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Water infrastructure is best suited to owners with:

  • Very long-term investment horizons
  • A low cost of capital to match the regulated WACC¹
  • The ability to invest ongoing capital as required
  • The ability to aggregate infrastructure within regions to achieve economies of scale
  • A focus on customers and high service standards
  • An ability to manage in a heavily regulated industry and hold regulatory licenses as required
  • A collaborative partnering culture and approach
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As well as an injection of new capital, Water Utilities Australia can provide operational and management expertise into councils, farming groups and their communities by investing in their water and wastewater assets across Australia. The Water Utilities Australia team have found that many councils value such an injection into the creation or upgrading of community facilities and are now contemplating recycling capital tied up in their water businesses for other higher priority community needs.

Water Utilities Australia’s investment philosophy is to grow and develop investments to ensure that they can deliver appropriate outcomes for customers. This includes injecting any expertise that is needed, as well as the new capital. Water Utilities Australia has infrastructure return expectations of long term, steady and predictable returns, which is quite different from the return expectations of contractors and private equity investors.

¹Regulated WACC is set by economic regulators (including IPART and ESCOSA) in each state, which is typically 4% – 5% post-tax real for very large utilities.

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