Uncertainty over $400 million Myalup-Wellington water project after failure to strike commercial agreements with coal miners

The future of a $400 million water infrastructure project is in doubt after Regional Development Minister Alannah MacTiernan said a deal with coal companies could not be struck. Failure to proceed with the current proposal means up to $140 million of Federal Government funding may needed to be handed back. Collie Water’s Myalup-Wellington project aimed to reduce salinity in the Wellington Dam, WA’s second largest reservoir, helping drive irrigated agriculture production in the Collie River, Harvey and Waroona districts. The Australian Government in 2018 committed $140 million to the project, boosting $37m from the State Government and about $169m from project proponents. Other stakeholders had also made commitments, including Harvey Water. Ms MacTiernan said the current proposal was unlikely to eventuate because the proponent Collie Water was unable to strike commercial agreements with Griffin Coal and Premier Coal over use of the mine voids for desalination and storage. She said though the State Government remained committed to the project, there needed to be a “re conceptualisation.” “We can’t keep flogging a dead horse, we need to look at re-visioning the project and look at whether there’s an alternative strategy for the region,” the Minister said. Irrigation co-operative Harvey Water chief executive Bradd Hamersley, who has 220 members directly impacted, said he was hopeful a solution could be reached. Mr Hamersley said alternative approaches to managing salinity of the Wellington Dam and creating opportunities for irrigated agriculture would be considered and Harvey Water would work with the State Government to try to retain funding for the project. Nationals WA leader Mia Davies — who was Water Minister in 2016 when the program was established — said Ms MacTiernan had more than three years to make the project happen. “The Labor Government has been asleep at the wheel for the past three years and now $140m of Federal Government funds and millions of private sector dollars are at risk,” Ms Davies said. “The Minister and State Government has shown it could use its weight to get desired outcomes for the mining sector, and should use that same vigour to achieve a good result for agriculture.” The project was expected to create more than 800 jobs for the region and inject $607 million annually into the economy.