After a thorough and rigorous Final Business Case (FBC), the NSW Government has decided to pause plans to replace Cobar’s oldest water supply pipeline due to substantial cost escalations.
Strengthening water security for the region remains a top priority, the NSW Government will focus on the $49 million construction of new pump stations at Hermidale and Nyngan, set to commence mid-year.
These critical upgrades are a top priority to safeguard Cobar’s town water supply, as the aging pumps are in urgent need of replacement to prevent a catastrophic system failure and ensure long-term water reliability.
The NSW Government has an obligation to taxpayers in a tough economic climate to be extra vigilant about investments. Preliminary estimates to replace the pipeline have increased to over $300 million due to rising construction costs.
Following this finding, the NSW Government extensively explored other funding options. However, with no viable budget, the investment decision must be deferred.
Cobar is one of the few towns in NSW without its own water source, relying on two pipelines to transfer water 130km from the Nyngan weir pool to households, businesses and the mining industry.
The newer pipeline, built in 1983, remains in good condition with no evidence of leaks and is expected to continue servicing the town for more than a decade.
The older pipeline, built in 1964, was thoroughly assessed in the FBC to meet increased demand from the mining industry. It will continue to operate with ongoing maintenance and repairs.
While the replacement of the older pipelines is on hold, the NSW Government remains committed to Cobar’s long-term water security and will continue working on sustainable solutions for the region.
As part of this ongoing work, the Commonwealth and NSW Governments are jointly funding the new pump stations, with $26.25 million from the Australian Government’s National Water Grid Fund and $22.75 million from the NSW Government.
The $2.8 million Final Business Case was also delivered by the Australian Government’s National Water Grid Fund ($1 million) and the NSW Government ($1.8 million).
Greg Winchester, Executive Director of Infrastructure Projects at the Department of Climate Change, Energy, the Environment and Water said:
“I know the community will be disappointed that we are not progressing with the pipeline project right now.
“We have worked hard over the past year to look at different funding pathways to find a way forward but, at this stage, we have no other choice but to hit pause.
“The good news is work on the final business case is complete, so the pipeline project could be revisited down the track.
“Water security will not be jeopardised. This pipeline will remain operational and will continue to be maintained by Cobar Water Board alongside its other water supply pipeline that shows zero signs of leakage and is expected to continue to supply safe and secure water for more than a decade.
“The NSW Government will continue to work closely with the Member for Barwon Roy Butler, Cobar Shire Council, Bogan Shire Council and the Cobar Water Board as we get on with the job of building the $49 million high-priority pump stations at Hermidale and Nyngan.
“Early works have commenced, and we are expecting shovels in the ground by mid-year with completion of the pump stations on track for the end of 2026 – safeguarding Cobar’s pumping infrastructure for at least half a century.”
Press Release (NSW Department of Climate Change, Energy, the Environment and Water – DCCEEW).