Healthy HeadWaters Water Use Efficiency infrastructure funding program Round ten application guidelines This publication has been compiled by the Healthy HeadWaters Water Use Efficiency project, Department of Natural Resources and Mines. © State of Queensland, 2016. The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence. Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence terms. You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication. For more information on this licence, visit http://creativecommons.org/licenses/by/3.0/au/deed.en The information contained herein is subject to change without notice. The Queensland Government shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information. Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Contents 1 What is the HHWUE project ..................................................................................................................................1 2 Who is eligible .......................................................................................................................................................2 3 2.1.1 Applicants ................................................................................................................................................2 2.1.2 Projects ...................................................................................................................................................2 2.1.3 Activities ..................................................................................................................................................1 How to apply ..........................................................................................................................................................2 3.1 Timeline ..........................................................................................................................................................2 3.2 Application planning .......................................................................................................................................3 3.2.1 Pre-lodgement information ......................................................................................................................3 3.2.2 Third party advice....................................................................................................................................4 3.3 3.3.1 Water share.............................................................................................................................................4 3.3.2 Applicant contribution ..............................................................................................................................4 3.3.3 Certification .............................................................................................................................................5 3.4 4 Submitting an application ...............................................................................................................................5 Assessment ...........................................................................................................................................................7 4.1 Conduct of DNRM assessment ......................................................................................................................7 4.2 Provision of further information ......................................................................................................................7 4.3 Clarifications and addenda .............................................................................................................................7 4.3.1 Clarifications ............................................................................................................................................7 4.3.2 Addenda ..................................................................................................................................................7 4.4 5 Completing the application form .....................................................................................................................4 Criteria ............................................................................................................................................................8 4.4.1 Value for money ......................................................................................................................................9 4.4.2 Environmental .......................................................................................................................................10 4.4.3 Technical feasibility ...............................................................................................................................10 4.4.4 Project management governance .........................................................................................................10 Apply for funding ..................................................................................................................................................11 5.1 DNRM office use only...................................................................................................................................11 5.2 Applicant information ....................................................................................................................................11 5.3 Project summary ..........................................................................................................................................11 5.4 Proposed works ............................................................................................................................................11 5.4.1 Unirrigated area ....................................................................................................................................12 5.5 Detailed water savings .................................................................................................................................12 5.6 Water entitlements .......................................................................................................................................13 5.7 Budget ..........................................................................................................................................................14 5.7.1 Funding and applicant contribution .......................................................................................................15 5.7.2 Additional water contribution .................................................................................................................15 5.7.3 Value for money calculation ..................................................................................................................15 5.8 Feasibility certification ..................................................................................................................................16 5.9 Applicant/s declaration .................................................................................................................................17 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5.10 Registered water entitlement holder/s ......................................................................................................18 5.11 Registered owner/s of the land declaration ..............................................................................................19 6 Application checklist ............................................................................................................................................21 7 Next steps ............................................................................................................................................................22 8 7.1 Agreements ..................................................................................................................................................22 7.2 Water transfer ...............................................................................................................................................22 7.2.1 Transferability........................................................................................................................................22 7.2.2 Transfer costs .......................................................................................................................................23 7.3 Reporting ......................................................................................................................................................23 7.4 Evidence of expenditure required ................................................................................................................23 7.5 Payments .....................................................................................................................................................24 7.5.1 Milestones and milestone payments .....................................................................................................24 7.5.2 Treatment of cost over-runs and savings .............................................................................................24 Other requirements ..............................................................................................................................................25 8.1 Media ............................................................................................................................................................25 8.2 Probity ..........................................................................................................................................................25 8.3 No offering of incentives ...............................................................................................................................25 8.4 Related entities .............................................................................................................................................25 8.5 Ownership of tenders ...................................................................................................................................25 8.6 No collusion ..................................................................................................................................................26 8.7 Privacy and consent .....................................................................................................................................26 8.8 Tax information .............................................................................................................................................26 8.9 Compliance and workplace health and safety .............................................................................................27 8.10 9 Disclaimer .................................................................................................................................................27 Contact information .............................................................................................................................................28 9.1 Healthy HeadWaters Water Use Efficiency project team .............................................................................28 9.2 Links .............................................................................................................................................................28 10 Frequently asked questions.................................................................................................................................29 iv Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 1 What is the HHWUE project The Healthy HeadWaters Water Use Efficiency (HHWUE) project funds eligible Queensland Murray–Darling Basin (QMDB) irrigators to upgrade on-farm irrigation infrastructure. Irrigators contribute at least 10 per cent of the cost, with cash, in-kind or additional water. Up to 50 per cent of the water saved by the upgrade is retained by the irrigator, with the remainder transferred to the Australian Government for environmental use. The HHWUE project is delivered by the Queensland Department of Natural Resources and Mines (DNRM), with funding from the Australian Government’s Sustainable Rural Water Use and Infrastructure Program. The HHWUE project aims to help irrigators implement infrastructure projects to improve the efficiency and productivity of on-farm water use and management. By achieving this objective, the HHWUE project will also assist water-dependent irrigation communities adapt to a future of reduced water availability due to climate change. This document provides information on how to apply for infrastructure funding, including the application guidelines and form. HHWUE 2010–16 Nine rounds of the infrastructure funding program have been run since 2010. Of the 68 projects approved under these rounds, 56 are currently underway, complete or in contract negotiation. These 56 projects represent: a total of 37.7 GL of water savings 15.2 GL water savings retained by irrigators 22.5 GL water savings returned to the environment a total project cost of $102.8 million Australian Government funding to irrigators of $87.8 million. Approximately $15 million in funding is available for allocation across the six months of round ten. 1 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 2 Who is eligible Applicants, projects and activities that meet the following criteria are eligible to apply for funding under the HHWUE project. Irrigators considering an application should note that each funding round will focus on certain water products and locations. Figure 1: Eligibility for HHWUE infrastructure funding program 2.1.1 Applicants An eligible applicant to the HHWUE project must be: registered with the Australian Taxation Office for GST purposes with a valid Australian Business Number, or where the applicant is a company, in possession of a current ASIC Australian Company Number either the registered owner of the land or have the permission of the registered owner of the land to access all land applicable to the project application to install and commission the infrastructure either the registered water entitlement holder, or have the permission of the registered water entitlement holder to offer an eligible QMDB surface water entitlement or overland flow licence as a permanent transfer freed of special conditions and encumbrances to the Australian Government able to enter into a legally binding works agreement with DNRM to implement the proposed works, and under this agreement, contribute at least 10 per cent of the total project cost through cash, in-kind contributions or additional water able to oversee all aspects of the delivery of the works agreement as a person conducting a business or undertaking, in accordance with the Work Health and Safety Act 2011 (Qld), Building Code 2013 (Cth) and Fair Work (Building Industry) Act 2012 (Cth) and, if applicable, the Australian Government Building and Construction WHS Accreditation Scheme. 2.1.2 Projects Projects seeking HHWUE funding should: be for construction, upgrade or commissioning of on-farm irrigation infrastructure to achieve water savings including the storage, delivery or application of water for primary production (e.g. raising crops, pasture, dairy or horticulture) 2 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines be within the existing boundary of the same irrigated farming enterprise be for works located wholly on land that is supplied by water located in the following areas: o Supplemented water Lower Balonne: St George Water Supply Scheme (zones 1-4) o Unsupplemented water Lower Balonne: Lower Balonne Water Management Area (zones 1-10) Condamine: Condamine and Balonne Water Management Area (zones 1-9) and Upper Condamine Water Management Area (zones 6-10 and 12-16) Border Rivers: Border Rivers Water Management Area (Dumaresq, Macintyre and Barwon zones, or adjacent to the Macintyre or Dumaresq Rivers in the Border Rivers region of New South Wales), Upper Weir Water Management Area (classes UW2A, UW2B and UW2C) and Lower Weir Water Management Area (class LW1) Moonie: Moonie Water Management Area (zones A-D) o Overland flow Lower Balonne: Lower Balonne Water Management Area (overland flow water) offer a share of agreed total water savings of between 50 and 100 per cent, and no less than 10 ML (nominal volume), from one or more of the following water products (see Figure 2, Figure 3, Figure 4): o Supplemented water Lower Balonne: St George Water Supply Scheme (zones 1-4) o Unsupplemented water Lower Balonne: Lower Balonne Water Management Area (zones 1-10) Condamine: Condamine and Balonne Water Management Area (zones 1-9) and Upper Condamine Water Management Area (zones 6-10 and 12-16) Border Rivers: Border Rivers Water Management Area (Dumaresq, Macintyre and Barwon zones), Upper Weir Water Management Area (classes UW2A, UW2B and UW2C) and Lower Weir Water Management Area (class LW1) Moonie: Moonie Water Management Area (zones A-D) o Overland flow Lower Balonne: Lower Balonne Water Management Area (overland flow water) offer water from the same Resource Operations Plan area as the land on which works will be undertaken demonstrate an applicant contribution of at least 10 per cent of the total project cost (actual contributions may change at project acquittal – refer to 7.5.2). A project will not be funded by the HHWUE project if it: does not include the agreement of holders of all land and water related to the project introduces irrigation into a current dry-land only farming enterprise relates directly to research and development, or the operation, maintenance and repair of new or existing infrastructure is not directly related to the construction, upgrade or commissioning of on-farm irrigation infrastructure to achieve water savings (proposals relating to farming or farming systems will not be funded) relates to the decommissioning of infrastructure (unless the decommissioning is a necessary stage of the project, to construct, upgrade and commission infrastructure to achieve water savings) existed or was commenced prior to the receipt of funding approval and a pre-works inspection by DNRM in any new areas to be irrigated, is detrimental to natural resource conditions (such as deep drainage, water tables, salinity, soil health and suitability) and cannot describe management benefits (e.g. improve rotations, introduce fertigation) and business benefits (e.g. decrease labour costs, increase production) to the enterprise. involves irrigation infrastructure reconfiguration that exceeds the long-term availability of water to the irrigator. 3 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Figure 2: Condamine and Balonne eligible areas 4 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Figure 3: Border Rivers eligible areas 5 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines WERANGA Eligible zones Moonie Water Management Area Zones A-D nC reek Mo ol a r r ie SOUTHWOOD MOONIE Pa Wongle Wo ng l ek Teelba C re reek sC e Creek Ha ye FLINTON ALTON Moo nie R iv er ST GEORGE Moonie River Water Resource Plan Area NINDIGULLY Extent of Map Moonie River Water Resource Plan DAYMAR THALLON Reference Major watercourse Unsupplemented zone Unsupplemented zone extent Town DAREEL MUNGINDI Figure 4: Moonie eligible zones 6 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Approved projects Examples of on-farm infrastructure applications previously approved for funding under the HHWUE project include: upgrading surface irrigation through redesigning delivery and reconfiguring fields installing or upgrading overhead irrigation (centre pivot or lateral move machines) converting from surface irrigation to trickle or subsurface irrigation converting to bankless channels or through-the-bank pipes upgrading and reconfiguring storages and channels to minimise seepage and evaporation losses lining existing storages to enable deep storage replacing inefficient storages converting to micro-jet irrigation. 