OFFICE OF NORTHERN WATER DELIVERY

91 King William St, Adelaide, SA 5000

www.energymining.sa.gov.au

Contact phone number: 08 8463 3000

Contact email: DEM.OCE@sa.gov.au

ISSN: 2652-7553

Date presented to Minister: 30 September 2025

To:
Honourable Tom Koutsantonis MP
Minister for Energy and Mining

This annual report will be presented to Parliament to meet the statutory reporting requirements of the Public Sector Act 2009 (Part 3, s 12) and the Public Sector Regulations 2010 (Part 2, reg 7), the Public Finance and Audit Act 1987 and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.

This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.

Submitted on behalf of the DEPARTMENT FOR ENERGY AND MINING by:

Paul Martyn PSM
Chief Executive
Department for Energy and Mining

Date 23 September 2025

From the Chief Executive

The Northern Water Project (NWP) has made substantial progress and undergone key transitions over the past year, marking a pivotal phase in our journey through the pre-delivery project phase. Our efforts have focused on building a strong foundation to support the long-term delivery of this vital initiative.

NWP is nationally significant, and a critical enabler to position the Upper Spencer Gulf as a globally significant region in the clean energy transition, through unlocking strategic and critical minerals, ensuring sovereign capability, and improving environmental outcomes.

A major milestone was the development of a preferred Design, Build, Operate, and Maintain (DBOM) delivery model, selected for its proven success in similar largescale infrastructure projects and its focus on whole-of-life cost efficiency. This was supported by a comprehensive market sounding process and a successful Expression of Interest (EOI) phase, which attracted strong interest from industry and helped shape the next stage of procurement.

During the year, procurement responsibilities for the project were formally transitioned to the Department for Infrastructure and Transport (DIT), which has since progressed the procurement process. This change ensures a clear and coordinated approach to project delivery, while maintaining momentum and market confidence.

The Office of Northern Water Delivery (ONWD) continued to work closely with key government stakeholders to identify and progress a range of key decisions and ensure alignment with broader infrastructure, economic, and climate objectives. Engagement with the Net Zero Economy Authority, Infrastructure Australia, Infrastructure SA, and the Department of Treasury and Finance has been instrumental in progressing the project through assurance and investment planning processes.

On 7 May 2025, the Office for Northern Water Delivery was integrated into the Department for Energy and Mining (DEM), with responsibility for delivery of the project shared between DIT and DEM. DIT now leads procurement and delivery, while DEM is responsible for the commercial aspects of the project, including the updated business case, commercial model development, offtake negotiations and ensuring overall project viability.

Together, these efforts reflect a strong foundation for delivering a transformative project that will secure South Australia's water future and support sustainable economic growth.

Paul Martyn
Chief Executive
Department for Energy and Mining

Contents

Overview: about the agency
Our strategic focus
Organisational structure and function
Changes to the agency
Our Minister
Our Executive Team
Legislation administered by the agency
Other related agencies
The agency’s performance
Performance at a glance
Agency specific objectives and performance
Corporate performance summary
Project Governance
Employment opportunity programs
Agency performance management and development systems
Work health, safety and return to work programs
Executive employment in the agency
Financial performance
Financial performance at a glance
Consultants disclosure
Contractors disclosure
Risk management
Fraud detected in the agency
Strategies implemented to control and prevent fraud
Public interest disclosure
Reporting required under any other act or regulation
Public complaints
Number of public complaints reported
Additional Metrics
Service Improvements
Compliance Statement
Appendix: Audited financial statements 2024-25

Overview: about the agency

Our strategic focus

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Organisational structure and function

The functions of ONWD were integrated into Department of Energy and Mining (DEM) on May 8th 2025. ONWD ceased activities on May 7th 2025 and the organisational structure was absorbed into DEM.

Changes to the agency

During 2024-25 there were the following changes to the agency's structure and objectives as a result of internal reviews or machinery of government changes:

Effective 1 July 2024, the ONWD was formed and was proclaimed as an attached office to DIT, with the transfer of all assets and liabilities from Infrastructure SA (ISA).

In September 2024, the Minister for Infrastructure and Transport determined that the procurement and pre-delivery functions of the project would be delivered through DIT, with the commercial negotiations, and funding and finance remaining with ONWD.

