RWA analysis of the W2S pipeline

There will be no surprises when I tell you that Council was at best lukewarm about the Warwick to Stanthorpe (W2S) pipeline. 

It’s worried about the costs, although at $95 million compared to Emu Swamp Dam’s $540 million it’s hard to see why.  Council’s 15% buy-in to Emu Swamp Dam would be $81 million, so asking for funding for the pipeline amounts to pretty much the same thing.

In terms of running costs, the annual cost to ratepayers of the Toowoomba to Warwick pipeline has been capped at $305,000 for the first 10 years, under a generous funding arrangement with the Queensland Government.  There’s no reason a similar deal couldn’t be reached for the W2S pipeline.

By way of comparison, as of November 2021 the estimate for Council’s 580ML allocation in Emu Swamp Dam was $498,017 per annum in running costs.  However as this is based on a construction cost of $125 million, it is more likely that the current actual running cost could be around $1 million per year.

Council is also worried about the pipeline being an “urban-only water supply option.”  As readers of my last blog would know, this is actually Council’s sole role when it comes to its legal obligations as a water provider.  While Council can and should support local industry, it cannot do so where it would mean breaching its legal obligations as an urban water provider. 

The key findings of the RWA analysis of the pipeline is that

it will provide the Stanthorpe region with a secure urban water supply during severe droughts – while the option is not economically or financially positive it is the only option identified that fully addresses Stanthorpe’s urban water security risk.

To be clear: Emu Swamp Dam does not address Stanthorpe’s drought risk.  Modelling shows it would have been empty in the last drought, and Council is well aware that the Department of Water has said Emu Swamp Dam does not eliminate the need for carting from Warwick (see the November 2020 presentation to Council here). 

The option proposes using existing or refurbished pipes between Leslie Dam and Connolly Dam, with an added 40km of pipeline to the Mt Marlay Water Treatment Plant at Stanthorpe.  It can supply Stanthorpe from a range of water sources including Leslie Dam and Connolly Dam.

The RWA noted the positive impacts of the proposed pipeline which apart from fully addressing Stanthorpe’s urban water risk in drought, also include “increased employment and economic prosperity for the local community.” 

So why wouldn’t Council be enthusiastic about the pipeline?  I’ll leave that one alone.

24 September 2023