Risks identified as Cairns Regional Council votes to pump $27.6m into drinking water project

There’s been a major shake-up of the Cairns Regional Council’s $215m water security project, after risks were identified with the original approach. Find out what’s changed here.

A major shake-up of the Cairns Regional Council’s $215m water security plans has resulted in councillors voting to streamline the project, committing $27.6m for pre-construction works.

The previously endorsed procurement strategy for the project that is promised to future-proof Cairns’ water supply included two separate packages – one for the raw water intake, treatment plant and associated infrastructure, and a second for the reticulation network components.

But a review of the project identified “significant risks” in bringing the two discrete work packages together – especially during the commissioning phase.

Council said that by combing the two packages, a sole contractor would be in charge of the projects to ensure all work was delivered on time.

“Cairns Water Security Stage 1 is the single largest capital works projects ever undertaken by Council, so it is only appropriate that we review and evaluate our processes to ensure the best possible outcome,” Mayor Bob Manning said.

“A reassessment of the previous strategy concluded that the best way to mitigate the risks was to move to a single procurement package.

“Council will also ensure strong local participation through the requirements of the procurement process in delivering this critical piece of infrastructure.”

Minutes of the discussion of the project showed the vote was unanimous, with only deputy mayor Cr Terry James absent.

Cairns Regional Council voted on the Cairns Water Supply Project on October 5, 2022.

The $215m project is critical to the future of Cairns as based on existing supply capacity within the water supply schemeand future population growth projections, the city risks a drinking water shortfall by 2026.

The project would deliver a new drinking water supply from the Mulgrave River at Gordonvale, supplementing existing supplies from Copperlode Falls Dam, Behana Creek and the council’s smaller rural intakes.

Behana Gorge, south of Gordonvale, is the secondary source of drinking water for the Cairns Regional Council local government area. Fresh rain water is captured at the top of the gorge, and piped using gravity to a pumping station at the bottom of the gorge. Picture: Brendan Radke

Council on Wednesday endorsed outlaying $27.6 million for costs incurred to date, as well as pre-construction costs, which include activities such as the procuring of the project team and consultancies, reference design development and technical risk reduction activities, commercial and legal advice, and all activities during the ECI stage, including a nominal sum for the unsuccessful proponent to cover their costs of applying for the process.

Cairns Mayor Bob Manning. Picture: Brendan Radke

Council has invited expressions of interest (EOI) to deliver works.

Two contractors will be short-listed from the EOI process to undertake design development and submit a proposal for the final design and construction stage, with the successful proposal expected to be identified by late 2023.

Originally published as Risks identified as Cairns Regional Council votes to pump $27.6m into drinking water project