Fears of $100m blowout to Cairns Water Security Stage 1 project as city’s water demand scrutinised
Cairns Regional Council’s water demand management is under the watchful eye of the state government as the council prepares to ask for more cash to fund a project of vital importance.
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Cairns Regional Council’s water demand management is under close scrutiny by the state government with fears it could blow out by up to $86m.
Several councillors are confident tenders for the council’s Water Security Stage 1 project will come in at least 40 per cent above original estimates — for a $215m project, that’s an increase of $86m.
According to sources, councillors and council executives discussed the project’s cost with state Water Minister Glenn Butcher during the regional sitting of parliament.
At that meeting, and another with representatives from Cairns and Far North Environment Centre, the city’s high water use was also raised.
Cairns MP Michael Healy said he would advocate for more funding if needed, but he expected the state government would be asking some hard questions of the council.
In 2022, the council secured a $215m funding commitment from state and federal governments, but Mr Butcher then warned the state government would not be contributing more.
In July that year, Cairns Mayor Bob Manning said the city’s ratepayers should not have to foot the bill for the project.
According to the council, Cairns residents consume an average of 280 litres per day; a report commissioned by CAFNEC in 2022 stated the state’s average consumption was 195 litres per person in 2021.
In addition to the $215m secured from state and federal governments, the council allocated $24m in its 2023-24 budget to progress the project through early contractor involvement.
The council expects to confirm the successful tender by the end of the year.
Council CEO Mica Martin said the unsuccessful party would be awarded a nominal sum as a degree of compensation for resources dedicated to the ECI process – a method used to encourage “engagement from high-quality contractors”.
Ms Martin said further expenditure on the project would be subject to future budget deliberations.
“Council has had an active demand management strategy with an associated suite of actions and initiatives since 2006. The impact of council’s demand management approach is significant, delivering a 38 per cent reduction in water usage per capita in Cairns from 2006 to 2021,” Ms Martin said.
According to the council’s own water demand strategy document for 2016 to 2025, its strategy would be reviewed and updated “typically on an annual basis”.
It has not been updated since endorsement in 2015.
Water minister Glenn Butcher said the government was encouraging all councils to be conscious about water consumption.
“It’s no secret that global supply-chain and workforce challenges are impacting infrastructure projects. CRC are currently finalising the detailed business case, and the Queensland government looks forward to reviewing the DBC when it is complete,” Mr Butcher said.
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Originally published as Fears of $100m blowout to Cairns Water Security Stage 1 project as city’s water demand scrutinised
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