Smart Governance By Gavin McMahon Chief Executive Officer Central Irrigation Trust.

Smart Governance

ByGavin McMahonChief Executive OfficerCentral Irrigation Trust

Smart Governance

ByGavin McMahonChief Executive OfficerCentral Irrigation Trust

sustainable, managed, accountable, resilient, trusted

Established 1997, Created by and survived Government Reform eg MDBA, Survived Millennium Drought, 3 year management contracts renewed, 4 Trusts joined the group

RiverlandSouth Australia

Where are we - CIT

1,243,000 ha

Irrigation - Southern Murray Darling

* Data provided by Professor Wayne Meyer of CSIRO and the CRC for Irrigation Futures

Total $6.33 billion+ water $6.66 billion(6,656GL @ $1m/GL)

Murray Darling Basin Irrigation Assets

* Data provided by Professor Wayne Meyer of CSIRO and the CRC for Irrigation Futures

Our Journey - Early

Our Journey To Date

1997 Central Irrigation Trust forms to manage Irrigation Districts

Central Irrigation Trust

• 10 Government Developed (1900-50)– 1997 transferred to Grower Ownership

• 2 Privately Developed (1960-61)– 2011 joined CIT

• 6720 Customers (3250 Irrigation, 3400 Domestic, 70 Others)

• 20,000 litres/second pumping capacity• 500 km Piped Delivery• 336 km Piped Drainage• Assets $227 million• Turnover $12 Million

Grower Owned Trusts

To ownership by farmers

The First Step

From ownership by governments

Our Irrigation Business

Monopoly supplier

Regulated Business

Irrigation Customer is the Owner

High Asset Value with Low Turnover

CIT Business Structure

Central Irrigation Trust (Operating Company formed 1997)

Grower Owned Trusts

Golden Heights Loxton

Cadell Cobdogla

Sunlands

Berri

MypolongaMoorook

Kingston

Chaffey

Waikerie

Lyrup

Annual Turnover - $12 million Irrigation Assets - $227 million Water Entitlement - 135 000 ML Site Use Approvals - 175 000 ML

Smart Governance

• Models and structure depend on circumstances

• Complex and rapidly changing operating environment• Easy to operate infrastructure• Water Trading• Increased Regulation• Greater Liabilities

• Greater Customer Demands• Daily replacement • Better water quality

• Asset Replacement• Annuity Fund• 120 Year Replacement Model

Thank you for listening