Townsville Bulletin

Uncertaint­y could add to pipeline cost

- TONY RAGGATT

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.

Newspapers in English

Newspapers from Australia