2.1.3 Activities All project activities must contribute directly to establishing or commissioning the water saving infrastructure. In relation to the infrastructure, capital items must be dedicated, specialised, integral and without substitute. If “stock on hand” items are used in the project, primary evidence of the value of this stock should be provided in the form of receipts or tax invoices. Secondary valuations are not generally acceptable. It is the irrigator’s responsibility to ensure the quality and fit of all stock on hand, and that it will meet performance requirements of a commissioning test. Works and expenditure that pre-date the receipt of funding approval and a pre-works inspection by DNRM, apart from eligible stock on hand or reasonable project pre-planning costs, are deemed “retrospective”. Retrospective works and expenditure will not be recognised for the purpose of payment claims. The following figure provides a guide to some eligible and ineligible activities and a description of situations in which the activities would be eligible. Figure 5: Examples of eligible and ineligible activities 1 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 3 How to apply 3.1 Timeline Round ten is open from1 January to 30 June 2016, with six application periods of one month. Applications will open on the first business day of each month and close at 5.00 pm AEST on the last business day. Figure 6 shows the approximate timing in relation to an application period. Figure 6: Approximate application period Figure 7 lists the important dates for the application period in round ten. 2 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Figure 7: Round ten important dates 3.2 Application planning Participation in the HHWUE project is voluntary and DNRM recommends irrigators considering an application obtain independent advice to make a well-informed decision. Prior to applying, irrigators are encouraged to: contact DNRM for information to assist in proposal development gain agreement from third parties that may have an interest in the project proposal seek appropriate advice from irrigation specialists, legal, business and financial advisors. Contact details, some suggested sources of information and useful links are provided at section 9. 3.2.1 Pre-lodgement information Irrigators wishing to discuss applications can contact the HHWUE project team directly (see section 9) or submit a Pre-lodgement Information Request form to request: confirmation of eligibility for current round copies of titles for water entitlements related to proposed works hydrological modelling data (Lower Balonne entitlements only) characteristics of water entitlement under a multiyear account (Lower Balonne entitlements only) water management and trading advice project plan advice and development assistance. 3 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines DNRM will not provide a comprehensive assessment of all issues that the irrigator may need to consider in applying or implementing an infrastructure project. DNRM’s response to a contact does not favour or prejudice a subsequent application to the HHWUE project. Additional workplace health and safety requirements may apply to applicants proposing projects which will undertake more than $4 million of work (see section 8.9). Applicants are encouraged to discuss requirements with DNRM if they expect their projects to exceed this financial threshold. 3.2.2 Third party advice Applicants are advised to give notice to, and where appropriate obtain approval to proceed from, any entity that has an interest in the land or water associated with their proposed project. Third parties may include registered water entitlement holders, registered owners of the land and mortgagors. 3.3 Completing the application form Applicants must answer the questions on the application form with sufficient information to allow a full assessment of the application. Where the attachment symbol () appears on the form, applicants should attach any relevant requested documents to the completed application. Incomplete application forms may be offered two business days to provide missing information. Incomplete applications may however, at DNRM’s discretion, be excluded from consideration. 3.3.1 Water share The application form requires the irrigator to identify the amount (at least 50 per cent and 10 ML) of water savings to be transferred to the Australian Government for environmental purposes via a permanent transfer of water. In previous funding rounds some applicants offered shares greater than 50 per cent of the identified water savings to the Australian Government in order to improve the value for money proposition, and so the competitiveness of their application. 3.3.2 Applicant contribution The irrigator must contribute a minimum 10 per cent of the total project cost. Irrigators can offer a mix of cash/inkind and additional water in order to achieve the required minimum 10 per cent contribution. While the 10 per cent contribution is a minimum, irrigators should note that applications are assessed as part of a competitive process and value for money is the prime criterion. In previous funding rounds, some applicants offered more than the minimum irrigator contribution to improve the value for money proposition and competitiveness of their bid. If the application is approved, this cost share will be established in any future works agreement. The irrigator contribution to the project will be ensured at the end of the project on the basis of direct evidence of expenditure (see section 7.5). The table below demonstrates some of the options for applicant contributions and how they impact on funding received and value for money (see section 4.4.1). 10 per cent 10 per cent contribution as 20 per cent contribution as contribution as water cash/in kind and water cash/in kind and water Total project cost $1,000,000 $1,000,000 $1,000,000 Funds requested $900,000 ($1,000,000 x 90%) $900,000 ($1,000,000 x 90%) $800,000 ($1,000,000 x 80%) 450 ML 450 ML 450 ML 225 ML (450ML x 50%) 225 ML (450ML x 50%) 225 ML (450ML x 50%) $0 cash of in-kind $80,000 cash or in-kind ($1,000,000 / 8%) $50,000 cash or in-kind ($1,000,000 / 5%) Total water savings Share of water savings offered (must be at least 50 per cent of total water savings) Cash/In-kind Irrigator contribution (must be at least Additional water 10 per cent of total project cost) Total Additional water to the value Additional water to the value Additional water to the value of $100,000 of $20,000 of $150,000 ($1,000,000 x 10%) ($1,000,000 x 2%) ($1,000,000 x 15%) $100,000 ($1,000,000 x 10%) 4 $100,000 ($1,000,000 x 10%) $200,000 ($1,000,000 x 20%) Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Project price per megalitre (funds requested/share of water savings offered) 3.3.2.1 $4000.00/ML ($900,000 / 225ML) $4000.00/ML ($900,000 / 225ML) $3555.56/ML ($800,000 / 225ML) Cash or in-kind Irrigators can choose to contribute directly to the project cost by providing a minimum of their own cash or in-kind work. 3.3.2.2 Additional water Irrigators may also offer additional water to the Australian Government in lieu of or in addition to a cash/in-kind contribution to the total cost of the project. To utilise this option, irrigators nominate the value of their contribution that will be made as additional water. The water offered must be of the same type as that offered to cover the share of project water savings. The volume of additional water will not be identified at the time of the application. If the application is approved, the Australian Government will advise its “market price” and calculate the volume of additional water required to cover the nominated irrigator contribution amount using the following equation: This additional water does not count toward the 50 per cent minimum share of water savings that the project must provide. That is, irrigators must still offer a minimum of 50 per cent of the water savings together with the additional water to cover the nominated irrigator contribution to the project if not offered in cash/in-kind. If the project is approved, both the share of water savings and the additional water for irrigator contribution will be transferred to the Australian Government at the start of the project, and the irrigator is paid the market price for the total volume transferred. 3.3.3 Certification Applications to the HHWUE project must propose projects that are technically feasible, properly and reasonably costed, and that the proposed water savings are achievable. To ensure this requirement is met, DNRM requires that the applicant engages an appropriately qualified irrigation industry professional to certify the application. Evidence of the chosen irrigation professional’s current qualification/certification is also required as part of the application. For the purpose of certification, DNRM recognises the following qualifications/certifications: Registered Professional Engineer of Queensland (RPEQ) Irrigation Australia Limited Certified Irrigation Designer (CID) Irrigation Australia Limited Certified Irrigation Agronomist (CIAg). A qualified irrigation industry professional is also required to provide a report to certify the commissioning of the works on completion, including that the infrastructure is built and operational according to the approved project. Find a certifier Applicants can refer to the Irrigation Australia and Board of Professional Engineers Queensland websites to find listings to qualified irrigation industry professionals: RPEQ — Board of Professional Engineers Queensland (www.bpeq.qld.gov.au) CID — Irrigation Australia (http://irrigation.org.au/certification/listing-of-certified-irrigation-designers) CIAg — Irrigation Australia (http://irrigation.org.au/certification/listing-of-other-certified-irrigation-professionals-2). 3.4 Submitting an application The closing date for applications is 5.00 pm AEST on the last business day of each month in the round (29 January, 29 February, 31 March, 29 April, 31 May and 30 June 2016). 5 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Completed application forms and attachments should be submitted by mail, email, fax or in person to “c/- The HHWUE Program Manager” at the respective addresses listed at section 9. DNRM will acknowledge lodgement of applications within five business days. Late applications will be considered in the subsequent monthly assessment period where one is to be run. Applicants should note that DNRM may review the guidelines at the end of each application period (at the end of the month). An applicant’s eligibility for a late application, or one to which further information is required in accordance with section 4.2, will be assessed in accordance with those changes to the following month’s guidelines. Applicants should check the HHWUE website or contact the HHWUE project team at the commencement of the following month if the application is one as described. Details, attachments and any related documents that applicants provide in their applications will be treated in the strictest confidence and will not be distributed in any form, verbally, electronically or hard copy to any other party outside of the immediate evaluating team and DNRM’s expert advisors. An applicant must direct any enquiries following the closure of the application period in relation to the application process in writing or by email to the DNRM representative above. 