Auditor-General Andrew Blaskett says Northern Water project has no fixed cost estimate or timeline

SA’s spending watchdog says the state government’s outback Northern Water project has no fixed cost estimate or timeline – and must be balanced with $20bn in other major projects.

South Australia’s spending watchdog says the state government’s flagship Northern Water project lacks cost and timeline details – and must be balanced with nearly $20bn in other major infrastructure projects.

Auditor-General Andrew Blaskett said the new Women’s and Children’s Hospital, Torrens to Darlington and Hydrogen Jobs Plan will collectively cost the state $19.2bn between now and 2031.

Mr Blaskett, whose independent agency reviews all public sector spending, listed Northern Water as a fourth “substantial financial undertaking” – but said a dollar figure could not be attached.

“The Northern Water project, which would include a desalination plant and more than 600 km of water transfer pipeline, does not have a fixed estimated cost or timeline at this early stage,” he said in documents tabled in parliament.

He said there were risks involved with delivering each of the projects “relating to their timelines and costs”, and additional risks associated with delivering several significant projects at the same time.

A business case, released by Infrastructure SA in February, reported the Northern Water project was likely to cost upwards of $5bn and completion of stage one was targeted for 2028.

Auditor General Andrew Blaskett. Picture: state government

Infrastructure Minister Tom Koutsantonis. Picture: Kelly Barnes

The government is not due to make a final decision about whether the project will go ahead until early 2026.

The Advertiser on Monday revealed the Office of Northern Water Delivery, quietly formed in July to oversee the project, has been plunged into turmoil after it was stripped of key responsibilities. The changes followed a $200,000 review of the project conducted by MBB Group, which the government said was hired following the consultancy’s “exemplary performance as Transaction Adviser to DIT on the River Torrens to Darlington Project”.

The agency’s acting chief executive, Matt Hardy, resigned last week, telling staff “the role I came here to do has changed” and “it no longer makes much sense for me to continue being involved”.

Opposition infrastructure spokesman Ben Hood. Picture: Facebook

Opposition infrastructure spokesman Ben Hood said the government was “keeping South Australians high and dry when it comes to Northern Water”.

“It needs to come clean about why the changes were made, why it commissioned a $200,000 tax payer funded report and the appropriateness of the company who undertook it,” he said.

“Even the Auditor-General is waving red flags about the fact the project still does not have an estimated cost or timeline, despite its critical role in the production of green steel and hydrogen.”

Infrastructure Minister Tom Koutsantonis hit back, accusing the Liberals of having shown no interest in the project.

“I welcome Ben Hood’s belated interest in Northern Water, a project which if approved has the potential to deliver enormous prosperity to South Australia’s regions,” he said.

“The company he is so quick to disparage was appointed by the former Liberal government to oversee procurement for the Department of Infrastructure and Transport projects.”

Originally published as Auditor-General Andrew Blaskett says Northern Water project has no fixed cost estimate or timeline