A former hydroelectric dam is about to be snapped up for a whopping $4.3m as a backup water supply for the people of Armidale and possibly Uralla.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The decision was made during the Armidale Regional Council's Ordinary Meeting on Wednesday, with mayor Sam Coupland saying "If we don't get it somebody else will".
Oaky River Dam was put up for sale by the state-owned Essential Energy and has private buyers vying for the prime piece of land, necessitating council's need to rush through the sale.
The purchase of Oaky River Dam, including legal fees and assets, amounts to $4.5m and is expected to be drained from the Water Reserve which currently has $29.6m sitting in its coffers.
Although the council could not provide definite figures on the long-term overall cost of repairing the dam wall and building a pipeline, Cr Coupland gave ballpark figures of $8 to $16m and $100m respectively.
With Cr Coupland's figures and the $4.5m cost of purchasing the dam, the total would amount to about $120m.
"You know as well as I do that we can't afford it," Cr Coupland said in response to another councillor's questioning.
"But there are various government grants that are specific for that purpose."
Neither could a definite time frame be provided for when the Oaky River Dam would be in operation for public use as a backup water source.
In response to Councillor Margaret O'Connor's request for local consultations to "bring the community with us on this somewhat heroic journey", Cr Coupland refused to make "any commitment in that regard".
"I'd like to consult with my colleagues on anything like that and just get through a due process as best we can.
"If we don't vote for it today, it'll be out of our hands by tomorrow," he said.
The decision to proceed with the purchase, without holding public community meetings, was voted in favour eight to two during the meeting.
Armidale's main water supply is sourced from the Malpas Dam, currently undergoing a $27m wall upgrade to heighten it by 6.5m to secure more water for the region.
The nearby Puddledock dam, which will also be used as a backup supply, has also had a cash injection of $11.5m of which the Armidale Regional Council and state government each contribute $5.7m for building a pipeline to the water treatment plant.
And the Dumaresq Dam, used for recreational purposes, recently had a cash blow out of about $2.5m, and is now costing taxpayers via state and council money, $10m to reinforce the dam wall.
In purchasing the Oaky River Dam, the Armidale Regional Council is looking ahead to drought-proof the region and ensure enough water supply as a result of the extra 4,000 jobs they hope to grow in the region by 2040.
Make sure you are signed up for our breaking news and regular newsletters
