EPG in Mega Projects, Joint Ventures, and Alliances 177 Water Corporation Water Corporation is a state-owned company with the purpose of providing the sustainable management of water services to Western Australia in order to make it a great place to live and invest. Their services, projects, and activities span an area of 2.5 million square kilometers, about one-third of the Australian conti- nent, making it one of the world's broadest operating areas for this industry. To ensure enough water for all, there is a need to address the challenges of Australia's drying climate and increasing population; an additional challenge is minimizing the environmental impact by using less water. Their strategic plan, Water Forever, provides a portfolio of options to manage demand and supply balance to 2060 by reducing water use by 25 percent, increasing wastewater re- cycling to 60 percent, and developing new sources. Water Forever has become a catalyst for change in how the company provides sustainable water services across the nation. 15 The corporation has a five-year-plan capital program of $1 billion Austra- lian. A significant component of the program is being delivered using various forms of relationship contracts. Water Corporation has used alliance contracts as one of its capital, opera- tional, and maintenance delivery methods since the mid-1990s. The company defines governance as "a framework of rules, relationships, systems and pro- cesses by which authority is exercised and controlled in alliances. It encom- passes the mechanisms by which alliances, and those in control, are held to account." It articulates the objectives, power, functions, obligations, limitations, and relationships of the alliance. 16 A Capital Alliance Governance Manual, constructed in accordance with their corporate governance framework, contains the following: Rules. The alliance agreement provides the primary rules within which the alliance will operate. Relationships. Relationships are both internal (lead team, management team, nonowner participants, Water Corporation) and external (regu- lators, community, shareholder, contractors, and suppliers), and the alliance will be required to manage them. American Management Association www.amanet.org