The Morrison government has allocated $5.9bn to build two separate north Queensland dams without seeking any input from an advisory board it established less than two years ago to scrutinise major water projects.
Commitments to fund the Hells Gates and the Urannah dams – proposals pitched at voters in bellwether Queensland electorates – have been made in the past week.
However serious questions have been raised about the economic benefits of the Urannah project and the detailed business case for the Hells Gates project is still under development.
“We’ve done the homework on Hells Gates Dam and it’s now time to get on and build it,” the prime minister, Scott Morrison, said on Wednesday.
But Guardian Australia has confirmed that neither dam proposal was subjected to any formal scrutiny from the National Water Grid Advisory Body – a body established in 2020 to provide “expert advice” to the government on water infrastructure projects.
The Guardian understands the advisory board would typically scrutinise a dam proposal by looking at a detailed business case prepared by the proponent. It would then provide feedback to government.
In the case of Urannah, the proponent, Bowen River Utilities, says it has recently completed its detailed business case for the project, located about 90km west of Mackay.
It is understood this has not yet been seen by members of the water grid advisory board.
Guardian Australia reported in 2020 that an economic analysis, commissioned by local environmental groups, found the Urannah project could return as little as 26c for every dollar invested.
A detailed business case for the Hells Gates Dam, north-west of Townsville, is still in development. Townsville Enterprise, the proponent, says on its website that the document will be ready in April.
In his press release on Wednesday, Morrison said the funding for Hells Gates was contingent on the detailed business case, and that the document would not be ready until June. A federal election will be held before the end of May.
Kennedy MP Bob Katter said the North Queensland Water Infrastructure Authority also apparently “knew nothing about” the details of the government’s announcement.
Katter has long supported a different version of the Hells Gates proposal – one that would send water to the west for irrigation. He said the deputy prime minister, Barnaby Joyce, had previously backed such a plan, which would require the dam be built at a greater height.
“They are proceeding with a tiny dam scheme and are sending no water west at all,” Katter said.
When making his announcement on Wednesday, Morrison immediately sought to pressure the state government on approvals for the 2,100-gigalitre Hells Gates dam, which would be about four times the size of Sydney Harbour.
The proponent has not begun an environmental impact assessment, which would need to be completed and then submitted for assessment. The process could take years.
“You know, this is not been plucked out of the air, in any stretch,” Morrison told reporters on Wednesday.
“This has been a four-year process to get to this point to know this is the right dam, to be built in the right way. As soon as we can get the state government to approve building this dam, then we can get under way and so that is the next key step.
“I don’t think there’s a case against this dam. I think there’s only a case for this dam. The only thing that would stop it, I think, is if the Greens get in the ear of either the federal Labor party, which we have seen them do that before, or they get in the ear of the state Labor government.
“But as far as the LNP is concerned here in Queensland, we’re all for building this dam and many more.”
