Toowoomba council behind schedule, budget on $270m Cressbrook Dam safety upgrade

Mayor Geoff McDonald is still confident the council can deliver the $270m Cressbrook Dam safety upgrades, despite the project team revealing it was a month behind schedule and millions behind budget.

Toowoomba deputy mayor Rebecca Vonhoff and mayor Geoff McDonald discuss the council's request for $90m from both the state and federal governments to help pay for the Cressbrook Dam safety upgrades.

Toowoomba mayor Geoff McDonald says he still has confidence in the council’s ability to complete the $270m Cressbrook Dam safety upgrades, despite revelations the mammoth project was weeks and millions of dollars behind schedule.

The councillors were briefed on complications to the delivery of the upgrades this week, with the alliance between the Toowoomba Regional Council, contractor Seymour Whyte and firm SMEC unlikely to make its budget for the financial year.

The project needs to be finished by late next year, with fines potentially imposed by the state government if the council can’t deliver it without a good reason.

Mr McDonald is currently lobbying both the state and federal governments to secure two-thirds of the funding (about $180m), warning rates and charges increases and delays to other projects were likely if it failed to secure external help.

Addressing councillors at Tuesday’s ordinary meeting, acting water and waste general manager Jaek Passier said the project was as much as a month behind schedule, citing a range of factors including insurance, worker shortfalls, equipment shortages and a delay to the actual signing of the alliance.

Mr McDonald said the delays highlighted the sheer size and complexity of the project for a local government to carry out.

Cressbrook Dam in 2010

“The size of this project means it’s critically important we cover off on everything, including the three levels of insurance that’s required,” he said.

“We need to make absolutely sure of everything — what we don’t want to do is put greater risk on the community.

“From a confidence (point of view, the update from Mr Passier) increased that for me.”

Mr Passier said difficulties finding appropriate insurance and staff had both forced delays to the massive upgrade.

“We’ve experienced significant staff shortages — managers and engineers have been difficult to both attract and retain, for a number of different reasons,” he said.

“Insurance has been a challenging activity, with only one of the (three) major insurance policies being placed (professional indemnity, contract works and public liability).

“This has been predominantly due to the complexity and risk associated with the works on what is a high-risk and critical asset, being Cressbrook Dam.

“Toowoomba Regional Council is the first local government to commence works of this nature and scale and we are working closely with our governance team to make sure our assets are appropriately insured.”

Mr Passier said further time frame slippage had stemmed from delays to signing the initial alliance contract between Seymour Whyte and SMEC, as well as setbacks in securing equipment.

At the contract signing between the Toowoomba Regional Council, Seymour Whyte and SMEC Australia for the Cressbrook Dam safety upgrade project are (from left) Seymour Whyte COO Steve Lambert, mayor Geoff McDonald and SMEC acting chief executive Kate Drews.

“The contract was anticipated to be awarded in October, and it was not actually executed until December,” he said.

“Council was made aware of these negotiations with the selected party, and it was due to the quality of the bids and the process of finalising the agreement between SMEC and Seymour Whyte.

“The other matter that has caused issues has been the commencement of geotechnical investigation works, which were delayed due to the availability of the equipment (and) agreement of the scope on the required works of the technical review team.

“Works have in fact commenced on-site early last month, however it was approximately four weeks later than what was anticipated.”

As a result, Mr Passier forecast the team was unlikely to spend the $40m budgeted for the project in the current financial year.

However, he backed the model of the alliance to overcome the task of upgrading the Cressbrook Dam.

Cressbrook upgrade ‘out of scope’

The setbacks have been compounded by federal water minister Tanya Plibersek’s office indicating the Commonwealth would not contribute funding towards the project.

The letter, sent by the department of water infrastructure and investment acting branch head Lachlan Simpson to Groom MP Garth Hamilton, indicated the $270m upgrade was “out of scope” of the federal government.

“While funding is available from the Australian Government for new water infrastructure projects, state and territory governments are responsible for the regulation, planning, management and allocation of water resources, including water infrastructure development and maintenance,” he wrote.

“Certain types of water infrastructure projects are out of scope for Australian Government investment – including those for routine maintenance or refurbishment without betterment.”

The creates a new complication for Mr McDonald, who this month launched an advocacy campaign to the upper tiers of government to securing $180m of external support in the upcoming budgets.

But Mr McDonald said the letter hadn’t deterred him, believing the federal government needed to be explained why the project wasn’t “business as usual”.

“We’re trying to explain and educate the government on the project because this isn’t business as usual,” he said.

“It’s not about adding water (right now), but this is about water security, because if this dam were to break, we’d be without water.

“We’re the first of 13 local governments who are doing this and it’s not something local residents should be paying for the whole amount.

“We’re knocking on doors and I can assure you that every minister knows what our number one ask is.”

The council is likely to know by June whether it is successful for a $20m federal grant under emergency management minister Murray Watt’s department, which relates to the widening of the spillway from 20m to 40m.