Haughton Pipeline Duplication Project - Stage 2




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Haughton Pipeline Duplication Project - Stage 2
STATUS

Prospective pipeline

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.

Credibly proposed

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.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

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.

Recently closed

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:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Announced
VALUE: $415M AUD
SECTOR: Water & sewerage
JURISDICTION: QLD, Commonwealth
PROCUREMENT APPROACH: Traditional procurement
TYPE: Greenfield

Project Summary

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.

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 contracts were awarded in 2018, and construction is expected to be completed in early 2020.

Stage 2 will extend the duplication from Haughton Channel to the Burdekin River.

 

Key Dates

  • Nov 2018: Federal government commits $200 million to fund Stage 2.
  • Mar 2019: Federal government allocates $5 million to Stage 2 business case, awarded to Jacobs.
  • May 2019: Business case completed, presenting three options.
  • Jul 2019: Federal government commits $195 million in construction funding for Stage 2.
  • Apr 2020: Infrastructure Australia assesses Stage 2 business case as not a priority.

 

Funding

  • $215 million Stage 1 of HPDP was fully funded by the Queensland Government.
  • $200 million Stage 2 full funding committed by the Federal Government in November 2018 including $5 million to develop the business case.
  • $5 million allocated to Stage 2 business case by the Federal Government in March 2019
  • $195 million in construction funding, recommitted by the Federal Government in July 2019

 

Procurement

  • In April 2018, Iplex was awarded the supply of the 1.8 metre diameter pipe for Stage 1
  • In July 2018, Mendi was awarded Stage 1 civil works.
  • In March 2019, the Federal Government selected Jacobs to deliver the $5 million business case.
  • On 11 May 2020, Townsville City Council issued a call for tenders to construct a 3.8km section of pipeline to link Ross River Dam with the Burdekin River at Clare, which will complete the connection to works on stage 2. Works are expected to be completed by the end of the year.

 

Further Notes

On 29 April 2020, Infrastructure Australia completed an assessment of the business case, identifying stage 2 of the project will not be included on the Infrastructure Prioirty List at that time. The independent assessment identified Townsville's water supply issues would be addressed by stage 1 and there was a risk of water bill increases to consumers.



Last reviewed: 18/05/2020

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