Haughton Pipeline Duplication Project - Stage 2
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The Haughton Pipeline Duplication Project (HPDP) will link the Burdekin Haughton Water Supply Scheme to the Ross River Dam. The alignment of the new pipe will generally follow the existing pipeline’s route. Townsville City Council is managing the project.
The $215 million Stage 1 of HPDP, comprises duplicating 36.5 kilometres of pipe between Ross River Dam and the Haughton Channel along with ancillary upgrades such as upgrades to pump stations. Stage 1 has been fully funded by the Queensland Government. In April 2018, Iplex was awarded the supply of the 1.8 metre diameter pipe for Stage 1 and in July 2018, Mendi was awarded the first stage of civil works. Construction of Stage 1 is expected to be completed by March 2020.
Stage 2 will extend the duplication from Haughton Channel to the Burdekin River. In November 2018, the Federal Government committed $200 million to fully fund Stage 2, including $5 million to develop the business case. The Federal Opposition has stated it would also fully fund Stage 2, if elected next year.
In March 2019, the Federal Government allocated $5 million for a business case for Stage 2 and selected Jacobs to deliver it as soon as possible. Completed in May 2019, this business case presented three options:
- delivery of Stage 2 concurrently with Stage 1, providing a benefit-cost ratio (BCR) of 0.3
- delivery of Stage 2 in 15 years, providing a BCR of 0.5, and
- tariff reform, which would defer the need for capital investment, providing a BCR of 2.
In July 2019, the Federal Government confirmed its commitment of $195 million in construction funding for Stage 2. Infrastructure Australia has not undertaken an assessment of the business case for Stage 2, but is expected to provide independent advice on the proposed project.
Last reviewed: 26/07/2019