ON-FARM IRRIGATION EFFICIENCY PROGRAM
Funding Guidelines
Sustainable Rural Water Use Infrastructure Program
Round Five (2014-19)
To be eligible for consideration, applications must be delivered by 4pm Eastern Daylight Saving Time (EDST) on:
T HURS DAY , 19 M AR CH 201 5
For further information on this programme contact:
Department of the Environment
Phone: 1800 218 478
Email: ciu@environment.gov.au
.
LATE APPLICATIONS WILL NOT BE ACCEPTED.
© Commonwealth of Australia 2014
The On-Farm Irrigation Efficiency Program Guidelines are licensed by the Commonwealth of Australia for use under a
Creative Commons By Attribution 3.0 Australia licence with the exception of the Coat of Arms of the Commonwealth
of Australia, the logo of the Department of the Environment, content supplied by third parties, and any images
depicting people. For licence conditions see: http://creativecommons.org/licenses/by/3.0/au/
Attribute this document as the ‘On-Farm Irrigation Efficiency Program Round 5 (2014-2019) Guidelines
Commonwealth of Australia 2014’.
The Commonwealth of Australia has made all reasonable efforts to identify content supplied by third parties using
the following format ‘© Copyright, [name of third party]’.
TABLE OF CONTENTS
Introduction ...................................................................................................................................................................... 1
Programme objectives ...................................................................................................................................................... 1
About the funding guidelines............................................................................................................................................ 1
Guidelines do not create legally binding rights or obligations. ........................................................................................ 2
What has changed in this round of the On-Farm Irrigation Efficiency Program? ........................................................ 2
Timing................................................................................................................................................................................ 2
Available funding .............................................................................................................................................................. 3
Funding arrangements under the programme ................................................................................................................. 3
Who is eligible to be a delivery partner? .......................................................................................................................... 3
Who is NOT eligible to be a delivery partner? .................................................................................................................. 4
Consortium members ....................................................................................................................................................... 4
Conditions of funding under the programme – further eligibility requirements ............................................................. 4
Activities eligible for funding ............................................................................................................................................ 5
Activities NOT eligible for funding .................................................................................................................................... 5
Application process overview ........................................................................................................................................... 6
Information required for applications .............................................................................................................................. 7
Merit criteria for applications ........................................................................................................................................... 7
Economic and social criteria .......................................................................................................................................... 7
Environmental criteria ................................................................................................................................................... 7
Technical criteria ........................................................................................................................................................... 7
Value for money criteria................................................................................................................................................ 8
Project Management and governance criteria ............................................................................................................. 8
Financial viability criteria ............................................................................................................................................... 9
Submitting an application ................................................................................................................................................. 9
Closing dates.................................................................................................................................................................. 9
Where to obtain an application form ............................................................................................................................ 9
Format of application forms to submit ......................................................................................................................... 9
Lodgement of the application ..................................................................................................................................... 10
Acknowledgement of applications .............................................................................................................................. 10
Assessment ..................................................................................................................................................................... 10
Approval of funding ........................................................................................................................................................ 10
Funding agreement ..................................................................................................................................................... 10
Commencement date .................................................................................................................................................. 11
When can proponents expect to commence sub-projects and how long can they take to implement? .................. 11
Payment of funding ..................................................................................................................................................... 11
Monitoring, evaluation and reporting......................................................................................................................... 11
Trade approval of water entitlements transferred to the Australian Government ....................................................... 11
Further Information ........................................................................................................................................................ 11
Other funding programmes......................................................................................................................................... 11
Taxation ....................................................................................................................................................................... 11
Conflict of Interest ....................................................................................................................................................... 12
Compliance .................................................................................................................................................................. 12
Publicity and acknowledgement of Australian Government support ........................................................................ 12
Bank accounts.............................................................................................................................................................. 12
Indemnities and warranties ........................................................................................................................................ 12
Treatment of information provided to the Department ................................................................................................ 13
Privacy and Freedom of Information .......................................................................................................................... 13
Confidentiality ............................................................................................................................................................. 13
Departmental Conduct and Ethical Behaviour ............................................................................................................ 13
Contract for eligible surface water entitlement transfer from a proponent to the Australian Government ............. 13
Contact information ........................................................................................................................................................ 13
Glossary ........................................................................................................................................................................... 14
ATTACHMENT A: ROLE and responsibilities of applicants/ delivery partners ................................................................ 17
ATTACHMENT B: Proponent Roles and Responsibilities................................................................................................. 19
ATTACHMENT C: Application and decision process ........................................................................................................ 20
ATTACHMENT D: Assessment process ............................................................................................................................ 21
INTRODUCTION
The Australian Government is providing national
leadership on the challenges of meeting future
demand for water in a drying climate. The MurrayDarling Basin Plan (the Basin Plan) delivers on the
Australian Government’s commitment to restore the
Murray-Darling Basin’s (the Basin) rivers and wetlands
to health while supporting strong regional
communities and sustainable food production.
The Sustainable Rural Water Use and Infrastructure
Program (SRWUIP) is a national programme investing
in rural water use, management and efficiency,
including improved water knowledge and market
reform, and water purchase for the environment. It is
the key mechanism to 'bridge the gap' to the
sustainable diversion limits under the Murray-Darling
Basin Plan and consists of three main components:
irrigation infrastructure projects, water purchase, and
supply measures.
The On-Farm Irrigation Efficiency Program (the
programme) is funded under SRWUIP and is aimed at
assisting irrigators in the southern connected system
of the Basin to modernise their on-farm irrigation
infrastructure while sharing water savings between
irrigators and the environment.
PROGRAMME OBJECTIVES
The programme aims to support the implementation
of on-farm irrigation infrastructure projects (subprojects) to improve the efficiency and productivity of
on-farm water use and management. Water savings
generated by these sub-projects will be shared
between proponents and the environment with at
least 50 per cent of the water savings transferred to
the Australian Government. These sub-projects will
allow proponents to manage their water allocations
more efficiently, thereby assisting dependent
irrigation communities to adapt to a future of reduced
water availability.
The water entitlements transferred to the Australian
Government will be managed by the Commonwealth
Environmental Water Holder (CEWH) and used for the
purposes of protecting and restoring environmental
assets.
Information on the Australian Government’s strategy
to recover water for the environment is described in
the Water Recovery Strategy (June 2014), which can
be found at
http://www.environment.gov.au/resource/waterrecovery-strategy-murray-darling-basin.
Information on the progress of the Australian
Government’s environmental water recovery to meet
the Sustainable Diversion Limit can be found at
http://www.environment.gov.au/topics/water/basi
n-plan/progress-water-recovery.
ABOUT THE FUNDING GUIDELINES
These funding guidelines (the guidelines) only apply
to project proposals submitted under Round Five of
the programme.
The guidelines provide information about the
competitive grants assessment process of the
programme. Applications to the programme are
processed in two stages. Stage One is the merit
selection of organisations to act as delivery partners.
Successful Stage One applicants (delivery partners)
will then progress to Stage Two and will be required
to submit proponent (farm business level) sub-project
information. Further details regarding the application
process can be found at the ‘Application Process
Overview’ section on page 6 of these guidelines.
These guidelines are designed to provide potential
applicants with the information they will need to
make an informed decision as to whether they should
apply for funding. The guidelines also outline
requirements and processes to assist applicants
prepare their project proposal prior to submission to
the Department.
The guidelines should be read in conjunction with all
available information on funding Round Five
including; the application form, sample funding
agreement and other associated documentation, prior
to making a decision on whether to submit an
application for funding. This information can be found
at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency.
It is recommended that applicants contact the
Department if they are uncertain about aspects of the
guidelines. Note that the Department will not help in
the preparation of an application or provide funding
for an applicant to prepare a Stage One application.
These guidelines are not intended to present all the
terms and conditions that will govern the provision of
funding under the programme. Successful applicants
1
will be required to enter into a legally binding funding
agreement with the Australian Government (see page
10 for further information).
Applicants must ensure they are using the latest,
round specific version of the guidelines, application
form and sample funding agreement, as these may
be amended during the course of the programme.
Use of application forms from previous funding
rounds will make Round Five applications ineligible.
GUIDELINES DO NOT CREATE LEGALLY
BINDING RIGHTS OR OBLIGATIONS.
Nothing in these guidelines or the application form is
intended to create legally binding rights or
obligations. The Parliamentary Secretary may vary the
processes and/or timing set out in these guidelines
and is not obliged to accept any application,
regardless of whether it complies with these
guidelines and the assessment process.
During its consideration of project applications the
Department may clarify with applicants and/or seek
external expert advice on any aspect of an
application. To be eligible for consideration for
funding applicants must demonstrate they meet the
eligibility criteria to be a delivery partner (see page 3).
However, due to the competitive nature of the
programme, the submission of an application by an
eligible organisation that meets the merit criteria
does not guarantee that an offer of funding under the
programme will be made.
The Parliamentary Secretary reserves the right to
approve funding for a project as presented in the
application form in whole or in part.
What has changed in this round of the
On-Farm Irrigation Efficiency Program?
Round Five of the programme will support projects
located in the Southern Basin New South Wales zone
of the Murray-Darling Basin. It will be the final round
of the On-Farm Irrigation Efficiency Program funded
under the SRWUIP.
In order to ‘bridge the gap’ to the sustainable
diversion limits in the Basin Plan, only projects both
constructed in, and able to transfer eligible surface
water entitlements from the following eligible
catchments will be eligible for funding: NSW Murray,
Murrumbidgee and Lower Darling (i.e. the Darling
river catchment south of Menindee Lakes) river
catchments.
Eligible surface water entitlement and eligible
catchment are defined terms.
There has been a change to the merit criteria for
Stage One assessment from previous rounds. The
former governance merit criteria have been subdivided into project management and governance
criteria and financial viability criteria.
As this is the final round of funding available to this
programme under SRWUIP, potential delivery
partners will be expected to have actual sub-projects
agreed with irrigators (proponents) by the closing
date of Stage One applications on 19 March 2015. The
application period has been extended to allow for
actual sub-projects to be developed with proponents.
There has been a change to the way the value for
money criteria is assessed in regard to in-kind
support. Total project costs will now only be
comprised of the Australian Government investment
and all proponent and other cash contributions.
In Round Five, projects that meet all of the merit
criteria in an eligible catchment may be excluded
during project ranking should volumetric limits for
water recovery to bridge the gap to sustainable
diversion limits in the eligible catchment be reached
during assessment of applications for this programme.
The process of awarding funding will also change. A
merit list of all eligible sub-project types will be
determined in the Stage One assessment. Using this
merit list, Stage One conditional funding will be
awarded to successful delivery partners up to the limit
of the available funding approved by the
Parliamentary Secretary. In the Stage Two
assessment, delivery partners will be required to
provide information on each sub-project awarded
conditional funding within 60 days. If the required
information is not provided in this time or if all the
sub-projects of the sub-project type fail to maintain
the value for money assessment of Stage One, the
conditional funding may be withdrawn and the next
eligible sub-project type on the merit list will be given
the opportunity to be funded.
TIMING
Round Five (2014-19) of the programme is now open
for the submission of Stage One applications. To be
eligible for consideration, applications must be
delivered to the Department by 4pm EDST on
Thursday, 19 March 2015. Refer to the section on
2
‘Submitting an Application’ on page 9 for further
details.
WHO IS ELIGIBLE TO BE A DELIVERY
PARTNER?
AVAILABLE FUNDING
Stage One applications are being sought from
organisations that wish to undertake the role of a
delivery partner. Delivery partners will have a critical
role in designing and managing a project that brings
together a number of proponent sub-projects
designed to improve on-farm irrigation efficiency and
transfer a share of the water savings generated
through these proponent sub-projects to the
Australian Government. In Stage One applications
delivery partners must also outline how their selected
proponent sub-projects will be evaluated and
managed and must estimate the volume of water
entitlements that will be available for transfer to the
Australian Government.
The Australian Government has allocated $125 million
for Round Five of the programme to projects that
recover eligible surface water entitlement from the
NSW Murray, Murrumbidgee and Lower Darling.
$25 million of this funding has become available
through unspent funding redirected from Australian
Government funded NSW State Priority Projects.
The allocated funding amounts are at the discretion of
the Parliamentary Secretary and may be subject to
change.
Subject to the funding allocated to this round of the
programme, there is no maximum or minimum
funding limit for overall delivery partner projects, subproject types or individual sub-projects.
FUNDING ARRANGEMENTS UNDER THE
PROGRAMME
The programme will provide funding to delivery
partners that are engaged as project managers for the
Australian Government through a funding agreement
to manage and implement proponent’s sub-projects.
During Stage One, applications are only being sought
from organisations that wish to undertake the role of
delivery partners. Applications are not open to
individual irrigators (proponents) who must apply for
funding through successful delivery partners during
Stage Two.
Funding is not available to assist with the preparation
of applications for Stage One. However, successful
delivery partners can include costs associated with
the preparation of their Stage Two application as part
of (but not in addition to) their claim for
administration and project management costs.
Once a funding agreement is signed with a delivery
partner, an initial payment of up to eight percent of
the funding agreement project value for the subproject works can be made to the delivery partner for
administration and project management costs.
Australian Government funding cannot be used by
delivery partners or proponents to purchase water
entitlements or allocations.
Delivery partner applicants under the programme
must meet the following eligibility requirements:
 An entity with direct and demonstrable links
to eligible irrigators in the Southern Basin
NSW zone such as, but not limited to:
o an Irrigation Infrastructure Operator
o a Catchment Management Authority
o a commodity or agricultural industry
group
o a regional irrigation body.
 Able to demonstrate it has the authority
under organisational governance
arrangements to be the lead organisation
responsible for the delivery partner project
and be able to enter into contractual
arrangements with others to implement the
project.
 Financially viable as demonstrated through
the provision of financial statements and
related documents.
 A legal entity capable of entering into a
funding agreement, for the term of the
agreement, with the Australian Government
(note: unincorporated associations are not
eligible).
 Registered with the Australian Taxation Office
for Goods and Services Tax purposes with a
valid Australian Business Number (ABN).
 Seeking funding for proponent sub-projects
located only within the Southern Basin NSW
zone and who offer eligible surface water
entitlements.
 Irrigation equipment suppliers may apply to
act as delivery partners only where the
irrigation equipment supply business is an
3
ancillary component of their business
operations.
Where such an ancillary supply business exists
additional requirements will need to be met, including
that delivery partners:
 do not mandate particular suppliers of
products or services (including themselves)
 ensure a competitive process is conducted
(i.e. at least three quotes are sought) before a
proponent may select the products or services
that the delivery partner supplies as part of its
ancillary business.
In circumstances where the proponent chooses to
purchase a delivery partner’s products, the proponent
must sign a declaration outlining why they purchased
a supply from the delivery partner and record details
of the supply (including recording details of other
quotes sought and received).
WHO IS NOT ELIGIBLE TO BE A DELIVERY
PARTNER?
Individuals or organisations not eligible to act as
delivery partners include:
 Individual irrigators - however individual
irrigators may be selected to undertake a subproject by a delivery partner at the Stage Two
application process.
 State governments or local government
bodies - however, they may provide technical
or other support to a delivery partner and be
a consortium member.
 Individuals or organisations that supply or
install irrigation equipment and do not meet
the ancillary business requirements.
Further information on the role and responsibilities of
delivery partners is provided at Attachment A and at
Attachment B for proponents.
CONSORTIUM MEMBERS
There is no obligation for delivery partners to create a
consortium. However, applicants may choose to invite
other organisations and entities to become part of a
consortium to enhance their capacity to identify,
develop and manage the projects more effectively.
Consortium members can help do this by:
 providing links to a wider or different range of
irrigators; and/or
 providing expertise and capacity that the
delivery partner lacks.
Consortium members may supply and install
equipment. However, this process will be strictly
managed to ensure proponents are free to choose
products and services.
While other bodies may be involved in or make a
contribution to an overall delivery partner project as a
member of a consortium, the Australian Government
will only engage with the eligible delivery partner as
detailed in the programme application form.
CONDITIONS OF FUNDING UNDER THE
PROGRAMME – FURTHER ELIGIBILITY
REQUIREMENTS
Deliver partner applicants must ensure they meet or
that each proponent sub-project selected as part of
their overall project will be able to meet the following
eligibility requirements:
 Applicants must submit the Round Five
delivery partner application form and all
attachments for Stage One and the Round
Five Smartform and all attachments for the
Stage Two assessment. Incomplete
applications are unlikely to be accepted.
 The selection of sub-projects must be
undertaken in a transparent way, for
example, through a ranking system based on
technical merit and value for money.
 The sub-projects each generate a minimum
water saving volume of 20 megalitres (ML) of
which at least 50 per cent must be returned
to the Australian Government in the form of
an unencumbered eligible surface water
entitlement(s). A minimum of 10ML must be
transferred from any one eligible water
surface entitlement. An eligible surface water
entitlement must have a sufficient volume of
water to enable the transfer being offered to
the Australian Government.
 The proponent;
o is the registered owner of an eligible
surface water entitlement within an
eligible catchment as defined by these
guidelines and can discharge any
encumbrances that may be held over this
entitlement at the time of the Stage Two
application. Details of this entitlement
must be entered into the Stage Two
application form
o if the eligible surface water entitlement is
not legally owned and registered to be
used by the proponent at the closing date
of submission of the Stage Two
application form, that sub-project will be
ineligible under the programme.
 The unencumbered eligible surface water
entitlements must be able to be transferred
4