6 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 4 Assessment The government assessment of applications is expected to be completed in the month following the close of applications. Assessment of applications is competitive, taking into consideration how well individual applications meet the eligibility criteria, the value for money criterion and how they compare to others. DNRM may request additional information from applicants in the first week of the applications’ assessment should applications be incomplete or require clarification. In this case, applicants will have two business days to provide additional information. If additional information is not received within the two business days, the application may be deemed invalid and the applicant invited to apply in the next monthly application period. Complete and eligible applications will be assessed promptly from the date they are acknowledged by DNRM and during the month following the closing date. The Australian Government makes the final decision on which applications are funded. DNRM then advises applicants directly of the results. Irrigators whose applications are not approved may request feedback to help improve the standing of their applications in future rounds. 4.1 Conduct of DNRM assessment DNRM may conduct the process for the evaluation of applications in connection with the infrastructure funding round in such manner as it thinks fit and, without limitation, may at its absolute discretion (without any obligation to do so): cancel the applications process or extend the date for submissions in section 3.4 at any time by notice in writing to each applicant provide to all applicants any further information provided to a particular applicant including in response to queries relating to this application refuse to consider any application which does not comply with the application documents in any respect in its evaluation of application apply such criteria and criteria ratings as it sees fit. DNRM is not required, and does not intend, to release any details regarding any aspect of the evaluation process. 4.2 Provision of further information As expressed in this document, all applicants are expected to provide sufficient information to demonstrate their compliance with assessment criteria, and to constitute a comprehensive response. Accordingly, DNRM is not obliged to seek further information from any of the respondents in respect of any criterion in order to ensure that the maximum possible ranking may be obtained for that applicant. DNRM in its absolute discretion, subject to probity, may however elect to seek clarification of any submission where the provision of such further information may assist DNRM in the differentiation and ranking of respondents. 4.3 Clarifications and addenda 4.3.1 Clarifications Any reply to an applicant’s query or request for a clarification in regard to this application will be in writing, generally by email, from DNRM. Applicants should note that any query or request for clarification that is answered by DNRM will be circulated, together with answers, to all other applicants, unless the applicant has submitted its query marked “commercial-inconfidence” and, subject to the paragraph below, it has been determined by DNRM that the query is to be treated as such in accordance with the general conditions of the application guidelines. If an applicant wishes to submit a query in confidence without circulation to other applicants on the basis that the circulation may disclose confidential information concerning the applicant's tender, the applicant must clearly mark the query as commercial-in-confidence. A determination will be made by DNRM as to whether the query is to be treated as commercial-in-confidence and not circulated to other applicants, and notified to the applicant. If it is decided not to treat the query as commercial-in-confidence, the applicant will be given the opportunity to withdraw the query rather than have the query and answer circulated to the other applicants. 4.3.2 Addenda DNRM may issue addenda in writing. 7 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 4.4 Criteria DNRM will evaluate each application received by the closing date against the relevant assessment criteria: compliance and eligibility value for money criteria environmental criteria technical criteria governance criteria. Figure 8 Assessment of HHWUE applications 8 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 4.4.1 Value for money Funding under the HHWUE project is competitive. The price of the water (per megalitre of nominal volume) that is tendered is determined by its location, flow characteristics and ability to deliver outcomes to key environmental assets. The project price per megalitre is calculated based on the funding request and share of water savings offered (see table at section 3.3.2). DNRM also benchmarks the tender price against the prevailing market price using the following equation. While DNRM assesses value for money using this equation, the Australian Government also adds DNRM’s project administration costs to the tender price. Therefore, applicants should note that DNRM’s and the Australian Government’s comparison of their tender against the market price will vary. Information on the market price of water products may be found through the list of websites in section 9.2. These web sites give information on historical water trades and may be used as a guide to current market prices. Applicants interested in the possible environmental value of their water product may find section 9 of the following report helpful: The Proposed ’Environmentally Sustainable Level of Take’ for Surface Water of the Murray–Darling 32 Basin: Method and Outcomes Figure 9 indicates the likelihood of funding as it may be influenced by the tendered price and the environmental benefit based on the location of the water offered. HIGH Tender price compared to market price Likelihood of Success - More - Modest - Less LOW Environmental LOW Benefit HIGH Figure 9: Likelihood of funding The approval of an application by the Australian Government cannot be guaranteed by DNRM. While the Australian Government may value certain water more highly, applications of poor value for money or environmental benefit have in the past been rejected. The priority areas for the HHWUE project may change from time to time and are based on the current Australian Government priorities for acquiring water. Even though the application process is competitive, it is in the interest of all parties that any application submitted ensures the costs of the infrastructure project are covered as a first principle. 2 Megalitre nominal volume: located on a water entitlement 3 MDBA, November 2011, http://www.mdba.gov.au/what-we-do/basin-plan/development/eslt. 9 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Water trading data Value for money is one of the key assessment criteria for applications, based on water offered and funding requested. The following websites provide a guide on recent market prices for water in the QMDB, which irrigators may find useful when preparing their applications. Water markets and trading— www.business.qld.gov.au/industry/water/managing-accessing/marketstrading/market-information#permanent Market price information for Murray–Darling Basin water entitlements— www.environment.gov.au/topics/water/rural-water/restoring-balancemurray-darling-basin/market-price-information. 4.4.2 Environmental To meet this criterion, applicants should offer water that meets the current eligibility specifications (see section 2). In some cases, further information may be requested of DNRM by the Australian Government in relation to the water specifications to assist in the assessment of environmental value. Irrigators in the Lower Balonne, Upper and Lower Weir River areas should note that DNRM will undertake hydrological modelling in relation to the amount of nominal volume offered from their eligible water entitlement to help the Australian Government determine relative environmental value. 4.4.3 Technical feasibility DNRM is required to verify that: the identified calculations of net water savings are robust and achievable each proposal is technically feasible the engineering solutions are appropriate to the needs of the irrigation system and the proposed site. Certification of applications by a recognised irrigation professional is the primary step to meeting this criterion. DNRM also engages an independent technical assessor to review applications. Therefore applications must be presented with sufficient information for an independent irrigation consultant to understand and agree that: the methodologies and assumptions are reasonable and recognised the application includes sufficient evidence to provide a robust estimate of water losses and demonstrate that the infrastructure will achieve the water savings sufficient evidence has been provided to demonstrate the suitability and feasibility of the infrastructure to the given situation any known risk of failure of sub-optimal performance has been addressed the applicant has demonstrated the capacity, or steps are in place to ensure the capacity to operate any new technology. 4.4.4 Project management governance DNRM must be confident that the applicant is able to ensure the project can be delivered within the timeframes and budget of the project plan submitted with the application. The applicant must demonstrate this ability in completing the relevant sections of this application form. 10 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5 Apply for funding 5.1 DNRM office use only Application number Date received Time received 5.2 Applicant information Please provide contact details of irrigator applying to the HHWUE infrastructure funding program Contact name Business trading name ABN/ACN Phone Alternate phone Fax Email Mailing address State Postcode Country (if outside Australia) 5.3 Project summary Project location Property name Address ˚ Map coordinates of a point central to proposed works ' "S Details of all land on which works will be undertaken Lot Plan Registered owner/s Please attach Attach a locality map/s clearly identifying: the applicant’s name annotated boundaries of the farming enterprise and of the proposed works boundaries of the existing irrigated area boundaries of the proposed irrigated area New South Wales border if applicable. Please copy this page and attach an additional sheet of land details if more space is required. 