Dungowan Dam: state government secures additional $433 million to complete dam after budget blowout

It had previously committed to putting the money on the table, but it needed to act quickly as the project faces a race against the clock to begin before the federal election, with concern Labor would not commit funding it won.

Nonetheless, Tamworth MP and NSW Minister for Water, Kevin Anderson, said there was still no date for when construction would start.

"Since becoming Minister for Water I have made significant progress on getting this project off the ground," he said.

"The funding has now been reserved by this government and we remain focused on finalising the Environmental Impact Statement, which will go on display in the second half of this year and finalising planning approvals."

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Mr Anderson was also tight lipped when asked whether the state government would consider covering more of the bill, if Labor won government and did not want to pledge $675 million for the project, only stating he believed in the project's potential and the arrangement with the current government.

"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," he said.

"It would provide more reliable, secure water to support Tamworth's projected population growth, while maintaining water for irrigators."

Meanwhile, Deputy Prime Minister Barnaby Joyce is desperate to get the project underway, making it one of his top priorities since announcing it in 2019.

The New England MP taking aim at the planning process and 'green tape', which he said has delayed the dam's construction.

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