to the Australian Government prior to project
funding being provided to the proponent
involved in the sub-project.
A technically valid farm irrigation plan must
exist for each proponent sub-project
proposed for funding through the delivery
partner project. Such a plan will assist in
ensuring the proposed infrastructure subproject is suitable to the farm layout, systems
and water supply to achieve the water
savings. It is the delivery partner’s
responsibility to ensure that the farm
irrigation plans used are technically sound.
The farm irrigation plan must be submitted
for the Stage Two assessment.
Each property, where irrigation efficiency
improvement works are conducted must have
a water metering system for the property’s
irrigation works that is compliant with the
NSW Government's implementation plan
under the National Framework for Non-urban
Water Metering. The water metering system
data must be made freely available to the
Bureau of Meteorology. Further information
on non-urban water metering can be found at
http://www.environment.gov.au/topics/wate
r/rural-water/sustainable-rural-water-useand-infrastructure/non-urban-water-metering
Only sub-projects that require the installation
of new or upgraded meter/s to meet the
National Framework for Non-urban Water
Metering as part of their infrastructure
upgrade can include these costs in their
project funding.
Each property, where irrigation efficiency
improvement works are conducted, must be
able to provide evidence to show a
connection to an irrigation supply system
and/or an approval and capacity to take water
for irrigation purposes directly from a river.
Delivery partner projects, including all
proponent sub-projects, must be completed
within a maximum of 36 months of a funding
agreement being signed with the Australian
Government or before 28 February 2019,
whichever is earlier. For auditing and/or
review purposes of the programme and the
water savings obtained, access (including site
visits) to sub-projects will be required up to 24
months following the completion of the
delivery partner project.
All projects must comply with relevant
Commonwealth, State, Territory and local
authority environmental, heritage, workplace
health and safety, and planning laws,
including the Building Code. This requirement
is specified in the funding agreement, and
action may be taken to cancel the project or
retrieve project funds where such laws have
not been complied with.
ACTIVITIES ELIGIBLE FOR FUNDING
Funding will support activities that generate water
savings for the Australian Government, will be
infrastructure based, occur on an existing irrigated
farm, and may include the following:
 Installing new or upgrading existing irrigation
infrastructure or technology, including
automated water management systems and
sensing equipment intended to improve
decision-making about irrigation which will
improve irrigation efficiency.
 Improving irrigated area layout or design for
the purpose of improving on-farm irrigation
efficiency (e.g. laser grading,
decommissioning old irrigation infrastructure
as part of enhancing the overall efficiency of
the system).
 Ancillary equipment necessary for new or
upgraded irrigation systems to function (e.g.
computer equipment or pumping equipment).
 Training, where this is important to the
success of the project. However, training on
how to use new irrigation infrastructure
equipment should normally be provided by
the supplier as part of the installation costs.
 Pre-construction activities including:
building/environmental approvals, cultural
heritage approvals, engineering design and
environmental impact statements (provided
these do not commence prior to Stage One
(conditional) approval).
Programme funding will be directed to irrigation
applied to primary production. This includes irrigated
crops, pasture for stock (e.g. dairy) and commercial
horticulture.
ACTIVITIES NOT ELIGIBLE FOR FUNDING
Activities that are ineligible for project/sub-project
funding include, but are not limited to, activities that
acquire water savings generated by the following:
 Research and development projects.
 Upgrading existing or installing new irrigation
systems for urban or industrial land uses.
 Projects generating improved irrigation
efficiency and savings from application of
different management approaches such as
5








