TasWater: Cost, timeline of relocating Macquarie Point plant still unknown, CEO says

The cost of moving the TasWater wastewater treatment plant from Macquarie Point will not be known until the new year and the timeline remains uncertain, a parliamentary committee has heard.

FIRST LOOK: New designs of what Hobart's new AFL stadium at Macquarie Point could look like. Images supplied by AFL

The cost of moving the TasWater wastewater treatment plant from Macquarie Point will not be known until the new year and the timeline remains uncertain, a parliamentary committee has heard.

The plant is being moved to Selfs Point to make way for the proposed $710m Macquarie Point stadium, which must be operational by December 2028.

The AFL has the right to terminate the Tasmanian team’s licence if that deadline is not met.

TasWater CEO George Theo told Government Business Enterprise Committee hearings on Tuesday that work on removing the plant is expected to begin next year and be completed in 2025.

“We’re still committed to that time frame,” he said.

“But things might change over the next few months … that might go out into 2026.

“It’s a hot construction market and we’re out there competing for resources with everyone across the country.

Macquarie Point redevelopment. Macquarie Point Wastewater Treatment Plant

“So we are mindful that despite best efforts and best endeavours, depending on what comes back in terms of the capacity and availability of companies to be able to do the work in the time frame that we have could be jeopardised.

“I just wanted to signal that, but our intention is to work really hard to have it turned off by the end of 2025.”

Moving the plant was estimated to cost $140m in 2017, although the final figure was going to be higher, Mr Theo said.

“We’re in the final stages of agreeing on a price. We’re still in negotiations. What I can tell you though, is that the original figure that was communicated back in 2017 was based on prices back in 2017 and the scope as known back in 2017,” he said.

TasWater CEO George Theo. Picture: Supplied

“Now we know that any quote that you got in 2017 is not going to be the same to deliver the work in 2023 and beyond 2024.

“We’re literally in the final stages of negotiating that price outcome and we’ll be in a position once approvals have been sought from our board and also the respective boards of our delivery partners … we’ll be in a position to make that known early in the new year.”

TasWater was capable of meeting its share of any cost blowout of the plant relocation, Mr Theo said.

“We are planning to definitely be in a position to be able to meet our contributions not only to the work that needs to be done at Macquarie Point, but also to our 170 other treatment plants around the state that we have over the next few years,” he said.