Delivering city resilience through Australia’s water investment wave

AsCOP30 draws to a close, global conversations centre on how cities can become more resilient to climate, environmental and social challenges. The COP30 Action Agenda highlights adaptation, nature-based solutions, inclusive planning and innovative partnerships as essential for resilient urban communities.

Australia’s water sector is uniquely positioned to contribute to these goals. The current wave of water investment, through initiatives such as the National Water Grid and Sydney Water’s advanced recycling projects, can be leveraged to strengthen city resilience nationwide.

Federal and state investments are already reshaping infrastructure, elevating service delivery and generating lasting community benefits. Recent budget allocations and strategic reviews suggest this growth trajectory will continue well into the next decade. Prioritising investment in water infrastructure can deliver lasting value for both cities and communities.

The scale of opportunity - and risk

Australia’s water utilities face unprecedented capital expenditure driven by aging infrastructure, climate variability, population growth and rising customer expectations. Yet, as with any large-scale investment, there is a risk of value leakage.

City resilience demands deliberate planning and strategic alignment. Experience from other sectors shows that without a resilience lens, capital programmes can suffer from inefficiencies, misaligned procurement, and underwhelming outcomes. In the UK, for example, local authorities managing highways maintenance contracts, often valued in the billions and spanning decades, have struggled to attract sufficient market interest due to poor procurement design and lack of engagement. Similarly, Iceland’s major infrastructure push required international expertise, but without careful planning, risked leaving no local legacy.

Early and holistic planning for urban resilience

To deliver effectively at scale, utilities must begin with strong foundations. Procurement readiness is shaping successful capital investment programmes. Critical activities occur before procurement begins, demonstrating the importance of early planning, stakeholder alignment and market engagement.

Embedding resilience in planning means:

• Defining strategic objectives that include climate adaptation and urban sustainability.
• Building internal capabilities and governance to anticipate and respond to shocks and stresses.
• Engaging the market early for innovative, sustainable solutions.
• Designing contracts that are flexible, adaptive and deliver positive community outcomes.

This readiness not only improves procurement outcomes but also strengthens governance, reduces risk and builds stakeholder confidence.

Moreover, early planning enables utilities to better anticipate regulatory changes, environmental constraints and evolving community expectations. It also allows for more meaningful engagement with suppliers, who can contribute ideas and innovations that shape the final scope and delivery model. This collaborative approach fosters trust and transparency- key for long-term success.

Delivering long-term community benefits

The goal of Australia’s water investment wave is not only infrastructure, but lasting community and city impact. Efficient delivery must be paired with a commitment to resilience, sustainability and continuous improvement.

Utilities can achieve this by:

• Embedding social, environmental and resilience criteria into procurement.
• Tracking benefits beyond financial metrics, including climate adaptation and urban health.
• Engaging in partnerships that extend beyond project completion, supporting city-wide resilience initiatives.

For example, contracts can include provisions for local employment, Indigenous engagement, environmental stewardship and climate adaptation. These elements enhance community value and strengthen the social licence to operate - an increasingly important COP30 theme. 

A resilient and adaptive organisational culture is essential. Teams must be equipped to respond to change, collaborate across disciplines and innovate under pressure. Leadership that champions continuous improvement and fosters a mindset of shared responsibility is critical for driving progress towards sustainable, climate-resilient cities – aligning with COP30’s emphasis on inclusive governance.

Choosing the right delivery model is also key. Commercial structures should align incentives, distribute risk and support long-term partnerships. Contracts that are flexible, outcome-focused and grounded in mutual accountability are more likely to deliver enduring benefits enabling innovative financing.

As seen in Iceland, when community engagement and legacy are prioritised, the benefits extend far beyond the assets delivered. Local businesses gain capabilities, communities feel ownership and the infrastructure itself becomes a catalyst for broader development. This approach supports COP30’s focus on community empowerment as pathways to resilience.

Finally, value realisation must be a deliberate focus. Utilities should track benefits from concept to operation, conduct post-implementation reviews, and capture lessons learned - so investments deliver sustained benefits and help shape future programmes.

Lessons from global infrastructure programmes

Case study 1: UK Highways maintenance

Over 65 authorities re-procuring contracts in a short period created a seller’s market where only a handful of Tier 1 contractors could deliver at scale. The high cost of bidding (often exceeding AUD $1 million) meant contractors were highly selective. 

For Australia, this underscores the importance of early and respectful market engagement to build trust and attract top-tier partners. Transparent evaluation criteria and flexible contracts can encourage innovation and collaboration, while industry-wide coordination helps mitigate capacity constraints and improve outcomes. These lessons align with COP30’s emphasis on inclusive partnerships and resilient infrastructure planning, reminding Australian utilities to design procurement processes that foster competition and deliver lasting value.

Case study 2: Iceland’s infrastructure push

Iceland faced the dual challenge of attracting international expertise and ensuring projects left a meaningful local legacy. By promoting opportunities globally and embedding local engagement into procurement criteria, Iceland secured high-quality bids and long-term community benefits.

The Australian water sector can learn from Iceland’s approach by strategically marketing opportunities to expand the pool of bidders and embedding community outcomes into contracts for lasting impact. Ongoing contract management is vital to uphold commitments and strengthen local legacy, reflecting COP30’s call for stewardship and accountability in infrastructure delivery.

Case study 3: Middle East Giga Projects

Despite significant investment, many Middle Eastern projects suffer from rigid procurement processes, unclear requirements and poor bidder engagement. These factors contribute to inflated risk premiums and reduced competition.

For Australia, the lesson is clear: collaborative procurement and clear, flexible contracts are essential for attracting quality bids and reducing risk. Confidence in the procurement process is crucial for market participation, echoing COP30’s focus on transparency and inclusive governance.

Standing out in a crowded market

With billions in investment on the horizon, Australia’s water utilities must position themselves as clients of choice. 

By focusing on procurement readiness, market engagement and integrated planning - with resilience at the core - utilities can navigate the investment wave with confidence. This will allow every dollar spent to deliver maximum impact.

In doing so, they will not only meet the technical and financial demands but also fulfil a deeper mission: to deliver water infrastructure that strengthens cities, supports sustainability and creates lasting community benefit.

To find out more, contact the authors: Lindsey Brown, Australian Market Leader, Water – GHD and Stuart Cairns, Partner – Bird & Bird.