Dr WOODRUFF - Mr Bolt, the Hydro annual report which is supposed to report on activities from the last financial year just gone, says that Entura had international operations in the Pacific and South East Asia with projects operating in seven countries: the Solomon Islands, Cook Islands, Tuvalu, Papua New Guinea, the Philippines, Timor and Thailand. That's on page 15. Looking at Entura's website, it lists current overseas projects only being in Papua New Guinea, the Maldives and Tonga. These last two aren't even listed in the annual report for this year. Why is there such a discrepancy between the current projects reported in the annual report and those that are displayed on the Entura's website?
Mr BOLT - Thank you for the question Dr Woodruff. I will have to ask the CEO to go into detail but I would say in general terms the portfolio projects that Entura embarks on around the work will change. Contracts come and contracts go and there will be times at which certain countries will be in our scope and sometimes not. Exactly why those particular countries aren't listed currently is not a detail I have. You will have to forgive me for that. I will ask the CEO to see if he can add to the reply.
Mr BROOKSBANK - Yes, Entura does operate internationally predominantly in the Indo Pacific region and close to home. It does a lot of work for Hydro Tasmania as well as mainland countries. Mr Bolt is correct. At various points in time during the year Entura will do pieces of work for organisations that might be bespoke one-off pieces of work they could start and finish within a financial year. They might last a couple of years. At any given point in time, there will be a list of open contracts. Prior to that, there would have been open and closed contracts.
Currently, as I mentioned, Entura is doing work in Australia. We are also working in PNG, the Solomon Islands, the Philippines, New Zealand, Tonga, the Cook Islands, Micronesia, Samoa, other parts of the Pacific, Indonesia, Malaysia, other parts of South East Asia, India, where we have an office, Vietnam and parts of east Asia. I would also comment that we have, on the website, case studies of projects we have done. It is not a full list of where we have worked or where we are working.
Dr WOODRUFF - My second question is that the annual report suggests Entura has projects in Timor and Thailand, which I just mentioned, but the website doesn't even list any past projects in those countries. The Cook Islands hasn't had an active project with Entura reported since 2017 according to your website, and the other listed countries haven't had any active projects at all since 2020. Looking at other historical projects on Entura's website since 2017, there are projects listed for Laos, Samoa, Nepal, Micronesia and the Marshall Islands. I want to understand what is going on here with transparency.
Hydro has a chequered record with work in Africa. In the past we have raised this, in this committee, a number of times over the years. We want to understand: Are there active projects going on in countries that you've listed in the annual report that aren't on Entura's website? If so, why aren't they being discussed and made available to the public?
Mr BROOKSBANK - Thank you for the question. As I mentioned a long list of countries that we are currently working in, the annual report is at a point in time so it relates to, in a financial accounting sense from a profit perspective, the activities of the year gone in a stated point in time for balance sheets, so, as at the 30 June each financial year. I understand that your question is going to the transparency of the work that we are doing overseas. Obviously, there will be some ins and outs as I have described, some projects that will come onto the books and projects that will come off the books.
It is not a question of a lack of transparency as much as we can't list everything all the time. We disclose our operations through our annual report and on our website. There may be times where it is not quite up to date but that is not for any other reason than an operational manner.
Dr WOODRUFF - Thank you. That is exactly why I am talking to you about this because you are not disclosing it in the annual report the things that you have done this year. I want to remind people that you made $168 million profit. I would have thought that you were more than capable of keeping the annual report up to date and the website.
I wrote to Hydro last year asking for a list of projects that were undertaken since January 2018. I got a response in January this year that lists 27 projects that were still active in the middle of the last financial year 2022-23. Those projects were across 16 countries including India, Indonesia, Laos, Micronesia, Nepal, New Zealand, Papua New Guinea, Philippines, several of the Pacific islands and Vietnam. Several of these countries are also not noted in the annual report. Most of the projects don't appear on Entura's website at all. Can you update me about the projects that were identified in the letter and the locations of any new projects that have begun since then?
