No details to be revealed on Haughton pipeline cost increase until budget
Mystery surrounds the value of another cost blowout for the Haughton Pipeline project or whether ratepayers will foot the bill again. Read when we will get answers.
Townsville
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Ratepayers will have to wait until Townsville City Council’s budget in late June before knowing if more of their hard-earned dollars are needed to address another cost blowout for the Haughton Pipeline project.
Due to be completed in early 2025, the $274m Haughton Pipeline Stage 2 project celebrated a “significant milestone” with the first of its 28.5km of pipes going into the ground in September 2023.
Responding to a recent question from a constituent seeking an update about the pipeline on social media, Townsville Mayor Troy Thompson said, “it is getting closer, but requires further investment. I have a full update on this soon”.
A Townsville City Council spokeswoman was unable to answer questions about the exact cost of the overrun, or who would be providing the additional funding.
“As with all projects in the current climate, we have seen some potential increases in costs as we move toward completion of the project,” the spokeswoman said.
“Townsville City Council is currently working on its 2024/25 budget, which will be handed down in late June.
“Following the budget adoption by council, we will be able to provide the latest information on the Haughton Pipeline Project Stage Two’s funding.”
In January’s council meeting, it was revealed that there had been delays in significant projects, requiring a $59m cutback in capital expenditure and funding.
The reason for the cutback was delays in delivering the Haughton Pipeline, $14m, and the Lansdown Eco-Industrial Precinct, $36.6m, because of supply chain issues and unavailability of contractors, pushing those funds into the next annual budget.
Providing a Haughton Pipeline project update, the council spokeswoman said good progress was being made, “thanks to great work from our construction partners in recent dryer weather”.
“More than 2km of pipe was laid in April, adding more than 3km so far in May,” she said.
“We’re also proud of the excellent safety record with no incidents reported across the 28.5km site during more than 150,000 hours of labour on the project so far.”
The project is jointly funded by Townsville City Council and the Queensland Government. The investment for Stage 2 was initially costed at $274m, with $195m contributed by the Queensland Government.
Controversy erupted in October 2021 after it was revealed that ratepayers would foot the bill for council’s agreement to cover $79m of the project’s cost.
Former Townsville Mayor Jenny Hill said the council was forced to contribute $79m to the project after a delay in the flow of $195m in federal government funding, preventing the first stage’s resources from rolling straight into stage two.
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