crop rotation or use of new plant types
requiring less water.
Projects converting irrigated land to dryland
agriculture (this does not include within farms
where it is consistent with a farm irrigation
plan).
Projects where the total irrigated area
footprint is increased as a result of the project
activity by the proponent.
Projects where the total water use is
increased as a result of the project activity by
the proponent.
On-going labour and maintenance costs
associated with operating new or existing
infrastructure.
Projects that have been completed or have
already commenced (i.e. programme funding
will not be provided to cover expenditure
already incurred or committed by a delivery
partner or other project participant).
Projects seeking to establish irrigation on
farms not previously irrigated or within new
irrigation districts.
Any activity including designs and planning
and approvals already commenced prior to
Stage One assessment.
Projects involving increased access to
groundwater and/or supplementary
entitlements will not be eligible for funding
under Round Five of the programme.
APPLICATION PROCESS OVERVIEW
All applications will be assessed against the eligibility
requirements before being assessed competitively
against other applications and the merit criteria as
outlined in these guidelines. Attachment C outlines
the application and decision process and Attachment
D outlines the assessment process.
Applications are processed in two stages. During
Stage One, applicants must: confirm their eligibility;
address the merit criteria outlined in these guidelines
at a project level; and provide information on the
types of irrigation infrastructure conversions they
intend to deliver. It is not necessary to provide all
details of proponent’s sub-projects in the Stage One
application. However, applicants will be expected to
have actual sub-projects agreed with irrigators.
Applicants will have all sub-project types merit listed.
Applications will be assessed by a panel comprised of
departmental officers, a NSW State Government
officer and independent technical and financial
consultants. The independent consultants will be
drawn from panels that are declared on the On Farm
Irrigation Efficiency Program’s web page at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency. This panel
will provide a recommendation report to the
Parliamentary Secretary outlining projects eligible for
funding.
Applicants that are successful in Stage One will
receive conditional approval for some or all of the
sub-project types in their application and will then
become delivery partners.
Successful delivery partners will then progress to
Stage Two where they are required to submit
proponent sub-project information within 60 days of
notification by the Department.
Stage Two applications must meet the same eligibility
and merit criteria as Stage One. As Stage One
conditional funding approval is awarded
competitively, the Department will negotiate with
delivery partners during Stage Two to ensure
consistency with Stage One is maintained. Project
attributes including funding amounts, project costs
and the volume of water savings are important and
where more than one eligible surface water
entitlement type is offered for transfer to the
Australian Government against a sub-project at Stage
One, then the value for money of the different
entitlement types must be maintained at Stage Two.
Delivery partners are expected to submit proponent
sub-project information to the Department for a
decision on whether or not the sub-project will be
included in the overall activity. Should delivery
partners fail to submit eligible sub-projects consistent
with their Stage One applications and able to
substantiate their claims for the merit listing of the
sub-project type they may lose their conditional
funding for either individual sub-projects or for the
whole sub-project type. The next eligible sub-project
type on the merit list will then be offered the
opportunity to be funded until the limit of approved
funding for the round is committed.
The assessment of Stage Two applications will include
due diligence and technical assessment by
departmental officers and technical experts before a
final recommendation for funding of sub-projects is
made to the delegate. The due diligence and technical
consultants will be drawn from panels that are
declared on the On Farm Irrigation Efficiency
6
Program’s web page at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency
Delivery partners should note that a funding
agreement will be entered into when eligible
proponent sub-projects have been assessed and the
final project funding, the volume and the eligible
surface water entitlements to be returned to the
Australian Government have been agreed with the
Department.
Proponent sub-project information must be
submitted within 60 days of notification by the
Department. If the required information is not
submitted within this period conditional approval of
the project may be withdrawn or modified.
Conditional approval may also be withdrawn or
modified if agreement cannot be reached between
the delivery partner and the Department regarding
the overall project funding and the volume and the
types of eligible surface water entitlements to be
returned to the Australian Government.
INFORMATION REQUIRED FOR
APPLICATIONS
To apply for funding under Round Five of the
programme, an applicant must complete and submit
the Stage One application form available from the
Department’s website:
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency
Delivery partners who have been awarded conditional
funding and progress to Stage Two assessment will be
required to complete an application form for each
proponent sub-project. Information required at this
Stage is outlined at Attachment A.
MERIT CRITERIA FOR APPLICATIONS
In the Stage One assessment applicants meeting the
eligibility criteria will have their eligible sub-project
types ranked on the basis of the information provided
by the applicant against the following criteria:
economic, social, environmental, technical, value for
money, project management and governance and
financial viability. All projects must meet minimum
pass or fail thresholds under each of the merit criteria
to be eligible for funding.
Projects that meet all of the merit criteria in an
eligible catchment may be excluded during project
ranking should volumetric limits for water recovery to
bridge the gap to sustainable diversion limits in the
eligible catchment be reached during assessment of
applications for this programme.
Economic and social criteria
Delivery partner projects must:
 Contribute towards regional investment and
development. This would include, for
example, contributions to regional income,
production and employment as well as
business viability.
 Include district-level capacity building
activities, such as field days, training,
demonstration activities and case studies to
encourage uptake and effective use of waterefficient practices and technologies.
Environmental criteria
Delivery partner projects must:
 Deliver substantial and lasting returns of
water to the environment to secure real
improvements in river health as
demonstrated through water savings
transferred to the Australian Government.
 Demonstrate strategies to minimise adverse
environmental impacts from project activities
during the development and as a result of the
improvements.
 Validate calculations of total water savings.
Projections should take into account the
impacts of climate change (for example, the
CSIRO Sustainable Yields research found at
http://www.csiro.au/OrganisationStructure/Flagships/Water-for-a-HealthyCountry-Flagship/Sustainable-YieldsProjects/MurrayDarlingBasinSustainableYields
.aspx).
 Deliver water in the form of secure and
transferable unencumbered water
entitlements to the Australian Government.
The agreed water entitlements to be
transferred to the Australian Government in
return for funding must be eligible surface
water entitlements as described in the
glossary.
Technical criteria
Delivery partner projects must:
 Be able to provide evidence that each subproject is: an actual sub-project; is technically
feasible and the engineering solutions are
appropriate to the needs of the irrigation
system and the sub-project site; and that the
estimated water savings are deliverable.
7
 Verify that the sub-projects will be reviewed
by a competent irrigation professional and
evidence of this review will be provided with
any Stage Two application. (Delivery partner
projects engaging certified irrigation
professionals will be highly regarded).
 At Stage Two, sub-projects will be assessed on
the basis of their location to determine:
o the suitability of the proposed irrigation
infrastructure for the farm site, crop type
and soil type (based on available
information)
o whether the nominated cost of the
proposed sub-project is within the
expected range for that type of
infrastructure and scale of installation
o whether the water savings arising from
the proposed infrastructure
improvements are within the expected
range for that type of irrigation
infrastructure, subject to any known
external factors that might affect
performance.
Value for money criteria
Delivery partner projects must deliver value for
money in the context of economic, social,
environmental and technical criteria.
The estimate of water savings to be provided by
proponent sub-projects and the proposed cost of the
proponent sub-projects is important. The delivery
partner applicant must estimate the total water
savings to be achieved by proposed proponent subprojects. The overall volume and type(s) of eligible
surface water entitlement to be transferred to the
Australian Government in return for funding must
also be identified.
All relevant information in the application will be used
to assess the value for money the project may deliver.
This will include an analysis of the cost per megalitre
of the estimated water savings against the relevant
market value for eligible surface water entitlements
during the Stage One application period. This analysis
will take into account:
 The total project cost relative to the total
value of water savings estimated to be
generated by the project. The total project
cost will take account of Australian
Government funding, project administration
costs approved for the project and all
proponent and other cash contributions.