Mr BROOKSBANK - Thank you for the question. What do you mean by update?
Dr WOODRUFF - All of those countries that had active projects in the middle of the last financial year. I would like to understand whether Hydro has had any operations in those countries at all in the financial year that you are meant to be reporting on now.
Mr BROOKSBANK - Thank you for the question. They are the countries that were listed in the letter that we replied to your letter with.
Dr WOODRUFF - That is right, 16 countries.
Mr BROOKSBANK - Yes, they had operations during the financial year, as described in the letter we provided.
Dr WOODRUFF - No, the question was about this financial year, not the previous financial year.
CHAIR - I have given the call to Mr Behrakis.
Dr WOODRUFF - I do not think the CEO understood the question or maybe he did and he is deliberately being -
CHAIR - The question has been answered satisfactorily.
Dr WOODRUFF - Question through the chair to the CEO. We have just identified that many of the projects listed in the letter Hydro sent to me last January are not included on Entura's website as either ongoing or historical projects. They weren't listed in the annual report. I guess from Tasmania's point of view, if they are not listed, did they ever exist? I want to understand what Hydro's reporting mechanism to Tasmanian taxpayers is because Entura is flying around the world, operating in countries doing work on taxpayers' money. There is a chequered history in Sarawak and Uganda, so it's very reasonable for Tasmanians to ask, 'What is your mechanism, and why is it failing?' You're not reporting what you're doing.
Mr BOLT - Thank you for your question, Dr Woodruff. We understand your interest and concerns. What we'd offer to do is undertake a reconciliation between what's in the letter, what's on the website and what's in the annual report, with reference to the confidentiality clauses that are generally part of agreements for services such as that, and report back to the committee with the best information we can provide.
In terms of Entura operating on taxpayers' money, of course, it earns revenue in those situations so it's actually bringing revenue back to the state as well as providing something like half of its service to us. Quite importantly, they learn overseas and apply those back to the Tasmanian situation which is very important cross-fertilisation.
Dr WOODRUFF - I hope you're not suggesting that because you've made a profit that that means that you don't have any reporting accountability so -
Mr BOLT - I am not suggesting that at all.
Dr WOODRUFF - I would like not just a response to that letter and that time, I want to understand the mechanism that Hydro will put in place so that every single country and project in that country is listed. I cannot understand why identifying a country and the project would be matter of confidence. If it is, then I think Tasmanians want to understand why.
Mr BOLT - I understand the question. With your agreement, we will come back with a reconciliation where we have regard to our commercial confidentiality obligations while at the same time recognising our accountability to this parliament, so we will come back with a reconciliation.
Dr WOODRUFF - I want a commitment that Hydro will do this in future as well as the past -
Mr BOLT - I understand.
Dr WOODRUFF - so are you making that commitment?
Mr BOLT - What I am suggesting is that we will review our reporting practices for future annual reports, not simply to respond to this particular request, yes.
Dr WOODRUFF - To Mr Bolt or the CEO, we've previously asked questions about Hydro's involvement in overseas projects that were plagued by human rights abuses such as the Karuma Dam project in Uganda. At the time, Hydro acknowledged that previously the risk assessment process that you use for overseas projects was flawed. Can you explain what that process is now and the date you started using it, and table a copy for the committee please?
Mr BOLT - Thank you, Dr Woodruff. Entura is very conscious of the need to provide services overseas while maintaining a strong focus on human rights and appropriate ethical conduct. We have certainly been scrutinising [inaudible]. As to the detail of the policies we've now employed in this regard, I will ask the CEO to elaborate on this.
Mr BROOKSBANK - Entura has an integrity framework and sustainability screening process that has been in place since 2012. Like all processes, it is a dynamic process, so as circumstances change and as more laws and the like come in, that process evolves. The process is guided by Hydro Tasmania's code of conduct, it's guided by our sustainability principles, our work health and safety policy, it's guided by the modern slavery statements we make and our environmental policy.
