The Infrastructure Group controls the building, maintenance and servicing of G-MW;s infrastructure assets, which have a replacement value of over $5 billion. A structured approach to asset management is used to ensure consistency of service to customers in a cost-efficient manner. The Group manages all aspects of dams, including operations and maintenance, dam safety and 'land and on-water' issues. The Group is also responsible for environmental compliance, water quality monitoring, and aquatic plant and pest management.

Dams Management

G-MW manages 16 large dams across northern Victoria, with the capacity to hold around 9 million ML, or some 70% of Victoria's stored water resources.

This area of G-MW's business is modernising all aspects of its function to ensure it is managing the long term safety of the dam asset portfolio efficiently and effectively. The past fifteen years has seen a focus on upgrading dam infrastructure towards contemporary standards to reduce large scale portfolio risk. Now that most dams have at least undergone a first stage of risk reduction works there is an opportunity for the Dams business to refocus existing resources on upgrading and modernising its day-to-day dams management practices to ensure continued delivery of appropriate high value dams management.

Dams Operations and Maintenance

The Dams Operations and Maintenance (O&M) section is responsible for the harvesting, storing and releasing of water from our dams. They liaise with bulk water customers (mainly urban water corporations, power generation companies and Catchment Management Authorities) on day-to-day operational issues and work closely with local government and emergency management agencies in flood management.

An important aspect of dam management is looking after the day-to-day operations and maintenance of the embankment, spillway and outlet infrastructure. The Dams O&M section routinely monitors dam operations and maintenance in accordance with industry standards as set out in its O&M manuals.

During 2010/11 a significant milestone was reached when a revision of the O&M manuals for each G-MW dam was completed. A project to upgrade the O&M manuals to a contemporary standard began in 2009, the first time a complete revision has taken place since the 1960s. These manuals are vital documents for the efficient and safe operations of the dams infrastructure. The O&M manual upgrade project will continue over the following few years to compile detailed asset information in support of the new corporate computerised asset management system.

Dam Safety

G-MW’s dam safety risk management process is widely regarded as industry leading. A sophisticated process is applied to assess the portfolio of dams against contemporary dam safety standards and to prioritise and determine the scope of major dam upgrades. This process ensures G-MW dams meet community expectations and comply with the Australian National Committee on Large Dams (ANCOLD) guidelines and Victorian Dam Safety Regulations. The Dams business sustains a comprehensive program of dam safety management including routine monitoring of dam performance, annual and five-yearly safety inspections and maintenance of contemporary knowledge through training and practicing of emergency procedures.

The Dams business also manages the portfolio of G-MW's dam safety risks. Over the past ten years, under the Dam Improvement Program the Corporation has progressively undertaken a strategic program of capital works valued at $100 million to reduce dam safety risks. While the majority of current risk reduction works have been delivered, the following projects were undertaken this year.

- Buffalo and Newlyn Dam Safety Upgrades

In accordance with ANCOLD guidelines, assessment of potential downstream impacts of dam failures for both Buffalo and Newlyn dams has progressed. New generation techniques have been developed and made available to the dams industry which provides a higher level of sophistication and robustness in the assessment of some of the key elements of dam safety risks. G-MW has decided to adopt some of these techniques including using higher resolution digital terrain data to achieve a higher level of confidence in the assessment of dam safety risk at each dam. These assessments will determine whether remedial works are required.

- Dartmouth Dam Safety Upgrade

G-MW manages Dartmouth Dam on behalf of the MDBA. To meet ANCOLD guidelines, Dartmouth Dam requires an upgrade of spillway capacity through raising the embankment and then modifying the existing spillway crest. Preliminary designs for these two stages of work have been prepared and costed. MDBA endorsement for the stages was received in June 2010 and funding secured to proceed with detailed design in December 2010. Consultants have been engaged and detailed design commenced, with completion scheduled for December 2011. A construction methodology and risk management plan are being developed, which include consideration of timelines and management of risks associated with lake water levels.

