National Water Grid Fund

Projects must meet the criteria set out in the National Water Grid Investment Framework  as well as other NSW considerations.

Proponents must demonstrate how projects will provide long-term benefits to water security, the agriculture and primary industry sectors, regional economic development and/or water supply resilience.

See the National Water Grid applications page for more information. Proponents may be eligible to apply for funding to:

• conduct feasibility/research studies under the Science Program:  potential funding will be up to 50 per cent or more where there is a demonstrated need
• develop a preliminary business case: potential funding will be up to 50 per cent
• develop a detailed business case: potential funding will be up to 50 per cent. A preliminary business case is required to support detailed business case proposals.
• undertake construction work: potential funding will be up to 50 per cent of the project’s total capital costs for delivery. A detailed business case is required to support construction proposals.

Examples of eligible projects include:

• water treatment plants, water recycling plants and desalination plants
• groundwater storage
• managed aquifer recharge
• surface water storage, such as dams and weirs
• irrigation district modernisation or expansion
• pipelines and other projects that facilitate the movement of water.

Under the National Water Grid Fund’s First Nations Water Infrastructure Program, the following projects for First Nations communities are also eligible:

• upgrading networks
• fixing leaking pipes
• building and equipping bores
• installing water treatment systems.

Examples of ineligible projects include:

• on-farm initiatives (opportunities exist under other funding programs)
• urban water storage and distribution systems (without a benefit to primary industry or regional development)
• maintenance or refurbishment projects without a benefit element
• projects supplying water for the exclusive use of a private business or individual.

Organisations eligible to submit an expression of interest to be considered for the National Water Grid Fund include:

• local councils/authorities
• irrigation organisations (defined as a person or body with irrigation entitlement for commercial agricultural production)
• NSW Government departments
• First Nations organisations
• Australia's leading science agencies
• private corporations, where the project has multiple beneficiaries.

The department's Water Group will evaluate expressions of interest for eligibility and alignment with the criteria set in the National Water Grid Framework and NSW Government considerations. The Water Group will then work with successful proponents to help develop funding proposals for consideration by the  Australian Government. This support may range from expert advice and coordination through to  support with application development and management of projects, including obtaining necessary approval from the NSW Minister for Water (or delegate) for the funding application.

The Australian Government adheres to a stringent independent internal process as outlined in the National Water Grid Investment Framework across the lifecycle of funding applications from eligibility assessment, investment decision, application development and project review.

If the project is successful, the Water Group will work with proponents to develop the funding agreement with the Australian Government and set up project level governance.

The NSW Government will act as the applicant on behalf of proponents. The NSW Government can also put forward its own project submissions, which are subject to the same review and assessment processes.

The NSW Government opens  an expression of interest process for eligible organisations to put forward project proposals in advance of the National Water Grid Branch funding rounds. The Water Group will assess the submitted expressions of interest for eligibility, identify those best meeting the funding criteria, and work with shortlisted organisations to help develop funding applications  for consideration by the Australian Government.

Funding applications must include:

• an options assessment report, feasibility study and/or business cases presenting the benefits of the project or program. If a benefit cost ratio is available, the department may independently review the analysis and advise on the appropriateness and rigour of the estimates.
• cost estimates (P50/P90), which may be reviewed by department staff and use the department’s cost forecasting approach. The final costing must include the department labour expense cap (LEC) and overhead costs (on-costs/corporate) to cover the costs of program administration.
• a risk register, which may be independently reviewed by the department’s risk and assurance team and may require issues to be addressed by the proponent prior to submission.
• the planning approval pathway (and status), which may be reviewed by the department’s Planning and Environmental team and any issues addressed prior to submitting the application.

See the National Water Grid applications page for more information.