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No clarity from NSW government on the final bill for controversial water security projects

The business case for the Wyangala Dam expansion is still yet to be finalised, despite initially being promised in 2021.  (Supplied: Water NSW)

NSW Water Minister Kevin Anderson has refused to be drawn on what the final bill could be for some of the state's most expensive drought security projects.

Mr Anderson, who is new to the water portfolio, appeared before a budget estimates committee to answer questions about the state government's progress in delivering its promised upgrades at Wyangala Dam at Cowra and Dungowan Dam near Tamworth. 

Wyangala's business case was due to be completed in 2021 but yesterday's hearing was told it was now expected to be completed this year. 

It was revealed in March 2021 that the cost of the expansion had risen from $650 million to up to $2.1 billion.

Labor MP Rose Jackson asked Mr Anderson what the final price tag could be. 

"I'm not in the business of speculating on what the probability of that particular project will cost," Mr Anderson replied. 

Wyangala Dam near Cowra spilled in late 2021 during major flooding in the Lachlan Valley.  (Landline)

"That's kind of your job though, this is budget estimates," Ms Jackson said.

"I was just getting to that, I'm in the business of providing water security for our regional communities," he said. 

Mr Anderson and a senior department official were also grilled about how much water users in the Tamworth region would be expected to contribute to the cost of building another Dungowan Dam. 

The Dungowan Dam would be the first dam built in NSW in more than 30 years. (Supplied: Tamworth Regional Council)

The initial estimate was $480 million when it was announced in October 2019. 

"What customers will pay gets determined by IPART (Independent Pricing and Regulatory Tribunal) and not by government," chief executive of NSW Water Sector from the Department of Environment, Dr Jim Bentley told the hearing. 

"The National Water Initiative principles don't say all costs must be fully recovered, they say either fully recovered or transparently subsidised."

Private business cases

The hearing was also told that neither business case will be released to the public. 

Mr Anderson was first pressed as to why Dungowan's business case would not be available. 

"Those discussions that will be had further down the track with our community once the EIS (Environmental Impact Statement) is released but the issues that are contained in the final business case are cabinet in confidence," he said.

The new Water Minister Kevin Anderson has refused to say what the final cost will be for two major water security projects in NSW. (ABC New England North West: Patrick Bell)

Labor MLC Rose Jackson questioned the minister on the transparency of the consultation process, if the Central West community will not be allowed to ultimately see the government's findings on Wyangala Dam. 

"The community does get consulted in terms of the environmental and cultural heritage investigations that have been done, Mr Anderson told the hearing. 

"The community have their say on that and the community will generally let you know, the community generally get it right."

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