The management of integrity is built into Entura's day-to-day operations and the project management systems we use. The integrity framework also forms part of ISO9001 Quality Management System and is supported by an improvement plan, independent auditing on an annual basis, training and other regular reporting in the organisation. The sustainability screening of new countries, new clients, new partners and new infrastructure projects is part of Entura's integrity framework. The desktop processes we use conduct assessments around the sustainability and governance risks, including environmental, health and safety, human rights, community impact, modern slavery, corruption and bribery and legal financial and reputational issues.
The assessments use publicly available information and attempts to triangulate allegations of poor practice. As well as evaluating the risks, the screening process identifies risk mitigants that are applied either during the bid phase, such as asking for more information from the client, or during the project delivery phase, such as monitoring the project for media attention. Detailed screenings may be required and these provide an in depth analysis of sustainability issues and include a human rights assessment, drawing upon the UN Guiding Principles on Business and Human Rights.
All screens evaluation as greater than low risk required Entura management approval. Entura management considers the following when deciding whether to proceed: •
it considers the screening risks in mitigations; •
it considers whether the project leads to improved environmental, social and renewable energy outcomes; •
it considers the employee value propositions for the work; •
it considers the general relationship with the client, including the duration and level of trust and the ability to influence and ensure good practices; •
it considers the positive reputation of the work Entura does; and •
it considers the pipeline of work and economic conditions.
During the financial year 2023, Entura conducted 130 initial screenings, 71 projects and 59 client/subcontractor screenings.
Dr WOODRUFF - Thank you. Can you table that process, please, that each project goes through? I heard what you said and it's very important, it's very good, but presumably when a project is being considered, in order to do that analysis there must be a staff member sitting there and ticking off a series of boxes and making a series of assessments which I imagine would involve some policy or process that has to be undertaken. Could you please table what that is?
Mr BROOKSBANK - Thank you for the question. As I mentioned, it encompasses a number of different policies and guidelines. For clarity, are you looking for something like a flowchart which describes the process?
Dr WOODRUFF - Yes, the flowchart and the bits of policy that would need to be attended to and whether there are any spreadsheets with high, medium, low risk and what they are; that's what we're interested in. Could you take that on notice? Is that okay?
Mr BROOKSBANK - I want to make one caveat, through the Chair, and that is that Entura is a competitive organisation, it faces into a competitive landscape. Some of these processes that we use are internal IP. They're not something that necessarily we would want to declare to our competitor base. So to the extent that we can protect our commercial strength and viability, if you like, I think we can take that on notice and supply what you require.
Dr WOODRUFF - Okay. I think what Tasmanians are looking for is a demonstration that there is a formal process undertaken. You said a number of projects, 100 or something, had been assessed. Is every single project overseas, small and large, subject to a risk assessment process?
Mr BROOKSBANK - Yes, every single project is subject to that assessment.
Dr WOODRUFF - Under those processes, since it came into place, are you aware of any incidences occurring at the projects you have been working on in other countries or any human rights, environmental or workplace issues in that process?
Mr BROOKSBANK - Of those 130 initial screenings that I mentioned, seven projects and three clients rated greater than low risk and required Entura management approval, of which management decided not to proceed with five potential clients. No detailed screenings were conducted but further information was requested where appropriate. No screens were high risk and none required communication to the board.
Dr WOODRUFF - Thank you, that's important to know. You said that your integrity compliance framework is audited. I don't see that audited compliance report in your annual report.
Mr BROOKSBANK - It's not an audit in the context of the financial audit that is required at year end. It's an audit to remain compliant with ISO9001.
Dr WOODRUFF - Internal?
Mr BROOKSBANK - It's conducted by an external consultancy organisation because you are certified ISO9001-compliant, but it's not an audit that relates to financial results, which is what the audit for the financial report is.
Dr WOODRUFF - It's not just financial, though, the annual report, is it? It is the activities of the year. What I'm wondering, and I'm not suggesting this is the case, but how would we know that Hydro was non-compliant?
