Sydney Water's annual capital program rose from A$790 million in FY 2017-18 to A$2,466 million in FY 2024-25, more than three times larger. In both years for which it reported a target, it fell short: A$1,170 million against A$1,533 million in FY 2021-22 (76%), and A$2,466 million against A$2,940 million in FY 2024-25 (84%).
The next step is bigger still
The Statement of Corporate Intent 2025-26 budgets A$3,279 million, A$3,547 million and A$3,375 million for the three years to FY 2027-28: A$10.2 billion in total. Those budgets need 33% to 44% more delivery than FY 2024-25. The Regulated Asset Base is forecast to rise from A$26.4 billion in June 2024 to A$39.5 billion in FY 2027-28.
Capital is getting more expensive
Borrowing expenses more than doubled in three years, from A$416 million in FY 2021-22 to A$868 million in FY 2024-25, reflecting more debt and higher rates. Gearing reached 62.9% in FY 2024-25, above the 60% assumption IPART adopted earlier for pricing.
A small number of firms carry the load
Much of the work runs through the same partner market. Jacobs, for example, sits in a regional consortium, the Upper South Creek treatment plant consortium and the CreekConnect networks venture.
Whether the 2025-30 price period can carry the program, which projects sit on the critical path, and what the EPA licence review could add are examined in the report. The full report, Water Infrastructure Investment and Delivery: Sydney Water, is available for USD 499 at https://ourfuturewaterintelligence.com/reports/water-infrastructure-investment-and-delivery-sydney-water. For a free overview, read the Sydney Water Utility Snapshot at https://ourfuturewaterintelligence.com/utilities/sydney-water.