In November 2024, ONWD was declared an attached office to DEM.

ONWD was formally dissolved on 7 May 2025 with residual functions absorbed into DEM.

Our Minister

Hon Tom Koutsantonis MP has been the Member of Parliament for the seat of West Torrens since 1997 and is currently Minister for Infrastructure and Transport, Minister for Energy and Mining and the Leader of Government Business in the House of Assembly.

Tom previously held ministerial appointments for Transport and Infrastructure between 2013 and 2014 and Mineral Resources and Energy between 2011 and 2018. He was also responsible for these portfolios in the Shadow Ministry between 2018 and 2022.

Our Executive team

The Executive Leadership team comprised:

• Paul Martyn PSM - Chief Executive, Department for Energy and Mining
• Mike Morgan - Project Director

Legislation administered by the agency

ONWD does not administer any legislation.

Other related agencies (within the Minister's area/s of responsibility)

ONWD works with DEM and DIT in the development and procurement of the NWP.

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The agency's performance

Performance at a glance

The Office of Northern Water Delivery achieved significant progress towards its objectives and strategic goals during the 2024-25 financial year until its integration into DEM on 7 May 2025. Highlights included the following:

• Continued to progress towards an FID, following completion of the Northern Water Business Case and addendum in 2023/24.
• Developed the preferred procurement approach through extensive market sounding process. A Design, Build, Operate, and Maintain (DBOM) model was proposed, reflecting its success in other major Australian desalination projects by prioritising whole-of-life cost efficiency.
• Undertook an Expression of Interest (EOI) process to engage with and procure contractors who may design, build, operate and maintain the plant and pipeline. The EOI process is a key component in developing a future Request for Proposal to further understand project design and costings. Following changes to the responsibilities for procurement of the NWP, DIT progressed the procurement process for the Project on 12 November 2024 through an Updated Request for EOI. Submissions for the Updated Request for EOI closed on 23 January 2025. DIT evaluated the EOI submissions and shortlisted the two most qualified proponents.
• Continued engagement with key arms of government on funding opportunities to support Project delivery. This included engagement with the Commonwealth government, through Infrastructure Australia and the Net Zero Economy Agency on potential funding streams and support of the project, aligned with the asks of government identified in the Business Case.
• Continued to engage with relevant assurance bodies, including ISA and Infrastructure Australia, to enable informed and integrated decisions on infrastructure planning, investment, delivery and optimisation. Engaging with other government agencies is also a key component of project and commercial due diligence, to ensure the NWP meets the relevant agencies criteria for potential involvement and funding.
• Continued work on developing the ideal commercial operating model of the project to deliver an equitable and affordable price of water and to deliver best value to South Australian taxpayers, industry and the environment.
• Continued to engage with key project stakeholders, including negotiating land access for the plant and pipeline, progressing cultural heritage surveys and native title negotiations, and ongoing engagement with the community to ensure risks and opportunities are properly understood and addressed.
• Continued extensive environmental and technical studies to support relevant project approvals under state and federal legislation, alongside other critical activities required to provide the government with the clearest understanding of the risks and opportunities associated with the project.

Agency specific objectives and performance

The NWP is a key element of the South Australian State Prosperity Project. The NWP is a proposal to build a large-scale desalination plant and pipeline network to provide a new, sustainable water source for industrial use across the Spencer Gulf, Eyre Peninsula and the far-north.

The Project is currently in the pre-FID phase and performance is measured against the Project schedule and key milestones.

Corporate performance summary

Corporate services for NWP were provided by DEM through a service level agreement.

Project Governance

In 2024-25, the NWP Governance Committee transitioned to the SA Copper Taskforce. The SA Copper Taskforce acted as the executive level assurance, governance and oversight body, to review project progress for delivery of the NWP.

