Image: Jamie (left) and Simon Bridges look in Auckland’s 16.2- km central interceptor wastewater tunnel.
LG magazine talks with the new CEO of our country’s largest water entity, Watercare.
Jamie Sinclair took the reins at Watercare back in June after being recruited from the council’s own ranks – where he was its deputy chief.
New financial separation from the council this year means Watercare is now assessed for credit in its own name and can borrow more than it could otherwise.
“This provides more financial certainty, enabling us to fund our ambitious infrastructure programme, while keeping our price path relatively smooth,” says Jamie.
Economic regulation provides a level of oversight and increased transparency about activities, investments and performance, he says, while its relationship with Water Services Authority hasn’t changed with financial separation.
“Financial separation and regulation certainly does come with challenges,” he concedes.
“We’re now responsible for raising our own capital, and now that we’re borrowing in our own name and have the Commerce Commission as our interim economic regulator, we will have more scrutiny than ever.”
A Watercare Charter now outlines revenue levels, service commitments and reporting obligations over the next three years, he adds.
“It also sets out key areas for review and improvement. These include asset management and capital delivery, our approach to pricing including our growth charges, and continuing our focus on cost efficiency initiatives to drive greater value and productivity.
Q: Watercare shares stormwater pipe systems with the Auckland Council’s Healthy Waters. How would you describe your relationship with this department. And how does it work now Watercare is out of the council fold?
“We have a great working relationship with council’s Healthy Waters department. There is often some crossover with what we do, particularly when it comes to finding places where stormwater is infiltrating our wastewater network and contributing to overflows, and our teams work closely together in these situations.
“While we are now financially independent, we are still 100 per cent owned by Auckland Council and are very much part of the council group.”
Q: You have said, “Relationships are important – within the industry, with mana whenua, our partners and financiers.” ‘Mana whenua’ means ‘land interest’ and can be applied to anybody, including Auckland’s ratepayers. Did you mean ‘local Maori iwi’?
“I was referring to the 19 iwi [Crown-recognised Maori tribes] with a connection to Tamaki Makaurau [Auckland], as well as iwi along the Waikato River. Our operations are intrinsically linked to the environment, so we recognise the role played by [their] mana whenua, as kaitiaki [guardians]of the natural environment. It’s important to have a strong relationship built on mutual respect, openness and a willingness to advance our shared ambition for Auckland and the environment.
Q: You said you have concerns around “skills in the sector” with the sheer volume of work ahead. What is the solution, and who should specifically be responsible for that solution – the industry or the government?
“There is a large capital wave coming not only in New Zealand but also Australia. Competition for talent is real and will intensify. There is a responsibility for the sector to promote opportunities and the career benefits of working in the sector.
“It’s a great sector to work in! We also need to be open and confident with the pipeline of projects, giving employers and contractors confidence to invest in staff, equipment and skills. In my view this should be led by the sector but enabled by government settings. For example: infrastructure investment priorities, funding options and immigration settings.
Q: What did you mean when you said, “We will also partner with overseas experts and get talent as needed”. How do we do that?
“As an example, for our mammoth wastewater tunnel, the Central Interceptor, we ran an international procurement process. Ultimately a joint venture between Abergeldie and the Italian company Ghella – who has extensive international tunnelling experience – was formed to deliver this programme for us.
“We have several large programmes to be delivered over the coming decade that are similar in scale or even larger than the Central Interceptor. While we will always look to local suppliers where we can, we will extend our search to include overseas partners with specialist skills we need to deliver the outcomes for Auckland.”
Q: You have said: “The water industry is data heavy – we monitor all sorts of things and have all sorts of information to hand. How can we turn this into a useful resource for customers and for network maintenance and upgrades?” Any idea how this is achieved?
“One example is our rollout of 5000 smart sensors in the wastewater network which we’re working on now. Data from the sensors is analysed by artificial intelligence software to give us better insight into the performance of our pump stations and pipe network.
“And we can combine that data with weather, tide and groundwater data to get a much better idea of how our network operates under different conditions.
“The sensors detect flow levels in our wastewater pipes and have already prevented at least one overflow by alerting us to a blockage that was forming in one of our Otara pipes. Fixing blockages before they become overflows improves customer outcomes and means we can be more targeted and efficient in our maintenance activities.
“Another priority is the continued rollout of smart water meters, which gives both us and our customers better insights into water usage patterns, and can encourage water efficiency.”
Q: You have said: “We need to identify Auckland’s next source of water.” What is the problem exactly in terms of scale and time? Why can’t we take more allocation from the Waikato River? Are there more reservoir catchment plans for the future?
“While we have resource consent to abstract up to 300 million litres a day from the Waikato River, we have committed to reducing our reliance on the river over time.
“Like other jurisdictions, Auckland is going to need major investment to secure another source of drinking water within the next 20 years to meet the needs of our growing population.
“We are asked regularly about the option of another water supply dam for Auckland. While this is in the mix of options, given Auckland’s geography and the large potential volume needed, it will be challenging to find a suitable location.
“Two other future water source options we’re looking at closely are desalination and purified recycled water. Both have significant technical and regulatory challenges which need to be considered, alongside the benefits and costs.
“Both would require education and the management of environmental effects. In the next couple of years, we will need to have a very clear direction on how these options feature in our future water source strategy.
“As well as considering our future water sources, we’re continuing our efforts to improve water literacy and reduce demand.”