Watercare releases 2024/2025 Annual Report

Major infrastructure milestones, a brush with drought and the transition to become a financially independent water utility are among the highlights and challenges outlined in Watercare’s latest Annual Report.

The report, which was published online today outlines Watercare’s key achievements and performance between 1 July 2024 and 30 June 2025.

Read the report

Watercare chief executive Jamie Sinclair says the year will go down in Watercare’s history books as one of most significant years of change.

“The move to become financially separate from Auckland Council is game-changing in terms of our ability to borrow sufficient money to fund our infrastructure programme and get on and deliver for Tāmaki Makaurau.

“A huge amount of work went into gearing up for financial separation, including securing a strong credit rating and undertaking New Zealand’s largest corporate debt capital raise. It means we can deliver our ambitious $13.8 billion infrastructure programme over the next 10 years, while continuing to provide safe drinking water and wastewater services to 1.7 million Aucklanders.”

The year also saw the delivery of several major infrastructure upgrades.

“Earlier this year, we were excited to have the southern section of our Central Interceptor tunnel go into service, and soon after that we completed tunnelling on the project. This project will significantly reduce overflows to Auckland’s waterways when the northern section and its connecting infrastructure is commissioned.

“We also completed the new 15.5-kilometre Huia 1 watermain after six years of construction, and delivered it $30m under budget. This large-diameter pipe replaces its ageing predecessor and improves security of supply for central and western suburbs.”

The weather presented challenges, with the extended dry weather earlier in the year prompting the company to activate its Drought Management Plan.

“Dam levels were getting uncomfortably low in March and pushed us into the ‘preparing for drought’ zone in our Drought Management Plan. But then the weather did a complete u-turn and we ended the financial year with dams almost full,” Sinclair says. “It’s a reminder of our reliance on the natural environment, and the impact of weather and extreme events.”

Some of the highlights for 2024/2025

• Financial separation and capital raise: To prepare for financial separation from Auckland Council, undertook New Zealand’s largest corporate debt capital raise – securing $3.4 billion of committed bank debt facilities – to allow it to maintain, renew and further expand this asset base.

• Capital delivery: Delivered $1 billion worth of infrastructure improvements.

• Operations: Maintained a high level of compliance with drinking water quality assurance rules.

• Customer: Kept service charges affordable, ensuring the average Auckland household spent less than 1.5% of its income on water services.

• Customer: Achieved a customer net satisfaction score of +55, exceeding the target of +45.

“The nature of our operations and infrastructure programmes means we impact communities and the environment,” Sinclair says. “Looking after our people, our communities and our environment is what drives our kaimahi (staff) and our focus going forward is on open engagement and delivering outcomes faster and in a more coordinated way.”