The Australian Government investment in the
project relative to the value of water savings
to be transferred to the Australian
Government.
When a project receives conditional approval, the
value for money demonstrated at the Stage One
application must be maintained in the Stage Two
application. Projects that do not maintain value for
money through Stages One and Two may not proceed
to a funding agreement.
Project Management and governance criteria
Delivery partner applicants must demonstrate:
 Their ability to successfully manage large,
complex natural resource management
projects.
 A track record of engagement with
proponents to achieve agreed outcomes.
 A sound understanding of best practice
project management.
 They can fulfil the roles and responsibilities of
a delivery partner outlined in these
guidelines.
 Their ability to engage with the Australian
Government to achieve agreed outcomes.
Applicants must provide, in their application, evidence
in support of their project management capability.
Examples of projects currently underway and/or
previously completed by the applicant should be
outlined, including an evaluation of their
effectiveness.
The programme management capability of applicants
who have participated in Rounds One, Two, Three and
Four of the programme may be considered in the
assessment process. Applicants may also provide the
contact details of three referees able to comment
directly on the applicant’s project management
experience.
In addition, details of the project management and
governance arrangements for the delivery partner
project must be provided to demonstrate that the
applicant can deliver the project on time, within
budget and against all key objectives. Applicants must
demonstrate:
 Details of appropriate skills and expertise in
irrigation technologies, project management,
monitoring and evaluation and other areas as
necessary for project implementation, or the
capacity to access such appropriate skills and
8





