eidn524

Proposal

TOOWOOMBA
WATER REUSE PROJECT

prepared by

EIDN

Environment Industry Development Network

"A World Class Water Reuse Facility"

Toowoomba City Council
in Partnership with
Water Reuse Venture
Environment Industry Development Network

Acknowledgement

The report is based on information obtained from the following sources and organisations and is deemed to reflect the latest status of research:

Name Organisation Location

Rod Williams CMPS & F Brisbane
Brian Stitt CMPS & F Brisbane

Ian Prince EIDN    Brisbane
Ian Fergus CRC WMPC   Sydney
Ian Bergman EIDN    Canberra

Tony Wright Wright Corp. Strategy Sydney

Tony MacCormick Memtec Sydney
Andrew Layson Memtec Windsor

Mark McNamara Clough Environmental Sydney
Graham Richardson Water & Energy Technology Sydney
John Anderson DPW & S Sydney

Andrea Huxley Coopers & Lybrand Sydney

Dale Rohe Montgomery Watson Sydney
Joe Jacangelo Montgomery Watson Virginia, USA
Phil Longfield Sydney Water Corporation Sydney

Paul Greenfield Univ. of Qld, CRC Brisbane

Databases at:   CRC for Waste Management & Pollution Control CRC WM & PC
   Environment Industry Development Network EIDN
Australian Water & Wastewater Association AWWA
   American Water Works Association   AWWA
   Water Environment Federation   WEF
   International Association on Water Quality IAWQ

Thank you for your great effort and co-operation.

Hans J. Zerr Sydney, July 1996TABLE OF CONTENTS

Executive Summary

1. Background

1.1 Project Information
1.2 The EIDN Water Re-use Venture
1.3 Mission Statement
1.4 EIDN Member Companies - Qualifications and Experience

2. The Toowoomba Water Reuse Project

2.1 Business Concept - Water Reuse
2.2 Benefits
2.3 Reference Case Studies
2.4 The Project Plan
2.5 The Outcome

3. The Risk / Reward Balance

3.1 Health
3.2 Future Demand
3.3 Legislative and Regulatory Changes
3.4 Public Acceptability and Community Liaison
3.5 Political Changes

4. Technical Viability

4.1 Case Studies
4.2 Treatment Process and Alternatives
4.2 Proposed Site
4.3 Effluent Quality
4.4 Monitoring

5. Commercial Viability

5.1 Development Strategy
5.2 Grants and Funding Support
5.3 Market Analysis Re-use Customers
5.4 Capital Cost
5.5 Operations and Maintenance Cost
5.6 Treated Water Cost

6. Implementation Scenarios

Appendices
EXECUTIVE SUMMARY

This report provides the background information for the planned proposal to Toowoomba City Council, Various sections of this report can be directly integrated into the proposal. It spells out various business scenarios and investigates comparable case studies.

Strategy
The proposed strategy for this project is to develop a consortium with complementary capabilities from suitable member companies of the EIDN Wastewater Re-use Venture and Toowoomba City Council. This Consortium will develop a economically feasible water re-use plant which will supply tertiary treated water to non potable re-use customers (Stage 1), at a cost of less than $ 0.80 / kilolitre (saving of > 20 %). A second scenario of potable re-use is proposed for Stage 2, with direct supply to the Inlet of Mt Kynoch water treatment plant, via a 30 day storage and retention dam. Cost of treated potable water is projected at less than $ 1.00.

Pricing Conditions
There is a wide acceptance in Australia that the price of water and sewerage services to the consumer does not reflect the true community cost. Investment in recycling infrastructure has been constrained by the price / cost imbalance which makes the cost of treating wastewater for some purpose greater than the price at which it can be sold in competition with mains delivered potable water. But this is changing as treatment costs decline and water resource and services pricing is increased in real terms, as is the case in Toowoomba.

Advantages of the Toowoomba project
The Toowoomba project carries distinct economic advantages compared to other investigated, recent case studies in Australia:

Current Price of potable water is relatively high at $ 1.00;
Potable / non potable water demand is increasing and overtaking existing supply capacity;
Current infrastructure requires expensive upgrading to meet demand (30 km pipeline, high lift pumpstations, new dam).
High quality secondary treated effluent is available for further tertiary treatment;
Re-use customers are within a 6 km radius; larger users are within a 30 km radius,
Local council is in support and willing to investigate water re-use, both in a client role and as possible consortium partner with equity participation, O & M and distribution activities.

This project will establish Toowoomba City Council as an environmental innovator and leader
by helping to prevent excessive diversion of water from alternative uses, including the natural environment (dams and ground water). It will also demonstrate Australian technology and know how; while securing the health and safety of water customers by applying rigorous sampling and monitoring programs by leading Australian scientific institutions.
Project Economics
To determine the economic viability of a wastewater reclamation program at Toowoomba it is necessary to estimate the cost of a tertiary treatment system. A two stage program has been identified as the preferred scenario for implementation. Full details on the project's economic viability are shown in several demand and ownership scenarios on the following page and in Chapter 5.5 of the main report.

Please note that the economic assessment does not take into account further incremental savings such as infrastructure cost deferrals or environmental savings. It can therefore be seen as a "worst case scenario". Short summary as follows:

Stage 1 will produce non potable quality water to supply the peak demand of 2,500 Kilolitre / day to the identified non potable re-use customers, for irrigation purposes and industrial usage via a new, dedicated reticulation and metering system. Estimated capital cost for Stage 1 is
$ 1,000,000 for plant and equipment and $ 1,000,000 for a dedicated reticulation system.

Stage 1 of the project is economically viable at a re-used water production cost of $ 0.60 / kilolitre.

Stage 2 will produce potable quality water from a modular, independent plant utilising "Best Available Technology" and be implemented after the following key issues are resolved:

Health and Environmental (international and domestic) regulations for potable reuse;
Community / ratepayers are in support;
Long term health aspects and Water Quality Assurance are thoroughly investigated;
Project Economics (including costs of ongoing monitoring programs) are satisfactory;

It is anticipated that Stage 2 will be installed after ~ 3 years of operation of Stage 1. It will produce potable quality water with multiple barrier technology for contaminants and organisms. Initial minimum capacity of Stage 2 will be 3,500 kilolitre / day.

The re-purified water will be stored in a buffer dam with 30 day retention time and fed back to the inlet of Mt Kynoch water treatment plant, blended with feed water from the dams and then undergo further conventional treatment.

The reclaimed water will be of the same or better chemical and microbiological quality as the current feed water to Mt Kynoch water treatment plant. This is a similar arrangement as in the San Diego (USA) re-use project currently being implemented, and key findings from this large scale project (US $ 120 Million) can be directly transferred to the Toowoomba proposal, as data and new regulations become available. Estimated capital cost for Stage 2 is $ 3,900,000 for the sophisticated multi stage plant and $ 2,825,000 for a pipeline, storage dam and blending facility at Mt Kynoch.

Stage 2 of the project is economically viable at a re-used water production cost of $ 0.83 / kilolitre, if TCC can fund the reticulation system from existing Capital Expenditure.
Scenario 1

1.Consortium of EIDN W.R.V. Members Build, Owns and Operate Plant for
$ 1,000,000 (Stage 1) or $ 3,900,000 (Stage 2) financed at 7 % over 10 years. (Consortium could include TCC)

2.Toowoomba City Council provides Reticulation, financed from Revenue at 7 % over 25 years.

Outcome:

Stage 1: (Non Potable)
Profitable to Consortium at Reuse Water Cost of $ 0.8 /kl, annual return (before tax) of 10 % to Consortium.

Stage 2: (Potable)
Not profitable at Reuse Water Cost of $ 1.05 /kl, annual return (before tax) of 0 % to Investor, even at proposed flowrate of 2975 kl/d.

