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Probity and Corporate Management

Probity and Corporate Management

Adelaide Desalination Plant - Probity Support


PSI Asia Pacific was engaged to provide probity support to the various procurement processes leading to the establishment of the Adelaide Desalination Plant. Major procurements included not just the plant itself (estimated at $1.8 billion) but also the water transfer pipeline to Happy Valley (estimated at $110 million) and the major 20-year renewable energy requirements (estimated at $2 billion).


Our primary probity role involved establishing a formal and suitable probity environment and then continuing to maintain that environment by advising SA Water on planned procurement processes, independently monitoring engagements with industry and selection processes (including workshops), reviewing key acquisition documents and providing probity advice during the various engagements with stakeholders, including negotiations. Formal probity training was provided by PSI Asia Pacific for all SA Water team members very early in the procurement process ensuring that all SA Water participants had a clear understanding of their obligations and responsibilities to best practice probity.

After construction had commenced, PSI Asia Pacific undertook regular reviews of the Contractors’ demonstrated Corporate Responsibility performance. Corporate Responsibility reviews are part of a process that aims to embrace responsibility for a company's actions and encourage a positive impact through its activities with the environment, consumers, employees, communities, stakeholders and all other members of the public who may also be considered as stakeholders. For this project Corporate Responsibility criteria were directly linked to similar criteria assessed during the tender period. The high level Corporate Responsibility criteria utilised were: procurement ethics and conduct of selection of Contractors and contract management; environmental policy and behaviour; safety policy and behaviour; and equity and diversity in the management of human resources.

PSI Asia Pacific established a process by which key Corporate Responsibility aspects demonstrated by the Contractors were regularly independently reviewed and reported. Any areas identified that might give rise to concern provided the Contractors with an opportunity to address them. This approach offered assurance to SA Water that these sometimes more subjective issues remained an important part of how the Contractors delivered the project.

Amongst other benefits, the on-going reviewing and reporting provided by PSI Asia Pacific meant that SA Water and the Contractors maintained a means by which they could demonstrate the extent to which the Contractor was meeting these broader obligations to stakeholders. To this end PSI Asia Pacific Corporate Responsibility reports were tabled during SA Government Select Committee Hearings.


PSI Asia Pacific was involved in the Adelaide Desalination Plant project from mid-2008 to early 2013 and considers that during that time its team has contributed significantly to ensuring not only the integrity of the various procurement processes was in place, but also that an enhanced and measurable level of Corporate Responsibility was demonstrated by the Contractors.