expertise as necessary for project
implementation.
Methodologies and milestones linked to a
feasible project timeframe and plan.
A risk management and treatment plan
identifying risks associated with all stages of
the proposed project through to project
completion and a brief description of the
process to manage these risks.
Details of any funding or linkages, current and
proposed with any other Commonwealth or
State Government funding programmes that
may impact on delivery of this project.
An overall delivery partner project budget
including expenditure timelines and project
administration costs.
Evidence of financial co-contributions (if any),
including letters of commitment detailing
cash amounts from consortium members and
other project partners.
Financial viability criteria
Delivery partner applicants must demonstrate:
 Their ability to manage the financial elements
of large, complex natural resource
management projects.
 Robust management of the financial
processes of their organization.
 A strong position from which to manage
financial risk.
Where an applicant has been in business for three or
more years, copies of annual reports (or reports to
shareholders) and financial statements for the last
three full financial years must be provided.
If an applicant has been operating for less than three
years, a certificate of establishment, financial
statements for the period of operation and, where
available, annual reports (or reports to shareholders)
must be provided with the application.
Where applicants are required by corporate laws or
regulations to prepare audited financial statements,
those audited financial statements must be
accompanied by the auditor’s report.
Where applicants are not required by corporate laws
or regulations to prepare audited financial
statements, financial statements must still be
provided and must be accompanied by a statement
from an independent third party, such as the
applicant’s accountant, to verify the statements are
an accurate reflection of the enterprise.
SUBMITTING AN APPLICATION
Closing dates
The closing time and date for funding applications will
be 4.00 pm (Eastern Daylight Saving Time/EDST)
Thursday, 19 March 2015. It is the responsibility of
the applicant to ensure that their application is
delivered to the Department before this time.
Incomplete application forms and supporting
documentation are unlikely to be accepted.
Applications can be submitted at any time up to the
closing time and date, applications will not be
accepted after this time.
Where to obtain an application form
Applications must be prepared using the official
Round Five application form and submitted in the
format detailed below. Applications not submitted on
the official application form and/or not submitted as
detailed below will not be considered.
The application form may be downloaded from the
Department’s website at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency
If applicants are unable to access the Department’s
website, applications and supporting materials can be
obtained by contacting the Department on
1800 218 478
Format of application forms to submit
Applicants must submit the following by the closing
time and date:
 ONE (1) UNBOUND ORIGINAL, SIGNED hard
copy of the application together with one (1)
copy of the supporting documentation.
Information included in the application and
attachments, must be certified as correct by a
person appropriately authorised by the
applicant’s organisation.
 ONE (1) ELECTRONIC COPY (disc/USB drive)
of the application in Microsoft Word format
and the supporting documentation in
Microsoft Word or Excel or Adobe PDF
format.
Emailed applications or supporting documentation
will not be accepted.
9
Lodgement of the application
Hardcopy applications, supporting documentation
and discs/USB drives must be posted to:
The Assistant Director
Funding Round Five
On-Farm Irrigation Efficiency Program
Department of the Environment,
GPO Box 787
CANBERRA ACT 2601
Or sent via courier to:
The Assistant Director
Funding Round Five
On-Farm Irrigation Efficiency Program
Water Division
Department of the Environment
John Gorton Building
King Edward Terrace
PARKES ACT 2600
Acknowledgement of applications
All applications received will be acknowledged in
writing shortly after the official closing time and date.
ASSESSMENT
The programme is based on a competitive grants
model to ensure the best applications are selected for
funding. Applications will be assessed on the basis of
the information provided by the applicant against the
eligibility and merit criteria outlined in these
guidelines. Failure to comply with criteria will mean
that the application is ineligible. Applicants should be
aware that assessors are not obliged to refer to or rely
on knowledge or documentation other than that in
the application form (and its specified attachments).
Attachment D provides further detail on the
assessment process.
If any application forms are altered, changed or
otherwise manipulated at any stage, the complete
application will be void.
APPROVAL OF FUNDING
The Parliamentary Secretary reserves the right to
approve funding for a delivery partner project as
presented in the application form or parts thereof.
The main steps in the process for approval are as
follows:
 The Parliamentary Secretary will announce
the successful delivery partner projects under
the programme.

