firms EY and PwC.
NED role appointment: Kate Dryden has been appointed as a Non-Executive Director to the Board of Sydney Water. Kate's appointment is for an initial 3-year period, where she is a Member of the Audit and Risk, Planning and Infrastructure, People Culture and Remuneration, and Nominations committees.
Successful contract closes: Sphere recently supported Coliban Water's renewal of their O&M Contract with ServiceStream for a 5-year period from Sep-21 and helped Permeate Partners in the sale of its water business to Water Utilities Australia. Congratulations to all parties involved in both transactions.