Extent of cost blowout of Haughton Pipeline remains unclear

Townsville City Council accepts there is a cost blowout for its major water project, as discussions happen between three levels of government.

Councillor Kurt Rehbein and Water Minister Glenn Butcher at Ross River Dam look at the site last year, where pipes went into the ground for the Haughton Pipeline Stage 2. Picture: Leighton Smith.

Townsville City Council has committed $45m this financial year for the second stage of the Haughton Pipeline, but would not provide the specific detail on how much inflation has blown out the costs.

And as discussions about the project happen between three tiers of government, it is unclear by how much the Townsville ratepayer is going to be burdened.

Acting Mayor Paul Jacob said the “council didn’t drop the ball on this project” and that it currently committed $79m towards the project, which he said was significant to the city’s water security.

Like with major projects across the country inflation, cost of material and time frames all were having an impact.

When asked if there were any further delays to the project’s delivery, Mr Jacob said, “I believe now we have got to this point, we’re laying pipes for number two, we’re laying a certain amount of pipes per day, it’s all go ahead.”

Townsville City Council Acting Mayor Paul Jacob sells the $868.1m budget at a media conference, during which the Haughton Pipeline was discussed. Picture: Evan Morgan

Mr Jacob addressed media about the $868.1m budget, of which $588.6m would be spent on roads, water, wastewater networks and waste management.

“We’ve prioritised maintaining our extensive road network, spanning more than the distance between Cairns and Brisbane, and maintenance and renewal of 2700km of water pipes and more than 1400km of wastewater pipes across the city,” he said.

And the council was impacted by labour, materials, electricity and fuel, he said.

A concept image for the Burdekin River pump station for Haughton Pipeline Stage 2. Picture: TCC.

Recently Mayor Troy Thompson, currently on leave, said more investment would be needed towards the project, while Herbert MP Phillip Thompson raised concerns and publicly sought details on updated costs and the time frame.

In October 2021 the council announced the project would cost more than expected, with the state funded project increasing from $195m to $274m.

Ratepayers would be expected to pay the $79m difference.

Following the special council budget meeting, a Townsville City Council spokeswoman said the project has seen “significant cost escalations” during construction.

“The project has mostly been impacted by inflation and is forecast to exceed the current budget and schedule requirements.

“Council is working with its state and federal partners to agree on a suitable funding solution to ensure we maintain our commitment of low-cost water security to the community, of Townsville.

“Discussions continue between council, state and federal governments.”

Originally published as Extent of cost blowout of Haughton Pipeline remains unclear