Scenario 2

1.Consortium of EIDN WRV Members Builds, Owns and Operates Plant for
$ 1000,000 (Stage 1) or $ 3,900,000 (Stage 2) financed at 7 % over 10 years. (Consortium could include TCC)

2.Toowoomba City Council provides Reticulation, from existing budget (or grants), with no recovery of capital cost.

Outcome:

Stage 1: (Non Potable)
Profitable to Consortium at Reuse Water Cost of $ 0.8 /kl, annual return (before tax) of 18 % to Consortium.

Stage 2: (Potable)
Profitable at Reuse Water Cost of $ 1.00 /kl, annual return (before tax) of 5 % to Consortium, at proposed flowrate of 2975 kl/d to indirect potable reuse via 30 day storage ponds and / or aquifer re-charge.

Scenario 3

possible further scenarios:
more R & D grant funding available
20 % subsidy on infrastructure (Govt projects)
up to 40 % subsidy on both plant and infrastructure from "Develop Australia Bonds" to Consortium, incl TCC.
Proposed Scenarios:

Base Parameters:

"W.R.V. Consortium 'Build Own Operates' Water Reuse Plant "
Parameters Non Potable Reuse Potable Reuse
Minimum Economic Capacity Peak 2000 kl /day Peak 3500 kl /day
Minimum Required Demand average 1333 kl /day average 2975 kl /day
Capital Cost $ 1,000,000 $ 3,900,000
Reticulation / Storage Cost $ 1,000,000 $ 2,825,000
SCENARIO 1 "TCC + Consortium Owns / Operates Distribution System, financed by H20 Revenue"
Parameters Non Potable Reuse Potable Reuse
Current Benchmark Price $ 1.00 / kl $ 1.00 / kl
Total Capital + Financing Cost $ 0.60 / kl $ 1.05 / kl
H2O Cost to Consumer $ 0.80 / kl $ 1.00 / kl
Before Tax Profit $ 96, 975 / year $ 0 / year
Return on Investment - Investor 10 % 0 %
SCENARIO 2 "TCC Finances Distribution System from Allocated Funds or Grants"
Parameters Non Potable Reuse Potable Reuse
Current Benchmark Price $ 1.00 / kl $ 1.00 / kl
Total Capital + Financing Cost $ 0.43 / kl $ 0.83 / kl
H2O Cost to Consumer $ 0.80 / kl $ 1.00 / kl
Before Tax Profit $ 181,789 / year $ 189,796 / year
Return on Investment - Investor 18 % 5 %

Other incremental Cost Benefits to Toowoomba Council and its rate payers:
Deferral of infrastructure cost - Mt Kynoch WT Plant and future water supply.
Reduction of total treatment cost, including wastewater treatment
Drought proofing
Irrigation
Beautifying "Toowoomba - Garden City"
1. Background

Project Background

Toowoomba City Council & EIDN

Discussions have been held between the staff of the Toowoomba City Council (TCC) and Environmental Industry Development Network regarding a demonstration project to recycle wastewater effluent for potable and industrial use in Toowoomba.

The project aims to achieve public acceptability of potable re-use through a staged demonstration scheme involving initially re-use by industry of non potable grade water.

Initially a 2.5 megalitre tertiary treatment plant would be built next to the new BNR plant at Wetalla. Treated non potable grade water would be piped to large private and public users for non potable use within a radius of up to 6 km from the plant.

Following demonstration of the technology and further clarification of public health issues a second plant with higher level treatment will be built to supply potable grade water for indirect potable re-use. Options available for indirect re-use are (i) blending with feed water to Mt Kynoch Water Treatment plant after 30 day retention in a storage dam; or (ii) aquifer recharge to augment groundwater supply. The project would meet an important strategic objective of opening the field of re-use in Australia and export markets. The use of technology, systems operational management and monitoring not involving unacceptable health risks would be a fundamental requirement.

The project would benefit the Toowoomba City Council by providing an additional water supply that would partially offset the need for the augmentation of Mt Kynoch water supply.

Current Reclaimed Effluent Usage in Australia

Current direct beneficial re-use of urban wastewater in Australia is in the order of 100,000 ML/a (270 ML/d) or about 6 % of total urban waste water flow. When account is taken of indirect beneficial reuse it is in excess of 200,000 ML/a (550 Ml /d) or about 12 % of the total urban wastewater flow.

Direct beneficial re-use of urban wastewater is expected to double to around 200,000 ML/a by the year 2000. A large percentage of poorly pre-treated water is currently only used for secondary industrial purposes and irrigation. The Toowoomba project proposes to go the next step by providing pre-treated and disinfected re-purified wastewater for local industry and a drought proof, safe water supply for council use.
1.2 The EIDN Wastewater Reuse Joint Venture

The Environment Industry Development Network is an industry development initiative of:

the Department of Industry, Science and Tourism
the CRC for Waste Management and Pollution Control Limited (CRC for WMPC)
the Environment Management Industry Association of Australia.

The network has created a Water Reuse Joint Venture to integrate the disparate activities of firms and governments with interests in the environmental management, technology and services sector and to provide project development, innovation and capability building services. The purpose of the Joint Venture is to accelerate the development and demonstration of a strong, innovative and internationally competitive environment management industry.

1.3 Mission Statement

The EIDN Project Team has set clear objectives to achieve the key goal:

"To develop a world class water reuse project, built with Australian technology and know-how, demonstrating the commercial, economical and environmental benefits of water reuse with minimum risk to the water customer."

1.4 EIDN Member Companies - Qualifications and Experience

The Environmental Industry Development Network has access to the skills, technology, and project execution experience of all its eleven member companies.

The Synergy of Complementary Capabilities

Each consortium partner would bring to the alliance a special, possibly unique strength. Together the partners will develop the collective strength of the alliance, to offer Toowoomba City Council a service that could not be achieved individually.

The outcome will be an Australian wastewater consortium capable of supplying a full range of services up to and including total catchment management. This consortium would provide services not previously available from a single source before and will help to make the Australian wastewater industry more internationally competitive in this area as well as providing better management for our scarce water resources.

Participating Wastewater Reuse Venture Companies:

For the Toowoomba project the following companies will have key contribution roles and carry full responsibility for cost efficient and performance driven project implementation to the full satisfaction of the client. Together they will contribute over XX years of professional experience in the Australasian Market.

---- --- S A M P L E O N L Y - P L E A S E U P D A T E ---- ----

Memtec Pty Ltd - Technology Suppliers
Quality Assurance System: ISO 9001
Nominated Project Contact: Andrew Layson
Water Reuse Projects: XXX, including installations at some of world's largest water re-use plants

Clough Environment Pty Ltd - Constructors
Quality Assurance System: ISO 9001
Nominated Project Contact: Mark McNamara
Environmental Projects: XXX, including extensive project experience in Qld.

EIDN - Client and Community Liaison
Nominated Project Contact: Ian Prince ( Brisbane)
Nominated Project Contact: Tony Wright (Sydney)
Water / Wastewater Projects: XX,, including extensive Community / Authority Liaison Experience.

University of Queensland - Water Quality Compliance Testers
Quality Assurance System: ISO 9001
Nominated Project Contact: Professor Paul Greenfield
Environmental Projects: XXX, Queensland based

Detailed project references and capability statements are attached in Section 1 of the Appendix.2. The Toowoomba Water Re-use Project

2.1 Business Concept - Water Reuse

The Approach
The key driver for this project are the potential savings available to rate payers and water users at Toowoomba. Overseas case studies show economic savings of minimum 20 % are required to gain full customer acceptance of water re-use. Current water charges at Toowoomba are $ 1.00 per kilolitre. The proposal is structured on the requirement to achieve this goal, with a maximum cost for non potable water of $ 0.80 / kilolitre, constituting a financial saving to the water customer of > 20 %.

