Unanswered questions
POW!’s questions to Council about the legal and financial risks to Council of investing in Emu Swamp Dam of February 2021, March 2021, June 2021 and August 2021 remain unanswered. Despite the seriousness and relevance of these questions, no commitment to addressing these issues has been made by SDRC, and no community information sessions have been scheduled to discuss these important matters.
Feb 2021: What’s the impact going to be on our rates?
Surely the most important question for all ratepayers in the district. Despite SDRC committing to the project in June 2020 this fundamental question remains unanswered some 20 months later.
March 2021: How will Council satisfy itself about the risk of substantial cost overruns as the project progresses, both during the construction and the operational stages? How will Council protect itself (and therefore ratepayers) from the key risks outlined in GBIP’s own Information Memorandum?
Perhaps these questions were just way too complicated. Or a little too close to the mark? No doubt some of the $130,000 spent on legal fees might be trying to protect Council from the substantial risks in the project. Well, we can at least hope so, though the lack of answers doesn’t give much reassurance.
June 2021: What’s the value of SDRC’s 450 ML water allocation?
Remember that GBIP’s initial expectation was that they would pay NOTHING for this 450 ML. The people of the Southern Downs are generous indeed, but even they don’t want to give their urban water to the dam for nothing. SDRC can’t sell a Council asset without a valuation. And SDRC still doesn’t know what its water allocation is worth.
August 2021: How will SDRC ensure rate payers are protected from construction cost blow outs like those happening on the Waimea Community Dam in New Zealand?
The initial cost estimate for Waimea was NZ$75.9m (similar to ESD’s $84m). Earlier this week Cherie Sivignon reported in Stuff that the “cost had blown out again – this time by $20 million – taking the forecast cost to complete up to $185m. And there could be more increases ahead. Those additional costs look likely to fall on ratepayers ...”
Just like Waimea, ESD’s projected costs are already more than double the original estimate, rumoured to be over $200m, and yet the Council still doesn’t see anything to worry about. And that worries me. Big time.