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Tillegra Environment Assessment hides risk of $1 bn blow-out

Wednesday 13 January 2010

The Keneally government and Hunter Water are hiding the risk that Tillegra dam could double in cost because of the site's complex geological features, with appalling consequences for the state's borrowings and household water bills, according to Greens NSW MP John Kaye.

Commenting on a story on page 2 of today's Sydney Morning Herald ('Tillegra
dam costs could soar to $1b
'), Dr Kaye said:
"The Department of Planning has been warned by the state's leading community
environment legal practice that Hunter Water's environment report is
defective and does not conform to the government's own planning legislation.

"Hunter Water and the NSW government have failed in their duty to properly
analyse the geological features of the site and to be open and honest with
the community.

"First they concealed the crucial data, then they try to hide it.

"Hunter Water should be told to start again on the Environmental Assessment.

"Water Minister Phil Costa has let Hunter Water publish the crucial
Environmental Assessment without a complex geotechnical model to explain the
site features and borehole data.

"In the absence of sophisticated analysis, much of the geological material
in the Environmental Assessment and hence cost estimates are little more
than guesswork.

"The Keneally government is putting Hunter household water bills onto a
roulette wheel. If during construction the site geology turns out to be more
challenging, then the cost will blow out, bills will skyrocket for years to
come and the state will carry an unnecessary $1 billion debt.

"The Hunter community is being forced to pay for a dam they do not want or
need. Hunter Water is keeping them in the dark about the risk of cost
blowouts.

"Despite the utility's propaganda, Tillegra is unnecessary. Much cheaper
options such as water efficiency and recycling would make both the dam and
desalination irrelevant," Dr Kaye said.

For more information:    John Kaye 0407 195 455

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