A long-awaited permanent dredge for Swansea Channel is now funded with $10 million approved for the sand-clearing infrastructure.
Shortland MP Pat Conroy and Hunter MP Dan Repacholi will announce the funding approval in Lake Macquarie on November 8 to pay for the construction of water and land-based works.
It will also fund the design, manufacture, and installation of a sand transfer pipeline and replacement of the Blacksmiths Boat Ramp.
The pipeline will move sand to Blacksmiths Beach, which has suffered lacklustre surf conditions due to ongoing erosion.
The dredge project is expected to be put out to tender in early 2025.
The $10 million was a Labor commitment at the 2022 federal election as part of a 'Lake Macquarie Economic Development Package' developed in consultation with local government.
Lake Macquarie council and the community have long asked for a solution to the ongoing silting issue that has restricted vessels from entering the city's marine gateway for decades.
A council economic impact analysis found that a permanent dredging solution could unlock $176 million worth of new construction with direct and flow-on benefits of more than $350 million during the construction phase.
The federal government said the increased tourism activity would create an estimated 364 direct jobs and 883 indirect jobs in the greater Lake Macquarie area.
"The local community has been waiting for a long-term solution to the dredging issue in the Swansea Channel for too long - and I'm proud to be part of a government finally delivering on it," Mr Conroy said.
"The economic case for this project is obvious because the benefits it will feed back into the region will be tremendous.
"As the Member for Shortland, I'm excited we've been able to reach an agreement on this important election commitment, and as a local I can't wait to see how it progresses."
Mr Repacholi described the project as a "game-changer" for Lake Macquarie.
"By ensuring the Swansea Channel is regularly dredged and accessible, we're unlocking opportunities for tourism, local businesses, and recreational boating that will bring long-term economic growth to the region," he said.
"The infrastructure improvements to Swansea Channel will make a real difference for local residents and businesses, creating jobs and drawing more visitors to experience the beauty of Lake Macquarie.
"This is a fantastic win for our community and the local economy.
"Lake Macquarie has so much potential, and this project is a big step toward realising that."
The state government has completed two rounds of dredging in the channel in the past year, removing about 30,000 cubic metres of sand from the lake entrance and dumping it on Elizabeth Island.
