Coastal Sewer Scheme calls for support

Published on 05 October 2022

With a third La Nina forecast, the ongoing wet weather predicted over the coming months continues to place pressure on coastal communities with concerns recently highlighted by Kempsey Shire Council at Stuarts Point and Clarence Valley Council at Ulmarra regarding ongoing flooding risks within the region around septic installations and the significant environmental risk to our waterways.

Our Shire is no different as we continue to experience the impacts of floods and further, events such as the closure of commercial oyster harvesting in the Kalang River caused by Noro-virus contamination from illegal sewer connection. This is why in partnership with Infrastructure NSW, Council successfully secured significant funding to invest a total of $22 million to deliver the Sewering Coastal Villages Project.

This significant project to deliver best management wastewater infrastructure assets to protect the health of the Bellinger and Kalang Rivers is a fantastic outcome for our Shire however whilst the tender process for Stage One of the project was progressed in September 2021 it was identified that the Sewering Coastal Villages Project is facing challenges related to increases in material costs and a reduction in competitive pricing being provided in response to the COVID pandemic and heightened infrastructure stimulus funding in the market.  This has resulted in the forecast total project cost being well outside the project budget and funding arrangements which were developed in partnership with external State Government agencies. 

A review by council staff concluded that Council cannot afford to construct the whole scheme within the current budget, without receiving additional grant funding from the State Government. 

“The potential commitment to these increased project costs presents an unacceptable risk to Councils finances.  As such, the decision was taken by Council to delay the project to allow time to seek additional funding from the State Government to ensure the full scope of works can be completed for the community.  The current identified shortfall in response to pricing escalations equates to an additional $25M to allow the complete project scope to be progressed.” Said Mayor, Cr Steve Allan.

“It is critical for Council to source additional funds to meet the external funding deadline in November 2022 to enable the project to be progressed.  We trust that the challenges being experienced by Kempsey Shire Council and Clarence Valley Council will impress on the State Government the urgent need to identify additional funding to progress this critical project for our community.”

Council continues its advocacy efforts with the State Government as a priority to identify additional funding opportunities to progress this essential project which will greatly benefit residents, tourism, our aquaculture industry and most importantly ensure we have clean water which is protected.