Uncertainty could add to pipeline cost
POTENTIAL savings of up to $55 million by developing stages one and two of the city’s new water pipeline concurrently look to be at risk because of uncertainty over federal funding arrangements.
A Townsville City Council spokesman confirmed yesterday it was proceeding with tenders for Stage 1 elements that have been identified as not being required if the two stages were done concurrently.
But it seems the council can change the tender arrangements if funding is secured in time.
A spokesman for the Water for Townsville Action Group said time was running out for a decision to be made to secure the savings. “Townsville voters need to know what’s happening before the election,” the spokesman said.
The council is developing the 36.5km Stage 1 Haughton Pipeline Duplication with funding of up to $215 million from the State Government.
Federally, the LNP and Labor have committed $200 million for Stage 2, which will extend the pipeline from the Haughton irrigation channel to Clare, but the LNP has made the project subject to a business case which is still under way.
The council has now called tenders for the supply and construction of a pump station on the Haughton channel, for the supply of pumps and substations to power them.
A council spokesman said the tenders were for the pump station and pumps at the Haughton Channel which were designed to suit Stage 1.
“The Federal Government’s funding commitment for Stage 2 in the budget is dependent on the results of the business case,” he said. “As a result, council is proceeding with the tenders for the pump station and pumps for Stage 1 because we have made a commitment to the community to ensure there are no unnecessary delays to this crucial project.
“If funding is secured and approved through the business case – or the Opposition’s commitment to fund the project without one – council will utilise provisions in the tender or contract to proceed with a different process.”
Prime Minister Scott Morrison announced in November last year that the Stage 2 project was subject to the findings of a business case.
The final report of the Townsville Water Security Taskforce says GHD estimated the nominal capital cost of building the stages concurrently would be $55 million less than building it in two stages.