SA Water has announced that it will end its ten year contract with Adelaide Metropolitan Services in 2021, as stated in the terms of the agreement.
SA Water’s partner Allwater (a joint venture of SUEZ and Broadspectrum) will continue to operate and maintain water and sewerage networks across the metropolitan area for the next two and a half years.
SA Water General Manager Asset Operations and Delivery, Mark Gobbie, said it is sound business practice to review 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,” Mr 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.
“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.”
SA Water will now consider the best service delivery model to meet its customers’ needs and expectations, and the most contemporary commercial arrangements needed to achieve them.
“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,” Mr Gobbie said.
“Our current contract with Allwater has more than two and a half years to run and as we operate 24 hours a day, seven days a week, the delivery of services on which our customers depend remains our central focus.”
Lauren Butler is the assistant editor for Utility Magazine. She’s based in Melbourne, Australia.