Risk Mitigation Strategies for Aquasure, Victorian Desalination Plant

Running head: PROJECT FINANCE AND PROCUREMENT
CASE STUDY: AQUASURE, PROJECT FINANCE VICTORIAN
DESALINATION PLANT
Name of the Student
Name of the University
Author Note

1PROJECT FINANCE AND PROCUREMENT
Table of Contents
Introduction..............................................................................................................................................2
Risk mitigation strategies for the case study...........................................................................................2
Conclusion...............................................................................................................................................6
References................................................................................................................................................7

2PROJECT FINANCE AND PROCUREMENT
Introduction
The aim of the report is to discuss about the ways risks can be mitigated in the case
study of study AQUASURE, Project Finance Victorian Desalination Plant. The report will
discuss about the methods that will be helpful for mitigation purpose based on their
suitability. Victoria State of Australia is facing drought from last few decades. This
conditions resulted in impacting the water reserves stored for the country. In order to
overcome this situation in the year of 2007 the state government has announced a strategy
named “Our Water Our Future” with the aim of developing a proper seawater for performing
reverse osmosis desalination plant for expand Melbourne’s water supply (Kurakaew,
Kokkaew and Suksuwan 2016). It becomes important to have the capacity to supply around
one third of the capitals water needs that is independent of rainfall sources. In the year 2009,
AquaSure Pty ltd was given the opportunity to handle and maintain the Victorian
Desalination Project for a period of 30 years and 1 month. Thus it is essential to overcome the
situation and implement a proper measure.
Risk mitigation strategies for the case study
Earlier in the Victoria state water supply was completely dependent on rainfall.
However from the last 12 years the state is experiencing prolonged drought leading to
Melbourne’s water storage low. In addition to this it became very difficult to manage the
needs of the increasing population. As a result it became important to construct the world’s
largest sweater reverse with the help of reverse osmosis desalination plant under the
supervision of public private partnership for providing sufficient water to the city. The aim of
implementing public private partnership is to facilitate the provision of facilities and services
in the area of infrastructure. The role of private operator is to design, finance and build
construction and maintaining them after getting developed. The world’s largest public private