A second scenario of potable re-use is proposed for Stage 2, with direct supply to the Inlet of Mt Kynoch water treatment plant, via a 30 day storage and retention dam. Cost of treated potable water is projected at less than $ 1.00.

Advantages of the Toowoomba project
The Toowoomba project carries distinct economic advantages compared to other investigated, recent case studies in Australia:

Limitations
The proposed Stage 1 of the project is financially viable through the identified immediately available re-use market.

However, if extensive monitoring beyond the routine requirements of the Australian Guidelines for Water Reuse are required, the project depends on external grant funding or research and development concessions from state or federal incentives. This is particularly if Stage 2 (- Potable Re-use) is implemented, and extensive health and water quality baseline studies are required. Similar studies are currently carried out in large scale international water re-use projects (San Diego, $ 140 million), with monitoring budgets of several million $.

It is proposed to postpone Stage 2 until international standards are established and adopted, or extensive grant funding is available to local research institutions (Uni of Qld)

2.2 Summary of Benefits to T.C.C. :

Establish Toowoomba City Council as environmental innovator and leader.

Water conservation and more efficient use of scarce water resources through reduction and / or delay in development of raw water resources thus preserving and extending their life.

Establishment of a demonstration project and opportunities for an Australian Consortium to demonstrate world class technology in partnership with a progressive city council.

Potential capital cost savings (depending on schemes selected and timing)

Potential reduction in water and service charges to customers, compared with conveying raw water over long distances.

The establishment of demonstrated technology that may be suitable for export and provide manufacturing and service opportunities for Australian firms.

Substantial environmental improvements through reduced wastewater quantities and biological nutrient loads on receiving waters thus reducing the pollution load on the Murray Darling River system.

Enhanced understanding and acceptance of the water reuse through involved communities and stakeholders.

Partnering and support through committed and experienced companies from the Environment Industry Development Network, who are fully committed to this project, from concept and development through to implementation and community liaison assistance.
2.3 Reference Case Studies

Eraring Power Station, NSW, Australia

Eraring Power Station, which provides 25 % of the power requirements of NSW, uses around 4 Ml water / day. Eraring Power Station was close to the planned route of the effluent pipeline from the new Dora Creek STP. This provided the opportunity for reducing potable water use, by substituting effluent for most uses except drinking and showering. The plant cost $ 4 million, and realised the following savings: $ 1.0 million per year saving in purchase of potable water, $ 0.1 M per year saving in operating the power station's demineralised water plant. Construction of a planned effluent pipeline could also be deferred for at least 15 years. The proposed Toowoomba plant uses the same proven CMF / RO technology as the Eraring plant. (Full project details in Appendix)

City of St Petersburg, Florida

The City of St. Petersburg, Florida operates one of the largest urban water reclamation systems in the world. The initial portion of the system went into operation in 1978. Since that time it has grown to serve over 6,300 homes and businesses throughout the City. In 1989, approximately 65 000 kilolitres of reclaimed water was used by system customers. The City of St. Petersburg is located on a peninsula between Tampa Bay and the Gulf of Mexico. It has no significant potable water supplies within it's corporate boundaries. As a result, water is imported from adjacent counties where several other municipal governments also obtain their water supply. The reclaimed water system has been successful in reducing the need to develop additional water sources for the City in the outlying counties where economics, limited availability, and politics would be a major concern. The City has learned much about operating and managing a major coastal-area water reclamation system during the past 12 years.

Benefits of using Reclaimed Water
One obvious benefit of the City's reclaimed water system is the conservation of water resources. Since the system has been in operation, potable demand has levelled off. In 1989, the reclaimed water system supplied nearly 30 % of the total water provided by the Utilities Department. Because of the lowered demand for potable water, the necessity for a water plant expansion projected for the late 1980's has been postponed until the late 1990's, or may not occur at all if current water usage trends continue.

Construction Requirements
One of the early decisions made during system installation involved colour-coding of all the PVC piping, using blue for potable water, green for sewers, and purple for the reclaimed water. All buried ductile iron piping is affixed with a coded purple tape to denote it as a part of the reclaimed water system. Hydrants have been installed on the system. These are now used to flush the lines are identified with colour codes. Reclaimed water currently serves only as a backup for the fire protection system. Backflow preventers have been installed at each potable water meter wherever reclaimed water is available.

San Diego Repurification Project, California

San Diego proposes to supplement portions of the city's water supply by using highly treated reclaimed water or "repurified water" to augment raw surface water supplies. San Diego, unlike other portions of Southern California, does not have an extensive groundwater basin and therefore is dependent upon imported water supplies. The project would augment raw surface water supplies with 76 000 kilolitres of highly treated reclaimed water. Tertiary filtered effluent would be treated by Mirofiltration and Reverse Osmosis, ozone / peroxide disinfection, ion exchange and chlorination. Reclaimed water would be blended with imported water in a reservoir prior to receiving conventional drinking water treatment. Ultimately, the proposed project would supply approximately 6 % of the City of San Diego's drinking water supply. (Full Project Details + Sample Community Education / Liaison Brochures + Newspaper / Media Response included in Appendix)

Water Factory 21, Orange County District, Los Angeles, California

Orange County Water District serves a population of some 1.9 million, and is situated to the south of Los Angeles. The area receives less than 350 mm of rainfall in a typical year, but has large groundwater reserves. Groundwater protection is therefore a priority. Water Factory 21 commenced operations in 1971, with the objective of providing reclaimed water for aquifer re-injection in order to combat sea water intrusion. In 1995 some 18,500,000 kilolitre was injected, of which two thirds was reclaimed sewage. The groundwater mound thus created also flows inland to recharge aquifers that are drawn upon to supply urban water supplies. A full description can be found in the appendices. The most salient point with regard to the Toowoomba proposal are given below:

The influent is treated sewage from a number of surrounding sanitation districts. Water Factory 21 provides chemical clarification, re-carbonation, multi-media filtration, carbon adsorption, chlorination and reverse osmosis. This treatment train produces a drinking-quality water.

The Microfiltration Technology proposed for the Toowoomba project has been evaluated at Water Factory 21 during the past two years. It is confidently expected that the new technology will reduce treatment plant cost. The key point about this technology is that they are modular. Larger capacities are achieved by simply increasing the number of modules.

The benefits of the scheme are viewed as being (i) reduced cost of water supply, (ii) reduction in the volume of wastewater being discharged to the ocean, (iii) reduced dependency on the severely stretched Colorado River and Northern California Water supplies, and (iv) constant availability of reclaimed water, when imported supplies are reduced by drought or emergency interruptions (e.g. earthquakes).
2.4 The Toowoomba Project Plan

The Water Reuse Venture's proposed implementation plan and a graphical demonstration of the proposed approach to the execution of the project is contained in the following pages.

The concept proposed is for a group of companies with relevant capabilities to form a joint venture with Toowoomba City Council specifically for this project.

Such a venture will bring with it the experience, capacity and credibility to:

a)offer a total, integrated solution;

b)share all operational risk elements; particularly technology, cost, project delivery, environment and health.

c)supporting TCC in persuading the local community of the wisdom of exploring wastewater re-use concepts.

Toowoomba City Council - Commercial Participation

TCC is currently investigating the partial corporatisation / commercialisation of some of Council's operating functions and departments, in particular service provision elements. The proposed private / public consortium arrangement offers the opportunity to pursue this plan with direct savings and low risk to the ratepayers of Toowoomba, while also securing the support of applicable state and federal funding schemes.(S. 5.3)

The key role for Toowoomba City Council will be the securing of long term supply contracts with interested local industry parties, the distribution of re-purified water and metering and billing activities. It will also play a role in attracting future growth of commercial, manufacturing and agricultural operations through the secured supply of much needed water in the region, with flow-on long term economic benefits.

