Budget 2018/19 - Funding to flow for new water pipeline

Date published: 26 June 2018

Townsville Mayor Jenny Hill said Council will allocate $158.9 million to building the city’s new water pipeline in the 2018-19 Budget.

“The new water pipeline was Council’s top infrastructure priority and we’re getting it done as quickly as possible, despite the Queensland Government not bringing forward funding for this crucial project,” Cr Hill said.

“Council is absolutely committed to ensuring the new water pipeline is built by December next year.”

Council will contribute $143.9 million in 2018-19, however, the full amount of the State grant will be received over the next three financial years.

Council will receive $15 million in funding from the Queensland Government in 2018-19 before receiving $100 million in each of the following two financial years.

Cr Hill said Council had deliberately structured the work packages on the new water pipeline to ensure local businesses had the best chance to secure work on the project.

“Not only will this new water pipeline guarantee the city’s long-term water security, it will be a huge job generator for local firms and workers,” Cr Hill said.

“Already Council has awarded the pipe tender to Iplex, which has committed to establishing pipe manufacturing in Townsville.

“That decision will create about 50 jobs direct and indirect jobs in advanced manufacturing.

“Council will soon award the first work packages for the pipeline construction, providing another significant boost to the local economy.”

Cr Hill said all money spent on the pipeline would be fully refunded by the Queensland Government.

“Council has made sure the money will be available for the pipeline when it’s needed so there won’t be any delays with this crucial infrastructure project,” Cr Hill said.

“To ensure the funds flow when needed Council has set up a Working Capital Facility with the Queensland Treasury Corporation.

“We will draw down on those funds as needed, and any interest payments will be covered within the Queensland Government’s $225 million contribution to Council’s 3-point water security solution.

“As we get the money from the Queensland Government we will pay down the Working Capital Facility until it is no longer needed in 2020.”

Townsville Water and Waste Committee Chair Cr Paul Jacob said the new pipeline was a key plank of Council’s 3-point water security solution.

“This crucial infrastructure will guarantee the city has water security for decades to come,” Cr Jacob said.

“The community did an amazing job by sticking to water restrictions to get us through a once-in-a-generation drought until the rains came earlier this year.

“Despite receiving a decent wet season, the pipeline is still Council’s number one infrastructure priority because we know that praying for rain isn’t a strategy for water security.”

Council’s 3-point water security solution includes:

  • The new 1.8-metre diameter pipeline
  • A recycled water system for community spaces and industrial use
  • The Community Water Transition Support Package

View Budget 2018/19 page