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🇦🇺 Australia /Energy & Infrastructure

Sunwater chair labels costly dam rebuild 'grossly disproportionate'

From ABC Australia · (2h ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • Sunwater's chair has advised the Queensland government to abandon the $4.4 billion Paradise Dam rebuild project.
  • The board unanimously deemed the project "grossly disproportionate," citing a lack of rigorous technical and financial information supporting the previous government's decision.
  • The dam was partially lowered due to safety concerns in 2019-2021, and a new rebuild plan by the current government has faced significant cost blowouts.

The Queensland government faces a significant decision regarding the future of Paradise Dam, with its largest regional water provider, Sunwater, strongly advising against the costly rebuild.

grossly disproportionate

— Jeff SeeneySunwater chair Jeff Seeney stated the board unanimously agreed the $4.4bn project was 'grossly disproportionate' and should be 'no further considered'.

Sunwater chair Jeff Seeney has formally communicated the board's unanimous decision to Water Minister Ann Leahy, labeling the $4.4 billion project "grossly disproportionate." This strong stance is rooted in the board's assessment that the previous government's decision to rebuild was made without adequate technical and financial backing, even suggesting consultants were tasked with providing evidence after the announcement was already made. This points to a significant lack of due diligence that raises serious questions about the project's viability.

The Paradise Dam has a troubled history, with safety concerns leading to a partial lowering of the dam wall between 2019 and 2021. While initial repair work was undertaken after severe flooding in 2013, subsequent testing in 2023 revealed concrete degradation so severe that Sunwater concluded no amount of repair could fix the existing wall. This has led the current Miles government to commit to building an entirely new wall downstream, a plan that has already seen cost estimates skyrocket to at least $4.4 billion, with further increases not ruled out.

It has since been established that Sunwater tasked consultants to provide an evidence base for the announcement after it was made.

— Jeff SeeneyMr Seeney wrote that 'Further examination of the previous Governments [sic] decision indicates it lacks any rigour or professional credibility.'

Premier David Crisafulli has emphasized that no decision will be made until a detailed business case is presented, dismissing any current commentary on the project's benefits as premature. However, the strong opposition from Sunwater's board, coupled with the immense financial implications and the dam's history, places significant pressure on the government to reconsider its commitment. Local voices, like Bundaberg Mayor Helen Blackburn, are urging the government to follow through on its pledge, highlighting the differing priorities and pressures within the region.

With respect to Sunwater, the business case isn't done. Why anyone could be commenting about the benefit of doing it at this stage, that is far too premature.

— David CrisafulliQueensland Premier David Crisafulli stated that any decision on the dam's future before the business case is released would be premature.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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