Fed Govt commits $5.4 billion for QLD’s Hells Gates Dam

The Federal Government has invested $5.4 billion to build the Hells Gates Dam on the Burdekin River in North Queensland, which will aim to boost water security for the region, particularly for the agriculture sector.

The dam is anticipated to open up as much as 60,000 hectares of irrigation across three agricultural zones in the Burdekin River, making it the largest dam in Queensland.

Hells Gates Dam will be supported through a 100-gigalitre dam and bolstered by three downstream irrigation weirs.

The project is expected to create more than 7000 jobs and inject up to $1.3 billion of Gross Regional Product (GRP) into the region during construction. It is then expected to provide 3000 regional jobs and generate up to $6 billion in GRP during operation.

The final location of the project was finalised following the completion of a $2.2 million feasibility study in 2018 by Townsville Enterprise. Construction of the Hells Gates Dam is still subject to a business case, as well as environmental approvals.

Prime Minister Scott Morrison said delivering water infrastructure in North Queensland was vital to securing a strong economy while supporting farmers and industry.

“This dam will help turn the Burdekin region into an agricultural powerhouse, helping our farmers to stock supermarkets and feed Australia while also securing North Queensland’s water supply and security,” he said.

Federal Member for Herbert Phillip Thompson said the project would have a significant flow-on effect for Townsville.

“The Townsville Port is well-placed to handle exports from the region, especially after our forward planning and investment into the channel widening project,” he said.

The funding commitment builds previously announced dams and water infrastructure projects in the region, including the Paradise Dam, Urannah Dam and Rookwood Weir.

Through the 2022–23 Budget, the Federal Government will “guarantee” funding to build the dam, subject to the completion of environmental approvals and the final stage of the business case, expected in June this year. The Queensland Government’s approval is also required before construction can begin.