Southern Rural Water has awarded a $39.8 million 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 7.209 megalitres in water savings and drive vital investment in on-farm efficiencies, improve farm productivity and make businesses more climate resilient.
Southern Rural Water, Managing Director, Cameron FitzGerald said the contract announcement is an exciting step towards the continued modernisation of the Macalister Irrigation District, which is the largest irrigation district in southern Victoria.
“This major infrastructure upgrade will markedly increase both water delivery efficiency and customer service levels,” Mr FitzGerald said.
“These projects are vital to the production of food and fibre across Victoria and we are already seeing the benefits with around 20 gigalitres of water saved by the completion of 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 and not only reduce water lost through leakage, seepage and evaporation, but contribute to substantial benefits to our customers, the environment and the region,” Mr FitzGerald said.
Global and local market volatility has had a substantial impact on major components of the planned works, and Southern Rural Water has decided to phase our works schedule which originally included upgrades for both the Newry and Nuntin areas to be completed concurrently.
“Today’s announcement confirming the Newry pipeline project is as significant step forward,” Mr 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 January 2023 and be complete by August 2023, in time for the 2023 irrigation season.
The modernisation of the Macalister Irrigation District is jointly funded by Southern Rural Water, the Commonwealth Government through the National Water Grid Fund and the Victorian Government.