Council calls on Federal Government to increase water security funding

Council is urging the Federal Government to invest an additional $87.5 million into its most significant infrastructure initiative in the region – the Cairns Water Security Stage 1 (CWSS1).

As Council's number one advocacy priority, securing this funding is not just about infrastructure, it’s about protecting local ratepayers from the burden of rising costs and securing Cairns’ drinking water supply into the next decade.

Works on the $472 million project started in August and include a new water intake at the Mulgrave River, a new water treatment plant and water reservoirs at Gordonvale and supporting infrastructure to connect to the existing water network.

The State Government has pledged $195 million to the project, with the Federal Government committed to providing $107.5 million in funding.

Council is calling on the Federal Government to match the State’s commitment by provisioning increased funding specifically in the upcoming 2025-26 Federal Budget.

Mayor Amy Eden said that CWWS1 remained Council’s number one advocacy priority and was calling on the Federal Government to commit an additional $87.5 million to the vital project.

“Council is extremely appreciative of the existing $107.5 million funding commitment made by the Federal Government to CWSS1, but additional funding is still needed,” Cr Eden said.

“With work on the project starting in August this year, the need for support from the federal government has never been more crucial.

“It’s essential both levels of Government contribute equally to the project to ensure drinking water is secured for Cairns.

“To be clear, without additional funding, it will be our community that bears the cost of this critical infrastructure project through increased rates and/or charges, at a time they can least afford it.

“Residents are already experiencing cost-of-living pressures, including rising cost of mortgage repayments, rent, insurance and day-to-day essentials.

“There is also the prospect of Council needing to address a multi-million dollar repair bill from the damage caused by unprecedented flooding associated with Tropical Cyclone Jasper.

“A matched commitment of $195 million from the Federal Government would deliver combined cost of living savings – in the form of future Council rates and/or charges avoided – of $6,048 per household, or $403 per year over 15 years.

“We know our local federal MPs and Senator Nita Green – Senator for Queensland, are strong supporters of the project, so we’ll continue to work closely with them to secure a positive outcome for the Cairns community.”

In 2022, the Federal and Queensland Governments each committed $107.5 million in funding ($215 million in total) towards the CWSS1.

At the time, the project’s estimated capital cost was $248 million – a preliminary cost estimate based on a high-level understanding of the required investments and infrastructure.

Following completion of the Detailed Business Case and a rigorous procurement process for design and construction, the project’s total capital cost increased to $472 million.

In response, the State Government has increased its commitment for the project to $195 million.

The project is expected to support more than 1,600 jobs during construction and support the region’s population growth.

In December 2023, Council awarded the design and construction contract to John Holland Queensland after a rigorous 12-month procurement process.

The new Mulgrave River intake will draw water from the riverbank, filtering it through sand and gravel before it is delivered to the new water treatment plant.