News | 05 March

Victorian water infrastructure is projected to experience sustained increases in annual activity over the next five years as construction of major water pipelines, irrigation and distribution networks expands.

New data released by Civil Contractors Federation Victoria reveals the water and sewerage infrastructure sector will benefit from an easing of investment and activity in transport construction.

“Water and sewerage plays a key role enabling residential, commercial and industrial infrastructure, and so Victoria’s growing economy and population will necessitate increased levels of construction in this space,” CCF Victoria interim Executive Director Annie Kessell said.

“This will be particularly true moving forward, given nearly eight years of stagnant growth in activity, at a time when Victoria’s needs have increased.”

The Victorian Civil Construction Outlook: Water Sector report, produced by Oxford Economics Australia, highlights the role Victoria’s expanding population forecasts will play in driving increased opportunities for civil contractors, despite continuing market conditions and economic challenges.

Water and sewerage construction work completed by segment, $Billion, current dollars

Key findings from the report include:

  • Total water and sewerage construction activity is forecast to rise from $1.4 billion in FY2025 to a peak of $2.4 billion in FY2030 – a 70 per cent increase.
  • The five-year pipeline of water infrastructure projects up to 2030 is projected to be worth $10 billion;
  • Sewerage construction is forecast to climb nearly 80 per cent from $640 million in FY2025 to $1.1 billion by FY2030.

Beyond broad population and housing drivers, increased bulk water capacity will be required for Victoria to reach critical policy goals across energy transition, manufacturing as well as new technologies such as water-thirsty data centres.

“Notwithstanding competing policy positions, the bottom line remains the same: Victoria is in a state of seemingly perpetual growth, including a population that is forecast to soar to 10 million by mid-century,” Ms Kessell said.

“This means water services will continue to be in demand. The significant uplift being forecast in subdivisions work to help realise the Government’s housing targets will be entirely dependent on the enabling civil infrastructure underneath, including water and wastewater infrastructure.”

ENDS

Download the White Paper at: www.ccfvic.com.au/position-papers/

Victoria water construction activity forecast to increase

Image: Malmesbury Reservoir Bridge Refurbishment (image credit: Coliban Water/Civil and Earth Australia)

Latest News