Intellectual Property Protections

The intellectual property protection for applied technology will be maintained within the consortium, with a view to actively pursue and develop other feasible water re-use projects.

Legal review - Contracting options

A legal review of the relevant applicable conditions is to be carried out prior to commitment of either party. However, sufficient high profile case studies exist within
Queensland to demonstrate the achievable savings from private / public partnerships. For example, the recent award of a 25 year BOT (Built Operate Transfer) contract for Noosa STP resulted in significant savings and is seen as a precedence for other upcoming infrastructure projects in Queensland.

Ownership Scenario : T.C.C. - EIDN Wastewater Reuse Consortium

The proposed Split of the project into three parts owned by Consortium, EIDN WRV & TCC could be structured as displayed in the following table:

Part / Activity Ownership Maintenance Revenue /Expense comment
Land TCC TCC TCC STP site
Buildings Consortium Consortium Consortium
Equipment Consortium Consortium Consortium CMF + Disinf.
O & M Equipment Consortium Consortium Consortium to metering point
Metering main supply Consortium Consortium Consortium at metering point
H2O Quality Control joint joint Consortium from metering pt.
Reticulation TCC TCC TCC from metering pt.
O & M Reticulation TCC TCC TCC from metering pt.
Supply contract - Ind. TCC TCC TCC sensitive issue
Metering customers TCC TCC TCC existing customers
Collecting charges TCC TCC TCC as at present
Customer education joint joint joint 3 year term
Reuse Marketing joint joint joint 3 years term

2.5 The Outcome:

The EIDN Water Re-use Venture is committed to striving for a "World Class Water Re-use Project" through a combination of :

Quality personnel in an aligned Joint Venture pursuing common project goals with Toowoomba City Council and its ratepayers.

Experience, technical excellence and prudent innovation by utilising Australian Engineering and Technology.

Incorporation, as agreed with Toowoomba City Council, of the results of previous project experience and large international case studies expertise available to the Re-use Venture.

A well thought out implementation plan.

A commercial approach that strikes an appropriate balance between risk and reward between Toowoomba City Council and the Water Re-use Venture.
3. The Risk / Reward Balance

3.1 Health

The potential health risk for humans from contact with repurified water has been extensively assessed and monitored at existing large scale reuse projects world wide. These include projects in Israel, South Africa and arid areas of the USA. The proposed Toowoomba reuse project utilises 'State of the Art" microfiltration technology, coupled with additional disinfection which acts as a proven barrier for parasites and viruses. Stage 2 comprises a double membrane system as required by the US EPA for potable reuse water repurification systems, followed by additional residence time. This technology is documented in the USEPA guidelines (1992) and the Australian Draft Guidelines for Wastewater Re-use (1995). Investigations at other re-use sites found:

no evidence of increased enteric diseases in urban areas irrigated with treated reclaimed wastewater using coagulation, filtration and disinfection, and
no evidence of significant risks of viral or microbiological diseases as a result of exposure to effluent aerosols from spray irrigation with reclaimed water.

The Australian Draft Guidelines recommendations for design, construction, operation, monitoring and turbidity / faecal coliform standards are also being implemented for the Toowoomba Re-use proposal. A comprehensive monitoring and water quality test program will be developed for this demonstration project. It is proposed that this work be carried out by the University of Queensland and member companies of the Australian Medical Association, with financial assistance through research grant funds.

3.2 Future Demand

The future growth projections for the Toowoomba District indicates significant growth and subsequent increase in water demand for domestic purposes. Industrial growth in the area is also currently limited due to reduced supply of water. Identified Projects include the Oakey Electricity Generation Plant and a new Water supply pipeline to the Oakey Army Camp. Some potential industrial markets for reclaimed water require specific water quality; in particular low total solids content. The water supplied under Stage 2 will produce a high quality Reverse Osmosis treated water with a significant lower salt content than the current potable water source. This makes it also attractive to potential power generators or other industry with cooling towers, due to significantly reduced ongoing on-site water pre-treatment costs.

More details on demand management are found in Chapter 5.3. (Market Analysis)
3.3 Legislative and Regulatory Requirements

The reuse of wastewater is paramount on the agenda of State and Federal Environmental Protection Authorities. Concerns about water supply or environmental pollution may emerge as political or as institutional constraints.

The use of reclaimed water is governed by legislation in all States and Territories. Specific statutory obligations may be imposed under health, environmental or agricultural legislation or all three.

Wastewater treatment plant operators and end users may be liable under common law and the Trade Practices Act for the misuse of a wastewater product that causes harm. Reclaimed water use should only be allowed if the intended application is an option which meets water quality requirements listed in the "Guidelines for Use of Reclaimed Water."

To minimise exposure to legal and financial risks, it may be necessary to:

develop a system for alternative discharge or storage and further treatment for water out of specification;
ensure staff and contractors receive appropriate training to understand legal requirements and risks;
archive reclaimed water records properly so that they can be retrieved at a later date;
provide clear, accurate and comprehensive information to consumers on limitations or restrictions on reclaimed water uses and other relevant issues.
develop, implement and audit a quality assurance program that describes procedures for monitoring, reporting, record keeping and audited water activities;
develop effluent management protocols which ensure that appropriate contractual arrangements are in place and that the responsibilities of the respective parties are clearly set out.

3.4 Public Acceptability and Community Liaison

Several Australian water agencies have studied the acceptability of wastewater re-use, notably Brisbane City Council, Melbourne Water, Sydney Water, ACTEW, SA Water and the Water Authority of W.A.. In these studies, often involving workshops, the community has been in found to be generally in favour of re-use. Public health concerns are frequently raised by the public, particularly in relation to residential re-use schemes and the irrigation of urban recreational areas and crops for human consumption. However, of the respondents 19 % favoured potable re-use. Over 76 % of respondents expressed willingness to consider potable re-use if convinced of the need and the adequacy of the safeguards.

The importance of strong public education programs and public involvement in decisions about the development of re-use projects must therefore be emphasised. Public acceptance can be developed through ongoing workshops and demonstrations to the community, industry associations, school programs, visitor programs to reclamation facilities and active communications activities.

As the Stage 1 of the Toowoomba re-use project only proposes non potable re-use and park land irrigation it is also well placed as a demonstration project to provide community education into water re-use, without raising the "alarms" associated with direct potable re-use. The proposed partnering / consortium arrangement between Toowoomba City Council and the EIDN will provide direct access to the Ventures Community Liaison Consultants and - Expertise. Public acceptance will be developed through ongoing workshops and demonstrations to the community, industry associations and school classes.

3.5 Political Climate

It is crucial to recognise the importance of strong regulations for the development of wastewater re-use projects. This provision would create social legitimacy for the re-use industry, gives utilities a legal framework within which they can operate, and provides the public with an independent source of information about the performance of re-use schemes.

As the current political climate in Australia is supportive of "Cleaner Production" and "Sustainable Development" projects, major reviews of "Greener Technology" and research funding is in progress by the Coalition Government, including the stated support for much needed water re-use projects.

The Budget announcement on 20 August 1996 will enable an up-to-date review of the current valid situation.

4. Technical Viability

4.1 Case Studies:

Types of Application:

Irrigation:

Irrigation of urban landscape and recreational areas is one of the most common applications of wastewater world-wide. Municipal authorities throughout Australia have used treated wastewater for irrigation of recreational areas for decades. The demand for irrigation water in Toowoomba is seasonal, with higher demand of kL / day during the Winter months, and kL / day during Summer months with higher natural precipitation. The irrigation is best applied during the night hours, and is therefore providing a balanced demand pattern with the higher daytime demand for industrial and commercial users.