5.4 Proposed works Briefly describe your proposed water use efficiency infrastructure 11 ˚ ' "E Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Please attach Attach a detailed project plan labelled with the applicant’s name including: technical evidence: a detailed description of the works including an: o explanation of technical feasibility of the works o description of the management benefits (e.g. improve rotations, introduce fertigation) and business benefits (e.g. decrease labour costs, increase production) to the enterprise design specification: including the site of the proposed infrastructure, and quantities such as areas, volumes, lengths and numbers if available (this detail will be required prior to commencement of works) work breakdown: list and description of key tasks and activities of the project timeline: schedule of dates for the start and completion of tasks and major activities management plan: a description of how the project will be managed to ensure it is completed on time, within budget and to meet all key objectives site plan: a detailed, scaled site plan showing the location and extent of all works. Applicants and consultants should note the description of the assessment criteria in section 4.4.3 as a guide to the level of detail required. 5.4.1 Unirrigated area Will the works include the development of previously unirrigated area? Yes (Please provide the information below) No (Please proceed to section 5.5) Please attach If the works include development of a previously unirrigated area, ensure the project plan includes additional information which: includes a map identifying the areas to be added or relocated by reconfiguration describes the impact of the project and the capacity of any new irrigation equipment proposed on the average area to be irrigated across the enterprise over the long term demonstrates that the irrigation of new areas will not be to the detriment of natural resource conditions, addressing deep drainage, water tables, salinity, soil health and suitability (applicants may refer to myBMP, Waggamba land use manual, Queensland Agricultural Land Audit, etc) demonstrates that any reconfigured irrigation infrastructure does not exceed the long-term availability of water to the irrigator. 5.5 Detailed water savings The total water savings to be achieved by the project must be nominated. Sufficient supporting information including assumptions and calculations must be provided, so that an independent irrigation professional engaged by DNRM is able understand and verify to DNRM. Please complete the following table. Pre infrastructure (current) Component Annual losses (ML) Post infrastructure (proposed) Annual losses (ML) Totals 12 Annual savings (ML) Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Please attach Attach a description of how the water savings were calculated including: identification of pre-infrastructure water loss volumes on an annual basis explanation of how the works will mitigate the losses and what volume or proportion of the losses will be saved explanation of methodology used to estimate losses, summary of assumptions and calculations for the identified loss volume(s) and savings references, including to studies or examples of industry best practice. Applicants and consultants should note the description of the assessment criteria in section 4.4.3 as a guide to the level of detail required. 5.6 Water entitlements A: Volume of water savings to be transferred to Australian Government (must be at least 10 ML and equal to the total of the ML identified in the following table) B: Percentage of water savings to be transferred (must be between 50 and 100 per cent of the total annual savings identified in section 5.5) These details apply to entitlements, the subject of your offer, that will be dealt with when transferring a share of water savings to the Australian Government. 1. Registered water entitlement holder/s Water entitlement number Catchment Nominal volume (ML) ML offered to Australian Government 2. Registered water entitlement holder/s Water entitlement number Catchment Nominal volume (ML) ML offered to Australian Government 3. Registered water entitlement holder/s Water entitlement number Catchment Nominal volume (ML) ML offered to Australian Government Please attach Please copy this page and attach an additional sheet of related water entitlements if more space is required. 13 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5.7 Budget The following budget presents the minimum information required to assess the project budget. If there are more activities than the space provided, attach the extended budget in Excel format as provided by DNRM as a separate document labelled with the applicant’s name. In addition to the budget in the below or Excel formats, applicants may also provide a full project budget in an alternate format, however this format must include all information identified below. Each cost estimate for an activity item must be supported by an attached current quotation, calculations or estimates as appropriate. For the Evidence column, please use the following options: Q = current written quotation, C = calculation with workings shown and evidence of the unit price, E = estimate (minor activities only). In preparing their budgets, applicants should be aware of the evidence requirements for expenditure on approved projects, including treatment of costs which are to be reimbursed under other projects (section 7.4). Please attach Attach current quotations and calculations where this type of evidence has been identified. Project budget Activity Cost (excl. GST) Preparing the application Subtotal Planning and project management Subtotal Capital Subtotal Earthmoving Subtotal 14 Evidence Evidence reference/description Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Commissioning Subtotal Other (please itemise) Subtotal C: Total cost of project (excluding GST) 5.7.1 Funding and applicant contribution D: E: Funding sought from HHWUE (excluding GST) (must be no more than 90 per cent of C: Total cost of project) Applicant contribution (excluding GST) (must be no less than 10 per cent of C: Total cost of project) % Cash/in-kind % Additional water (if offering additional water, please also complete section 5.7.2) % Total % 5.7.2 Additional water contribution Identify any entitlements that will be transferred to the Australian Government to the value of the “additional water” at E: Applicant contribution above. Please note the applicant contribution will be the volume of water entitlement (of the same type as that offered from the water savings) required to equal the contribution amount nominated in section 5.7.1 E: Applicant contribution. Should the Australian Government approve the application, it will advise its market price and calculate the volume of water required from these entitlements to cover the nominated applicant contribution amount. Registered water entitlement holder/s Water entitlement number Catchment/subgroup 5.7.3 Value for money calculation Cost to the Australian Government of the water to be transferred ($/ML, excluding GST), calculated as D/A 15 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5.8 Feasibility certification Minimum requirements to certify an application are Registered Professional Engineer of Queensland (RPEQ), Certified Irrigation Designer (CID) or Certified Irrigation Agronomist (CIAg). Name Company Registration RPEQ CID CIAg Certification I certify that the proposed infrastructure improvements in this application are technically feasible and that the estimated water savings are achievable and based on reasonable assessment methodologies and assumptions. I certify that the project costing is reasonable and that in-kind contributions have been calculated on the basis of a sound methodology, or are comparable to quotes for provision of a similar service. Certifier signature Please attach Attach a copy of the certifier’s registration/certification. 16 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5.9 Applicant/s declaration All of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11): applicants registered water entitlement holders registered owners of the land. DNRM requires that persons or, if a corporation, representatives sign all applicable parts of the declaration. Where the same person or corporation is more than one party (e.g. applicant and registered water entitlement holder), the person or representatives must sign for each party (e.g. the applicant declaration and registered water entitlement holder declaration). Applicant/s declaration By signing this form you: confirm all details are true and accurate acknowledge information provided in this application will be used for the purposes outlined in the privacy statement at section 8.7 of this form understand this document and all attachments comprise your complete application to the HHWUE infrastructure funding program. Completing this form does not guarantee the applicant funding under the HHWUE project. If a person Name Name ABN ABN Signature Signature Date Date Witness Witness Signature Signature Date Date If a corporation Executed on behalf of ACN Name Name Position/title Position/title Signature Signature Date Date Witness Witness Signature Signature Date Date Please attach Please copy this page and attach an additional sheet if more space is required. 17 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 5.10 Registered water entitlement holder/s All of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11): applicants registered water entitlement holders registered owners of the land. DNRM requires that persons or, if a corporation, representatives sign all applicable parts of the declaration. Where the same person or corporation is more than one party (e.g. applicant and registered water entitlement holder), the person or representatives must sign for each party (e.g. the applicant declaration and registered water entitlement holder declaration). Registered water entitlement holder/s declaration By signing this form you: confirm all details in this application pertaining to the water entitlement/s in which you have an interest are true and accurate consent to the project proposed in this application including, if applicable, the transfer of any nominated water in which you have an interest acknowledge information provided in this form will be used for the purposes outlined in the privacy statement at section 8.7 of this form consent to the disclosure of water entitlement/s information to the Australian Government (or its solicitors) so that legal due diligence may commence should the application be approved. This consent includes, but is not limited to the number and security of the water entitlement/s, the ownership of the water entitlement/s, any associated landholdings and title references, any water usage, temporary transfers and allocation held by or accruing to the water entitlement, any third party interests, any water deficit, any financial or other liabilities and copies of any notices. Completing this form does not guarantee the applicant funding under the HHWUE project. If a person Name Name ABN ABN Signature Signature Date Date Witness Witness Signature Signature Date Date If a corporation Executed on behalf of ACN Name Name Position/title Position/title Signature Signature Date Date Witness Witness Signature Signature Date Date 18 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Please attach Please copy this page and attach an additional sheet if more space is required. 