New Dungowan Dam project in NSW secures additional $433m funding

Monica Gameng   |   April 21, 2022
Dungowan Dam (cr: Department of Planning, Industry and Environment)

To ensure the New Dungowan Dam in New South Wales gets built, the Australian Government has committed about $433 million through the 2022-23 Budget. 

The new funding brings the total Australian Government contribution for the New Dungowan Dam and Pipeline project to $675 million. 

“Water is wealth and dams are the banks that drive regional Australia, supporting the growth of our cities and towns. 

“The Nationals have put up to $433 million in additional funding on the table to build Dungowan Dam because we believe in the project and we believe in the region it will support. 

“Without water, our town stops. The coffee shops and hairdressers won’t open, the abattoirs will shut down and all of the industries that underpin our standard of living will disappear,” Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said. 

The New Dungowan Dam and Pipeline project is located on the Dungowan Creek near Tamworth and it will include: 

  • Construction of a new dam wall 3.5 kilometres downstream of the current wall, increasing the dam’s capacity from 6.3 gigalitres to 22.5 gigalitres 
  • Decommissioning of the existing Dungowan Dam 
  • Construction of a 55-kilometre large diameter pipeline between Dungowan Dam and the Calala Water Treatment Plant 

“This is a significant step forward for the New Dungowan Dam project. 

“The construction of the New Dungowan Dam and Pipeline will create hundreds of jobs and generate millions of dollars for local businesses over the next few years which is great news for communities around Tamworth,” Acting Premier and Minister for Regional NSW Paul Toole said. 

The project is currently pending finalisation of the business case, which is due later this year, as well as regulatory approvals. The New South Wales Government will continue working to secure all necessary approvals needed to reach a final investment decision. 

“This $1.28 billion project would be funded by the NSW and Commonwealth Governments 50:50 and is one of the largest investments in water supply infrastructure in NSW history. It would provide more reliable, secure water to support Tamworth’s projected population growth, while maintaining water for irrigators. 

“Secure water supply is critical to the future of Tamworth and the Peel Valley and that is why we are getting on with the job of bringing this dam to a final investment decision,” Member for Tamworth and Minister for Lands and Water Kevin Anderson said. 

In February of this year, works commenced on the first stage of the 55-kilometre underground pipeline that will run from the Calala Water Treatment Plant to the Dungowan Showgrounds. The final section of the pipeline will be delivered following the completion of the initial stage, linking the new dam to the showground and Tamworth. 

The Environmental Impact Statement for the New Dungowan Dam and Pipeline project will go on display before the end of the year and the final investment decision will follow. 

In addition, Acciona and Seymour Whyte have been shortlisted to design and construct the new dam. The contract is due to be awarded later this year following final investment decision.

Source: Minister for Infrastructure, Transport and Regional Development; NSW Government – Water (1, 2, 3); Australia New Zealand Infrastructure Pipeline 

New call-to-action

Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
Follow me:

Related Articles

SRG-Georgiou JV wins $43.4m contract on Bolivia Hill upgrade NSW

A $43.4 million contract has been awarded to a joint venture between SRG Limited and Georgiou Group for road upgrade works on the New England Highway in rural New South Wales.

New investment to support development of $4.3bn Karratha Urea Project

The Australian Government is supporting the development of the $4.3 billion Perdaman Urea Project in Western Australia through a $255 million funding investment from the Northern Australia Infrastructure Facility (NAIF). 

Tenders to be released for construction of $220m New Dubbo Bridge NSW

A new bridge over the Macquarie River in Dubbo, New South Wales is closer to beginning construction as the $220 million project prepares to call tenders for the lead construction contractor. 

Get the latest project news

Formerly known as the PlantMiner blog, Felix Project News is Australia's top 10 Construction blog.

Join thousands of construction and mining pros getting the best content right in their inbox.

✓ updates on Australia's pipeline of state and federal projects

✓ fresh contract awards from major contractors and builders