ON-FARM IRRIGATION EFFICIENCY PROGRAMFunding 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:

THURSDAY, 19 MARCH 2015

For further information on this programme contact:Department of the Environment

Phone: 1800 218 478 Email: ciu@environment.gov.au

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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 CONTENTSIntroduction....................................................................................................................................................................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......................................................................................................................................9

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.....................................................................................................................................................11

Compliance................................................................................................................................................................12

Publicity and acknowledgement of Australian Government support.......................................................................12

Bank accounts............................................................................................................................................................12

Indemnities and warranties.......................................................................................................................................12

Treatment of information provided to the Department...............................................................................................12

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

INTRODUCTIONThe Australian Government is providing national leadership on the challenges of meeting future demand for water in a drying climate. The Murray-Darling 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 OBJECTIVESThe programme aims to support the implementation of on-farm irrigation infrastructure projects (sub-projects) 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/water-recovery-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/basin-plan/progress-water-recovery.

ABOUT THE FUNDING GUIDELINESThese 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/rural-water/sustainable-rural-water-use-and-infrastructure/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

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funding under the programme. Successful applicants 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 sub-divided 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.

TIMINGRound Five (2014-19) of the programme is now open for the submission of Stage One applications. To be eligible for consideration, applications must be

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delivered to the Department by 4pm EDST on Thursday, 19 March 2015. Refer to the section on ‘Submitting an Application’ on page 9 for further details.

AVAILABLE FUNDINGThe 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, sub-project types or individual sub-projects.

FUNDING ARRANGEMENTS UNDER THE PROGRAMMEThe 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 sub-project 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.

WHO IS ELIGIBLE TO BE A DELIVERY PARTNER?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.

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 Operatoro a Catchment Management Authorityo a commodity or agricultural industry

groupo 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

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irrigation equipment supply business is an 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 sub-project 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 MEMBERSThere 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 REQUIREMENTSDeliver 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.

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The unencumbered eligible surface water entitlements must be able to be transferred 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 sub-project 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/water/rural-water/sustainable-rural-water-use-and-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 FUNDINGFunding 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.

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Projects generating improved irrigation efficiency and savings from application of different management approaches such as 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 OVERVIEWAll 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/rural-water/sustainable-rural-water-use-and-infrastructure/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

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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 Program’s web page at http://www.environment.gov.au/topics/water/rural-water/sustainable-rural-water-use-and-infrastructure/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 APPLICATIONSTo 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/rural-water/sustainable-rural-water-use-and-infrastructure/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 APPLICATIONSIn 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 criteriaDelivery 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 water-efficient practices and technologies.

Environmental criteriaDelivery 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/Organisation-Structure/Flagships/Water-for-a-Healthy-Country-Flagship/Sustainable-Yields-Projects/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 criteriaDelivery partner projects must:

Be able to provide evidence that each sub-project is: an actual sub-project; is technically

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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.

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 criteriaDelivery 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 sub-projects. 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 criteriaDelivery 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,

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monitoring and evaluation and other areas as necessary for project implementation, or the capacity to access such appropriate skills and 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 criteriaDelivery 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 formApplications 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/rural-water/sustainable-rural-water-use-and-infrastructure/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 submitApplicants 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.

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Lodgement of the applicationHardcopy applications, supporting documentation and discs/USB drives must be posted to:

The Assistant DirectorFunding Round FiveOn-Farm Irrigation Efficiency ProgramDepartment of the Environment, GPO Box 787CANBERRA ACT 2601

Or sent via courier to:

The Assistant DirectorFunding Round FiveOn-Farm Irrigation Efficiency ProgramWater DivisionDepartment of the Environment John Gorton BuildingKing Edward TerracePARKES ACT 2600

Acknowledgement of applicationsAll 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 FUNDINGThe 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 agreementThe 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.