A formal letter of offer will be sent to
successful applicants from the Department.
 All applicants will be contacted, advised of the
outcome of their application and will be
offered feedback.
 Successful applicants will receive conditional
support for their project and, upon
acceptance of the offer, will become delivery
partners.
 The Department will negotiate with Round
Five delivery partners on the specific details of
proponent sub-projects during the Stage Two
assessment process.
 Unsuccessful negotiations will lead to the next
sub-project type on the merit list being
offered funding to the limit of approved
funding.
 Following the successful completion of the
Stage Two assessment process, delivery
partners will enter into funding agreement
negotiations with the Australian Government.
A flow chart illustrating the steps in the application
and decision process is provided at Attachment C.
Funding agreement
The contractual arrangements for each approved
delivery partner project will consist of:
 A funding agreement between the Australian
Government and the delivery partner with
specific milestones and milestone payments
for the agreed project activities identified.
 An individual contract between the delivery
partner and each of the proponents that
includes the requirements set out in the
funding agreement between the delivery
partner and the Australian Government.
 An individual contract between the Australian
Government and each of the proponents to
transfer agreed water savings to the
Australian Government.
Once an application has been approved and any
subsequent matters settled, the Department will
enter into a legally binding funding agreement with
each delivery partner. The funding agreement will
describe the respective roles, responsibilities and
obligations of each party. During the negotiation
process the Department will work with delivery
partners to develop the details to incorporate into the
schedule and other areas of the funding agreement.
Funding agreements may be tailored to mitigate risks
associated with an application (for example where
10
issues arise relating to a delivery partner’s ancillary
business and supply of products or services).
A sample funding agreement is available at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency
The funding agreement will contain the standard
terms and conditions, together with schedules that
set out details of project specific matters, payment
timetables, requirement for due recognition of all
Australian Government funding contributions,
reporting requirements and any other relevant
matters as necessary. If the standard terms of the
funding agreement require amendment, an updated
version will be made available via the Department’s
website. Applicants must ensure they have the most
recent version of the standard sample funding
agreement.
Funds cannot be paid to a delivery partner until a
funding agreement has been executed by the
Australian Government.
Commencement date
The commencement date for projects is the date the
Australian Government delegate executes the funding
agreement. The Department will work with successful
applicants with the aim of having a funding
agreement in place with 3 weeks of the approval of
sub-projects.
When can proponents expect to commence subprojects and how long can they take to
implement?
Individual sub-projects may then commence once
contracts have been signed between the delivery
partner and proponent and water entitlements have
been transferred to the Australian Government.
Funding agreements require all elements of the
project to be completed within 36 months of a
funding agreement being signed with the Australian
Government or before 28 February 2019, whichever is
earlier.
Payment of funding
Funding will be paid following the execution of the
funding agreement and in accordance with the agreed
milestones and payment schedules and provided all
conditions required before the commencement of the
project have been met.
Monitoring, evaluation and reporting
In line with standard Australian Government audit
and evaluation requirements, all funded projects will
be subject to financial and performance monitoring
and evaluation to ensure that they are meeting
specified milestones and performance indicators as
detailed in the funding agreement.
Progress reports associated with milestone payments
will be required from delivery partners, as will a final
report and independently audited financial
statements providing evidence of practical completion
and demonstrating the results and expenditure of
projects on completion.
TRADE APPROVAL OF WATER
ENTITLEMENTS TRANSFERRED TO THE
AUSTRALIAN GOVERNMENT
Any eligible surface water entitlements transferred to
the Australian Government as part of the programme
must be exempt from any trading restrictions which
may be applicable at the time of transfer.
FURTHER INFORMATION
Other funding programmes
Proposed projects will not be eligible for duplicate
funding. Where delivery partners are receiving funds
from or have also applied to a state/territory or
Australian Government programme for similar
activities to be funded, the Department will
determine whether the application requests duplicate
funding.
Taxation
The Department does not provide tax advice.
Applicants, delivery partners or proponents should
seek independent legal advice concerning the tax
consequences of their participation in this programme
(including advice concerning income tax, capital gains
tax and goods and services tax).
The tax consequences of participation may vary
according to the particular circumstances of each
applicant, delivery partner or proponent. Further
information regarding the tax consequences of water
transfers generally is publicly available on the
Australian Taxation Office (ATO) website.
Applicants, delivery partners and proponents can also
contact the ATO business call centre for assistance –
freecall 13 28 66. The Australian Government will not
provide any funding under this programme to
compensate a delivery partner or proponent for any
11
tax liability incurred as a result of participation, except
where a taxable supply is made to the Australian
Government and a tax invoice provided for GST under
the funding agreement.
Delivery partners and proponents should note that
the Australian Government will not accept liabilities
for past, present or future taxation arising from any
investments funded under this programme.
Conflict of Interest
Throughout the duration of the project, if there are
any matters related to the business interests of
persons directly involved with projects under this
programme that may conflict with their role in the
project, these matters must be brought to the
Department’s attention as soon as a potential or
actual conflict of interest is known. The applicant
must describe in their application how they will
manage potential or actual conflicts of interest.
Compliance
Delivery partners must agree to meet Australian
Government contractual obligations including
governance and reporting requirements as outlined in
the funding agreement.
Delivery partners must comply, and ensure
proponents comply with the provisions of all relevant
statutes, regulations, by-laws and requirements of
any Commonwealth, State, Territory or local authority
including those arising under the WHS laws in respect
of occupational health and safety during the delivery
of the project and sub-projects.
For projects where the value of the Australian
Government contribution to the project is at least $5
million and represents at least fifty per cent of the
total construction value; or the Australian
Government contribution to the project is $10 million,
irrespective of the proportion of the Australian
Government funding, the delivery partner must
comply with the requirements of the Australian
Government Building and Construction OHS
Accreditation Scheme and Building Code 2013.
Further information regarding the Australian
Government Building and Construction OHS
Accreditation Scheme can be found at
www.fsc.gov.au. Further information regarding the
Building Code 2013 can be found at
http://www.fwbc.gov.au/building-code.
Publicity and acknowledgement of
Australian Government support
All publicity for a project shall give appropriate
recognition to the role of the On-Farm Irrigation
Efficiency Program and the Australian Government in
supporting that project. This includes invitations to
participate in formal project openings or launch
ceremonies and publicity events.
Projects will also be required to include appropriate
branding and written acknowledgement of the OnFarm Irrigation Efficiency Program and the Australian
Government on publicity and written materials
developed for the project. The Department will work
with delivery partners with respect to project
publicity.
The Department will publicly report grant funding
awarded to successful delivery partners no later than
fourteen (14) days after a funding agreement is
executed or amended by the Australian Government’s
delegate. Details of grants will be published on the
Department’s website at
http://www.environment.gov.au/aboutus/accountability-reporting/grants-listing
Bank accounts
For audit and accountability purposes, delivery
partners will be required to keep a separate bank
account for funding provided under this programme
funding round, unless legislation states otherwise.
Indemnities and warranties
Delivery partners:
 will be required to indemnify the Australian
Government against any environmental or
other third party damage caused by the
proponent sub-projects
 will be required to provide details of
warranties to ensure that the infrastructure
that is delivered under this programme is
constructed to specification
 should note that the Australian Government
will not accept any responsibility for any legal
contracts entered into prior to the signing of
the funding agreement, except where
explicitly agreed.
Delivery partners must provide evidence they have
public liability insurance for at least $20 million prior
to the signing of the funding agreement and must
maintain that insurance for the duration of the
project. Where this insurance is taken on an annual
12
basis, the annual insurance renewal must be provided
as evidence.

Proponents delivering sub-projects must provide
evidence they have public liability insurance for at
least $20 million prior to the signing of their contracts
with delivery partners and must maintain that
insurance for the duration of the sub-project. Where
this insurance is taken on an annual basis, the annual
insurance renewal must be provided as evidence.