Land and On-Water Management

Land and on-water management is about managing the community, recreational and environmental aspects of dams and surrounding lands. The aim is to protect and enhance water quality, improve the ecological health of the waterway and provide safe sustainable public access.

G-MW storages are easily accessible by the general public, providing highly valued recreational opportunities for tourists and local communities. G-MW is developing individual 'land and on-water management plans' for its 16 water storages. These Plans will guide how G-MW and other agencies manage activities, facilities and development on and around water storages. The Plans focus on cultural, environmental and water quality management issues at water storages but are not designed to make recommendations on storage operations – such as water levels and releases.

This year, draft Plans were developed for Waranga Basin and the Mid-Murray Storages including Lake Boga. The Lake Nillahcootie Plan is currently being finalised following more than 18 months of consultation, feedback and discussions. The Plan is due to be launched at a community celebration in late 2011.

Consultants were engaged to start developing Plans for other dams. Community consultation will commence in late 2011 on Plans for Lake Eildon and Goulburn Weir. 2012 will see plans commenced for Lake Eppalock and Cairn Curran. Land and On- Water Management Plans have already been completed for Lake Hume (in 2008) and Lake Mulwala (2004, updated 2008). While plans have been completed, they are still being implemented by G-MW in conjunction with community and stakeholder committees. A key action of the Hume Plan was to develop a camping and caravan strategy, and this was completed during the year. For Lake Mulwala, a new website was developed to provide information on recreation facilities, conditions and water levels at this popular destination.

New Asset Management System

G-MW commissioned its new Asset Management System that provides operations and maintenance staff real time information to reduce asset down time or impact to customers. The $2 million system is now operational and is being rolled out across G-MW. The system will provide more timely advice on asset availability and will also allow integration into other G-MW systems. This system provides significant opportunities for G-MW to continue to drive efficiencies in program delivery through mobile computing technologies and integration with the Geospatial Information System. This functionality allows timely and accurate capture of asset date, remote issue of maintenance work orders and tracking of field based resources.

Maintenance - Continuous Improvement Program

To better manage the increasing portfolio of modernised assets G-MW has implemented a continuous improvement program.

Work area management teams have focused on improving the intern al work areas such as the electrical stores area and the mechanical workshop in Tatura. Savings in lost time in both areas have been achieved through better workplace organisation of critical parts and tools.

The pilot program conducted in the Central Goulburn operational area resulted in 52 hours of time saved (travel and administration) within a one week period

Access Tracks and Fencing Program

A program to fence channels and create access tracks commenced on G-MW backbone channels during the year. The program aims to reduce maintenance and operations costs in the long term. This program ensures that access to sites is constructed and protected, allowing G-MW to efficiently maintain the channel system. Fencing provides protection of G-MW channels against stock damage which if left unchecked is a major contributor to the deterioration of channels.

The works completed in this financial year include:

• Central Goulburn area - 56 km of access tracks and 24 km of fencing.
• Rochester area - 74 km of access tracks and 12 km of fencing.
• Torrumbarry area - 61 km of access tracks and 4 km of fencing.
• Shepparton area - 34 km of access tracks.
• Murray Valley area - 15 km of access tracks.

Drainage

G-MW constructed $2.9 million of surface drainage works this year, funded by the Goulburn Broken and North Central Catchment Management Authorities. A network of more than 3,000 km of drains capture run-off from local rainfall and farm irrigation and help manage the impact of runoff on local waterways and the environment

The drainage works included:

• The continued construction of Benwell Primary Surface Water Management System at Myall.
• Works on Mosquito Drain 40 south of Tatura.
• Works on Stanhope Depression west of Stanhope. Commencement of the Deakin 16 extension east of Stanhope.
• Construction of the Mosquito 8/25P Community Surface Water Management System at Byrneside.

G-MW also provided general support to multiple stakeholders including Catchment Management Authorities and responded to heavy rain and floods at the start of 2011. Advice to NVIRP on asset rationalisation and supply of water to environmental features was provided through the Connections Environmental Infrastructure Committee.