Mr BOLT - Dr Woodruff, I go back to my earlier comment that we will review our reporting practices, not simply deal with this as you've suggested as a one-off reply to the concerns you've raised here. We will have a look at what we should be reporting on questions such as the auditing of practices that are clearly of interest. If I can take that on notice it's something we will examine.
Dr WOODRUFF - Thank you, Mr Bolt.
Dr WOODRUFF - To the CEO, your new report in sustainability mechanism did identify seven projects that were greater than low risk and I think you said that five of them were not proceeded with, which we welcome. That is fantastic that is working. Can you tell me about the other two and where are they operating? What country are they operating in? What were the risks that were identified?
Mr BOLT - I will ask the CEO to respond to those matters of details as to which countries. It may be that because we need to do the reconciliation I mentioned earlier between the letter and confidentiality obligations, we will have to give that a moment's thought and come back to you. I will leave it to Ian to indicate whether we can say something now or we will take them on notice.
Mr BROOKSBANK - Thank you, Chair. I do not have that detail in front of me. That is getting to a level of detail that will need to just, as the Chair mentioned, bring out. We should be able to take that on notice and provide some information but again it may be sensitive so we will be cognisant of our ongoing relationships with people and clients et cetera but, yes, I think we can take that on notice.
Dr WOODRUFF - Thank you, can I have that on notice, minister?
Mr DUIGAN - If you are happy to provide it, yes. Thank you.
Dr WOODRUFF - Chair, are you confident then that every international project that Entura's working on has no risks of human rights abuses or environmental justice issues or workers' rights issues?
Mr BOLT - From the perspective of the board, Dr Woodruff, I'm very confident that Entura well understands its obligations. It is important to provide the context here that the services it does provide are also in themselves largely directed towards sustainability objectives and growth objectives, which are important to the countries in which they do business.
As the CO has outlined, what we have is rigorous vetting procedures and that very conscious decisions are made on these questions. I personally have not examined every one of these. That is not my particular role, but I have a lot of confidence in the Entura management, of the CEO's oversight of that management. The CEO of Entura is Tammy Chu. She is very well aware of her responsibilities in this regard and a person of integrity. I would say the same of our CEO and his oversight of Entura's work.
I am as confident as I can be that this is being managed extremely carefully.
Dr WOODRUFF - Does Entura have any involvement in the Frieda River project in Papua New Guinea? That has been a very controversial project.
Mr BOLT - That, I suspect, is something that in the spirit of coming back on that reconciliation between the various countries we have previously reported what is in the annual report or what's on the letter, we will have to take that one on notice as part of that response.
Dr WOODRUFF - Can I take that on notice, minister?
Mr DUIGAN - Are you able to provide that? Yes, thank you.
Dr WOODRUFF - The Hydro's annual report from 2021 lists a $70 000 consultancy for an economic advisor in Kyrgyzstan. What was that contract to provide advice for specifically? Can I take that on notice. I recognise it’s a detailed question.
Mr BOLT - I am not familiar with it personally. I am not sure that the CEO is in a position to answer that question either here. We may be able to get you an answer during the course of this but more likely we will have to come back on that one, assuming that is a doable thing.
Mr BROOKSBANK - Given that this is the scrutiny of the financial year 2023 results and annual report, we don’t have that detail with us. We will have to take that one on notice.
Dr WOODRUFF - I can take that on notice then, minister.
Mr DUIGAN - Happy to do that.
Dr WOODRUFF - In your correspondence to me in January this year, Hydro listed projects that you have been involved with since 2018. One of those is listed as environmental and social impact assessment advise for a project in Indonesia that commenced in 2022. Can you please give me some more details about exactly what that project is and how Entura is involved?
Mr BOLT - Ian, please respond with what we know and what we may otherwise have to come back with.
Mr BROOKSBANK - Apologies, could you repeat the question.
Dr WOODRUFF - There was a project that Hydro commenced in Indonesia in 2022. It was listed as providing environmental and social impact assessment advise. I wanted to know if I can have details about what the project is and how Entura is involved?
