WHAT THE BUSINESS CASE FOUND

Townsville City Council, funded by the State Government, is building a Stage 1 water supply pipeline from the back of Ross River Dam to Sunwater’s Haughton irrigation channel.

Scott Morrison last year announced up to $195 million to “fully fund” Stage 2 of the pipeline, extending it to the Burdekin River at Clare, with work subject to a $5 million business case study, awarded to Jacobs.

The business case, now complete, considered options including building Stage 2 now or in 15 years, finding neither option would improve water security but that there were wider benefits.

It says that in addition to the current 130 megalitres per day capacity from an existing pipeline, Stage 1 will deliver 234Ml/day, while Stage 2 provides for the same total (364ML/ day).

It says 364Ml/day equates to 125,000ML/ year when the city’s current demand is less than 60,000Ml/year.

It says under stage 1 and 2 Townsville will have very high water security for at least 60 years with modelling indicating the pipeline will need to operate 1 in 10 years when demand is 60,000ML, expected by 2045.

It says wider benefits include the council not being reliant on Sunwater’s irrigation channel, that there would be no need to manage the channel’s weeds and the use of herbicide acrolein and that Stage 2 will create 691 jobs.

It notes previous findings that Stage 2 provides Stage 1 savings of about $55 million by avoiding the need to upgrade the Sunwater channel and Haughton pump station.

It finds Stage 2 capital cost, including $55 million in Stage 1 avoided costs, is $225.5 million.

It finds building Stage 2 now, with a $195 million federal contribution, will mean residential bills rise by an average of 8 per cent.