G-MW assessed 117 whole farm plans (referred by local government) for their impact on G-MW assets and local drainage.

The revised Irrigation Drainage Memorandum of Understanding was signed by G-MW this year, along with partner organisations the North Central and Goulburn Broken Catchment Management Authorities, the EPA, DPI and DSE.

Capital Works

G-MW has traditionally used a mix of internal and external engineering and construction resources to deliver its capital works program. With the rollout of irrigation modernisation, G-MW's works program will continue to increase and securing the additional resources required in a competitive market will be difficult. Recognising this challenge, G-MW commenced assessment of alternative means of engaging with the market to secure resources. A final decision on an alternative delivery model has not been made but G-MW is now prepared to adapt to any future requirement for engineering and construction resources ensuring that programs continue to be delivered in the most cost effective manner and to the high standard expected by our stakeholders.

During 2010/11 $49 million of capital works was delivered by G-MW. The program included:

• Upgrades and rehabilitation of irrigation and dam assets.
• Dam safety upgrade completed at Goulburn Weir.
• Upgrade of Mildura Trestle Weir for Murray-Darling Basin Authority.
• Commencing construction of the East Loddon pipeline.
• Commencing refurbishment of the Mildura-Merbein Salt Interception Scheme.
• Upgrade of the Asset Management system.
• Continuation of drainage programs in partnership with Goulburn-Broken and North Central Catchment Management Authorities.
• Continuing works on the MDBA's Living Murray Program at Gunbower and Hattah Lakes in support of the North Central CMA and Mallee CMA

Tatura Depot

In order to minimise its operational cost, G-MW consolidated its asset holdings in Tatura and grouped the accommodation of 100 staff at the Cussen Street depot. The project included the selling of the disused precast concrete plant at William St and the purchase of land adjacent to the construction yard at Cussen Street. The consolidation of the works unit has improved the efficiencies and synergies of these groups as well as reducing the costs of maintaining multiple sites and aged infrastructure.

Land Aquisition

Operating in a commercial and regulatory environment, the Property Services unit undertook a significant number of land acquisitions in support of capital projects for the drainage program, channel remodelling, NVIRP plastic lining of channels and special projects including the East Loddon Pipeline Project storage basin site and the Tatura Depot land consolidation. The unit also took over the function of licensing private works on irrigation channels including supply works initiated by NVIRP.

Leasing and Licencing

A new development lease was negotiated for the Eildon Caravan Park. A three year program of grazing licence renewal across all water storages was concluded this year at Tullaroop Reservoir.

Statutory Planning

Approximately 1,400 planning applications were received and processed in 2010/11, the first full year of operation for G-MW's Statutory Planning section which was established to administer G-MW's statutory planning obligations. This year also saw the implementation of the Department of Planning and Community Development's guidelines for planning permit applications in open, potable water supply catchments. Work was undertaken with the Department and local Councils to resolve planning issues, and a strategic approach taken to responding to planning permit applications for development in urban fringe situations to take account of rationalisation opportunities for redundant or alternate water supplies.

G-MW assesses planning applications to meet a range of objectives, including the requirements of the Safe Drinking Water Act to minimise risks to water quality within its catchments. Under Section 55 of the Planning and Environment Act 1987, G-MW is a statutory referral authority for developments within any declared Special Water Supply Catchments and the irrigation areas. G-MW strives to achieve a resilient and diverse irrigation region by working closely with Catchment Management Authorities, government agencies and the local community to provide innovative natural resource management services. This includes addressing the impacts of salinity in irrigation and dryland areas of Northern Victoria and supporting sustainable irrigation communities and environmental values across the catchment region, as well as contributing to the development and review of regional catchment strategies both in the Goulburn- Broken and North Central regions.

Environment

G-MW undertakes a range of services to comply with its environmental obligations in relation to catchments and water quality, including aquatic plant management, salinity management, surface and sub-surface drainage support, water quality and land management planning and salt interception management.

