The Federal Government has doubled its contribution for the Wyangala and Dungowan Dam projects in New South Wales, providing an additional $283.5 million.
This funding boost will see a total of $242 million for the Dungowan Dam, around 60 kilometres from Tamworth and $325 million for the Wyangala Dam, 40 kilometres from Cowra.
Deputy Prime Minister and Infrastructure, Transport and Regional Development Minister Michael McCormack said the new cash investment for the two projects showed how serious the Federal Government was about getting these dams built.
“These dams will increase inland water storage by the equivalent of 1.2 Sydney Harbours and we want to see benefits flowing to local communities as soon as possible,” he said.
“We want to deliver critical water infrastructure projects for rural and regional communities because increased water security supports growth in Australian agriculture, creating new jobs and supporting existing ones as we build greater resilience to drought and floods.”
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McCormack said the economic road out of the pandemic relies on funding major infrastructure to support local communities and create jobs.
“Negotiations on the funding agreement for the Dungowan and Wyangala projects are close to being finalised and main construction works will begin after the environmental approvals are in place,” he said.
In October 2019, the Federal and New South Wales Governments committed to co-fund the construction of these projects, along with $12 million each towards the development of a detailed $24 million business case for the proposed Mole River Dam.
This new capital grant funding replaces previous loan arrangements agreed with the NSW Government.