1 Agnes Water / 1770 Integrated Water Project

2 United Utilities Australia Carmine Ciccocioppo State Manager - Queensland United Utilities Australia

3 About United Utilities Australia United Utilities Australia was established in 1991 and now provides water and wastewater solutions and services to 11 clients and approx 4.0 million people across five states. Clients are both public sector (e.g. Water Authorities, local Councils) and private sector (e.g. BHP-Billiton) National Operations include –35 water filtration plants –15 WWTPs, –> 2200 km water distribution and trunk mains –>1500km sewer mains Experience in operating in rural and remote communities

4  In Queensland:  UUA delivered and has operated for eight years a 12ML/d desalination plant for Queensland Nickel in Townsville About United Utilities Australia

5 UUA- Approach to Operations UUA’s operational philosophy represents industry-best practice Operational track record with near-perfect compliance Best-of-Industry: –Safety practices and emergency management systems; and –Environment practices and systems; –Systems third-party accredited to ISO9001 (QA), ISO14001 (EMS) and AS4801 (OH&S) track record demonstrated over 15 years continuous operation across 4 states. Long Term community relations that are proactive, transparent and honest.

6 UUA- Approach to Operations Operators (“Process Controllers”) that are minimum trade qualified and highly experienced Fully automated control (SCADA) systems that can be operated remotely from a laptop anywhere in the world Extensive on-line monitoring, alarms and back- up systems Duty/ standby on critical equipment Well developed asset management systems that maintain plant and equipment in reliable condition at all times

7 Compliance Track Record ProjectSamples/Tests per annum Typical Annual Production (ML) Compliance Performance Macarthur~6,00011,500100% in 10 out of 12 years; 99.99% 99.18% Yan Yean~9,00030, % average per annum Riverland~25,00031, % average per annum

8 Operations for this Project Operations Manager and 2 Process controllers on a 24-7 on-call roster Operations Manager with 20 years water treatment experience including management of RO plants Third-party accreditation for QA, environmental management and safety within 12 months of commissioning completion

9 Summary Company with extensive operations experience in all areas of Australia including rural and remote communities Track record of near-perfect contractual and statutory compliance Sophisticated control and monitoring systems Experienced Team

10 Construction of the Facilities Tim Bradshaw Construction Manager United Utilities Australia

11 Construction of the Facilities Three Distinct Areas of Construction 1770 Sewer and Potable Water Sewage Treatment Plant Potable Water Infrastructure -Desalination -Bore Water

12 Township of 1770 Construction Works Supply and installation of a new low pressure sewerage system

13 Supply and installation of a new potable water system Township of 1770 Construction Works

14 Sewage Treatment Plant

15 Sewage Treatment Plant

16 Desalination Plant Construction

17 Desalination Plant Construction Seawater Intake

18 Desalination Plant Construction Brine Diffuser

19 Osmoflo Neil Palmer General Manager Technical Services Osmoflo

20 Desalination o Seawater desalination is very widely practiced around the globe o More than 13,000 desalination plants are in operation worldwide o Some plants are more than 50 years old o The largest (Ashkelon) can produce 370 ML/d o Australia’s first major seawater desalination plant in Perth (2006) produces 145 ML/d, 17% of the city’s needs

21 Current and Planned Australian Plants PlantLocationCapacityCompletion Perth 1Kwinana Gold CoastTugun SydneyKurnell Perth 2Bunbury CITIC PS IronKarratha MelbourneWonthaggi AdelaidePt Stanvac WhyallaPt Bonython

22 Perth Desalination Plant

23 Osmosis and Reverse Osmosis Semi permeable membrane Osmosis – fresh water naturally moves into more saline water (this is how trees get water) Pressure Reverse osmosis – fresh water driven out of salt water

24 Sea Water Reverse Osmosis Water Recovery is 45% Feed 1.00 Treated Water 0.45 Driving head 600 m Concentrate 0.55 Membrane salt rejection is 99%

25 Osmoflo o Agnes Water desalination plant is being built for UUA by Australian company Osmoflo o Osmoflo has built 150 desalination plants in Australia and overseas o Seawater desalination plants are at Scalpay (Scotland), Hong Kong, Marion Bay (SA) Exmouth (WA), Heron, Green, Bedarra and Brampton Islands (Qld) o Osmoflo has extensive experience in design, construction and operation of desal plants

26 Agnes Water Desalination Plant o Raw seawater intake and concentrate diffuser in open ocean o Microfiltration capacity 3.3 ML/d o Reverse osmosis permeate (freshwater) flow 1.5 ML/d o RO recovery 45% o Feed salinity 38,000 mg/L o Permeate salinity <500 mg/L

27 Agnes Water Desalination Plant o Permeate to be disinfected and stabilised to prevent corrosion o MF backwash goes to ocean discharge with RO concentrate

28 Desalination Plant Layout

29 Broken Hill Desalination Plant 29

30 Broken Hill Desalination Plant