The NSW Government will not proceed with the Wyangala Dam Wall Raising Project.
Minister for Water Rose Jackson said both the project’s Final Business Case and an extensive independent review by Infrastructure NSW have recommended not raising the dam wall because it doesn’t stack up financially or environmentally.
The Mayor of Lachlan Shire Council, Councillor John Medcalf OAM, has joined other Mayors and communities of Central NSW to express his disappointment in the announcement by the NSW State Government that the raising of the wall at Wyangala Dam will not proceed.
“The Lachlan Valley has the most insecure water supply of any catchment in NSW. At the same time, flooding in the Lachlan Valley has been extreme over the past decade,” he explained.
“Climatologists are predicting more severe droughts and storms due to climate change. Therefore, increased storage to improve water security for the Lachlan will enhance outcomes for our communities and provide protection from drought and flood.
“We have known for some time that more storage is needed to secure towns and other productive water users in Central NSW. I support recommendations made in the NSW Government’s Business Case for raising the wall of Wyangala Dam that an expansion of the regional water grid is required.
“However, I am concerned that the Business Case did not fully consider the benefit of avoiding the cost of closing towns down due to water shortfall in their cost benefit analysis.
“The assumption that towns ‘will not run out of water’ is an oversight which is at odds with the lived experience of many water users in our shire.
“The region needs to continue to work with the NSW Government to ensure the full costs to our communities are considered during development of options to improve water security for the Lachlan.” Mr Medcalf OAM concluded.
The NSW Government and Minister Jackson said the project would not go ahead because “of the billions of dollars in construction costs and the potential catastrophic environmental impacts.”
Minister Jackson said the former Coalition Government had wasted “five years and $74 million dollars trying to justify a decision that was never going to stack up.”
“Robust investigations show that while raising the wall by 10 metres is technically feasible, it could cause substantial and irreversible environmental impacts,” she stated.
“Hydrological modelling also found raising the wall, with a five-metre flood mitigation zone, was also likely to have devasting impacts on the internationally significant downstream environment, resulting in excessive biodiversity offset costs.
“The other major issue is the billions of dollars to build the dam wall. We have a responsibility to taxpayers to only fund infrastructure projects that provide maximum bang for the buck and, in this case, the capital costs are too high, and the benefits are too low.
“While Wyangala is not viable, I recognise the challenges of water security, reliability and flood mitigation for Lachlan communities do not go away. We know there’s a drought knocking on our door threatening the water security of towns across NSW which is why we are reviewing our strategies as a priority.
“The former government wasted time and money on business cases instead of undertaking any real drought preparedness work. The NSW Government is now taking action because we know the region needs a multi-faceted approach to protect against uncertainties and balance the competing needs of our environment, towns, and farmers.”
The NSW Government will be seeking feedback on how it plans to address these issues in the draft Lachlan Regional Water Strategy, which will go on public exhibition before the end of September.
It will allow people to have their say on water security and will put forward a shortlist of proposed actions to help support local communities, so they’re in the strongest position to manage a more variable climate over the coming decades.
Minister Jackson said the decisions are made about the future of water in the Lachlan region will be based on evidence and state-of-the-art climate modelling.
“We want to support economic growth and balance different water needs, ensuring there’s the right amount of water for the right purpose at the right time,” she advised. “I encourage everyone across the Lachlan region to provide their input when the draft strategy goes on exhibition, because feedback from councils, industry and the community will play a vital role in helping us determine the best way forward.”