Coast’s green plant stalls as council holds off on going to market
The Gold Coast’s biggest infrastructure project is being delayed as a councillor warns against giving “a blank cheque” to build it. See why
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The Gold Coast’s biggest infrastructure project is being delayed as a councillor warns against writing “a blank cheque” to build the $1.6bn Advanced Recovery Resource Centre (ARRC).
The green plant, which will boast at least eight facilities at Staplyton, is regarded as the solution to stopping gate fees being introduced at rubbish tips — and more important than HOTA upgrades or Greenheart.
Yet, at full council on Tuesday councillors are expected to back a recommendation to not go ahead with “expressions for interest”, and instead continue their investigations.
At a waste committee meeting, Robina-based councillor Dan Doran was the only councillor to speak in opposition, supporting the project’s aim but warning “it’s not a blank cheque”.
“The ARRC is a significant state-of-the-art project that can solve our future waste problems. I have enormous respect and confidence in the team leading this project within City Administration,” Mr Doran told the Bulletin.
“My point during committee was that with a project of this scale there is always the potential for cost overruns and council’s support for the project shouldn’t be considered a blank cheque — I want to be kept in the loop and I want to ensure we get value for ratepayer money.”
Asked if he was satisfied with community consultation, he said public meetings on big projects need to be undertaken with as much information presented as possible, including the cost of a project and how you intend to pay for it.
“My personal view is that the best-informed decisions are made when you have all the facts,” he said.
Mr Doran said he wanted councillors to be informed of the progress, either good and bad, and for the City to continue to engage with the community in a respectful manner and discuss why this project was important.
Officers said recent market developments had led the City to make the “difficult decision to terminate the EOI”.
“While this is unfortunate, it is the City’s belief that these actions will ultimately serve to optimise deliverability by further derisking the ARRC resulting in an improved outcome for the City and its community,” officers said.
Councillor Mark Hammel, one of ARRC’s biggest supporters, has welcomed the delay.
“I actually think this is a great thing. It has forced the market and our city to stop, take a breath and critically review this project and the path forward,” he told councillors.
“While I am the most bullish person to see this thing built, delays must be accepted. There are a lot of these projects being proposed around Australia now, as we have heard proponents to design, deliver and operate these facilities is a small global market.
“Demonstrating to that market we are the most mature and attractive project in Australia to go with is important. Pausing the EOI has assisted with this.”
A report to council said the ARRC project team had attended 13 live and online community events and meetings and directly engaged with an estimated 1000 people. The estimated reach of the entire engagement program exceeded one million people.
“All eight proposed ARRC facilities have received strong community endorsement of 83-94 per cent supportive and somewhat supportive sentiment,” the report said.
“Almost 9 out of 10 people (89 per cent) agree the ARRC will be effective at increasing recycling and reducing landfill. More than 9 out of 10 (92 per cent) people said they support the City developing the ARRC.”
WHAT COUNCIL SAYS RATEPAYERS MUST KNOW ABOUT ARRC:
* It includes a Materials Recovery Facility, an Organics Processing Facility, a Construction and Demolition Waste Recycling Facility, a Residual Waste to Energy Facility and Hydrogen Production and Refuelling Facility. Other components will see a Sewage Treatment Plant, Recycled Water Treatment Plant and Community Education Centre.
* It is projected to increase recycling rates and generate energy from leftover waste that cannot be recycled, diverting up to 97 per cent of material from landfill, while improving environmental outcomes and boosting economic cost.
* It will be significantly less to build and operate than the cost of transporting waste to landfills outside of the Coast, which is the only other option.
* A Financial Investment Decision will be presented to Council for consideration at the conclusion of the feasibility study stage.
* The alternative of using third-party landfills would cost ratepayers about $3.4bn over 30 years.
* The savings by implementing the ARRC project over the next 30 years are estimated to be approximately $1.8bn.
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