Water for Bowen project not proceeding

17 Oct 2011

Following the completion of the final business case investigations for the Water for Bowen Project, SunWater advises that it will not be pursuing the project as it is not commercially viable at this time.

The Water for Bowen project scope included a proposed 150km water transport system, comprising of an open channel and pipelines, to bring 60,000ML of water per annum from Clare Weir on the Burdekin River south, down the coastal plain, to Bowen and surrounding areas to support the region’s supply demands.

SunWater’s General Manager Infrastructure Development, Mark Browne said that findings of the final business case indicated a significant reduction in demand for this project associated with industrial development in the region, as well as increased construction costs to deliver the infrastructure.

“SunWater had explored several options during the business case investigations to determine whether the project was commercially viable, including consideration of a range of smaller project size options, however the economies of scale were not favourable,” Mr Browne said.

“The foundation customers were also invited to register their interest in the different sized options based on the estimated water charges. however the negative economies of scale led to limited demand for water.”

“While it is a disappointing outcome, the project is not currently economically viable due to the now low industrial customer demand in the region that is required to underpin costs,” Mr Browne said.

“From the outset, SunWater, the Queensland Government and the project’s Foundation Customers were fully aware that the project needed to be commercially viable in order for it to proceed.”

SunWater remains committed to providing water supply solutions for the region where it is commercially viable to do so and will continue to investigate alternative water supply sources for future demand associated with the Port of Abbot Point and the Bowen Abbot Point State Development Area.


Media Enquiries

Phoebe Grealy
Media Advisor
Phone +61 7 3120 0047
Mobile 0407 574 663
Email phoebe.grealy@sunwater.com.au

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