Sphere advised First Sentier Investors and its water business, Water Utilities Australia, on its acquisition of a recycled water treatment and recycled water pipe network asset known as Aquanet. 

AquaNet produces recycled water for industrial use in the Fairfield, Cumberland and Parramatta local government areas of Western Sydney, New South Wales. AquaNet has the capacity to produce up to 7,300ML per annum of recycled water and is ideally situated to support the growth in the Greater Western Sydney region.

The engagement required Sphere to take overall responsibility for First Sentier’s participation in a competitive bid process run on behalf of the vendors. Sphere’s role was to project manage the transaction on behalf of First Sentier from EOI phase through to binding offer and finally contractual and financial closing. This included managing the due diligence process with relevant third parties (legal, technical, accounting, tax and insurance) as well as negotiations with the vendors’ sell side advisory team through to financial close.

Sphere also undertook commercial due diligence, performing an assessment of existing contractual arrangements and related performance. Critical to this engagement was meeting the infrastructure fund client’s investment objectives. Sphere reviewed material transaction documents and financial models attached to the business and provided key inputs into the due diligence process.

Sphere advised the NSW Environment Protection Authority (EPA) as part of the development of the 20-year Waste Strategy for NSW. The purpose of the Strategy will be to set a 20-year vision and directions to reduce waste to landfill, driving sustainable recycling markets and identifying and improving the state and regional waste infrastructure network. 

Sphere was responsible for preparing a suite of reports including a situational analysis, demand projections for the NSW waste sector, and to benchmark the NSW waste sector against international and domestic best practice to identify areas of improvement. The analysis considered the three solid waste streams:

• commercial and industrial (C&I): waste from commercial and industrial businesses

• construction and demolition (C&D): waste from construction and demolition activities

• municipal solid waste (MSW): waste from households and public places.

Key findings from the analysis assisted the EPA in the development of the 20-year Waste Strategy.

Sphere advised Infrastructure Australia in the drafting of the inaugural Waste Chapter for the Australian Infrastructure Plan 2021 (the Plan). Sphere leveraged its industry experience to undertake a comprehensive literature review and provide a number of reform recommendations to achieve a ‘waste free society’ in Australia.

Waste reform recommendations outlined in the Plan to accelerate Australia’s transition to a circular economy include:

• avoid waste, improve resource recovery and build demand and markets for recycled products by integrating the circular economy in national waste policy and infrastructure projects

• encourage market development through government and industry partnerships to accelerate and extend the implementation of the National Waste Policy’s data actions and bring national consistency to the household waste collection and landfill levy system.

Sphere provided financial, commercial and technical advice to Sustainability Victoria (SV) to deliver waste infrastructure funding as part of the Australian Government and Victoria’s circular economy policy and action plan. 

Sphere advised SV across the grant funding program, including:

• development of fit-for-purpose applicant guidelines and weighted evaluation criteria

• review of grant funding applications, focusing on the financial, commercial, economic and technical project elements and deliverability risks to the State

• provision of independent views to the evaluation panel, for consideration in assessing applicants for receipt of grant funding.