NSW Audit Office - Financial Reports - 2005 - Volume 4 - Sydney Water Corporation

Sydney Water Corporation AUDIT OPINION The audit of the consolidated financial report of Sydney Water Corporation (Sydney Water) and its controlled entities for the year ended 30 June 2005 resulted in a qualified Independent Audit Report. The qualification related to assets and liabilities from the Build-Own-Operate (BOO) schemes not being recognised in Sydney Water's statement of financial position. The audit report for 2003-04 was similarly qualified. KEY ISSUES Desalination Plant Sydney Water has short listed three consortia to submit a proposal to design, construct, operate and maintain a desalination plant. This follows a feasibility study, for which Sydney Water was given responsibility in September 2004, that found that a desalination plant represents a viable method of supplementing supplies of drinking water for Sydney. Sydney Water estimates that it would cost $2.0 billion to construct a 500 megalitre/day desalination plant and approximately $100 million per year to run it. On a purely financial basis, this compares favourably against recycling water into the drinking water supply in established areas, where Sydney Water estimates that it would cost $2.8 billion to build the facilities to recycle wastewater, and a further $140 million a year to run the facilities. At 31 August 2005, Sydney Water had spent $2.0 million on the desalination project. Security Upgrade Program Sydney Water’s Internal Audit unit has reviewed the outcomes of ...