Environmental Compliance

G-MW has a requirement to comply with various health and environment obligations related to catchment water quality:

• Department of Health - Safe Drinking Water Act 2003 and Safe Drinking Water Regulations 2005
• Water Industry Act 1994 - Statement of Obligations issued by Minister for Water
• Environmental Protection Act

G-MW is committed to ensuring it meets its environmental obligations relating to catchments and water quality. Water from the 16 storages G-MW manages is used for multiple purposes such as providing domestic and stock water, maintaining environmental flows and supplying urban water corporations with water for treatment for some 120 towns.

G-MW has developed strong relationships with catchment partners such as Catchment Management Authorities and reports directly to a number of agencies in achieving compliance with these obligations, including:

• Maintaining an Environmental Management System.
• Implementing Safe Drinking Water Act Risk Management Plans.
• Responding to drought and flood.
• Undertaking research and development.
• Participating in regional and local government planning.
• Blue-green algae bloom response.
• Monitoring impacts of G-MW activities on river and aquifer health.
• Responding to incidents or events that may impact on water quality such as bushfires or fish deaths.
• MDBA Salinity Management Strategy.
• Victorian Strategy for Healthy Rivers, Estuaries and Wetlands.

River, Wetland and Aquifer Health

In addition to the delivery of environmental water to many river reaches and wetlands across Northern Victoria, G-MW is involved in the state and regional programs to improve river, and wetland health such as DSE's Riparian Advisory Group, Lower Broken Creek Management Plan, Sevens Creeks Action Plans, Loddon River Restoration Project, and River Murray (Yarrawonga to Torrumbarry) Streamside Restoration Plan . Many of these projects will form part of the new regional strategies for healthy rivers and wetlands.

G-MW's accredited environmental risk management system ensures that G-MW staff have processes in place to manage the environmental risks associated with G-MW's activities. Project environmental management plans based on best management environmental practices are routinely established and implemented for G-MW works and projects.

Monitoring River Health

G-MW is a partner in Regional Surface Water Monitoring Partnerships across Northern Victoria. These monitoring partnerships cover the collection of both water quality and quantity data, data analysis and data storage. Water quality data is available via www.vicwaterdata.net. DSE is the manager of the data warehouse which is currently being reviewed and improved.

Innovation and Technology Combats Weeds

Pest plants and animals have the potential to impact on the service to customers, by clogging channels and reducing water quality.

To comply with its obligations for water quality, environmental management and biodiversity, G-MW continued work this year on managing pest animals and plants, and encouraging native species. Consolidating all weed management staff from across the business into a dedicated team of 21 has enabled G-MW to successfully manage weed growth, respond to the locust plague and develop innovative ways of using new technology to apply herbicides and develop new ones for managing aquatic weeds. Revegetation was undertaken in several areas including Goulburn Weir.

Water Quality Managed in a Year of Contrasts

With a dramatic return to more normal seasonal conditions and water resources moving from drought to flood, G-MW has collaborated with other agencies and applied adaptive management techniques to minimise impact on customers and communities. Various blackwater events caused by flooding were managed to minimise impact on fish health and ensure recreational storages maintained as much public amenity as possible.

During the year there were two major blue-green algae blooms. While this was the same number as last year, the blooms appeared in different storages and tended to appear for longer during 2010/11. Storages with a history of blue-green algae remained unaffected while this year's long duration of warnings at Lake Eildon was unprecedented in its history.

While fulfilling obligations in providing warnings about blue-green algae and liaising with the coordination committee, G-MW remained sentitive to the needs of recreation users and local communities. G-MW staff conducted increased monitoring, erected warning signs at major recreational areas, sent letters to affected customers, informed the public by regular media releases, and updated phone and website information services. G-MW also created a series of fact sheets on blue-green algae to better inform people of the risks and to enable them to make informed decisions.

As a result of increased depth, cold water monitoring resumed at Lake Eildon and some Loddon storages, contributing to DSE research on the natural temperature regime of rivers.