TREATMENT OF INFORMATION PROVIDED
TO THE DEPARTMENT
Information contained in application forms received
or funding agreements executed for this programme
may continue to be used by the Department to inform
current and future programmes.
Privacy and Freedom of Information
Information such as the content of a project or
contact details of applicants, collected by the
Department about applicants, delivery partners or
proponents in the programme will be managed in
accordance with the Privacy Act 1988. Applicants are
also reminded that any application for funding
submitted under the programme is subject to the
Commonwealth Freedom of Information Act 1982.
More information on privacy is contained in the
Round Five application form.
Confidentiality
If an applicant believes any information provided in its
application is confidential including ‘commercial-inconfidence’ information, the applicant must clearly
identify such information and the reason for its
confidentiality at the time of applying for funding.
Applicants should be aware that the Department is
subject to certain legislative and administrative
accountability and transparency requirements of the
Australian Government including disclosures to the
Parliament and its Committees. While the
Department will treat all information provided by
applicants sensitively, any information contained in or
relating to an application, including information
identified by an applicant as confidential, may be
disclosed by the Department:
 to its employees and advisers in order to
evaluate or assess an application
 to the Parliamentary Secretary
 within the Department or other agencies
where this serves the legitimate interest of
the Australian Government

in response to a request by a House or
Committee of the Parliament of the
Commonwealth of Australia
where information is authorised or permitted
by law to be disclosed
where the information is in the public domain
other than by the Department’s disclosure of
that information.
Departmental Conduct and Ethical Behaviour
The operation of the programme, including the Round
Five assessment process is governed by the
Department's Conduct and Ethical Behaviour
framework. This framework can be found at:
http://www.environment.gov.au/aboutus/accountability-reporting/conduct-ethical-behaviourframework
Contract for eligible surface water entitlement
transfer from a proponent to the Australian
Government
Arrangements for eligible surface water entitlement
transfers under this programme will be consistent
with the programme's water entitlement transfer
information available at
http://www.environment.gov.au/topics/water/ruralwater/sustainable-rural-water-use-andinfrastructure/farm-irrigation-efficiency.
CONTACT INFORMATION
For further information regarding the On-Farm
Irrigation Efficiency Program email –
ciu@environment.gov.au or call (toll free)
1800 218 478. An officer from the Department will
respond to your enquiry as soon as possible.
It is in the interests of applicants to discuss the
requirements of the application process with the
Department. All applicants will be offered feedback
on their application at the end of the assessment
process.
The Department is committed to best practice in
relation to resolving disputes and/or complaints.
Should a problem or complaint be identified, please
contact the Department.
Further information is available in the Department’s
service charter at:
http://www.environment.gov.au/aboutus/publications/service-charter
13
GLOSSARY
ancillary
Means that this component of the business generates 15 per cent or less of the
total business income.
actual sub-project
A draft sub-project selected through the transparent process as described in
these guidelines.
applicant
An organisation which applies to participate in the programme and which has
not yet received or does not receive conditional approval to proceed from
Stage One to Stage Two.
Building and Construction OHS
Accreditation Scheme
This scheme operates such that, subject to certain thresholds, only head
contractors who are accredited under the scheme can enter into contracts for
building work that is funded directly or indirectly by the Australian
Government. Further information regarding the scheme can be found at
www.fsc.gov.au.
Commonwealth Environmental
Water Holder
The Commonwealth Environmental Water Holder established under section
104 of the Water Act 2007 (Cth).
consortium member
An organisation or entity invited by the delivery partner to assist to identify,
develop or manage sub-projects.
delegate
An employee of the Commonwealth who has been empowered by the
Parliamentary Secretary with responsibility for the On-Farm Irrigation Efficiency
Program or otherwise duly authorised, to carry out the relevant function in
respect of the programme.
delivery partner
An organisation who is eligible to be a delivery partner and who is approved in
this role following the assessment processes for Stage One. Delivery partners
that meet the conditions for funding approved by the Parliamentary Secretary
will sign funding agreements.
delivery partner project
At Stage One, means a project for which programme funding is sought through
the application process by an applicant. At Stage Two means a project which is
being developed, negotiated and implemented by a delivery partner.
due diligence
Due diligence is a measure of prudent activity, or assiduity, as is properly to be
expected from, and ordinarily exercised by, a reasonable and prudent person
under the particular circumstances; not measured by any absolute standard but
depends on the relative facts of the case.
eligible surface water
entitlement
NSW Murray Regulated River - High Security, NSW Murray Regulated River General Security, Murrumbidgee Regulated River - High Security,
Murrumbidgee Regulated River - General Security, Lower Darling Regulated
River -High Security, Lower Darling Regulated River - General Security.
eligible catchment
Catchments within which eligible entitlements are located and which are
defined in the Basin Plan as being within the Southern Basin NSW zone. The
catchments are: NSW Murray, Murrumbidgee and the Lower Darling.
encumbrance
Means, in relation to any water entitlement:

a mortgage, charge, encumbrance, pledge, lien or other security over
14






funding agreement
the entitlement;
a lease, licence, term transfer or transfer for a period of any right, title
or interest in respect of the entitlement;
a caveat, garnishee order, writ of execution, right of set-off, assignment
of income or monetary claim affecting the entitlement;
a preferential interest, title retention, or other estate, interest, claim or
arrangement affecting the entitlement;
a contract of sale or option to purchase or acquire the entitlement; or
an agreement to grant, create, allow or register any of these,
including encumbrances which are registered or unregistered,
statutory, legal or equitable.
Legal contract to be executed between the Australian Government and a
delivery partner. A sample funding agreement can be found at:
http://www.environment.gov.au/topics/water/rural-water/sustainable-ruralwater-use-and-infrastructure/farm-irrigation-efficiency
in-kind contribution
A non-cash contribution to a sub-project, including labour, facilities, or
equipment.
irrigation infrastructure
operator
An entity that owns or operates infrastructure for the purpose of delivering
water to other persons for the primary purpose of use in irrigation.
letter(s) of commitment
A written letter expressing commitment to the applicant’s
project proposal.
Minister
Minister for the Environment.
Parliamentary Secretary
The Parliamentary Secretary to the Minister for the Environment or the
Minister for the Environment.
Pass or fail assessment
A project that passes must meet the following definition: Good to exceptional.
Reasonable to full achievement of the requirements specified. Any errors, risks,
weaknesses or omissions can either be accepted or can be overcome or
corrected with minimal effort.
A project that fails meets the following definition: Poor to unacceptable.
Negligible to no achievement of the requirements specified. Errors,
unacceptable risks or risks needing substantial further treatment, weaknesses
or omissions which are difficult or impossible to correct or overcome. Criteria
not addressed.
proponent
An irrigator who is either a person or an organisation engaged by the delivery
partner to complete a sub-project. A proponent must have the ability to enter
into a water entitlement transfer contract with the Australian Government.
registered owner
The person listed on the water entitlement register as the legal owner.
Southern Basin NSW zone
The system of the Murray-Darling Basin that includes the following river
catchments: New South Wales Murray, Murrumbidgee, and the Lower Darling
(south of Menindee Lakes).
15
sub-project
An individual on-farm irrigation infrastructure project as identified by a delivery
partner as part of a delivery partner project.
sub-project type
A group of sub-projects with a similar type of irrigation infrastructure works.
Grouped for assessment and project management.
Sustainable Rural Water Use
and Infrastructure Program
(SRWUIP)
The national programme investing in rural water use, management and
efficiency, including improved water knowledge and market reform, and water
purchase for the environment.
unencumbered
Means in relation to any water entitlement that the water entitlement is not
subject to any encumbrances.
16
ATTACHMENT A: ROLE AND RESPONSIBILITIES OF APPLICANTS/ DELIVERY PARTNERS
All applicants/delivery partners are required to
undertake a range of roles and responsibilities at
different stages of the process. They will make all
arrangements with proponents for improving on-farm
irrigation efficiency.
The roles and responsibilities at Stage Two will only
apply to those applicants that are successful in
becoming delivery partners. The following
information outlines the key roles and responsibilities
at each Stage:
STAGE ONE – DELIVERY PARTNER
APPLICATION PROCESS

