Community
18 January, 2024
$325.5m water works
A PROJECT to ensure Cairns doesn’t run out of drinking water has blown out to almost $500 million with the regional council asking the federal and state governments for a further $250m for the region’s largest infrastructure project.
Last month the council awarded the $325.5m design and construction of the $472m Cairns Water Security Stage 1 (CWSS1) Project to John Holland Queensland.
The cost has blown out due to inflation, rising material and labour expenses.
In 2022 the state and federal governments guaranteed $215m for the project.
The design and construct contract is the major component of the project’s total capital cost of $472m, which includes costs already incurred or budgeted by the council, such as land acquisition and development of related business cases, and allowing for project risk contingencies.
CWSS1 will draw water from the Mulgrave River at Gordonvale, and the existing Behana Creek supply, to be processed at a new water treatment plant before being delivered into the existing water reticulation network for supply to households and businesses throughout the region.
Mayor Terry James said the total capital cost was indicative of inflationary pressures caused by rising cost of living, skills shortages and scarcity of key materials.
“We are certainly not alone. The cost of projects at both state and federal level have increased substantially,” he said.
“Cairns Water Security Stage 1 is a must for the Cairns community. Without it, we will face a potential drinking water shortage by 2026.
Cr James said the CWSS1 project was needed to service the growing population of Cairns, which had more than tripled since the region’s main water supply, Copperlode Falls Dam, was built in 1976.
“Given the unprecedented flooding impacts of ex-Tropical Cyclone Jasper, I call on the federal and state governments to provide Cairns with significant disaster relief by increasing their CWSS1 project contribution to $236m each.
At the last council meeting of the year Cr Amy Eden asked for an explanation about the $122m discrepancy between the design-and-construct cost of about $325m and the original project budget of $447m.
Council acting director of infrastructure and assets Gary Everson said the $122m difference was due to other costs incurred by the council, including council’s own time, project management and any other contingencies.