Industrial / Commercial Reuse

The most common industry use of reclaimed water is non-contact cooling. Examples include the Eraring Power station in NSW, which is utilising the proposed process to treat 4 Ml / day for high quality boiler make up water. (full description in the appendices). This plant was also installed by an EIDN Water Reuse Member company.

Quality requirements for the interested industries vary with use. Boiler feed water must typically be of very high quality, to avoid corrosion and scale problems.

No food manufacturer was approached for re-use. (However in California a Coca Cola plant uses reclaimed water)

Indirect Potable

Groundwater and surface waters may be augmented with reclaimed water. Water may be extracted from these sources and subsequently treated for potable purposes. A minimum of secondary treatment is needed in order to provide a suitable raw water quality for subsequent treatment to potable quality.

Suitable dilution and storage prior to abstraction and subsequent treatment are required to ensure that potable water derived from these sources meets Australian Drinking Water Guidelines.

4.2 Treatment Processes and Available Technologies

All currently available water re-use processes and technologies were initially assessed for this project and a selection was made based on the following criteria:

Proven Technology for Wastewater Application;
Trialled and available in Australia;
Documented Success in Removal of Virus, Pathogens, Bacteria;
Preference was also given to Australian manufactured / engineered technology;
Economic for small scale reuse projects;
Client Preference.

While the purpose of this report is not to argue the case for membrane technologies, it is important to emphasise that membranes provide a physical barrier to the passage of human pathogens. This facilitates the required multiple levels of disinfection and the ability to control reliably from a remote location via telemetry and SCADA (Supervisory Control and Data Acquisition).

Filtration

The selected filtration process was therefore Continuous Microfiltration due to its well documented performance in medium and large scale Water Re-use projects in Australia and the US and its ability to act as a 3 - 6 log removal barrier for Virus, Pathogens and Bacteria.

Ion Removal (Stage 2)

Selected process is Reverse Osmosis based on Thin Film Composite (TFC) membrane systems. Proven performance at large scale applications (Water Factory 21, US and Eraring Power Station, NSW) and a further barrier to remove hazardous organic and inorganic materials.

Disinfection

Pre- and Post Chlorination for Stage 1 is included as a major disinfection step. Advantages over other systems are : Economics (Chlorine dioxide available from Wetalla STP storage), low capital and operating costs, plant operators experienced in handling, proven disinfection capability. High Chlorine residual can be used effectively to control biofouling at the Re-use plant and distribution systems.

Disadvantages: Possible generation of THM by-products in re-use water. Currently under research.
Post - Ozonation for Stage 2

Post Ozonation is proposed for Stage 2 - "Near potable re-use", as back up Disinfection Stage after Post Chlorination. This is in accordance with current US guidelines requiring multiple disinfection barriers to ensure complete destruction of micro-organism such as Cryptosporidium or Giardia. Australian Technology Suppliers (e.g. Brisbane based Watertec Engineering) are available for commercial Ozonation systems.

4.2 Proposed Site

The proposed site for the modular tertiary treatment plant is within the boundaries of Wetalla sewage treatment plant. This has the benefits of ease of operations with existing plant personnel, security and reduction of site establishment cost. Additional benefits are shorter pipe runs, existing chemical storage facilities for cleaning chemicals, treatment of CMF / RO return streams by feeding to the Inlet works of the Wetalla BNR plant, and connection to the plants SCADA control system.

4.3 Expected Effluent Quality :

The effluent quality achieved by the individual treatment steps is expected to be as follows:

Project Status: July 1997 Reuse Stage 1 Reuse Stage 2
Parameter Upgraded STP Biological Nutrient Removal Plant Continuos Microfiltration+ Disinfection C. M. F. + Reverse Osmosis + Disinfection
BOD 5 10 mg/L < 1 mg/L < 1 mg/L
Suspended Solids 15 mg/L < 1 mg/L < 0.1mg/L
Total Nitrogen 5 mg/L < 1 mg/L < 0.1mg/L
Total Phosphorus 1 mg/L < 0.1mg/L < 0.1mg/L
Total Coliforms < 200 / 100 ml < 10 /100 mL < 10 / 100 mL
Thermotolerant Coliforms < 100 / 100 ml < 10 /100 mL < 10 / 100 mL
Total Dissolved Solids ~ 800 mg/L < 800 mg/L < 50 mg/L

Health Guidelines:

Effluent suitable for urban reuse must meet the following criteria:
faecal coliforms < 1 / 100 ml
total coliforms < 10 / 100 ml
virus 2 / 50 L
parasites 1 / 50 L
turbidity < 2 NTU
Treatment Reliability and Contaminant Barriers

The treatment reliability of the planned water re-purification plant centres around the effectiveness with which pathogenic micro-organisms and toxic or potentially hazardous chemical compounds are removed from the water. The standards for reclaimed water need not be more stringent than that for drinking water but the degree of plant and quality control to consistently maintain these standards should be of a higher order than for conventional water supplies. Procedures to be followed to maintain a high order of treatment reliability include:

1.Determination of occurrence, concentration and types of toxic inorganic chemical compounds, pathogenic micro-organisms and hazardous organic chemical compounds to be expected in the raw water supply.

2.Identification of critical parameters associated with each of these compounds and determination of correlation between parameter and substance or organisms.

3.Development of a control strategy to maintain plant performance.

4.Establishment of a minimum of two contaminant barriers for each of the hazardous substances or organisms.

5.Establishment of a monitoring system whereby all the parameters concerned are monitored with a frequency that is truly representative of product quality.

6.Maintenance of permanent records to evaluate plant reliability and product quality.

4.4 Water Quality Monitoring / Assurance

The Re-use Joint Venture proposes to facilitate all associated monitoring programmes to enable the transfer of this technology to other locations in Australia. It is to be stated that this work is in addition to the basic requirements of the "Draft Guidelines for Sewerage Systems - Use of Reclaimed Water", which covers the primary aspects of water quality control by weekly testing for pH, Suspended Solids, Coliforms and Turbidity (applicable to "Stage 1 - Non Potable Reuse").

It is suggested that a comprehensive Water Quality Monitoring / Assurance programme will be developed and carried out by Paul Greenfield's group at the Advanced Wastewater Management Centre - University of Queensland. The application of new technology (for Qld) and the research nature of the project will place it into a good position of being eligible for "Research and Development Grants". Initial discussions with Paul Greenfield confirm the capability of the University of Queensland to carry out the required tests and their interest to become part of a research / study group, that can participate in the assessment and promotion of the water re-use concept on a national and international scale.

Health Baseline Monitoring (after establishment of Phase 1)

Members of the Australian Medical Association (Qld Branch) have indicated their availability and interest to conduct a comprehensive health monitoring program to Ian Prince. Again, the Research nature of the Project puts it in a good position to be eligible for Research and Development Grants. (To be confirmed)

However, due to the high costs involved, due care must be taken not to repeat the related health studies currently under way in various countries. These extensive health baseline and impact studies are usually associated with large re-use projects (e.g. San Diego Water Repurification Project, Budget US $ 120 Million). Findings from these projects can be directly transferred to the Toowoomba project due to the similarity of applied technology, climate, origins of wastewater, socio-economic groups, living standards and re-use applications.

Alternative: Groundwater Recharge

The alternative to a dedicated distribution system (Stage 1) or storage and blending is recharge of suitable ground water aquifers in the Toowoomba region. This practice has been successfully applied in the US for over 25 years. Advantages are the long residence time and additional purification through soil microbiological activity and natural die off.

However, this practice requires extensive geotechnical and hydrological investigation to identify site suitability. Water Quality requirements are similar to direct potable re-use due to risk of contamination of the ground water supply. This option is not further investigated in this report due to lack of local hydrological and other feasibility information.

