THE costs and benefits of the proposed Hells Gate Dam in North Queensland will be further assessed after the state government signed an agreement with the Commonwealth.
The $5.35 billion project would see the construction of the dam on the upper Burdekin River north of Charters Towers, to provide long-term water security for the region and supply water to a 50,000 hectare irrigated agriculture scheme.
Natural Resources Minister Dr Anthony Lynham today announced the state would sign a bilateral agreement with the Commonwealth to progress further assessment.
"We will work with the Commonwealth to continue the investigation of the Hells Gates proposal," Dr Lynham said.
"However, the Palaszczuk government's bottom line remains that any major investment like this needs to deliver value for money for Queensland taxpayers.
"And this includes conducting geo-technical assessments to determine the infrastructure and construction costs.
"The best way to establish that is for a detailed assessment that establishes all the costs and benefits."
Townsville Enterprise Limited conducted an initial assessment of the Hells Gates Dam last year for the National Water Infrastructure Development Fund.
A feasibility study released last year deemed the $5.35 billion irrigated agriculture and power project on the upper Burdekin River to be viable.
The report said the scheme had the potential to redefine Northern Queensland's agriculture sector and underpin long term export market growth and investment.
This included $24 million to undertake a business case on the Hells Gate Dam Irrigation Scheme, and a further $30 million toward the establishment of Big Rocks Weir at Charters Towers.
Charters Towers Mayor Liz Schmidt said she was pleased the hear the case for Big Rocks Weir was progressing.
"Charters Towers Regional Council is very pleased that the State Government will sign the bilateral agreement with the Federal Government to progress the construction of Big Rocks Weir and the Hells Gates Dam business case," Cr Schmidt said.
"We have lobbied hard for this project as the construction of Big Rocks Weir is vital for the development and progression of our region.
"The project guarantees new work for local businesses and we're eager for construction to commence."
TEL will lead the new assessment.
"As with any project, the Palaszczuk Government will always ensure that Queensland taxpayers are delivered value for money and the appropriate planning, cost benefit and due diligence is undertaken," Dr Lynham said.
The project comprises a 2110 GL dam, a pumped hydroelectric scheme of up to 1200 MW, a 20 MW solar farm and 15 MW run-of- river hyrdo facility at the toe of the dam and a pipeline from Hells Gate Dam to Ross River Dam.