5.11 Registered owner/s of the land declaration All of the following parties must complete and sign in the appropriate sections of the declarations (sections 5.9, 5.10 and 5.11): applicants registered water entitlement holders registered owners of the land. DNRM requires that persons or, if a corporation, representatives sign all applicable parts of the declaration. Where the same person or corporation is more than one party (e.g. applicant and registered water entitlement holder), the person or representatives must sign for each party (e.g. the applicant declaration and registered water entitlement holder declaration). Registered owner/s of the land declaration By signing this form you: confirm all details in this application pertaining to the land in which you have an interest are true and accurate consent to the project proposed in this application including infrastructure works to be undertaken on land in which you have an interest acknowledge information provided in this form will be used for the purposes outlined in the privacy statement at section 8.7 of this form. Completing this form does not guarantee the applicant funding under the HHWUE project. If a person Name Name ABN ABN Signature Signature Date Date Witness Witness Signature Signature Date Date If a corporation Executed on behalf of ACN Name Name Position/title Position/title Signature Signature Date Date Witness Witness Signature Signature Date Date Please attach Please copy this page and attach an additional sheet if more space is required. 19 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 6 Application checklist Have you completed? Completion of this checklist is optional. If you have any questions about completing your application, please contact your consultant or DNRM. It is recommended that you contact the Water Services staff at DNRM to discuss how your water entitlement will be subdivided and the likely characteristics of the final product. I have: read the application guidelines contacted DNRM to check eligibility and request data in accordance with section 3.2.1 if required reviewed the eligibility criteria and am confident I meet these criteria (section 2) given the third party entities with an interest in the project, including mortgagors notice of this application (section 3.2.2) correctly completed the applicant information (section 5.2) identified the location and lots on which works will be undertaken and attached a locality map (section 5.3) identified correctly the registered owner of the land on which works will be undertaken, and if this is not me I have the landholder’s permission (section 5.3 and 5.11) attached a project plan (section 5.4) identified if unirrigated area is proposed to be developed and attached additional information if required (section 5.4.1) described the proposed work components with water savings for each activity (sections 5.5) identified the volume and percentage of water savings offered for transfer to the Australian Government (section 5.6) identified correctly each of the water entitlements of which all or part are offered and the registered holders, and if this is not me I have their permission (section 5.6 and 5.10) provided or attached a full budget identifying the total cost of the project in the format required, summarising project costs into the six key tasks: preparing the application, planning and project management, capital, earthmoving, commissioning and other (section 5.7) identified how the applicant contribution will be made (section 5.7.1) and identified any additional water entitlements offered (section 5.7.2) correctly calculated the cost in $/megalitre of the water savings to be transferred (section 5.7.3) reviewed and understood the privacy conditions (section 8.7) included the signed feasibility certification and attached evidence of the qualification of the certifier (section 5.8) signed, and have had other relevant parties sign the declaration (section 5.9 to section 5.11). 20 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 7 Next steps The following information is provided to inform fully irrigators who submit an application. If an application is approved, the following steps and considerations will apply. 7.1 Agreements Successful irrigators will receive funds upon signing two agreements, which will allow the project to proceed. Figure 10: Agreements for approved applicants On approval of the application, the Australian Government will commence a preliminary due diligence on the water entitlement to verify the details of the application and to ensure there are no undisclosed matters that impact the water transfer process. Once the works agreement is signed, legal due diligence on the water entitlement is completed. After this process, the Australian Government contacts the registered water entitlement holder or their legal representative regarding signing a water entitlement transfer deed. The first milestone payment under the works agreement is made immediately after settlement. 7.2 Water transfer 7.2.1 Transferability Irrigators should be aware that in some cases, the transfer of water can involve a considerable lead time, which may impact on the implementation of on-farm works. Irrigators considering an application are strongly advised to first seek information offered by DNRM to understand the steps that may be required to transfer the water. An intending applicant should obtain a copy of the relevant water entitlement documentation from the registered water entitlement holder to confirm ownership details, and if any conditions are in place that would preclude the subdivision or transfer of that water. Similarly, the interests of any other party including water supply scheme operators or mortgagors should be considered. The water to be transferred must be freed of special conditions and financial or other encumbrances. For the registered water entitlement holder to enter into a water entitlement transfer deed with the Australian Government, these conditions and encumbrances are required to be removed. If the water is unable to be unencumbered and transferred in the specified timeframes, the works agreement will not be able to proceed. The irrigator may then consider resubmitting their application in any subsequent rounds. If the water is subdivided for the purpose of the transfer, the nominal volume and other characteristics of the balance of the entitlement may change. Applicants should contact DNRM for more information on how subdivision of water may affect entitlement characteristics. In particular, the Australian Government has advised that where a water entitlement includes a condition that prevents water taken under that entitlement from being stored other than in notified storage works, this condition must be removed before the water transfer deed with the Australian 21 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines Government can be settled. For more information regarding conditions on water entitlements and DNRM contact details, please refer to section 9. 7.2.2 Transfer costs Registered water entitlement holders may be liable for any costs related to transferring water entitlements to the Australian Government. Applicants should advise the registered water entitlement holder at the application stage that they may later be liable for these costs, including legal, financial advice, brokerage, agency fees, access and termination fees and outstanding interest charges and arrears. Applicants will be responsible for the costs of any infrastructure required to comply with state licensing requirements or the requirements of their irrigation infrastructure operator. Applicants should contact DNRM or their irrigation infrastructure operator to determine if they are likely to incur additional costs as a result of the water transfer. The following table is a guide to the fees likely to be incurred. Actual fees will depend on the nature of the works being undertaken and the water being offered. Description of costs Purpose of cost Cost Statutory fees For lodging applications and dealing certificates with DNRM $168.60–$1089.05 Additional costs For certification of infrastructure and modelling $5000–$25 000 per storage * * These fees may increase by the Consumer Price Index on 1 July 2016. Indicative range provided by modellers and consultants. 7.3 Reporting Upon entering into a works agreement, the applicant commits to providing DNRM with quarterly reports as outlined in the works agreement for the duration of this agreement. The reports include up-to-date estimates of revenue and expenditure in relation to the works agreement, in addition to explanation of progress and changes to the project. A final report is required at the end of the project in order to receive a final payment. The final report includes a financial report, evidence of expenditure, statutory declaration and commissioning report by a qualified irrigation professional. DNRM reserves the right to inspect the works at reasonable notice, for the purpose of validation, verification and quality assurance against reporting requirements. 7.4 Evidence of expenditure required The application must include a project budget and justification for each of the line item amounts (section 5.7). To be eligible for government payments in the intermediate and final stages of the project, when the irrigator submits a payment claim they must include direct evidence of expenditure. Eventually, irrigators must provide direct evidence of at least the agreed total project cost to be able to receive the full government contribution. The type of direct evidence of expenditure required depends on whether works are contracted works provided by a separate entity or “in-kind” works undertaken by the irrigator. Evidence may include paid tax invoices, supplier or bank statements, logbooks, site inspections or photographs. Applicants should note that DNRM will not pay for costs which are reimbursed under another government funding or rebate program. For instance, where an irrigator is registered for the Australian Government diesel fuel rebate and purchases fuel as part of the HHWUE project (i.e. for in-kind earthmoving or dry hire), DNRM will typically deduct the rebate from the amount of expenditure claimed for fuel. In this case, irrigators should provide evidence of the amount paid for the applicable fuel and advise the amount to be subtracted for the fuel rebate. 22 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 7.5 Payments 7.5.1 Milestones and milestone payments The works agreement specifies milestones and milestone payments for completion of works. Payments are made in arrears according to the table below. Applicants should note that intermediate payments are optional and more than one intermediate payment can be negotiated. Figure 11: Milestone payments under HHWUE works agreement 7.5.2 Treatment of cost over-runs and savings The total amount of funding for which a successful applicant is eligible is expressed as a percentage of the total agreed project cost, and also as an amount. For example, if a project application proposes a total project cost of $1 000 000 and seeks funding of $800 000, the amount of eligible funding is 80 per cent of the total agreed project cost to a maximum of $800 000. 7.5.2.1 Cost over-runs In the event that a project is overspent, the irrigator will be entitled to the full amount of funds identified in the approved application ($800 000 in this example), provided that all costs attributed to the project by the irrigator are supported by appropriate evidence and are accepted by DNRM and the project is complete. However, the amount of government funding will not be increased and the irrigator must cover the additional expenditure. 7.5.2.2 Cost savings In the event of an underspend, the amount of government funding will be reduced to below that identified in the approved project. The project application identifies the proportions of the total project costs that will be provided by the Australian Government and the applicant. If the project is underspent, the cost savings are shared according to these proportions. Using the earlier example, where the Australian Government proportion of the total project cost is 80 per cent and the applicant proportion is 20 per cent, if the final total project cost is $900 000, the Australian Government contribution will be reduced to $720 000. This adjustment maintains the Australian Government input at 80 per cent of the total project cost. The irrigator must cover the balance of the project cost. In practice, this adjustment is made at the final payment stage when the total cost of the project is known with certainty. 23 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 8 Other requirements 8.1 Media a) An applicant must not make any news releases, or respond to media enquiries and questions, in relation to the application process without the prior written consent of DNRM's representative. b) In the event of breach of these provisions the respondent may be excluded from further consideration in the application process. 8.2 Probity a) DNRM has engaged Argus Probity Auditors and Advisors Pty Ltd as probity advisor for the application process. Contact details for the probity advisor are: Mr Lindsey Alford, of Argus Probity Auditors and Advisors Pty Ltd Phone: (07) 3003 0505 Fax: (07) 3112 0805 Mobile: 0438 700 677 Email: [email protected] b) Any concerns regarding the probity of the application process should be addressed in the first instance to DNRM’s representative. c) An applicant must set out the issue in question and how it impacts on the application process or the applicant's interests, and any relevant background information and discussion. d) Should an applicant not be satisfied with the outcome of an issue referred under (b) above, or otherwise not wish to pursue that course, the issue may be referred by the applicant directly to the probity advisor. e) Because any delay in notifying DNRM or the probity advisor of probity issues may prejudice the rights of all respondents, each respondent agrees that unreasonable delay in notification of any probity concerns precludes the respondent taking action, legal or otherwise, based on those concerns. 8.3 No offering of incentives a) An applicant must not offer any incentive to, or otherwise attempt to influence, any person who is directly or indirectly involved in the evaluation process or any other aspect of the application process. If DNRM determines that an applicant has contravened this condition, the applicant's response may, in DNRM’s sole and absolute discretion, be disqualified from further consideration. 8.4 Related entities a) DNRM requires each applicant to identify any party to the application that is a related body corporate or principal of another applicant (a consortia). DNRM reserves its rights in this regard. Failure to advise DNRM as required by this clause may result in an applicant being disqualified from the process. b) In the event that an applicant's consortium contains a related party or a related body corporate of another applicant, DNRM reserves the right to short list only the highest ranking of the affected consortia and to reject the other party or related party in consortia. 8.5 Ownership of tenders a) Each applicant response (including all supporting documentation and materials submitted by an applicant as part of, or in support of, this application) becomes the property of the DNRM on submission and will not be returned to the applicant or tenderer. 24 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines b) However, the applicant shall retain copyright and other intellectual property rights in respect of the application except to the extent specified in the works agreement. c) DNRM may reproduce the application for the purposes of evaluation. 8.6 No collusion a) A respondent must not collude, or engage in any other anti-competitive conduct, with another participant or any other person in relation to the preparation or lodgement of an application. 8.7 Privacy and consent a) By signing the application form, the applicant is permitting the following entities to access or use the personal information disclosed in the application form for the following purposes: i. the State of Queensland, acting through DNRM to assess applications under the HHWUE project, to collect and collate information relating to the applicant’s details (i) for the purposes of project reporting and project service delivery and (ii) for information and skill development about water use efficiency ii. the State of Queensland, acting through DNRM, and the Australian Government, acting through the Department of Agriculture and Water Resources, to announce information about the project as required if the application is successful. Identifying details regarding the applicant, registered owner of the land and registered water entitlement holder will not be publicised without the consent of those persons iii. the Australian Government, through the Department of Agriculture and Water Resources, may require permission to access and use information in an application for the purposes of verification and conducting due diligence activities, and obtaining additional information, where necessary, in relation to: the total number and security of water entitlements held in relation to the application ownership of the relevant water entitlement in this application and any temporary transfers applicable any landholdings and title references in relation to the application any water usage of applicable parties to the application any third party interests any financial or other liabilities copies of any notices in relation to the above. b) The applicant, registered owner of the land, registered water entitlement holder may be contacted directly by DNRM or the Australian Government Department of Agriculture and Water Resources requesting further information in regard to the application. c) Enquiries or information access requests should be directed to the HHWUE contact listed at section 9.1. 8.8 Tax information a) Applications are subject to normal taxation treatment and no special arrangements will apply. Applicants should seek independent advice on the taxation implications of receiving funding. All applications for funding will be GST exclusive. Payment of GST on individual project funds provided will be dependent on the individual’s GST status. 25 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 8.9 Compliance and workplace health and safety a) An applicant who enters into a works agreement is obliged to ensure compliance with all laws, and that relevant planning and regulatory approvals are in place. The applicant is further responsible to ensure safety on the construction site in accordance with the Work Health and Safety Act 2011 (Qld) or other relevant legislation. b) Larger applications may, subject to financial thresholds, trigger a further requirement to comply with the Australian Government Building and Construction WHS Accreditation Scheme and the Building Code 2013 (Commonwealth). Potential applicants are strongly encouraged to investigate the applicability of these instruments in preparing their application. The Building Code 2013 applies to all HHWUE construction where: the value of Australian government contribution to a project is at least $5 million and represents at least 50% of the total construction project value, or regardless of the proportion of Australian government funding, where the Australian government contribution to a project is $10 million or more. The WHS Accreditation Scheme applies to projects proposing to undertake more than $4 million (including GST) of work. Applicants proposing projects of this nature are encouraged to contact DNRM to discuss implementation implications. Contact details are located at section 9. c) Further details can be found in the sample works agreement that is available from DNRM. Information may also be obtained about Queensland workplace health and safety requirements (including templates) from www.worksafe.qld.gov.au or 1300 362 128, and about Australian Government occupational health and safety requirements from the Office of the Federal Safety Commissioner at www.fsc.gov.au or 1800 652 500. 