Separate timelines were agreed for the transition schemes (Emerald, Eton, St George and Theodore) and the investigation schemes (Bundaberg, Burdekin-Haughton, Mareeba-Dimbulah and Lower Mary).
The process was developed after each scheme submitted business proposals to government for ownership and management of the irrigation channels at the end of 2014.
As a result of investigations during 2017, Bundaberg and Lower Mary boards withdrew from the LMA process, while Burdekin-Haughton and Mareeba-Dimbulah submitted revised business proposals to government. Transition schemes continued negotiations with government.
Progress to each step is subject to the continuing support for local management by scheme customers.
Further information is available from the project team.
Transition schemes timeline
| Key date | Activity | Description |
| October 2016 | Offer from Government | Government provides Transition boards with a formal offer, identifying the proposed separation payment, assets to transfer, and key terms for any final transfer. |
| Nov 2016-Jan 2017 | Review of offer | Transition board undertakes preliminary assessment of viability of local management based on the offer, re-assesses the status of the scheme against the initial business proposal and engages customers in relation to the offer. |
| By 31 January 2017 | Decision to proceed | Based on the offer, the Transition board must advise Government if it wishes to continue with the LMA process. This is not a final commitment to move to local management, but an acknowledgement that there is still a realistic prospect of customer support for LMA based on the offer. |
| By October 2017 | Further due diligence | Further reviews and assessments by consultants and the transition boards to determine viability of local management including: • detailed legal review • engineering assessment (to update the review from the previous stage) • updated financial model • updated business plan. |
| By March 2018 | Negotiation and signed transfer agreement | If the Transition board is satisfied with the outcome of the further due diligence, the board, on behalf of the scheme customers, will negotiate the final terms of the transfer agreement with the State. Based on this, a transfer agreement will be signed, setting out the terms of the transfer. The agreement will be subject to sufficient support from customers. |
| By March 2018 | Offer document | Based on the due diligence, an offer document. The offer document will set out the findings of the due diligence, the terms of the transfer agreement signed, and the Board’s intention for how it would run the scheme under local management. The document will be sent to all scheme customers. Customers will be asked whether they support the move to local management and whether they wish to become a shareholder or member of the new local management entity. |
| March-September 2018 | Preparation for transfer | If sufficient customers support the local management proposal and elect to become members/shareholders, then the transfer agreement will be activated. The Transition board will then prepare for the final transfer. This will include developing the necessary systems (e.g. financial, administrative etc.) to take over operations. |
| Mid 2018 | Transfer | Transfer processes will differ for each scheme but the transfer is likely to involve: • scheme assets and separation payment being transferred into the transition company shortly before the transfer date • shares or membership being issued to customers • the government will cease to hold shares or membership in the company. At this time, the scheme assets will be held by an entity that is wholly owned and controlled by scheme customers. |
Investigation schemes timeline
| Key date | Activity | Description |
| October 2016 (completed) | Feedback on business proposal | Government provides the relevant Investigation board with a response to its 2014 business proposal and description of the changes that will be required for the scheme to be considered for a move to local management. |
| Nov 2017 to 31 Aug 2018 | Further due diligence | Investigation board consults customers on government response and further reviews and assessments by consultants. Investigation boards to determine viability of local management, including: • engineering assessment (to update the review from the previous stage) • revisiting approach to management and operation of the scheme • updating the financial model and related projections. Based on this, the board will prepare an updated business proposal. |
| October/November 2017 | Customer consultation | The Investigation board consults with customers in relation to the revised business proposal and assesses customer support for local management. |
| By 31 December 2017 | Business proposal submitted to government | If supported by customers the business proposal is finalised and submitted to Government. |