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Funding agreements may be tailored to mitigate risks associated with an application (for example where 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/rural-water/sustainable-rural-water-use-and-infrastructure/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 dateThe 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 sub-projects 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 fundingFunding 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 reportingIn 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 GOVERNMENTAny 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 INFORMATIONOther 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.

TaxationThe 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 –

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freecall 13 28 66. The Australian Government will not provide any funding under this programme to compensate a delivery partner or proponent for any 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.

ComplianceDelivery 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 On-Farm 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/about-us/accountability-reporting/grants-listing

Bank accountsFor 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 warrantiesDelivery 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

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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 DEPARTMENTInformation 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 InformationInformation 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.

ConfidentialityIf an applicant believes any information provided in its application is confidential including ‘commercial-in-confidence’ 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 BehaviourThe 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/about-us/accountability-reporting/conduct-ethical-behaviour-framework

Contract for eligible surface water entitlement transfer from a proponent to the Australian

GovernmentArrangements 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/rural-water/sustainable-rural-water-use-and-infrastructure/farm-irrigation-efficiency.

CONTACT INFORMATIONFor 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/about-us/publications/service-charter

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GLOSSARY ancillary

actual sub-project

applicant

Means that this component of the business generates 15 per cent or less of the total business income.

A draft sub-project selected through the transparent process as described in these guidelines.

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

delegate

An organisation or entity invited by the delivery partner to assist to identify, develop or manage sub-projects.

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

eligible surface water entitlement

eligible catchment

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.

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.

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:

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a mortgage, charge, encumbrance, pledge, lien or other security over 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.

funding agreement

in-kind contribution

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-rural-water-use-and-infrastructure/farm-irrigation-efficiency

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

proponent

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.

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).

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sub-project

sub-project type

An individual on-farm irrigation infrastructure project as identified by a delivery partner as part of a delivery partner project.

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.

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ATTACHMENT A: ROLE AND RESPONSIBILITIES OF APPLICANTS/ DELIVERY PARTNERSAll 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 evaluation of the technical merit and value for money of individual sub-projects, 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

estimate costings of the project.

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

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

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:

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

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 acquittal of funds for each proponent sub-

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project institute project and financial management

systems as set out in the funding agreement

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).

Costs which may be borne by the delivery partners during this phase include:

ongoing project management including assessment of works and administration requirements.

GOVERNANCEDelivery 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.

Delivery partners cannot mandate that proponents purchase goods or services from consortium members or any other specific supplier.

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ATTACHMENT B: Proponent Roles and ResponsibilitiesProponents (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.

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 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.

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STAGE ONE: Call for Round Five applications from organisations applying to be a delivery partner (DP)

STAGE TWO: DP to complete applications with individual sub-project information and submit to the Department within 60 days

Round Five Stage One applications close19 March 2015

(16 October)

Parliamentary Secretary provides conditional approval of the applicant project

Department assesses DP Stage Two applications and discusses any outstanding matters with DP within 60 days

DP funding agreements and water access entitlement transfer contracts with proponents are negotiated and signed with the Australian Government

If the application is not completed and submitted within this period, conditional approval of the sub-project may be withdrawn

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

Applications assessed by the Department

Successful applicants notified of conditional approval

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.

Project implementation and reporting

ATTACHMENT C: APPLICATION AND DECISION PROCESS

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Stage One Assessment – Application Form

Threshold assessment of applications against the six merit criteria

Parliamentary Secretary to give conditional approval to delivery partners and projects (by sub-project type)

Eligibility assessment of applicants and project against mandatory requirements

Stage Two Application Assessment

Technical, due diligence and value for money assessment of sub-project types and sub-projects

Eligibility assessment of individual sub-projects

Successful sub-projects move to a funding agreement

Review Stage Two sub-project ranking against Stage One ranking to ensure rankings are maintained

Ranking of project based on merit criteria

ATTACHMENT D: ASSESSMENT PROCESS

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Sub-projects failing to maintain value for money will be excluded. If no sub-projects in a sub-project type are successful, merit ranking will be used to determine the next sub-project type offered funding.