Mr BROOKSBANK - Are you able to tell me specifically which project you are talking about.
Dr WOODRUFF - There wasn’t details provided in the letter, it just said environmental and social impact assessment in Indonesia. Is it for a dam, to establish renewable energy, to the government?
Mr BROOKSBANK - I think the project you're referring to is the PT Kayan hydro power project in North Kalimantan, Indonesia. Entura was engaged to deliver a tender design and environmental scope for a proposed major new hydro power project in Indonesia. The project involved the development of the 235-metre-high concrete-faced rock-filled dam, with a 1375 megawatt power station and associated spillway, intake structure, division tunnels and cofferdams.
Work included developing the feasibility design to tender design, suitable to take to market as an EPC contract. The scope included detailed review of the feasibility study, which included significant unaddressed risks, which required moving the location of the project to mitigate those risks. It involved planning and evaluating additional geotechnical design and investigations. It involved review of flat and yield hydrology and review of sediment load. It included seismic hazard assessment including a paleoseismic investigation into a potentially active fault, dam break modelling and consequential assessment of the upstream cofferdam and main dam; tender design of the diversion tunnels and structures, quarry, cofferdams, main dam, spillway, intake waterways and power station; included all civil, mechanical and electrical elements; construction planning and logistics costs estimates; project scheduling;and, finally, preparation of the tender documentation including scope documents, technical specifications, drawings and future tender assessment.
On the environmental scope, which has now been completed and accepted by the government and client the original client was KHN, the organisation I mentioned earlier, Kayan Hydropower Nusantara, I apologise to the Indonesian -
Dr WOODRUFF - I thought you said PT Kayan previously.
Mr BROOKSBANK - Sorry, if I did, that was a mistake. It is -
Dr WOODRUFF - KHN.
Mr BROOKSBANK - Yes, KHN. The original client was KHN. Subsequent follow up work was with Greencorp. Work included preparation of an environmental and social impact assessment and preparation of environmental approvals from the national government. Work was done to the World Bank and International Finance Corporation standard, ensuring robust and thorough assessment. Entura worked closely with Greencorp, which is an Indonesian-based company, and that process was completed in the prior financial year, FY23.
Dr WOODRUFF - That wasn't on your annual report.
Mr BROOKSBANK - Again, as the Chair has mentioned, we will provide a reconciliation of those things, on notice.
Dr WOODRUFF - That is, obviously, a major project. It sounds pretty large from what you have just described.
Mr BROOKSBANK - The project itself is extremely large - 1375 megawatts of capacity in a hydro power station is large by Australian standards - not necessarily large internationally. However, Entura's involvement in that project was for a small part, so it will be a very minor part of a very large project.
Dr WOODRUFF - Another question on overseas work by Entura, chair. On Entura's involvement in the Baleh hydro power project in Sarawak, we understand Entura is contracted to undertake the role of an independent review panel for that work. Can you please explain that role and the status of that work? Are there any other projects as well that Hydro is working on in Sarawak currently?
Mr BOLT - To clarify, that was work in the financial year 2022 23 you're referring to?
Dr WOODRUFF - I'm not sure because of the reporting status of the project, so you have to tell me that.
Mr BOLT - Yes, okay, we will. Is there anything we can provide on that?
Dr WOODRUFF - That's what I'm trying to understand, as well.
Mr BOLT - Quite understood.
Mr BROOKSBANK - Thank you, Chair, we can. Yes, as previously mentioned, we’ve obviously got the project in Indonesia that we just talked about. We are providing a range of professional services to hydropower projects as well as capability training in the Malaysian state of Sarawak. Entura has developed a relationship with Sarawak Energy Berhad, which I'll just shorten to SEB, since 2008. It seeks to develop the state's significant renewable energy resources. SEB is a state-owned electricity generation transmission and distribution business and aims to build its economy on the back of access to clean, affordable electricity.
