Funds for Haughton Pipeline Stage 2 confirmed
JULY 20 2019: $195 million in funding for the construction of Stage 2 of Townsville's Haughton Pipeline project is locked in.
Deputy PrimeMinister and Minister for Infrastructure, Transport and Regional DevelopmentMichael McCormack said construction of Stage 1 of the pipeline was nearingcompletion and the Government is committed to delivering the Stage 2 pipelineto support Townsville’s access to a reliable water supply well into the future.
This commitment from the Morrison Liberal National Government towards the capital costs to deliver Stage 1 and Stage 2 concurrently, will save money.
We have been taking the time to talk to community leaders about the findings of the business case and discuss the next steps and we recognise Stage 2 of the pipeline has strong community support.
Supporting the Townsville Council to deliver the Stage 2 pipeline means the agricultural channel will not be needed for urban supply and this channel capacity can be made available to irrigators. The estimated increase in value of ongoing agricultural output is $3 million per year.
As the Deputy Prime Minister Michael McCormack has confirmed, this will create hundreds of jobs and provide greater agricultural benefits.
“Reliable water is something the region needs and deserves, which is why we are investing in this job-creating project for Townsville,” the Deputy Prime Minister said.
Minister forPopulation, Cities and Urban Infrastructure Alan Tudge said it was anotherexample of the Morrison Government working with the Townsville Council and theQueensland Government to deliver on the Townsville City Deal.
“The successfulcollaboration across the three levels of Government continues and Townsville isreaping the benefits,” Mr Tudge said.
“It is expectedthat more than 600 construction jobs will flow from this project – that is agreat result for Townsville.”
Federal Member forHerbert Phillip Thompson said Stage 2 would create an average of 691 new jobsover its three-year construction, along with a further 30 new full-time ongoingpositions.
“A key benefit ofStage 2 is that it would provide single ownership for Townsville City Councilof infrastructure between Burdekin River and Ross River and would allow thecouncil to make all decisions with no reliance on a third party for its watersupply,” Mr Thompson said.
“Water projects suchas Stage 2 will provide jobs for Townsville, enhancing business opportunitiesand potentially increasing investment, while securing the city’s long-termwater supply.”
Investment inTownsville’s water security has been driven by the Townsville Water SecurityTaskforce with Townsville Council, established under the Townsville City Deal.
The Stage 2business case, funded by the Australian Government, will provide the projectsteering committee with the economic and engineering information that TownsvilleCity Council need to construct the pipeline. Townsville CityCouncil will be able to realise the full savings that have been identified withconcurrent construction of stage 1 and 2 of the pipeline.
These savings, inaddition to the Australian Government’s $195 million commitment and thedelivery methods and risk management refined by Townsville City Council forstage 1, are critical factors in getting the construction of Stage 2 toproceed.
InfrastructureAustralia will also be providing independent advice on the business case of theproposed project.
The Townsville CityDeal – signed in 2016 – is a 15-year agreement to transform the city’s economyand central business district. The Australian Government has committed morethan $380 million to Townsville through the City Deal.
The full businesscase can be found at https://citydeals.infrastructure.gov.au/townsville