Southern Rural Water has awarded a $39.8 million project tender contract to Jaydo Construction Pty Ltd to deliver the Newry pipeline project under Phase 2 of the MID2030 Project.
The Phase 2 program will deliver more than 10,000 megalitres in water savings. It will drive vital investment in on-farm efficiencies. There are also opportunities to improve farm productivity and make businesses more climate resilient.
Southern Rural Water Managing Director Cameron FitzGerald said the successful project tender announcement is an exciting step towards the continued modernisation of the Macalister Irrigation District. It is the largest irrigation district in southern Victoria.
“This major infrastructure upgrade will markedly increase water delivery efficiency and customer service levels,” FitzGerald said. “These projects are vital to food and fibre production across Victoria. We are already seeing the benefits with about 20 gigalitres saved by completing Phases 1A and 1B of the project.”
He said modernisation secures the prosperity of the Macalister Irrigation Area.
“This is a once-in-a-generation opportunity to modernise our infrastructure. It will reduce water lost through leakage, seepage and evaporation while contributing substantially to our customers, the environment and the region,” FitzGerald said.
Project tender will lead to a successful outcome
Global and local market volatility has substantially impacted major components of the planned works. Southern Rural Water has decided to phase our works schedule, which originally included upgrades for the Newry and Nuntin areas to be completed concurrently.
“Today’s announcement confirming the Newry pipeline project is a significant step forward,” FitzGerald said. “Market volatility has increased the cost of infrastructure projects across Australia, with a significant increase in costs for the supply of raw materials, especially oil-based pipe materials, fuel and steel, and a rise in labour costs, making these projects challenging to deliver. We are developing further plans for the Nuntin area that address these global and local factors. While today’s announcement is for the Newry pipeline, we remain committed to completing upgrades in Nuntin to ensure that the full benefits of modernisation works are achieved over time.”
The Newry pipeline is expected to start construction in November 2022 and be completed by October 2023.
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