Operational Efficiency Partnership

municipal solutionsWater

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1Global Risks 2015 Report – 10th Edition, World Economic Forum

importance of partnershipsIn January 20151, the World Economic Forum announced water crises as one of the greatest risks to world society. Today, water utilities are facing numerous challenges:

• resourcescarcity

• rapidpopulationgrowthandurbanisation

• ageingwaterandwastewaterinfrastructures

• risingoperationalcosts

• increasinglystringent government regulations

• increasingcustomerexpectations of water quality and services

•maintainingaffordableprices

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To tackle these challenges, the water industry needs to manage water resources strategically. This means encouraging the reuse and recycling of water, improving the quality of drinking water and wastewater discharge, fosteringfinancingopportunities,anddeveloping treatment technologies that serve communities from urban to rural and from undeveloped to developed.

The strength and success of the water industry relies on all of its members working together towards a common goal.

SUEZ believes efficiencies can be achieved through partnerships. Drawing on our solid collaborative approaches, we have gained expertise from various local and global experiences; we work with clients and partners to deliver measurable outcomes and improvements.

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the urge topartnerSUEZ introduces the Operational Efficiency Partnership.TheOperationalEfficiencyPartnershipmodelallowsSUEZ’sexpertsandrepresentativesfrompartners and clients to establish a team to improve the performance of water and wastewater treatment plants as well as network systems.

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the m

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One team

One performance

based agreement

A risk and reward framework is established to engage each member of the team to achieve common goals and commitments. This mechanism enables the partnership’s performance to be analysed and to help partners sharerisksandbenefits.

Eachfinancialyearannualbudgetisreviewedandcomparedtothepreviousfinancialyear’sresultsin order to ensure that contractual savings are delivered to clients.

operational efficiencypartnership

Shared objectives

Shared budget

Shared KPIs

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operational efficiencypartnership

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Solid governance is crucial to driving partnership achievements.Through the Operational EfficiencyPartnership,SUEZ and our clients jointly lead the team in creating the right culture, setting out budgets,definingobjectivesand detailing action plans.

Leadership team

Chairman appointed by client. Representatives

from client and SUEZ

Integrated program delivery

teamSources from client or

local contractors

Management team

Representatives from client and SUEZ

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Enhancements can be achieved through different business improvement programs across all operational aspects to deliver committed sustainable savingsandefficiencies.

As an added value of this collaborative approach, a Technical AssistanceProgram(TAP)isintroducedwithintheOperationalEfficiencyPartnership.

Through this program, our local alliances have access to SUEZ’s globaltechnicalexpertiseandourresearchanddevelopmentprograms at CIRSEE1.

Depending on the needs and areas of improvement, SUEZ’s expertswillassisttheteaminassessingandoptimising their operations.

1CIRSEE is SUEZ’s global R&D centre dedicated to developing innovative water and wastewater technologies

Beenyup Wastewater Treatment Plant

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Through Aroona Alliance, our collaboration in Western Australia, a Good to Great strategy was launched to deliver optimisations to our client.

The strategy outlines goals including stretch goals to challenge the team to deliver beyond the contractual requirements.ToprovideameasurableKPI,a five-year sustainable saving of AUD 25M was also committed within the strategy.

As part of the Good to Great Strategy, Business Improvements are initiatives intended to improve the Alliance’sperformanceandefficiency.

Network management

Energy efficiency

Operational efficiency

Asset management

Process optimisation

Procurement and supply chain

Chemical optimisation

Safety

Water quality

Network energy efficiency

Data management

Safety

Key a

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1 TAP–TechnicalAssistanceProgram

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Savings$16.1 million of sustainable savings delivered in the first three years

Safety 1.2 million working hours without a lost timeinjuryin2014/15

Water & wastewater services compliance• 100%compliancewithDrinkingWaterQualityIndex

• 100%compliancewithnewlyintroducedWastewaterQualityIndex

Asset management• Targetof100%ofStrategicAssetManagementPlansdeveloped

• Targetofallmaintenanceplans reviewed on the risk and performance based approach

Chemical optimisation20%savingsinchemicalsacrossthe water and wastewater treatment plants

Energy efficiency$300,000 targeted savings every year

Procurement• $2.9milliontargetedsavingsoverthe

5-year plan • $1.3millionachievedtotheendof

June 16

TAP1

Morethan20TAP1 missions from July 2012 until 2016

Aroona Alliance Western AustraliaAroonaAllianceisajointventurebetweenSUEZandBroadspectrumin Western Australia. It is delivering sustainable operational efficienciesandcostsavingstotheWaterCorporation.

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Energy efficiency• Atotalcumulativecostsavingof $3.2millionacrossmajorwastewatertreatment plants

• 20%energyimprovementinefficiencyratio(kWh/MLtreated)atBolivarWWTPsince2012-13and27%improvementatChristiesBeachWWTP

Environmental performance• AttheBolivarHighSalinityPlant,the2015/16averagetotalnitrogenconcentrationattheoutletwas5.3mg/L,significantly below the consent standard

Water recycling• Allwaterplaysavitalroleinrecycling 29%ofwastewaterforuseintoiletflushing, garden watering, and irrigation of parks, crops, and vineyards

• Inthesummermonths,ChristiesBeachWWTPrecycles92%ofitswastewater

Power generation• Atotalcumulativecostsavingof $11.5millionacrossthreemajorWWTPs

• TheBolivarWWTPisnow87%self-sufficient,exporting8,097MWhtothegridin2015/16comparedwith2,361MWhin2014/15

• Co-digestionisbeingintroducedatGlenelgWWTP,achievinganincrease ofupto25%inpowergeneration

Chemical efficiency• TheimprovedchlorinedoseefficiencyattherecycledWTPsoverthepast3yearsrepresents $172,000 of cost savings

• A12%improvementinsugardosingatGlenelgWWTPhasbeenachievedover the past 3 years. This means a cost savingof$168,000

Customer serviceImproved customer attendance times fornetworksjobsresultedin8.4%lesskilometrestravelledwhilecompleting5%morejobsperemployee

Allwater South AustraliaAllwaterisajointventurebetweenSUEZandBroadspectruminSouth Australia that works cohesively with SA Water to deliver critical improvementsandefficiencies.

The Operational Efficiency Partnership helps to improve the performance of water and wastewater treatment plants as well as network systems

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smart and reliable resource management solutionsSUEZ makes the best use of water and waste by providing smart and reliable solutions for towns, cities, businesses and industry.

With80,000employeesacrossfive continents, we combine our internationalexperience,research,technology and know-how with our localexpertisetodelivereffectivesolutions for our customers.

Our local team provides solutions that supply seven million Australians with drinking water, divert880,000tonnesofwastefrom landfill every year, and enable the oil and gas sector to process natural resources in a sustainable and efficient way.

we divert up to

55%of general waste

95%of recyclables

97%of garden organics

we provide

7.0MAustralians with drinking water

3.5MAustralians with

wastewater services

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