Up to $600 million for five companies called in to unblock water and sewer lines for new SA housing

Five construction companies are being paid up to $600 million each to expand the water and sewerage networks blocking new SA housing developments.

Premier Peter Malinauskas surveys pipes at Virginia being stockpiled for the new works. Picture: Supplied

Five construction companies are being paid up to $600 million each to tackle a bottleneck in new water and sewerage networks around Adelaide that are blocking new housing developments.

Housing and Urban Development Minister Nick Champion announced the contractors would work on a $3.3 billion capital program with SA Water over the next four years that includes $1.5 billion to upgrade pipes, pump stations and tanks.

Early work to install water and sewer networks targeting Adelaide’s northern growth in Angle Vale, Riverlea and Roseworthy has now started in a bid to unlock a potential 40,000 new allotments across the state.

Housing and Urban Development Minister Nick Champion visits Virginia to survey new infrastructure work for housing. Picture: Supplied

The news follows SA Water in June telling The Advertiser it was tankering sewage away from northern Adelaide suburbs not connected to mains so housing development could progress, a temporary measure “until the delivery of wastewater network upgrades”.

Mr Champion said the agreements are with companies Fulton Hogan Utilities, John Holland and Guidera O’Conner as a joint venture and McConnell Dowell and Diona as another joint venture.

Fulton Hogan Utilities and McConnell Dowell and Diona have begun working on establishing alignments for underground trunk water and sewer mains along Andrews Road in Munno Para and Sunnydale Ave in Gawler East.

Mr Champion said McConnell Dowell and Diona have also stockpiled more than 500 large pipes in Virginia ready to be installed in coming months, adding that the construction work would create more local jobs.

The news comes as Master Builders yesterday delivered a revised housing growth forecast showing 58,500 new homes are likely to be started in South Australia over the next five years – about 25,000 short of a target set in the National Housing Accord.

However, its September industry forecast said the government’s Housing Roadmap was encouraging, and the “$1.5 billion investment in water and other infrastructure earmarked for the four years to 2028 will also be crucial to getting more new homes onto the production line”.

Premier Peter Malinauskas has also warned water bills would rise to fix the problem.

The successful contractors also will be involved in upgrades to SA Water’s Bolivar Wastewater Treatment Plant to ensure it can cope with future growth and in replacing large sections of the Morgan to Whyalla pipeline.

“Central to delivering SA Water’s record capital program is having a skilled workforce, and leveraging the vast experience the construction industry possesses,” Mr Champion said.

“Investing in our state’s water infrastructure will create hundreds of jobs that are fundamental to deliver the services that will enable growth and prosperity of our state.”

Other minor framework agreements under the SA Water capital program have been awarded with up to $262 million over the four-year program, for water main upgrades, sewer infrastructure rehabilitation and security like fencing and CCTV.

Civil Contractors Federation SA chief executive officer Rebecca Pickering described the projects as “a once-in-a-generation opportunity for the civil sector to build the vital housing infrastructure that will underpin the housing supply we so desperately need”.