2018 CCF Victorian Infrastructure Outlook Report 1 | Page 27

Electricity, Water and Sewerage Infrastructure
Historically, electricity, water and sewerage infrastructure
accounted for around 30 per cent of the total engineering
construction for Victoria. The water sector peaked in
2010/11 at $2.0 billion during the construction phase of
the Wonthaggi Desalination Plant. However, following
the completion of the desalination plant, engineering
construction in the water storage and supply sector
declined sharply, falling to $264 million by 2015/16 – an
annual average decline of 33 per cent. Activity within
water storage and supply is expected to be around $200
million, below the average annual activity prior to the
construction of the desalination plant.
Sewerage engineering construction bounced up by 13
per cent in 2015/16, after posting a decline of a similar
per centage magnitude in the previous year. Work in
sewerage is tied into the work allocated within the
respective Water Authorities, again dominated by
Melbourne Water and the Yarra Valley Water Authorities.
The activity is partially dependent on the population
growth, the urban spread and on the increase in
residential building activity.
Over the six years to 2012/13, electricity construction
increased strongly driven by investment in the
transmission and distribution networks. Since then,
however, the requirements for investment declined as
demand for electricity slowed. Electricity construction
is expected to rise over the three years to 2018/19,
underpinned by a number of renewable energy projects.
A strong increase in the number of projects starting in
Victoria over the two years to 2018/19 is anticipated,
underpinned by both the national and state Renewable
Energy Target’s (RET’s).
Figure 2.5: Victorian Engineering Construction, $Billion, 2014/15 Prices
Electricity, Water and Sewerage Sectors
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