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Ministerial Statement Reform of the Power and Water Authority Six months on



Ministerial Statement Reform of the Power and Water Authority Six months on

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Tabled paper 1301


Tabled Papers for 8th Assembly 1997 - 2001; Tabled Papers; ParliamentNT




Tabled by Barry Coulter


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5 PA Consulting will be asked to implement change in PAWAs inventory management procedures as a first step. The Authoritys inventory stock amounts to almost $20 million and as such represents a significant capital outlay and opportunity cost. The consultant has started work on this project a few days ago. The task will include an examination of outsourcing the stores function. A project to review current fleet management arrangements with NT Fleet will also be undertaken shortly with a view to establishing options for rationalisation of vehicle resourcing and fleet savings. Alternative fleet management arrangements will be explored in this context. Mr Speaker, I now address revenue improvement. The brief to the Authority was not ju s t to make cuts, but also to look to all opportunities for financial improvement. One opportunity that has been identified is interconnection of the Palm Valley to Alice Springs pipeline and the Palm Valley to Darwin gas pipeline. This project will provide the Alice Springs region with an alternative source of gas supply in the event of problems at the Palm Valley field, and in longer term ensure access to gas from other sources via the Palm Valley to Darwin gas pipeline. The interconnection is expected to be in operation by August the 1st this year. By taking advantage of the different terms and conditions of the contracts for gas supply from each field, indicative nominal dollar savings on wellhead gas price are estimated to be of the order of $22.45 million over 10 years. This results in a saving of $790,000 in 1999/2000 rising to $3.3 million in 2003/04. 5