Barry set the scene by outlining the challenges faced by Sydney Water in meeting the future demands for a growing Sydney:
- 40% increase in population in next 25 years
- 17% increase in water usage and commensurate increase in waste water
- Constraints in existing asset capacity, and
- Moderating any cost increases to the end user
With respect to the budgetary pressures the cost drivers are:
- Rapid growth in network
- Renewal of aging assets
- Service level enhancements including increasing regulatory compliance requirements
Tim then detailed the concept of a strategic network model where decisions on investments (CAPEX) can be informed by integrating a large number of variables and interdependencies. Importantly it was found that the optimal investments suggested by modelling did not always correspond to intuition or indeed the traditional business case prepared for specific investments in isolation. In this respect there was work to do in gaining the confidence of executives / decision makers in the outputs of the modelling for use in investment decisions.
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