5. Commercial Viability

5.1 Development Strategy

Economics of Re-use

It is difficult to obtain data that would allow a conclusive analysis of the economics of the currently operating larger re-use schemes. It appears that most of the larger water projects in the US receive considerable amounts of subsidy.

The cost of producing reclaimed water is competitive with alternative sources of water supply. The most successful re-use projects are all in areas where the cost of alternative water supplies are very high, as is the case in Toowoomba (remote dams and high pumping heads). To determine if the Toowoomba water re-use project would be economically viable, it is important to compare the often varying approaches to water supply and waste management in each specific situation. The opportunity cost of alternative, conventional water supply projects are often not being reflected in real costs in the assessments of re-use projects, creating an artificially high cost per kilolitre in most economic assessments.

Incentive Pricing

Recent projects in New South Wales, including the Rouse Hill dual reticulation project (full info sheet in Appendix) carry a significant amount of infrastructure cost that does not come into calculation in the charged re-used water price. The proposed price for re-claimed water, treated by a $ 55 Million secondary and tertiary treatment plant, and reticulated through an expensive dual reticulation system with Post - Dechlorination, is currently set at $ 0.20 - $ 0.30 ! However, one has to read beyond the public statements to understand that the real incentive (economical and environmental) for this full scale project was to distribute as much wastewater as possible via as many households as possible, instead of discharging it to the already nutrient overloaded Hawkesbury - Nepean river system. The developer of this large residential area (proposed population growth: 250,000) was unable to develop this site without providing the innovative "nutrient and run off dispersal" method. Actual cost for operation of the system are in the area of $ 1.50 / kl, even under moderate to heavy utilisation.

Real Cost of Drinking Water Supply

It is also a well known fact that current pricing of potable water supply at typically ~
$ 0.70 / kilolitre (Sydney Water, 1996) doesn't accurately reflect the actual cost of production and transport to the end user. Actual costs vary, depending on supplied areas, between $ 0.5 /kl and $ 1.7 /kl. Smaller, rural water supply systems are operating often closer to the $ 3 / kl benchmark.

In short the price of water does not reflect adequately the full cost of providing new infrastructure nor upgrading the old and thus subsidises new water even under circumstances where wastewater treatment and reuse should be economic.

Project funding

Due to the nature of the project (quasi demonstration) the overall project viability is determined on the basis of a combination of hard and soft funding or at least some level of government assistance. The macro economics of the project are difficult to assess, mainly due to the uncertainty of the following key factors:

Incremental Benefits

The following incremental benefits will impact on the economics of the Toowoomba Reuse project. However, due to the large number of assumptions they have not been included as benefits in the "worst case" economic scenario.

Capital Deferment of Upgrades of Dams / Pipelines for future Water supply

A water recycling program in the order of 2 Ml / day will not substantially postpone additional water supply infrastructure. Spare yield in the Cressbrook dam system does, however, have a value. The current value of existing spare yield in the Cressbrook system is calculated as follows: (CMPS&F 1996)

Net Cost of Cressbrook Scheme (1988)     $ 46,439,000
Inflation (1988 - 1996)     130.8 %
Capacity of Cressbrook - Historic Sale Yield     12,100 Ml / y
Annual yield associated with recycling          400 Ml / y

Formula:

Yield Value of Recycling = $ 2,000,800

Sithe Power Co-generation Proposal

The possible siting of a major electricity co-generation facility near the Wetalla treatment plant would have significant impact on the project economics. A demand scenario of 2500 Ml/y of recycled water was included in the proposal from Sithe Energy. However, the water quality demand would be of a lower standard as that required for the other industrial re-users, and therefore require different treatment technology. Only a small amount of less than 200 Ml/y would be required for highly purified boiler make up water. Latest information on the project indicates little project priority by the local electricity authorities and therefore indeterminable delays for this project with little chance of actual implementation.

Oakey Pipeline - Army Barracks Water Supply and proposed Power Station

Ian Prince to supply further info. Contact Peter Taylor - TCC

Upgrade of Mt Kynoch Water Treatment Plant

According to information obtained from Toowoomba City Council, the proposed upgrade for the upgrade of Mt Kynoch WTP is planned for July 1997 and will not be affected by the planned re-use scheme. It is therefore difficult to quantify any possible savings due to any reduced amount of Water drawn from the WTP. However, recycled water will replace potable water use in industry, thereby freeing up potable water for other uses. The Mt Kynoch WTP augmentation is estimated at $ 2,300,000 and is planned to increase the capacity from current 55 Ml /d to 68 Ml /d. In relating the actual capacity increase to the cost of the upgrade, an Incremental Value of $ 350,000 is assumed for the impact of the Water Reuse scheme. (CMPS&F 1996)

Community Attitudes to Re-use / Legislative Changes / Health Regulations

Public Acceptance of reclaimed water use for a variety of actual and hypothetical applications has been widely surveyed. Public opinion towards reclaimed water use is determined by:

- cost / price
- degree of human contact
- health
- environment
- treatment
- distribution
- conservation
- community expectations

A high degree of public acceptance is essential for this project to be successful. There is a high level of goodwill towards the concept of Water Reuse at Toowoomba, both from the Council, Industry and the Public.
Future Water Pricing Strategy

Current Toowoomba water charges for 1996 /97 can be simplified to
- a base access charge of $ 235 per annum
- a consumption charge of $ 0.35 / kl up to 324 kl
- a consumption charge of $ 1 /kl for each kilolitre consumed above 324 kl.

The above rates are not expected to undergo any fundamental incremental changes until the next source of water is commissioned after 2030. The augmentation of the Mt Kynoch Water Treatment Plant is not anticipated to impact on charges - "Acting Director of Strategic Planning - TCC"

5.2 Federal and State Funding Support

It has been demonstrated in Table XX and XX that the Stage 1 (Industrial Re-use) of the Toowoomba Project is economically feasible and could therefore attract external investors. However, full assessment of this demonstration project and therefore wide reaching application can only be assured by conducting a comprehensive implementation programme. This programme has to cover all associated areas:

Project and Technology Economics
Re-use Water Quality Assurance
Community Attitude
Health Baseline and Longterm Impact
Water Re-use Applications

These programmes and publication of the results are absolutely essential for an Australia wide (and internationally through Technology Export) awareness of latest Water-Reuse technology. However, the costs for these longterm studies (12 months+)
have often prohibited water re-use projects on a larger economical scale.

Applicable Grants and Incentives

Incentives for the Toowoomba project may take any, or a combination, of the following forms:

- Capital establishment grants (interest free convertible loans);
- Concessional or interest free loans;
- provision of infrastructure that is necessary for the project;
- free or subsidised land
- provision of buildings either by way of a grant or on a concessional basis;
- rebates of State Government taxes, charges or royalties.

Eligibility and requirements for the following grants were identified and it is recommended that the Water Reuse Venture examines the most suitable incorporation scenario in full detail. Current changes to most of these grants and tax concession vehicles will be clarified after the 20 August 1996 budget announcement.

Current practice of International Water Companies with successful local projects (Noosa, Adelaide, Prospect), is to form an incorporated company for each project, often involving the client / distributor as commercially linked partner. The company formation is also required for eligibility of research grants and tax concessions.

It is recommended that the established company then approaches the respective government departments or authorities to enters into high level negotiations to secure funding. The professional advice by taxation consultants experienced in infrastructure and water supply projects is considered essential. The taxation consultant will be aware of council's taxation issues and can advise on R&D eligibility for the project. Experience of EIDN WRV member companies has shown that this is a highly detailed process with typical duration from application to decision of more than 12 months.

