Wyangala Dam project not viable and not going ahead

NSW Gov

The NSW Government will not proceed with the Wyangala Dam Wall Raising Project because of the billions of dollars in construction costs and the potential catastrophic environmental impacts.

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.

"Robust investigations show that while raising the wall by 10m is technically feasible, it could cause substantial and irreversible environmental impacts," Ms Jackson said.

"Hydrological modelling also found raising the wall, with a 5m 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 said.

"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."

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