Entura's work in Sarawak is focused on building local capability in hydro-power development to support the region as it works towards establishing and maintaining large-scale clean energy generation. The work being done by Entura in Sarawak and other counties showcases Tasmania's expertise to the world and reflects Hydro Tasmania's business values and commitments. Active contracts with Sarawak Energy are two: hydro-power advanced training modules and competency frameworks it's an element of Entura's business where it can provide training. It's essentially an RTO so it provides training around hydropower competencies et cetera.
Secondly, there is the Baleh power station and the work with Entura and the review panel. The Baleh project itself is a 1285 megawatt station including a 188-metre-high concrete rock-filled dam in Sarawak, Malaysia. Smec and Norconsult are the owner's engineers for the project and developed the tendered design and supporting services during construction. Entura is engaged by SEB to fill the role of independent review panel to review and evaluate the designs, specifications and construction, including construction methodology and quality assurance, and the adequacy of scheduling operational performance including aspects of safety, especially people's safety of the downstream communities. Entura's role as the independent review panel commenced in March 2019 and its contract extends to the final commissioning of the project, estimated at this stage to be 2027-28.
Dr WOODRUFF - Thank you for that. Once upon a time Hydro had a very close relationship with Power China, even exploring the possibility of a joint venture with them. Can you provide a list of projects you are currently working on that also involve Power China or any one of its many subsidiaries?
Mr BROOKSBANK - In fairness, I'm not across all of the many subsidiaries of Power China but I can tell you that Entura has no assignments in the country of China. We have four clients in Australia that are part-Chinese owned and funded. They are within Pacific Hydro, an Australian organisation which is owned by the State Power Investment Corporation. Pacific Hydro has recently been renamed Pacific Blue. We're working on turbine refurbishment and relief operator training. We're providing technical consultancy services through a panel. We're working with the Clements Gap wind farm system, event data analysis and the Codrington battery energy storage system power system study.
We're working with South Energy and the Frasers Solar Farm based in Victoria, providing construction support. We're working with Goldwind, a Chinese wind developer, at the Coppabella wind farm, NEM base station and we're providing base station case development and at the GWA Gullen Range wind and solar farm. Entura is also doing work for Woolnorth Renewables on an arm's-length consulting agreement which includes earth testing, Bluff Point upgrade, protection upgrades and the Mt Fyans wind farm.
Dr WOODRUFF - I'm not so interested in the ones that are operating in Australia although, of course, they are important. I was thinking of the overseas work. Thank you for that. Hydro also owns subsidiary companies that work internationally such as in India and South Africa. Can you explain the oversight that Hydro has over the pay and conditions of staff working in those companies?
Mr BROOKSBANK - Those organisations you are referring to - and I mentioned earlier that we have an office in India - are actually part of the Entura business.
Dr WOODRUFF - But that's a subsidiary of Hydro so Hydro is responsible.
Mr BROOKSBANK - Yes, I understand fully, I'm just explaining the corporate structure.
Dr WOODRUFF - I see, sorry.
Mr BROOKSBANK - The Indian office for Entura is part of the Entura management structure so all the same conditions, codes of conduct, et cetera, that apply to Entura apply to all the parts of Entura, including in India.
Dr WOODRUFF - And South Africa too?
Mr BROOKSBANK - I don't believe we have people in South Africa. I would need to have that confirmed for me but we don't have an office in South Africa that I know of.
Dr WOODRUFF - Okay. So you're not aware of any workplace issues or safety issues or adverse working conditions for staff in those overseas companies?
Mr BROOKSBANK - No. In fact, I have met with those staff in the Entura office in India virtually - I haven't been to India - and I have to say they're extremely excited and happy to be part of the Entura and Tasmanian team. As to their work conditions, their office looks like one of ours, the policies, procedures and guidelines that apply to them are ours. From everything I have seen they are loving being part of the Tasmanian community and they obviously love cricket as well. Certainly nothing has flowed -
Dr WOODRUFF - Maybe not so happy about that at the moment.
Mr BROOKSBANK - Good point - hopefully they're not watching, but certainly nothing has come through to my office or through the hierarchy that says there is anything but a very engaged workforce in India.
