Morrison government committed $5.9bn for dams without advice from water infrastructure board

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.

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.

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.

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.