QNIP

"New and innovative technology" funds of $ 23.5 Million are available over the next ten years as part of the Queensland Government's Nutrient Removal Infrastructure Programme. Currently under review. Likely to be replaced by similar scheme.

Toowoomba City Council - Access to Funds

Toowoomba City Council has access to debt and equity funds at semi government borrowing rates, currently at ~ 6 % . TCC also has some Capital Expenditure allocation available for this project. This can also set the scenario for "non tender" under the Enterprise Power provision of the Local Government Act. Financing limits apply, limiting TCC input to ~ $ 2 Million. TCC cannot borrow funds for this project from external sources.

Develop Australia Bonds

Federal Government Infrastructure Investment Incentive. Enables investors to raise funds at lower borrowing costs for developments (up to 40 % below market rates); tax exemption, or rebate of 36% on interest paid to investors, reduced risk and cost of infrastructure to governments. Facilities must be infrastructure, operated commercially, operated by a company or a government body acting on a commercial basis, for 25 years after completion and the public must be charged for use. (full details on Assessment criteria in Appendix).

150 % Research and Development Tax incentive

Currently under review, updated in 20 August 1996 Budget Announcement.

Recommended path of action is to employ an experienced Taxation Consultant to cover all issues and to develop a proposal together with EIDN and TCC. Special understanding of TCC taxation issues are a paramount requirement. Recommend Andrea Huxley of Coopers & Lybrand Sydney, who has water background and experience in BOO schemes. Previous contacts through Graham Richardson, WET (EIDN Water Reuse Venture Member).

(Detailed information on C&L in Appendix)

Commonwealth programmes

- Better Cities programme - Currently under review.

Other State Government regional planning and water related programmes.

- Water Infrastructure Task Force

Currently inviting proposals for eligible projects within Queensland. Main focus is on irrigation water supply and metering / charges, with allowance for Water re-use projects not supported by other Government subsidies. Most members from agricultural lobby groups (cotton growers, graziers and farmers).

Private Sector sources including Technology / Construction Companies

Discussion with EIDN members co's:

Initial discussion with Memtec (John Crapper) and Clough Engineering (Mark McNamara) indicate interest by WRV members to have equity participation. However, this depends on further negotiations with Toowoomba City Council, risk identification and project economics. Key issue is the ability of TCC to secure supply and delivery contracts with possible reuse customers.

Private Financiers through BOOT, BOO or other financing packages (including Cleanup Australia 2001 programme)

EIDN to further investigate through internal network. International or domestic water supply / contract operations companies with expertise in water re-use likely to participate if project economics are solid.
5.3 Market Analysis Re-use Customers

The success of a wastewater reclamation program at Toowoomba is predicated on industry's ability and willingness to accept suitably treated effluent from the Wetalla wastewater plant.

To ascertain this information, a survey of industries located in the vicinity of the Wetalla treatment plant was undertaken. The survey was generally limited to industries located south of Wetalla within a 6 km distance.

The survey results are summarised in the following tables.

Total water usage at each industry was obtained from either the industry itself or from the Toowoomba City Council (TCC) water metering department. All "potable" water uses such as process water at food manufacturers, are considered unsuitable. Reclaimed waste water used in cooling towers is currently being investigated and is therefore classified as "possible" option.

The quality of water required for reclamation is assumed as secondary for both a Stage 1 tertiary treatment project (non potable) or Stage 2 tertiary treatment project (potable). Secondary effluent refers to wastewater treated using BNR process at the Wetalla treatment plant with no additional tertiary treatment. Stage 1 tertiary treatment involves microfiltration plus disinfection. Stage 2 tertiary treatment involves microfiltration, disinfection, reverse osmosis plus additional disinfection.

Seasonal Variation

The relationship between Summer and Winter demand was also investigated, as it affects the "peak" design capacity of the proposed plant. Due to higher winter irrigation requirements, actual peak demand is ~ 600 Ml / year (or 1650 kl/d), while summer demand is calculated at ~ 380 ML/year (1040 kl/d).

Diurnal Variation

As irrigation is the highest single use for Stage 1 Re-use, it is important to note that 70 % of the average daily water requirements occur during the night time, with the remaining 30 % being used for commercial purposes during the day. Again this impact had to be considered in the final design capacity of the plant and associated buffer storage. This is particularly important for the observed low influent sewage volumes that occur during the night time hours. Sufficient storage capacity has to be provided to maintain a continuous flow to the tertiary treatment plant.

Identified Potential Customers

A total of 26 potential re-use customers or locations was identified in the survey conducted by Brian Stitt (CMPS&F Brisbane). Most reacted positively to the idea of Water re-use, especially if the water could be supplied at a cheaper rate than the town water. The question of individual additional plumbing requirements was raised by various parties and needs to be addressed in more detail in the next stage of this project. Dixon Tannery has its own, existing secondary effluent re-use system, and is not included in the overall assessment, as it is unlikely to require a higher quality water in the tannery process.

Water Reticulation System

To provide the system with sufficient future expansion capability, it was assumed that the pipesize requirements have to sustain a maximum future flow of > 10 Ml/d, achievable with additional upgrade of transfer pumps in the sufficiently large pumps stations.

Demand - Potable Reuse

No demand scenario could be established for direct potable re-use due to the large number of (currently) variable key parameters. However, as Toowoomba will accept the idea of potable re-use with the proposed community education programmes, demand is expected to increase beyond the proposed minimum economic capacity of 3500 kl/d.

Securing Supply Contracts with Relevant Industries

The critical item in this scenario is the ability of Toowoomba City Council and / or the consortium to secure longterm supply contracts with large re-use customers.

5.4 Capital Cost

The following cost estimates were developed with Memtec and CMPS&F and reflect the typical cost of recent re-use projects based on the described technology. The costs for installation and engineering are initially included, but more accurate assessments can be carried out by involving EIDN Water Re-use Venture engineering companies in the next phase - scoping report.

Detailed engineering drawings and site layouts for the proposed Stages 1 and 2 are included in the Appendix, as well as photographs of similar installations.

Clough Engineering has expressed interest to carry out engineering and installations for this project, and have experience and local presence with an office in Toowoomba.

"Stage 1"
Capital Cost for Stage 1 of the Re-use project has been estimated as follows:

To produce Non Potable Re-use Water:

Tertiary Treatment Plant ( Peak Capacity 2500 kl/d)

Item Description Estimated Cost
Pretreatment Acid / Antiscalant Dosing
CMF Unit Continuous Microfiltration
Misc. Equipment Tanks / Pumps / Controls
Disinfection Contact Tank/Chlorinator
Engineering
Installation
Lumpsum $ 800,000
Building / Foundation Lumpsum $ 200,000
Total $ 1,000,000

Reticulation and Distribution System

Item Description Estimated Cost
Equalisation + Storage 1,000 kL
Pump station 3 Pumps, 2 duty / 1 stdby
Misc. Equipment Valves / Tanks / Metering
Re-use Water Main + Branches 250 mm / 100 mm uPVC
Engineering
Installation
Total $ 1,000,000
"Stage 2"

Capital Cost for Stage 2 of the Re-use Project has been estimated as follows:

To produce Potable Re-use Water (after 3 - 4 years operation of Stage 1) :

Stage 2 is proposed as a completely new plant in addition to Stage 1, which will continue to supply "non potable" customers. It will be constructed on the existing Wetalla STP site and make use of the same infrastructure advantages such as supply of Chlorine dioxide for pre- and post chlorination and direct link to the existing SCADA (Supervisory Control and Data Acquisition) telemetry.

