- Davis Station Critical Infrastructure Works
Department of Climate Change, Energy, the Environment and Water
2.1The Department of Climate Change, Energy, the Environment and Water seeks approval from the Committee to proceed with the proposed Davis Station Critical Infrastructure Works.
2.2The project would update old water, power, and mechanical systems at Davis Station. Davis Station is one of three permanent Australian research stations in Antarctica. These stations are managed by the Australian Antarctic Division (AAD) and conduct research on upper atmosphere physics, geosciences, medicine, meteorology, environmental remediation, climate change, biological sciences, and seabirds. Davis Station is occupied year-round by scientists, operations staff, tradespeople, and support staff who maintain the facilities and support ongoing scientific activities.
2.3The estimated cost of delivery of the project is $251 million (excluding GST).
2.4The project was referred to the Committee on 20 November 2024.
Conduct of the inquiry
2.5Following referral, the inquiry was published on the Committee’s website and via media release.
2.6The Committee received one submission and one confidential submission. A list of submissions is available at Appendix A.
2.7On 18 February 2025 the Committee received a private briefing and conducted a public and in-camera hearing at Parliament House. A transcript of the public hearing is available on the Committee’s website.
Need for the works
2.8The last major upgrade to the station was in the 1980s. The buildings and infrastructure are aged or end-of-life. Renewal will increase accommodation capacity from 69 to 91 people in summer and 30 to 35 people in winter. The main issues are:
- Water Supply: Davis has only one water source, available from late January to early April. Failure of this source would be disastrous for staff based at the station.
- Power Capacity: The main powerhouse at Davis runs at 150 per cent capacity using three generators and lacks sufficient backup.
- Vehicle Workshops: The current workshops for trades and vehicles are outdated and no longer meet the station's needs.
- At the public hearing, the Department provided further information about how the works would diversify the water supply and the impact this would have:
At the moment, we're limited to producing water in summer, from mid-January to the end of March, and that's it. Then we have to wait until that period again, and when we have that big population increase in October and November, which is when we insert our summerers, that's normally when we start to see a struggle to maintain our water levels until our RO, the reverse osmosis plant, can start up in January.
By having the sea intake and a redundancy in the reverse osmosis, that will allow us to produce water effectively all year round. Largely, we would look to just start that up, however, while there's still sea ice so we can still access the water; we'd go out and drill a hole through the sea ice and insert a pump to be able to pump back to the reverse osmosis. That would allow us to fill all our water capacity before the start of the summer period and reduces any restrictions that we need to have on population.
2.10While Davis Station has 91 beds and is designed to accommodate 91 people in summer and 35 in winter, due to the poor condition of the infrastructure, it can currently only accommodate 69 people in summer and 30 in winter.
2.11Australia’s presence in Antarctica supports scientific activities, international collaboration and economic opportunities, while minimising environmental impact on Antarctica.
Options considered
2.12The AAD explored various delivery models for the project, including market-driven and self-delivery approaches. They aimed to find a model that:
- Used the AAD's knowledge and skills for working in Antarctica.
- Provided flexibility in the project's scope, so changes or additions could be made (with government approval).
- Encouraged a positive approach to managing risks and uncertainties and was understood by the market and attracted interest.
- A Program Alliance model, delivered in accordance with the National Alliance Contracting Guidelines, was evaluated by AAD to be the most effective and efficient approach for delivering the works due to the complexity and scale of the program, and the need for a collaborative and flexible approach to delivery.
- Alliancing is a form of relationship contracting in which the Commonwealth collaborates with non-owner designers and constructors. Project delivery risks are shared among participants through pre-agreed cost-sharing arrangements. Partners are reimbursed for their direct project costs and paid for project overheads in an open-book arrangement. This long-term alliance is set up to handle multiple work packages using the commercial framework and pricing established during the initial competitive procurement process.
- At the public hearing, Bouygues, a Program Alliance Partner, noted they had experience in technically challenging projects:
We participated in the procurement process and have arrived at this point, where we're still standing. Bouygues undertakes similar projects to this around the world. For the record, Bouygues built the Chernobyl sarcophagus, with a partner, in Europe. Technically challenging projects are the core and culture of the company. We bring the global expertise and the global resources necessary to assist AAD in this project.
