Water project shake-up

Council commits $27.6m for pre-construction works

A MAJOR shake-up of the Cairns Regional Council’s $215m water security plans has resulted in councillors voting to streamline the project, committing $27.6m for pre-construction works.

The previously endorsed procurement strategy for the project that is promised to future-proof Cairns’ water supply included two separate packages – one for the raw water intake, treatment plant and associated infrastructure, and a second for the reticulation network components.

But a review of the project identified “significant risks” in bringing the two discrete work packages together – especially during the commissioning phase.

Council said that by combing the two packages, a sole contractor would be in charge of the projects to ensure all work in relation to the scheme was delivered on time.

“Cairns Water Security Stage 1 is the single largest capital works projects ever undertaken by Council, so it is only appropriate that we review and evaluate our processes to ensure the best possible outcome,” Mayor Bob Manning said.

“A reassessment of the previous strategy concluded that the best way to mitigate the risks was to move to a single procurement package.

“Council will also ensure strong local participation through the requirements of the procurement process in delivering this critical piece of infrastructure.”

Minutes of the discussion of the project showed the vote was unanimous, with only deputy mayor Cr Terry James absent.

The $215m project is critical to the future of Cairns as based on existing supply capacity within the water supply scheme and future population growth projections, the city risks a drinking water shortfall by 2026.

The project would deliver a new drinking water supply from the Mulgrave River at Gordonvale, supplementing existing supplies from Copperlode Falls Dam, Behana Creek and the council’s smaller rural intakes.

Council on Wednesday endorsed outlaying $27.6m for costs incurred to date, as well as pre-construction costs.

These include activities such as the procuring of the project team and consultancies, reference design development and technical risk reduction activities, commercial and legal advice, and all activities during the ECI (early contractor involvement) stage, including a nominal sum for the unsuccessful proponent to cover their costs of applying for the process.

Council has invited expressions of interest (EOI) to deliver works.

Two contractors will be short-listed from the EOI process to undertake design development and submit a complete proposal for the final design and construction stage of the project, with the successful proposal expected to be identified by Council before late 2023.