Wyangala Dam wall raising project scrapped after $74 million spent

More than $74 million was spent on plans to raise the Wyangala Dam wall as Labor announces it will ditch the upgrade.

More than $74 million of taxpayer money was spent on multiple business cases by the former NSW government in an attempt to justify the raising of Wyangala Dam wall.

The former Coalition government commissioned two business cases from 2020 to 2023 even after the original business case found project costs were expected to blow out by 600 per cent to $4.6 billion. The original project estimate was $650 million.

The Daily Telegraph can now reveal the Minns Labor government has officially scrapped the project with no money allocated for it in the budget.

On top of the $4.6 billion price tag for raising the dam wall, taxpayers would also have had to fork out $940 million in biodiversity offsets.

The former Coalition government committed to raising the Wyangala Dam wall near the town of Cowra by 10 metres, which would have increased its capacity by more than 50 per cent.

The Minns Labor government will not raise the Wyangala Dam wall. Picture: NCA NewsWire / Gary Ramage

The raising of the wall was designed to boost water security and mitigate future flooding in the region after 235 gigalitres went over the wall in November last year.

Findings from the 2023 business case were received by the government in June, which found the findings were similar to the previously commissioned 2020 business case for the project.

Both business cases found in addition to cost blow outs, raising the dam wall did not provide value for money while having significant environmental impacts and as a result was unlikely to receive regulatory approvals.

NSW Water Minister Rose Jackson acknowledged while water security in the area was, the government would be looking at other approaches.

“The former government wasted 5 years and $74 million dollars trying to justify a decision that was never going to stack up financially or environmentally,” she said.

NSW Water Minister Rose Jackson acknowledged while water security in the area was, the government would be looking at other approaches. Picture: Adam Yip

Premier Chris Minns had indicated prior to the March election plans to raise the wall would not go ahead, saying he did not believe it would stop flooding.

“We’re not committing to Wyangala Dam wall’s increase because we’re not convinced it will solve the problem but that doesn’t mean you don’t do anything,” Mr Minns said in November last year.

Opposition Water spokeswoman Steph Cooke said the decision to scrap the wall extension was a devastating blow to the local community, of which she is also the local member.

“This decision is incredibly short sighted – how many floods and droughts will it take for this project to be taken seriously,” she said.

“This project has more than 80 per cent support from people along the Lachlan River by communities and landholders.

“For this project not to receive funding represents a devastating blow for those in the Central West especially those along the Lachlan with increased need for water security and flood mitigation.”