PIPELINE BLOWOUT

State funding delay puts pressure on council

TOWNSVILLE City Council may need a multimillion- dollar loan to meet its timeline for completion of the Haughton pipeline duplication project. The State Government has committed $ 200 million for a second pipeline from the Burdekin to Ross River Dam. However, the pledge was for two equal payments in the 2019- 20 and 2020- 21 financial years.

The council is committed to finishing the project by the end of 2019.

While the council said it was still negotiating the funding timeline with the Government, Natural Resources, Mines and Energy Minister Dr Anthony Lynham said its schedule was clear.

If the council has to borrow money it would add to the cost of the project and if it does not then its timeline could be affected.

THE STATE Government claims Townsville City Council may have to borrow millions of dollars to complete the Haughton pipeline duplication on time.

The Palaszczuk Government allocated $ 200 million for the pipeline’s construction, which would be spread across two equal payments to council in the 2019- 20 and 2020- 21 financial years.

However, the council has already awarded major engineering contracts for the build and is committed to finishing the duplication by the end of 2019 – 18 months earlier than the payment plan.

Townsville Water and Waste general manager Scott Moorhead in January said negotiations with the Government over the funding timeline were “continuing”.

But Natural Resources, Mines and Energy Minister Dr Anthony Lynham said the Government had made the timing of the funding clear to council “from the start”.

“Our commitment is substantial and budgeted for over four years,” he said.

Dr Lynham said the council would receive payments at the agreed times and was free to borrow to cover the cost in the short term if necessary.

“Council can borrow money to manage its budget and payments, with the certainty that it will receive state payments at agreed timings,” he said.

Dr Lynham said the State Government was not involved in the plan to complete the project in 2019.

“Council‘ s plans and commitments are its own,” he said.

The Bulletin understands the council could borrow the funds from a private lender or apply for a loan from Queensland Treasury.

As with usual borrowing practices, council would have to pay interest that, depending on the loan amount, could cost millions of dollars.

Mayor Jenny Hill said the council was committed to ensuring money would be available as needed to complete the pipeline by the end of next year.

“Council is lobbying the State Government to bring forward the funding for the pipeline,” she said.

“This will be one of the biggest job- creating projects in Townsville in many years and we believe the State Government understands the value in fast- tracking this infrastructure.”

Cr Hill said the recent increase in the Ross River Dam level would not affect the council’s schedule.

“Despite the recent rain, the pipeline is still council’s top infrastructure priority to ensure the city has long- term water security,” she said.

In addition to the $ 200 million for the pipeline, the State Government also allocated $ 25 million for water demand measures in Townsville.

In January a Queensland Treasury spokesman said $ 10 million had already been transferred to the council for a water transition package, with a further $ 15 million to be allocated next financial year.