Tertiary Treatment Plant Cost (Peak Capacity 3500 kl/d)

Item Description Estimated Cost
Equalisation Tank 450 kL, diurnal buffering
Pretreatment Acid / Antiscalant Dosing
CMF Unit Continuous Microfiltration
Reverse Osmosis Plant with Redundancy
Misc. Equipment Tanks / Pumps / Controls
1. Stage Disinfection Contact Tank/Chlorinator
2. Stage Disinfection Contact Tank / Ozonator
Engineering
Installation
Lumpsum $ 3,650,000
Building / Foundation Lumpsum $ 250,000
Total $ 3,900,000

Reticulation and Storage System Cost

Item Description Estimated Cost
Equalisation + Storage Dam 30 day retention
Supply Pipeline to Dam / WTP 4 km / 250 mm
Pump station 3 Pumps, 2 duty / 1 stdby
Misc. Equipment Valves / Tanks / Metering
Reuse Water Discharge Station at Mt Kynoch WTP
Engineering
Installation
Total $ 2,825,000
5.5 Operation and Maintenance Cost

(Complete Spreadsheet in Appendix)

Operation and Maintenance Cost for Stage 1and Stage 2 of the proposed plant was developed from capital and operations cost information supplied by Memtec and CMPS&F Brisbane.

Stage 1

Continuous Microfiltration (CMF) & Disinfection System

Assumptions:
Non Potable Production (max)2,500 KL / day
Plant Recovery 87 %
Secondary Effluent price 0 cents / KL
Secondary Feed   2,874 KL / day
Power Cost   12 cents / KWh
Power Consumption 0.195 KWh / KL
Plant Utilisation 51.5 %
Annual Volume   470 ML
Prime Cost of Membranes 156 $ K
Membrane Life 5 years
Equipment Life 10 Years
Infrastructure Life 25 years

Operating Cost
Power Cost 2.34 cents / KL
Other direct (Chemicals, etc.) 1.39 cents / KL

Fixed:
Membranes 31.2 $ K / year
Operator & Maintenace 16.5 $ K / year
Total per year 65.2 $ K / year

Total Operating Cost 13.9 cents / KL

Reticulation System

It is anticipated that TCC builds, owns and maintains the reticulation system as part of ongoing Council operations and maintenance activities. The operation and maintenance requirements for the reticulation system are considered small, consisting mainly of 250 / 100 mm uPVC piping, flow meters and one small, fully automated pump station.
Stage 2 Proposed Potable Re-use, approx. 4 years after Stage 1

Continuous Microfiltration (CMF), Reverse Osmosis & Disinfection System.

Assumptions:
Non Potable Production (max)3,500 KL/day
Plant Recovery 70.4 %
Secondary Effluent price 0 cents / KL
Secondary Feed   4,972 KL / day
Power Cost   12 cents / KWh
Power Consumption (CMF) 0.24 KWh / KL
Power Consumption (RO) 0.5824 KWh / KL
Chemicals and Cartridges 9.2 cents /KL
Plant Utilisation 85 %
Annual Volume   1277 ML
Prime Cost of Membranes 446.5 $ K
Membrane Life 5 years
Equipment Life 10 Years
Infrastructure Life 25 years

Operating Cost
Power Cost 9.9 cents / KL
Other direct (Chemicals, etc.) 9.2 cents / KL

Fixed:
Membranes 8.2 cents / KL
Operator & Maintenace 16.5 cents / KL
Total per year 341 $ K / year

Total Operating Cost 31.4 cents / KL

Reticulation System

It is anticipated that TCC builds, owns and maintains the transfer pipeline, buffer dam and blending system as part of ongoing Council operations and maintenance activities. Transfer pipeline length is assumed 6 km, to connect Wetalla re-use plant to Mt Kynoch Water Treatment Plant via the storage / buffer dam. The dam capacity is proposed as minimum 30 days, to meet current US guidelines as applied for the San Diego water re-use project.

The operation and maintenance requirements for the transfer system are considerably more complex than Stage 1, consisting of a double disinfection system, connecting pipeline (250 mm), 2 transfer pump stations, level monitoring and blending facilities / water quality monitoring system at Mt Kynoch WTP.

Assumptions

Demand will be steady and increase from the identified 470 Ml / year to a maximum volume of 900 Ml / year for Stage 1 of the project.

Council Charges

There are no charges for discharging RO brine and CMF backwash to inlet works of the STP. Location of the new re-use plant is to be within the boundary of Wetalla STP. Operations supervision (telemetry linked to plant SCADA) and maintenance as per current arrangements at STP.

Operating Cost: Power:   $ 0.12 / kWh
   Secondary Effluent: no charge
   Chlorine dioxide: STP @ supply cost

5.6 Treated Water Cost

The cost of treated water is the key driver behind any water re-use application. In order to generate interest from potential users, a considerable saving must be applicable for the non-potable water and potable water customer. Current price for potable water in Toowoomba is fixed at $ 1.00 / kilolitre. A minimum price incentive of 20% saving to the customer has been assumed for the financial calculation, setting the maximum chargeable cost of non potable water at $ 0.80 / kilolitre. This reflects current practice at other large, commercially operated water reuse projects in the U.S..

Currently proposed and operating water reuse projects in Australia (eg Rouse Hill) are based on a different, "incentive" pricing structure, which does not incorporate the real cost of treatment and distribution. Applied rates are in the order of $ 0.30 per kilolitre. The key incentive for the eg. Rouse Hill re-use plant is the wide spatial dispersion of a large volume of wastewater generated by new housing developments, which would otherwise be discharged into the environmentally sensitive and already overloaded South Creek / Hawkesbury Nepean catchment .

To operate this plant in a commercial fashion and to attract potential equity partners to this project, a commercial return of minimum 10 % (non potable) and 5 % (potable) has been assumed. The cost of finance for the project is considerable, and is reflecting the minimum economic scale of the demonstration project. Actual breakdown of treated water cost is as follows:

Scenario 1 - Plant and Distribution financed and operated by Consortium:

Stage 1 (non potable re-use) Stage 2 (potable re-use)

O & M Cost: 14 cents / kl O & M Cost: 32 cents / kl
Finance Cost: 46 cents / kl Finance Cost: 73 cents / kl

Total Cost: 60 cents / kl Total Cost: 105 cents / kl

Scenario 2 - Plant financed and operated by Consortium,
Distribution financed and operated by TCC:

Stage 1 (non potable re-use) Stage 2 (potable re-use)

O & M Cost: 14 cents / kl O & M Cost: 32 cents / kl
Finance Cost: 29 cents / kl Finance Cost: 51 cents / kl

Total Cost: 43 cents / kl Total Cost: 83 cents / kl
Please note that the financial assessment scenario does not take into account further incremental savings such as infrastructure cost deferrals or environmental savings. It can therefore be seen as a "worst case scenario". Short summary as follows:

Stage 1 will produce non potable quality water to supply the peak demand of 2,500 Kilolitre / day to the identified non potable re-use customers, for irrigation purposes and industrial usage via a new, dedicated reticulation and metering system. Estimated capital cost for Stage 1 is $ 1,000,000 for plant and equipment and $ 1,000,000 for a dedicated reticulation system.

Stage 1 of the project is economically viable at a re-used water production cost of $ 0.60 / kilolitre.

Stage 2 will produce potable quality water from a modular, independent plant utilising "Best Available Technology" and be implemented after the following key issues are resolved (assumed time frame 3 - 4 years):

Health and Environmental (international and domestic) regulations for potable reuse;
Community & ratepayers are in support;
Long term health aspects and water quality assurance are thoroughly investigated;
Project economics (including costs of ongoing monitoring programs) are satisfactory;

Stage 2 of the project is economically viable at a potable water production cost of $ 0.83 / kilolitre, if TCC can fund the reticulation system from existing Capital Expenditure.
6. Implementation Scenarios

..to be further developed with EIDN Water Re-use Venture members after review of project information..