Changes to Western Australia's Water Corporation procurement processes could drive benefits for Aboriginal businesses from the state government's investment in water and wastewater projects.
The changes, which begin on 1 July, introduce stronger incentives for bidders to exceed minimum targets, with Aboriginal employment, training, and cultural capability given greater weighting in tender evaluations.
Bidders on contracts over $5 million who have committed to Aboriginal employment targets must also ensure 10 per cent of the total subcontracted value flows to Aboriginal businesses.
Employment targets will also increase over time where contracts involve ongoing programs of work to support sustained participation by Aboriginal businesses and their people.
Water Corporation, which voluntarily aligns to the WA Government's four per cent Aboriginal procurement target, awarded 55 contracts to Aboriginal businesses in 2024-25, representing 6.3 per cent of all contracts above $50,000. It is on track to eclipse that number this financial year, with 50 contracts over $50,000 awarded to Aboriginal businesses to April, totalling $45.6 million.
Major projects are driving the outcomes, including at the Alkimos Seawater Desalination Plant where 27 Aboriginal businesses have been engaged and more than $28 million in contracts awarded to date.
WA Aboriginal Affairs and Water Minister Don Punch said Water Corporation continues to "set a strong example of delivering real economic opportunities for Aboriginal businesses and communities" across WA.
"It is encouraging to see performance exceed Aboriginal Procurement Policy targets, with Water Corporation on track for record participation this financial year," he said.
"These changes will open the door for more Aboriginal businesses to share in Western Australia's record water infrastructure investment."
Mr Punch said that through increasing subcontracting requirements and investing $2.7 billion, the WA government is creating "lasting jobs, stronger businesses, and genuine economic opportunities" for Aboriginal communities.
Future opportunities are expected to increase with a record $2.7 billion to be invested in new water and wastewater infrastructure in 2026-2027.
