Saturday, January 22, 2011

Desalination Plant

The previously undisclosed arrangement, in the confidential contract between SA Water and the foreign-owned consortium Adelaide Aqua, requires the $1.8 billion, 100 gigalitre plant to run at 75 per cent capacity for two years after its completion in December next year - otherwise its warranty will be voided.

And if we get good rains Adelaide Aqua will still get paid 30 million a year for what? Us not using water. Oh good. A two year warranty, a pretty interesting pricing structure and with that kind of cash some pretty classy lawyers to ensure we meet the requirements of the contract while they only have a 2 year commitment and then a flood of money. The Banana Republic strikes again. When you read what the Victorians are having to pay for their desal plant then the desal plant making people have a very interesting business model.  Capitalism at its best. Yes, we do need the desal plant because I posted on this blog during our drought and it is heartbreaking what happens. We need water. We need to fill our underground aquifers, we need to ensure we have water during times of drought and we need to understand one extremely wet winter means nothing. It's great, we need all the water we can get, but we are a hot, dry state. The water restrictions we had meant our gardens died and it was awful. The desalination plant will buffer that. In the mean time what do we do with all this excess water we are compelled to produce whether we want to or not? We'll have to think about that. Mintabie comes to mind. Creating wetlands which  can be used for activities and relaxation.It cannot be stored. Why not? I do wish the government would get everything out on the table and tell the truth as we do things. By now we might have had a plan. We actually have some very good water management experts in this state so I suggest we get on with it. In the meantime I want to know how companies get away with charging states and people this kind of money on the back of a two year warranty. Even my Holden car has a 6 year warranty!

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