The project undertaken by Wannon Water is expected to create 1512 full-time equivalent jobs, $199 million in added economic value and $196 million in exports.

The current plant treats sewage from Warrnambool, Koroit and Allansford, and trade waste from industry including Warrnambool Cheese and Butter, Fonterra’s plant in Dennington, Midfield Meats and the Warrnambool saleyards.

Wannon Water managing director Andrew Jeffers said about 50 per cent of the service’s current flow was sourced from three major industrial users, meaning organic and nutrient contaminant loads treated by the plant were much higher than those typically derived from domestic sources. 

“The plant can’t accept additional loads, which is limiting the capacity of existing industries to respond to market opportunities,” he said.

“Without the upgrade, major industrial development and investment in milk and meat processing cannot be expected to occur.”

Mr Jeffers said by 2040 major industrial users could account for between 65 to 70 per cent of the treatment plant’s capacity.

“That’s why we’re looking at upgrading at 50 per cent capacity in order to cater for that significant growth,” he said.

“Sewage treatment is a backbone service that allows businesses to expand and grow, which really impacts everyone in the region.”

The existing plant was commissioned in 1996 and is located on coastal land west of Warrnambool’s Thunder Point and east of the golf club.

Wannon Water Branch Manager Asset Planning Peter Wilson said the upgrade would include two new intermittendly decanted extended aeration (IDEA) tanks to be constructed on the northern side of the facility to supplement the four existing tanks.

There are more than 17,000 fine bubble diffusers in the IDEA tanks that are used to aerate wastewater for sewage. The process has been in use at the plant for more than 20 years.

Mr Wilson said a stakeholder reference group was established to help determine the preferred upgrade option.

“As part of the investigation for the expansion we looked at a whole different range of options that we might consider including building a new treatment plan to the north of Warrnambool,” he said.

“Those options were assessed along with the enlargement of this plant, and the enlargement came out as the best option from both an economical and risk point of view.

“We confirmed that the current process really suited the type of waste that we treat in Warrnambool. It also provides an opportunity to augment the plant when new processes or improved technology comes along in the future.

“It’s really the best of both worlds - we can increase the capacity now and then line ourselves up for an improvement down the track.”

The upgrade will be the largest ever single project undertaken by the company. 

Wannon Water managing director Andrew Jeffers said the capital cost of the upgrade was included in Wannon Water’s pricing submission to the Essential Services Commission for the 2018-2023 regulatory period and would form part of a much larger capital works program over the five years.

“The facility will be designed as a life-long asset, meaning the capital cost will be spread over an extended period and across a growing customer base,” he said.

Mr Wilson said Wannon Water would spend the next 12 months putting together a detailed design process before tendering the project.

He said works were expected to start in about 18 months and would take two years to complete.

Mr Jeffers said neighboring properties would experience a short term impact during the construction phase.

“We have done some fairly significant upgrades to this plant over time and we have seemed to have managed that really well to minimise the impact on the community,” he said.

“We’ve already started engagement with the community down in this region. It’s certainly something we are really mindful of.”