8.10 Disclaimer a) Neither DNRM nor any of its consultants, advisors or agents accept any responsibility to any other person, under the law of contract or tort or otherwise, for any loss or damage which may arise from: i. anything contained in the application documents, any matter deemed to form part of the application documents, the supporting information or documents referred to in the application documents or any information supplied by or on behalf of DNRM or ii. any other part of the application form and guidelines. b) DNRM has no legal or other obligation to any applicant (including, without limitation, in respect to the application process outlined in this document). 26 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 9 Contact information 9.1 Healthy HeadWaters Water Use Efficiency project team For more information on the HHWUE project, please contact the project team at: Addresses: Department of Natural Resources and Mines 203 Tor Street Toowoomba Qld 4350 Department of Natural Resources and Mines 126 Alfred Street St George Qld 4487 Department of Natural Resources and Mines 42 Callandoon Street Goondiwindi Qld 4390 (Please note the Goondiwindi office is not staffed by the HHWUE project team) Mail: Department of Natural Resources and Mines PO Box 318 Toowoomba Qld 4350 Phone: 13 QGOV (13 74 68) (07) 4529 1321 Fax: (07) 4529 1555 Email: [email protected] Website: www.dnrm.qld.gov.au 9.2 Links The HHWUE project and its works agreement are administered under the Water Management Partnership Agreement between the Australian Government and the State of Queensland as a priority project. The Water Management Partnership Agreement serves to provide funding for this priority project through the Australian Government’s Sustainable Rural Water Use and Infrastructure Program. A link to the Water Management Partnership Agreement may be found at www.environment.gov.au/water/publications/action/agreements/qld-bilateral-agreement.html. For other related information, visit: Water trading and overland flow: Sustainable Rural Water Use and Infrastructure Program: More Profit per Drop: Irrigation Australia Limited: RPEQ: www.dnrm.qld.gov.au http://www.environment.gov.au/topics/water www.moreprofitperdrop.com.au www.irrigation.org.au www.bpeq.qld.gov.au Sources of information on current water market prices include: Queensland Government: Australian Government: https://www.business.qld.gov.au/industry/water/managing-accessing/markets-trading http://www.environment.gov.au/topics/water/rural-water/restoring-balance-murraydarling-basin/market-price-information 27 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines 10 Frequently asked questions What is the timeframe for the completion of funded HHWUE applications? The HHWUE project will end in December 2018 with the submission of a final report from the Queensland Government to the Australian Government. To enable sufficient time for completion of contracts and the Queensland Government’s final reporting, the end date of works agreements are currently not set beyond March 2018. Applicants should also note no further rounds of the HHWUE projects are being planned after December 2016. Can I apply if I have infrastructure works in northern New South Wales? An application may be possible if the project nominates an eligible Queensland water entitlement from which water savings will be shared with the Australian Government. Irrigators considering works in New South Wales should contact DNRM to confirm the eligibility of the location and nature of their project. What types of water entitlements does the Australian Government want? The focus on certain types and locations of water entitlements may change from round to round. Applicants should refer to the current application form to ensure the proposed water entitlement is eligible. Is there a maximum number of projects that I can submit to the HHWUE project? No. What is meant by a ‘certified or qualified’ irrigation professional in relation to the review of the technical aspects of project applications? A certified or qualified irrigation professional is an individual who is a Registered Professional Engineer of Queensland (RPEQ), a Certified Irrigation Designer (CID) or Certified Irrigation Agronomist (CIAg) under the Irrigation Australia Limited professional listings at www.irrigation.org.au. Who will assess my application? DNRM will assess applications received within a funding round and forward a report and recommendation to the Australian Government for validation of DNRM’s assessment on which projects should be approved for funding. DNRM aims to complete the overall assessment process within one month from the funding round closing date for applications. All applicants will be contacted by DNRM when the outcome is known. What role does the Australian Government have in this project? If an application is approved by the Australian Government and a works agreement is subsequently signed between the irrigator and DNRM, the Australian Government will commence its legal due diligence upon which the registered water entitlement holder will be asked to enter into a water entitlement transfer deed with the Australian Government for the permanent transfer of the share of the project water savings. The deed is separate to the works agreement with DNRM, though all payments to the applicant under the works agreement depend on the water transfer under this deed being completed. If I participate in the HHWUE project will I be exempt from the sustainable diversion limits (SDLs) that are proposed to be introduced in the new Basin Plan? No. Further information on the Basin Plan is available at www.mdba.gov.au. Can an applicant propose works that are on a different block to which the tradable water entitlement relates, if the entitlement and works are in the same catchment? The HHWUE guidelines do not preclude this option. Applicants are encouraged to contact DNRM if they have any questions about a proposed application. Can an applicant undertake their own earthworks? Yes, these are termed ‘in-kind’ works (see section 7.4). Can pre-existing works be included for funding in an application? No (see section 2.1.3 for further information). Can “stock on hand” be used in a project? In some cases stock-on-hand can be used (see section 2.1.3). Evidence requirements and applicant responsibilities may however vary where stock on hand is used. 28 Healthy HeadWaters Water Use Efficiency Infrastructure Funding Program—Application Guidelines What is a commissioning report and who provides it? In order to receive a final payment from DNRM for the completed infrastructure, the applicant must provide (among other documents) a commissioning report obtained from a suitable irrigation industry professional (see section 7.3). This report certifies that the infrastructure is built and operational according to the approved project. The cost of obtaining a commissioning report can be included as an activity in an applicant’s project costing. What happens if the project is over or underspent? There are specific arrangements for over or under expenditure of the total agreed project cost. Please see section 7.5.2 for more detail. If a works agreement is terminated after the water is transferred to the Australian Government, is the water returned to the registered water entitlement holder? Once the water has been transferred to the Australian Government it will not be returned. However, the applicant will receive payment to the agreed market value of the water that is transferred. This market value will be identified in the works agreement between DNRM, the applicant, registered owner of the land and registered water entitlement holder. How is the value for money (cost of the water being returned to the Australian Government) calculated? To calculate the cost per megalitre of water being returned, divide the Australian Government contribution to the project by the number of megalitres (ML) of the water savings proposed to be transferred to the Australian Government (see section 4.4.1 for further information). Will the HHWUE project fund the ongoing operation and maintenance of infrastructure? No. Funding is provided in relation to construction, upgrade and commissioning of on-farm irrigation infrastructure only. What happens if delays to the infrastructure project occur that are beyond the control of the applicant? DNRM understands that projects can be delayed for unforseen reasons. Applicants are encouraged to propose a timeframe that makes reasonable provision for unforseen delays. Delays throughout the implementation of a project will need to be reported to DNRM as a contractual requirement. Variations can, from time to time, be negotiated. If an applicant’s project runs ahead of schedule DNRM will accept early payment claims. What capital items and activities can be claimed as part of project expenditure? Capital items or activities must be directly related to constructing and commissioning on-farm irrigation infrastructure to achieve water savings; they must be dedicated, specialised and without reasonable substitute. For example: an excavator purchase may not be claimed, but the cost of using it on the project may be claimed capital relating to farming or farming systems may not be claimed. Must the farming enterprise include only properties that are located adjacent to each other? The HHWUE project does not require properties to be adjacent to each other to classify as a farming enterprise. Rather, the properties must be run as the one business with water, equipment, labour etc being shared between the properties. How should the applicant demonstrate that the irrigation of any new areas will not be to the detriment of natural resource conditions? Section 5.4.1 of the application form requires the applicant to describe the impacts of new irrigation on deep drainage, water tables, salinity, soil health and suitability. In demonstrating their ability to manage impacts on natural resources, the applicant may choose to refer to myBMP accreditations which they might hold or the suitability of the site based on documents such as the Waggamba land use manual or Queensland Agricultural Land Audit. What happens if an application is submitted after the closing date for the month? As there are six monthly assessment periods in each round, DNRM will put aside late applications for assessment in the following month’s assessment periods. If there is no further monthly assessment (i.e. the application is submitted after the last monthly closing date for the round), DNRM may hold the application until the next round. In this instance, however, DNRM cannot guarantee that the eligibility criteria and application process will be the same in that next round. 29
© Copyright 2026 Paperzz