Scope of the works
2.16The Davis Critical Infrastructure Works will provide the following:
- New water production facilities connected to a diversified water source
- A new main power facility that can meet future needs and integrate renewable energy
- A new vehicle workshop facility
- Refurbishment of trade workshops
- Extension and integration of the site-wide reticulation system
- Decommissioning and demolition of old, unused structures.
- At the public hearing, DCCEEW expanded on the scope of the works:
The proposed activity comprises the construction and operation of a new sea-ice-deployable seawater intake and shore based pump house; a new reverse osmosis plant for the production of potable water; a new ground based two-storey building, which will become a utilities building, incorporating a new main powerhouse and a vehicle workshop; and the refurbishment of an existing combined mechanical and trades workshop.
2.18As noted above, the Program Alliance model allows for the flexible investigation, design, and delivery of these projects; changes to the scope of work or the addition of subsequent projects, subject to government approvals, are possible.
Impacts of the works
2.19The Department said that some of the potential impacts of the works related to the live operational environment, the remote location, and the highly biodiverse environment surrounding Davis Station.
2.20The Department noted that maintaining a viable supply of energy, water and accommodation to the station throughout construction would be challenging. Construction could also place strain on transportation facilities, affecting the movement of people, materials and other resources to and from research stations and other sites.
2.21Further, shipping and aviation access to the proposed site is not possible in winter. This means long-term deployments would be needed, which might conflict with regular crew rotation schedules and require construction personnel to stay for an entire season.
2.22In addition, comprehensive environmental mitigation, management and monitoring requirements are anticipated. To reduce environmental impact, designs that are quick and easy to build and remove, like pre-fabricated builds, would be used. The program would also comply with the Environment Protection and Biodiversity Conservation Act 1999 and the Antarctic Treaty System.
Cost of the works
2.23The overall capital cost of the proposed works is $251 million (excluding GST). The cost includes whole-of-life costs.
2.24At the public hearing, the Department discussed how potential delays to the project have been factored into the budget:
… any delay that means we miss a season effectively has a 12-month delay on us. That risk has been considered through the program and is built not only into the program but also into the dollars that have been captured in the total program. The likelihood of us missing a major component over that six-year period is a moderate one and one that we have to take very seriously. It won't take much for that to happen, from a weather perspective, or for one of those things that Mr Boxall spoke to not exactly going to plan [shipping requirements such as customs and biosecurity], but we have a lot of controls in place to monitor and measure them. Then we have a layout for that within our program and within the budget that has been set for the program as well.
Revenue
2.25No revenue will be generated by this project.
2.26The Department said it encourages interest and continued investment in research by public universities, other research institutions and individual researchers. It does not charge for facility use or operating costs and hence provides in-kind support to research effort.
Public value
2.27The project would help maintain Australia's research and monitoring capabilities in Antarctica. The research is valuable for understanding and protecting the environment and global systems. This research is shared with scientists worldwide, contributing to knowledge of Earth's systems. There is an ongoing demand for high-quality scientific research in Antarctica.
2.28In addition, the Department noted that the construction activities would create jobs during the project and in the production and delivery of materials to Antarctica. Job numbers would vary throughout the project where, during the design phase, about 25 full-time equivalent (FTE) jobs will be needed, increasing to around 100 FTE jobs during peak construction in 2026-27. Most of these jobs will be for Australian workers.
2.29The project will also support ongoing employment through the maintenance of aviation facilities and Antarctic stations. The use of pre-fabrication techniques will create jobs both in Antarctica and in Australia during the manufacturing of components.
2.30Finally, the delivery of the program would reduce work health and safety risks to expeditioners, scientists and other persons visiting Antarctica.
Committee comment
2.31The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
2.32The Committee supports the extra accommodation capacity these works will bring to Davis Station to enhance Australia’s research and monitoring capabilities in Antarctica.
2.33The Committee notes the innovative Program Alliance model entered into by the Department to address project outcomes for these works in the extreme conditions of Antarctica.
2.34The Committee also notes the Department’s plan to manage delays, which are likely, given the extreme conditions of Antarctica, and supports the inclusion of this in the budget for this project.
2.35Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
2.36The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Climate Change, Energy, the Environment and Water — Davis Station Critical Infrastructure Works.
2.37Proponent entities must notify the Committee of any changes to the project, scope, time, cost, function, or design. The Committee also requires that a post-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.