Desalination plant at Kurnell costing taxpayers $534,246 a day as it sits idle while water levels remain high
THE desalination plant in Kurnell is costing taxpayers a whopping $195 million a year just to have the facility on standby in case water levels decrease.
THE desalination plant has sat idle for two years, costing taxpayers $390 million.
And with recent rain there is no prospect of the “white elephant” infrastructure being used for years.
The plant in Kurnell, which is jointly owned by a Canadian pension fund and an Australian fund management company, was turned off in mid-2012 as Sydney’s dams surged to nearly 100 per cent full.
Water levels have remained high ever since and as a result the desalination plant, which is designed to convert sea water into freshwater in times of drought, has never been switched back on.
It is costing taxpayers an incredible $195 million a year — or $534,246 a day — in “service fees” just to have the plant on standby.
The payments to the plant’s owners are set by the Independent Pricing and Regulatory Tribunal under a deal struck when the plant was privatised on a 50-year, $2.3bn lease in 2012.
Asked to clarify what the plant is currently doing, NSW Water Minister Kevin Humphries said: “Not a lot. To switch it on would cost about another $50 million. It is a very expensive piece of infrastructure.”
Under the current arrangements, the desalination plant would be turned back on again once Sydney’s dam levels drop to 70 per cent.
If we have a reasonably sized deluge, all the water that we’ve paid for from the desal plant will spill over and be wasted
- Greens MP John Kaye
Last week’s weather, which saw up to 30cm of rain in four days across parts of the city, sent the level of Warragamba Dam to 84.3 per cent full.
Sources said it will probably be years before the dam levels drop to 70 per cent and the desalination plant is switched on again.
Greens MP John Kaye has described the desalination plant as a “white elephant” and wants the threshold at which the plant is switched on again reduced.
He would like to see it only turned on when dam levels reach about 40 per cent.
“If the dams fall below 70 per cent and the desalination plant goes on, they fill up very quickly,” he said.
“Then if we have a reasonably sized deluge, all the water that we’ve paid for from the desal plant will spill over and be wasted.”
FORMER NSW PREMIER BARRY O'FARRELL SAYS PLANT NOT NECESSARY
Mr Kaye said manufacturing water from the desalination plant costs about four times as much as it does to manufacture water at Warragamba treatment plant.
Mr Humphries confirmed that the 70 per cent threshold is being reviewed.
It is understood this will entail a significant fee payable to the desalination plant’s owners to compensate them for the loss of income from switching the desalination plant on less.
“These operating rules are being reviewed as part of an overhaul of the Metropolitan Water Plan, which will be complete in mid-2015,” Mr Humphries said.
Originally published as Desalination plant at Kurnell costing taxpayers $534,246 a day as it sits idle while water levels remain high
Where to find nearest election day sausage sizzle
For many people across NSW, the best part about voting will be the cake or sausage sandwich they get. Find the best place to go near you.
Delays ease after police operation on M4 Motorway
A police operation forced the closure of all lanes on the M4 Motorway on Friday morning, all lanes have now reopened.
Will Sydney be all built up with no place to go?
A former premier once said NSW could “have it all”, but the Productivity Commissioner warns the state can’t have it all at once, James O’Doherty writes.