Statement from Nick Dametto Townsville Mayor regarding the Haughton Pipeline Project

I want to address an important issue that affects our entire community, the Haughton Pipeline project.

I understand that this news may be disappointing and concerning for many, and I want to speak openly and honestly about where we are, how we got here, and what happens next.

The Haughton Pipeline project stands as one of the most significant infrastructure undertakings in Townsville’s history.

Only 12 years ago, our city was facing the significant impacts of drought and heavy water restrictions, a challenge that was a key driver behind the decision to commence building the Haughton Pipeline in the first place. We are far from immune to drought, no matter how much rain we’ve had recently.

This pipeline represents a commitment to securing long-term water security for our community and for the industries that drive our economy.

Recently our city’s population surpassed 200,000, and we are experiencing strong momentum for continued growth across the region.

With that growth comes responsibility. Water security remains a critical foundation for Townsville’s future.

While recent years have brought increased rainfall and even flooding, these events do not erase the challenge.

Our homes, our businesses, and our industries need confidence that water will be there when it’s needed, whatever the future brings.

Since my appointment as Mayor, I’ve had the opportunity to look behind the curtain and it’s time our community fully understand the challenges we face in delivering on this project.

I know that past communication and actions around this project have left many in our community confused and frustrated. That ends now.

The fact is, and there’s no sugar coating it:

• This project was launched without a robust business case to guide it.

• It was significantly underestimated from the very beginning.

• And completing it will require further investment in the hundreds of millions of dollars.

These are hard truths, but they are the reality we must confront together.

As a Council, we must unite and face this challenge head-on.

This is not a project we can simply walk away from.

Our city needs this pipeline, and we are past the point of no return.

And while the decision to deliver this project was made before my time as Mayor, my focus now is on ensuring transparency and accountability as we move forward.

Until now, Councillors have been limited in what they could share publicly due to commercial-in-confidence requirements, but today I want to provide clarity.

I’m committed to restoring trust, strengthening accountability, and ensuring that every decision we make serves the best interests of Townsville.

I stand before you today as the Mayor who will tell you the good, the bad, and the ugly.

I will keep our community informed of both wins and setbacks, and provide confidence that even when things don’t go to plan, I am doing everything in my power to find solutions.

That’s the leader I am, that’s the Council I will lead, and that’s the leadership Townsville deserves.

Understanding the past is key to shaping the future and to rightly explain how we got here, we need to go back to the beginning.

The Haughton Pipeline project was recommended as part of the “Townsville Water Security Taskforce” report in 2018.

Its purpose: to provide emergency water supply relief to Townsville in times of drought and to sustain water supply to a growing population and industrial base.

In September 2020 Council signed the Grant Deed with the State Government for $195 million of funding towards to project.

Twelve months later Council passed a resolution that approved several major aspects of the project, one of which was the acknowledgement that ‘council is responsible for funding all costs in excess of the $195 million Grant’ for the project.

The agreed budget for the project at this time was $274 million, including council’s $79 million contribution.

Despite this it has been shown that the project was forecast to be significantly over its approved budget very early on, with documents discovered from February 2021 showing a forecast of $370 Million.

Those documents also highlight the considerable effort made by the Council delivery team to reduce the cost at that time.

In early 2023 an external review was initiated by Council Officers to understand what could be done to reduce the forecast cost blowout, that review identified various causes for the cost increase and further work was completed that identified several significant issues with the location and design of the intended pumpstation.

It is worth noting, as part of the Grant Deed conditions, Council report monthly on the progress of the project to the State Department, Council reports have always been clear and concise about the issues and budget position of the project.

The 2023 review highlighted the Covid-19 pandemic and the inflationary pressures that followed caused significant cost increases across all Council projects.

For the Haughton Pipeline, the impact was more severe due to its scale.

This however, does not account for the majority of the cost increase.

The review also found that the project budget was significantly underestimated from the outset.

The truth is, Council never undertook its own Business Case, instead it referenced a commonwealth business case completed in 2019.

As a result, Council entered into a funding agreement that made it responsible for any cost increases, before fully understanding the project’s scope and benefits.

Since that time, Council have continued to build the pipeline section of the project and Council officers have been working with the State funding partners to identify and resolve the issues for the pump station delivery.

With that in mind, I want to acknowledge the work of current CEO, Joe McCabe, and his team over the past 18 months. Steering this project back on track has not been easy, but Joe has shown unwavering commitment to setting the right course and his leadership has been instrumental in restoring focus and driving progress.

In December 2024, Council presented all the findings of the review to State representatives.

At that point Council, The State and Sunwater agreed to work on a solution that would resolve the identified technical issues and deliver a suitable pumpstation for the project, leveraging existing infrastructure to reduce costs.

In June 2025, Council in collaboration with Sunwater presented a Technical Memorandum to The State with a proposed way forward for the project.

This was accepted by The State and since that time Council has been working through a Concept Study and Business Case that will see a redesigned pumpstation at a different location not far from the Burdekin Riverbank location as initially chosen.

There are very early cost estimates for the project’s completion, these estimates include significant contingency allowances, therefore it would be premature to disclose these at this stage.

It is likely that even low-cost options for full commissioning of the pipeline will require considerable additional funding.

It is not yet clear what the full extent of that funding requirement might be.

As I stated before – there is no doubt it will be in the hundreds of millions.

The Concept Report and Business Case is scheduled for completion in June 2026.

Once finalised, we will have a more refined design and way forward, that will enable us to produce a far more accurate cost estimate to complete the project.

This is a critical step toward ensuring transparency and accountability as we move forward and I will provide a detailed update to community as soon as practicable.

As part of Council’s mid-year budget review, we have allocated an additional $6 million toward the Haughton Pipeline project.

This brings Council’s total investment to $85 million, alongside the State Government’s contribution of $195 million.

This funding will cover all costs incurred so far and allow us to complete more than 28 kilometres of trenched pipeline by early 2026.

This will bring the total length of pipeline installed across Stages 1 and 2 to approximately 60 kilometres, running from the Burdekin River to Ross Dam.

However, even after the trenched sections of pipeline are finished, there will still be three sections of trenchless pipeline outstanding that will be retendered to ensure the best possible outcome for the project.

Council remains firmly committed to completing and commissioning the Haughton Pipeline.

The current pipeline will meet community needs until 2032, by then, the Haughton Pipeline must be fully operational to support Townsville’s growth and meet projected water demands for the Lansdown Eco-Industrial Precinct.

To be clear, additional Council funding will be required in the coming years to complete this project.

However, Townsville City Council cannot and should not bear the sole burden of funding its completion.

That’s why I have already begun discussions with the Premier and Deputy Premier to chart a way forward that ensures shared responsibility and a sustainable solution.

I want to extend my thanks to the State Government and Sunwater representatives for their ongoing support and collaboration with our internal team as we work to overcome the challenges surrounding this project.

Together with the State Government, my fellow councillors, Council and I are focused on completing the works, commissioning the pipeline and delivering the infrastructure that secures Townsville’s future.