New water infrastructure is a step closer with the Morrison-McCormack Government doubling its cash contribution for the Wyangala and Dungowan Dam projects, providing an additional $283.5 million.
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As part of its economic plan for a more secure and resilient Australia, the Liberal and Nationals Government's cash commitment will increase to $242 million for Dungowan Dam, 60 kilometres from Tamworth and $325 million for Wyangala Dam, 40 kilometres from Cowra.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said this new cash investment for the two projects, as part of the 2020-21 Budget, showed how serious the Australian Government was about getting these dams built.
"These dams will increase inland water storage by the equivalent of 1.2 Sydney Harbours and we want to see benefits flowing to local communities as soon as possible," the Deputy Prime Minister said.
"We want to deliver critical water infrastructure projects for rural and regional communities because increased water security supports growth in Australian agriculture, creating new jobs and supporting existing ones as we build greater resilience to drought and floods.
"We know the economic road out of this pandemic relies on funding major infrastructure to support local communities and create jobs and these dam projects will do exactly that.
"Negotiations on the funding agreement for the Dungowan and Wyangala projects are close to being finalised and main construction works will begin after the environmental approvals are in place."
In October 2019, the Australian and New South Wales Governments committed to co-fund the construction of these projects, along with $12 million each towards the development of a detailed $24 million business case for the proposed Mole River Dam.
This new capital grant funding replaces previous loan arrangements agreed with the NSW Government.
Benefits:
- Increase storage capacity by 53% by creating capacity for an additional 650 GL (to 1,218 GL).
- A significant improvement in drought resilience, water security, flood attenuation and water reliability for the Lachlan Valley.
- Maximising local opportunities from the construction of the project.
- Increasing capability to manage high flow / flood events.
- Improve water security for agriculture, for example vegetable and some cereal crops.
