Federal budget 2024: $600m Paradise Dam rebuild still years away

Treasurer Jim Chalmers’ budget has outlined the deferral of $600m in funds for a major dam project to beyond 2028, signalling construction is years away. But Premier Steven Miles has other ideas.

A major rebuild of a crucial dam near Bundaberg can forge ahead sooner than 2028 according to Premier Steven Miles amid concerns over the federal government’s funding commitment to Paradise Dam.

Treasurer Jim Chalmers’ third budget, released on Tuesday, outlined the deferral of $550m of $600m in funds for the project “beyond 2027-28” - signalling construction on the premier stored water source for Queensland’s food bowl was still years away.

But Water Minister Glenn Butcher has assured the region’s growers the federal government’s funds remain on the table for the $1.2bn project.

A letter from federal Water Minister Tanya Plibersek to Mr Butcher, seen by the Courier-Mail, confirmed the Albanese government remained committed to the project.

Queensland Minister for Water Glenn Butcher assured growers that federal funds were still on the table. Picture: Tertius Pickard

“The release of the remaining $550m will be contingent upon the completion of a business case that justifies delivery of the project and a positive evaluation by Infrastructure Australia,” the letter stated.

It is understood Sunwater’s detailed business case on the dam wall rebuild will be ready by late 2025.

The document will then need to be submitted to Infrastructure Australia, before the federal government decides whether the allocated funding should be released.

The project will need to go through another suite of environmental approvals, but it’s understood this process will be quicker due to existing studies and data.

Ultimately, it will be years until growers in the Bundaberg region will see construction begin on Paradise Dam after labouring through safety concerns and uncertainty of the dam’s future.

LNP candidate for Bundaberg Bree Watson, who is also the chief executive of Bundaberg Fruit and Vegetable Growers, said delays on Paradise Dam hurt confidence in the sector and a shortage of water could end up hitting shoppers at the checkout.

The Paradise Dam near Bundaberg.

The region is Australia’s largest producer of macadamia nuts, with the Bundaberg area also producing a significant portion of the nation’s tomatoes, avocadoes, and sweet potatoes among other staple crops.

Mr Miles, speaking in Bundaberg, asserted Queensland could negotiate to bring those funds forward if the process shaped up sooner than 2027-28 and construction could start sooner.

“It’ll be a matter of negotiating with the Australian government how those funds are shaped over the forward estimates and beyond. But they have committed to us that those funds remain committed and available,” he said.

The state government in January 2024 revealed the Paradise Dam wall would be demolished and rebuilt over safety concerns, in a major decision likely to add cost and delay the troublesome $1.2bn project.

Dam operator Sunwater said while the existing dam was safer at the lower supply level following the completion of essential works, the existing wall had too many issues to be repaired and safe when it returned to full capacity.