Tamworth councillor Russell Webb concerned that 'stalled' Dungowan Dam project could fail, leaving ratepayers will huge bill

Russell Webb told the Leader he is frustrated at the pace of the project, 740 days after the $484 million scheme was announced.

Cr Webb said if construction doesn't get underway quickly, even in a token sense, the project could fall over entirely.

"It is very very concerning to me that it's been such a long time since those commitments were made and here we are," he said.

"If over the next little while there is a change in leadership at federal level or state level, priorities could change and that dam could be put back again. That is a real concern.

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"Is there a chance the dam could fall over? Yeah, that's possible. We need to make sure that the commitment that was made is fulfilled."

If that happened, Tamworth Regional Council would be left holding the can for a needed upgrade of the existing Dungowan Dam.

The current dam would need major maintenance work to meet minimum safety standards, if it's to serve as a water storage for the long term, Cr Webb said.

That problem would become irrelevant with the opening of the new Dungowan Dam, but if the project fails, Tamworth ratepayers, not state of Commonwealth taxpayers, would have to wear the cost.

"There's one major point that most people are forgetting about and that is: what the council will have to do, and they'll have to do it with ratepayers money if the dam doesn't go ahead, is the upgrade of the old Dungowan will have to take place so it meets dam safety requirements," he said.

"This potentially could be between $50 and $80 million dollars. Let's not forget about that."

The dam project does not currently have a business case, nor an environmental impact statement.

Both planning documents are due to be released in "late 2021", according to the NSW Water website. Construction is also due to start in "late 2021".

Cr Webb isn't the first Tamworth leader to go on the record with concerns about the pace of construction of the project.

Deputy Prime Minister Barnaby Joyce told the Leader in February that the project will be at risk of cancellation unless work gets underway.

Incoming governments are entitled to cancel funded projects that are "uncontracted" - infrastructure schemes which have not begun. But they're bound by contracts signed by previous governments.

A federal election must be held before May 2022.

The project is one of the state's "fast-tracked" dam projects, but Cr Russell said the project "had the handbrake put on it".

Some bureaucrats in state government are even investigating alternatives to the dam, like water recycling, using Keepit Dam, or getting more water from the Liverpool Plains.

That work should stop, until the dam's finished, he said.

"I think the bureaucrats are calling the shots a bit," he said.

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