The SA Copper Taskforce is responsible for:

• Acting as executive-level assurance, governance and oversight body for the development, delivery and ownership of the NWP, including by endorsing key project decisions, to ensure project delivery in line with whole-of-government State interests.
• Leading engagement with the Commonwealth and other third parties to secure funding and financing for the NWP.
• Serving as the primary advisory body for the delivery of the NWP, with responsibilities for review, governance, assurance and project leadership.
• Advising on whole-of-government initiatives and outcomes arising from or related to major copper mining proposals including any necessary supporting regulatory reform.
• Providing reports to the Hydrogen and Upper Spencer Gulf Cabinet Taskforce (HUSGCT) and Cabinet.
• Reporting to the Minister for Energy and Mining and acting in accordance with Cabinet directions.
• In accordance with Cabinet directions, providing leadership and governance of the commercialisation of the NWP, including future operating models

The SA Copper Taskforce met monthly, or as determined by the Chairperson, and comprised of Chief Executives and senior executives from the Department of the Premier and Cabinet, DTF, Department of State Development, Department for Environment and Water and DEM.

Employment opportunity programs

ONWD had no employment opportunity programs for the 2024-25 financial year.

Agency performance management and development systems

ONWD was an attached office to DIT and then DEM, within the 2024-25 financial year and utilised the performance management and professional development programs of the respective agencies.

Work health, safety and return to work programs

ONWD was an attached office to DIT and then DEM, within the 2024-25 financial year and utilised the work health, safety and return to work programs of the respective agencies.

*number of claimants assessed during the reporting period as having a whole person impairment meeting the relevant threshold under the Return to Work Act 2014 (Part 2 Division 5)

**before third party recovery

Data for previous years is available at: Not applicable.

Executive employment in the agency

ONWD was abolished on 7 May 2025. The functions of the agency are carried out through DEM and DIT.

Numbers above reflect total number of paid executive positions as ONWD at 7 May 2025.

Data for previous years is available at: Not applicable.

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

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Financial performance

Financial performance at a glance

The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2024-25 are attached to this report.

The total net loss reported for ONWD for the period 1 July 2024 to 7 May 2025 was $0.5 million which was predominantly due to executive termination payments, following the changes to project delivery and organisational structure.

Assets and liabilities for ONWD were transferred to DEM immediately preceding the abolition of ONWD at 7 May 2025. During the period 1 July 2024 to 7 May 2025 ONWD reported capitalised expenditure of $34.9 million for the project.

Consultants disclosure

Consultants that have been directly engaged by DIT, which manages the predelivery and procurement phase of the project, are disclosed in DIT's annual report.

Only minor consultancy costs of $0.1 million were directly incurred by ONWD and these have been reflected as part of the capital cost associated with the business case development for the project.

Data for previous years is available at: Not applicable.

Contractors disclosure

Contractors that have been directly engaged by DIT, which manages the pre-delivery and procurement phase of the project, are disclosed in DIT's annual report.

In 2024-25 ONWD did not directly engage any contractors.

Data for previous years is available at: Not applicable.

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

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Risk management

Fraud detected in the agency

ONWD had no instances of fraud detected in the agency during the 2024-25 financial year.

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Strategies implemented to control and prevent fraud

During 2024-25, the Audit and Risk Committee (ARC) within DEM provided independent assurance over risk management, internal controls, compliance, and financial reporting. The Committee met five times under its Terms of Reference and Calendar of Focus.

The ARC oversaw implementation of the risk framework and endorsed the revised Risk Appetite Statement to reflect the machinery of government changes that occurred in May 2025. This also include review of the department's strategic risks, major project risks and cyber/technology risks to ensure they are effectively mitigated and/or aligned with the Strategic Plan objectives. The ARC also commissioned major project assurance mapping to identify potential coverage gaps across major programs.

The ARC reviewed the 2024-25 financial statements process, sector accounting updates, and had a private session with the Auditor-General's team.

The internal audit function performed several reviews over the DEM system and control environments. In addition, DEM has a Fraud and Corruption Policy which addresses the prevention, detection and response to fraud, and a supporting procedure for reporting suspected fraud. As outlined in Treasurer's Instruction 2, the documents are reviewed annually (last published in January 2024) and correspond with the South Australian Public Sector Fraud and Corruption Control Policy.

Data for previous years is available at: Not applicable.

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
0

Data for previous years is available at: Not applicable.

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

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Reporting required under any other act or regulation

Public complaints

Number of public complaints reported

Additional Metrics

Data for previous years is available at: Not applicable.

Service Improvements

There were no formal complaints received by ONWD and subsequently no service improvements.

Compliance Statement

Appendix: Audited financial statements 2024-25

Audited financial statements 2024-25 (PDF, 480.9 KB)

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