Council concerned over impacts of $203m dam upgrades

THE council says funding the full cost of a mandatory $203 million upgrade of the region’s dam spillways could hurt the organisation’s credit rating.

Cressbrook Dam. Picture by Cathy Finch

THE Toowoomba Regional Council is concerned it will not receive help from the State Government for a mandatory $203 million upgrade of the region's dams.

The issue was raised at the council's August ordinary meeting, where water and waste general manager Damian Platts said the TRC was looking at further borrowings to potentially cover the cost of the upgrades to the spillways and walls at Cooby and Cressbrook Dams.

Mr Platts said the council was required by the State Government to ensure the upgrades were completed within five years.

"The responsibility to upgrade those dam spillways in accordance with the guidelines is a non-negotiable," he said.

"We are expected by the regulator to upgrade those spillways - the projects will happen, it's a matter of who is paying for it.

"TRC has committed to have them completed in 2024-25.

"We have been talking with the Queensland Treasury Corporation about the funding of that and I have brought some materials to the TRC executive team that we discussed, but that is in the nature of loans."

The council held a meeting with Natural Resources Minister Anthony Lynham last week, which it said did not offer clear solutions to the funding problem.

Water and waste chair Cr Rebecca Vonhoff said if the State or Federal Governments did not provide financial assistance, the cost of the projects would severely hamper the TRC's 10-year capital works program.

"The extent of this work is estimated to cost up to $203 million which would be a significant impost on the council that places a strain on Council's financial resources," she said.

"In order to address this matter, we held a meeting last Thursday (27 August) with the Queensland Natural Resources, Mines and Energy Minister, Anthony Lynham, to discuss the matter further and obtain clarification on the work required.

"As a result of that meeting, we don't have confidence that state funding will be forthcoming, and many other local governments are likely to find themselves in the same situation.

"Under the current requirements Cooby Dam requires a spillway width increase from 69 metres to 100 metres and a dam wall height level increase by 5.9 metres.

"Cressbrook Dam requires a spillway width increase from 20.3 metres to 65.0 metres and a dam wall height increase by 2.4 metres.

"The council's full funding of the works could be expected to have a detrimental impact on the council's 10-year capital works program and credit rating as determined by Queensland Treasury Corporation."