Secret plan to sell large Australian water plant to China

A major water plant in Sydney is run by a company owned by the Chinese government, leaked documents show.

The Upper South Creek Advanced Water Recycling Center in Kemps Creek, western Sydney, is operated by a company called Trility, which is owned by the Chinese Communist Party’s Beijing Enterprises Water Group.

The factory, which serves more than one million people in Sydney, will be run by Trility for five years, with the option for a further five years after that.

Under the plan, management was outsourced shortly after the NSW government commissioned companies Clayton Utz and KPMG will investigate the privatization of the water plant.

The advisers examined privatization options for Sydney Water in January 2020 and November 2021, the documents show.

The documents also say the NSW government is exploring alternative funding models for the water plant, including private sector investors.

It is also believed that the plant decision is likely to shape the long-term structure of water services in Australia.

Chris O’Keefe, who revealed the confidential documents at his 2GB show, described the management of the water plant as “worrying.”

“We’re not talking about an apartment building or a commercial property, we’re talking about our water,” he said.

“If we had to stop the Chinese government from buying our poles and wires, and we banned Huawei from being involved in our telecommunications network, how on earth could a company with such important ties as the Beijing Water Enterprises- group with the Chinese Communist Party?

“How come they are allowed to run critical water installations in the Sydney catchment area?

“This is on a day when we are spending more than $300 billion to fight the influence of the Chinese government in our region. And then, right under our noses, the Perrottet government sold the exploitation of parts of our water network to a company owned by the Chinese Communist Party.

“They must be joking.”

The leaked documents come despite NSW Prime Minister Dominic Perrottet insisting in February that his party had no plans to privatize water.

“We have no plans regarding Sydney Water. I made that very clear every step of the way.

“Labour get back to form, which is exactly what they do in every election – run fear campaigns and try to scare communities all over NSW,” he said.

In March 2020, Mr Perrottet – then Treasurer – said he had no intention of even conducting an exploratory inquiry into the privatization of Sydney Water,

However, KPMG’s ‘Future Funding Strategy’ report mentions direct pressure from the government.

“Shareholders (government ministers) have large cash needs going forward and are looking for cash inflows through asset recycling and higher dividends,” the document said.

The KPMG report advised on ‘long-term ownership models’ and ‘major structural changes’ to ‘shape the long-term structure of water services in Australia’.

A report to the Sydney Water Board revealed that plans had been developed to privatize overall ownership of the South Creek site through a public-private partnership (PPP).

“Preferred structure…Sydney Water will hold 51 percent…Private investor will own 49 percent,” the board report said.

Sydney Water is Australia’s largest water company, serving more than five million people in Greater Sydney, the Blue Mountains and the Illawarra.

Combined assets exceed $23 billion.

Modeling released last month by the Australia Institute’s Center for Future Work revealed any moves to privatize Sydney Water could increase water bills by 59 percentrising to $264 each year in the average household bill.

The study, which was commissioned by the Australian Services Union (ASU), said the government body’s sale would add between $174 and $269 to the water bill; however, this figure would likely increase due to inflation and potential population growth.

Daily Mail Australia has contacted the NSW Premier’s office for comment.