'Real progress': 'overdue' Dungowan Dam business case finally complete

That was the message from water minister Kevin Anderson on Wednesday, who told media that the project's business case has been completed and will go to cabinet for final funding signoff by the end of the month.

The entire business case, including the project's final cost and an estimate of its benefits, remains under wraps until after "dissecting" by Infrastructure NSW and Infrastructure Australia, he said.

READ MORE:

And even then, elements of the business case will remain secret forever, being deemed "commercial-in-confidence".

Nonetheless, the government is now making "real progress - this dam is well on the way", he said.

Deputy Prime Minister Barnaby Joyce, Federal Water Minister Keith Pitt and Tamworth regional mayor Russell Webb, joined the state water minister to commit to renewed support for the scheme.

Mr Anderson, who is also the member for Tamworth, has been water minister for just 43 days, replacing predecessor Melinda Pavey in December.

"We all want this project to happen now. It's been way too late, it's been overdue, so let's get cracking on it," he said.

Along with a business case, the project is closer to getting a lead contractor.

Spanish infrastructure giant Acciona, and Queensland construction firm Seymour Whyte have been chosen to compete for the contract to design and build the new dam.

"These are milestones that were way off into the horizon. We've brought them forward to get them moving," Mr Anderson said.

The project's business case won't ever be released in its entirety, but elements of it will be included in its environmental impact statement (EIS), which is due to be released if cabinet signs off on the project, he said.

It's still unclear whether the state government will recover the cost of the dam by increasing water levies - or who will own the facility. It's cost-benefit analysis is also not yet public.

Though he didn't give a specific figure, Mr Anderson said the cost of the dam had gone up "by a little bit, I suspect, given the cost of everything".

The dam was initially budgeted at $484 million.

"You build a house today, four months later the price has gone up," he said.

"So the price will go up."

His federal counterpart, Mr Joyce committed the federal government to cover 50 per cent of the cost of the dam, even if the price increased.

The Commonwealth cash won't be paid back.

Want more local news? Subscribe to the Leader to read it here first

"We're not asking for the money back, we're delivering you the money, we just want it built," Mr Joyce said.

He was quick to deny that the federal government was offering a blank cheque to the state government, which will deliver the scheme and cover the cost of the other half.

"You're diligent, you're prudent, you go over the figures, as we will be doing," he said.

Mayor Webb said he hadn't seen the business case yet.

Nonetheless he said the project was worthwhile, even without knowing its cost.

"We don't really know the true cost of water, or appreciate the true cost of water until we haven't got any, and then it doesn't really matter," he said.

Mr Anderson said there are several components of the business case for the project which are "commercial-in-confidence", but the project's EIS will be made public and will contain answers about costs.

The public will have a chance to have their say on the EIS.

The government will decide whether Acciona or Seymour Whyte will get the job later in the year, after it makes an investment decision.

Both companies have made a commitment to the NSW Government to employ local businesses and create jobs for local people including Aboriginal communities.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: