“Dungowan Dam likely dead in the water after Infrastructure Australia deems proposal low priority” reported The Guardian on Wednesday.  “Infrastructure Australia review slams case for building $1.3 billion dam near Tamworth, NSW” reported the ABC, stating “an independent review of the business case for a billion-dollar dam in north-west NSW has slammed the case for building it as "poorly substantiated".

Infrastructure Australia deemed the project a low priority as "it is a significant infrastructure intervention with costs that far outweigh the benefits". 

Dungowan Dam's estimated costs have more than doubled.

Just like Emu Swamp Dam!

Dungowan Dam's costs now outweigh its stated benefits, with a negative BCR (benefit cost ratio).

Just like Emu Swamp Dam!

Infrastructure Australia’s Business Case Evaluation Summary for the Dungowan dam and pipeline proposal states (my emphasis):

A long list of 56 options, including non-infrastructure options ... were considered, and 6 of these were identified as addressing the service need and progressed for more detailed assessment. However, it appears that options were progressed primarily on their ability to increase the storage capacity of the region, whereas the service need is primarily to reduce water security risk. This is an important distinction as non-infrastructure solutions may reduce water security risk without increasing storage capacity. Non-infrastructure measures such as water pricing reform, water use efficiency and demand management measures were included in the draft Namoi Regional Water Strategy.  In our view, the benefits of a package of these measures could significantly exceed the costs of the problem and provide a more efficient means of addressing the service need.

That critical distinction has too often been missed in local discussions.  For the private irrigators in Emu Swamp Dam the primary consideration is increased storage.  But by hitching the issue of urban water security for Stanthorpe to their bandwagon it means that more viable, and cheaper, alternatives to Emu Swamp Dam for urban water security have not been pursued. 

Just this month it was revealed that the Stanthorpe & Granite Belt Chamber of Commerce had argued against a pipeline to Stanthorpe which would have clearly increased urban water security in the Southern Downs to the benefit of local tourism, businesses and residents because it did not increase local storage capacity for farmers.  The Chamber said a pipeline would bring “no additional economic benefit to the region” because it did not provide water for irrigators.  Wonder what the local hotels, accommodation, cafes, restaurants and shops that depend on town water would make of that?

Infrastructure Australia evaluates proposals that are either nationally significant or where Federal Government funding of $250 million or more is sought.  The private investors behind Emu Swamp Dam are currently ONLY asking for $173.5 million of Federal taxpayer money (plus $13.6 million of State taxpayer money) but who knows?  With the current rate of inflation they may soon be asking for so much taxpayer money that we can all be saved by the sanity of an Infrastructure Australia review.