Australian Government confirms funding for Haughton Pipeline Stage 2
29 July 2019
The
Australian Government will fully deliver on its commitment to provide up
to $195 million for the construction of Stage 2 of Townsville's
Haughton
Pipeline project.
Deputy Prime Minister and Minister for Infrastructure, Transport and
Regional Development Michael McCormack said construction of Stage 1 of
the pipeline was nearing completion and the Government is committed to
delivering the Stage 2 pipeline to support Townsville's access to a
reliable
water supply well into the future.
“The Government's first priority is to invest in
Townsville by
supporting construction of Stage 2 of the Haughton Pipeline which will
create hundreds of
jobs and provide greater agricultural benefits,” Mr
McCormack said.
“Reliable
water is something the region needs and deserves, which is why
we are investing in this job-creating project for Townsville.”
Minister for Population, Cities and Urban Infrastructure Alan Tudge said
it was another example of the Morrison Government working with the
Townsville Council and the
Queensland Government to deliver on the
Townsville City Deal.
“The successful collaboration across the three levels of Government
continues and Townsville is reaping the benefits,” Mr Tudge said.
“It is expected that more than 600 construction jobs will flow from this
project – that is a great result for Townsville.”
Federal Member for Dawson George Christensen said the Government
commitment of $195 million 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,” Mr
Christensen said.
“Supporting the Townsville Council to deliver the Stage 2 pipeline means
the agricultural channel would 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.”
Federal Member for Herbert Phillip Thompson said Stage 2 would create an
average of 691 new jobs over its three-year construction, along with a
further 30 new full-time ongoing positions.
“A key benefit of Stage 2 is that it would provide single ownership for
Townsville City Council of infrastructure between Burdekin River and
Ross River and would allow the council to make all decisions with no
reliance on a third party for its water supply,” Mr Thompson said.
“Water projects such as Stage 2 will provide jobs for Townsville,
enhancing business opportunities and potentially increasing investment,
while securing the city's long-term water supply.”
Investment in Townsville's water security has been driven by the
Townsville Water Security Taskforce with Townsville Council, established
under the Townsville City Deal.
The Stage 2
business case, funded by the Australian Government, will
provide the project steering committee with the economic and engineering
information that Townsville City Council need to construct the pipeline.
Townsville City Council will be able to realise the full savings that
have been identified with concurrent construction of stage 1 and 2 of
the pipeline.
These savings, in addition to the Australian Government's $195 million
commitment and the delivery methods and risk management refined by
Townsville City Council for stage 1, are critical factors in getting the
construction of Stage 2 to proceed.
Infrastructure Australia will also be providing independent advice on
the business case of the proposed project.
The Townsville City Deal—signed in 2016—is a 15-year agreement to
transform the city's economy and central business district. The
Australian Government has committed more than $380 million to Townsville
through the
City Deal.
The full business case can be found at
citydeals.infrastructure.gov.au/townsville.
--ENDS--
Source: Australian Government - www.minister.infrastructure.gov.au
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