prepare application form including necessary
attachments
o


if any application forms are altered,
changed or otherwise manipulated at
any stage the complete application
will be void
determine range and scope of irrigation
conversion types to be included in the
application (this may include liaising with
proponents on sub-projects)
identify individual proponent sub-projects on
the basis of the guidelines including:
o
o
eligible surface water entitlement details
o
final individual sub-project details

take all reasonable measures to ensure that
eligible surface water entitlements offered to
the Australian Government are
unencumbered and are available to be
transferred within the specified timeframe
after a funding agreement is signed

ensure each sub-project has a farm irrigation
plan before lodging Stage Two applications

negotiate the details of the funding
agreement with the Australian Government.
Costs which may be borne by delivery partners during
this phase include:
 the cost of liaising with proponents and
gathering information

the cost of submitting Stage Two applications.
PROJECT IMPLEMENTATION

act as the recipient and manager of funds
provided by the Australian Government,
including where the delivery partner is part of
a consortium

ensure that the overall programme of activity
as set out in the funding agreement is
effectively undertaken, including the
implementation of proponent’s sub-projects,
within the agreed period and budget and
consistent with the objectives of the delivery
partner project

evaluation of the technical merit and
value for money of individual subprojects, including the volume of eligible
surface water entitlements to be
transferred to the Australian
Government

negotiate actual sub-projects with proponents

estimate the volume of water able to be
saved by the project and the volume able to
be transferred to the Australian Government
fund proponent’s sub-projects in compliance
with the guidelines, the funding agreement
and the objectives and milestones agreed in
the delivery partner project including:

estimate costings of the project.
o
facilitating the transfer of eligible surface
water entitlements from the proponents
to the Australian Government
o
ensuring works are carried out in
accordance with the signed agreements
between the delivery partner and each
proponent in relation to sub-projects
Costs which will be borne by applicants during this
phase include:
 the cost of preparing the application.
STAGE TWO – INDIVIDUAL SUB-PROJECT
APPLICATION PROCESS

gather relevant information from proponents
not already collected for Stage One, including:
o
personal / company details including
names, address, ABN/ACN, employment
positions

implement a legally binding contract between
the delivery partner and each of the
proponents receiving funds that includes the
relevant requirements as set out in the
funding agreement with the Australian
Government including with respect to the
17



acquittal of funds for each proponent subproject
institute project and financial management
systems as set out in the funding agreement
GOVERNANCE
if a proponent selects the services and/or
equipment of a project consortium member,
the delivery partner will ask proponents to
sign a declaration detailing why they
purchased from the consortium member and
record details of the supply (including
recording details of other quotes sought and
received).
Delivery partners are responsible for establishing the
governance structures to deal with actual or potential
conflicts of interest and evidence of these structures
must be submitted with the Stage One application.
Delivery partners must ensure that consortium
members and proponents are aware of the
governance standards set by the delivery partner in
their Stage One application.
Costs which may be borne by the delivery partners
during this phase include:
ongoing project management including
assessment of works and administration
requirements.
Delivery partners cannot mandate that proponents
purchase goods or services from consortium members
or any other specific supplier.
18
ATTACHMENT B: PROPONENT ROLES AND RESPONSIBILITIES
Proponents (individual irrigators) interested in
participating in the programme have a range of
responsibilities:
STAGE ONE – DELIVERY PARTNER
APPLICATION PROCESS

determine which organisations in their locality
may be applying to become a delivery partner

where relevant, the proponent should
undertake their own due diligence process to
assure themselves that they would be
comfortable aligning with potential delivery
partners

ensure they have a current, unencumbered
eligible surface water entitlement (10ML
minimum transfer from 20ML minimum total
project savings) within the eligible catchments
identified in these guidelines and can
discharge any mortgages or encumbrances
that may be held over the entitlement(s). A
minimum of 10ML must be transferred from
any one eligible surface water entitlement. An
eligible surface water entitlement must have
a sufficient volume of water to enable the
transfer being offered to the Australian
Government.

express their interest to organisations they
identify as potential delivery partners

negotiate actual sub-projects with delivery
partners.
sub-project will be ineligible to form part of
the project

enter into a sub-project contract with delivery
partners.
PROJECT IMPLEMENTATION

work with the delivery partner to implement
the sub-project on their property consistent
with the sub-project contract they have with
the delivery partner

ensure the timely transfer of eligible surface
water entitlement(s) to the Australian
Government.
STAGE TWO – INDIVIDUAL SUB-PROJECT
APPLICATION PROCESS

provide information to the delivery partner as
required to complete the sub-project plan and
any information relating to due diligence
assessment requirements

provide evidence of ownership of a current,
unencumbered eligible surface water
entitlement within the eligible catchments
identified in these guidelines and
demonstrate an ability to discharge any
encumbrances that may be held over these
entitlement(s). Details of eligible surface
water entitlement(s) must be included in the
delivery partner’s Stage Two application form.
If the eligible surface water entitlement is not
legally owned and registered to be used by
the proponent when the Stage Two
application form is submitted, the proposed
19
ATTACHMENT C: APPLICATION AND DECISION PROCESS
STAGE ONE: Call for Round Five
applications from organisations applying to
be a delivery partner (DP)
Round Five Stage One
applications close
19 March 2015
Applications assessed by the
Department
(16
October)
Parliamentary Secretary provides
conditional approval of the applicant
project
Successful applicants notified of
conditional approval
STAGE TWO: DP to complete
applications with individual subproject information and submit to the
Department within 60 days
If the application is not completed and
submitted within this period,
conditional approval of the sub-project
may be withdrawn
Department assesses DP Stage Two
applications and discusses any
outstanding matters with DP within
60 days
If the Department and DP cannot reach
agreement then conditional approval of
the sub-project may be withdrawn and
the next eligible sub-project on the
merit list offered funding.
DP funding agreements and water access
entitlement transfer contracts with
proponents are negotiated and signed
with the Australian Government
If the eligible surface water access
entitlements are not transferred within
the period specified in the DP funding
agreement the sub-project may be
terminated
Project implementation and reporting
20
ATTACHMENT D: ASSESSMENT PROCESS
Stage One Assessment – Application Form
Eligibility assessment of applicants
and project against mandatory
requirements
Threshold assessment of
applications against the six merit
criteria
Ranking of project based on merit
criteria
Parliamentary Secretary to give conditional
approval to delivery partners and projects (by
sub-project type)
Stage Two Application Assessment
Eligibility assessment of individual
sub-projects
Technical, due diligence and value
for money assessment of sub-project
types and sub-projects
Review Stage Two sub-project
ranking against Stage One ranking to
ensure rankings are maintained
Successful sub-projects move to a
funding agreement
Sub-projects failing
to maintain value for
money will be
excluded. If no subprojects in a subproject type are
successful, merit
ranking will be used
to determine the
next sub-project
type offered
funding.
21